Customer Relationship Management Systems

The assignment delves into the concept of Customer Relationship Management (CRM) systems, examining their influence on customer knowledge creation as highlighted by Khodakarami and Chan (2014). It further analyzes success factors and implementation strategies for CRM systems, referencing works by Fawcett et al. (2014), Kumar and Reinartz (2012), and Wu and Lu (2012). The analysis considers diverse applications of CRM in sectors like banking, retail, and hospitality.

Customer Relationship
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Key aspects of CRM...........................................................................................................1
b) Benefits of CRM................................................................................................................2
c) Impact of quality system on CRM.....................................................................................3
d) Processes necessary to effective CRM...............................................................................3
e) Role of internal staff in achieving effective CRM.............................................................4
F) Role of external stakeholders in achieving effective CRM...............................................5
BIBLIOGRAPHY............................................................................................................................6
TASK 2............................................................................................................................................6
a) How the loyalty schemes chose gain information about customers...................................6
b) How the information gained informs marketing and customer service policy..................7
BIBLIOGRAPHY............................................................................................................................9
TASK 3............................................................................................................................................9
a) Review of CRM in Tesco...................................................................................................9
b) Proposed improvements to CRM processes.....................................................................10
c) Proposed improvements to the role of staff in promoting customer relationships...........10
d) Plan for the implementation of improvements.................................................................11
BIBLIOGRAPHY..........................................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Customers relationship management (CRM) is considered as a phenomenon that is used
by the organization to develop strategies, technologies and practices through customers are
analysed and managed. The ultimate goal of any organization is to gain maximum profit and this
is only possible when they will be able to satisfy their customers (Kishor and Nagamani, 2015).
In this context, CRM helps the firm to understand their customers and provide them services
accordingly. This enables the firm to achieve their goals and objectives. The present report is
about understanding good practices related to “Customer relationship management”. This report
covers ways through which business get benefited from effective CRM. Further, this report
covers the role of loyalty schemes in CRM.
TASK 1
a) Key aspects of CRM
Customer relationship management determines the relationship of the enterprise with
their buyers. It is a crucial element in which that system of CRM can be changed as per the
purpose of the business. If the organisation has good relations with its customer, then it will able
to compete in a better way in the market. There are several aspects of CRM and all are related to
each other. Below given are few of the aspects:
Data analysis: This can be determined as the backbone of entire CRM system
(Khodakarami and Chan, 2014). All the information related to customers is added up constantly
and this is combined with predictive analysis plan. Due to customer data analysis, the enterprise
can better plan its services and operations. In this way, a successful model of CRM can be built
comprising of new marketing campaigns, new product development and new strategies
formation. For example, McDonalds conduct frequent research so as to know the preference of
customers and develop products and services as per their preferences.
B2B relationship: Relationship between suppliers, distributors and partners is included in
this kind of relation. It is basically an external network that is engaged in serving internal
network. When relationship with suppliers for example is not effective, then it becomes difficult
for the business to operate in effective manner.
Customer interaction channels: These are direct indicators for failure or success of model
related to CRM. However, it is important to monitor customer needs constantly. If a company
receive few complaints from its customers via emails and calls, it shows that company has high
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satisfaction rate. For example, Hilton review their mails and work over the issues that are faced
by customers so that strong relationship can be maintained.
b) Benefits of CRM
CRM is a system that assists to enhance relations with customers. It also includes finding
prospective customers and retaining the existing customers. It is beneficial in terms of collecting,
organising and managing information of the customers. Customers Relationship Management is
highly beneficial for the organization in many ways among which few are as follows:
Improves information: CRM enables the organization to get information regarding the
needs and preferences of customers (Bedarkar, Pandita and Saini, 2016). Accordingly, they make
changes in the services and products with the help of which they can satisfy customers in future.
For example, employees of Tesco make sure that all the issues that customers are conveyed and
proper information is delivered to them.
