...1 | 2. | INTRODUCTION | 2 | 3. | CUSTOMER FOCUS | 3 | 4. | CUSTOMER RELATIONSHIP MANAGEMENT | | 5. | CONCLUSION | | CUSTOMER FOCUS AND RELATIONSHIP MANAGEMENT CUSTOMER FOCUS AND RELATIONSHIP MANAGEMENT 1.Abstract CRM (Customer Relationship Management), sometimes it is called customer management, customer value management, customer centricity, and customer-centric management. CRM has long been the buzzword for airlines aspiring to 'one-to-one' relationships with all customers, all of the time. Its underlying principles are well established too - those airlines that can effectively attract, serve and retain the best customers will see significant positive effects on their bottom line profitability. The deeper the relationship the airline holds with these customers, the more opportunities there will be for selling additional products and services. However, with the emergence of e-business and the 'new economy', the challenges of building strong customer relationships have become even greater. 2.Introduction The jet age and the resulting euphoria in the market have given the ultimate weapon in the hands of the marketers. They now possess many options with them to persuade the customers to buy their products and services. But also because all of these advance, the customer is no more brands loyal. The more...
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...CRM system stands for customer relationship management system and can roughly be explained as a system which enables the management of a business’ interactions with customers. CRM systems allow companies to create strategies that help increase customer satisfaction. Through a combination of people, processes and technology CRM systems allows companies to manage their relations with customers. In order to implement a CRM system all department, those that are involved with the customers and those that are behind the scene, have to collaborate in unison to increase profitability by increasing customer satisfaction and decreasing operational cost that are found to be unnecessary after extensive customer information is obtained and analyzed. In order to implement an effective CRM system or in other words become customer focused one needs to watch out to four major steps. These steps in chronological order are communal coordination, serial coordination, symbiotic coordination and integral coordination. Though “skipping stages might appear to speed up the process, in the end it denies the organization the sure foundation it needs to build a lasting customer-focused mind-set.” In order to get a better understanding of customers in order to increase efficiency and profits companies must first create a “centralized repository of customer information.” By doing so companies collect all the necessary information and standardize it throughout the firm then organize the collected information...
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...Using Technology Name Institutional Affiliations Today, many companies use social media to attract the current and new customers. If a company sells to the public, there are good chances that many of the customers, as well as, prospective customers are buying online (PWC, 2015). Online social media offer a low-cost way of reaching and influencing a wide customer base. Some of the social media that can be used to reach customers include Facebook, Twitter, and LinkedIn. Facebook and Twitter will help in sharing information about the new mobile application available that will allow them to quickly purchase the product or the service. On the Facebook page, pictures and videos of the new mobile application can be shared to help the customer to understand how the application works after installing it on their phones. The mobile operating system that can be designed for this application is android; however other operating system such as windows OS and iPhone OS can be used as well. A study has shown that android is a great choice for designing this kind of application in phones because of its ease of development, as well as, customization unlike other mobile operating systems such as Apple. The other reason for using this operating in designing the application is because it is an open source operating system thus mobile developers can easily use it in designing any application for any mobile platform. Definitely I would prefer designing the system using software that will...
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...claim that customer service and customer satisfaction are a priority. However few organizations today have a system in place to ensure that they are delivering ultimate satisfaction to their customers. Delivering great customer service and providing ultimate satisfaction takes both understanding what your customers want and a way to see that they receive it (Why and How to Measure Customer Satisfaction). As a result, the market for customer satisfaction research continues to grow. I will be identifying the best practice of customer satisfaction measurement, make linkage to my organizations practices and finally make recommendations for improvement. Identification of Best Practices Customer satisfaction can be directly linked to the bottom line of any organization. Customer wants and needs drive competitive advantage, and statistics show that growth in market share and financial success are strongly correlated with customer satisfaction (Evans). Several methodological approaches are used in order to define, measure and analyze customer satisfaction (Evangelos). The best practices of gathering such information include surveys, focus groups and Internet monitoring. Surveys Surveys are some of the easiest practices of gathering customer likes and dislikes. Without interruption, the surveys provide an effective way for customers to communicate with the organization. The communicated data is valuable in that the organization is obtaining it directly from the customer. In addition...
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... RichardH@Aiken.SC.edu EXECUTIVE SUMMARY "Market orientation," may actually encompass several different approaches to the strategic alignment of the organization with the external environment. This article develops a market orientation typology matrix as a pedagogical and heuristic tool to summarize these distinct approaches. Specifically, firms can decide to focus primarily on either competitors or customers as the situation dictates, or perhaps attempt the difficult task of simultaneously monitoring both with equal emphasis. The proposed matrix includes four distinct approaches to market orientation: "customer preoccupied," "marketing warriors," "strategically integrated," and "strategically inept". Firms which emphasize customer-focused intelligence gathering activities at the expense of competitor information may be classified as "customer preoccupied". Because the marketing concept promotes putting the interests of customers first, many researchers consider a customer-focus to be the most fundamental aspect of market orientation. Because the marketing concept encourages a business to be forward looking, a customer-focused business is likely to be more interested in long-term business success as opposed to short-term profits. Firms that emphasize competitors in their external market analyses have been labeled "marketing warriors". Using target rivals as a frame of reference, competitor-focused firms seek to identify their own strengths and weaknesses and to keep pace with...
