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Introduction to Customer Relationship Management

Question:

Analyse and Propose E-CRM enhancement practices for an organisation based on current best practices. The use of these practices will help develop knowledge among students in order to lead and guide Organisation to adopt the use of e- CRM and its benefits to an Organisation.

CRM or Customer Relationship Management is the systematic approach for the proper management of any specific organization’s interaction with their customers. This system helps in capturing vital information regarding the clients of the organization (Khodakarami & Chan, 2014). CRM utilizes analysis of data about the better improvement of business relationships with the clients. The main focus is given to the customer retention and growth of sales. The most important and significant feature of customer relationship management approach is the CRM systems, which helps in the compilation of data from various channels of communication. These channels mainly include electronic mails, social media, and website of an organization, telephone and even live chat (Choudhury & Harrigan, 2014). The systems are utilized for the facilitation of catering the requirements of clients. E-CRM or electronic customer relationship management is the incorporation of CRM with the help of internet. 

The following report explains about the customer relationship management or CRM of the internationally recognized and popular fast food restaurant, namely, Domino’s Pizza. The report provides a brief description on the mentioned organization with proper details. The significant analysis and explanation of the design of the website, e payment systems and e marketing systems are also given here (Stein, Smith & Lancioni, 2013). Moreover, the various applications of e CRM, improvements in the website of e CRM, e payment system and e marketing system are also provided in this report. Furthermore, the several challenges during CRM implementation are given here.

Brief Discussion on Domino’s Pizza Inc.

Domino’s Pizza Inc. is the largest chain of pizza restaurant in America that was eventually founded in the year 1960 (Domino's., 2018). The main headquarter of this particular organization is in Ann Arbor, Michigan, with the name of Domino’s Farms Office Park. Tom Monaghan and James Monaghan founded this popular chain of restaurant. They bought a small store of pizza in Ypsilanti Michigan in the Eastern Michigan University, namely, DomiNicks. In the year 1965, the organization was named as Domino’s Pizza Inc. The first international franchise of Domino’s Pizza was opened in Winnipeg, Manitoba, Canada (Domino's., 2018). It was recorded that by the end of the year 2014, Domino’s Pizza had grown to around 6000 locations worldwide. This organization has its own unique selling point or USP, that is, it provides a thirty minute delivery and if the pizza is not delivered within time, the organization is supposed to return the money. Moreover, to maintain a healthy relationship with their customers, they provide free delivery, without compromising with the quality of pizza (Domino's., 2018). Another most important and significant aspect of this organization is that it follows electronic customer relationship management for their business.

Overview of Domino's Pizza Inc.

Analysis and Explanation of Website Design, e Payment Systems and e-Marketing

Domino’s Pizza Inc. has the unique design of website that attracts most of their customers to order from the website. The main purpose of this website of Domino’s is to convey important and specific information regarding the organization to the customers (Siu et al., 2013). The products or the services that are provided by Domino’s are properly explained in the website and this is extremely important for all clients or customers to gain significant information. Domino’s Pizza has an excellent informative website that provides information about all the important features or aspects of the organization. Moreover, the price of the food is different in all countries according to the currency. Every country has its own updated website with updated price (Trainor et al., 2014). This extraordinary design of website makes the organization extremely popular in all over the world.

The second important feature apart from the website design is the e payment system. Domino’s Pizza Inc. allows e payment system in their organization. The customers do not have to pay the money via cash; rather they can pay with credit cards, debit cards or internet banking. The virtual money has become extremely popular and Domino’s Pizza allows this system (Saarijärvi, Karjaluoto & Kuusela, 2013). The only thing that is required for the online order is the internet connectivity and a device that supports internet connection. This device can be anything like a mobile phone, a laptop, a desktop, a tablet, a notebook and many more. All these devices allow e payment system in Domino’s Pizza Inc.

This particular restaurant chain does their marketing of the services and products in the procedure of e marketing. They do not believe in marketing their products by visiting the customers from door to door. They rather encourage electronic marketing or e marketing. They send emails to a specific group of people for sharing any commercial message. All the emails that are sent to any customer about the organization’s products and services are known as e marketing (H. Nguyen & S. Waring, 2013). This email comprises of advertisements, solicit donations or sales for the purpose of building trust, loyalty and even brand awareness. Domino’s Pizza Inc. sends these marketing based emails to their existing database of customers to new customers. Apart from emails, often pop up windows open up about the organization for marketing purpose.

Website Design of Domino's Pizza Inc.

