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Reverse use of customer data: implications for service-based business models

Hannu Saarijärvi (School of Management, University of Tampere, Tampere, Finland)
Christian Grönroos (CERS Centre for Relationship Marketing and Service Management, Hanken School of Economics, Helsinki, Finland)
Hannu Kuusela (School of Management, University of Tampere, Tampere, Finland)

Journal of Services Marketing

ISSN: 0887-6045

Article publication date: 7 October 2014

Abstract

Purpose

The purpose of this study is to explore and analyze the implications of reverse use of customer data for service-based business models. In their quest for competitive advantage, firms traditionally use customer data as resources to redesign and develop new products and services or identify the most profitable customers. However, in the shift from a goods-dominant logic toward customer value creation, the potential of customer data for the benefit of the customer, not just the firm, is an emerging, underexplored area of research.

Design/methodology/approach

Business model criteria and three service examples combine to uncover the implications of reverse use of customer data for service-based business models.

Findings

Implications of reverse use of customer data for service-based business models are identified and explored. Through reverse use of customer data, a firm can provide customers with additional resources and support customers’ value-creating processes. Accordingly, the firm can move beyond traditional exchanges, take a broader role in supporting customers’ value creation and diversify the value created by the customer through resource integration. The attention shifts from internal to external customer data usage; customer data transform from the firm’s resource to the customer’s, which facilitates the firm’s shift from selling goods to supporting customers’ value creation.

Originality/value

Reverse use of customer data represent a new emerging research phenomenon; their implications for service-based business models have not been explored.

Keywords

Citation

Saarijärvi, H., Grönroos, C. and Kuusela, H. (2014), "Reverse use of customer data: implications for service-based business models", Journal of Services Marketing, Vol. 28 No. 7, pp. 529-537. https://doi.org/10.1108/JSM-05-2013-0111

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited