Task 2: (solely base on morrisons in the case study)

Bus354 Customer Relationship Management : Assessment Answers

Questions:

Task 1:

Brief overview of Morrisons, its Business environment & relationship marketing they are in in the case study. It should be present the issues to be discussed and the order in which they will appear.

Relationship marketing and customer retention

1. Evaluate how relationship marketing can help to retain customers.
2. Application of Key customer relationship managements CRM models (Theoretical and not referring to Morrisons in the case study)
  1. Between relationship marketing and customer retention what is their similarity.
  2. Why, What & How is that useful to use this model to retain customers
  3. Why are model useful to evaluate.

Evaluation of customer relationship management process

1. Using IDIC Model to evaluate Morrisons in last time base on the case study.
  1. Identifying: Did Morrisons identify their customers in the case study?
  2. How well is Morrisons identifying customers?
  3. Compare with Morrison’s competitors of their current situations.
  4. Discuss areas for recommendation where Morrison in the past.
  5. Compare and Contrast in critical writing (Issues & Comparisons)
2. Evaluate how effective Morrisons is in retaining its customers compared to TWO Main UK competitors currently.
3. Flexibility to use a variety of models such as Gummeson, Peppers and Rogers etc. to Evaluate and recommend best practice.

Task 2: (Solely base on Morrisons in the case study)

Why and how Morrisons need to create value proposition for customers in case study.

Morrisons’ customer value chain and value proposition (Only case studies on theory)

1. Application of Customer value chain (CVC Model)
2. Focus upon the 5 primary stages of CVC as outline by BUTTLE
3. If Morrisons had applied CVC on case study, have they done well? If not good enough, suggest full recommendation.
4. Outline how Morrisons could apply Relationship Marketing concepts in order to increase the total value propositions of the new loyalty card.
5. Loyalty card in case study = value proposition (7Ps) focus only those relevant in the case study.

Answers:

Task 1

Introduction

Relationship marketing

Customer Relationship Management (CRM)

There are three CRM models which can be used in businesses, these are the IDIC model, CRM Value Chain Model, and QCI model. IDIC model is the most used approach in customer relation. The concept was developed by Rogers and Peppers. This model advocate for the usage of interaction, identity, customization and differentiation to keep and building long –term relationship with the customers. Business needs to identify the real customers and their taste and preference in order to serve them profitably. Once customers are identified, the managers of the business should differentiate the based on need and value. Customers value in the business vary, some have immediate value while others give business value after a period of time (Masoom, 2012).

In IDIC model, customers are categorized based on the need they have during transactions with business. Realization of these different needs gives business operators a better point of interaction with the customers. Companies ought to value customers need and value, this can be enhanced by interaction with customers either physically or by the use of technology. Calling and requesting customer feedback makes them feel valued and appreciated and gives them an impression of business want to satisfaction. When customers values and needs are differentiated and constant interaction is given, then the business should customize the service and goods. Customization gives conviction of ability to meet customers’ needs (Kamakura, 2005).

Customer Relationship Management process (IDIC)

Morrisons also provides 1000 new people to join next year. This planning has made Morrison satisfied in recent past when they were awarded the Grocer Gold Award, “Employer of the Year.” The business of Morrison has just been grown keeping the following improvements in line with their strategies. Morrison has invested in the following area:-

Information to Customers

By providing customers better information, a business can make its customers loyal to its name and ultimately to its products. Information can also be in other ways like in business places, in stores, directions and signs may help customers avoid from getting betrayed.

Specialist Attention

After-Sales Service

Convenience

Asda and Sainsbury are the cheapest supermarkets in the UK. But Still, Morrisons are earning respect. The best thing that Morrison would never be willing to lose is their Products’ Quality. The Quality of the products which they sell is the best one in the area of their service. The other that is helpful to Morrison are the areas of Improvements in which Morrison has always been willing to invest. Like they are always willing to inform the customers, offer specialized services and readily access to the customers.

