Impact of CRM: Starbucks, Apple, and KFC Customer Relationship Study

This report explores the impact of Customer Relationship Marketing (CRM) on three major companies: Starbucks, Apple, and KFC. It begins by defining customer relationship marketing as a strategy focused on customer retention and satisfaction rather than mere sales transactions. The analysis of Starbucks highlights its successful loyalty program and its integration with mobile payment systems. Apple's CRM strategy is examined through its emphasis on customer loyalty and the 'I-lifestyle' concept, focusing on tailored customer experiences and emotional connections. The report also touches upon KFC, although with less detail than the other two. The study concludes by emphasizing the importance of building customer communities for long-term business survival and growth in a competitive market, illustrating how these companies leverage CRM to foster customer loyalty and drive profitability. This student contributed document is available on Desklib, a platform offering AI-based study tools and a wealth of academic resources.

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Customer Relationship Marketing
Name of the Student
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Executive Summary
The concept of customer relationship marketing is significantly visible with the increment of
the market competition in the different industries. The reputed organizations are trying their
level best to hold their customers by treating them in the best way possible. The formation of
the customer loyalty in this case will provide the concerned organization with the much
needed space to conduct their business in the competitive business market. The paper
analyses the impact of the Customer Relationship Marketing (CRM) on the business
conduction of three different organizations. The paper is also able to analyse the effect of the
CRM on the organizations which represents completely different industries which helps in
the collective analysis of the CRM. The paper also comments on the need of the formation of
the community in order to survive in the intense competitive business market.

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Table of Contents
Introduction:...............................................................................................................................3
Customer Relationship Marketing:............................................................................................4
Starbucks:...............................................................................................................................4
Apple:.....................................................................................................................................7
KFC:.......................................................................................................................................9
Conclusion:..............................................................................................................................10
References:...............................................................................................................................12

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Introduction:
The conceptual method of conducting the business has changed significantly with the
increment in the market competition (Hennig-Thurau & Hansen, 2013). Almost each and
every organization is restructuring their method of business conduction in order align with
the interest of the customers so that the organization get the much needed breathing space in
order to survive in the industry. This is significantly important for the organizations as the
market competition will only increase in the future and the organizations need to make sure
that the customers are served well in order to hold them with the organizations (Kumar &
Reinartz, 2018). The customer relationship marketing is one of the notable aspect in the
process of dealing with the customers and plays a significant role in making sure that the
customer chooses the concerned organization for the future buy as well. According to Peck et
al. (2013), the customer relationship is a distinct form of marketing generated from the direct
engegment marketing movements which has severe focus on the customer retention and the
customer satisfaction instead of focusing on the sales transactions. According to Payne &
Frow (2013), the concerned method of business process is different from the traditional
marketing concept as it recognizes the long term values of the customer relationships and
extends the focus of the organization on making sure the customer gets satisfied with the
service or the products of the concerned organization. According to the study of Mullins et al.
(2014) the concerned aspect of the business conduction is a proof of greater visionary from
the part of the organization as the greater dependence on the sales marketing will only
generate revenue for the organization and the customer relationship marketing will enable the
organization to have the scope of constructing a customer community which in the modern
day business plays significant role in the survival of an organization along with the growth of
the organization. The paper discusses the impact of the customer relationship marketing in

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the three renowned organizations like Starbucks, Apple Inc. and KFC. The evaluation of the
impact of the CRM in the organizations of three different genre is noteworthy.
Customer Relationship Marketing:
Starbucks:
Starbucks Corporation is an American espresso organization and café chain.
Starbucks was established in Seattle, Washington in 1971 ("Company Information | Starbucks
Coffee Company", 2018). The organisation works more than 28,000 areas in the world.
Starbucks primarily delegate “Second Wave Espresso” and then after some time, it has
separated from the parental company and has started to deliver their own food. Since the
2000s, third wave espresso creators have focused on quality-disapproved of espresso
consumers with hand-made espresso in light of lighter meals, while Starbucks these days
utilizes mechanized coffee machines for effectiveness and security reasons. The average
variable of repeat customers in Starbucks is 5.90 and numbers of visit per week across 5
customers is 4.2. The expenditure and average customer value per week on an average of 5
customers are 24.40 USD. 62% customers are very much satisfied with the productivity of
the company. 27% are satisfied and 11% customers are not satisfied. The company still trying
to cater those unsatisfied people to be satisfied. This is the reason CRM team of the company
working hard for the development of the company.
Customer Relationship Management (CRM) has turned into an urgent piece of the
advanced showcasing system. Most regularly, CRM is performed using client reliability
programs. At last these projects exist so organizations can see their benefits increment by
concentrating on close to home associations with clients. Endless dependability programs
exist, anyway as indicated by an article distributed by Marketing Magazine, Starbucks is by

