Customer Relationship Management: Importance, Methods, and Strategies

Scenario

You are working as a trainee Customer Services Manager in a large online retail business.  The business has grown rapidly and whilst turnover and profits are increasing, so are the number of customer enquiries and complaints. The Customer Experience Director wishes to improve the customer relationship management processes at the business and has asked you to participate in a team of staff working on a CRM project.  By using a team approach the Director hopes to understand the views of a range of staff and will then use the staff to help embed any changes to working practices.

Activity 1

In preparation for a team discussion prepare a document for distribution to the rest of the team, which provides an overview of the importance of customer relationship management to business.

• explain the key features of customer relationship management
• analyse the benefits of good customer relationship management to businesses
• analyse the impact of quality management systems on customer relationship management

Assessment Criteria

Evaluate the methods used to measure customer satisfaction

Activity 2

The Director has asked for a report to help the team understand how good customer relationship management is achieved.  You have agreed to prepare a draft for the rest of the team to read.

• evaluate the processes necessary for achieving effective CRM
• assess the role of internal staff in achieving effective customer relations experiences
• assess the role of external stakeholders in achieving effective customer relations

Assessment Criteria

To achieve a Distinction you must also:

Analyse the impact of employee engagement on customer relations experiences (AC 2D1)

Activity 3

The Director was pleased with the detailed and professional report produced by the team and noted your contribution. She is very interested in exploring the possibility of using loyalty schemes to improve customer relationship management. She has asked you personally to investigate loyalty schemes in detail and to prepare a briefing paper for her to consider.  

Your briefing paper should:

• analyse the use of loyalty schemes to gain information about customers
• explain how the information gained is used to inform business decision making

Assessment Criteria

To achieve a Distinction you must also:

Evaluate methods used to segment customers as part of a customer relationship management process in a specific organisation (AC3D1)

Activity 4

The Senior Management Team has been keeping up to date on the progress the CRM team is making. They have been impressed with the work so far.  In preparation for making some strategic decisions on CRM each member of the team is asked to choose an organisation they know well and prepare detailed notes which:

• review customer relationship management in the chosen organisation
• propose improvements to processes for customer relationship management
• propose improvements to the role of staff in promoting good customer relationships.

Then on the basis of this information individual members of the team are asked to produce a plan for the implementation of the improvements. Produce your own plan to implement the improvements you have proposed.

Assessment Criteria

To achieve a you must also:

Gain feedback on your plan and make appropriate amendments. (AC4M1)