Customer Relationship Management: Tourism Holdings Ltd.

This study analyzes the Customer Relationship Management (CRM) of Tourism Holdings Ltd. and its impact on stakeholders, importance of information technology in CRM, elements of CRM, factors influencing the success of CRM, value creation through CRM, and benefits of CRM in an organization.

Running Head: CUSTOMER RELATIONSHIP MANAGEMENT: TOURISM HOLDINGS LTD.
Customer Relationship Management: Tourism Holdings Ltd.
Name of the Student:
Name of the University:
Author Note:

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Introduction
The study help to analyse the Customer Relationship Management (CRM) of the Tourism
Holdings Ltd. The company possess headquarter in Auckland, New Zealand and was establish in
the year 1996. The company is considered as one of the largest tourism company of New Zealand.
The company also operate in Australian market as well. The stakeholder of the company are mainly
Motek and Kiwi Experience Backpackers. There are three division in which the company mainly
deals in and they are namely, manufacturing, rental and sales.
The study will help to analyse the benefits and competitive strategy of the company by
introducing Customer Relationship Management (CRM) system along with that importance of
CRM. It also help to analyse the impact on stakeholders, importance of information technology in
CRM. The study focuses on the elements of CRM, factors influence the success of CRM along with
that value creation through CRM and benefits of CRM in an organisation.
Question 1(a): Benefits and Competitive Strategy of THL’s new CRM System
Benefits of Sugar CRM
Customer relationship management (CRM) enables the organisation to acquire as well as
retain the customers for the organisation to operate in the market (Olson, Johansson & De
Carvalho, 2018). This type of system enables the organisation to gather information which is
valuable for the organisation in the long run. The three benefits of the sugar CRM in Tourism
Holdings Ltd. are:
 Sugar CRM helps the organisation to improve the collaboration process as it enables
every department in an organisation to work efficiently as the data they want are
automatically generated in the software of the Sugar CRM (SugarCRM, 2019).
For example: In case of Tourism Holdings Ltd. the sugar CRM enables them to quote
and sales where all the quote as well as contracts are created automatically in pdf

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format. Along with that helps in after sales process automation where after sale services
are provided to the customers to improve the collaboration with them. This helps the
departments to work efficiently.
 The software provide great visibility to the organisation so that they can compare sales
number to improve the performance of the organisation (SugarCRM, 2019).
For example: In case of Tourism Holdings Ltd. the sugar CRM provide assistance to the
pipeline management where detail information related to sales can be view along with
that help in the vehicle life cycle as well as the jobs sheets and scheduling process. This
all help the organisation to improve the sales figure for the company.
 This software enables the organisation to maintain customer’s data in one place, which
help the organisation to provide customer satisfaction (SugarCRM, 2019).
For example: In case of Tourism Holdings Ltd. the sugar CRM software help the
organisation to deliver customer satisfaction by providing them after sales service. This
is important for the company to sustain in the market as they operate in three different
industry in Australian as well as New Zealand market.
Question 1(b): Importance of Customer Relationship Management
Customer relationship management (CRM) is important for all the company who is
manufacturing goods and services as only marketing mix such as product, price, place and
promotion alone cannot help the organisation to gain popularity as well as profit from the market.
Therefore, the company need to adopt some effective strategy in their business plan (Huang et al.,
2016). In recent times, CRM has become an important part for the organisation to work effectively
and efficiently in the market.

