CRM Implementation in Retail: A Strategic Analysis

Desklib offers solved assignments and past papers to help students succeed.

Slide 1 Introduction
 Consumer relationship management is one of the essential software used to mange
customers
 This study will mainly analyses the strategy formulation and the benefits of the CRM
 The main Issues regarding strategy and technology will be discussed
In the modern world of Business, the importance of Customer Relationship Management is not
only essential, but also integral to the various operations for any business organisation. Customer
Relationship Management or CRM is crucial for industrial sectors due to the various benefits that
it provides to the sectors. In the retail sector, the importance of CRM is unprecedented due to the
fact that in retail industry, CRM is used to build positive relationship with the customers which
in turn helps to contribute to their revenue generation as well as profitability (Bahri-Ammari and
Nusair, 2015).
Slide 2: Concept of CRM
 CRM is the effective management of the customer relationship by the company
 In the retail industry, CRM is extremely essential for the revenue generation,
profitability, and growth of the companies
The customer relationship is one of the most important and sophisticated software’s that help to
manage the total consumer interaction of an organisation in an efficient manner. In the words of
Reicher, and Szeghegyi, (2015), the CRM is the consumer relationship management that uses the
database management and the data analysis tool to effectively manage the consumer retention in
the different sectors like the retail and telecom industry. Moreover, the top management of the

organisation uses the CRM software to effectively make a decision that results in the
enhancement of the sales growth in the organisation. However, on the contrary, it is being
expressed by Kubina, and Lendel, (2015), The CRM software is tech-savvy software and during
the implementation of the software there arises some technological problems.
Slide 3 Strategy formulations in CRM
 One of the major issue in strategy is the lack of coordination between the IT organisation
and the organisation
 Capacity building trainings are essential to implement the CRM
 One of the essential material is formulation of road map on an efficient way
The strategies formulation is one of the most important requirements that help the retail
organisation to effectively implement the program in a prominent way. In the words of
Smallwood, (2014), the major strategy taken by the organisation is the formulation of an
effective road map that helps in the implementation of the CRM software. Most of the retail
organisation depends on the IT companies to effectively manage and set up the CRM softwares
in an efficient manner. One of the major issues is the lack of coordination among the IT
companies and the retail organisation. Due to the lack of coordination, there is a problem
regarding implementation as there occur error in the technological process. In the words of the
Williams, (2014), one of the major issues is that effective project manager is needed to
effectively coordinate among the IT organisation and the retail organisation so the
implementation process goes in a smooth manner. It is very hard to find managers who are tech-
savvy as well as having an excellent managerial skill that becomes one of the major issues in the
strategy for implementation of the CRM software in practice. For example one of the major

examples is the use of the CRM by the Marks and Spencer’s who faced difficulty due to in-
effective coordination with the IT Company due to the lack of competent managers.
Slide 4 Issues in strategy formulation of CRM
 Main issue present is the in competency of the staffs to effectively deal with the CRM
software
 Effective project managers are scare those might manage and coordinate between the
retail organisation and IT Company to implement CRM in an efficient manner.
 One of the major issue is that lack of communication among the detriment
In the words of Sulaiman, Abdullah, and Ridzuan, (2014), one of the major issues that occur in
the implementation of the CRM software in the retail organization is that the effective training
for the employees is sometimes not formulated by the employer. Due to the inadequate training,,
the employees do not develop proper competencies to perform the data analysis and database
management. Due to this error in the process occurs and decision making sometimes gets
affected due to this kind of errors in the strategy. In the words of Mandina, (2014), the
coordination among the IT company and the retail organization should is one of the most
significant components on which the whole implementation strategy of the CRM is dependent.
Sometimes it is observed that complex application is designed in the CRM software by the IT
Company to enhance the efficiency of consumer management on the other hand, in reality, is
seen that it becomes too complex for the retail worker to work on that particular software
platform. This becomes one of the most important strategic issues for the implementation of
CRM software. It is suggested by Hosseinianzadeh, (2015), that one of the major that capacity
building program is one of the major strategies that is essential to mitigate the issue of