Enhances communication: When firm satisfies its customers, then this enables them to
develop a strong relationship with them. Therefore, it can be stated that loyalty is shown by
regular service users towards the company.
Improves customer service: When management better understands their customer
problems, then it will able to provide them with customized solutions. With CRM, management
get to identify the issues that customers face and appropriate steps are taken with the help of
customers service are improved.
Increase customer revenues: With the help of using CRM strategy, the business is able to
enhance their revenue easily. By collecting data, effective marketing campaigns could be
formulated in order to promote products in the market so that it could reach out to the users.
Customers are able to determine the better understanding about the type of services and products
that are delivered to them by the firm and customer review increases.
Optimize marketing: In order to focus on customer needs and behaviour, it is essential to
demonstrate effective marketing campaign. With the help of marketing campaigns, the enterprise
can better communicate about its product and services to the customers. CRM is engaged in
collecting data and information which could be utilized for the benefits of users.
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c) Impact of quality system on CRM
Quality system, adds up a plus point for the firm that has CRM. There are many
organizations that provide their customers with similar products and services. However, the
difference is developed only when firm focus on delivering their services with high quality
(Wang and Feng, 2012). Main aim of any firm is to gain maximum profit. This is only possible
when they are able to understand the requirement of customers. With the help of CRM, firm is
able to understand the requirement effectively and appropriate steps are taken by the
organization to make improvement. With the help of CRM, quality services are delivered to
service users. In this context, there are three main standards set through which quality can be
measured. They are Balance score card, total quality management and international organizations
of the standard. Quality system has a positive impact over CRM as it enables to provide high-
quality services and helps to develop a strong relationship with their customers.
d) Processes necessary to effective CRM
In order to make CRM work effectively, there are five steps involved and firms have to
make sure that they follow them:
Collection and storing data: All the information that is provided by the customers is in
CRM system. In this way, a business can do better analysis of analysis geographic data and
demographic data that assist to better compete in the market. Data is usually taken from third
party sources such as past records, newspapers and many such things (Provost and Fawcett,
2013). For example, Hilton hotel has all the information about all the people who have made use
of the services in the system.
Building communication timeline: Select the most suitable time in which customers can
be contacted but it should be done after taking customer concern. By having effective
communication with the new customers, ventures could build up productive outcomes for
themselves. There are different type of preference that each of the people have and it is important
for the employees to select an appropriate time so that they will able develop strong relation with
customers.
Analysing sales data: There is a need to find most appropriate customers to which the
products and services of the company could be sold. (Brennan, Siebert and Williams, 2014). In
respect to focus on an advertisement, a business can demonstrate benefits towards their
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customers. It assists to satisfy them and identifying a point in the process to enhance
profitability. Hence, improvement in working practices could enhance CRM.
Making data accessible: The sales person should be provided with accurate information
regarding the status of the customer order (Fawcett, Ellram and Ogden, 2014). With the help of
knowing about orders, issues and payments data can be created that solve current issues quickly.
With the help of it better customer services could be provided. For example, Marriott hotel
provide information to their sales team about the email id of the customers so that they deliver
them information about the offers or services that are delivered by them.
Personalizing communication: As per the recent data collected, information can be
provided to customers so that they get to know the quality of the products. If there is a problem
with one customer, then it should also be seen that whether the same problem might affect other
customers as well. Hence, issues need to be addressed to satisfy the customers’ needs and
problems.
e) Role of internal staff in achieving effective CRM
There is a prominent role of internal staff with respect to effective CRM, such as:
Develop strategies: Internal stakeholders have direct interaction with customers so they
know better about the issues that are faced by them. In this context, they are effective enough to
develop appropriate strategies. They have proper understanding of issues or problems that are
faced by each of the service users. This way, it becomes favourable enough to develop strategies
in effective manner.
