Analyzing and Enhancing Customer Relationship Management at Woolworths

This report examines customer relationship management (CRM) issues faced by the Australian retail giant, Woolworths. It identifies the need for Woolworths to become a customer-centric organization to remain competitive. The report discusses key issues such as stiff competition, the importance of customer feedback, and the need for digital transformation. It proposes solutions including re-engineering business processes, implementing digital technology, prioritizing customer-centric metrics, upgrading CRM software, improving store layout and product quality, and enhancing customer loyalty programs. The implementation section details strategies such as matching online prices, product innovation, competitive pricing, data analysis, and an improved loyalty system. The report also suggests methods for introducing these solutions to colleagues and concludes with a summary of how Woolworths can build customer relationships through information sharing, brand building, and corporate social responsibility.

Running head: CUSTOMER RELATIONSHIP MANAGEMENT
Name of the Student:
Name of the University:
Author’s Note:

1
CUSTOMER RELATIONSHIP MANAGEMENT
Executive Summary
This report deals with the question one or task one which analyzes customer relationship
management issue that the retail giant Woolworths must address to be a customer-centric
organization. The issue is explained in detail and a solution is proposed to resolve the issue. The
procedures for effective implementation of the solution are explained and the way the solution
will be introduced to colleagues delightfully is analyzed in a paragraph.

2
CUSTOMER RELATIONSHIP MANAGEMENT
Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Implementation of the proposed solution.....................................................................................5
Effective method of introducing the solution to colleagues........................................................7
Conclusion.......................................................................................................................................7
Reference Lists................................................................................................................................8

3
CUSTOMER RELATIONSHIP MANAGEMENT
Introduction
An existing problem in the workplace which is a retail sector company in Australia, The
Woolworths Company is the effective Customer Relationship management. Customers are major
stakeholders of business and they are often referred to be the King of Business. The tastes and
preferences of customers change continuously and should be constantly monitored by
companies. The cost to acquire new customers is hefty for business and five percent of customers
are only new customers for a business (Yi and Gong 2013). So business should focus on
customer relationship management to retain customers. The customer relationship management
process should be centralized using Information Systems software like Enterprise Resource
Planning software and Customer Relationship Management software. The automation of this
business process is essential for business for centralize management and to achieve accuracy and
efficiency (Choudhury and Harrigan 2014).
Discussion
Business has to continuously sustain in a competitive world. With increase in number of
competitors in the market, it has become important for business to identify the key issues and
analyze them. The key issue that business like retail sector in Australia faces is efficient
management of customer relationship. Retail sectors should continuously upgrade and improve
the quality of its products to satisfy customers. Feedback from customers should be taken to
understand the areas that do not satisfy them and requires improvement. Improvement can be
required in multiple arenas of business in retail sector like improvement in the store ambience
and layout where visual marketing team plays a major role, improvement in code of conduct and

4
CUSTOMER RELATIONSHIP MANAGEMENT
behavior of front line employees and their ability to deliver service to customers effectively and
efficiently and also there can be an improvement which is required in product design and quality.
Feedbacks should be taken from customers using both digital platform and in-store feedback
forms should be available for customers so that they can give their prompt feedback each time
they visit the stores (Khodakarami and Chan 2014).
Woolworth Supermarket is the Australian supermarket/ grocery store which holds eighty
percentage of the market share in Australia along with Coles Supermarket. Aldi is also a major
competitor of Woolworths. The supermarket giant must focus on being a customer centric
organization. One of the problems that the organization faces is that there is stiff competition in
the supermarket sector in Australia and for fast moving consumer goods customers spend very
less time in the buying process and switching costs for customers is really low. Customers can
easily switch to buy products from competitors like Aldi which also offers fresh stocks of good
quality at low cost (Juster 2015).
In order to sustain its business in the competitive supermarket sector, Woolworths must
be a customer centric organization. For effective management of Customer Relationship
Management, the retail giant must undertake the following steps-
1) Reengineer its business process and implement modern digital technology solutions
which will lead to effective data mining to track customer’s behavior. Also promoting itself on
digital platforms like Facebook, Twitter and Instagram using digital marketing tools will enable
Woolworths to capture and retain online customers (Trainor et al 2014).
2) Focus on ranking customer centric metrics on top priority for performance
measurement for front-line employees in stores. The front line employees play a major role in

5
CUSTOMER RELATIONSHIP MANAGEMENT
building relationship with customers. During the “moments of truth”, that is, front-line-
employees should be able to serve customers efficiently and timely and should follow a strict
code of conduct.
3) Customers data plays a vital role in customer relationship management and
Woolworths should have efficient real-time cloud solutions to handle sensitive data of
customers(Wei et al 2013).Data of customers should be protected from cyber theft. Customer
Relationship management software should be upgraded. Cloud-based CRM solutions can cost
the company more than in-house CRM solutions but it should be implemented by Woolworths
(Stein, Smith and Lancioni 2013).
4) The retail supermarket giant, Woolsworth must focus on store layout, store display and
there should be effective management of visual merchandising so that navigation within the store
becomes easy for customers and customers are engaged in the stores. Promotional activities
should be conducted within stores to engage customers.
5) The quality of the products should constantly be improved and Woolworths should
constantly focus on effective Supply Chain and logistics management and quality control to
provide customers with fresh stocks.
6) Customer loyalty program should be upgraded and managed effectively to retain
customers and to earn more revenue from repeat purchase done by loyal customers (Solomon
2014).
Implementation of the proposed solution and continuous improvement

