Customer Relationship Management (CRM) Adoption Model

This assignment requires students to research and analyze the concept of Customer Relationship Management (CRM) adoption. The two-stage model of CRM adoption is explored, including its antecedents such as cost, technology acceptance, and employees' satisfaction. Additionally, the role of CRM systems in customer knowledge creation is examined, along with the impact of social media technology on customer orientation process and organizational sales performance. The assignment also touches upon the evolution of CRM in SCRM, customer loyalty, brand image, and the effectiveness of electronic CRM systems.

Running head: CUSTOMER RELATIONSHIP MANAGEMENT
Customer Relationship Management
Name of Student
Name of University
Author Note

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Table of contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................6
Reference List..........................................................................................................................11

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Answer to question 1:
The Customer Relationship Management (CRM) model was developed by Gartner in
the year 2002 and had coined the term ‘True CRM’, which can be used by the organisations
in handling with the customers in a better manner. Gartner Inc. is one of the research and
advisory organisation with respect to information technology in the world (Khodakarami and
Chan 2014). The company has clients from all over the world and provides them advises
regarding maintaining better relationship with the customers. The company was established
in 1979 and its headquarters is located in Stamford, Connecticut and has clients in more than
90 countries across the globe. The company also has around 1600 persons as consultants and
research analysts (Trainor et al. 2014).
The primary reason for the organisation in not understanding true CRM is that they
are not being able to see the bigger picture that will help in making better decisions with
respect to the objectives of the company with that of the customers. Most of the organisations
are struggling in measuring the benefits that they are providing to the customers, as the
methods for proving are very difficult with respect to the revenue that has increased within
the organisation (Choudhury and Harrigan 2014).
The main structure of the CRM model proposed by Gartner consists of eight building
blocks such as the CRM vision, which is the first of the blocks. Most of the organisations that
are successful in nature use the style of leadership that is inspirational in nature. This helps
the organisation in maintaining a better position in the market with respect to its competitors
by defining the value propositions in a better manner (Eko 2014). An example of this would
be ‘Wells Largo’s Los Angeles Metro Region’ where the organisation tries to interpret the
vision of the organisation into definite actions throughout the areas that are functional in

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nature. This has helped the company in achieving almost triple of the amount that was
invested in the metropolitan area of Los Angeles (Nitu, Tileaga and Ionescu 2014).
According to Venturini and Benito (2015), the second block of the CRM model
consists of the strategy where the successful organisation has to gain proper knowledge
regarding whether the base of customers can be transformed into an asset by delivering a
proper value proposition for the customers. It also needs to consist of the objectives regarding
the organisation, customers and the various segments that the company aims to attract the
customers. The company also needs to define the resources that will be used for interacting
with the potential customers.
According to Gohary and Hamzelu (2016), the third block of the model is known as
Consistent Valued-Customer Experience, which is inclusive of the propositions, which
contains some values and is beneficial for the organisation as well as the customers. It helps
the organisation in achieving a better position in the market by being consistent in all the
channels. Charles Schwab is one of the best examples, as it is considered to be a leader with
respect to the technological innovation and is also facing major competition from the other
firms as well. Eko (2014) was of the opinion that most of the financial institutions act at a
faster rate in meeting the demands of the customers by providing the services through various
channels throughout the day. This helps the organisation in gaining a better understanding
regarding the requirements of the products. For instance, Charles Schwab has been offering
more functionality with respect to the products through the traditional as well as the modern
channels. This has helped the company in gaining positive results due to the efforts in its
CRM initiatives.
According to Das (2015), the fourth part of the model is known as the organisational
collaboration, which involves the transformation of the behaviour of the employees, structure

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and culture along with the suppliers and workers so that the work can be delivered in a better
manner by working together. It also helps in ensuring that the use of better level of
technology will help in changing the strategy of management in a solid manner. Nitu, Tileaga
and Ionescu (2014) were of the view that the use of the BMC software helps in making the
changes in the management plan by helping in applying the technology of third-generation
sales within the organisation. An example of this would Compaq that deals with computer
equipment. The infrastructure of the company is that the Information Technology department
helps in supporting the partners by using the traditional and the modern applications so that
the databases can be maintained in a proper manner. This allows the partners to gain access to
the content of the product and the services and maintain different profiles at the same time as
well. The use of the initiative in relationship management has helped the company in earning
projects of over $100 million in a span of 3 years.
According to Kupper et al. (2015), the fifth block is known as processes that include
the lifecycle of the customers and the processes that will help in its analysis. An example of
this would be a renowned retailer known as Williams-Sonoma and it uses the various
channels for providing knowledge of the products by utilizing the tools for collecting the data
and the capability to personalize the products. This has helped the company in acquiring
potential customers and has built a better relationship with the existing customers as well.
This is due to the strategy that it has adopted with respect to the various channels of CRM.
MacLeod (2017) was of the opinion that the sixth block of the model consists of the
information where the collection of data is important for the decisions that will be taken up
within the organisational setting. For example, the company known as Harrah’s entertainment
operates on the loyalty of the customers, as the organisation uses the data that they collect
from the various hotels and casinos that they have for the customers. Eko (2014) stated that
the profit of the company helps the company in conducting a program so that the customers

