Transcript CRM Implementation: A Case Study

CRM Implementation:
A Case Study
Presented by Jessica Chen
NCU
Background of Research Site
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Y3C group started out as a
manufacturer
Branched into the retailing sector over
10 years ago
Being a leader in the retail market
Chairman X
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“Wild hero,” pepper, domination,
innovative, aggressive, and perfection.
Domination
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To beat his rivals, he often filled the
marketplace with the lowest prices, which
forced others to follow suit.
Innovative
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Adopting new managerial fads quickly.
Adopting CRM
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External professional as the catalyze of
CRM initiation
CRM implementation cannot stop
Coercive power from company president
Information infrastructure for CRM.
CR marketing is in a state of virtual
neglect
Marketing Practice in Y3C:
Sprinting for No. 1
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Fierce Price promotions
Aggressive outlet expansion:
Intensive member
Quantitative-base performance
evaluation
Ceremonial Adoption of CRM
in Y3C
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Little resources were putted in CR
marketing
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Only one user, not dedicated in CRM
1 CR campaign/2 months
Most frequently used function—customer
listing
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ERP can do it too
Performance evaluation—none
Why CRM
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Focusing on quality more than quantity
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Customer loyalty vs. Market shares
Sales vs. profits
Efficiency
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Customer Knowledge
Customer contribution
Small target
Institutional-conflicts of CRM
Adoption
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Innovation vs. Internalization
Long-term goal and shot-term gain.
Management philosophy in service
industry vs. In manufacture industry
Property right
People come and go, new ideology
cannot be institutionalized
Rules
institutionalized in
organization
Conflict
Rules embodied
in CRM
CRM in Practice
Figure 1. Institutional Conflicts of CRM Adoption
Institutionalized Rules embedded in Y3C
Attracting customers, as many as
possible.
Rule 2:
Maximizing sales—quantity of
share.
“We need responsible to investor.”
Rule 3:
Outlets, sales, and affiliation
growth.
Rule 4:
One times profits—short-run
Conflict
objectives
Rule 5:
Put resource on key (maximizing
sales)(錢花在刀口上)
Only one person of Membership Management
Division is responsible for CR marketing
analysis; Marketing Planning Division is
responsible for mass marketing.
Rule 6:
“Old 5, New 7” human resource
principle.
Change out bottom 5% people of performance
two times every year and recruit 7% new persons.
Rule 7:
Efficiency—promotionally oriented
businesses.
Shotgun approach. Price-off promotion. Lowest Customer
Relationship
price guaranty. 0% rate. Inserts.
Paying tens of millions of dollars for ads on TV, Marketing
newspaper and reaching hundreds of millions of
Mass
people.
Marketing
Mass marketing leads to the lowest costs and
prices and create the largest potential market.
Institutionalized Rules embodied in Customer
Relationship Marketing
Rule 1:
Rule 1:
Retaining customers—quality of share.
Segmentation and differentiation. Concentrating on a
small market.
Rule 2:
Customer value growth.
Rule 3:
Maximizing response rate-quality of
share.
Focuses on long-run objectives. Focuses on increased
profits.
Rule 4:
Enduring profits—long-run objectives.
Rule 5:
Effectiveness.
A rifle approach.
CRM in Practice of Y3C
1. Ceremonial adoption.
Campaigns via CRM analysis are special cases. To
the contrary, promotional campaigns are routines.
2. Ceremonial group: executives and marketing
persons.
Assent adoption group: staff of Affiliate
Management Division.
Figure 3. Institutional Conflicts in Y3C’s CRM Adoption
Practice Adoption
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Practice adoption
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Implementation + Internalization.
Ceremonial adoption
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Practice adoption － Internalization
Implementation (action without mindsets
required).
Institutionalization/Internalization
in Practice Adoption
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Implementation
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Institutionalization/Internalization
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Expressed in the external and objective behaviors
and the actions required
A state in which the employees view the practice
as valuable and become committed to the practice.
The change from outer to inner regulation
Only when the values embedded in extrinsic
practice infuse into an individual’s ideology
and are smoothly and unconflictfully
exercised that internalization is complete
Conclusions
Institutions:
Quantitative-based
Evaluation (T1)
Institutions:
Qualitative-based
Evaluation (T2)
Institutions:
Quantitative-based
Evaluation (T3)
Mass
Marketing
(T1)
Customer
Relationship
Marketing
(T2)
Mass
Marketing
(T3)
Figure 2. Institution vs. Marketing Practice Evolution
Q&A