6
CUSTOMER RELATIONSHIP MANAGEMENT
1) The Woolworths supermarket should capture online customers by matching online
price with store price. Click and collect locations and drive-through collection points must be
developed by the supermarket giant. Customers can save time by this model (Rafiq, Fulford and
Lu 2013).
2) Woolworths must constantly focus on innovation of products and take into
consideration customer’s feedback for improvement of its products. Woolworth already sells
private label brands like Woolworths Home brand, Select, Gold, Fresh and segments the market
to cater to special needs of customers by offering Macro Whole foods Market like gluten-free
products, organic products and products with lower salt and sugar levels. A new division for the
company should be set up which will focus on developing categories of new products. The
supermarket giant should also strengthen its partnership with suppliers to provide fresh and
timely stocks for customers (Jahanshani et al 2014).
3) Pricing strategy for Woolworths should be competitive so that customers do not switch
to competitors like Aldi and Coles. This can be achieved by implementing a Lean Retail model
and non-customer facing operational costs should be reduced. This might require slashing of jobs
in the back office sector (Saarijärvi, Karjaluoto and Kuusela 2013).
4) Woolworths should invest into data consultancy firms to handle customers’ data
effectively and analyze this data to reach meaningful conclusions. Decisions should be focusing
on customer’s perspective and their actual needs and behavior should be considered (Hollensen
2015).
5) There should be an improved loyalty system on the cards which can target customers
more effectively. Customers should be able to accumulate points for repeat purchase and should

7
CUSTOMER RELATIONSHIP MANAGEMENT
be able to redeem the points on their next purchase. Also the supermarket can tie-up with movie
theatres or eating outlets where customer can avail services at a discounted rate using loyalty
card of Woolworths (Yoo and Bai 2013).

8
CUSTOMER RELATIONSHIP MANAGEMENT
Effective method of introducing the solution to colleagues
Woolworths supermarket can introduce the solutions in team meetings and break the
resistance for change. The performance measurement scorecard of all employees should have
customer metrics at top of the rankings. Colleagues will enjoy the implementation of solutions
only when their inner values and vision is aligned with the company’s vision on being more
customers centric. The role of human resource team and the store managers are of paramount
importance to introduce the solutions to the employees of stores. Also, training and development
and change management programs should be conducted so that employees are able to handle the
Enterprise Resource Planning and in-store Customer Relationship Management software more
effectively.
Conclusion
Woolworths supermarket can focus on customer relationship management by sharing
information with customers. Information about the suppliers and food products should and how
they are creating perceived value to customers should be provided on the website of the company
as well as on other networking sites. Brand value should be created and stories and images of in-
store promotional activities and testimonials of loyal customers should be shared on social
networking sites. The Corporate Social Responsibility of a company helps creates a good image
about the company in minds of customers. Woolworths can do so by addressing concerns of the
environment like sustainable and healthy farming methods to grow quality food products. The
company should focus on building a relationship and connecting with the community of
Woolworths.

9
CUSTOMER RELATIONSHIP MANAGEMENT
Reference Lists
Choudhury, M.M. and Harrigan, P., 2014. CRM to social CRM: the integration of new
technologies into customer relationship management. Journal of Strategic Marketing, 22(2),
pp.149-176.
Hollensen, S., 2015. Marketing management: A relationship approach. Pearson
Education.
Jahanshani, A.A., Hajizadeh, G.M.A., Mirdhamadi, S.A., Nawaser, K. and Khaksar,
S.M.S., 2014. Study the effects of customer service and product quality on customer satisfaction
and loyalty.
Juster, F.T., 2015. Anticipations and purchases: An analysis of consumer behavior.
Princeton University Press.
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.
Rafiq, M., Fulford, H. and Lu, X., 2013. Building customer loyalty in online retailing:
The role of relationship quality. Journal of Marketing Management, 29(3-4), pp.494-517.
Saarijärvi, H., Karjaluoto, H. and Kuusela, H., 2013. Customer relationship management:
the evolving role of customer data. Marketing intelligence & planning, 31(6), pp.584-600.
Solomon, M.R., 2014. Consumer behavior: Buying, having, and being (Vol. 10). Upper
Saddle River, NJ: Prentice Hall.

10
CUSTOMER RELATIONSHIP MANAGEMENT
Stein, A.D., Smith, M.F. and Lancioni, R.A., 2013. The development and diffusion of
customer relationship management (CRM) intelligence in business-to-business
environments. Industrial Marketing Management, 42(6), pp.855-861.
Trainor, K.J., Andzulis, J.M., Rapp, A. and Agnihotri, R., 2014. Social media technology
usage and customer relationship performance: A capabilities-based examination of social
CRM. Journal of Business Research, 67(6), pp.1201-1208.
Wei, J.T., Lee, M.C., Chen, H.K. and Wu, H.H., 2013. Customer relationship
management in the hairdressing industry: An application of data mining techniques. Expert
Systems with Applications, 40(18), pp.7513-7518.
Yi, Y. and Gong, T., 2013. Customer value co-creation behavior: Scale development and
validation. Journal of Business Research, 66(9), pp.1279-1284.
Yoo, M. and Bai, B., 2013. Customer loyalty marketing research: A comparative
approach between hospitality and business journals. International Journal of Hospitality
Management, 33, pp.166-177.