Customer Loyalty and CRM Strategies

This assignment examines the relationship between Customer Relationship Management (CRM) strategies and customer loyalty. It requires students to analyze relevant research articles, explore the mediating role of loyalty, and evaluate the effectiveness of various CRM triggers in fostering customer retention. The analysis should consider factors such as competitive advantage, customer satisfaction, and the influence of e-CRM and M-CRM characteristics on customer loyalty.

Managing a
Successful Business
Project

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 :Background , Aims, Objective,Rationale of project .......................................................1
P2: Cost , Scope, time, quality, communication, risk and resources......................................2
P3: Work break down structure and Gantt chart ..................................................................7
P4: Conducting Research ...................................................................................................10
P5: Data analysis .................................................................................................................12
P6: Communicating the findings:PPT .................................................................................18
P7: Findings .........................................................................................................................18
CONCLUSION..............................................................................................................................18
REFERENCES .............................................................................................................................19

INTRODUCTION
The way in which companies conduct business has been revolutionized due to use of
business technology (Jung and Jung, 2016.). In order to develop competitive advantage in the
economic market place the businesses make use of computers, servers, websites and personal
digital products. In the planning process the owners of small business should consider
implementing technology. This will help the owners to create operations by making use of the
best technology that is available.
Nisa is a small-scale retail sector in UK. A new digital technology that is customer
relationship management will implement in this company that will help the business to develop
strong customer relationship and manage all the relevant information of customer and data.
P1 :Background , Aims, Objective,Rationale of project
Background – Within marketing sales business unit of major firm nowadays CRM is widely
accepted. Against the competitors on the growing competitive global economy most of the
forms are trying to focus on delivering between customer value. In the world of e- business CRM
can help firms to succeed as a strategy to optimise lifetime value of customers (Larsson and
Viitaoja, 2017). At a faster speed the firms are expected to grow that have adopted CRM as
corporate strategy in comparison with firms who have not adopted CRM. In order to discover a
competitive advantage on which to base prospects of business of longevity SME's are
increasingly seeking to implement CRM.
Aims – “To implement Customer- Relationship Management in the company Nisa”
Objective
 To implement CRM in the company Nisa
 To focus on customer retention
 To provide more satisfaction among customers and discover new customers
 To implement this new technology in the company till the end of December 2018
Rationale – The implementation of CRM is important for the company as in the business
whether small or large scale digital technology is being used in order to gain competitive
advantage from rival companies and also to expand their business. This implementation of CRM
will help the company to provide better serves to customers and also the procedures and
processes will be highlighted by CRM for understanding a customer (Rehman and Hassan,
2016)
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P2: Cost , Scope, time, quality, communication, risk and resources
Cost -
Cost to implement a CRM
Manpower Consultants Total price
Selection $2,770 $1 $2,771
Implementing $1,100 $4000 $51000
Training to employees $500 $3000 $3,500
Dependency of
business
$2400 $2400 $4800
Selection – The man hours is also been spent on the process of selecting a customer
management system. In order to select the system the companies often spent years and thousand
of man hours. It is been estimated that a minimum of 94 hours of internal manpower for a team
to 11 to 20 users.
Implementation- This cost will need 38 hours of internal manpower and about $4,000 in
consulting fees.
Training – To the current staff that is working the training need to be given in order to make
them aware about this new software.
Scope- The implementation of this new technology in the business will be useful as it will be
help the business to improve relations with existing customers and also discover new
customers .For the retail business, the customers are very important as the sales of the company
depends mainly on them. The customer service will be enhanced due to CRM implementation.
In identifying potential customers CRM system are useful. The track of existing client are been
kept by them and to determine the people to target for maximum client return it can be used by
them (Shaw and Hamilton, 2016). Also in the company Nisa the better and effective
communication channel will developed by implementing CRM system. In the organization
technological integration such as websites and interactive voice response system can make work
easier. The various ways of communication will be provided to the customers. An effective
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communication in the company will also be build as customer data can be shared in different
departments remotely.
This new technology will be implemented in the company Nisa till the end of December
2018.All the resources that will be needed for its implementation that is labor, train to staff,
hardware , software and other equipment etc will be given. The purpose of this project is to
provide customer with better serves and also to enhance the customer loyalty.
Time – The time period that is been given estimated for this project is till the end of December
2018.Till this time the training will be given to staff at regular basis. Also the hardware and
software requirements that will be needed for this project will be set up and the appropriate
vendors will also be selected for the implementation of CRM.
