Business and Management: Royal Mail CRM Analysis and Strategic Report

This report provides an executive summary and detailed analysis of Royal Mail's customer relationship management (CRM) strategy. It begins with an introduction to CRM and Royal Mail, followed by a PESTLE analysis examining the political, economic, social, technological, environmental, and legal factors influencing the business. The report then delves into the benefits of CRM for Royal Mail, including enhanced customer service, a strong customer base, increased sales and revenue, and support for marketing activities. It discusses how CRM impacts decision-making within the company. The report concludes with recommendations for improving CRM within the firm, offering valuable insights into customer relationship management in the context of a major postal service provider.

CONTEMPORARY
DEVELOPMENTS IN
BUSINESS AND
MANAGEMENT

EXECUTIVE SUMMARY
The report has highlighted that external environment generally create both negative as well as
positive impact on the performance of an organization. As there are many factor which bring the
positive impact but at the same time also generally bring the negative impact also in an
organization. After that the report highlight that CRM In the firm bring variety of the benefit
for the firm, as it enhance customer service and customer base of organization. Report in the end
highlight recommendation to improve customer relationship management in the firm.

Table of Contents
INTRODUCTION...........................................................................................................................4
PART 1............................................................................................................................................4
PESTLE..................................................................................................................................4
PART 2............................................................................................................................................7
Analysis of Customer relationship management....................................................................7
Response of customer relationship management.................................................................10
Area of improvement............................................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
APPENDIX....................................................................................................................................16
Company profile...................................................................................................................16

INTRODUCTION
Customer relationship management (CRM ) is the approach of the firm in which they
generally interact with the various customer in market place with the sole motive of building
good sort of relationship with the customer in an organization. Main focus of this function is to
retain the customer and drives sales of the company. Royal mail is a postal service provider UK
organization. It was establishing in the year 1516. The report highlights the external
environment of an organization with the help of the PESTLE analysis of an organization. After
that organization highlights the CRM of an organization and variants of benefit which is brought
by the CRM on the operation of the company. After that the report highlights the variants of
responses which is made by the firm to maintain CRM at the marketplace. In the end report
explain variants of recommendation regarding enhancing the level of CRM for an organization at
the marketplace.
PART 1
PESTLE
Figure: PESTEL analysis
(Source: PESTLE analysis. 2018)

Pestle is the framework which is used at workplace, for the purpose of analyzing the external
environment of an organization. This framework consider various factor such as political,
Economic, Social, technological, Environmental and legal factor.
Political factor: Political factor are the factor which consider the variants of political
decision in the nation which generally impact the performance of Royal mail (Grill, 2019).
Looking at the political condition of UK, It can be said that it is very favorable for the Royal
mail. There is political stability in the UK in the recent time, this helps the Royal mail in
continuing with the same policy of the cited firm for longer period of time at work place. Also as
political party of the nation promote privatization in the nation, it also helps organization in
getting variety of the variants of political support in the nation. At the same time, political
decision of UK government to Leave EU in the face of Brexit, has negative impact perfornce of
business. As royal mail has to plan range of various activity to overcome issue which has created
by the Brexit. This has eventually impacted the efficiency of the business in long run. Biggest
issue which is faced by the firm due to Brexit is the variants of restriction regarding dealing in
the neighboring country for the firm. Organization consider some factor related to political
factor that are. Military invasion, level of corruption, trading partners, wage legislation and
employee benefits.
Economic Factor: Economic factor are the direct and indirect determinants of variants of
economy performance, which can impact the company performance in long run. As economy of
UK is one of the stronger economy at the global level (Nyadzayo and Khajehzadeh, 2016). As a
result, the inflation and interest rate is very favorable. This provides a very crucial support to the
firm at the time of raising funds for variants of operation at the workplace. Looking at the
negative impact of the Economic factor, it can be said that this factor impact the firm very
adversely. As rate of petrol and diesel In the firm is too high, which eventually generally
enhance the cost of the company in the long run. This have a very negative impact on the
performance of the firm in long run. As petrol and diesel is one of the main resource which is
require by Royal mail in their operation. As transportation is the key to success for Royal mail.
Also, increasing rate of water usage in nation is also impacting the firm performance, as
organization has to incurs more amount of cost in procuring water for the firm. Factor which are
consider under economic factor are unemployment rate, Discretionary rate, inflation-deflation