The main and the most important feature of the organization of Domino’s Pizza Inc. is its customer relationship management. They maintain a good and healthy relation with the customers by giving significant products and services (Harrigan & Miles, 2014). Electronic customer relationship management or e CRM of Domino’s Pizza Inc. has various applications. The various applications of e CRM in Domino’s Pizza Inc. are as follows:

Emails: This is the most significant and important application of e CRM in Domino’s Pizza Inc. The customers of the organization can easily contact with the organization with the help of electronic mails (Assimakopoulos et al., 2015). They can put their queries in front of the restaurant and they can answer them back. Moreover, emails are answered within twenty four hours of time and this sincerity makes the organization extremely popular worldwide.

Customer Service: Customer service of Domino’s Pizza Inc. is given to the customers 24*7 and thus a healthy relationship is maintained with the clients (Soltani & Navimipour, 2016). The technical support of this organization is extremely low in cost and the number for contacting the customer service is toll free. Moreover, live chats are also available.

Sales Force Automation Solutions: These sales force automation or SFA solutions helps in streamlining the several phases of sales processes and also reducing the data entry manually (Nyadzayo & Khajehzadeh, 2016). The tracking system of the products is in built within this sales force automation solution.

The electronic customer relationship management or e CRM is done by making better websites, e payment systems and e marketing technologies. However, these above mentioned systems can be improvised with proper recommendations (Padilla-Meléndez & Garrido-Moreno, 2014). The recommended improvements for website of Domino’s Pizza Inc. are as follows

Faster to Load: The website of Domino’s Pizza Inc. should load more fast. Often the website gets slow and cannot take orders. This particular problem should be solved easily.

GPS Problem: Global Positioning System or GPS often cannot detect the location of the customer and the customer has to write his or her location manually (Baran & Galka, 2016). This often irritates the customers and can even affect the brand positioning of Domino’s Pizza Inc. They should fix this problem as soon as possible and maintain their brand name.

The e payment system of Domino’s Pizza Inc. often face problem in their existing system. The improvements of the e payment system are as follows:

E-Payment Systems of Domino's Pizza Inc.

Security: This is the most important and significant feature that comes in mind when e payment is done (Rahimi & Kozak, 2017). Domino’s Pizza Inc. should provide extra security to the system of e payment, that is when any type of transaction is made, there should not be any problem.

Implementation of Elliptic Curve Cryptosystem: The ECC or Elliptic Curve Cryptosystem provides extra security to the credit card or debit card transactions.

The e marketing of Domino’s Pizza Inc. can be improved by certain recommendations. They are as follows:

Increment of Website’s Visibility: The website of Domino’s Pizza Inc. should be more visible while searching and this will increase their e marketing (Laudon & Laudon, 2016).


Email Marketing: This is a specific part of e marketing. They should send emails to their existing or new customers for marketing of their organization.

The two e loyalty practices of Domino’s Pizza Inc. are as follows:

E Satisfaction: This is the most important loyalty practice of Domino’s Pizza Inc. The customers should enable this particular e loyalty so that their customers are completely with the products and services (Azad & Hashemi, 2013). This can be done with the help of technologies.

E Quality: The second most important e loyalty practice is e quality. The quality of the service and product should be perfect and this will help them to achieve their organizational goals and objectives.

Electronic customer relationship management or e CRM is extremely important for all organizations and thus Domino’s Pizza Inc. has implemented electronic customer relationship management in their organization (Leeflang et al., 2014). However, it has been noticed that in spite of having various important benefits or advantages, there are several challenges that are faced by Domino’s Pizza Inc. during the successful implementation of electronic customer relationship management. The major challenges or problems in the implementation of electronic customer relationship management are as follows:

Regular Up Gradation: E CRM is the extension of customer relationship management or CRM. The main difference between normal customer relationship management and electronic customer relationship management is that in e CRM, the relationship is managed electronically (Audrain-Pontevia, N’Goala & Poncin, 2013). As this is an extension of customer relationship management but electronically, there is an urgent need for regular up gradation. When this up gradation is not done properly, it becomes, extremely tough and difficult to maintain the customer relationship.

Huge Cost: The electronic customer relationship management or e CRM is extremely costly or expensive to implement within the organization. Due to the huge cost incurred, Domino’s Pizza Inc. faced exclusive problem financially (Soltani & Navimipour, 2016). However, they still managed for the successful implementation.

E-Marketing Practices of Domino's Pizza Inc.


Selection of a New Technology: The third problem or challenge that was faced by Domino’s Pizza Inc. was the proper selection of a new technology. Electronic customer relationship management works on the implementation and adaptation of technologies (Harrigan & Miles, 2014). When this technology is not adapted properly, the organization can face significant problems. The technology deficiencies like selection of vendor and shortfall in performance were the major challenges in technology selection.

