The Role of CRM in increasing sales volume in Super Markets

All the organization both they belongs to profitable or non profitable, have their own aims and objectives set by the higher management and all the workers agreed to achieve those all objectives (Bennett, 2010). There are two types of products tangible and non tangible, tangible products are products those have physical existence and occupy place and have weight and other characters as well and the non tangible products means services like to provide facilities to others (Chen and Popovich, 2008). Business organizations have their aims and objectives to become market leader, to earn more profit and to increase their sales volume and establishing their relationship with their clients as well (Cronin and Taylor, 2007). The employees have been allocated different resources like machinery, skills, authorities, finance, human resources as well and other secrets and formulas and all other related and necessary resources to carry out their daily assigned duties and tasks to achieve the company aims and objectives. Some scholars have been stated that to achieve company goals and objective it is necessary to pay full attention at their clients relationship if there exist a strong relationship between company and clients then the company will achieve all its objectives and if the relationship is weak then there will be no transaction (Dimitriades, 2010). According to Olorunniwo et al., (2007) that customer relationship management can build strong relationship between clients and company and this department can also play role in achieving organizational objectives because there are so many characteristics of this department, whereas some scholars have been concluded that instead to pay attention at this department the organizations should consider clients and employee’s and focus them instead of customer relationship management (Sheth and Parvatiyar, 2010). Whereas some scholars have been stated that all the business operations are linked up with the customer relationship management strategies in business operations and the main objectives of this department is to implement business operations in smooth working effectively and efficiently in achieving organizational objectives (Ehrenberg, 2005). Some scholars also supported the above statement by saying that sales is directly proportional with the market share and CRM is most suitable and effective department in capturing the market share (Megicks, 2011).

1.2      Problem/Issue

All the business organizations in the world focus their customers for their growth and for making profit because they know that the sales volume and the profit margins are directly linked with the number of clients. In the same sector and industry all the business organizations are offering their products like household items, office stationary, mobile vehicles, Mobile Phones, cloths, kitchen items even then electricity related items all the manufacturing companies are offering their items and capturing more market shares and the ratio of market share is depend on the business strategies. Most efficient and effective strategies always attract more customers from the market (Sheth and Parvatiyar, 2010). Basically customers have needs and to fulfill those needs the companies conducts surveys and makes researches and based on the results the manufacturers design and develop the products and services. The customers always attracted towards those items which are available and are as per their needs and wants and there is minimum difference between their demand and available products and price, quality factors always play their role as well, so social responsible organizations have the opportunity also to capture those clients and some time some people only attracted by the quality and some people attracted by the low price. Here the problem is to capture more market share to achieve organization objectives. Some scholars have been stated that the customer relationship management can contribute effectively in achieving company goals more effectively by recognizing client’s needs and their demands. So this problem of capturing more clients in competition environment where all the companies in the same industry are trying their best to capture clients is more important and the researcher will find out the importance of CRM role in achieving those goals. Gilbert and Horsnell, (2006) have been stated that loyalty and satisfaction can be created among customers by CRM policies and sales volume can be enhanced.

1.3      Aims and Objectives

Main aim of this research is to find out the role of customer relationship management in super markets (on sales volume and market share) in United Kingdom and the researcher will select ASDA super market as case study tool to conduct the research.

1.4      Research Question

Do supermarket managers believe in customer relationship management impact on the sales and market share or not?

Research Title:

The Role of Customer Relationship Management in increasing sales volume in Super Markets in United Kingdom (A Case Study of ASDA Supermarket)

1.5      Objectives

The researcher has discussed above the research question and aims and to achieve the above stated aim the researcher has further divided it into different objectives.

The researcher will find out the benefits of CRM in United Kingdom Superstores

The researcher will disclose the relationship of CRM department with other departments and will find out its relationship with sales

The researcher will disclose the factors those can play and must be taken into consideration by the CRM department and organization while designing business strategies in capturing market share and manufacturing and delivering products

The researcher will also find out the relationship between the client’s and CRM department and its influence of the clients

The researcher will find out the factors those can contribute effectively in creating loyalty and satisfaction among the customers

The researcher will also find out the problems and issues related with the CRM strategies and also conclude the drawbacks of CRM

Finally the researcher will also make some recommendations and suggestions for the selected organization to improve its business strategies to obtain the goals and objectives.

1.6      Study Scope

CRM department can play its role in capturing clients from the market and organizations have the opportunity to make more sales and profits and in this way the organizations can be able to make growth and can sustain their growth. So the role of CRM department is so effective and companies can be benefited by applying these departmental strategies in the business operations. The companies can also save their resource wastage and save also reduce the cost and then competitive advantage can be obtained by the organizations. The business organizations can be more benefited and they can get more advantages by implementing CRM strategies. The organization can adopt the CRM strategies to enhance their sales and to enhance the ratios of their market share. The organizations can recognize the client’s needs and can be able to manufacture the products and services as per market requirement and can save the resources in effective way.