Quality – In order to determine the quality of project all the processes and activities are
needed .As per the need of customers the project need to be implemented. In order to deliver the
high quality project the three key quality management concepts are there they are as follows-:
Customer – satisfaction – In project's quality customer satisfaction is a key measure. If the needs
if the customer are not fulfilled in context with the project then the quality of project is
considered as poor. So, the implementation of CRM in the company need to be of high-quality
keeping in mind the needs and requirements of customers. In order to make the project
successful the expectation of customers also need to be managed (Zhang, van Doorn and
Leeflang, 2014.).
Prevention over inspection – In order to neglect failures and money that is spent or after the
project the cost of quality included money that is sent during project. In the cost of conformance
comes prevention cost such as training, documents process, equipment etc and in cost of non
conformance comes internal failure cost such as network, scrap etc.
Continuous improvement - In order to enhance the product , services or processes over time
continuous improvement is a ongoing effort. This is been used to neglect the repetition of the
same issues in another projects.
Communication – The communication methods and polices are been used in accordance of this
company by the project team. The communication of stakeholders, the technologies that is
available and the polices and standards of the organization is needed. By the company a share
point platform will be maintained in which all he updates, and communication related to this
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project will be done. At any period the stakeholders , senior manager can have access to data and
communication of project(Bhat and Darz, 2016).
Type of
communic
ation
Communi
cation
objective
Medium Frequency Audience Owner Deliverabl
e
Format
Meetings The
interaction
between
project
and
project
team takes
place.
The
objective
and aims
of project
is
discussed
The
medium is
face to
face
Once it
should be
done
Stakehold
ers,
project
sponsors
Project
manager
Minute
meetings
The soft
copy is
there on
share point
Team
meetings
The status
of project
is reviews
In
conference
hall or
face to
face it can
be done
On a week
basis it is
done
Project
team
Project
manager
Meeting
schedule
Soft copy
is there on
share point
Projects
status
report
Issues,
cost etc
are been
E-mail is
the mode
of
Monthly Stakehold
ers,
project
Project
manger
Schedule
for project
status
Soft copy
is there on
share point
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discussed communic
ation
team report
Risk – In order to start the risk identification process the project manager looks through
the lessons that are learned documents from previous projects (Hollensen, 2015.). There can be a
number of risk that can faced during the implementation of CRM implementation. They are as
follows-:
1. Lack of customer engagement – It is not so easy to get the clients or end users to stay
involved. When the project starts everyone is exited but after some time it is complex to
maintain the same level of excitement.
Management strategy
 At the beginning of the project engage the customers and by using the written charter
outline the objective and success criteria of the project .
 The need of user engagement need to be stress from the start of the project.
2. Scope change - The key to success to any project is scope of any project.
Management strategy
 With customer frequent effective communication(Dubihlela and Molise-Khosa, 2014. )
 The time need to be invested to learn high level business needs of customers.
3. Post release performance issues
Management strategy
 The complete performance testing need to be done
 The load balancing should be tested and implemented .
4. Staff experience
With CRM project the staff is having little or no experience and lacks experience
Management strategy
 To give proper training to these staff at regular basis
5. Size of budget
In order to complete this project the budget is insufficient
Management strategy
 To allocate the budget as per the requirements of this project
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Resources – The resources that will be used in order to implement CRM in Nisa are as follows-:
People – A group of team will be required to work on this new project. The training will be given
to them on how to make use of this new technology. The project manager need to be there in the
implementation of this project. All the works such allocation of resources, estimation of budget
and timeline etc will be done by them.
Funding – The funds will be required by the company in order to implement this CRM system .It
is the duty of financial department to manage the fund for this new project.
Software – The software requirements for implementing this windows Vista ,7, RT & 8.1 ,10
.Hardware requirements
 Availability of space- As decided by system admin CRM requires a much database space.
 The RAM that is needed should be minimum 512 MB RAM
 In order to scan bar code and QR code camera auto focus is needed (Carmen and Marius,
2016.).
 In order to track activities, updating addresses , navigating etc GPS location system is
needed.
P3: Work break down structure and Gantt chart
Work break down structure – In order to produce the product or deliverable the work breakdown
structure defined the work that is required to done. The final deliverable or project is represented
by the top level .To the same level all the elements of the work breakdown need not to defined.
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Illustration 1: Work Force Structure
(Source:Work force Structure , 2017 .)
.
Gantt chart – The schedule of this project can be illustrated with the help of gantt chart. In order
to plan and schedule project gantt chats are useful. The resource needed, the time taken by
project etc can be assessed with the use of Gantt chart.
