Do the managers believe in the importance of customer relationship management to the sales and expansion of grocery stores

Now a day organizations are building their relations with clients and doing their efforts to maintain a very good level of long term relationship based on loyalty and trust to accomplish the goals of the organization (Sugandhi, 2004).

All the businesses start with the customers and also end with the clients, service quality is of more importance these days in every business, while all other departments like production, supply chain, procurement and management has their own role and importance (Chen and Popovich, 2006).

There is a clear role of customer relationship management on the growth of company, and services providing companies must pay their full attention in better quality of services because effective practices will attract more clients and companies can earn more and more money and can build their image in the mind of clients.

  1. Research Aims

The researcher will find the effective customer relationship management practices in the hotel industry in the United Kingdom by selecting Marriott hotel as case study to fulfil the academic requirement and will find out the positive effects of customer relationship management on the growth of hotel industry. The researcher will find out all the aspects and will find out the all those actors that can affect the activities of the customer relationship management on the sales and the growth in hotel industry.   

  1. Research Question

Do the managers believe in the importance of customer relationship management to the sales and expansion of grocery stores in the United Kingdom?

  1. Research Objectives

The researcher has some objectives to conduct the research and all those objectives are listed below one by one.

  • To know about the benefits and the advantages of the customers relationship management in the hotel industry for providing the excellent services to the clients on priority basis and according to their requirements.
  • To find out the difference between the perceived quality of service and client expected quality of services and will find out the factors that can reduce the difference to create the trust and best image and organizational image in the mind of its clients.
  • To know about the problems and issues faced by the customer relationship management to implement its strategies and plans efficiently and those factors that can minimize these problems effectively for creating faith among its customers to achieve organizational objectives by through proper channel.
  • To identify the role of employees in handling customers and the positive effects and the customer relationship management department role in enhancing the skills and abilities of the workers to handle the clients for bringing happiness among them.
  • To know the relationship between the employee’s attitude, role of technology, clients attitude, productivity attitude of workers and client’s satisfaction in achieving main goals.
  • Making recommendations and positive suggestions for the organization to improve the customer relationship management department policies in providing excellent services to the consumers for making profits.
  • Review Literature

There are many advantages associated with the customer relationship management, now a day customer relationship management is actually working to find out the actual wants and needs of potential customers and plays its vital role from product development to distribution and till complaint handling. The researcher will also find out here all those features and its drawback and specially its positive impacts in achieving objectives and by serving client at maximum offering good quality services to the clients.

  • Customer Relationship management

All the business strategies that are used to find out the actual need and wants of the clients and their expectations regarding the products and how to sell, how to purchase the raw material and how to handle the clients and how to build the long term relationships with the clients to earn revenue and how to make growth and how to expand the business by capturing more clients from the market are responsibility of customer relationship management in the company with effective strategies and implementation and updating with the passage of time (Bennett, 2007).

The companies must consider their promises and must offer the good quality of services to their clients because to create loyalty and long term profitable relation these are necessary for the companies to pay their full attentions towards these sides, clients need more attention and complaints handling is also need more considerations, these promises and clients priority are main features of effective customer relationship management practices (McDonald, 2002).

To offer good quality of services to the client’s organizations must develop good CRM strategies to identify and to satisfy the clients as per their needs and wants, best strategies of business running by recognizing the expected outcomes and feature of the products and services and by considering all those features the companies can be able to design their products to offer those products and services to the consumers through these effective policies and running these activities with the other business activities smoothly in order to create efficiency in the work (Gronroos, 2006; Morgan, 2008).

No client no business, while number of client increasing is directly proportional to the expansion of the business, when there is no marketing activity then there is no messaging in the market and no awareness about the product to the people and when there is no standard of the items and services then there will be no satisfaction and the consumer will never come again to buy any product and the business will stop so there is a deep relationship between the clients and the products features and the organizational growth (Buttle, 2006).

All the companies are in relation with the raw material suppliers and all the other parties like clients and labours and even then with distributors because these all are the stakeholders and the main objective of company is always are to make money by having clients and to retain old clients and to capture more market share is the main function of the CRM (Sungandhi, 2004).

  • Clients Loyalty

The loyalty among the clients can be created by the effective CRM strategies, if the organizations designed the business policies according to the client’s needs and expectations of them then the business policies are not so good and up to the mark then it will be possible for those organizations to have effective role of customer relationship management in creating the loyalty and satisfaction among its potential consumers for more profit (Buttle, 2007).

The clients satisfaction is depends on the difference between the provided services quality and the level of quality that the client expected from the service providers, and if the difference occurred its means that clients is not happy and there is no success in creating satisfaction, some factors like speedy reaction, personal qualities, credentials, trainings, delegated powers to the employees to provide alternatives to the victims these all effects the approach and handling technique of the employees in better way to the clients (McAlexander et al. 2004).

There is a relationship exist between the sales and the level of satisfaction among the clients, this is so simple to understand because the satisfaction always bring the pleasure and gladness among the clients at maximum level to attain the organizational main mission, and due to this satisfaction factor the consumers again comeback in the organization for more purchases and in this way when the sales volume will increases the revenue and ultimately the profit will increases and it will also provide the opportunity for the expansion to the business (Looy et al. 2004).  There is a relationship between the satisfactions and the expectations when the customers have the need then customers search for something (service or physical product) to overcome their want and when there are many items or services available in the market then they recognize the alternatives and select the best one according to their needs and circumstances and fulfil their needs and requirements, and in such ay the relation exist between these requirements and the satisfaction, when the company can become successful in recognizing these requirements and the facts and actual nature if their requirements then it become so easy for these organizations to provide them the suitable items and services. (Anderson, 2004).

2.3 Clients Satisfaction and Perception

The level of satisfaction after consuming the product and there is a positive influence of satisfaction on the growth and direct relationship exist between satisfaction and repurchasing of the product (Bhote, 2004).

Clients Level of Satisfaction  Client’s Loyalty due to satisfaction  Organizational Growth   

 

Expected requirements of clients Fulfilment of needs and want No difference between expectation and perceiving  
Repurchasing Reference groups Free marketing Testimonials   More revenue generation Expansion of business Long term relationships   

 

This above diagram showed a relationship between the client’s level of satisfaction and the loyalty and is also showed that loyalty is due to level of satisfaction and expansion of business depends on the loyalty of clients (Buttle, 2006). This diagram showed that customer level of satisfaction drives due to requirement meetings of the consumers when their expected requirements are fulfilled then the level of satisfaction achieved because when they got the products as per their problem solved features at good quality and available at cheap prices then the satisfaction after consuming will achieved and this is the first step towards the success. If in this situation the organization becomes failed in providing such items then the feedback is the best opportunity that the organizations can have to improve the features for obtaining the best outcomes by achieving the organization’s objectives. And due to this satisfaction the customers and consumers come again and again to buy the products and it will enhance the volume of the sales and revenue and in this situation the organizations make more profits and organization can grow and can expand the business. These loyal consumers become the strong references and they share their experiences with all other friends, colleagues and to the family and family friends and other attached persons and in this way a free marketing channel starts and without any cost organizational can capture more clients from the market to increase the revenue. In this way the satisfaction drive and trigger the loyalty when the organization offered the satisfaction with consistency and this loyalty become the cause of the expansion of the company.

There is a link between the expected quality of goods and services and the perceived quality of service and good, the level of loyalty has great influence on the expansion of the business, because due to increase in the number of repurchasing services and goods increase in the revenue and thus the growth and expansion is possible (Anderson & Mittal, 2005).

  • Clients perceiving and their expected quality of services

There is a difference between the client’s expectations and the quality that offered to clients especially in service providing companies and this difference is due to many reasons. There are many differences due to miss-understanding of the requirements can be generated more problems for the management in providing suitable solutions to the clients in well manners (Buttle, 2006).