implementing CRM in the retail market. These are the major issues in the strategy formulation of
the CRM
Slide 5: Benefits of CRM implementation
 Enhancement of the consumer service and management of consumers
 Increasing the efficiency of the decision making process
 Automation of the process is increased
A customer is the main and most valuable asset of a company. Hence, Customer Relationship
Management is a very important aspect of any organisation especially retail companies. A
company obtains several benefits from a proper and efficient Customer Relationship
Management. It is very important to invest in an efficient Customer Relationship Management
tool because it plays an important role in increasing the level of customer satisfaction. In the
words of Blumberg, (2016), It basically helps in identifying and understanding the demands of
the clients for the successful running of the organisation in the global market. The various
benefits of an efficient CRM software that helps the organisation to flourish.
The first benefit is that it makes the organisation an improved informational organisation. It is
important to know the customers of an organisation very well. A company is in an advantageous
position if it knows the customers very well. This will also help the organisation to provide a
positive experience to the customers that will lead to the success of the company. As opined by
Kohtamäki and Farmer, (2017), the most important thing is to identify, document and record
every action and step taken by the customers while the process of interaction with then
organisation. In order to conduct this process efficiently, it is very important to have an
organisational advanced technology that can accurately measure and categorise the data of the

customers for a easy access in the future. Hence, CRM helps in managing customer data very
efficiently and stores a vast list of customer for the company to become successful and keep their
customers satisfied.
Slide 6: Benefits of CRM implementation… Cntd
 Helps in gathering effective consumer feedback
 Formulation of the discount measures and value added consumers
 Enhances brand image
It also helps in providing an enhanced way of communication. The CRM system makes it
feasible for employees to perform their best and provide their best level of service. This is
possible because they have an access to the data of the customers in a very organised and vivid
manner. If a customer has an issue with the services or the products of the organisation, he or she
then complains about the product. The data of his or her complain is automatically stored in the
system. As per the works of Cambra-Fierro et al., (2017), the CRM system is a centralized
system. Every time the data gets saved in the system, it can be accessed by all the employees.
Hence, this improves the connection in between the organisation and the customer as this helps
the employees to gain a better understanding of their problems and solve it efficiently. This is
because it is a cloud based software and system.
A CRM system also helps in the automation of everyday tasks. Selling products is not a very
easy task as it requires the customers to get convinced about a product and more importantly
about the company as a whole. Along with the details, there are many more tasks that need to be
fulfilled for the smooth functioning of the organisation every single day. In the words of San-
Martín et al., (2016), the whole system of CRM is designed to do multitasking and various tasks

fast and in an efficient manner. The whole process is automotive. Hence, it also decreases the
work load of the employees and saves a lot of time. The data and the tasks are efficient and
organised in nature. This is very beneficial as it helps the employees to give utmost importance
to the problems of the customers and to resolve them efficiently. This keeps the customers happy
and helps the organisation to create a good impression in the global market that brings in a lot of
profit.
Slide 7: Challenges of CRM implementation
 Challenges of CRM implementation include lack of suitable customer management
systems and softwares, lack of proper planning
 Poor management skills as well as unstable business operations can affect the CRM
implementations
The Customer Relationship Management software has proven to be very beneficial for most of
the companies and help them to work in a more efficient manner. As opined by Sigala, (2016),
all the companies are slowly implementing the CRM system as it is becoming very necessary in
order to stay in competition in the global market. However, there are various problems the
organisations face while implementing the Customer Relationship Management systems in the
organisation.
One major problem faced during the implementation of the CRM system is that the CRM
product does not fit in. Many a times it is a problem when the CRM product that cannot accept
various deployment options of model or it is not flexible enough for accepting customization that
will help the organisation flourish. According to Cadieux, (2016), is very problematic if the

CRM system is not up to date with the current trends of CRM in the market. This can act as a
barrier to the success of the company.
Slide 8: Challenges of CRM implementation… Cntd
 Issues in CRM implementation can affect the company and result in poor customer
satisfaction level
 For the retail industry, this can affect their revenue generation, profitability, and growth
Another very common problem faced is the lack of integration capabilities. It is very important
to integrate the CRM system for the system to become efficient in its work. It is important to
integrate with the current and existing IT systems. Lack of integration can be a big disadvantage
for the company and often becomes a burden for the employees. In the words of Erdil and
Öztürk, (2016), it is of utmost importance to plan the process of integration of the CRM system
in advance for the smooth running of the company.
Another very critical problem faced during the implementation of the CRM system is the lack of
user adoption and the lack of business insight. Many a times companies lack a strategy or plan on
how to make the CRM system available to every employee. The employees face a lot of problem
while adopting with the new system and its features. Hence, this can slow down the whole
working process of the company and the company can face losses in the market (Gujrati, 2016).
It is also important for the employees not to treat the system as data storage software and make
full use of it. Nevertheless, the companies fail to draw actionable insights from the systems.
Hence, this can be a big disadvantage for the company.

