Electronic Customer Relationship Management In Walmart

Published Date: 02 Nov 2017

A description of technologies which support the company’s CRM policy is given by e-CRM. E-CRM is a combination of e-business and traditional CRM. E-CRM is viewed by Bradway and Purchia (2000) as a consolidation of internet market and customer centric strategies. Some times e-CRM is referred as web based CRM or web enabled CRM. Forrester Research (2001) defines e-CRM as a web based approach to harmonize relationships with the customers across the various channels. According to Lee Kelley et al. (2003, p. 241) very few details or literature reviews are available on this topic and he even suggests a definition for e-CRM. As per his definition e-CRM refers to marketing tools and activities which are delivered through internet. Delivery takes place through email, e-forums, chat rooms, worldwide webs etc. All these tools aim to search, build and then maintain good relations with the customers. The advent of interactive and electronic media like email and Internet has been instrumental in catering the operational sing CRM with customized information between the customers and the organization. Apart from this, contact centres, voice response systems, mobile telephony, and customer call centres are some e-technologies which are included in E-CRM. These technologies involve low levels of human contact. This means that companies using these technologies either use no human contact or have low human intermediation from the supplier side (Anon, 2002). The emergence of mobile commerce has resulted in the use of innovative ways for enticing customers towards the new products launched by the company. Mobile commerce has also catered with new ways of managing customer interaction (Wright et al., 2002).

Mobile banking and mobile marketing service are becoming widely popular among financial organizations in Europe. They make use of wireless application protocol (WAP) technology for improving their interaction with the new and existing customers (Rilvari, 2005). Mobile CRM is used by major banks for customer acquisition. They also cater the ability to Project Company’s image in a new way and use SMS text messaging for enhancing the growth of their market segments. Mobile channels like SMS cater with reliable, automated, personal, immediate and customized way of reaching your potential customers (Sinisalo et al., 2005) and manage relationships with them effectively. Healthcare providers like VHI and mobile operators like Vodafone are effectively utilizing SMS text messaging for strengthening their relations with the customers. Banca Intesa, which is ranked amongst the largest banks of Italy, announced the launch of mobile banking service in December 2003. It also announced the introduction of WAP and SMS functions along with multimedia messaging which is introduced in the banking domain for the first time in the world. The service caters 500,000 on-line banking customers in its initial stages. E-CRM focused on utilizing mobile marketing has provided an effective way of meeting the changing demands of the customers through building strong relationships (Sinisalo et al., 2005).

Voice response systems are another innovative e-technology which provides effective opportunities to companies for managing their customer interactions. Eircom is ranked as the largest telecommunication company in Ireland, which launched the user friendly eircom Voice Recognition (e-VR) ‘1901’ system in 2004. The system catered approximately one million eircom customers with instant access to payment enquiries, billing, fault and account through the use of the latest technology of voice recognition. The system was capable of handling 100,000 calls per week, which is an indicative of the fact that the customers can conduct business with eircom 24/7. The core goal of the project was to let the eircom brand stand out in the marketplace and enhance the quality of customer service. The system is instrumental in managing business information and demonstrates the fact that speech technology yields positive consequences on customer service and efficiency of the business. Businesses today are now looking for cost-effective way of reaching out remote customers. E-technologies have catered daily businesses with appealing opportunities for enhancing their efficiency and sales. Thus E-CRM methodology is now becoming an essential part of most businesses today (Parekh, 2003). The paper now revolves around challenges and opportunities encountered by companies in implementing E-CRM technologies.