Reporting: All the information related to the products and services are provided by
internal stakeholders. Furthermore, it is an important to point that they have effective interaction
with top managers. It is the responsibility of employees to report managers if some issues are
encountered in providing customer services.
Feedback: Customers make use of the services that is why they know better about the
issues and problems with respect to them. Feedbacks are collected from customers so that issues
can be solved. Majority of the firms provide customers to provide feedback so that they will be
able to take up appropriate steps so that the performance level can be improved.
Offer choices: Within the organisation, it is very important to delegate the task. In this
aspect, most of the people are not appreciated with having work without any consent. With the
identification of business needs and goals, the performance of the venture could be enhanced
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(Lam, Cheung and Lau, 2013). Internal staff provide information about the offers that employees
can get and so they play vital role in developing positive perception within the mind of
customers.
Behave friendly to each customer: In order to determine effective results, it is very
important to behave friendly. When the internal environment is very good to make effective
results, the business can perform their function easily to earn more money. It is the role of
internal staff to show friendly behaviour towards their customers so that they could be retained
by the firm and feedbacks provided by them could be utilized in improving business
performance.
F) Role of external stakeholders in achieving effective CRM
The success of CRM depends on its acceptance with respect to external stakeholders. In
this context, one of the main types of external stakeholders as customers. The products are made
based on the demand from customers (Nguyen and Mutum, 2012). All the service that is
developed by the firm in relation with CRM should be accepted by external stakeholders. The
role of these stakeholders is determined as making changes in the services and system as per
their needs and requirements. Certain Roles have been defined which could be used to
implement CRM effectively at the workplace. These are discussed below:
Customers: They are the one who makes use of the services that are delivered by the
organization. It is important for the firm to make sure that they have proper CRM system in
which they proper collection of information about customers. This is effective enough to develop
a strong relationship. CRM can be effectively achieved when the firm is able to satisfy their
requirements (Fawcett, Ellram and Ogden, 2014). They are important for the firm, as per the role
of internal staffs, it is important that they understand them and deliver them services and
products accordingly.
Suppliers: They deliver raw materials to the organization so that the requirement of
customers can be met. When CRM is properly maintained, then it becomes helpful enough to
determine the quality that is delivered by them. As per internal staff, it requires to provide
adequate information to suppliers so that they deliver materials as per requirement of customers.
Acting in partnership: All the external stakeholders determine their function and
operations that are necessary for the fulfilment of objectives of each person. This kind of
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partnership is very important to bring new information regarding the business. As per the role of
internal staff, it is important that partners are provided with information in accordance with
growth and profitability made.
BIBLIOGRAPHY
http://relationshipwithcustomer.blogspot.in/2014/04/role-of-external-stakeholders-in_6862.html
http://www.crmsearch.com/5-steps-to-crm.php
https://www.salesforce.com/hub/crm/benefits-of-crm/
http://www.sooperarticles.com/technology-articles/software-articles/key-aspects-crm-s-use-
successful-business-878395.html
http://ezinearticles.com/?Aspects-of-CRM-(Customer-Relationship-Management)&id=1778924
TASK 2
Loyalty schemes can be determined as a reward program that is offered by the
organization to those customers who make frequent purchases. There are different types of
loyalty schemes that are provided by companies among which two of them are as follows: Simple point system: It is a type of system in which customers just need to buy the
products of an organization and for each purchase they made, there will be points. When
customers achieve a particular target, then they get rewards (Zakaria, Rahman, and
Osman, 2014). Benefits to new customers: In this type of loyalty scheme, in which company would
provide them benefits when they make use of the service or purchase the product for the
first time.