rate and competitive advantage of a company. Generally, this factor is considering by the firm to
plan various future activity at workplace in long run of business.
Social Factor: This factor consider variants of society culture and variants of way of
doing thing In the firm impact environment. Various belief and attitude of population in the
nation generally play a great role in how Royal Mail generally understand the customer at the
marketplace. This eventually force or drive the company to manage various services of the
company in market place. Social factor analysis of an organization, it can be interpreted that
this factor does not impact the firm that adversely. Some factor which are generally consider by
the firm at the time of looking at the social factor are, Demographic and skill level (Phelps,
2019). Class structure, hierarchy and power, Education level and culture promoted in UK.
Technology Factor: It is one of the biggest factor which impact Royal mail the
business. As in the rapidly changing environment, it gets typically for the firm in understanding
the best technology which can be used by the firm to operate the variants of operation of the
business. As there are many variants of type of technology which are developed at the market.
This enhances the cost of the company, as company has to invest good amount of resources to
procure technology at the work place. Also this factor increase the competition in market place.
As all the company generally use various type of technology to carry out range of activity in
organization, which sometime enhance quality of their work at the workplace, which impact the
firm in long run of the business. Generally Royal mail consider many technology factor in an
organization. That are technology impact of service offering, impact on the cost structure of an
organization, impact on the value chain structure, depreciation and rate of technology diffusion.
Environmental factor: Environment factor looks at the various environmental standards
and the norms of the environment which can impact the profitability or performance of the firm.
Weather is one of the biggest factor which generally have negative impact on the business
performance in long run. As change in the weather condition of the nation generally delay range
of transportation medium for the firm (Rahimi and Kozak, 2017). This eventually create the
situation where organization is not able to provide the offering of the company on time to the
customer in market place. This generally build negative image of the company in market.
Pollution and use of environment friendly product are other factor which generally impact the
performance of business. As a result, organization generally uses recycled product at workplace
as a material to packaged variants of courier at workplace. Some factor which are consider by

Royal Mail from environmental factor are. Law related to variants of environmental policy,
waste management in an organization, variants of regulation related to the pollution and
endangered species in the nation.
Legal Factor: Legal factor are the various factor which looks at protecting the company
from various legal policy of the nation. This factor is also not that favorable for Royal Mail, as
compiling with the variants of legal policy In the firm requires organization to variety of the
permission to carry out variants of operation in the business. This eventually impact the
efficiency of the business, as this costs a good amount of time for the firm. This also impact the
cost structure of the firm, as compiling law like minimum wage rate generally enhance the cost
of the company. There are many legal factor which are also consider by the firm at the time of
implying legal factor that are. Antitrust law, Discrimination law, copy rights, patent and
consumer protection law of an organization (Soltani and Navimipour, 2016). Also they have to
make sure that they look at the employee of the firm by compiling activity with, Employment
law, health and safety law and Data protection.
PART 2
Analysis of Customer relationship management
Customer Relationship management, as the name suggest is the activity of the firm which
looks at managing good sort of relationship with the customer in market place. This is a simple
approach of the firm, which look at managing the various interaction of the customer in an
organization. Generally, in this function of the firm, organization uses the data about the various
customer and try to use the data in the way in the firm that it helps organization in building good
relationship with the customer in market place.