The difference between expectations and the quality of services offered to the clients is mainly due to the misunderstanding of the higher level of management about the expectations of the clients the difference is due to distributional channels, client’s complaints handlings and communicational problems (Parasuraman et al. 2004).  

Gronroos, (2008) stated the solution of differences between the expectations of the clients and the offered quality of services, and described that the quality of services can be enhanced by modifying procedures and by implementing the new techniques by well equipping the staff and by designing and implementing marketing strategies by the business organization.

2.5     Quality of Services Offered to the Clients

There is a deep link between the revenue generating and the quality of services that the customer relationship management provides to its consumers in the hotel industry the revenue volume increase with the increases in the quality of products and the services and decreases with the decrease in the quality of services and this overall affect the long term objectives of the organization, but by having some specific attitudes and the skills the employees can perform in a better way as compared to unskilled workers (Gronroos, 2001). According to the Wilson, (2001) that there is another factors that is included in the quality of services and this is a way in which the organizations have a chance to refurnish their services and minimize the drawbacks in existed products and services through identification of bad factors. The customers who do not know about the system to make the complaints about any issue or problem is so high and if the organization left the situation as it is then it may be possible that the organization have no more longer relationship with its loyal clients and satisfied clients and it is also possible that the organization cannot be able to capture more customers from the market. This statement was supported by the scholars Yeung et al. (2002) stated that there is a significant population that do not know about the complaints system which is 77% and they remain unhappy due to very low quality of services and bad impression of the employee’s dealing in critical situation and the organizations who do not pay their attentions to handle these kind of issues may lose this significant portion of clients just due to minor mistake. But these organizations have another chance to improve the quality of services and the quality of products through handling and providing all the alternatives by having highly skilled and well trained workers with some communicational skills and the organizations can achieve more than one benefits in the form of loyalty and the improvements in the features of their products in high competition environment (Barsky, 2002).

According to the Barsky, (2002) that the organizations must consider all the activities that are related with the quality of services have direct relationship on the loyalty of the clients and this loyalty of the clients have direct relationship with the sales and expansion of the business, all the activities of the business organizations have also deep impact on the overall performance of the organization, and all the other activities from product designing, specifications, raw material, sales forecast, resource distribution, resources allocation these all activities have impact on the sales and growth of the business organization. And there are so many different ways to check the satisfaction and loyalty level to improve them through providing them the quality of services (Buttle, 2008). Whereas according to the Oliver, (2007) that the experience of the customers play its role in creating the loyalty and satisfaction, the satisfaction always comes through appropriate and excellent services. The sales frequency of the clients is always related with the past experience (Anderson, 2004).

  • Research Methodology
  • Methodology

The researcher will describe the research method that the researcher will use to conduct the research. Research method is the best way to carry on the research in an efficient way according to the aims and objectives of the research (Kahn & Cannell, 2004).

To collect primary and secondary data, to record them in a systematic way, after analyzing finding facts and making conclusion the researcher use research methodology to conduct the research in an effective way (Social research methods, 2008).

  • Population

The researcher will conduct primary research and will gather the primary data through distributing questionnaires among the customers and will conduct the interviews from management and staff members. The researcher main focus will remain on the CRM practices and the researcher will disclose the effective CRM policies that positively affect the sales and growth of organization.

  • Sampling

The researcher will select both ganders male and female of different ages like age range will be 18 to 50. The researcher will use effective way to select sample among the population. The researcher will select the best one method among Quota, random, systematic and stratified methods based on the advantages.

  • Data source

Case study as a research tool includes research, on spot watching the situation, making notes, record keeping in well organized way and conducting interview and meetings with staff members (Yin, 2006).

The researcher will explain the sources of data gathering while conducting the research the researcher will consult books, journals, electronic journals, and articles on different topics like marketing, role of customer relationship management, its effectiveness, its draw backs and the challenges. The researcher will also explain here in this section about the methods to keep records of data gathered in a sequence and well form in order to avoid from duplication. The researcher will also used newspapers, books, electronic books, different reports of companies and internet searching and all other sources will be explained by the researcher in this section.

