CRM in M&S: Strategy and Implementation

This presentation discusses the customer relationship management (CRM) strategy and implementation in Marks and Spencer (M&S). It covers the advantages and disadvantages of CRM and provides recommendations for successful implementation. The presentation also includes a PESTEL analysis of M&S and an overview of M&S's business performance.

Knowledge management and information system
strategy

Marks and Spencer
M&S is a leading British multinational retailer which is headquartered in Westminster, London. The mission of
the company is to provide high quality cloths, home ware and food products at competitive and affordable
prices so that large market share can be captured by delivering good value for the money invested by the
customers.

Business position of M&S

Interpretation
 According to the above BCG MATRIX, it can be seen that, M&S
cloths products for men and women, lingerie and night wear grab a
larger market share of the country.
 While, currently, its food products have a greater opportunities
available for the future growth but still, present market share is low.
 On the contrary, children's wear clothing has less market
opportunities to grow and have less market share as well.

PESTEL analysis of M&S

Plan A

Interpretation
 Political: Governmental rules and regulations regarding taxation, tariff, labour policies,
industry investment etc. impact M&S in different ways. In East Europe, liberalization policy
had been implemented in which government allows retail firms to start their operation
across distinct countries across the globe. Moreover, free trade agreements and several
health legislation regarding food products need to be consider by M&S to ensure fair
practices by complying with the political laws.
 Economic: In this, customer spending, their income, inflation, material cost, demographic
factors etc. impact M&S. Rising income of the people enhance customer spendings and as a
result, industry market demand has been increased. Through this, M&S became able to
serve larger customer base and enhanced its performance.
 Social: Social factors mainly includes customers shopping behaviour, fashion trends,
lifestyle, consumer preference etc. In the present age, consumer needs and desires are
changing rapidly hence, it is essential for the M&S to address that what consumer demand
and thereby deliver services accordingly.

Contd.
 Technological: In UK retail industry, automation, use of advanced technologies,
investment in research and development activities etc. comprises the technological
factors. It brings necessity for M&S to upgrade its technology by using tools like e-
commerce, m-commerce, online services, CRM, SCM etc. so that it can offer
qualitative services to the global customer.
 Legal: It includes laws and regulations like customer health and safety legislation,
antitrust regulations etc. Moreover, use of eco-friendly material and standard
regulations for the food production need to be strictly followed by M&S to assure
consumer safety.
 Environmental: M&S needs to maintain a safe environment by complying with the
environmental legislation and waste management. Recycling and reuse etc. manage
M&S's scarp and waste to a great extent. Moreover, it launched Plan A in 2007, to
maintain a healthy environment and become the most sustainable retailer.

M&S's business performance

Customer relationship Management
 CRM is a information technological system which allows enterprises regardless their size to
organize, automate and synchronize consumers at each and every facet of customer
interaction.
 In other words, it refers to the business practices, strategies and technologies which an
organization use in order to manage and examine customer interaction and data throughout
the life cycle.
 The primary goal of CRM is to retain existing customers and attract new customers as well.
By this, firms will be able to increase their turnover, market share and yield as well. It create
life long relationship with the consumers by ensuring consistent consumer interaction.

CRM in M&S
 With reference to M&S, it introduced Siebel CRM strategy in order to
strengthen the relationship by determining the consumer needs, wants and
desires and offer services accordingly.
 Its CRM slogan is that “customers are always and completely right” which
brings consumer attention towards M&S.
 The main focus of its CRM strategy is that what customer need, and what
we need to do to satisfy them?
 M&S use various tools and techniques like websites, direct mail, live chats
etc. in its customer engagement. Moreover, in the present times, use of
social networking sites such as social CRM also has been increasing rapidly
to examine and analyse consumer satisfaction and complaints.

M&S websites

E-CRM

Advantage of CRM
 After implementation of CRM, Marks and Spencer became able to understand customer need, wants and
desires and thereby organize operations accordingly. Through this, M&S delivered expected quality of goods
and services to the global consumer base and maximize its operational effectiveness and efficiency.
 It also enable M&S to determine the fluctuations or changes in consumer preference and demand over time and
accordingly, daily operations or activities had been adjusted.
 E-CRM strategy, Social CRM, website creation, e-commerce and m-commerce gain larger traffic of the
consumers. Through this, M&S improved its quality of the products and services to meet customers beyond
expectations. This in turn, it takes benefits of larger turnover, return, retain existing customers, attract potential
customers and increase their satisfaction level. As a result, M&S developed increase repetitive purchasing and
enhance loyalty. It creates a strong brand value and goodwill of M&S in the retail industry.
 CRM implementation facilitates M&S in planning and controlling routine business activities and operations by
reconciling demand and supply.. In this regard, CRM provide assistance to the firm to evaluate current as well
as future trends and monitor evolution of demand over the time.

Disadvanatage of CRM
 Lack of commitment by M&S's employees is one of the most important reasons of
failure of CRM. The reason behind this is adoption of customer-oriented approach
may need to change organization culture. However, if employees do not accept such
changes than CRM may lead to consumer dissatisfaction and eventually loss of
revenue.
 CRM mainly focuses on retention of existing customer base rather than attracting
potential customers, which is also a limitation of it.
 Effective communication is the base for the successful implementation of CRM.
Thus, poor communication in M&S may lead to failure of the CRM software.
 Legal aspects such as confidentiality and privacy and ethical issues also need to be
considered in order to develop a strong relationship with the product users. For
instance, M&S need to follow Data Protection Act principles in order to govern
information processing.

Recommendation
 In order to implement CRM successfully, it is the primarily need to adopt it by all the
personnel of the firm. Thus, CRM training plays a major role in the success of CRM. M&S
need to pay focus on conducting training sessions for the workers and thereby implement
CRM in an effective manner. Through providing training to the workers, M&S can increase
employee efficiency.
 Integration of CRM with social media platform is also a better way to evaluate customer
requirement and resolve issues and problems. Along with this, in the present times, mobile
device became an essential tool for clients. Henceforth, M&S needs to give first priority to
the mobile CRM. Cloud based CRM through the use of smartphones, android and tablet
devices allows firm to keep in touch with the consumers at any time. It not only helps to
increase customer satisfaction but also encourage workers productivity to a major extent.
Further, it encourage supplier collaboration and decline operational cost and increase
business return.

Contd.
 M&S needs to pay focus on frustrated customers through collecting feedbacks
from them. By gathering clients feedbacks and post-purchase responses, managers
will be able to take decisions to resolve their issues, difficulties or problems. As a
result, more effective services can be provided in the future period, which in turn,
surely increase consumer satisfaction.
 Consistently interaction with the clients develop a positive consumer experience.
Follow-up the customer requirement and address negative responses provide
benefits to increase their satisfaction. Moreover, the use of Microsoft Dynamics
also enable M&S to strong the relationship with the service users.

REFERENCES
Mohammad, A. A., Rashid, B. and Tahir, S., 2013. Assessing the influence of customer
relationship management (CRM) dimensions on organization performance: an
empirical study in the hotel industry. Journal of Hospitality and Tourism
Technology. 4(3). pp.228-247.
Muther, A., 2012. Customer relationship management: electronic customer care in the
new economy. Springer.
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.

Thank You!