Customer Management Report: Customer Behavior and CRM Strategies

This report provides a comprehensive analysis of customer management, focusing on customer behavior, segmentation, and CRM strategies within the context of MTR Corporation. It explores the importance of customer relationship management in driving sales and profitability, examining how businesses can analyze customer behavior patterns and identify target groups. The report delves into customer segmentation techniques, the application of CRM and marketing activities, and customer retention practices across various industries. It also provides examples of adding value to customers and investigates customer service centers, offering recommendations for improving customer satisfaction and meeting requirements, ultimately aiming to enhance customer loyalty and business performance. The report utilizes concepts like RFM analysis and customer behavior modeling to understand consumer preferences and optimize service delivery.

CUSTOMER
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1 Analysing customer behaviour, identity patterns and differences in approaches....................1
1.2 Segment customers and identify target groups.....................................................................3
TASK 2............................................................................................................................................5
2 Customer relationship management and marketing activities.................................................5
2.2 Examples of customers retention practices for different industries......................................7
2.3 Examples that demonstrate the concept of ‘adding value’ to customers..............................9
TASK 3..........................................................................................................................................10
3 Customer centres organisations across different industries and their approaches.................10
Recommendations for MTR to achieve customer satisfaction and requirements.....................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Customer relationship management is very important for firm in order to manage sales
and productivity to the higher levels. Customers are the main source for organisation that will
help to increase profitability and production effectively. The report will analyse behaviour of
customers in the market towards products and services offered by firm and identity patterns as
well as differences in approach. The identification of target groups and segment customers will
be discovered in this report. Customer relationship management associated with customer
relationship marketing activities will be discussed in this report. Customer retention practices
and examples to demonstrate the concept of adding value to customers will be covered in this
report. Finally, the report will research on customer centres across various industries and their
approaches with recommendations to improve approach to customers.
TASK 1
1 Analysing customer behaviour, identity patterns and differences in approaches
MTR corporation is a firm headquartered in Hong Kong. MTR runs Hong Kong Mass
Transit Railway, and is also a major property developer and landlord in Hong Kong. The
revenues in 2016 was 4,520 crores HKD. The firm is together with its constructs, maintains,
subsidiaries and invest in railways in Hong Kong effectively. The main operations are operated
through transport operations in Hong Kong commercial business. It is also recognised as the best
performance firm operating in railways in the world. Customer relationship management is
important for the firm in order to provide quality and effective services to them.
Today in this competitive world customer relationship management is important that it
will help to address needs and requirements of consumers in the market (Balboni and Terho,
2016). This will also help to analyse what is necessary and important for them from which firm
is able to make relevant changes in operations in order to increase profitability and production.
As a field of study, consumer behaviour is an applied social science. Consumers behaviour
analysis is the "use of behaviour principle, usually gained experimentally, to interpret human
economic consumptions." As a discipline, customer behaviour stand at the intersections of
economic psychology and marketing science.
Customer behaviour modelling: Customer behaviour modelling is all about assessing the
behaviour of customers from a particular group to represent the common behaviour observed
effectively. It is observed that similar consumers will tend to behave under common
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circumstances. The model is based on customer data mining and each of them will answer one
question at one time effectively. For an example, MTR cooperation is able to use this customer
model to predict customer reaction upon particular market action taken by firm. In case the
model is sound, generated recommendations will be followed by firm and will observe the
majority of consumers as predicted by the model effectively and efficiently.
RFM approach for customer behaviour analysis: It can be said that many customer
behaviours are based on Recency, frequency and monetary value analysis which stands for RFM.
It signifies that customers who spend money for the firm in terms of purchasing products and
services are more likely to visit the business again effectively (Bhaduri and Fogarty, 2016). RFM
approach is easy to use and also popular that it is very easy to understand business managers and
marketers that it does not requires any special software to assess the behaviour of customers in
the market. The accuracy is not delivered in this approach that RFM model only defines the
behaviour of customers in the past and not able to predict future behaviour of consumers. The
critical point is that customer modelling is weak unless it is used or analysed over time of
customer behaviour effectively.
Segmenting customer into small groups and addressing individual customer based on
actual behaviour, instead of hard-coding any pre-conceived notion or assumption of what make
customer similar to one another, and instead of only looking at aggregated and averaged
information which usually hide important factors about customer.
Consumer identity is the consumption patterns through which consumers describes
themselves. In consumer culture, people are no longer consumes goods and services merely for
functional satisfaction. Consumption has become increasingly more meaning-based, brand is
often used as symbolic resource effectively. The identity patterns should be relevant enough to
identify different customers behaviours in the market toward brand effectively.