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all accounts a pioneer when to come to making a powerful devotion program that fulfils
clients, and in addition builds benefits ("Starbucks Card", 2018).
In our reading material, CRM is characterized by its three noteworthy destinations.
The first is client obtaining. This implies the "right" clients will be pulled in to the business or
item, in light of known or learned attributes. There was a 28% of expansion in different kind
of program and Starbucks dealt the process in legitimate manner. In the current year's Q3
results, Starbucks uncovered a 28% expansion to 10.4 million clients of its dedication
program, My Starbucks Rewards ("My Starbucks Rewards | Starbucks Coffee", 2018). This is
a solid sign of the second significant target of CRM, client maintenance. President Howard
Schultz was cited saying that the development of Starbuck's devotion program, "keeps on
being our most essential business driver as new individuals contribute not just here and now
increments in income and benefit, yet additionally long haul unwaveringness for a
considerable length of time to come". The programme motivates employees and clients. The
process have three segments like Welcome, Green and Gold. The approach of gaining
“Starts” is important for the organisation and execution form the company is important in that
case. These stars can be reclaimed with the expectation of complimentary sustenance and
beverages. This expansion in buying clearly offers path to the third and last target of CRM,
client gainfulness. Howard Schultz referred to My Starbucks Rewards as significant purpose
behind the Q3 18% expansion in net incomes, making another quarterly record of $4.9 billion
("My Starbucks Rewards | Starbucks Coffee", 2018). The Starbucks Loyalty Program has
seen awesome accomplishment in its versatile instalment choice when numerous other
portable instalment applications have been battling. In U.S. Starbucks stores, 20% of
exchanges are done by means of the portable application, bringing about almost 9 million
versatile exchanges week by week ("Starbucks – The Best Coffee and Espresso Drinks",
2018). Starbucks has specific system application of “System effect” that brings precise

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explanation of the company for the effortless impact. The reason behind positive impact of
Starbucks is facility and care that company provides to their customers is precise and
emphatic.
Indeed, even with the demonstrated huge achievement of the program's present
model, Starbucks still has plans for upgrading it. Over the late spring it reported plans for
associations with outside organizations to expand ways that clients can use their program
enrolment. The first was with the ride-sharing organization Lift. This arrangement would
enable riders to gather reliability program stars, while all Lift drivers would naturally procure
gold status. A second arrangement for association was with The New York Times ("Breaking
News, World News & Multimedia", 2018). This would enable dedication individuals to see a
choice of stories for nothing by means of their Starbucks application, and in addition procure
stars through paid memberships to the daily papers.
The process of writing up the name in customers’ coffee cup, the placing of order at
the right time, providing free Wi-Fi all these are basic facilities that company delivers to
customers. This is the place where people can spent their whole day and hang out for long.
The quality of the products are also very good and that impacted on their customers’
satisfaction. The level of marketing and their channels are important in that case. The use of
social media and the process of making some seminars and programmes will help the process
those initiate a better marketing for the company. These numerous opinions express CRM as
a movement in the organization that receipts care of the organization’s clients, its competence
and the stages of knowledge administration in the organization is innovative and relevant.
The basic process of maintaining relationship is important at that case and that considers the
simplicity in business to deal with customers with proper manner.