2.5 E-CRM Opportunities

The main concept of E-CRM is to modify and upgrade the marketing with the help of providing opportunities to companies for the betterment in delivering best value and effectiveness to customers (Scullin et al., 2004). With integrating to other system it optimizes the work flow and reduces the cost of communication with customers, moreover, it also develops better relationship, personalization and interaction with clients, and to aid better market segmentation (Adebanjo, 2003). The objective of this system is better customer services, retaining important users, and to help out by delivering logical abilities (Fjermestad and Romano, 2003) for an organization. The CRM system and applications took complete benefits of new innovations in technology by the help of analyzing and collection of data on the consumers’ pattern, understand behaviours of customer, an effective and timely modified communication with a quick response, development of analytical models, and provide the individual customers with valued service and products. With the help of technology the companies enhance the interaction with the consumers and can develop a broader vision of customers with a 360-degree for the learning’s from previous interactions to a better and enhanced one (Chen and Popovich, 2003). The infrastructure also helps in understanding the incline in the consumer values and correct means with the help of which the valuable customers are motivated to be faithful (Fjermestad and Romano, 2003). Businesses which are well aware of the E-CRM and its unique customer interaction are continuously eager to be distinctive and have a competitive advantage (Ragins and Greco, 2003). The E-CRM can also work as the relationship management system having different stake-holders like employees, customers, vendors and channel partners. The highlighted and particular opportunities of the E-CRM are; improved customer relationship and interaction, leveraging capabilities of E-CRM and personalized options, managing touch points of customer. These benefits and advantages are known as the potential resource to have a competitive advantage over others.

There are three stages of E-CRM and all are developed to achieve and control the life cycle of clients, and capitalize their life-time value, capturing new clients; improving current customers’ profitability and retaining them for longer (Kalakota and Robinson, 2001). These stages are highly dependent on quality of the insight and information available regarding the clients for the firms. The data that companies collect online are already formatted and ready to be gathered for analyzing without necessary data-entry steps which are needed for traditional channels. Moreover, the streamlining of the process of data collection improves the timeliness and quality. The company can further collected more data from online channels which leads to a better utilization of analytical decisions for judging behaviours of customer, thus a more customized and targeted relationship. Through this relation both parties gets benefits: Customer receiving services and products which are much closely to their lifestyles and needs, and the organization develops a higher valued and low risk clients.

A good example of a company which maximizes the effectiveness of E-CRM is "Compaq". By learning from her rival "Dell", she reacted by employing and developing electronic channels for the fulfilment of customer’s orders through the resellers. With the help of "Centre-Web" button the information of clients can be transferred to the resellers’ website and merely in 6 seconds the transfer can happen and the reseller can have the fresh lead data. Moreover, the partner can easily track down the performance against clients needs and volume of the leads captured, thus achieving the main goal of satisfaction of customer (O’Rourke, 2003).

The CRM systems provide data and information of individual items along with other authentic and dynamic knowledge. The bases of this knowledge, when effectively planned and put into practice can prevent many unnecessary demands that exist within the organization. Further, information can be presented at a low cost to the customers (Ahn et al., 2003). If a market segment is clear, the marketing strategies can be made more effective, thus leading to high profits. Along with increased profits, the use technology, value adding, selling of personalized products, data mining can help the organization gain competitive edge in the market (Ab Hamid, 2005).

2.6 Challenges of E-CRM

Customers interact with the organizations as per the duration of their contract with the help of e-CRM. One of the challenges faced by the organization by implementing e-CRM they become restricted to intimate with the customers in order to win their trust on their services. Companies using web-based online mediums to communicate with their customers who now have number choices available on only one click so these companies are not given any second chances on their mistakes through these channels (Fairhurst, 2001). Organizations also have to face IT and data integration challenges also for implementing e-CRM methodologies.

2.6.1 Customer Interactions and Relationships

Companies by using e-CRM systems enable digital proximity in place of proximity of their traditional customers. Now it is required for the customers’ reassurance while taking any buying decision which has become more intensified by so many types of e-channels such as on-line communities, shops, customer testimonials for reassurance of customer buying decisions and choices to be made (Anon, 2002).

The value of making enhanced contact opportunities was promoted by Salmen and Muir (2003) by banking customers regarding virtual communities where customers can share one another’s experiences. One cannot intimate with the customers on-line because of inaccessibility of such channels it is very hard to gain trust of customers. Therefore, it is difficult for e-CRM relationship element to gain or build trust beyond a transactional one. When the firm fails to win the trust of customers they will not share the information with the firm which is required to make CRM policies. Other important elements for winning the trust of customers and to bring effectiveness in e-CRM system’s performance are firm’s privacy strategies and guarantee