1.7      Limitations

There are some limitations with this research so the researcher will also explain these limitations in detail which includes time being student the researcher has limited time to conduct the research and as the researcher will select only one organization as case study tool rather than more than two this is because of time shortage. The researcher already has no idea of conducting research. And the finance budget is also limited because being student the researcher will bear all the cost by his means. 

1.8      Ethical Consideration

For valid and reliable primary and secondary data the researcher will consider all the ethical considerations which involve electronic books, electronics articles and electronic journals and companies’ websites and other books related with customer relationship management and for the validity and more reliability the researcher abide by the unfair means to collect secondary data. The researcher will not get the help from colleagues and class fellows and will not copy data from colleagues’ work. Sheth and Parvatiyar, (2010) has been stated that for valid and reliable data there should be no duplication of data and researchers must keep into considerations. It is ethically importance on the researchers to keep secret the respondents detail involved in research (Olorunniwo et al., 2007). So for more validity and reliability the researcher will use percentages, proportion and bar and pie charts to show the relationships and associations among different variables, some scholars have been stated that researcher must use tables and charts to show the relationship among different variables (Bennett, 2010).   

Task #2

2.1      Introduction

The researcher will describe the research methodology. The researcher will describe the research technique, research tools and source of primary and secondary data and recording and analysis tools, more the researcher will also describe the data presentation, sample technique and research methods will also be discussed by the researcher. Research method is important components of researches which provides the way and lead the researcher till the conclusion and recommendations along with the main aims and objectives of the research (Bennett, 2010).

2.2      Research Method

The researcher will adopt qualitative and quantitative research methods to conduct the research and the researcher will conduct interviews with the management (CRM department) and will distribute the questionnaires among the respondents (customers). Qualitative and quantitative research method are both have importance and the researcher has no experience of conducting research, the researcher has financial and time limitations and the small number of respondents will be selected so the qualitative and quantitative methods  will be adopted by the researcher (Chen and Popovich, 2008).

2.3      Population and Sample Size

All the customers and CRM departmental staff is the populations and the researcher will select the samples by using systematic selection approach. Systematic approach is more suitable techniques because the researcher can get valid and more reliable results and there no bias can be included by the researcher, so every 5th customer will be selected by the researcher, it will save the time and finance as well. And about 80 total samples males and females with 50% ratio and age range 19 to 55 years old will be selected by the researcher. When the researcher has no past experience then most suitable way is to adopt systematic method to select samples (Cronin and Taylor, 2007).

Respondents (Male)Respondents (Female)TotalAge Range (Years)
40408019-55
50%50%100% 

2.4      Case Study

Due to research limitations the researcher has been decided to select ASDA super market store as case study to conduct the research by using its research methods. The questionnaires will be distributed among the customers and CRM staff members will be interviewed by the researcher. When there is short time to conduct the research, then case study is the best way to conduct the research (Dimitriades, 2010).

2.5      Secondary Data Source

The researcher will gather valid, effective, most reliable secondary data and for this purpose the researcher will use electronic books, electronic journals, ASDA website, and other reports and use books and journals to collect secondary data. Faullent et al., (2011) have been stated that newspapers, books, journals, annual CRM reports, digital data, are useful and valid source of gathering secondary data

2.6      Primary Data Source

To gather primary data the researcher will use questionnaires and will conduct semi structured interviews. Sheth and Parvatiyar, (2010) have been stated that most suitable source of gathering primary and secondary data is questionnaires (open and close ended questions) and the researchers must conduct semi structured interviews.

2.6.1    Interviews

Gronroos, (2005) has been stated that interviews are most important and highly validity and reliable source of gathering primary data. Semi structured interviews are the best way to conduct interview and in this way the researcher cannot include his/ her opinion and the respondents always respond exact answer and could not mislead the researcher, and the researcher must prepare the questions as according to the aims and objectives of the research (Ehrenberg, 2005). Semi structured interviews technique is the most suitable and reliable way to gather actual nature of problem that leads the researcher to the conclusion as per the specific aims and objectives of research (Feagin et al., 2005).  

2.6.2    Questionnaires

Questionnaires is a good technique to gather primary data and if the researchers include close ended and open ended questions then the validity and reliability can be enhanced. Jones and Sasser, (2007) have been stated that most reliable and cheapest way to gather reliable data is the questionnaires. Gilbert and Horsnell, (2006) have been stated that it is highly recommended that open and close ended questions must be included in the questionnaires. The researcher will include both open and close ended questions in the questionnaires to obtain the primary data. Kandampully and Suhartanto, (2005) have been stated that it is the effective way to save the cost and time to design questionnaires to gather valid and reliable primary data.