It can be said that consumer behaviour is an identity or study of business activities
associated with use of products and services, groups and individuals including the customer
response and activities. Study of customer behaviour will help business to understand the needs
and requirements of consumers in the market (Chen and Wu, 2016). This will also help to
analyse what is necessary and important for the customers while travelling for long time and
hours effectively. According to this, the MTR firm should provide facilities such as comfortable
sitting arrangements, sufficient space for person to sleep, lockers to store important things,
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luggage department etc. this will help customers while travelling in the train which helps to
increase customer satisfaction and loyalty as well. In this modern world, customer relationship
management CRM technique is one of the most preferable for organisations in order to assist
their customers effectively. This will also help to increase tourism and travelling sector.
Customer behaviour analysis is crucial that it will help organisation to understand needs and
requirements of customers in the market from which they are able to provide effective and
quality services and products effectively. Purchasing activities and buying trends will also help
to analyse information research and evaluating effectiveness of products and services offered by
firm in the market effectively.
1.2 Segment customers and identify target groups
Customer segmentation: Customer segmentation is a process in which the organisation divide
their customers in groups based on common characteristics and market research effectively. In
addition to this, in the business to business marketing the firm segment their customers according
to some certain industry factors including number of employees, location of business, products
and services and industry effectively (Di Benedetto and Kim, 2016). In business to customer
marketing firm used to segment their consumers according to demographics including, gender,
age, marital status, location, life stage etc.
Customer segmentation is crucial for the firm that it help marketers by allowing them for
better tailor marketing efforts which are related to products and services development and
communications. The communication channel should be best for the segmentation in order to
provide effective approach. Different ways should be identified by firm in order to improve and
develop their products and services towards customers in the market effectively. Customer
relationship is important for the firm that it helps to determine various customers needs and
preferences effectively. Customer segmentation provides information regarding customer which
will help to focus on only beneficial customers in the market and to improve their services as
well.
In order to do the process of customer segmentation the firm will requires some specific
information and data about customers in order to analyse their identity patterns to create
segments effectively. Some of this information can be collected by purchasing data such as
geography, job data, products or services used by customers in the market effectively. For an
example, some of the information can be measured by customer behaviour and how he or she
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entered in the business system. An online marketer working from an opt-in email list might
segment marketing messages according to the opt-in offer that attracted the customer, for
example. For an example, customer demographic, age and marital status should be acquired by
firm before or after providing services and products in a specific way effectively. The
information can be collected in more ways such as face to face, surveys, focus groups and
general research on consumers in the market (el Shoghari and Abdallah, 2016).
Use of customer segmentation can guide firm market to promote its services and
products. Customer segment is useful for both online marketing and face to face marketing. It
begins with gathering and analysing data and ends with acting on the information gathered in a
way that is appropriate and effective. Target groups refers to identify the customer requirements
and demands in a specific way that organisation should determine their potential and target
customers in the market in order to provide quality and effective services. This will also help to
assist people according to their requirements and preferences. MTR organisation can identify
target groups and provide services accordingly. For an example, the firm should determine needs
of first class, second class and third class category in train and other services. This will help to
divide services according to the price and requirements of customers effectively. An effective
customer segmentation strategy is all about assisting right consumers in the market for retention
purpose. The firm should analyse all customers in order to find the best and right. For an
example, a customer who is continuously purchasing products and services from MTR firm or
using it is a loyal and satisfied customers. Such consumers are profitable for firm that MTR
should focus on their priorities and quality. This will help to increase customer retention and lead
towards productivity and profitability.
Target groups are also important for firm in order to evaluate service needs and
effectiveness. First class customers expects quality and effective products and services from firm
that they are paying more for that (Hasanian, Chong and Gan, 2015). In order to assist such
customers, the firm should provide quality and effective services and products to them which
will also help to maintain customer retention and relationship. This will lead towards
organisation success and will achieve its desired goals and objectives effectively. Customer
relationship management approach will also help to provide information regarding various
customers requirements and will achieve customer relationship goals and objectives.
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TASK 2
2 Customer relationship management and marketing activities
Customer relationship management: CRM approach can be described as a management field
which included all the communication process which starts and end up with consumers, their
management, coordination and harmonisation effectively. The main object is to satisfy customer
needs and requirements by managing long term customer relationship which will also help to
achieve target customers and will attract new ones efficiently. Customer relationship
management approach will also help to provide information regarding various customers
requirements and will achieve customer relationship goals and objectives. Customer relationship
provides information regarding customer which will help to focus on only beneficial customers
in the market and to improve their services as well. The basic principles of CRM approach are
creating loyal and satisfied customers in the market, building long term relationship bond with
them and concern them with life cycle process of business effectively.
 At the beginning there is a free market, the customers and the business both don’t know
about each other
 Customer perceptions of the brands is the first awareness when potential customers
(called suspects) had heard of the brand, but still have not bought anything form the
market (Iyer and Bejou, 2014).
 It follows with an additional communications and addressing such potential customers
with an offer (now called Prospect, potential customer or sales lead).
 After completing the process of purchasing he or she is now become a customer for
brand.
 Lack of proper customer relationship management can cause decrease in customer
retention and loyalty or may be the end.
Customer and information: In order to take care of customer services and products, MTR
business should evaluate their requirements and demands by customer research and information
effectively. Relationship with consumers will be the main aspect here to bring a relationship of
become familiar with brand. Information regarding customer requirements and demands will also
help business to make plan and strategies which will help to assist their consumers in the market
more smoothly and effectively. It is very crucial for firm to identify customer behaviour and
understand their needs such as desires, purchasing behaviour, service uses, preferences and
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habits. Such things will help to assist customers in the market by providing services and products
according to their requirements and demands effectively and efficiently.
Customer relationship management process
Marketing promotion process: The main aim of MTR is to achieve positive influence on
customer throughout its life cycle. From the first awareness of brand to maintenance of long-
term relationship and loyalty effectively (Kumar, 2015). TV, radio, newspapers and different
communication channels will help know customer existence and requirements which will
provide information to improve positive perception and interaction.
Business and sales process: The process used by business is linked with marketing process. The
main objective of MTR is to provide quality services and products to consumers in the market
and specially to target and potential customers effectively. Marketing process includes
addressing of market needs and requirements of potential customer, specific new customer and
effect on the present ones regarding business products and services .
Products and services: During the process of customer relationship management, the firm
should provide effective information regarding products and services offered by them in the
market. The performance should be analysed in order to evaluate sales aspects and position. The
quality of products ans services should be effective enough to manage customer satisfaction and
loyalty.
Customer communication: The business should make a communication process before and
after purchasing done by customers. This will help to determine major points from the customers
perspectives from which the business is able to make changes accordingly and effectively. This
will also help to increase customer loyalty and satisfaction which lead towards profitability and
production.
Customer relationship marketing activities is a process in which consumer relationship,
customer loyalty and brand values are built through marketing strategies and activities. CRM
allows businesses to develop long-term relationship with established and new customer while
helping streamline corporate performances (Lal and Bharadwaj, 2015). Marketing strategies and
plans should be effective enough to meet goals and objectives of customer loyalty and
satisfaction. Strategies and plans formulated by MTR should be analysed well that it will help to
manage relationship with customers by satisfying their needs and requirements in the market
effectively.
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2.2 Examples of customers retention practices for different industries
Customer retention is now necessary for all kind of businesses across the world that
customer acquisition costs are rising and firms should take some initial steps towards this such as
need to innovate and assume a proactive role. There a lot of practices and strategies associated
with customer retention will help to improve consumer retention rate and address problems
effectively.
Set customer expectation: The firm should analyse all the expectations of customers regarding
MTR activities. A great way to foster loyal customers is to “under promise and over deliver” on
the expectations you originally laid out in the SLA. For instance, Datto states in its customer
SLA that any ticket submitted with an “urgent” priority will be replied to within one hour. In
reality, the response time on those tickets is closer to five minute effectively and efficiently. It
can be said customers mostly remember their bad experience with brand that the firm should
ensure quality services and products in order to meet customer expectations effectively. For an
example, R&G is a successful IT firm located in Australia adopts service based model which
helps to increase customers management and response (Laudon and Laudon, 2016). R & G has
implemented strict SLA, which work tightly with their employee KPI. Jason Neville, General
Manager of R & G, explain that his employee is incentivised to meet specific KPI exceeding
client expectation and satisfaction needs and requirements.
Trust through relationship: It is universally said that you do business with people whom you
can trust. Thus, it can be said that trust is a necessary and essential part of business activities and
customer expectation in order to manage an effective customer relationship management. By
increasing trust level the firm is able to grow commitment tends. Shared values are those aspects
which helps to determine what is special in the business which is not available in any other firm
effectively. Trust is a weapon for business from which they are able to increase sales, production,
profitability, business expansion and many other benefits efficiently.
Implement anticipatory service: Anticipatory service is a approach towards consumer service.
The approach is useful for the firms that they are able to remove problems instead of waiting for
issues. Problems can be easily removed before they happen in the business. For an example, To
achieve and maintain this harmony, today’s companies must establish a dialogue with customers
that shows an awareness of their information needs and respect for their communication
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preferences. Customers will provide important information regarding products and services
offered by firm which can be done y only maintaining loyal consumers and effective relationship
management. The firm should make strategies and plans in order to identify problems and
aspects which can cause issues within business environment in order to run MTR operational
activities smoothly and effectively.
Use of automation tool: Automation tool will help to allow for time-consuming task requiring
manual interventions to be standardised into repeatable procedures. business that leverage
automation is able to minimise downtime and keep customers network performing at their best
effectively and efficiently (Luo, Lehmann and Neslin, 2015). The firm can standardise and set
expectations for the service levels in order to increase consumer satisfaction and loyalty which
will also help to enhance their retention rates effectively.