2.6.2 Managing an On-Line Channel

According to Fairhurst (2001), e-CRM is just a bigger picture of CRM which is enterprise-wide because interactive electronic media is required to enable CRM. Parekh (2003) says that online channels are like CRM puzzles. And as these channels are flourishing the companies need to get more active and learn to manage the relationships with their e-consumers. Almost all the companies are making investments in this internet related deliveries, thus making it an essential requirement of all the competitive companies. Companies are therefore taking e-CRM as a priority for achieving best results (Parekh, 2003). E-CRM provides a proper structure for the strategic evolution of technology oriented relationship marketing framework. There are three goals of this framework according to Robinson and Kalakota (2001), and they are; making use of existing relations to increase revenues, for providing excellent services make use of integrated information and introduction of replicable channel procedures. E-CRM takes the form of a business strategy and an integrated framework but does not take a position of a product in itself (Taylor and Hunter, 2002).

Web cannot be considered as a single channel by the companies, because it does not stand in isolation. Still a back office and a traditional touch are required for the proper functioning of this channel. In this arena of e-CRM, a company is successful, if it is able to match its business model with the e-CRM initiatives (Bradway and Purchia, 2000). Brash and Bradshaw conducted a research on UK firms and found out that companies are taking different processes (like marketing, services and sales) and channels (web and call centres) which are linked with customers as different projects. Like this they reduced the chances of giving uniformity to the customers. More focus was being given to individual transactions rather than on management of relationships.

2.6.3 Challenges of Data Integration and IT Architecture

If one talks form technology point of view, then it would not be wrong to say that e-CRM consists of various veins which are to be kept together to bring good outcomes. It is not possible for single software to fill the gap nor could something be used as a substitute internally. Implementation of e-CRM is not that simple, it requires a number of tools and resources (Anon, 2000). Company must take the cost implication within its strategic planning. E-CRM is not completely independent; in fact neighbouring systems need to function properly for the proper working of e-CRM. At both data and process stages the front office CRM remains consistent with the e-CRM. On the other hand the back office provides great services; by making customer related details available, by providing pricing details, informing about prior transactions of customers and lastly it provides tools and contents needed for web management (Anon, 2002).If all these linkages are effective then only e-CRM can function properly to bring about expected results. Great commitment is required by the companies to implement e-CRM because many processes would need to be modified with the implementation of e-CRM. Therefore, it is must for the companies who want to implement e-CRM to have proper IT infrastructure along with well managed business processes (Fairhurst, 2001).

2.6.4 Marketing and IT Alignment

An organization requires a good IT function for the purpose of business development. If there is mismanagement in the expectations that lie in between IT functions and marketing then a direct impact is seen on the e-CRM strategies. The focus of the Marketing users is on the front end of the application and they assess the functionality of the e-CRM system with very little understanding of the web integrated issues and data. While on the other hand technical quality is assessed by IT functions. Another matter of concern is that the projects of E-CRM are led by a functional IT or Marketing head, who is less likely able to create an enterprising feature of the customers and thus shaping the application with only a single functional aspect can result into failure. According to research conducted by O’ Leary et al. (2004) in order to produce a successful implementation of E-CRM the strategy should be applied to improve the degree of alliance and collaboration between the Marketing and IT functional team and avail every opportunity possible. According to Chen and Chen (2004), they identify the requirement for a comprehensive view of modules and alliance of business, strategies regarding IT and architecture of system. According to Gurau et. Al. (2003), the success of an organization in E-CRM involves the creative use of suitable logical techniques to accomplish the data and at the same time focus to enhance coordination and establish an alliance to achieve and maximize good relationship between the IT and Marketing team and to promote real customization and personalization.

CHAPTER 3

RESEARCH PLAN

3.0 Introduction

This portion involves the methodological form of the research and coveys the desirable methods of managing research work by which the useful and appropriate methods are included in the study. According to Bell et al. (2009), initially, various concepts and methods are assessed and from it the comparative one would be considered as it give support to the writer and help him perform his study in a much easier way. According to Morse and Richards (2002), few methods are extremely common and are used frequently in various types of research work and research is considered unfinished without it but it is more essential for the author to add up more methodologies after conducting analysis and identify their benefits and scope.