Figure: Customer Relationship management
(Source: What is CRM ? 2019)
CRM bring variety of the benefit to Royal Mail. Some of the benefit which is brought by
CRM are as follows:
Customer base: Maintaining good sort of CRM at workplace, support the cited company
in maintaining good sort of customer base in market place, as CRM help organization in
enhancing level of customer service in the firm. This passes on the good message to all the
customer at the market place, which builds a good level of trust among the customer in market
place and builds good customer base of the company (Orenga-Roglá and Chalmeta, 2016).
Having good customer base of the company provides a good hand of support to the firm at the
time of introducing new product of the company in market. As all the consumer in market place
are ready to accept the variants of offering of the company.
Enhance customer service: CRM also help Royal mail in enhancing the level of
customer service in an organization. Reason behind the same is that customer service at
workplace help the firm in getting better knowledge about expectation of customer in market
place. This help company in planning variants of activity at workplace in a way that it helps the
firm in developing the product which can satisfy the need of the customer in an organization.

Also CRM provide crucial help for the company in understanding the customer which can be
best targeted by the firm. This eventually gives organization an idea about the service which they
have to develop to target that sort of customer in market place.
Enhance Sales and Revenue: As sales and revenue of the firm is positively linked with
the customer service and number of customer of the company. Maintaining customer relationship
at workplace support the cited company in improving the sales of the company, which eventually
enhance revenue of organization. As CRM provide crucial help for the company in
manufacturing the product according to the need and selected customer base of the company, it
eventually results in improving the sales of the company, improving sales of the company also
result in improving the revenue of the company in long run.
Provides good support to marketing activity: CRM at workplace support the cited
company in providing good hand of support to the variants of marketing activity of on
organization. As marketing department of Royal mail get a support in understanding the
customer base which can be targeted by the firm in long run (AULIANA, ALEXANDRI and
ARIFIANTI, 2019). Also, CRM provide crucial help for the company in planning variants of
type of promotional activity in the firm. This also provide a good hand of support for the firm in
understanding the variants of distribution channel which can be used by the firm to transact with
the variants of customer in an organization.
Impact of CRM on decision making
CRM also impact the decision making of Royal Mail, as CRM provides better idea about
the current situation of the consumer in market place. These eventually impact the decision
making of the firm. As organization drive the decision in market placeplace in a way that it help
organization in satisfying the need of the customer efficiently. Generally, organization analysis
the variants of situation of the firm and in regards to the same make variants of decision in the
firm
Also, as organization deal in heavily competitive market of the firm, CRM also provide
very crucial support to company in taking defensive decision at workplace. As CRM provide
very crucial support to company in forecasting future uncertainty of the firm. This eventually
provide very crucial support to company in taking variants of defensive decision at workplace.
So that Royal mail at workplace can defend variety of the future challenges which organization
may faces in the future.

CRM also support the cited company in taking variety of the decision regarding the usage
of resources at workplace. As with the help of CRM organization is able to understand the
variants of requirement of the resources at workplace, which eventually support the cited
company in making variants of decision at workplace, which can provide crucial help for the
company in taking variants of decision regarding allocation of the resources in an organization.
This support the cited company in optimum utilization of the variants of resources in an
organization.
Response of customer relationship management
Royal mail at workplace response the CRM very positively. As they conduct the market
research at workplace on continues basis, this support the cited company in understanding the
variants of need of the customer more proficiently in the firm. In regards to the same
organization try to make the services in a way in the firm that they are able to touch good
number of the customer in market place. At the same time this activity which is being applied by
the firm eventually enhance the cost of the company in long run. As it has been seen in the past
that conducting market research in an organization eventually enhance the cost of the company
in long run.
To maintain customer relationship at workplace, organization takes the feedback of all
the customer after providing services to the firm. This eventually provide crucial help for the
company in understanding the variants of expectation of the consumer and in regards to the
same organization generally plan variants of activity in the way that it helps organization in
maintaining good customer relation at the marketplace (Rahimi, 2017). At the same time this
response from the firm end, sometime create the situation in organization in which they find it
difficult to understand real motivation point of variants of customer. As it has seen that all the
consumer or customer in the firm generally have variants of sort of needs and requirement in an
organization.
Royal mail also uses CRM software in the workplace to maintain good sort of customer
relationship in an organization. This software support the cited company in analysis the variants
of information regarding the customer very efficiently in the firm. As CRM software collect the
variants of information of the customer together at one place, which eventually helps the firm in
understanding a providing good hand of support to variants of employee in market place (Baran
and Galka, 2016). At the same time this type of response some time complex the variants of