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can be rewarded in a timely manner. The tools that are available on the web help them in
gaining access to the data warehouse so that the customers can be rewarded with upgrades,
seasonal tickets and discounts. This helps the company in attracting a large number of
customers every year so that the rate of profit of the company can be increased.
Khodakarami and Chan (2014) opined that the second to the last block in the CRM
model is known as technology, as it helps the organisations that are successful in leveraging
the data with the help of managing the information in an effective manner. These are done
with the help of the applications that are oriented towards the customers. It is also done with
the help of the infrastructure of information technology and the architecture that helps in
supporting the Customer Relationship Management. This system helps in processing the
information in a manual manner and fulfils the needs of the customers whenever it is
possible.
The last block in the model of CRM is known as metrics, as it helps in keeping a track
of the external and the internal measures so that the success or the failure of CRM can be
judged. This will help the organisations in stabling the important elements so that the value
and the delivery of the services can help in increasing the loyalty of the customers towards
the products or the services that are being offered by them (Gohary and Hamzelu 2016). It
will also help the organisation in improving the areas so that it can help in increasing the
loyalty of the brand among the customers. An example of this would be Dow, as it has been
measuring the costs that they have been incurring for the interface of the customers along
with the different activities within the global chain. This has helped the company in
increasing its rate of turnover and has saved around $515 million (MacLeod 2017).
According to Venturini and Benito (2015), the CRM model is an important strategy
within the process of the business, as it helps the organisations in building up the relationship

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with the customers in a better manner. The organisations need to understand the importance
of the customers so that they can use the applications and the measures that will help them in
attracting a large number of customers and increase the percentage of the profit for the
organisation as well.
Answer to question 2:
The implementation of the CRM model proposed by Gartner provides opportunities
for hotel sectors to continue with an effective business. The benefits derived from the
application of this model are several. One such benefit is that the application of the CRM
model of Gartner provides the value proposition of a company. According to González-
Benito, Venturini and González-Benito (2017), value proposition provides a sense of
innovation, service or feature that attracts the customers. The value proposition that is derived
from the application of Gardner’s CRM model can define the manner in which Firmdale
Hotels intends to serve its customers. It is an established fact that Firmdale is one of the most
prestigious hotels located in London. At the same time, the competition it receives from other
reputed hotels such as J.W.Marriot and Savou Hotels can be intensive and can as a result
Firmdale may suffer from a poor growth in the market. Other benefits include establishing a
relationship with the customers. As pointed out by Jaber and Simkin (2017) information
about customers is an essential success criterion for a hotel. Hence, the application of the
CRM method can help Firmdale gain necessary information about the customers of the
region. This is particularly important in situations that involve an extension of the business in
an international market. The application can even help in enhancing the cross selling and up
selling opportunities of Firmdale hotel.
As observed by Nyadzayo and Khajehzadeh (2016) the cross selling and up selling,
strategies are important sales management concept that needs to be applied based on proper

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analysis of the market. Cross-selling technique is used at the time when sales representative
has more than one type of products that can be offered to customers. On the other hand,
upselling includes selling a product that was in the initial interest of the customers to buy.
They do not focus on additional sales to derive more commissions. The application of CRM
can help Firmdale by identifying the products and services that the hotel can offer. A mixture
of both the techniques can be applied that can help in increasing the reputation of the hotel.
For example, Firmdale offers customers with an experience of the richest bars and restaurant
all across the city and at the same time, it opens up shops for the customers so that they can
purchase goods for personal purpose. Such an offering provides opportunities to the company
to be involved in both of techniques and increase the revenue and reputation of the hotel. As
stated by Navimipour and Soltani (2016) the application of the selling techniques require
organisations, to be honest. Satisfaction of the customers can be maintained if Firmdale
provides an honest opinion about the price and quality of products that it is offering.
Transparency of the prices can help bring about an increase in the number of customers at the
hotel.
This strategy can help Firmdale to acquire more customers at any point during a
season. As observed by Soltani and Navimipour (2016) Firmdale hotels consist of eight
boutique hotels in London and two in New York. Hence, managing the vast empire requires a
steady inflow of cash from the services rendered to the customers. It has been seen that
Firmdale hotels have won numerous rewards and accolades for being outstanding in
international trade relations. The recipient of the Queens Award for Enterprise in 2000, 2006
and 2009 provides evidence that Firmdale is a favourite among customers (Firmdale 2017).
This number of customers that the hotel attracts provides it with opportunities to expand in
the international market. One of the ways that Firmdale adopts in trying to attract the
customers is the fact that it provides gift certificates to customers visiting the hotels. This

