CRM Strategy Success and Failures

The assignment delves into the complexities of Customer Relationship Management (CRM) strategies. It examines both the successes and failures of implementing CRM, highlighting the impact on organizations and consumers. The analysis considers factors influencing CRM adoption, such as management level and employee perspectives. Furthermore, the document proposes two new CRM strategies for enhanced effectiveness.

CUSTOMER
RELATIONSHIP
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
QUESTION 2...................................................................................................................................2
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Philosophical management done by an organization for the attainment of the goals and
the objectives which can be best achieved by the through the identification and satisfaction of the
consumers stated and unstated needs and wants. The concept can also be termed as as a
computerized system which has been utilized by the business corporation for the targeting,
identifying, acquiring and retaining of the best mix of the ultimate consumers. The stated concept
helps in understanding the needs of the consumers, profiling the prospects and also development
of the relations and maintaining strong bonds with the consumers by providing them with the
best products and enhanced services (Verhoef, Reinartz and Krafft, 2010.). The present report is
analysed sainsbury's which has gained the second place in the sector of supermarkets. The below
carried out report has been summarised on the reasons of CRM failure and also the explanation
of the new CRM strategies for the stated organization is done.
QUESTION 1
An increase and enhancement in the efficiency between the departments for the
improvements in the cross-sell and up-sell opportunities and also there is development in the
customer satisfaction by providing access in a more convenient way to the data of the consumers
throughout customer-related processes (Lo, Stalcup and Lee, 2010.). A “vanilla” CRM is a
software which is a computer operated system and are similar to the computer hardware's or
algorithms. This is a software which has become widespread de-facto industry standard which
has been used in a wide manner by the business corporations and also by individuals. The ideal
CRM implementation provides users with actionable, real-time data from multiple enterprise
systems, turning a “vanilla” CRM information repository into a valuable resource. Having many
of the advantages of this application there are still some reasons by which the system faces
failure and which are mentioned below:-
Lack of Vision: A clearly defined objectives can be considered as the start of the
successful implementation of the process of the CRM. The problems faced should be addressed
and also the specific goals need to be set which the organization wants to reach, Sainsbury
should also find out where the company wants to stand. The firm's vision will help the
organization with establishing the purpose of the projects to be carried out and guides for the
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strategies to be planned. So it will be impossible to achieve the goals without establishing them
clearly (Nguyen and Mutum, 2012. ).
Approaching CRM as a technology only solution: The concept of CRM is considered
just as a tool or a software but then also the software has become an integral part of the
successful implementations of CRM. The term CRM is an enterprise-wide effort to improve
customer-facing business processes in order to meet company goals and this system also effects
the one who comes in contact with it. The individuals, consumers or the employees who will be
making the use of the system have a need to be engaged in all the stages of the implementation.
Forcing employees to use whatever software and processes IT has chosen for them is a downhill
path to failure (Wang and Feng, 2012.).
Having these many problems associated with the system but then also the organizations
are having a need to make the use of this system in the day to day operations. This system will
provide sainsbury with the ability to make personalization and customization in the relationship
with the consumers and also provides with a maintenance of the repository of customer profiles,
giving employees the ability to treat each client individually. Moreover the system also helps the
organization in the identification of the potential consumers which in turn will increase the
revenues (Heller Baird and Parasnis, 2011.).
Marketing automation
The system focuses on the marketing processes and this system uses the organizes the
marketing campaigns which consists of the utilisation of the actual information of the specific
consumers in determination, evaluation and development of the communications which has an
aim at the consumers individual and multichannel environment.
Sales force automation
CRM systems can also be used by Sainsbury in the attainment of the consumers and also
dealing with the existing consumers. Identification of the consumers is also done and also
maintenance of the related and relevant data is also done by this system. And the stored data is
also distributed among the the various stages which consists of the lead generation for more
prospects(Reimann, Schilke and Thomas, 2010.).
QUESTION 2
Developing a CRM strategy.
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The strategies are meant to be the outlines or the formatted structure of the organizational
goals and the objectives which are need to be determined and attained by the individuals and also
by the business corporation (Lin, Chen and Kuan-Shun Chiu, 2010.). So the CRM strategies
creates and develops an outline where the destination is, the objectives and the milestones are
set. It also summarizes the current situation and also shows and traces the path for the
organization from where it is at the current state and also where it wants to reach.
The below mentioned are the steps of the development process of the CRM strategy and
which has been divided mainly in three sections for Sainsbury:-
Set the destinations
Sainsbury needs to set a clear and attainable destinations and goals. For this the company
's vision and the goals and pre-determined objectives which are derived from this vision are the
intended destinations of the CRM strategy. The vision of the business corporation has an
interrelationship and is heavily dependent on the leadership of the company and also on which
the definition of CRM is used (Kumar, 2010.).