  • Primary Data Source

The researcher will conduct interviews and meetings with staff members and will distribute the questionnaires among the customers to find out the effectiveness of CRM practices and the role of CRM in the success of organization.

Interviews and opinion from customers are very important is collecting primary research (Morgan, 2008).

  • Secondary Data Source

The researcher will gather secondary data through different sources like articles, journals, different reports regarding the research topic, news papers, books, electronic journals and books and the researcher will also use internet.

The data must be recorded in such a way to assure authenticity and avoid duplication (Yin, 2004).

  • Focus Groups

The researcher will also arrange the discussion form to the customers to find out the actual problem that create difference between expectations of clients and the offered services.

The researcher must consider focus groups to find out the solution and actual nature of the problem (Kitzinger, 2005).

  • Interviews

It is critical way to conduct the semi structure interview (Morgan, 2008). The researcher will use the semi structure technique to conduct interviews because in this way the results will be more reliable and this is useful way as compared to other techniques.

To obtain more reliability and valid result the researcher must use semi structure techniques (Neitzschman & Neitzschman, 2004).

  • Research Limitations

The researcher will describe all the limitations of the research in detail like time limitations and the budget and other if he will face.

  • Ethical considerations

The researcher will carefully conduct the research, the researcher will use proper ways to record data and will conduct research honestly and will avoid duplication, steeling data, and plagiarism. The researcher will avoid making his own opinion and will abide by errors and will keep secret all the secrets of the organization and the personal information of participants, and will never disclose the information to anyone.

  • Data Presentation and Analysis 

Tools: The researcher will record all the findings properly in table forms, the researcher will use excel sheets to avoid data duplication and errors in order to remain data valid and reliable. The researcher will use bar charts and pie chart to show the ratios and variable relationships.

  • Expected Findings

In this chapter the researcher will describe all the findings like

About the difference between the expectations of the clients and the offered quality of the services by the customer relationship management, the researcher will also focus on the reasons of this difference and will disclose those factors and will make necessary suggestions and recommendations to reduce the difference and how to improve the CRM strategies effectively in the selected organization.

  • Validity and Reliability

The researcher will abide by all the duplication and unnecessary questions, the researcher will use the questions relevant to the objectives of the research. The researcher will use such tools and techniques to bring more reliability and validity in the research conducting and results.

According to Nettom, (2008) Consistency and reliability are more important in research conducting.

The researcher will explain the plan in detail in this section in dissertation that which step will be involved in research conducting.

The researcher will bear all the expenses from his own pocket and will utilize all the available resources with the grant of organization necessary.

Reason and nature of problemX       
Designing questionnaires and conducting interviews        
Record keeping results and making analysis   XX   
Fact finding and analysis     X  
Week12345678
Research methodologyXX      
Review of literatureXX      
Discussion of focused people  X     
Observations  XX    
Contingency plan      XX

5.3 Contingency Plan

The researcher will utilize at the end last two weeks to remove errors with the help of supervisor.

In this chapter the researcher will explain about the problems and drawbacks of the research that he will conduct, the researcher will also make conclusions and will make suggestions to improve the CRM practices and suggestions to minimize the difference and to well equip the employees to handle clients facing problems to offer and provide them good quality of services to achieve organizational goals. The researcher will also explain that the objectives of research has been obtained and also trough the light on the positive impact of effective CRM policies on the organizational growth.

  • References and Bibliography
  1. Books and Journals

Anderson, E.W. (2004), “Cross Strategy variation in customer satisfaction and retention”, Marketing Letters, Vol. 5, Winter, pp. 19-30

Bennett, R. (2007), “Relationship formation and governance in consumer markets: transactional analysis versus the behaviourist approach”, Journal of Marketing Management, 12(12), pp. 417-436.

