Data-Supported CRM as a Lever for DMO Success: A Social Exchange Relationship Approach

Abstract

AbstractCustomer relationship management (CRM) is proving to be one of the most promising business strategies. However, in the field of destination marketing literature, a problem exists as to how data-supported CRM can be established. While customer data management has already been well exploited in other industries, DMOs lack customer proximity and data sovereignty. The aim of this paper is to fill this research gap and show how a data-based CRM can be deployed by DMOs based on the principles of social exchange theory. In 13 expert interviews, these aspects were examined from the DMO’s point of view. The results show that the exchange relationship must be established taking into account the DMO’s extraordinary conditions and critical success factors. In order to stimulate guests’ desire for dialogue or the willingness to disclose personal data, DMOs should offer high-quality customer benefits. A combination of hedonic and utilitarian benefits are found to be the most effective stimuli. In return, only the most necessary customer information should be requested and subsequently built passively. Only if the cost and benefit ratio of the exchange relationship is positive for both parties, a database for the CRM can be built in order to foster long-lasting relationships with potential and returning guests.