 Providing customer reward: In this way, the company can demonstrate new customer
base with developing business. When the company demonstrate their outcomes for a new
customer, they are creating benefits to bring another new people at the workplace. It
tends to attract people who have potential to enhance the productivity of the business
(Fawcett, Ellram and Ogden, 2014).
a) How the loyalty schemes chose gain information about customers
The loyalty schemes are helpful for the organization to get information about the
customers. According to the loyalty system, following are the steps that could be used to provide
information about service users:
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As per one of the loyalty scheme, when purchase are made frequently, then customers get
to earn points and they are given with reward offers. The organization gets the information about
the total time's purchases that are made by them. This enables to know the loyalty of customers
towards the particular product or service. Moreover, it also enables the firm to know about the
most frequently purchased goods. There are specific cards that are introduced by organizations in
which points after every purchase are added up. (Rosenbröijer, 2014). At the time of issuing the
card, all the necessary information about the customer is collected such as address, mobile
number, name, etc. When they make purchases, then the card adds up point and when it reaches
the point that is set by the company, then it enables the customers to get benefited and to get
rewards. This system can boost up the morale of customers depending on the type of rewards
provided by the organization. Gift vouchers and discount coupons could also be provided to the
customer so that they get attracted towards the brand (Fawcett, Ellram and Ogden, 2014).
On the other hand, another type of loyalty schemes are lucky draw in which customers
are provided with the opportunity to get holiday package for certain days. This is helpful enough
to boost up the moral of customers. When new and potential customers get to know about the
scheme offered by the company, then they make purchases and they make frequent purchases to
get into loyalty scheme. When a product is bought by customers for the first time, then
organization provide them with additional benefits in term of rewards (Kumar and Reinartz,
2012). All the information is collected in which it includes name, address, mobile number, etc.
This enables the organization to get the opportunity to convey other information related to the
products and services. With the help of running competitions, customers can also enhance
winning chances of the company through buying more from the workplace.
b) How the information gained informs marketing and customer service policy
Information that is gained by the organization is highly beneficial for the management as
it enables the firm in a number of ways. All the information collected is recorded in the customer
relationship management system. Information like name, mobile number, etc is provided by this
system and they get the opportunity to call them or email them so that they can make them
informed about the services of the organization. When customers become the regular purchaser,
then marketing and customer service will call them and provide them with information related to
the promotional schemes that they come up with (Kishor and Nagamani, 2015). Furthermore, the
information is helpful in designing future promotional campaigns of the company. Information
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regarding convenient timings at which customers can be contacted is very helpful. It helps in
contacting the customer at the appropriate time so that he/she gets interested in the information
and new products of the company.
When the enterprise collects information about customer relationship, following elements
need to be included:
Order forms: Order form demonstrate specific dictation of product and services in the
company is unable to supply at a time. Thus, effective results could be obtained in the context of
buyer's information with the help of it. With time there are many changes that has taken place in
which use of online purchases has increased. To get the order, it includes form to be filled up and
this is helpful enough for the firm to get their personal information.
Recording complaints: Customer complaints is one of the ways through which company can
improve its products. It is important for the organization to record the complaints of its
customers with their permission. When organizational employee listens to this complaints
carefully, they will able to respond to them in an effective manner (Fawcett, Ellram and Ogden,
2014).
Customer rewards program: The organisation can also collect information through implements
reward program for the customer. In this way, details can be provided through promotional
activities that help to businesses. On frequent basis, firms develop offer in which rewards are
provided and this is done on the basis of lucky draw. This is helpful enough to get information
about customers.
Below given are the loyalty schemes that are followed by the firm:
Loyalty card: There is a different type of strategies that are implemented by the
organization in order to attract customers. In this context, a loyalty card is helpful for the firm to
get personal information and they type purchases that are made by them. In addition to this,
customers get discounts depending upon a number of purchases that are made by them.
Similarly, Tesco also makes use of such loyalty cards and they are highly beneficial for
customers and in maintaining strong relationships.
Community-based programmes: These are the type of program which is provided to
customers who live in a particular region. For example, the type of benefits that individuals
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provided by a firm will be different when compared with the benefits of programs that are
delivered by the same firm at the different region.