Buttle, F.A. (2006), “Word-of- mouth: understanding and managing referral marketing”, Journal of Strategic Marketing, 6, pp 241-54

Buttle, F. (2007), Customer Relationship Management: concepts and tools, Oxford: Elsevier Butterworth-Heinemann

Chen, I.J. & Popovich, K. (2006) “Understanding customer relationship management (CRM): People, process and technology” Business Process Management Journal, 9(5), pp. 672-688

Gronroos, C. (2006), “Strategic Management and Marketing in the Service Sector”, Sweden and Chartwell-Bratt: Bromley Student Litteratu ab Lund

Gronroos, C. (2008), “From Marketing Mix to Relationship Marketing: Towards a Paradigm Shift in Marketing”, Management Decision, 32 (2), pp. 4-20

Kahn, R. and Cannell, C. (2004), “The Dynamics of Interviewing,” New York: John Wiley

Kitzinger J. (2005) “Introducing focus groups”, British Medical Journal, 311, pp. 299-302.

Looy, B.V., Gemmel, P. and Dierdonck, R.V. (2004), “Services Management: An integrated approach”, 2nd edition, Essex: Pearson Education Limited

McAlexander, J.H, Kaldenberg, D.O. and Koenig, H.F (2004) “Service quality measurement”, Journal of Health Care Marketing, 14(3), pp.34-40.

McDonald, L. (2002) “Customer Relationship Management – An Overvie”w, Available at http://www.brillianceweb.com/betterwebdesign/tips_48.aspx, Accessed on July 30, 2006

Morgan D.L. (2008) “Focus groups as qualitative research”, London: Sage Publications

Neitzschman, L.H. & Neitzschman, H.R. (2004) “Service Management Strategy and Leadership in Service Businesses”, Chichester: John Wiley & Sons Ltd

Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (2004) “A conceptual model of service quality and its implications for future research”, Journal of Marketing, 49 (1), pp. 41-50

Sugandhi, R.K. (2004), “Customer Relationship Management”, New Delhi: New age International Publishers

Yin, R. (2004), “Case study research: Design and methods”,2nd ed., Beverly Hills, CA: Sage Publishing

Yin, R. K. (2006), “Case Study Research, Design and Methods”, 3rd ed. Newbury Park: Sage Publications

  1. Websites

Anonymous, “Research variables: Reliability and Validity of Measurement”, available on http://cbdd.wsu.edu/edev/NetTOM_ToT/Resources/Other/TOM614/page68.htm, [Accessed on 22nd March, 2012]

  1. Bibliography

Anderson, E.W. & Mittal, V. (2005), “Strengthening the satisfaction-profit chain”, Journal of Service Research, Vol. 3(2), pp 107-120

Bhote, K.R (2004), “Beyond Customer Satisfaction to Customer Loyalty”, New York: AMA Management Briefing

Denzin, N.K. and Lincoln, Y.S. (2008) Collecting and Interpreting Qualitative Materials London: Sage Publications

Evans, J. R., & Laskin, R. L. (2004) “The relationship marketing process: A conceptualization and application”, Industrial Marketing Management, 23(5), 439-452

Gummesson, E. (2004), “Broadening and Specifying Relationship Marketing”. Asia-Australia Marketing Journal, 2 (1), pp. 10-30.

Hallowell, R. (2006), “The relationships of customer satisfaction, customer loyalty and profitability: an empirical study”, International Journal of Service Industry Management, 7(4), pp. 27-42

Macintosh, G., & Lockshin, L. S. (2007) “Retail relationships and loyalty: A multi-level perspective”, International Journal of Research in Marketing, 14(5), 487-497.

Oliver, R.L. (2008) “Satisfaction: A behavioral perspective on the consumer”, Singapore: McGraw Hill

Zeithaml, V. A., & Binter, M.J. (1996), “Service Marketing”, New York: The McGraw-Hill Companies, INC.

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Published by MALI

Writer is post-graduated in Computer science, Business Administration, Marketing and Innovation. He has 10 years of business academic research writing experience.

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