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CRM provides all information to the employees so that an effective strategy can be adopted
to enhance the performance as well as sales number of the organisation. The decision making
process is also somewhat dependent on the CRM (Cooper, 2017).
It help to build the strategy as per customer’s needs and wants, which automatically
enhance the organisation goodwill in the market, if they are able to deliver as per the market need
in timely manner (Cusumano, Kahl & Suarez, 2015).
In case of Tourism Holdings Ltd. as the company is dealing in three areas namely
manufacturing as well as rental along with that sales of the cars and motorhome. Therefore, it is
important for the organisation to adopt an effective and efficient CRM in their business model,
which will automatically help them to grow in the market and to earn huge amount of profit along
with brand image.
Question 2(a): Impact on Stakeholders
The company need to educate the stakeholders who are involve in their business to provide
goods and services to the customers. This is important as the implementation of the CRM might
negatively put an impact on the stakeholders as they are not aware of the benefits of the CRM
(Milani, 2019). This will automatically decrease the level of productivity in the stakeholders and
the company might suffer from a huge loss. This is because stakeholders find it an additional
burden if they are not properly informed about the benefits of the CRM. This automatically limits
the success rate of the CRM in the business model and less profit or no profit is been earned in the
process (Sousa-Zomer, Magalhães, Zancul & Cauchick-Miguel, 2018).
The main stakeholders of the Tourism Holdings Ltd. are Motek as well as Kiwi Experience
Backpackers. If the company do not educate them about the new CRM methods that are being
implemented in the business model of the organisation, it will negatively put an effect on the
stakeholders and they will be demotivated. This will automatically jeopardise the image of the
organisation in the Australian market as well as New Zealand market as they are the ones who

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provide service to the customers of Tourism Holdings Ltd. in this two market on their behalf.
Therefore, it is important for the company to look into the matter so that the company can be able
to earn profit from the market. Hence, it can be marked as important when the company is adopting
CRM in their business model they need to provide proper information as well as educate them in it
to increase their productivity and motivate them to work hard, so both the stakeholders as well as
the company can make profit in the market (Linner et al., 2017).
Question 2(b): Role and Importance of Information Technology in CRM
In any business information technology plays an important role to uplift the status of the
organisation in the market. With the help of the information technology the communication
between the company with the customers as well as with the stakeholders become easy and
effective in nature (Legner et al., 2017). Therefore, it can be said that an effective communication is
important to run a business successfully and overcome the crisis that might arise in the
organisation.
When technology and CRM both come together it create a strategy that is more effective in
nature and helps the organisation to earn profit along with that help them to achieve their desired
target. It also provide an additional advantage to the company with updated information regarding
the market as well as the customers so that the company can compete in the market and can also
eliminate the competition who are there in the market (Agnihotri, Trainor, Itani & Rodriguez,
2017). The information technology helps the CRM to know the needs and wants of the customers
so that it can be met by the organisation. This also helps to judge whether the customers are
satisfied with the services as well as products which is being sold to them by the company
(Harrigan, Soutar, Choudhury & Lowe, 2015).
In case of the Tourism Holdings Ltd., CloudTech who are the largest information
technology company in New Zealand provides SugarCRM support to the organisation. This will
automatically enhance the company’s performance in many aspects which will help them to grow

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in the market. The company’s CRM are developed as well as implemented and manage by the
CloudTech. Therefore, it can be said that the company will be able to manage the customers as well
as grow in the market along with that effective communication can be establish in the process,
which will enhance the organisation performance in the industry.
Question 2(c): Three Elements based on the Building Blocks of the CRM System
There are eight elements based on the building blocks of the CRM system namely, vision;
strategy; value customer experience; organisational collaboration; processes along with
information; technology and metrics (Goutas, Sutanto & Aldarbesti, 2016). This eight blocks help
the organisation to formulate the business model which is quite effective in nature. This also help
the organisation to service quality service to the customers in the process. It is important for the
organisation to build their business plan according to the eight elements that are there in the
building blocks of CRM system. This also help the organisation to establish an effective CRM
strategy (Shukla & Pattnaik, 2019).
In case of the Tourism Holdings Ltd., the three elements from the bu7ilding block which is
being used by the organisation are namely, value customer experience, which help the organisation
to attract more number of customers by providing them quality service. As the company deals in
cars and also in three different genre such as sales, rental and manufacturing. Therefore, it is
important for the organisation to provide value to the customer’s experience. The next element is
the organisational collaboration where the company possess stakeholders who provide service to
the customers on their behalf. This will help the company to grow in the market and to provide
value t0o the customer money as well as experience. The third element is information, which is
important for the organisation to gather information so that they can provide better services to the
customers and also expand in the market and can earn profit in the process. This are the three
elements use by the organisation to grow and to expand in the market and to earn profit in the
process.

