The Impact of CRM on Customer Retention: Primark Case Study Analysis

This case study investigates the effect of customer relationship management (CRM) on customer retention within Primark, an Irish clothing and accessories company. The study aims to determine how Primark utilizes CRM strategies to retain customers, analyzing factors impacting customer relationships, evaluating the importance of customer retention on the company's performance, and identifying the link between CRM and customer retention. The research employs a mixed-methods approach, combining secondary data analysis with a survey of Primark customers. The findings reveal that Primark focuses on building strong customer relationships through loyalty schemes and offers. The study concludes with recommendations for enhancing Primark's CRM strategies to improve customer retention, emphasizing the importance of understanding customer needs and preferences to foster long-term loyalty. The case study also provides a detailed overview of Primark's background, its diverse product range, and its expansion strategies, highlighting the significance of CRM in maintaining a competitive advantage within the fast-fashion industry.

Case Study On Primark
“To determine the effect of customer relationship management on
customer retention in Primark”
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Table of Contents
CHAPTER 1....................................................................................................................................6
INTRODUCTION...........................................................................................................................6
1.1- Background to the study..................................................................................................6
1.2- Rationale behind the study..............................................................................................7
1.3 – Aim of the study............................................................................................................7
1.4- The objectives of the study.............................................................................................7
1.5- Research Questions.........................................................................................................8
1.6 – Problem Statement.........................................................................................................8
1.7- Literature review.............................................................................................................8
1.8- The methodology............................................................................................................8
1.9- The structure of the study................................................................................................9
1.10- Conclusion...................................................................................................................10
CHAPTER 2..................................................................................................................................11
CASE BRIEF AN REVELANT LITERATURE..........................................................................11
2.1 Introduction....................................................................................................................11
2.2 Case Brief.......................................................................................................................11
Importance of customer relationship management to retain the customers.........................11
2.3 Factors that affect customer relation management of Primark.......................................13
2.4 To evaluate the importance of customer retention and its impact on company's
performance..........................................................................................................................16
2.5 To identify link between customer relationship management and customer retention in
Primark.................................................................................................................................17
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2.6 Conclusion......................................................................................................................19
CHAPTER 3..................................................................................................................................20
METHODOLOGY AND PLAN OF THE ANALYSIS................................................................20
3.1 Introduction....................................................................................................................20
3.2 Research philosophy.......................................................................................................20
3.3 Research approach..........................................................................................................21
3.4 Research design..............................................................................................................21
3.5 Data collection................................................................................................................22
3.7 Data analysis...................................................................................................................22
3.9 Research limitation.........................................................................................................24
3.10 Conclusion....................................................................................................................24
CHAPTER 4..................................................................................................................................25
FINDING AND ANALYSIS AND SOLUTION OF PROBLEM................................................25
4.1 Introduction....................................................................................................................25
4.2 Thematic analysis...........................................................................................................25
CHAPTER 5..................................................................................................................................31
CONCLUSION, CONTIBUTION & RECOMANDATION........................................................31
5.1 Conclusion......................................................................................................................31
5.2 Recommendation............................................................................................................32
REFERENCES..............................................................................................................................34
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ACKNOWLEDGEMENT
I would like to express my sincere thanks to my mentor Dr. Lawrence Akwetey who has
offered knowledge as well as support in order to conduct research with effectiveness. I would
also like to express my gratitude towards friends, colleagues as well as family members who
have assisted me at every step of the case study. Through this guidance and support I am able to
accomplish the dissertation in suitable manner. At last I would also like to put special thanks to
my team mates who have helped me in gathering data as well as conducting out the analysis
further.
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ABSTRACT
Aim: To determine the effects of customer relationship management on customer retention in
Primark.
Method: Secondary sources will be used for collecting the information. Further survey was
conducted in which questions are asked from the customer of Primark. In the present study
research used interpretivism philosophy as because it supports investigator to incorporate their
own views and suggestions related to the selected issues
Finding: By the means of carrying out analysis of the views of the customers of Primark
obtained through survey it can be examined that majority of the respondents believed that they
are being provided loyalty scheme because of their regular purchase. On the other side there are
few who state that they got discount whole some of them get membership card. Therefore, it
shows that Primark is focusing on making stronger relation with its customers and due to this
reason it provides different types of offers to its customer for retaining them longer period of
time. The literature review section also shows that with the use of CRM, System Company can
easily manage to keep records of its regular and new customers and also provide some offer or
customer loyalty rewards to its regular consumers.
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CHAPTER 1
INTRODUCTION
Primark is an Irish clothing and accessories company which is a subsidiary of AB
Foods. Its first store was founded by Arthur Ryan and its headquarter is situated in Dublin.