3.1 Research Procedure

While writing a research paper, it is important that one must consider all the aspects that are asked by the examiner. Neglecting even a single point would make the research incomplete. One must make sure that the aim of study should always be met whatsoever. Once the researcher loses its direction, the whole research would end up being a meaningless content. There are number of ways through which research could be done but the most significant research is the one which follows a proper direction and order. Following a proper order is also very important as far as research is concerned since there are certain points that are required to be given more focus as compared with others. Therefore an effective procedure should be implemented to make the research paper worth reading.

3.2 Developing the Research Layout

The methods uses for collecting data and the concepts use d for performing this research are now discussed in detail.

3.2.1 Secondary Research

Secondary research actually means elaboration and explanation of the collected data to write a research paper. It is often used when it comes to writing a literature review. Secondary research gives a clear picture of the motive that is going to be discussed throughout the paper. This is an essential part of research process because it actually helps the readers to understand the aim of the research and the reasons of writing it. One must be very clear with its secondary research as it known as the backbone of the paper and on which the whole research depends. Moreover, secondary research also consists of problems along with their solutions which could be useful for any firm. Organizations could make a good use out of it and produce good results. There are various ways to collect data while doing a secondary research.

The data that is used in the secondary research is not unique and could be used by anyone. It is also possible that it has been used previously and then we are using it for our research. In such circumstances, we should make sure that we cite all the information that we extracted from a used source. It is possible that same information could be used for different purposes but if it is not cited then it could be considered as cheating and all the hard work behind the research would be wasted.

According to Theresa et al. (2009), the data that is obtained proves to be very useful due to the fact that it does not require high cost or a detail analysis. As stated by Jackson (2010), once the market research techniques are planned, it gets easier to conduct it. It becomes easier when the past information regarding the topic is available. By utilizing the existing resources, the collection and analysis of data becomes simple.

3.2.2 Primary Research

Primary research involves collecting new data through market research. Primary data is fresh and up to date and the information obtained has not yet collected by anyone else. According to Soloman et al. (2002) primary research is carried out for factual reasons such as to present or deliver a raw material or facts about a certain topic. However, the main purpose behind is to figure out the presence of data that has not yet collected. Additional information is gathered which shows that the aim of the study is achieved.

When carrying out a specific research, primary data proves to be very helpful and beneficial as it provides better and reliable information. Crowther et al. (2008) categorizes primary data in two main important parts. The first is qualitative and the other is quantitative data. Experience is shared by Crowther as he gathers primary data to carry out a research. Different sources are used such as surveys, interviews, interactive sessions, questionnaires etc. Creswell (2009) figured out that both the quantitative and qualitative data can be regarded as one of the components of primary research or data. Kotler et al. (2008) further declared that he favours secondary data over primary data due to the reason that the data collected from secondary research becomes a necessity when collecting primary data. Primary data has the drawback that it requires a great deal of time and is quite expensive as well in comparison to secondary data.

3.2.3 Quantitative versus Qualitative Research

Primary research can be conducted via two methods, namely qualitative research and quantitative research method. Quantitative research uses structural research procedures for knowing the legitimate perception. On the contrary, minor samples are used by qualitative research for obtaining the desired results. Quantitative research yields numerical results quite precisely from reliability and satisfaction perspective, as suggested by McDaniel & Gates (2006). According to Punch (2005), Qualitative research revolves around numerical values specified in the form of functions, percentages, ratios etc. Qualitative research is linked to general information from the technical perspective. After having an idea about the major research methods, I will mainly focus on qualitative research which is based on both questionnaires and interviews where the replies are according to one’s own intellectual level.

3.3 Chosen Method for Research

Before starting the research, I have conducted a pilot study which would be beneficial in highlighting any potential problems which are likely to arise in the due course of time. The questionnaires would be distributed among the workers at Walmart along with the pilot study. The questionnaires comprise of both close and open ended questions. Qualitative study usually spans over small sample size and provides in-depth knowledge regarding the study as suggested by Malhotra and Briks (2003). Greenhalgh (2006) suggests that these questionnaires comprise of comprehensive information which caters with the required information regarding the notions and values of human beings. Chishnal (2005) is of the view that simple questionnaires regarding specific queries can help in gathering huge amount of data which will eventually ease out the process of comprehending the fixed problem.