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Apple:
Apple is one of the advanced multinational company best for their consumer electrics,
computer software, and online services. Headquarter of the company is in Cupertino,
California. MacOS and iOS are the main operating system that used by Apple and the
productivity of the company is high enough to challenge any top companies in the world.
Steve Jobs, Steve Wozniak and Ronald Wayne are the founder members of the company in
1976. In 1980, the company showcase their establishment in public and they got instant
financial success. The product innovation is the prime motive of the company they executed
all their products with a touch of elegancy. The noted revenue of the company in 2017 is
US$229.254 billion. Almost 123,000 employees are the part of the company and the total
assent accumulated in the company is US$375.300 million.
The customer relationship strategy of the company is also innovative and media
influence in that case is relevant and productive for the company. The policy of customer
loyalty is the main concern in that case. Customer loyalty is the prime objective of the
company and company wants repeat customers, and thus good relationship evolved through
the process. The ‘I-lifestyle’ process of customer retention strategy of Apple and the iOS
based promotional platform is the major reason of handling customer and satisfy them with
the long term relationship process. The quality of the product and their smooth process of
system orientation is important in that case.
These brands become more acquainted with their clients' preferences. This engages
them to comprehend what to continue doing and what to maintain a strategic distance from to
keep their customers faithful. That fundamental recipe shapes the establishment for
relationship promoting.

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Day by day purchaser benefit doesn't end at the checkout counter. Rather than
concentrating on single exchanges, build up a beneficial lifetime association with a steadfast
shopper base. Tailor your messages and contributions to various sorts of purchasers. All
things considered, no two individuals will have precisely the same or precisely the same.
They will dependably search for something that gives the advantages they require, both
material and enthusiastic.
Effective advertisers make positive passionate interests in their publicizing, which is
the thing that influences it so essential to distinguish what feelings to spur clients' buy
choices. Messages can be cheerful, down to earth, or exuberant. Be that as it may, they ought
to not just gloat about your item's highlights.
Clients will likewise be spurred to purchase contributions from your image on the off
chance that they can identify with the qualities and convictions your image remains for.
Remaining consistent with your convictions gives marks a chance to manufacture positive
relations with customers. The apples stores are processed for the innovative vision and the
items utilises from the Apple are best from their end. The customers are satisfied enough and
their relationship of administration and customers provide some basis feedback that helps the
entire process in a new way. The employees’ of Apple have the imagine view and innovation
power that discovering new technologies and implement some more technology at the same
platform is the basic process in that case.
The customer retention with loyalty benefit, extra offers or any kind of cards are there
for customers and those cards signifies the speciality of the customer and provide a value for
the company. The retention of customers provide extra revenue for the repeat visit of the
customers and CRM team gets closer to the customers before they knowing the process. In
another case, Volvo's conviction of making safe vehicles drove it to shape an organization

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with Lego, bringing about a lesser driving school. Here, guardians worried about their kids
could show essential street wellbeing by demonstrating to them best practices to take after
movement standards and utilize safety belts when in a vehicle. Speaking to significant
feelings (for this situation, parental concern) enabled Volvo to elevate its image's convictions
to similarly invested clients, building trust.
Persuading your gathering of people to confide in you includes joining an
unmistakable, applicable feeling to your image. This feeling ought to be something that
buyers will recall and connect with your items or administrations each time they utilize them.
KFC:
KFC Corporation (KFC), recognised as Kentucky Fried Chicken. This is a food chain
market in US. The company is a process of having cheap food cafeterias located in
Louisville, Kentucky, in the United States ("KFC", 2018). The idea of “Yum” has come
through the process. Since 1997, the spun off process of PepsiCo and the process of Chicken
wraps, mixed green and sandwiches are there in the modern food market. The company
brings back the Double down sandwiches. The quality of those foods and customer
satisfaction range is high and the company loves to cater their customer like ways. This is the
best part of CRM process to handle the situation like this and provide the best service at their
hubs.
As a rule, the cost is the principal thing that the greater part of the monetary
allowance to actualize. The organization needs to prepare their staff to get to know the CRM
framework. The cost to introduce the innovation into the association and in addition the cost
to buy for the CRM. Moreover, the association needs to exchange their procedure promoting,
which they need to alter their opinion to fit with the new market, the new world, new
reasoning of client. There are 3 noteworthy hindrances that could be occur in the organization