Task # 3

3.1      Review of Literature

Jones and Sasser, (2007) have been stated that sales has a relationship with customer’s loyalty and satisfaction and the happiness can be created by the CRM department among the clients, if the CRM department can be successfully develop and implement the effective and suitable strategies in the organization. Chen and Popovich, (2008) have been stated that there are some factors those change the needs and wants of people in a society which includes technology, culture and trends. Cronin and Taylor, (2007) stated that customer relationship management can be helpful in identifying the change and can be helpful in manufacturing products and services as per client’s requirements, but some of the scholar Dimitriades, (2010) has been stated that it is not necessary for the organizations to maintain the customer relationship management department in operation because the organizations can meet their goals by considering their employee’s and customer welfare being social welfare. Ehrenberg, (2005) stated that the organizations must reduce the cost to offer financial advantages and benefits to the society and customer relationship department means high cost and it will increase the price and customer may have to pay more cost. More resources more cost and the cost is always paid by the customers (Faullent et al., 2011). The organizations should focus the employee’s welfare and provide them more facilities to increase their productive level to gain objectives rather than to spend money on customer relationship department for building strong relationship with customers (Feagin et al., 2005). The organizations must pay their attentions to adopt advance technology and latest procedures to reduce the cost rather than to establish customer relationship management in the business and the objectives can be achieved in this way (Gilbert and Horsnell, 2006). Some scholars pay their attention on the importance of customer relationship management by saying that it is the only department that can increase the sales volume and can identify the people needs and requirement and organizations can be more benefited if they have CRM department and implemented its effective strategies as a part of business operations (Gronroos, 2005). And this statement has been supported b the Jones and Sasser, (2007) that customer relationship management has the ability to reduce the wastage of resources and in this way the cost can be reduced and significant results can be expected. Kandampully and Suhartanto, (2005) have been stated that rather than to spend a huge amount on the CRM department the organizations can pay their attention on the welfare of employees and the more productive level can be achieved and in this way the organization can meet its targets. It is not easy task to identify the actual nature of client’s problem and requirement and only the skilled and professional employee can understand (Looy et al., 2007). There is a relationship exist between profit and market share, similarly the relationship exist between the loyalty, satisfaction and customer happiness and market share, means more loyalty more market share and vice versa, similarly loyalty and happiness are related with the organizational business strategies (May, 2005), so in a result the organizations must review and develop the business strategies and especially focus the products features and keep into considerations the price and people need to increase the market share (Macintosh and Lockshin, 2008). But some scholars Cronin and Taylor, (2007) have been stated that through loyal employees the organizational objectives can be achieved in better way and in this way the organizations need to pay more attention on employee’s welfare rather than CRM department. Chen and Popovich, (2008) have been stated that happy and loyal customer will bring and will motivate his friends, colleagues and family members and will share his or her happiness and satisfaction among all the friends, family and colleagues and in this way they will also come and buy those products and ultimately the sales volume will become high. The angry customers have worst impact on the business transactions and they can harm the business in worst ways (Bennett, 2010), so it is very important for the organizations to create happiness among the clients (Chen and Popovich, 2008). The organizations only have a way to establish customer care services and also have the skilled equipped professionals to handle the clients and can create happiness and loyalty among them by identifying their problems and requirements  (Cronin and Taylor, 2007) and sales volume can be increased if the CRM representatives perform their job in effective way  (Dimitriades, 2010). Ehrenberg, (2005) has been stated that CRM department can play its role in increasing sales volume and the skilled and professional employees can handle angry clients as well and can create happiness and satisfaction among the customers. It is not an easy task to find out customer’s actual nature of their problem and to create loyalty and happiness among them, because customers have no time to waste to make complaints and visit regularly because they avoid wasting their time and in this way the organizations can lose business (Faullent et al., 2011). But the solution can be provided to the customers when they inform the responsible about their complaints and their problems, and it is the only customer relationship management department that can provide these facilities even then if the customers do not want to come in the stores physically then the CRM representatives have the other means to make a contact with the customers to take their feedback and in this way the loyalty and satisfaction can be created (Feagin et al., 2005). Customer relationship management can play its role in achieving organizational objectives effectively and efficiently and this department is responsible of creating happiness, loyalty and satisfactions among the customers through proper investments and through professional employees and by having proper means by adopting latest technology and procedures (Gilbert and Horsnell, 2006). Gronroos, (2005) customer’s expectations can be easily determined by the skills staff members of customer relationship management and the expected services and products can be offered to them. The market share can be enhanced if there is loyalty and satisfaction can be created among the customers through effective and efficient CRM departmental strategies (Helgesen, 2009). But Jones and Sasser, (2007) have been stated that companies can also capture more market share if the companies successfully honour their promises with the customers. It is not easy task to build and maintain the effective and loyal relationship with customers but customer relationship management can also build and can maintain the relationship with clients based on their progress and their strategies (Kandampully and Suhartanto, 2005). Different customers have different needs and problems and some of them needs quality and some want low price so it is not been possible for the employees to identify those needs and requirements so the CRM department has the solution for this problem (Looy et al., 2007).  Macintosh and Lockshin, (2008) stated that the only customer relationship management can provide the expected quality and products at the expected price to the customers to create loyalty to obtain company goals.