KPI: The most effective way to improve and develop customer retention is improving services
and products offered y firm in the market towards customers. It can be said that many customers
leaves firm and purchasing behaviour that they all are not satisfied with the services. For an
example, R & G implemented customer service KPI built around their contractual agreement that
it will help them towards workers performances based on service levels and tied up with the
organisation goals and objectives effectively. The firm should evaluate customer satisfaction and
their needs in a specific time period in order to make relevant changes to improve customer
loyalty and satisfaction.
Customer feedback surveys: The firm should analyse customer feedbacks. There should be a
process in which the customers are able to provide their comments, suggestions and feedbacks
after using the services and products. The method will help MTR to determine various customer
requirements and demands fro which they can make changes and improve customer loyalty and
satisfaction (Maklan, Antonetti and Whitty, 2017). Firstly, you should monitor customer
feedback on an individual level. Comparing feedback across a broad range of customers would
be a waste of time. The second thing is to trend feedback in a specific period of time and third
the business wants feedback from customer surveys to provide intelligence.
Retain more customers: The customer retention strategies and plans discussed above will help
organisation to provide strengthen towards effective customer relationship management and will
also boost the bottom line of firm effectively. This will MTR to achieve its desired goals and
objectives which lead towards profitability and production. This will also increase customer
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loyalty and satisfaction from which more consumers will attract towards brand and enhance
productivity.
2.3 Examples that demonstrate the concept of ‘adding value’ to customers
It is important for MTR to add value to their customers in order to increase sales and
profitability. The more customers will receive quality products and services will help to enhance
business operational activities and expansion as well. There a lot of examples which describes
that adding value to the customers is a important aspect to drive business performance and
profits effectively. The firm should take some initial steps to increase and add value for
customers services and products and one of them is providing quality services. Every customer
demand for quality and the perception is also to receive services that can fill their requirements
and demands effectively (Mokhtaran and Moghaddam, 2014). Here are some elements and
factors described below which helps to demonstrate concept of adding value to customers:
Understand customer value and needs: The firm should evaluate different aspects related to
customer needs and requirements. This will help to achieve customer loyalty and satisfaction
from which the firm is able to maintain an effective relationship with consumers in the market
towards products and services as well. Survey and interaction will help to assist customers and
their needs which will also provide opportunities for business and local communities effectively.
Consider customer perspective: The art of developing business and operational activities starts
with seeing activities through customers eyes. The firm should analyse all the factors that helps
to create target markets and also provide information regarding products and services that how
will it benefit to the customers. Sales and profitability can be maximised by focusing on
providing customer requirements and services.
Work to improve customer satisfaction: The firm should take some initial steps in order to
increase customer satisfaction and loyalty effectively. Surveys will help to identify what
customer thinks about products and services offered by firm and will provide suggestions. This
will help organisation to make necessary changes in the process of providing services which lead
toward achieving customer goals ad objectives.
Marketing models in strategy:Marketing models such as SWOT analysis, Four Cs model and
Brand Essence Wheel will help to develop value statement for brand and will define the selling
point. This will also help to forecast market trends on the basis of demands. Here is the SWOT
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analysis of MTR corporation Ltd which will help to demonstrate the concept of adding value to
customer provided below:
Strengths: The firm is taking nearly half market share of the franchised public transport market,
carrying an average 4.0 million passengers every weekday effectively. There is a strong network
of more than 200km with 155 railway station. The financial performance of firm is also very
good for the few past years. Safety and reliability is undertaken and uses of technology is also
very good.
Weaknesses: The network is big but not big enough than the global counterparts. The operating
profit margins are now decreasing (Nüesch, Alt and Puschmann, 2015). It can be said that there
is a lack of international operational activities within MTR effectively.
Opportunities: The firm is able to expand its market and rail network. Merger with Kowloon-
Canton Railway Corporation brings new growth opportunities to businesses in and outside of
Hong Kong. Government support will also help in terms of allowances, grants and trainings
effectively.
Threats: The major threat for MTR organisation is its competitors. Jardine Matheson Holdings
Limited and Hutchison Whampoa are the two main competitors for MTR in the railway market
effectively.
TASK 3
3 Customer centres organisations across different industries and their approaches
It can be said that every business have different customer requirements and needs but
they have one idea in common that there is no business without customer. Customer needs
describe the product and service offered by business in the market. For an example, in financial
business the sector will require, data and information collection, customer care, telemarketing
service while the government only offers citizens. Technical requirements are also different for
every king of business.
Financial: It can be said that the importance of financial sector is increased over the last few
years. Customers seek informative financial advices from customer cares, the telemarketing
departments has new product and offering to promote almost on a daily basis and due to the
shaky worldwide economical and financial situations the debt collections departments are loaded
with works effectively and efficiently.
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