activity at workplace as CRM requires a variants of type of the synchronization before showing
the result at workplace, this eventually creates the situation in which finding out the simple
solution of the problem always require an organization to go through long procedure in an
organization.
Communication is the another way through which Royal Mail in market generally make a
good sort of relationship with the variants of consumer in market place. In this they fix a
communication with the customer by the help of variants of communication tool at workplace.
This support the cited company in solving the issue of the customer very efficiently at
workplace. At the same time this also enhance the cost of the company as procuring variants of
sort of communication tool in the firm require organization to invest good amount of money in
market place. This also sometime create the situation where organization has to cut down some
activity due to implement cost saving in an organization.
Rewarding and providing variants of discount to the customer in market place is the
another way through which organization generally build good customer relationship in market
place. In this organization provide good sort of discount to the customer in market place. This
provide crucial help for the company in building good relationship with the customer of the
market. At the same time this also impact the profit margin of the company, as organization has
to give some sort of profit margin in the firm to attract the eye of variants of customer in market
place (Rahimi and Gunlu, 2016). This eventually impact the revenue of the business also in an
organization.
Area of improvement
With the above analysis it is clear that it is very necessary for Royal Mail that they have
to improve the CRM in order to retain consumers. Hence, for this some of the recommendation
for improvement of CRM system within Royal Mail are as follows-
The first area of improvement for Royal Mail is that they must make the use of CRM
software easy and simple for the employees (Buttle and Maklan, 2019). This is majorly because
of the fact that is the software will be difficult to understand and operate then the employees will
not be able to effectively use the software. This is pertaining to the reason that if employee will
not be able to use the software then they will not be able to cater to requirements of consumers.
Thus, for this effective training must be provided to the employees of Royal Mail. Thus, for this

Royal Mail can hire some professional or expert in field of CRM and arrange for training and
learning sessions for employees.
Another area of improvement is tracking the changes in the preferences and taste of
consumers on a continuous basis. This is majorly because of the reason that the changes in the
taste and preferences of consumers are very frequent and fast and it is necessary for Royal Mail
to keep an eye over these changes. It is necessary because of the fact that competition is high and
it is very essential to keep the consumers happy and satisfied so that they do not switch over to
other competitors.
One more recommendation for Royal Mail in improving its CRM strategies is to be
social it means that they must connect its CRM system with the variants of social media
platforms. This is necessary because of the fact that these social media will help Royal Mail in
getting data of consumers with help of these social media platforms (5 ways to improve your
CRM strategy, 2017). Also, with help of these social media platforms Royal Mail can access the
data relating to their position with in market place and the position among the competitors with
help of these social media platforms.
In addition to this another recommendation is to integrate all other department with the
CRM software. This is majorly because of the reason that in managing the consumers it is the
responsibility of all the department of Royal Mail. Hence, it is necessary for Royal Mail to
integrate all the variants of department with CRM software. This is necessary as due to this
integration all the departments of Royal Mail will have the data relating to the consumers. Thus,
this data will help the department in formulating the policies and activities for catering to the
needs of consumers in successful manner.
Another area of improvement for Royal Mail is to priorities the consumers as there are
many variants of types of consumers. Thus, this prioritization will help Royal Mail to decide
which set of consumers is more important than others. Hence, this will enable CRM software to
just focus on the high priority consumers at first and rest of the consumers at last (Rajola, 2019).
CONCLUSION
The above report conclude that external environment offer some sort of challenges for
the firm to be overcomes, as variants of forces of external environment offer variety of the
variants of challenges. To overcome the same challenges Royal Mail in an organization generally
consider the variety of the variants of factor which help them in preparing variants of strategy to