Enhancing customer-linking marketing capabilities using marketing analytics

Abstract

Purpose: Evidence in the literature has indicated that customer-linking marketing capabilities such as customer relationship management (CRM) and brand management are important drivers of marketing performance and that marketing analytics use (MAU) enables firms to gain valuable knowledge and insights for improving firm performance. However, there has been little focus on how firms improve their CRM and brand management via MAU. This study aims to draw on the absorptive capacity theory, research on marketing capabilities and marketing analytics to examine the capability-developing mechanisms that enable a firm to use marketing analytics to enhance its CRM and brand management capabilities, thereby improving its marketing performance. Design/methodology/approach: A research model is developed and tested based on an analysis of 289 responses collected using an online survey from middle and senior managers of Chinese firms with sufficient knowledge and experience in using marketing analytics for survey participation. Findings: The findings demonstrate that MAU is positively related to both CRM and brand management capabilities, which in turn are positively associated with marketing performance; and that both CRM and brand management capabilities mediate the relationship between MAU and marketing performance. Research limitations/implications: The study’s outcomes were based on data collected from a survey, which was distributed using mass e-mails. Thus, the study is unable to provide a meaningful response rate. The research results are based on and limited to Chinese firms. Practical implications: MAU is essential for enhancing customer-linking marketing capabilities such as CRM and brand management, but it alone is not sufficient to improve marketing performance. Firms wishing to improve marketing performance should leverage the knowledge and insights gained from MAU to enhance their critical customer-linking marketing capabilities. Originality/value: This study explicates the capability-developing mechanisms through which a firm can use its market-sensing capability as manifested by MAU to enhance customer-linking marketing capabilities and to improve its marketing performance. In so doing, this study extends our understanding of the critical role of absorptive capacity in helping firms identify, assimilate, transform and apply valuable external knowledge.