The questionnaire would be made by taking into consideration the objectives of the study. The statistical feedback related to the questionnaire will be analyzed. One-to-one interview with Customer Support Department and HR department are required for acquiring some information. This is done to ensure that the questionnaire is successful in achieving or finding out the real facts. According to Chishnal (2005), successful interviews require the interviewee to successfully communicate his thinking and view point to the interviewer. Interviews carried out on pre-defined questions, statements and rules are referred as semi structure interviews.

3.3.1 Developing Questionnaire

It is essential to identify the objectives of the study before formulating the questionnaire. The questions need to be designed by keeping in view the desired objectives so that each question adds up in acquiring the right information. Questionnaire is designed for attaining genuine results and comprises of five close ended questions which are developed keeping in view time and appropriateness factors pertaining to the interviewee.

3.3.2 Interviews

Interviews are helpful in removing the ambiguities encountered in the questionnaire. Interviews cater with the ease of removing ambiguities via discussion, clarify concepts through direct communication and resolve problems eventually allowing a better understanding of the subject. Data collection is a process carried out for complete and correct data acquisition. Among many methods of data collection, questionnaire and interviews enjoy the portion of eminence. Questionnaire is widely used in many settings of data collection; however, interviews enjoy certain edges over it. The most important feature which leads to preference for interview is related to opportunity of question elaboration if the respondent does not understand it. Interview is an assisted form of data collection in which data seeker interacts with respondent to get maximum possible relevant information. This information cannot be obtained through structural method of questionnaire in which nobody is there to explain the essence of question or its importance for data collector. Chishnal (2005) agrees to this point and suggests the uses of interview as the most effective data collection technique. Keeping in view these points, the managers were asked the open ended questions and they were invited to give detailed answers.

3.4 LIMITATIONS

The limitation of a research projects are those characteristics of design or methodology that has impact or influenced on the interpretation of the results of the research project. Two aspects mainly consider properly for evaluating the limitations of the research work.

Validity: Validity mainly concerns about the evidence that has been given in the research project is accurate or not.

Reliability: Reliability mainly concern with whether the result of the research is able to be replicated by other researchers or not (Jewell, 2008:110). As I m primarily using the secondary data collection method for my research project, so It would be easy for me to consider about the reliability factor.

Language is main barrier for me to interact with local people as most of them speak Creole and French. Availability of resources (books, journals) is also a limitation but one of my friend who is studying and doing part time job in Eiilm university he told me he will help to get the data from his college library and from his friends who is studying in UTM (Mauritius )

3.5 ETHICS

For ethical consideration of my research project I will follow the every details of BES ethical guidelines, making all the efforts to avoid harm to any one during my research project, to conduct research honestly, to acknowledge others input, to respect others subject privacy, physical and mental well being. I will also ask to my supervisor before preparing any questionnaire or interview for the collection of primary data for the ethical consideration of my research project.

3.5.1 Plagiarism

I have gone through a deep research of what is plagiarism means, what will be the impact if the research work will be plagiarized and how the plagiarism can be avoided. From my research about plagiarism I came to know that plagiarism is a copying of someone work without referencing or without expressing acknowledgement. I also realized how to avoid plagiarism. In case during my research when I will use information from any other sources I will acknowledge the relevant contribution by providing appropriate in text citation and by adding the list of references at the end of the dissertation. I promise that this dissertation will be my own work.

CHAPTER 4

ANALYSIS AND FINDING

4.0 Introduction:

In the light of promised advantages of interviews, the same technique was used in data collection during the research of Walmart. Hence the collected data primarily belonged to the domain of primary research. Managers and employees were interviewed to include their views in the research findings. The difference between primary and secondary data is highlighted in the previous section, hence not repeated here. Data analysis was done with the view of concluding at solid and objective oriented findings. The probability of achieving reliable results was further increased through applied techniques of data categorization.

The proposed methods used to collect data are listed below.

Structured closed ended questions mainly for workers

Comprehensive interviews from corporate managers

4.0.1 E-CRM and its usage

When questions about the usage of E-CRM is asked by the managers and other respondents it comes in front that many of managers who are mostly linked with online work have good knowledge of E-CRM and its usage and it seems that Walmart is still developing knowledge about E-CRM in its employees.