BIBLIOGRAPHY
http://asasedu.com/customer-relationship-management/
http://pubsonline.informs.org/doi/pdf/10.1287/serv.3.2.158
https://www.informs.org/About-INFORMS/News-Room/Press-Releases/Customer-experience-
and-economy
https://www.business.qld.gov.au/running-business/consumer-laws/customer-service/customer-
information
TASK 3
a) Review of CRM in Tesco
Tesco is the second largest organization in the retail sector. They focus on providing their
customers with high-quality services and in maintaining good relationships. There is a different
type of CRM schemes that are implemented in the said organization. The overview of these
CRM related schemes is enlisted below:
 Tesco has done a partnership with organizations from various industries such as hotels,
gas, car hire facilities, etc.
 There are various family related schemes such as Tesco Baby, Tesco Kid Club, World of
Wine Club, etc.
 There are about 4 million variations for quarterly mailing which offers discounts.
 Ensures customers satisfaction.
 In Tesco, there are various products provides that are low in fat and sodium.
 Products produced which have free food allergies and dietary requirements.
 The dedicated range of products is providing to kids which have high fibre, fruits and
vegetable.
 Insight gain could also be acquired by analysing shopping patterns of the customers by
making use of marketing and retail programs.
There are different type of schemes that are applied by cited firm so that they will be able
to attract customers and develop strong customer base. Further, it is important for the business to
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make analysis of the work that are performance by them. They are able to understand the
requirements and to take up appropriate steps to raise the satisfaction level.
b) Proposed improvements to CRM processes
There are many areas in which CRM related improvements can be made by the
organization. This will enable the firm to develop a strong relationship with its customers. The
ways through which CRM can be improved is explained below:
Tracking customer behaviour: Management should appoint workers who observe their
customers so that they can develop a strong bond.
Keep data up to date: Various research studies have shown that customer’s tastes and
preferences change over a period of time (Bedarkar, Pandita and Saini, 2016). In this context, the
information that is recorded in the CRM system should be updated frequently.
These improvement are important as the preference of customer’s changes frequently.
Further, there are many other firms like Tesco that deliver their customers with similar set of
products and services. In order to be better from its competitors, it is important for the firm to
make improvements.
c) Proposed improvements to the role of staff in promoting customer relationships
Employees are the face of the organization as they have direct interaction with customers.
They are the ones who present the services to the customers so they better understand the issues
faced by them. The improvement in customer relationships can be made in following ways in
Tesco:
Easy CRM system: The software that is used by the organization is complex. In this
context, the firm should take steps with the help of which they will be able to make improvement
in the software and employees will be able to handle it effectively (Wang and Feng, 2012). This
will provide them with the opportunity to respond to customer requirements effectively and
efficiently.
Training: Proper training should be provided to employees so that they will be able to
understand their customers and a strong relationship can be maintained.
Track customer behaviour throughout the sales cycle: In this way, the company can
gather various types of data with prospects on social media. It provides assistance in gathering
varying kind of information and data (Goetsch and Davis, 2014).
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The rate of employee’s turnover is high at Tesco and so when they are provided with
proper training, then it becomes favourable enough to make sure that they perform with their full
efficiency. It is important for the business to make improvement in these area as the rate of
competition has increased. All focus on attracting customers and so when these areas are
improved, then Tesco will be able to raise their sales and profitability.
d) Plan for the implementation of improvements
The improvements suggested above can be implemented through the following ways: Hiring
professional: Professionals could be hired that assists into observing shopping patterns of the
customers and accordingly strategy could be planned for enhancing the sale of products (Zakaria,
Rahman and Osman, 2014). This will help in making employees understand about soft-wards of
CRM and observing the customers to develop a strong relationship. With the help of
professional guidance, the company can improve its CRM system in an effective manner. In this
way, the company will able to increase its profitability and productivity.
Frequent interaction: There should be frequent interaction with customers as the taste
and preference of customer changes frequently and certain improvements are identified, then
they can be incorporated. Interaction is a very important element to implement new strategies.
