An Analysis of the Factors of Successful Implementation of Customer Relationship Management in Chain of Supermarkets in the United Kingdom
An analysis of the factors of successful implementation of customer relationship management in chain of supermarkets in the United Kingdom 1. Introduction
Today, more and more companies find that cultivating customer loyalty is a key factor to achieve success. Customer relationship management (CRM) focuses on the relationship between customer and company. Due to this feature, many companies are trying to establish their own CRM system for helping them to connect new customers and boost old customers’ long-term loyalty. CRM systems include operations and analysis, and relationship marketing strategy and supporting, customer-centric business processes (Buttle 2004). With the development of information technology (IT), using CRM system is more convenient. It is considered as an important strategic compulsory (Coltman 2007), with investment predicting that global costing will increase on CRM system over the future (Gartner Group 2009).
From a U.S. based survey, it was found by Goodhue et al. (2002) that a CRM system had already been established or was planned by 91 percent of companies. However, according to Rigby, the application of a CRM system is not very successful (Rigby et al. 2002).The main reason is that more than half of total companies consider CRM as a simple technology solution which aims to build a bridge among marketing, sales and service (Peppers and Rogers, 1999). A successful implementation should consist of different functional departments and be based on the needs of customer, at the same time, the CRM system also needs to integrate technology about business process management and cover the entire organization (Goldenberg, 2000).
This paper will define CRM and supermarkets. Then it will focus on the factors which influence successful implementation and analysis the use of CRM in supermarkets. The next section explains CRM systems and supermarkets, and describes the relationship between CRM and the supermarkets. Then how to use CRM in a
Today, more and more companies find that cultivating customer loyalty is a key factor to achieve success. Customer relationship management (CRM) focuses on the relationship between customer and company. Due to this feature, many companies are trying to establish their own CRM system for helping them to connect new customers and boost old customers’ long-term loyalty. CRM systems include operations and analysis, and relationship marketing strategy and supporting, customer-centric business processes (Buttle 2004). With the development of information technology (IT), using CRM system is more convenient. It is considered as an important strategic compulsory (Coltman 2007), with investment predicting that global costing will increase on CRM system over the future (Gartner Group 2009).
From a U.S. based survey, it was found by Goodhue et al. (2002) that a CRM system had already been established or was planned by 91 percent of companies. However, according to Rigby, the application of a CRM system is not very successful (Rigby et al. 2002).The main reason is that more than half of total companies consider CRM as a simple technology solution which aims to build a bridge among marketing, sales and service (Peppers and Rogers, 1999). A successful implementation should consist of different functional departments and be based on the needs of customer, at the same time, the CRM system also needs to integrate technology about business process management and cover the entire organization (Goldenberg, 2000).
This paper will define CRM and supermarkets. Then it will focus on the factors which influence successful implementation and analysis the use of CRM in supermarkets. The next section explains CRM systems and supermarkets, and describes the relationship between CRM and the supermarkets. Then how to use CRM in a
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