Customer Relationship Management (CRM)- Doc
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Added on 2020-05-11
Customer Relationship Management (CRM)- Doc
Added on 2020-05-11
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Running head: COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT INTHE RETAIL SECTOR: CASE OF ASDA AND TESCOComparison of Customer Relationship Management in the Retail Sector: Case of Asda andTescoName of the Student: Name of the University: Author’s Note:
1COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE RETAILSECTOR: CASE OF ASDA AND TESCOAbstract This paper deals with the CRM practices that are implemented in the retail sector inUnited Kingdom and a comparison is undertaken with respect to the two organizations Tescoand Asda. The main motive of every organization has been to earn additional profit and thatis only possible if the firms are able to retain their existing customers and bring in new andpotential customers in their customers base. Therefore, customer relationship management isa customer based organizational strategy with the aim of increasing their profitability,customer satisfaction and revenue.There have been various products that have developed for the past few years and therise in the competition has led to the construction of new and innovative plans among theresearchers. It has been observed that customer relationship management has been one of themain plans that have been established by various retail organizations in order to understandthe requirements of their customers and establish new and improved plans so that thegrievances of the customers can be resolved.The analyses of the data that are gathered from the secondary sources with respect tothe two firms have effective CRM practices and therefore they have a good base ofcustomers. The retail sector has significant use of CRM and this system is essential in orderto create loyalty and satisfaction among the customers.
2COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE RETAILSECTOR: CASE OF ASDA AND TESCOTable of ContentsChapter 1: Introduction..............................................................................................................41.1 Background of the paper..................................................................................................51.2 Problem Statement...........................................................................................................61.3 Research Objectives.........................................................................................................61.4 Research Questions..........................................................................................................71.5 Research Significance......................................................................................................71.6 Organization of the paper.................................................................................................7Chapter 2: Literature Review.....................................................................................................92.1 Customer Concept............................................................................................................92.2 Customer Relationship Management...............................................................................92.3 Aspects of CRM.............................................................................................................122.4 Technological Consideration in the Implementation of the CRM strategy...................122.5 Strategy for the introduction of CRM............................................................................132.6 Planning for CRM deployment......................................................................................132.7 CRM in Tesco and Asda................................................................................................14Chapter 3: Research Methodology...........................................................................................163.1 Introduction....................................................................................................................163.2 Research Onion..............................................................................................................163.3 Research Philosophy......................................................................................................163.4 Research Approach........................................................................................................173.5 Research Design.............................................................................................................18
3COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE RETAILSECTOR: CASE OF ASDA AND TESCO3.6 Data Collection...............................................................................................................183.8 Secondary Data..............................................................................................................193.9 Sampling Method...........................................................................................................203.10 Data Analysis Plan.......................................................................................................203.11 GAANT Chart..............................................................................................................21Chapter 4: Data Analysis and Discussion:...............................................................................22Chapter 5: Conclusion Recommendation and Future Work....................................................315.1 Conclusion......................................................................................................................315.2 Recommendations:.........................................................................................................325.3 Limitations of Study/Scope of Study:............................................................................36Reference List and Bibliography.............................................................................................37
4COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE RETAILSECTOR: CASE OF ASDA AND TESCOChapter 1: IntroductionWith the advent of the new century the firms operating in the retail sector had toundertake various infrastructural transformations as they required reorganizing their presentproduction methods. This alteration of the retail sector was the main reason for thetechnological and organizational developments that led to the production of new andinnovative products and services that would improve the lifestyle of human beings. Theintroduction of these innovative products are main factors for the rise in the competitiveforces that was doubled by the internationalization phase and leading to an increased numberof mergers and acquisitions among the firms. It has been observed that the main motive ofevery organization has been to earn additional profit and that is only possible if the firms areable to retain their existing customers and bring in new and potential customers in theircustomers base(Zhang, van Doornand Leeflang 2014). Therefore, customer relationshipmanagement is a customer based organizational strategy with the aim of increasing theirprofitability, customer satisfaction and revenue. The mechanisms that are inclusive of thispurpose of the business are the storage, capture and evaluation of the customers along withthe internal process information. The functions that assist this aim of the business aremarketing, sales, customer service, professional development and compensation. Thetechnologies that assist the customer relationship management initiative must be included as asegment of the strategy that is customer centric(Fernie 2014). There have been various CRMinitiatives that have failed as they were restricted to the installation of the software withoutaligning the software with the strategies that are customer centric. This is the first chapter ofthe paper and therefore it establishes an outline of the general structure of the study thatincludes the problem statement, the research objectives, hypothesis and the researchquestions that will be helpful for the completing the study.
5COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE RETAILSECTOR: CASE OF ASDA AND TESCO1.1 Background of the paperThe advent of competition with the retail industry has expanded at a rapid rate overthe past few years in United Kingdom. This has mainly been due to the outcome of retailindustry being one of the most significant sectors globally. The desire for new and improvedproducts and services has revolutionised the retail industry as the organizations are focusedon manufacturing new and improved techniques that will enhance their revenue and will evenrestore their customer base. There have been various products that have developed for the past few years and therise in the competition has led to the construction of new and innovative plans among theresearchers. It has been observed that customer relationship management has been one of themain plans that have been established by various retail organizations in order to understandthe requirements of their customers and establish new and improved plans so that thegrievances of the customers can be resolved(Armstronget al. 2014). It is the main function ofthe firms to resolve the complaints of the customers and the firms who resolve theseproblems faster are the ones who are more competitive in the market. Due to the rising patterns globally, retail sector firms have expanded their businessworldwide and have established competition within the retail sector. Therefore, as a remedycustomer relationship management has become a mechanism for every firm in order to utilizethe competitive edge over one another. The creation of customer satisfaction and value is atthe very core of the modern era of marketing practice and thinking. The organizations thathave an image for giving out increased level of customer satisfaction with respect to doingthings in an effective manner than their rivals have been observed as having a better customerrelationship management(Sutton-Brady, Kamvouniasand Taylor 2015). Therefore, theemployees functioning in these firms have knowledge about the connection among their jobsand the level of customer satisfaction.
6COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE RETAILSECTOR: CASE OF ASDA AND TESCOThe comparison of the customer relationship management can be very wellunderstood by undertaking a comparison among Tesco and Asda, two of the renowned retailorganization that functions in United Kingdom. It has been observed that the two firms arevery competitive and there are very less differences among their operational strategies.Therefore, understanding their customer relationship management will be helpful inunderstanding the CRM in the retail sector in United Kingdom. 1.2 Problem StatementWith the advent of higher extent of competition in the retail industry, the firms havetried to influence the consumers with the help of quality products and a variety of products,even though it has been observed that there has been loss of some customers due to thevariations in their preferences, tastes etc. It has been observed that even though there havebeen attraction of new customers but most of their customers have the habit of purchasingvarious products from different firms. It is due to this factor that the firms are continuouslytrying to improve their product quality and prices so that the customers are attracted towardstheir products(Carlson, O’Cassand Ahrholdt 2015). The maintenance of the quality of theproduct is influential for the restoring the satisfaction level of the customers. Therefore, it isimportant that CRM is maintained by every organization in order to maintain theircompetitive edge and retain their customer base. It is therefore due to this factor that analysisof the CRM initiatives of Tesco and Asda is undertaken in order to undertaken what impactCRM has in the retail sector. 1.3 Research ObjectivesThis paper is being constructed in order to gain an idea about customer relationshipcould have an impact on the level of customer satisfaction by using Tesco and Asda in UnitedKingdom as a case study. The distinct objectives and aims of the papers were to investigatethe following:
7COMPARISON OF CUSTOMER RELATIONSHIP MANAGEMENT IN THE RETAILSECTOR: CASE OF ASDA AND TESCOTo discover the Customer Relationship Management practices of Tesco and AsdaTo investigate the degree of customer satisfaction of the CRM practices in thechosen region To suggest the significant factors that is in association to the CRM practices forthe customer satisfaction in the retail sector. 1.4 Research QuestionsThe research questions with respect to the research objectives are discussed as follows: Q1. How does the customer observe the degree of CRM practices in Tesco and Asda? Q2. How do the customers rate the degree of customer satisfaction in Tesco and Asda?Q3. How the staffs of Tesco and Asda do observe the effect of CRM practices with respect tothe customer satisfaction? Q4. Do the consumers have any recommendations in enhancing the CRM practices in Tescoand Asda? 1.5 Research SignificanceThe undertaking of the research will be influential for the retention of consumers anda development in the customer satisfaction understanding with the help of advancedtechnologies with respect to CRM and product and service qualities. The paper will disclosethe level of CRM and its impact on Tesco and Asda while functioning in the economy. 1.6 Organization of the paperThe paper is structured in a precise manner with the introduction chapter providing aninsight over the topic. Chapter 2 of the paper comprises of the literature review where theanalysis and the outcomes gained by other researchers with respect to this theme arediscussed. Chapter 3 comprises of the research methodology that discusses about the
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