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...research Parkson wants to grasp the customer behavior and there are three methods suggest for doing research: * Using observational research method * Using data from primary gathering * Using 8 focus groups with different segments Focus group Focus group usually refers to a group of 10 or fewer volunteered buyers to give their opinion and share their ideas or reactions toward a new product or an idea. They can be asked a number of questions or tried new samples of new products to see how they react toward it. Benefits: Therefore, the main advantage of focus group method is that it’s easily to measure customer reactions to new products and understand customer perceptions. For example, when a new brand name enter Parkson or replace the old one, we can recognize how people react to that brand name (whether they like it or not) and how their shopping behavior will change (how often customers will shop in that brand). Another advantage of focus group is encouraging interactions among customers. They can freely discuss and debate more when they’re in a group interviewed than individual. Exchanging information and ideas can make the moderator understand more about their buyers characteristic and their behavior Disadvantages: However, focus group can have some disadvantages. The first one is that it can cost a big amount of money. To interview a respondent, it will cost around $300. Parkson hold 8 focus groups with different customer segments and each group contains 8...
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...Measuring Customer Satisfaction Week 3: Paper Submitted by: Rich De Guzman rich.deguzman32@gmail.com BSOP 588: Managing Quality Instructor: Richard Sheng September 22, 2013 Introduction Being able to provide the best customer satisfaction should be the basis for a company and their vision to succeed. Good customer satisfaction can result in confidence in the company’s products and services however; great customer satisfaction can result in more and new sales or volume. Many companies use different metrics and methods to measure customer satisfaction. This paper will explore a few measures that I have researched and how it correlates to my company or company I used to work for in addition to some recommendations. Identification of best practices One of the most commonly used methods to measure customer satisfaction is by conducting a survey. According to TechRupublic, a survey “allows you to quantify the subjective perceptions of the clients by asking them to convert their perceptions into a numerical rating. The ratings then help the project team better understand how they performed” (TechRadar, 2007). I agree in that surveys do a good job of gathering information so that companies can gain knowledge on how to act and improve their overall customer satisfaction. There are many survey methods out there such as internal and external surveys. This can be deployed in a wide range such as a multiple choice or short answer structure. Many I have seen are surveys...
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...its very core is the Process through which VALUE is exchanged The official definition Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders American Marketing Association Definition Marketing is not a function It is a way of doing business Modern Focus on Customer Marketing is any and all activities that directly or indirectly influence the choices that individuals or organizations make. Marketing Is it an Art or Science? Marketing is both Science and Arts • Science, by itself remains on an abstract level. • When science and art unite beauty of the subject blossoms into its fullness. • One may know the theory of the music but only when one masters the art of singing, the many splendored beauty of the nad brahma comes to life Marketing Components A Philosophy An Attitude A Perspective A Management Orientation Set of Activities, including: Products Pricing Promotion Distribution What is Perceived Customer Value? Product value Services value Personnel value Image value Monetary cost Time cost Energy cost Total customer benefit Customer delivered value Total customer cost Psychic cost Creating Value Exchange A B Delivering Value Communicating Value WHAT IS MARKETING Exchange Relationship Buyer VALUE Seller Changing Marketing Approaches Transactional ...
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...range of people to the product, so you decide to set up focus groups to sample the cereal. In one to two pages, describe how you would carry out a focus group review of the cereal. a. How many people would be included in the focus group? A focus group is used to gain feedback and opinions from potential customers. My focus group will consist of a small group no less than six and no more than twelve participants to conduct a taste testing of the natural granola style cereal. By selecting less than six participants could lead to limited conversation and reactions to the product. Selecting twelve participants for the focus group will have more diversity within the group. Also, by selecting twelve participants account for any participants who decide not to show for the focus group. By having a small focus group, it minimizes the chance of losing important thoughts, ideas and reactions to the cereal of the participants. b. How would they be selected? There are many of methods to select participants for sampling. Participants shouldn’t be randomly selected in this focus group because the group should consist of participants that will provide the best information for the sampling of the cereal. Selecting the participants will be based on the purpose of the focus group which is to sample the natural granola style cereal. Also, participants need to be selected by the type of product that is being sampled. For this focus group, advertisement through the radio, local newspaper...
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...over time. A manufacturer competing chiefly on cost and efficiency, for instance, requires a culture very different from that of a luxury goods retailer for which personalized customer attention is the ultimate differentiator. “High performance” means different things in companies competing on different strategic priorities across industry sectors. In short, the right high-performance environment is one that helps a company achieve a specific set of business requirements. In a high-performance organization, workplace practices must actively influence the employee behaviors needed to execute its strategy and reinforce its market focus. behaviors of leaders are critical in establishing a culture that aligns with the business strategy. But, certainly, this is easier said than done. In fact, many companies’ cultures are not aligned with their business objectives, because their leaders, who by and large focus on the financial and operational aspects of the business, simply allow corporate culture to evolve. In some cases, the responsibilities of day-to-day management intrude, or leaders do not have the tools necessary to identify and close the gaps between culture and strategy. When the culture and strategy align, both people and functions work toward a common purpose. For example, a company that relies on customer...