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while executing CRM which is incorporated correspondence, joining, and the achievement of
the association.
The correspondence inside the association incorporates: Firstly, the correspondence
needs to embrace the relationship promoting theory. It implies underscores client
maintenance and fulfilment, instead of an overwhelming spotlight on deals exchanges
through by the immediate reaction promoting efforts. The pioneer of the association, in
particular in KFC case, the supervisors of each branch need to recollect at the top of the
priority list of it ("KFC CRM", 2018). The fulfilment of the clients is the most concern.
Seeing better and more profundity in client's conduct and their needs so KFC
supervisor can see plainly the issues that they are confronted. Thus, discovered the
arrangements and enhance the administrations and items to survive and contend with
different contenders. A poor correspondence inside the association is another reason that
client relationship administration probably won't produce results as trusted. Besides, detail
the advantages to all representatives to tell them what they will pick up from the association.
Hindrance through by incorporation through foreknowledge relating CRM strategies to
progress factors in the business.
Conclusion:
On a concluding note, it can be said that the intense market competition is the major
reason behind the initiative of the organizations in acknowledging the importance of the
customer relationship marketing. The organizations like Starbucks, KFC and Apple are
renowned names in their respective industry but with the increasing market competitors in the
industry, the concerned organizations are significantly influenced to welcome the new
concept. The organizations were observed to focus on increasing the customer loyalty as they
knew it very well that the new entries into the market with the low pricing of the service and

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products will affect the stable business of the concerned organizations in a significant
manner. Starbucks were observed to restructure their loyalty program with effective
marketing insights in order to increase the client satisfaction. Apple was significantly trying
to follow the market trend in order to align their products with the needs of their customers.
KFC went on to increase the quality of their service towards their customer with a focus on
customer retention.

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References:
Apple Inc. (2018). 10-K Apple Inc. [Ebook]. Retrieved from
http://d18rn0p25nwr6d.cloudfront.net/CIK-0000320193/ca6735cd-5ab7-4bb9-abf8-
564739c3506b.pdf
Apple Inc. (2018). 10-Q Form [Ebook]. Retrieved from
http://d18rn0p25nwr6d.cloudfront.net/CIK-0000320193/3ec770b8-64e5-4f75-833c-
386b0ed1c067.pdf
Apple Store - Find a Store - Apple. (2018). Retrieved from https://www.apple.com/retail/
Apple. (2018). Retrieved from https://www.apple.com/
Breaking News, World News & Multimedia. (2018). Retrieved from
https://www.nytimes.com/
Company Information | Starbucks Coffee Company. (2018). Retrieved from
http://www.starbucks.in/about-us/company-information
Hennig-Thurau, T., & Hansen, U. (Eds.). (2013). Relationship marketing: Gaining
competitive advantage through customer satisfaction and customer retention.
Springer Science & Business Media.
KFC CRM. (2018). Retrieved from https://www.kfc.com/about/responsibility
KFC. (2018). Retrieved from https://www.kfc.com/?georedirect=false
Kumar, V., & Reinartz, W. (2018). Customer relationship management: Concept, strategy,
and tools. Springer.

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Mullins, R. R., Ahearne, M., Lam, S. K., Hall, Z. R., & Boichuk, J. P. (2014). Know your
customer: How salesperson perceptions of customer relationship quality form and
influence account profitability. Journal of Marketing, 78(6), 38-58.
My Starbucks Rewards | Starbucks Coffee. (2018). Retrieved from
http://www.starbucks.in/card/rewards
Payne, A., & Frow, P. (2013). Strategic customer management: Integrating relationship
marketing and CRM. Cambridge University Press.
Peck, H., Christopher, M., Clark, M., & Payne, A. (2013). Relationship marketing.
Routledge.
Starbucks – The Best Coffee and Espresso Drinks. (2018). Retrieved from
https://www.starbucks.com/
Starbucks Card. (2018). Retrieved from https://card.starbucks.in/
Starbucks. (2018). Retrieved from http://www.starbucks.in/