Further, its organisation accomplish success and become one of the leading company. Soon it
started to expand its business in the United Kingdom and it opened a large store in Belfast city
centre. Further, it offered the diverse range of products and services so that it can be target large
number of customer and gain competitive advantages. Adored by fashion, fans, and value seeker
alike it is the widely established destination that keeps latest looks for grabbing the attention of
customers. Its diverse range of products and services such as children’s clothing, men’s wear,
women’s wear, beauty products, footwear, accessories etc. Further organisation sales it product
and services at low cost so that different class people can easily afford it. It also provides
irresistible offer so that customers do not switch to other brand product. It has more than 350
stores and its largest market store is situated in England, it rapidly expanding its business in
different countries such as Germany, Belgium, Portugal, Netherlands etc. In the year 2016
Primark has generated 5.9 billion British pounds in revenue. It accomplishes substantial growth
since from 2007 with the increase of 4.4 profits. However, Primark still needs to make its
presence in the other western Europeans countries. Hence, it shows that company is
accomplishing success and it's expanding its business which helps in earning huge profit and
market share. It is important for the company to make the relationship with its customers so that
it becomes easy for them to fulfil their needs and wants on time.
1.1- Background to the study
The present case study is based on “To determine the effect of customer relationship
management on customer retention in Primark”. Customer relationship management plays
significant role with respect to retain the customers for a longer period of time. It is known as the
strategies, practices, technologies that the company used for examining the interaction of them
with the aim to enhance their relationship with consumers. Customer retention is referred to the
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way company manage its customers and retain them for a long time. One of the primary
objectives of the company is to keep its customers engaged and interested in their products and
services. Loyal customers are more profitable. Therefore, it is important for Primark to
understand the importance of customer relationship management in order to retain them for the
longer period of time.
1.2- Rationale behind the study
Customer relationship management is the art of managing the organisation’s relationship
with the customers. It considers different techniques and strategies for maintaining the healthy
relationship with the regular and potential customers. It helps the company in accomplishing
success because with the help of this it becomes easy for them to retain customers, increase sales
and profit. The present research is based on Determine the effect of customer relationship
management on customer retention in Primark. Hence, this investigation will help in understating
the factors that impact customer relationship management and company performance. The
rationale behind conducting the study is to develop deep understanding related to the
significance of CRM and its impact on the firm.
1.3 – Aim of the study
Aim: To determine the effect of customer relationship management on customer retention in
Primark.
1.4- The objectives of the study
Objectives are provided on the basis of aims of the case study.
 To understand the concept of customer relationship management to retain the customers.
 To analyse the factors that affect customer relation management of Primark.
 To evaluate the importance of customer retention and its impact on company's
performance.
 To identify link between customer relationship management and customer retention in
Primark.
 To recommend different ways in which Primark can retain its customer for longer period
with the help of effective CRM strategies.
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1.5- Research Questions
Research questions are formed because it helps in building the strong framework for the
present case study. Here below are formulated research questions
 What are the concepts of customer relationship management to retain the customers?
 Which are the factors which affect customer relationship management?
 What is the impact of customer retention on company's performance?
 What is relationship between customer relationship management and customer retention
in Primark?
 How Primark can retain its customers for longer period
1.6 – Problem Statement
Many times, the company fails in making a relationship with customers due to which they
switch to other brand products and services. Keeping a regular communication with customers
and taking the review from them regarding the products and services help in holding them for the
longer period of time. The present case study is based on the “To determine the effect of
customer relationship management on customer retention in Primark”. Hence this study will help
Primark company to make improvement in its customer's relationship management so that they
can easily accomplish success. Organisations which fails in managing the customer relationships
and suffers serious competitive disadvantage. They lose the trust of their consumers which
directly affect their sales. The organisation which fails to maintain their relationships with
customers are unable to provide good customer service and effective and innovative products on
time
1.7- Literature review
The present research is based determining the effect of customer relationship management
on customer retention in Primark. Therefore, main literature which is going to review is customer
relationship management and its retention strategies.
1.8- The methodology
Framework analysis is one of the essential steps in which in order to collect information
from various sources which are reliable for making appropriate decisions and to get valid
conclusions. Here below are provided some steps in this regard:
1.8.1 Design of research– In the present research explanatory research design will be used in
order to get meaningful and effective information related to the topic.
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1.8.2 Research approach – For the present research inductive approach will be used by the
investigator. In this focus in researcher will be on moving from specific information to a general.
In the present case study, the effect of customer relationship management on customer retention
in Primark will be determined. This will lead the identification of their impact on the attitudes of
the customers.
1.8.3 Research philosophy – Interpretvitism philosophy will be used for the present research.
1.8.4 Techniques of research – Qualitative techniques will be used for carrying out the entire
research.
1.8.5 Method for data collection – The present case study is based on the effect of customer
relationship management on customer retention in Primark, therefore secondary method
will be used for collecting the information. For collecting the secondary information
various magazines, books, and online websites will be considered.
1.8.6 Sampling technique- Random sampling is the type of probability sampling which will be
used for the survey in which questions will be asked from customers of Primark. For
better findings and effective outcomes of the study, a sample size of 50 customers will be
useful. A survey will be conducted in which questions will be asked customers related to
the effectiveness of CRM and its uses. It helps in obtaining view points of the customers
related to the effect of customer relationship and to them determine their satisfaction
levels.
1.8.7 Analysis of data- Qualitative techniques will be used for analysing the collected data. It
will be done with the use of thematic approach for determining the effect of customer
relationship on customer retention in Primark.