Audit the current situation
There are various types of audits which can be made in order to carry out the further
strategies. For this step sainsbury can make the examination of the past CRM strategies and their
failures in order to make the necessary changes in the current strategies. The business
organization needs to carry out a survey on the current state of the relationships with the
consumers for the betterment of the system and also to find out the most significant matters
which matters the most to the customers (Linoff and Berry, 2011.).
Map the journey.
The system of CRM is a blue print or the traced path for how the organization will be
attaining the the ideal customer base and for doing that the business corporation needs to re-visit
the marketing strategy. What products or
services is it going to sell, to whom, at what price and through which channels? The whole
responsibility is of sainsbury for building the consumer loyalty one the firm has selected the
consumer segments.
Different types of CRM strategies.
Face to face interactions: This strategy can be adopted by sainsbury for enhancing and
making the developments in the CRM system. The company needs to develop or build a team for
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carrying out the face to face interactions with the consumers (Kumar, 2010.). This team should
consists of the expertise and all the team members should posses the necessary potential and
capabilities for carry out a fruitful communication and interaction process. The members should
be able to convince and influence the consumers. By carrying out the interaction process the
consumer will able to clear their doubts and tell about their needs and demands and also the
company will be able to create and develop a strong bond with the consumers.
Organizing seminars and exhibitions: The company can make arrangements for
organizing seminars and exhibitions and which will be including the points and the matters or the
issues of the consumers. The consumers will be given rights for raising their point of issues and
concerns and the duty of the company to take necessary actions over it (Kumar, 2010).
FORCE FIELD ANALYSIS
This is a tool which helps in the decision making, this is based on forces which is making
a compulsion to make changes in the organization by taking a perfect decision on it. A change is
a need and it can be occur to make production and services according to the customer's
expectations. To make successful organization, the management have to be make changes in
their work styles and production lines.
Forces FOR Change Score
Employees and the staff
members.
8
Management level 7
Ultimate consumers 6
Change Proposal
So on the basis of the carried out
analysis it has been concluded
that the strategy of carrying
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out face to face interactions
will be proved beneficial and for
both the consumers as they will
be easily solving their issues and the
employees will be able to
understand the problems in an
appropriate manner and this will create
a ease for the employees in listening
and solving the same query.
Forces AGAINST
Change
Score
Consumers 4
Employees 2
Management Level 3
CONCLUSION
From the above carried out analysis it has been concluded that the CRM strategy has
been observed to be facing failures but then also has been proved beneficial for the
organizations. Moreover there are many benefits which has been explained and has been proven
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fruitful for the business corporation. Further the development of the two new CRM strategies has
been done.
REFERENCES
Books and journals
Heller Baird, C. and Parasnis, G., 2011. From social media to social customer relationship
management. Strategy & Leadership. 39(5). pp.30-37.
Kumar, V., 2010. Customer relationship management. John Wiley & Sons, Ltd.
Lin, R.J., Chen, R.H. and Kuan-Shun Chiu, K., 2010. Customer relationship management and
innovation capability: an empirical study. Industrial Management & Data Systems.
110(1). pp.111-133.
Linoff, G.S. and Berry, M.J., 2011. Data mining techniques: for marketing, sales, and customer
relationship management. John Wiley & Sons.
Lo, A.S., Stalcup, L.D. and Lee, A., 2010. Customer relationship management for hotels in Hong
Kong. International Journal of Contemporary Hospitality Management. 22(2). pp.139-
159.
Nguyen, B. and Mutum, D.S., 2012. A review of customer relationship management: successes,
advances, pitfalls and futures. Business Process Management Journal. 18(3). pp.400-
419.
Reimann, M., Schilke, O. and Thomas, J.S., 2010. Customer relationship management and firm
performance: the mediating role of business strategy. Journal of the Academy of
Marketing Science. 38(3). pp.326-346.
Verhoef, P.C., Reinartz, W.J. and Krafft, M., 2010. Customer engagement as a new perspective
in customer management. Journal of Service Research. 13(3). pp.247-252.
Wang, Y. and Feng, H., 2012. Customer relationship management capabilities: Measurement,
antecedents and consequences. Management Decision. 50(1). pp.115-129.
Online
The Three Types of CRM Systems. 2017. [Online.] Available Through.
<https://www.drivingsales.com/lawry-matteson/blog/20130327-the-three-types-crm-
systems> [Accessed on 15th December 2016].
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