In this TMA01 for, Marketing in a Complex world, I’m going to talk about implementing Customer Relationship Management (CRM) to create competitive advantage for a firm.
In the first part, we are asked to analyse the reason why would organizations require to implement CRM. I’ll do this in the light of the environmental factors which most likely to affect the success of CRM using STEEP analyses. The primary goal of a CRM strategy is to develop and retain customer’s loyalty. Customer’s loyalty can be explained as “a dedicated activity of the customer, which presume a positive customer attitude and consequence customer behaviour.” (Regina Reicher, 2015)
CRM and different strategies devoted to maintain customers is highly crucial to any organization. …show more content…
It may define customer value and therefore, it could further improve the effectiveness of handling important customers.
The STEEP analysis tool is a framework to “gauge how the external environment will impact a given company’s strategic plan to remain competitive” (Blum, 2009) . It stands for five elements which are Social, Technological, Economic, Ecological, and Political. For the sake of this study report, I’m going to take “Wal Mart” which is a leading and one of the biggest global retail companies in the world as my example.
First, the Social Factor:
Wal Mart’s international operation should operate according to local culture of the hosting countries. It includes population growth, age distribution, career attitude and emphasis on safety. Trends of host countries affect demand of Wal Mart’s products and services. We can see this reflected by customer feelings and trends toward any establishment. As Customer oriented and customer satisfaction are becoming major pillars for competitiveness of the organizations. Thus, many factors directly or indirectly affect the customer satisfaction. In today’s world, the main driver of businesses that seek major improvements in their progress is the customer. Customers satisfied with an organization express their positive experiences to others; thus, promoting the organization to others. This directly reduce the cost of attracting new customers. This can be clearly seen in Amazon.com experience “Nearly …show more content…
“CRM is about understanding the buying habits, and preferences of the customers and prospects, so it makes it possible for business to:
• Build and strengthen customer relationships to keep them coming back.
• Provide value added services that are difficult for competitors to duplicate.
• Improve the product development and service delivery processes.
• Increase the staff’s awareness of customer needs.
• Reduce customer frustration by not asking the same question over and over” (The Factors Affecting Adoption of CRM, 2006)
Thirdly, Economic Factor:
Economic condition of host countries has greater impact on any business firm. Recently, Wal Mart must take in consideration facing high inflation rate and currency rate changes, higher tax rates, inflation, and economic slowdown. Implement CRM can help to save cost for the organizations. As we learn from the following statement “Wal Mart’s performance in Mexico suffered due to slow economic growth in the country. Which caused the Company’s sales to be negative for several quarters in fiscal year 2014” (Soni,
In the first part, we are asked to analyse the reason why would organizations require to implement CRM. I’ll do this in the light of the environmental factors which most likely to affect the success of CRM using STEEP analyses. The primary goal of a CRM strategy is to develop and retain customer’s loyalty. Customer’s loyalty can be explained as “a dedicated activity of the customer, which presume a positive customer attitude and consequence customer behaviour.” (Regina Reicher, 2015)
CRM and different strategies devoted to maintain customers is highly crucial to any organization. …show more content…
It may define customer value and therefore, it could further improve the effectiveness of handling important customers.
The STEEP analysis tool is a framework to “gauge how the external environment will impact a given company’s strategic plan to remain competitive” (Blum, 2009) . It stands for five elements which are Social, Technological, Economic, Ecological, and Political. For the sake of this study report, I’m going to take “Wal Mart” which is a leading and one of the biggest global retail companies in the world as my example.
First, the Social Factor:
Wal Mart’s international operation should operate according to local culture of the hosting countries. It includes population growth, age distribution, career attitude and emphasis on safety. Trends of host countries affect demand of Wal Mart’s products and services. We can see this reflected by customer feelings and trends toward any establishment. As Customer oriented and customer satisfaction are becoming major pillars for competitiveness of the organizations. Thus, many factors directly or indirectly affect the customer satisfaction. In today’s world, the main driver of businesses that seek major improvements in their progress is the customer. Customers satisfied with an organization express their positive experiences to others; thus, promoting the organization to others. This directly reduce the cost of attracting new customers. This can be clearly seen in Amazon.com experience “Nearly …show more content…
“CRM is about understanding the buying habits, and preferences of the customers and prospects, so it makes it possible for business to:
• Build and strengthen customer relationships to keep them coming back.
• Provide value added services that are difficult for competitors to duplicate.
• Improve the product development and service delivery processes.
• Increase the staff’s awareness of customer needs.
• Reduce customer frustration by not asking the same question over and over” (The Factors Affecting Adoption of CRM, 2006)
Thirdly, Economic Factor:
Economic condition of host countries has greater impact on any business firm. Recently, Wal Mart must take in consideration facing high inflation rate and currency rate changes, higher tax rates, inflation, and economic slowdown. Implement CRM can help to save cost for the organizations. As we learn from the following statement “Wal Mart’s performance in Mexico suffered due to slow economic growth in the country. Which caused the Company’s sales to be negative for several quarters in fiscal year 2014” (Soni,