Case Study for Pizza Hut
Let’s define what CRM is first.
CRM stands for Customer Relationship Management. The goal of implementing such management system is as follows:
Source: Marketing Management, 12th edition, Kotler & Keller.
According to Peppers and Rogers, one-to-one marketing that can be adapted to CRM marketing are as follows(This is the complete list of the above diagram):
Identify your prospects and customers.
Differentiate customers in terms of their needs and their value to your company.
Interact with individual customers to improve your knowledge about their individual needs and to build stronger relationships.
Customize products, services, and messages to each customer.
Reducing the rate of customer defection.
Increasing the longevity of the customer relationship.
Enhancing the growth potential of each customer through “share-of-wallet,” cross-selling, and up-selling.
Making low-profit customers more profitable or terminating them.
Focusing disproportionate efforts on high-value customers.
Source: Marketing Management, 12th edition, Kotler & Keller
1. Please describe how Pizza Hut improves customer satisfaction through CRM program.
In 2005, Pizza Hut started the CRM program which consisted of the following three: 1-800 hotline, Customer satisfaction/loyalty survey, and Bonus program.
The 1-800 hotline: From looking at the CRM model above, you can see that the hotline allowed Pizza Hut to ‘Interact to improve knowledge’ about the customer’s wants and needs. By knowing what the customers are happy or unhappy about, Pizza Hut can take different measures to satisfy the customers. I believe it’s always good to have a channel that’s ‘open’ to customers in order to get a feedback and hear complaints. Even if you lose the customer, if you can hear from them why they’re leaving, you’ll at least be able to remedy the problem so that it won’t happen again.
Survey: The survey also helped Pizza hut ‘Interact to improve
CRM stands for Customer Relationship Management. The goal of implementing such management system is as follows:
Source: Marketing Management, 12th edition, Kotler & Keller.
According to Peppers and Rogers, one-to-one marketing that can be adapted to CRM marketing are as follows(This is the complete list of the above diagram):
Identify your prospects and customers.
Differentiate customers in terms of their needs and their value to your company.
Interact with individual customers to improve your knowledge about their individual needs and to build stronger relationships.
Customize products, services, and messages to each customer.
Reducing the rate of customer defection.
Increasing the longevity of the customer relationship.
Enhancing the growth potential of each customer through “share-of-wallet,” cross-selling, and up-selling.
Making low-profit customers more profitable or terminating them.
Focusing disproportionate efforts on high-value customers.
Source: Marketing Management, 12th edition, Kotler & Keller
1. Please describe how Pizza Hut improves customer satisfaction through CRM program.
In 2005, Pizza Hut started the CRM program which consisted of the following three: 1-800 hotline, Customer satisfaction/loyalty survey, and Bonus program.
The 1-800 hotline: From looking at the CRM model above, you can see that the hotline allowed Pizza Hut to ‘Interact to improve knowledge’ about the customer’s wants and needs. By knowing what the customers are happy or unhappy about, Pizza Hut can take different measures to satisfy the customers. I believe it’s always good to have a channel that’s ‘open’ to customers in order to get a feedback and hear complaints. Even if you lose the customer, if you can hear from them why they’re leaving, you’ll at least be able to remedy the problem so that it won’t happen again.
Survey: The survey also helped Pizza hut ‘Interact to improve