Morrisons shall always be willing to use the Model that suits best to their customers’ reliability over them. They shall be willing to use Gummeson, IDIC models but the ultimate objective shall be to achieve the target of Customers Satisfaction. The better the Customer Service, the better the business would grow. To ensure better customer service, there is a need to establish better Relationship and environment in business premises. Morrisons offers training and development opportunities. The company has specialized in in-store butchers and bakers ensure specialized services to the customers.

Conclusion

Task 2

Introduction

Morrisons’ customer value chain and value proposition

The principle of CRM value Chain has identified five steps which lead to the implementation of the CRM strategy (Buttle, 2016). These are the five primary stages as identified by BUTTLE are

(I)-Customer portfolio analysis,

Company network involves people who are involved in the daily running of the business. They can be internal members or external contributors such as partners of the business, supplies or even the investors in the business. The network operates harmoniously to create of contributing to the value proposition of customers. To do a CVC analysis, the concerned should identify and manage the relationship of company and the network members.

(iv)-Value proposition development

An evaluation of the company operations, the Morrisons business appreciated the CVC strategies. At the exit of the business, the customers are regularly requested to fill comment forms which depict their experience in the shops. This qualitative approach is used to measure the business position in customer satisfaction and gather opinions on the possible areas to improve. This is basically a major component of customer portfolio analysis. The management has devised ways of managing customers by rewarding regular petrol consumer in the shops. This strategy makes customers be loyal and retained. HOT initiatives make regular buyers have offer times in the shop. By so doing, the Morrisons shops manages customers’ lifecycle effectively.

Morrison’s businesses have developed one team approach. This strategy focuses on the creation of a network in the business. Correlation of workers ensures that there is minimal competition in the departments and that all efforts in the business are channelled to customers satisfaction hence profit in the business. The staff who are recruited are also given the needed training to ensure competence in service delivery. Skilled workers can easily create and develop the customers’ intimacy (Zucchi, 2014).

Value proposition (7Ps)

The products sold at the Morrisons shops are of high quality and this gives the business an advantage over the competitors. The food at the shops is always fresh giving customers an attraction. However, the price of a commodity in the shops is relatively high compared to Asda this exposes the Morrisons to a competition. The shops have parking place for the card holder, this makes them have convenience for shopping. Regular promotion by the business gives it frequent customers. The HOT initiative serves to retain frequent buyers. Attendees of clients in the Morrisons shops are specialist butchers, bakers, and fishmonger. This guarantees quality service to the customers and finally, the location of the business ensure one stop shopping. It is true that the 7P’s are well applied by the management (Funck, 2017).

Conclusion

Morrisons need customer value propositions, they are incurring consumer wrath by projecting somewhat bread on Angel of the North, if they start addressing what value means to the consumers, they could enhance the value propositions (Billingto, 2009). The benefits which are assumed by the customers should be maintained and ways to bring new clients in the business should be expanded. The price of products from the shops should also be revised to ensure the competition from Asda and other marketers is reduced to reasonable levels. However, it does need some marketers to figure out a differentiated value proposition. Although Morrison is the best supermarket in the UK and every act of the business ultimately proves a value addition to the Store.

References

Richard, G., 2007. Catalog of Copyright Entries. [Online] Available at: https://onlinebooks.library.upenn.edu/cce/1966r.html [Accessed 03 05 2017].

RMN, M. L., 1995. Staffing Levels and Selection. Journal of advanced nursing, 22(6), pp. 1019-1223.

Funck, C., 2017. 7Ps serie – part 1: Are you applying the correct value proposition for your business?. [Online]Available at: https://webreserv.wordpress.com/2017/02/23/are-you-applying-the-correct-value-proposition-for-your-business/[Accessed 29 05 2017].

Masoom, M. R., 2012. Effects of Relationship Marketing on Customer Retention and competitive advantage. [Online]Available at: https://pdfs.semanticscholar.org/223c/18d15e82813c3471790166877db5781e117f.pdf[Accessed 29 05 2017].

Zucchi, K., 2014. The Basics Of Value Chain Analysis. [Online]Available at: https://www.investopedia.com/articles/investing/111014/basics-value-chain-analysis.asp[Accessed 29 05 2017].