4.0.2 Problems faced by managers regarding to E-CRM

As this is clear by opinions and replies of respondents that Walmart is already using CRM effectively in its business but now as it has started to use E-CRM so this also facilitate the working strength of employees they can more easily perform their jobs and overall managing skills are also improved in Walmart.

4.0.3 E-CRM is trouble free solution for making business progressive

This question was asked to get this response that E-CRM can help Walmart to develop its business rapidly and the replies give this outcome that yes E-CRM makes it possible for Walmart to develop its business in effective manner. E-CRM gives this ease to company that it can get fasten results from customer side and can solve them in greater speed than ever.

4.0.4 E-CRM is same as CRM

Most of replies shows that both are not as much same but they are not very different from each other, his means that only taken CRM to online world makes it E-CRM but few also said that E-CRM ahs its own benefits which will be appear soon as time pass out.

4.0.5 E-CRM needs more stability

This question was asked to know that whether E-CRM has stabilize in Walmart or not and replies give this response that E-CRM has been used as an effective strategy in Walmart and its effect are very positive for whole business. Also this is said that E-CRM will help company to expand its business functionality.

4.0.6 Questionnaire

1. E-CRM is better than CRM?

Figure 3: Respondents view on CRM and E-CRM

As shown by pie chart 80% respondents give positive response on this question which means that E-CRM is really an effective measure which is benefiting the Walmart greatly.

2. E-CRM and its implementation are very easy?

Figure 4: Respondents Opinion on the Easiness of E-CRM

This question reveals that 70% respondents think that E-CRM is really easy to implement but there are few who think that its implantation in Walmart was not that much easy.

3. E-CRM can increase the profit margin of company?

Figure 5: Respondents View on E-CRM and the Profitability Margin of Company

95% of respondents are very confident that implementation of E-CRM will increase up the profitability of Walmart as shown above.

4. E-CRM can be problematic if not managed properly?

Figure 6: How Problematic E-CRM can be

The response of this question shows that E-CRM need proper attention and it must be as 73% agree with the statement so management must look after the proper implementation of E-CRM as this is the main and important tool for the company.

5. E-CRM is implemented because it was needed?

Figure 7: The Necessity for E-CRM

This question was asked to check whether Walmart was in trouble before implementing E-CRM or this change is just made for betterment and replies give clear view of that as 65% said that it was just happened for better results.

4.1 Trends of E-CRM

Recent developments in the domain of E-CRM focus on enhancing its effectiveness to a great extent. This implies using Online Analytical Processing Tools (OLAP) for attaining Customer Intelligence, introduction of a CRM evaluation package and the use of CRM component applications.

CRM Solution Acquisition Manager is a service offered by a start-up company in California named ITenol, which aims at the automation of processes involved in CRM package implementation (Bednarz, 2001). This covers all phases which include the definition of requirements of the company, evaluation of vendors, negotiating of contracts and generation of purchase orders.

After the establishment of the service, the users of the system collaborate with each other in specifying business objectives and then generate a request for proposal (RFP). Vendors are contacted by ITenol after the availability of an RFP and the online collaboration of the vendor reps in response to it. CRM vendors avail the service for free. Web-accessible project management tools are provided by ITenol for easing out the installation process, once the company has successfully purchased the CRM package.

The current economic climate tends to be a partial reason for the decline of hosting of complete E-CRM solutions in the market. The complicated levels of customization demanded by business clients tend to be another core reason behind this drastic decline. However, the market possesses a better potential for CRM component applications like Satmetrix’s hosted package which is used for gauging customer satisfaction levels. This requires low amounts of investments despite the fact that these hosted applications cater the client companies with added values (Pepe, 2001).

Customer Intelligence (CI): It was mentioned above also that the specially customized company’s ERP system carrying E-CRM properties is considered critical for the implementation process of E-CRM. The Customer Intelligence mainly focuses on information derived from the analysis of customer according to E-CRM policies and later by applying these policies to enhance the customer relationship. The technologies and processes enabled by CI must be merged in the E-CRM and ERP solution systems to get maximum data access along with the analytical process (Harvey, 2001). Cognos is one of the companies which produce tools like OLAP which enable the advanced technologies for enhanced data analysis required by the CI firms. The main functions of the OLAP software are to provide predictive modelling, data visualization and mining which are required in discovering the customer related data. This data helps in determining and understanding the customer behaviour and values respectively.