Slide 9: Technology Issues in used CRM implementation
 Technological tools such as Collaborative Chat, Intelligent Email, and Social Media are
used for CRM implementation
 These help to ensure good customer relationship with the company
From the research works of Domazet, Stošić, and Hanić (2016), it has been found that
technology plays an essential and integral part in the implementation of CRM in the retail
industry. The use of technology to implement CRM helps to provide with a variety of benefits
consisting of Omni channel management, personalized services for the customers, social
monitoring, product information, creating loyal customers, and many more. From the research
works of Navimipour and Soltani (2016), it has been found that there are a variety of
technological tools which can be effectively used in order to implement as well as enhance CRM
within the retail industry. Having technological tools in CRM helps to develop a two-way
interactive route for both the customers and the company where they would be able to
communicate with each other and relay information. The list of tools includes:
 Collaborative Chat: Collaborative chat is the process through which the customers are
able to communicate with the customer services of the company where discussions can
take place regarding product and shipping details. In many official company websites, the
means to do collaborative chat is available and in the context of retail industry,
companies such as Marks & Spencer, Tesco, and many similar organisations have their
own official website which is used in collaborative chat.
 Intelligent Email: Intelligent email is the service where the customers are able to receive
an email from the company automatically generated through the company’s computers.

Through the intelligent email process, the customers are able to send email to the
company for feedbacks or reports. In the context of retail industry, companies such as
Marks & Spencer, Tesco, and many similar organisations use intelligent emails to take
feedbacks and complaints as well as queries.
 Social Media: Social Media is another tool that is used by the retail industries to
communicate with the customers effectively. As pointed out by Orenga-Roglá and
Chalmeta (2016), many companies such as Tesco, Marks & Spencer, Waitrose, and many
more have their own official pages in social media sites such as Facebook, Twitter,
Instagram, and so on where the customers are able to communicate with the companies.
Slide 10: Technology Issues in used CRM implementation…Cntd
 Technological issues such as Data Breach and Leak and Poor Communication and
Feedback System can affect the CRM implementation
 For the retail industry, this can affect their revenue generation, profitability, and growth
From the research works of Domazet, Stošić, and Hanić (2016), it has been found that
technology plays an essential and integral part in the implementation of CRM in the retail
industry. The use of technology to implement CRM helps to provide with a variety of benefits
consisting of Omni channel management, personalized services for the customers, social
monitoring, product information, creating loyal customers, and many more. From the research
works of Navimipour and Soltani (2016), it has been found that there are a variety of
technological tools which can be effectively used in order to implement as well as enhance CRM
within the retail industry. Having technological tools in CRM helps to develop a two-way

interactive route for both the customers and the company where they would be able to
communicate with each other and relay information. The list of tools includes:
 Collaborative Chat: Collaborative chat is the process through which the customers are
able to communicate with the customer services of the company where discussions can
take place regarding product and shipping details. In many official company websites, the
means to do collaborative chat is available and in the context of retail industry,
companies such as Marks & Spencer, Tesco, and many similar organisations have their
own official website which is used in collaborative chat.
 Intelligent Email: Intelligent email is the service where the customers are able to receive
an email from the company automatically generated through the company’s computers.
Through the intelligent email process, the customers are able to send email to the
company for feedbacks or reports. In the context of retail industry, companies such as
Marks & Spencer, Tesco, and many similar organisations use intelligent emails to take
feedbacks and complaints as well as queries.
 Social Media: Social Media is another tool that is used by the retail industries to
communicate with the customers effectively. As pointed out by Orenga-Roglá and
Chalmeta (2016), many companies such as Tesco, Marks & Spencer, Waitrose, and many
more have their own official pages in social media sites such as Facebook, Twitter,
Instagram, and so on where the customers are able to communicate with the companies.
Slide 11: Conclusion
 The following study critically analyses and evaluates the issues of CRM implementation
within the retail industry.

 There are issues and problems, which can affect the implementation of CRM within the
retail industry as evidenced by the examples given.
The following study critically analyses and evaluates the issues associated with strategy,
benefits, challenges and technology when CRM is implemented within the retail industry. From
the study, it has been found that there are varieties of issues and problems which can affect the
implementation of CRM within the retail industry as evidenced by the examples given.