Implementation of Customer Centric Behaviours: This is the fourth challenge that was faced by Domino’s Pizza Inc. during implementation of e CRM. The problems that included slower user adoption, poor training and management for working were also faced (Assimakopoulos et al., 2015). Since this restaurant was mainly based on customer, it was extremely important to focus on the customer centric behaviours.

Conclusion

Therefore, it can be concluded that customer relationship management is the specific approach for the appropriate management of any particular company’s communication amongst their clients. The systems are used for the proper facilitation of catering the requirements of clients. E-CRM or electronic customer relationship management is the incorporation of CRM with the help of internet.  The above report describes about the one of the most popular international restaurant chain, Dominos Pizza Inc. This report eventually discusses regarding the electronic customer relationship management of this particular organization. The design of the website, the e payment systems and the e marketing systems of Domino’s Pizza are also described here. Furthermore, the several e CRM applications, or the improvisations in the organization’s website, the system of e payment and the systems of e marketing are also given in this particular report. Moreover, the report has described about the various challenges or issues that are faced while e CRM implementation within the organization

References

Assimakopoulos, C., Papaioannou, E., Sarmaniotis, C., & Georgiadis, C. K. (2015). Online reviews as a feedback mechanism for hotel CRM systems. Anatolia, 26(1), 5-20.

Audrain-Pontevia, A. F., N’Goala, G., & Poncin, I. (2013). A good deal online: The Impacts of acquisition and transaction value on E-satisfaction and E-loyalty. Journal of Retailing and Consumer Services, 20(5), 445-452.

Azad, N., & Hashemi, S. (2013). A study on important factors influencing customer relationship management: A case study of Mobile service provider. Management Science Letters, 3(4), 1161-1166.

Baran, R. J., & Galka, R. J. (2016). Customer Relationship Management: the foundation of contemporary marketing strategy. Taylor & Francis.

Choudhury, M. M., & Harrigan, P. (2014). CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), 149-176.

Domino's. (2018). Corporate.dominos.co.uk. Retrieved 13 February 2018, from https://corporate.dominos.co.uk/about-us

Nguyen, T., & S. Waring, T. (2013). The adoption of customer relationship management (CRM) technology in SMEs: An empirical study. Journal of Small Business and Enterprise Development, 20(4), 824-848.

Harrigan, P., & Miles, M. (2014). From e-CRM to s-CRM. Critical factors underpinning the social CRM activities of SMEs. Small Enterprise Research, 21(1), 99-116.

Khodakarami, F., & Chan, Y. E. (2014). Exploring the role of customer relationship management (CRM) systems in customer knowledge creation. Information & Management, 51(1), 27-42.

Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education India.

Leeflang, P. S., Verhoef, P. C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European management journal, 32(1), 1-12.

Mainela, T., & Ulkuniemi, P. (2013). Personal interaction and customer relationship management in project business. Journal of Business & Industrial Marketing, 28(2), 103-110.

Nyadzayo, M. W., & Khajehzadeh, S. (2016). The antecedents of customer loyalty: A moderated mediation model of customer relationship management quality and brand image. Journal of Retailing and Consumer Services, 30, 262-270.

Padilla-Meléndez, A., & Garrido-Moreno, A. (2014). Customer relationship management in hotels: examining critical success factors. Current Issues in Tourism, 17(5), 387-396.

Rahimi, R., & Kozak, M. (2017). Impact of customer relationship management on customer satisfaction: The case of a budget hotel chain. Journal of Travel & Tourism Marketing, 34(1), 40-51.

Saarijärvi, H., Karjaluoto, H., & Kuusela, H. (2013). Customer relationship management: the evolving role of customer data. Marketing intelligence & planning, 31(6), 584-600.

Siu, N. Y. M., Zhang, T. J. F., Dong, P., & Kwan, H. Y. (2013). New service bonds and customer value in customer relationship management: The case of museum visitors. Tourism Management, 36, 293-303.

Soltani, Z., & Navimipour, N. J. (2016). Customer relationship management mechanisms: a systematic review of the state of the art literature and recommendations for future research. Computers in Human Behavior, 61, 667-688.

Stein, A. D., Smith, M. F., & Lancioni, R. A. (2013). The development and diffusion of customer relationship management (CRM) intelligence in business-to-business environments. Industrial Marketing Management, 42(6), 855-861.

Trainor, K. J., Andzulis, J. M., Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), 1201-1208.

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