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provides opportunities to the customers to get a discount the next time they visit the hotels.
Thus, the prices set for the items can be neutralised by the certificates as it provides more
value for the customers. The fact that the hotels provide facilities for conducting events,
meetings and weddings add value to the customer relationships that it possesses. In this
regard, it can be said that Firmdale Hotels have been in an optimising maturity level wherein
it has integrated customers into the daily operations of the business (Gartner 2007).
To understand the application and implication of the CRM process, the use of certain
software can help Firmdale to build a coherent body of information. This can help the hotel to
create a value proposition that may be useful to maintain the interests of the clients
(Rodriguez, Peterson and Ajjan 2015). For example, the application of SAP software can help
in maintaining the client details in a proper manner. This is because SAP consists of the
ability to support complex business matters such as cash related orders. The improved
interface of the SAP software provides users with an opportunity to record details of a
particular client. It is to be noted that a client of a hotel sector can comprise of customers as
well as vendors that provide the necessary materials for its success (Tzokas et al. 2015). SAP
software provides large business viability for the vendors. However, the application of the
software needs to be done by taking necessary precautions. The difference in the user
interface paradigms may provide hindrance during the maintaining of records. Extensive
requirement related to Information Technology is also required for the proper running of the
software. This is mainly because of the excess dependency on technology and other SAP
products (Eko 2014). The application of the software may enhance the insights of the hotel
and ensure that new products and service method may rise.
It has already been seen that CRM provides a prospect of adding a value proposition
on the products and services. This includes the innovation of a particular product or service
that either has received negative feedback or has been underwhelming in the success of a

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company (Padilla-Meléndez and Garrido-Moreno 2014). In the case of Firmdale Hotel, new
products and services can be formed so that customers can be attracted and the reputation of
the hotel can increase. The enhanced insight into the products and services required provides
for a marketing strategy that can be used effectively for enhancing the reputation of the
market. In this regard, it can be said that new products and services that may arise due to the
application of the CRM tactic include the introduction of toys. It has been seen that the hotels
provide patched up toys that are designed by the interior decorator of the hotel (Firmdale
2017). These toys can be innovated and made into soft toys to attract more children at the
hotel. Although the focus of the hotel is based on organising events and meetings for high
clients, the application of innovative tactic in this department can help in making the hotel
comfortable for the visit of families. However, it needs to re-align the assets to meet the
requirements of the customers.
According to Velu et al. (2016), the assets of a company are usually the resources
owned by it to create a brand value. These include cash, receivable accounts, inventory, a plot
of lands and employees. To satisfy the customers it is necessary for organisations to ensure
that these are re-aligned from the previously set objectives. It has been seen that at most
times, the infrastructure or the services of a company need to change so that the customers
can be satisfied. It also changes due to the growing competition in the business. In the case of
Firmdale, the hotels can realign the patchwork toys that the company provides. The
patchwork toys of the hotel provide an underwhelming response from the customers
particularly after it is compared with other departments of the hotel. The inventory of the
hotel needs to increase so that it can maintain more products. For example, the interior
designs of the hotel receive an overwhelming response from the customers. Most people that
purchase new houses or open restaurants seek the expertise of the interior decorators of
Finsdale Hotel. Thus, the inventory needs to increase so that the designs can be stored and

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presented to the customers during the time of need. According to Rahimi and Kozak (2017),
the satisfaction of the customers is essential for the hotel to survive and a good practice needs
to be adopted so that the hotel can implement a proper technique to maintain its reputation.
As stated by Ritter and Geersbro (2018) good practices need to be undertaken and
followed so that an organisation can be competitive and gain extra revenue from the market.
In this regard, benchmarking need to be done so that the best organisation can be followed
and strategies can be made based on the example provided. In the case of Finsdale Hotel, it is
necessary to maintain and manage the hotels and other accessories by following the recent
trends in the market. For example, as observed by Buttle and Maklan (2015) the hotel can
adopt the application of recent software for maintaining and enhancing the opportunities
provided to the clients. The application of software like SAP can help Finsdale to analyse the
necessary growing demand of the hotel. Customer satisfaction can be maintained by
implementing necessary changes in the services provided. For example, a good after sales
service can help the hotel maintain a good customer base and ensure that a recurring business
is ensured for the future.

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Reference List
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practices on customer acquisition: An empirical study on a selected organized retail store of
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