4.2 More effective marketing

With the help of E-CRM system, the management is able to get the information about the needs and requirements of its customers. Once they get to know what the customers demand for they will be able to respond them. With the help of this data, the company is able to maintain its marketing strategies and sales campaign accordingly. An effective promotion and distribution would certainly attract the targeted customers (epiphany.com). E-CRM systems have been very effective in a way that they allow additional targeted campaigns. Further, the data retrieved from E-CRM would enable the management to find out the extent to which these marketing elements have affected the profitability and sales (Greenberg, 2001). Marketing efforts can be made better through customer segmentation (Rong, 2001). When customers are grouped together according to their level of needs and requirements, marketing becomes far easier as specific products are only limited to a specific or a targeted group of customers.

CHAPTER 5

CONCLUSION

With the advent in technology, the business sector is focusing on automation, digitization and electronic platform for various activities. The use of E-CRM is increasing at rapid pace. The reason for this popularity may be the promised benefits of CRM; however, there is serious need to focus on investment requirements of CRM and its likely benefits. Many organizations are attracted towards CRM as they consider it a source of competitive advantage. It may be true as well as CRM saves the customer from hassle to visiting various functions at diverse locations. The use of CRM offers highest possible level of convenience to perform a transaction. Still, business decision makers should carefully evaluate the benefits of CRM and align their various strategies with it. Despite promised advantages of CRM found in literature, there is serious need to assess its practicality.

Academic literature is rich in explaining benefits of CRM. Literature also highlights the challenges associated with implementation of CRM in business organizations. Most of the challenges are related to its technical aspects, (Ahn et al., 2003) however, from administration point of view, it is robust as identified in literature. There is serious need to carefully evaluate the CRM in its implemented form so that relationship between promised and offered advantages can be established. This area invites the attention of researchers so that industry can come to conclusion about effectiveness of CRM. Particularly the advent of e-CRM calls for serious consideration by industry researchers to streamline the function of relationship marketing (Chen and Chen, 2004). There is another area which needs researcher’s attention that is integration of data for accommodation in CRM (Nemati et al., 2003). The technical aspects of CRM are associated with data mining and other analytical techniques (Padmanabhan and Tuzhilin, 2003; Nemati et al., 2003). CRM is supposed to alter business processes so that they are aligned with each other in a manner that paves way for achievement of corporate goals.

On other side the system of ERCM is basically provides the basic knowledge and information about the potential and current customers. Once this information is obtained it becomes easier for the firm to serve its customers efficiently. As a result, the customer’s frustration is reduced and they feel well satisfied (epiphany.com).

This is the reason why E-CRM is being chosen by Walmart, Walmart is aware of the benefits of E-CRM results also verify this as many respondents said that E-CRM makes the company more progressive and ahs increase its progress level. Walmart gain number of benefits from E-CRM includes;

Orders can be received updated and closed more remotely.

Log materials, time and expenses linked with the service orders

Customer service agreements can be viewed

Better decisions and good practices can be looked forward

Product related information can be subscribed along with software patches

Access to knowledge tools can be obtained for the purpose of carrying out service orders (peoplesoft.com).

All these prolonged capabilities work altogether to maintain the rights of the customers, right at the centre of company’s attention. Through direct mailing campaigns and via emails one can provide great support to the customers (Patton, 2001a). With the help of bulk email management one can customize offers to a wide range of customers. But targeted mails are more effective as they bring about better results. Effective results are seen mostly when offers are made to right customers and on right timings. With the help of E-CRM, calls can be routed as well as tracked. The service representatives are provided with all the necessary details on a timely basis which they require to solve the problems (whatis.com). Orders generated by representatives of call centres are routed for fulfilment.

These all are the key benefits that are being enjoyed and will be enjoying by Walmart. From study perspective the aims of study are being fulfilled in this manner that literature aspect also pursue the usage of E-CRM and replies gather from Walmart representative also are on positive side which both makes the E-CRM really beneficial for company.