With the help of effective communication, productive and quality outcomes could be generated.
It enhances the relationship with customers and helps the company to attain a sustainable
competitive advantage (Wu and Lu, 2012).
The strategies explained above can help the company Tesco to enhance and improve its
current CRM system. It will take up to 6 months’ time to cover all these areas. Further, there
professional who will support in implementing the plan in effective manner. Key employees will
be selected and they are will be provided with the main cause of selecting them and they can set
of goals with the help of which it can be achieved.
BIBLIOGRAPHY
http://www.cio.com/article/2376209/enterprise-software/9-ways-to-improve-your-company-s-
crm-system.html
http://mashable.com/2013/12/05/crm-tips/#9wysfXYoPkqA
https://webcache.googleusercontent.com/search?q=cache:xjCquKNFDyUJ:https://
www.linkedin.com/pulse/20140708094216-35338609-12-ways-to-improve-your-company-s-
crm-system+&cd=2&hl=en&ct=clnk&gl=in
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http://crmsystems.expertmarket.co.uk/tesco-crm-case-study
CONCLUSION
From this report, it can be concluded that customer relationship management is very
helpful for the firm as it enables the organization to enhance customer satisfaction and they are
transformed from regular customers to loyal customers. It enables to provide them with effective
information about the needs and requirements of customers. This system is also beneficial in
holding customers with the brand. Furthermore, if employees will be trained well, they will able
to understand their customer's problems in a better way and will able to satisfy them in an
appropriate manner.
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REFERENCES
Books and Journals
Bedarkar, M., Pandita, D. and Saini, R., 2016. Examining the Impact of Organizational Culture
on Customer Centricity in Organizations: An Analysis. Prabandhan: Indian Journal of
Management. 9(2). pp.19-28.
Brennan, J. J., Siebert, W. H.. and Williams, J. R., Buzztable, Inc., 2014. A system for customer
relationship management using wireless communication. U.S. Patent 8,897,810.
Fawcett, S. E., Ellram, L. M. and Ogden, J.A., 2014. Supply chain management: from vision to
implementation. London: Pearson.
Goetsch, D. L. and Davis, S. B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: Pearson.
Khodakarami, F. and Chan, Y. E., 2014. Exploring the role of customer relationship
management (CRM) systems in customer knowledge creation. Information &
Management. 51(1). pp.27-42.
Kishor, N. R. and Nagamani, K., 2015. Customer relationship management in Indian Banking
Sector. ACADEMICIA: An International Multidisciplinary Research Journal. 5(7).
pp.74-82.
Kumar, V. and Reinartz, W., 2012. Customer relationship management: Concept, strategy, and
tools. Springer Science & Business Media.
Lam, A. Y., Cheung, R. and Lau, M. M., 2013. The influence of Internet-based customer
relationship management on customer loyalty. Contemporary Management Research.
9(4). p.419.
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.
Provost, F. and Fawcett, T., 2013. Data science and its relationship to big data and data-driven
decision making. Big Data. 1(1). pp.51-59.
Rosenbröijer, C. J., 2014. Customer Relationship Management and business analytics: a lead
nurturing approach. Proceedings of DYNAA. 5(1).
Wang, Y. and Feng, H., 2012. Customer relationship management capabilities: Measurement,
antecedents and consequences. Management Decision. 50(1). pp.115-129.
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Wu, S. I. and Lu, C. L., 2012. The relationship between CRM, RM, and business performance: A
study of the hotel industry in Taiwan. International Journal of Hospitality Management.
31(1). pp.276-285.
Zakaria, I., Rahman, B. A., and Osman, M. A. F., 2014. The Relationship between Loyalty
Program, Customer Satisfaction and Customer Loyalty in Retail Industry: A Case Study.
Procedia-Social and Behavioral Sciences. 129. pp.23-30.
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