3.2      Conceptual Framework

Company Aims and Objectives (Long term and short term)   

Experience leads results, results leads satisfaction and loyalty, Loyalty leads towards Resale  

                             

 

Form the above scholar statements and the figure showed the flow of work, and it has been explained that customer relationship management has positive impact on the companies. The scholar’s statements and their arguments in the favour and against the customer relationship management showed the importance of CRM departmental activities and its role in achieving company aims and objectives, through the review of literature it is cleared that the identification of customers requirement cab be possible and the customer’s can avail the products and services as per their requirements.

Task # 4

4.1      Data Presentation and Analysis tools

Here in this section the researcher will show the primary data and its results and the researcher will explain the relations and associations among the different variables. The researcher will use tables (columns X rows) to show the responses and then in Pie and Bar charts the results will be showed by the researcher. The researcher will also use SPSS software to find out the mean, median and probability as well. Looy et al., (2007) have stated that tables are arrangements of columns and rows that prevent the researchers to duplication of data record and increase the validity and reliability of data.

4.2      Expected Findings

The researcher will find out the positive impact of the customer relationship management and its strategies on capturing, retaining, creating loyalty, happiness for increasing more market share and will also find out the issues and problems associated with the CRM department in the selected organization. The researcher will also find out the factors those can play their role in increasing loyalty, happiness and satisfaction and to identify the client’s needs and wants as well. The researcher will find out the benefits of CRM department and its major issues and its other problems while implementing its strategies into actions with business operations. Finally the researcher will also find out the importance of CRM department with sales and growth prospective. The researcher will also explain the results and will relate those results with the scholar’s statements to prove the importance of CRM department as a beneficial for the supermarkets stores in United Kingdom.

4.3      Validity and Reliability

Reliability and validity means that the procedures were accurate, the samples were genuine and the researcher opinion is not included in the data and the quality of data is up to date and no old scholar statement has been included and no unrealistic means and unfair means has been used in the whole process of gathering data and conducting research. The researcher will also explain the gathered data reliability and validity in this section.

4.4         Table 1(Forecasted resources and cost)

Serial #ResourcesExpense (£)Total Expense (£)
1Fair and papers, CDs’ and software300300
2Lunch70370
3Other expenses130500

4.5         Gantt Chart

ActionsTime Slice in Weeks
Identification of problem/IssueX         
Aims Objectives and Research QuestionsXx        
Review of Literature xx       
Questionnaires and semi structured Preparation  xx      
Number of Weeks12345678910
Primary data Gathering    x     
Data Recording, Analysis     xx   
Data presenting and making conclusion and recommendations      xx  
Contingency Plan        xx

4.6      Contingency Plan

The last two week have been reserved by the researcher to make necessary corrections as per supervisor instructions and guidance if need.

Task # 5

5.1      Limitations and Conclusion

Here in this section the researcher will first of all discuss the limitations associated with this research and then the researcher will discuss the methods adopted by him to reduce those limitations. Then the researcher will make the conclusion and will discuss the outcomes and in the light of review of literature and results. The researcher will discuss the positive influence of CRM department and its strategies and will relate the necessary scholar’s statements as well. And finally the conclusion will be explained.

5.2      Recommendations

Here in this section the researcher will discuss the weak areas of selected organizations and factors and finally will design the recommendations for the selected organization to improve the weak areas and will discuss the issues and problems and their solution as well. Positive recommendations to improve the strategies implemented and redesign the necessary strategies for the positive impact will be discussed by the researcher in this section. Those recommendations will include creating the loyalty and happiness among the clients to achieve organization’s goals positively.

5.3      Further study

At the end the researcher will explain the further factors that must be undertaken the considerations by the researchers to conduct the research for more positive impact and role of CRM department for more benefits will be discussed.

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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