Task Name Duration Start Finish Predecessors
Research Project 1 day 25 January
2018
25 January
2018
Preparation 1 day 26 January
2018
26 January
2018 1
estimation of cost 1 day 23 January
2018
23 January
2018 1,2
Allocation of resources and
time 2 days 29 January
2018
30 January
2018 2
Implementation 1 day 31 January
2018
31 January
2018 2,3
Reviewing literature 5 days 01 February
2018
07 February
2018 3
Research methodologies 1 day 08 February
2018
08 February
2018 3
Cost calculation 2 days 12 February
2018
13 February
2018 3,2
Interpretation 5 days 15 February 21 February 3
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2018 2018
Analyzation of results 2 days 21 February
2018
22 February
2018 4
Project Closer 1 day? 22 February
2018
22 February
2018 2
Conclusion 1 day 26 February
2018
26 February
2018 4,1
Documentation 2 days 27 February
2018
28 February
2018 2,1
Submission of report 1 day 01 March
2018
01 March
2018 2
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P4: Conducting Research
This will help to conduct the research on implementation of CRM in an efficient ways. On this
topic the knowledge can be gained and various methods and techniques will be used to do this
research. Some of these techniques are as follows-:
Research Approach – The focus on aims is be made through research approach. The inductive
and deductive are two types of research approach. In this the inductive approach will be used as
proper understanding need to be gained on implementation of CRM (Bukhari and Kazi, 2016).
Research philosophy – The interpretivism and positivism are two types of research
philosophy .In this research the interpretivism will be used as in this the qualitative research will
be done and this fits best for qualitative research. And also in order to achieve the objective this
research will be useful.
Research design – In order to develop insight knowledge this research will make use of
descriptive design. It will define an opinion, attitude or behavior that is been hold by a group of
people on a given area .
Data collection- The primary and secondary data collection are two primary sources through
which data can be collected .In this research both of these data collection techniques is been
used. In order to collect primary data questioner was distributed randomly in the sample size.
However in order to conduct secondary data collection surveys, new paper, internet etc are been
used(Bhat and Darz, 2016)
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Sample size-In order to conduct this research the sample size of about 10 mangers were taken
who are currently working in Nisa to find out the advantages of using CRM in business. This
sample size of managers were selected randomly.
Data analysis – The data can be analyzed in two forms that is qualitative and quantitative. The
qualitative research was used in this as questionnaire was distributed among 10 managers.
Ethical consideration – In this research that was done no information about any participant was
disclosed and the right to freedom was given to each one to preset their view in the questionnaire
that was made.
Questionnaire
Name -
Age-
E-mail -
Gender -
Contact number-
1. Do you agree that the implementation of CRM will enhance the relationship with customers
 Agree
 Strongly agree
 Both agree and disagree
 Disagree
 Strongly disagree
2. Do you think that the loyalty of customer will be more due to use of CRM system
 Yes
 No
 Maybe
3. Do agree that the sales of the company will also increase due to this?
 Agree
 Strongly agree
 Both agree and disagree
 Disagree
 Strongly disagree
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4. Do you think that within the company the better communication will also developed due to
CRM implementation.
 Yes
 No
 Maybe
5. Do you agree that with use of CRM all the needs of customers will be identified and based on
this product will be developed by the company.
 Agree
 Strongly agree
 Both agree and disagree
 Disagree
 Strongly disagree
6. Are you satisfied with the plan that is been made by company Nisa to implement CRM ?
 Yes
 No
 Maybe
P5: Data analysis
Theme 1: Majority of managers think that customer relationship will improve due to
implementation of CRM
Do you agree that the implementation of
CRM will enhance the relationship with
customers
Frequency
Agree
Strongly agree
Both agree and disagree
Disagree
Strongly disagree
2
7
1
0
0
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Interpretation – In the research that is been done it is found that most of the managers think that
the better experience to customers will be given through the implementation of CRM as all the
needs and requirements of customers will be founded and they will be given the top most
priority.
Theme 2:Majority of managers think that customer retaliation and loyalty will be more towards
the company
Do you think that the loyalty of customer
will be more due to use of CRM system
Frequency
 Yes
 No
 Maybe
7
1
2
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Interpretation –About 7 managers thinks that loyalty of customers will be more than keeping in
mind the preference of customers the product will be manufactured by the company. So, this will
give customer satisfaction that their needs and expectation are take seriously by the company.
The loyalty of customers will be more towards such companies or organization where the
customer are considered as an essential asset.
Theme 3:Majority of managers think that business will also gain profit from this
Do agree that the sales of the company will
also increase due to this?