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...said to be the attractiveness of an industry in which it operates. This mean that companies that manage to place them self correctly can generate more profits than companies who have not thought about their optimal position. The framework is called generic because it is not industry dependent. A company should reflect on its strengths and weaknesses in order to find its competitive advantage, and this unique strength should be leveraged. Michael Porter argued that a company’s strength ultimately could be placed into two categories: cost advantage or differentiation. Application of those strengths in either a broad or narrow market segment scope results in three generic strategies according to Porter: Cost leadership, differentiation and focus. These three strategies are supposed to be applied on a...
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...value principle. The three value disciplines include operational excellence, product leadership, and customer intimacy. Customers define value and consider several aspects including a convenience of price, after-sale service, dependability, etc. when defining a value on the product or service. To maintain a leadership in the respective industry businesses have focused on delivering superior customer value in one the three value disciplines; operational excellence, customer intimacy, or product leadership and meeting industry standards in the remaining two (Treacy & Wiersema, 2014). The primary principle value disciple Life Insurance Companyshould focus on delivering superior customer value is operational excellence. Operational excellence includes providing customers with reliable products or services at competitive prices with minimal difficulty or inconvenience. Generic Strategy Generic Strategy is a basic approach to strategic planning and includes the fundamentals of marketing strategies; differentiation strategy, focus strategy, and low cost strategy. Cost leadership involves becoming the low cost producer in its industry and exploiting all sources of cost advantage to achieve and sustain overall cost leadership. Differentiation strategy focuses on being unique in its industry and focusing in on their unique offerings at a premium price. Focus strategy includes cost focus and...
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...Market Analysis of Froyo Loco The Influencing Cultural, Social and Personal Factors The goal of marketing Froyo Loco in El Paso is to make sure that the service meets and satisfies the targeted customer’s needs and wants better than the local frozen yogurt shops already established in the area. In order to accomplish this task, we must look at the potential customer base and understand how they live in order to ensure we reach our targeted consumer. This analysis will define what cultural, social and personal factors are likely to most influence consumer purchasing of Froyo Loco products and services. Cultural Factors El Paso, Texas is located on the most western tip of Texas and shares a border with Mexico and New Mexico. According to facts found at the Center for Interdisciplinary Health Research and Evaluation for University of Texas at El Paso (UTEP), “The majority (80%) of El Paso's population is Hispanic and many people are fluent only in Spanish”(2011). The large Hispanic population of El Paso will be the major cultural factor to consider when marketing Froyo Loco. Social Factors In addition to cultural factors, social factors must be taken into consideration. Two primary membership groups will influence the marketing of Froyo Loco. The first membership group to consider is the families of El Paso as they will be the main target consumer for the cafe. Another membership group that must be analyzed is the college students attending UTEP. Since previous...
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...The Key to Performance Excellence The current business environment is as dire as it has ever been. The economy has created a customer base that is choosy and critical. In order to succeed in this chaotic environment, companies have to compete for business. A high-quality business must be committed to performance excellence. Employees must have clear performance standards, receive the proper training and be innovative. In order to maintain performance excellence, the organizational leadership must be both inspiring and supporting. Mangers must also remain focused on planning, both short and long term. The organizations customers must become a top priority and their satisfaction must be a constantly calculated metric. The last required constant is performance measurement and analysis. Performance excellence is a multifaceted approach that encompasses leadership, strategic planning, customer focus, measurement and analysis. Leadership is such a hard commodity to find in adequate supply. So few individuals are inspirational to their people; they don’t lead by example. “Research has unequivocally demonstrated that when leadership inspires trust and confidence in the future, and managers recognize and respect employees, ensure they are growing and developing, and match them to assignments for which they are well suited, employee engagement is higher” (KINEXA). The majority of people will follow a leader that exemplifies the mission oriented posture and selfless motives of...
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...Every company wants to get close to its customers, but wishing doesn't make it so. New research identifies four stages of customer focus and maps the organizational changes necessary to navigate from one stage to the next. The Quest for ustomer Focus by Rahjay Gulati and James B. Oldroyd For Continental Airlines, the joumey began when the company was emerging from bankruptcy and needed to know more about the profitability of its individual customers. One ofthe first things it uncovered was a service mess that was costing the airline millions of dollars every year. Continental took a systematic look at how passengers were treated when a plane was significantly delayed, when they were bumped from a flight, or during some other unfortunate event. What it found was that compensation was offered on an arbitrary basis by the gate agent, and, somehow, the lowest value customers were, on average, receiving the highest compensation. Worse, some passengers were finding ways to be doubly compensated; a customer who was bumped from a fiight might first approach a gate agent, pick up a voucher for a free fiight, and then minutes later telephone the airline and ask for HARVARD BUSINESS REVIEW M |ORE AND MORE CEOs are hoping a stronger customer focus will be the antidote to escalating commoditization pressures. But as the frustrations of myriad companies can attest, getting closer to customers is not just a matter of installing a better CRM system or of finding a more effective...
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