Measuring Effectiveness of Customer Relationship Management strategies in achieving customer loyalty A Case Based Study of Nandos UK (Kings Cross Branch)
Introduction:Businesses has grown on fast pace in last few decades. This rapid growth in business ha snot only increased the competition but also provided the customers to choose from the products .increased competition and market uncertainty has left organization to think the ways to retain and attract more and more customers. Wining the heats and minds of customers is now the ultimate goals of much organization to earn profitability. (Kicaid, 2003) It is because organizations know a satisfied customer can refer many new customers to them with no cost of marketing. Customer relationship Management is concept of delivering best customer services in order to retain customers for long time in other words customer relationship management is name of customer satisfaction that makes customer to buy again and again from same organization. Customer relationship is built and maintained through relationship strategies utilizing latest IT concepts that help in delivering better customer services. Increased used of internet and computers has forced organization to invest in IT based applications to not only facilitate their customers but also to use IT application to help customers serve in better way. (Gummesson, 2002) “CRM is an IT the outcomes of which optimize profitability, revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviours and implementing customer-centric processes”.(Peelan.2003)
Fig (1.1) CRM Growth trends
According to Gartner survey significant growth in spending on CRM in past few years CRM software related investments were $7.8 billion in 2008 with 14.4 % increase from previous year. This healthy trend is expected to reach $13.3 billion by year 2012. The investors remained positive despite economic meltdown
Achieving customer‟s loyalty is long term thing and effects of implementing CRM strategy is not tangible. So it is complex task to effectively measure the Effectiveness of CRM strategy and customer loyalty. Complexity exist when evaluating intangible benefits like loyalty of customer, quality of service, enhancement of value, processes effectiveness, innovation of operation, improving the services Effectiveness of processes, innovation of operation, service improvement, competitiveness, trust, and efficiency etc (Peelan,2003)
The most widely used and popular methods for investment evaluations are accounting and financial methods which only depends upon cash flow and counting the customer inflow . These are only suitable for limited type of evaluation of business performance. These accounting methods cannot be
effectively used in evaluating investment which is expected to gain benefits in intangible and indirect form. (Righby & Landigham, 2004) By evaluating effectiveness of crm strategy a business can be improved on the bases of results and necessary changes can be adopted .CRM implementation also enable customer services department to perform effectively according to their expectation. According to Customer Think Corporation, 68 % of customers leave their seller due to bad customer service experience. So the importance of CRM and its performance evaluation cannot be done/This Poor development Of Marketing Performance measurement is due to complexity in measuring and assessing results from implementing marketing strategies. Especially it is difficult to elaborate impacts on customers of specific strategy (Hanssens, 1999)
Objectives:(1) To Critically evaluate theory of CRM strategies and its role in achieving customer loyalty (2) To Analyze current CRM strategies adopted by Nandos UK (3) Evaluation of effectiveness of CRM strategies adopted by Nandos UK (4) To Provide recommendation for effectively implementation of CRM effectiveness measurement
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