Frequency
 Agree
 Strongly agree
 Both agree and disagree
 Disagree
 Strongly disagree
2
5
1
1
1
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Interpretation – About 5 managers strongly believe that the sales of the company will also more
as the store will be visited by customers more and this will help the company to gain profit and
also to expand its business on a broader platform.
Theme 4:Majority of managers think that communication will also be effective in the company
due to CRM systems
Do you think that within the company the
better communication will also developed due
to CRM implementation.
Frequency
Yes
No
Maybe
5
2
3
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Interpretation – About 5 mangers think that in the company there will be better and effective
commutation as the data of customers will be shared in between different departments tat will
enable to work as a team. The better services to the customers will be given through this.
Theme 5:Majority of managers think that as per the needs of customers the products will be
developed by the company
Do you agree that with use of CRM all the
needs of customers will be identified and
based on this product will be developed by
the company.
Frequency
 Agree
 Strongly agree
 Both agree and disagree
 Disagree
 Strongly disagree
3
5
1
1
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Interpretation – About 5 managers strongly agree that all the needs of customers will be
identified through the use of their software. Based on the ends identified the product will be
developed thus producing more customer satisfaction and also from rival companies competitive
advantages will also be gained.
Theme 6:Majority of managers are happy with this plan of implementing CRM in the company
Are you satisfied with the plan that is been
made by company Nisa to implement
CRM ?
Frequency
 Yes
 No
 Maybe
6
2
3
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Interpretation –- About 6 managers said that they are happy with the plan that is been made by
the company as this will help their business to grow on a broader platform and also with use of
digital technology in the business a lot of their time will be saved.
P6: Communicating the findings:PPT
P7: Findings
I think that the company Nisa will be able to expand its business and also gain
competitive advantages from other retail companies die to implementation of CRM. As this
software will help to find out the needs and preferences of customers and based on this the
products will be manufactures .The customer retention will be more and also they will stay loyal
to company event in crisis . I think that more and more of such technology that such as social
media can be used by company Nisa in order to promote its series and business. They are also
not so costly and will be in the budget.
CONCLUSION
Thus summing up the above report it can be concluded that new digital technology that is
CRM is been implemented by Nisa. The time that is been estimated for its completion is end of
2018.The resources such as hardware, people, software etc will be needed. The project manager
will be allocate the resources needed for this project implementation. The questionnaire was
made in order to conduct this research..
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REFERENCES
Books and journals
Bhat, S.A. and Darzi, M.A., 2016. Customer relationship managemen.t: An approach to
competitive advantage in the banking sector by exploring the mediational role of loyalty.
International Journal of Bank Marketing, 34(3), pp.388-410.
Bukhari, A.N. and Kazi, R., 2016. CRM triggers effectiveness through Customer Selection
Orientation, Business Cycle Orientation, Cross-Functional Integration and Dual Value
Creation: Myth or Reality. Journal of Marketing Management, 4(1), pp.163-171.
Carmen, R. and Marius, S., 2016. Customer Loyalty Using Customer Relationship Management.
Management Strategies Journal, 31(1), pp.285-288.
Dubihlela, J. and Molise-Khosa, P., 2014. Impact of e-CRM implementation on customer loyalty,
customer retention and customer profitability for hoteliers along the Vaal Meander of
South Africa. Mediterranean Journal of Social Sciences, 5(16), p.175.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson Education.
Jung, C.H. and Jung, D.H., 2016. The Effects of M-CRM Characteristics, Market Orientation on
Customer Loyalty and the Moderating Role of Relationship Length in Insurance
Companies. The Journal of the Korea Contents Association, 16(6), pp..726-738.
Larsson, A. and Viitaoja, Y., 2017. Building customer loyalty in digital banking: A study of bank
staff’s perspectives on the challenges of digital CRM and loyalty. International Journal of
Bank Marketing, 35(6), pp.858-877.
Rehman, C.A. and Hassan, S.Q.U., 2016. The Impact of Competitive Advantage, Customer
Satisfaction and Customer Relationship Management on Customer Loyalty: An
Empirical Analysis of Banking Sector of Pakistan. Singaporean Journal of Business,
Economics and Management Studies, 5(3), pp.31-40.
Shaw, C. and Hamilton, R., 2016. Imperative 7: Realize the Only Way to Build Customer
Loyalty Is through Customer Memories. In The Intuitive Customer (pp. 141-159).
Palgrave Macmillan UK.
Zhang, S.S., van Doorn, J. and Leeflang, P.S., 2014. Does the importance of value, brand and
relationship equity for cu.stomer loyalty differ between Eastern and Western cultures?.
International Business Review, 23(1), pp.284-292.
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