4. A CRM system is a customer relationship management cross-functional system that supports the business processes of attracting, selling, managing, delivering, and supporting customers. They support all of the direct value chain activities that involve the customer. They store all the customer data in one place, and make it possible to easily access all data about the customer.
The 1881’s competitive strategy was to market itself as a high end, 5-star B&B, offering luxury and concierge type services, and targeting high-end and affluent clients with corporate event offerings and executive retreats.
A CRM implemented at The 1881 could be used to support their competitive strategy in a number of ways;
1) Linking customer support applications to customer sales records to ensure that they can prioritize customers to avoid giving too much support to low-value guests and too little to high-value guests.
2) Sales management applications can support sales to existing customers. By utilizing the vast information base from the CRM, The 1881 can review purchase history and satisfaction, which will give them sufficient information to prioritize and allocate sales time and effort.
3) The CRM will track the sales data by customer and can help The 1881 attain a larger-picture view of the most valuable customers and guests and what their needs are. It will allow them the holistic view of seeing which guests may be dissatisfied (sparked by the cue of low recency) and the opportunity to win back those high-value customers.
4) The CRM will allow The 1881 to understand what sales trends are associated with the corporate event offerings and how they can best target those groups in order to upsell further services, such as executive retreats to returning customers.
5. A Value Chain is a network of activities that improve the effectiveness (or value) of a good or service. It is made up of at least one and often many business processes. Technology could help The 1881 in many of its business processes by ensuring support of its competitive strategy.
The primary activities consist of:
Marketing and Sales– implementing a CRM system and utilizing the information to facilitate targeting the existing high-end and affluent clients. Inbound Logistics–information systems will be able to predict sales patterns in the upcoming seasons and ensure that ordering for supplies and food is done efficiently and effectively so that there is very little waste and no shortages. Operations–Through accurate sales forecasts and information systems gathering prior period sales numbers and calculating what amount of staff is required for any given day, The 1881 could help regulate labour costs and eliminating overstaffing concerns for off-season times. Outbound Logistics- allowing guests to book concierge services online through their interactive website. This will allow for an added level of convenience for the guest, and reduced labour costs for The 1881. Service and Support- through utilizing the newly implemented CRM system, and allowing efficient tracking of guest satisfaction, technology can help ensure that any complaints stored within the CRM are effectively resolved.
The support activities consist of;
Human Resources – online training modules could help front line workers (the cleaners and chef) and Marlo to effectively handle guest concerns and situations that may occur. An example would be online modules for Marlo or any management staff in order to effortlessly upsell existing customers on added-value concierge services. Accounting and Infrastructure – the upgraded software will benefit the accounting processes, as it can help track the discount or incentive programs offered to particular guests. Procurement and Technology – an information system could track the costs and repairs of certain equipment and appliances, helping calculate the breakdown of subcontracted labour costs like maintenance and repair. This could allow The 1881 to better predict future costs as well as track warranty periods for equipment.