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Question 2(d): Factors influence the Success of CRM System
There are eight factors in the CRM system to achieve success in the process. This eight
factors helps the organisation to grow as well as to earn huge amount of profit from the market.
This also enable the CRM system to work in an effective way (Shao, Feng & Hu, 2016). The eight
factors which help the CRM system to become successful are namely, top management
commitment and support; define and communicate CRM strategy; culture change;
interdepartmental integration along with that skilful staff; key information on customer and manage
IT structure as well as customer involvement. This are the elements that need to be kept in mind by
the organisation to grow as well as to earn profit from the market (Šebjan, Bobek & Tominc, 2016).
The factors are somewhat important for the organisation to look after as it might help the
organisation to attract more number of customers in the market. This factors are the key to achieve
success in the market for the organisation. The success rate can also be measured in the process
(Farhan, Abed & Ellatif, 2018).
The Tourism Holdings Ltd. have adopted three factors from the factors of CRM system
which help the organisation to grow in the market and to earn huge amount of profit from it. The
three factors are namely, define and communicate CRM strategy, this is important for the
organisation as the stakeholders are the ones who provide services to the customers on behalf of the
company to some extent so the communication need to be there between the company and its
stakeholders. The next factors is skilful staff as the company possess the skilful staff who enhance
the company performance and help the organisation to earn huge amount of profit from the market
by selling their product to the customers. This is also a factor for the success of the CRM strategy
that have been adopted by the organisation. The third factor which the company look after is key
information on customers, this is quite important for the organisation. This helped the organisation
to know the customer’s needs and wants and produce their product accordingly. Therefore, it is
important for the organisation to sustain in the market. This are the three elements that have been

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look into by the company and this automatically help the company top grow in Australia as well as
in New Zealand.
Ways to Create Value through CRM
The company who provide service to the customers are mainly follow the customer centric
business strategy as customers are the key elements for the organisation. The company mainly
provides value to the customers through different ways to satisfy the customers and to provide
value to the money of the customers (Cambra-Fierro, Centeno, Olavarria & Vazquez-Carrasco,
2017). This will automatically help the organisation to grow as well as earn huge customer base
from the market. This will ultimately help the organisation to grow in the market along with that
help them to sustain in it. The four ways through which the company can create value to the
customers are:
 The business is customer centric and treat customers as the important factor for the
organisation. Customers are given priority by the company as they are the ones from
whom the revenue is generated by the organisation. Therefore, best quality services are
provided to them by the organisation so that they can retain the customers. This will
ultimately help the organisation to grow as well as to earn huge sum of money from the
market (Hidayanti, Herman & Farida, 2018).
 The company gives priority to the customer needs and wants and produce the product
or extend service according to that, this help the organisation to grow and to earn huge
amount of money from the market. This also help the organisation to expand in the
market as they are providing value to the customers.
 With the help of the CRM the organisation build relationship with the customers to
gain their trust and provide them better service. This automatically help the organisation
to attract more number of customers in the process. This is so as the customers are given

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value by the organisation (Sigala, 2016). Therefore, it automatically help the
organisation to attract more customers towards their brand.
 The company also formulate their plan as well as strategy by keeping in mind about
the customers. This help the organisation to produce those products which are beneficial
for the organisation in the expansion process and help them to grow in the market.
This are the four factors that the Tourism Holdings Ltd. kept in mind while building the
business structure so that they can earn huge number of customers from the market. This ultimately
help the organisation to grow as well as to9 expand in the market and to earn huge amount of profit
in the process.
Benefits of CRM System
The organisation Tourism Holdings Ltd. is a customer centric company. They mainly deals
with the customers as they provide rental car as well as sale cars and manufacture them in the
market of New Zealand as well as Australia. The benefits of CRM system are:
 CRM helps to improve the organisation structure by provide them with proper
information. This help the organisation to grow in the market.
 It evaluates the performance of the employees as all the required information are
provided within a shorter period of time. This auto0matically improve the performance
of the organisation as well as the individual.
 The customer service is also improve in the process. This helps the organisation to earn
huge sum of profit along with that help them to grab huge number of customers towards
their products.
 CRM helps the employee to know about their task they need to perform on a regular
basis which automatically help them to perform well in the organisation, which benefit
them in the long run.

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 CRM improves the analytical data and help the employee as well as organisation to
evaluate the data so that an effective report can be created. This automatically help the
organisation to provide better quality service to the customers and attract more number
of customers towards their brand.

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