CHAPTER 6

RECOMMENDENTION

Following point is being observed which Walmart must consider as this can help Walmart in improving the implementation of E-CRM in their business.

Greater efficiency and cost reduction

Many precious human resources can be saved by making use of data mining, under which examination of data takes place for exploring all possible relationships within the sets of data (whatis.com, 2001). Customer details are entered into a single database. This database is used by the sales team, by management team and by all the departments of the company for the achievement of corporate objectives, by making use of the same statistics (epiphany.com). Walmart can also work on this side to make E-CRM implementation more effective for company.

Developing customer focused business strategies

This step does not focus on moulding the customers according to the objectives of the company, but in fact it focuses on creating opportunities which are beneficial for each and every customer. It is very important for the company to provide the customers with what they want at present, and their future expectations should be anticipated beforehand. Walmart can also achieve this by having proper access channels for the customers. The channels can be; e-mails fax and telephone. One should even be prepared to offer wireless communication for future. Walmart can avoid all kind of obstacles from coming in its way by allowing its agents to do all the things which are right in a right manner, whenever the customers get access to new versions of sales and promotions through their own communication channel.

Retooling business functions

When a business starts with E-CRM it would initially require a complete organizational changeover. One would have to reconsider all the departments at first to see which ones are actually providing services to the customers and which ones are just increasing the overheads. By doing this, one would cut down a few unnecessary departments and would bring down the cost as well. The changes which are required before implementing E-CRM can only be done by the permission and consent of the top management and of course the accountability of all the stakeholders is also required. Top managements involvement is compulsory in this regard. It is the responsibility of the top management to make all the employees aware of the change which is going to take place within the organization, and should even make them aware of the matters which are leading towards the change. It must be stressed by the senior management that E-CRM is no less than a tool (Hackney, 2001). That is why Walmart needs to understand it and must see that where they still need changes to be made.

Work process re-engineering

When departments and roles of personnel would be changed then entire processes would need some alterations. At this point two choices are available, one can bring about change either by taking traditional step by step approach or by adopting the second option which is an integrated one, and is more efficient. When a step wise approach is adopted then each department works as a separate entity. This approach does not end up with good results, because the goal of each department becomes so narrow and the departments compete internally neglecting the overall goal of the organization. Therefore, an integrated approach is preferred more. More effective results are achieved through integrated approach. This approach recognizes the interdependencies among the different departments of the company and work for the larger perspective of the organization.

Technology choices

For selecting technologies, not only the industry in which the company performs should be considered but also the position of the company needs to be seen. Which E-CRM implementation would be better for the company should also be considered. Below mentioned is the criterion for selecting technologies:

Software scalability

Flexibility of the tools for customization

Firmness of the current E-CRM application code

E-CRM compatibility with internet system and legacy

Technical support accessible during and after the phase of implementation

upgradable support

accessibility of additional modules (Sims, 2001)

safety

Without being more stressful it is very important matter - the detail analysis on the harmony of the existing ERP system of a company with the projected E-CRM system. The comprehensive link between the background generated transactions and the applications which customers are using is also essential. The risk of increase in response time, data idleness, decrease in customer because of spoiled and delayed transactions are the problems faced by the organizations due the lack of integration of E-CRM and ERP system, however, if this integration is implemented then an improvement in the business intelligence is probable by gathering the data whenever a customer contact – from entering the order to its completion through different channels (White, 2000).

Training and preparation

The most important aspect of the implementation of E-CRM system is the training duration varies for different companies according to number of customers. For a flawless transition, the training of users must be conducted prior to the E-CRM system. The training can be conducted by two ways either by an online consultant or brining the users to a low cost training facility; the training should be complete, precise and comprehensive before anyone can have access to system.

A managed and continuous training is needed due to the factor that the system evolves and changes according to the needs. A thorough documentation of tools and training must be conducted to provide rationalize training for all present, new and upcoming employees because the value of E-CRM system will be devalued in absence of documentation management scheme. 5 – 7 % of total E-CRM implementation budget must be planned by organizations for training (Patton, 2001b).

Walmart must consider above points to make the implementation of E-CRM beneficial for years for whole enterprise.

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