1.9- The structure of the study
1.9.1 Chapter 1: Introduction: In this chapter history of Primark and importance of this
study will be provided. It is consisting of an overview in which the topic under study
will be well defined. Along with this, the important link of the selected topic with the
organization, Primark in the UK will be presented. Aims and objectives and research
problem will be discussed in this chapter.
1.9.2 Chapter 2: Literature Review – In the second chapter detail outline related to the
importance of customer retention and its impact on company's performance will be
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discussed. the link between customer relationship management and customer
retention in Primark will be identified. This segment lay emphasis on the assessment
of the different area of the present case study. As it will be based on the articles
written by different authors and published work.
1.9.3 Chapter 3: Research Methodology – In the research methodology chapter different
methods will be provided which have been used by the investigator for the present
case study. Along with this in this, limitation and ethical consideration and different
resources used by researcher will be provided.
1.9.4 Chapter 4: Data Analysis and Findings- All the collected information will be analysed
with the use of qualitative techniques.
1.9.5 Chapter 5: Conclusion and Recommendations – It is the last chapter in which
conclusion will be provided on the basis of findings and results. Beside this
recommendation will be given for the improvement.
1.10- Conclusion
From the chapter first, it is concluded that Primark company is one of the leading company
that continuously accomplishing success and it had opened more than 350 stores. Through
expanding business, it is important for company to focus on customer’s relationship management
so that company. It helps in increasing the satisfaction level of customers and in fulfilling their
needs and demand on time.
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CHAPTER 2
CASE BRIEF AN REVELANT LITERATURE
2.1 Introduction
The literature review is the second chapter in the case study that helps in developing deep
understanding related to the selected topic. It is one of the critical parts of the research, as
different views of the various scholars regarding the selected topic will be presented. All the
information which is presented in this section is collected from the secondary sources. Hence,
with the help of literature review gap which is left by the previous investigation will be
identified. Apart from this, opinions and views of the different researcher will be critically
evaluated in brief. Thus, it builds the strong theoretical framework for the subject under the
study. In the present case study, this chapter will include factors that affect customer relation
management of Primark. Later, the importance of customer retention and its impact on
company's performance will be evaluated. Further, this section will also cover link between
customer relationship management and customer retention.
2.2 Case Brief
Importance of customer relationship management to retain the customers.
According to the view of According to Tseng and Wu, (2014), customer relationship
management is the team that main aim is to practices, strategies and different technologies which
are used by the firms in order to manage and analyse customer interaction. The goal of CRM is
to make improvement in between customers and business. As, it also helps in retaining
customers for long time and increase sales. When an individual talk about the CRM then it refers
to the CRM system or a tool which assist in managing the personal details of employees and hold
them for the longest time. A CRM is used by the company for business development, customer’s
services, and marketing and for the different purpose. It plays the significant role in the market
because with the help of this it becomes easy for the firm to understand the needs and demand of
customers and resolving their issues on time. If company stay connected with its customers, then
it can take feedback from them and modify their products. Along with this, consumer’s issues get
solved on time with the use of CRM. According to the view of there are some boarder
perspective which helps in understanding the importance of CRM system for an organisation. In
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CRM contact detail of customers is provided which help the company in identifying who are its
regular customers. It makes easier for the firm track customers and finds out their profitable
customers. It basically not deals with the existing customer but it also helps in targeting new
customers. This process is started with identifying a customer and its requirements which is
stated as the opportunity for the business.
Zhang, van Doorn, and Leeflang, (2014), state that one of the strongest aspects of customer
relationship management is that it is cost-effective and it required fewer employees to manage
and fewer resources for dealing with customers. Along with these different technologies which
are used for implementing CRM is also cost-effective and useful for the business. Hence this
process helps the company in increasing the productivity and sales of the firms. Apart from this
through keeping regular communication with customers it becomes easy for the company to
understand the changing needs and wants of customer and issues that face while purchasing the
products and services. Therefore, if firm understands the need and wants of the customer then it
became easy for them to fulfil their demands on time. Customers can easily communicate any
trouble which they face while making the purchase from their company. It supports company in
identifying their weak areas and make improvement accordingly. CRM is related to building a
relationship with the customers so that they can easily enjoy the positive experience while
interacting with brands. Nyadzayo and Khajehzadeh, (2016) state that one of the main benefits of
successful customer relationship management is that it helps to increase the satisfaction level
among customers. For instance, firms, who spend the time of maintaining a relationship with
customers basically, experienced rising customer’s satisfaction level. Apart from this, it also
provides the opportunity to learn more about customers. They are more likely to recommend
their company products and services to their family and friends if they are satisfied with the
services and products of the company. Hence, Word of mouth promotion is proven to be
effective for increasing the sales. In respect to develop lasting customer relationship, it is
essential for the company to offer value-added services to consumers.
A company which depends on the repeat business they must have a good customer
retention system within the firm with respect to thrive in the present competitive environment.
To focus on the customer is become one of the key factors in the global market for both small
and large companies. It is known that it consumes money more to acquire a new customer as
compared to get an existing customer for making a new purchase. One of the second aspects of
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