Final semester report subject management information system topic customer relationship management

What was the relationship of customer relationship management to Kenya Airways’s business performance and business strateØy?.... Businesses can choose a reasonable customer relationship

THE UNIVERSITY OF DANANG

UNIVERSITY OF ECONOMICS

FACULTY: ELECTRONIC COMMERCE

_@ © © © © -

University of Economics

FINAL SEMESTER REPORT

SUBJECT: MANAGEMENT INFORMATION SYSTEM

Topic: CUSTOMER RELATIONSHIP MANAGEMENT

LECTURER LE DIEN TUAN

2 Lam Thi Thuy Nga : 25%

3 Hoang Thi Kim Nga : 25%

4, Tran ThiTo Loan : 25%

Da Nang

CONTENT:

2 How does the Importance of CRM affect your DusInes$? ác ng 4

3 What does CRM relate to the Management Information System coufrs€? -.+-: 4

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1 What was the problem at Kenya Airways described in this case? What people,

organization, and technology factors contributed to this problem2 ác c nc che, 8

2 What was the relationship of customer relationship management to Kenya Airways’s business performance and business strateØy? ác c1 1n 011111111111 1111111 H111 tá HH ng 9

3 Describe Kenya Airways solution to its problem What people, organization, and technology 1ssues had to be addressed by the solutIOH? c1 1 1 201101111181 8111 ra 10

4 How effective was this solution? How did it affect the way Kenya Airways ran its business and its business performance? 7 10

In today's competitive market economy, customers are the key to business's survival and development Businesses recognize that in order to achieve success, businesses not only focus on themselves but also pay attention to the demands of customers Businesses understand the needs of customers to serve them better

Customer Relationship Management (CRM) has widely applied companies around the world, including Vietnam The purpose of applying CRM is not only create relationships with customers but also change the thinking and habits of employees when working with customers, enhance creativity and promote the role of the business Businesses can choose

a reasonable customer relationship solution based on the goal of customer centric, taking care of the needs of the customer in order to achieve the goal of maintaining a good relationship with the customer and achieving maximum profitability in the business Now, Viet Nam has many businesses apply well CRM in the process of business activities With the desire to deeply understand CRM, the spirit of learning along with the existing knowledge, we hope this group assignment will give the right knowledge My team would like to thanks to our teacher Le Dien Tuan for guiding and creating favorable conditions for us to complete this subject well

IL GENERAL INTRODUCTION OF CUSTOMER RELATIONSHIP

MANAGEMENT (CRM):

1 Analyzed problems:

The customers who determine the survival of a product in the market It's hard to get customers,but keeping customers and making them loyal to the products of the business is

even harder

In addition, in large businesses, too many customers and too many ways customers

interact with firm Therefore, some of the big issues that businesses need to focus on are

the management and development of customer relationships

Customer Relationship Management (CRM) is a method that helps businesses reach and communicate with customers in a systematic and effective way to serve customers better, professionally and scientifically Below, we're going to analyze CRM and the importance

of CRM to your business When analyzing CRM we need to understand issues such as:

3

Customer Relationship Relationship Management

4 Business Value of Customer

Relationship

3 Operational

and Analytical CRM

2 How does the importance of CRM affect your business?

- Through the customer relationship management system, the customer information will be updated and stored centrally in the database management system Businesses can analyze and form lists of potential customers and loyal customers to devise reasonable customer care strategies

- In addition, businesses can solve customer problems quickly and effectively Businesses need CRM to be able to understand the needs of each of their customers Hence, businesses can offer the right products and services for each customer

3 What does CRM relate to the Management Information System course?

- Management Information System learns about large systems used by companies and organizations around the world to manage resources, production, customer relations,

- Customer relationship management system is one of those systems Through this course,

we will know what is CRM system, is it used to do and how is it applied?

1 What is Customer Relationship Management?

- Customer relationship management (CRM) systerms capture and integrate customer data

from all over the organization, consolidate the data, analyze the data, and then distribute

the results to various systems and customer touch points across the enterprise

- Atouch point (also known as a contact point) is a method of interaction with the

customer, such as telephone, email, customer service desk, conventional mail, Facebook, Twitter, website, wireless device, or retail store

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Good CRM systems provide data and analytical tools for answering questions such as these: What is the value of a particular customer to the firm over his or her lifetime? Who are our most loyal customers? Who are our most profitable customers? What do these profitable customers want to buy? Firms use the answers to these questions to acquire new customers, provide better service and support to existing customers, customize their offerings more precisely to customer preferences, and provide ongoing value to retain profitable customers

2 CRM Process:

2.1 CRM Sales:

Sales activities include: Mailing, Calling, Quotation, appointment scheduling, contract signing, payment transactions, debt reporting

2.2 CRM Marketing:

- CRM Marketing helps businesses save time in classifying customers, taking care

of customers in groups, promoting shoppers through Marketing Automation tools

such as Email marketing, SMS marketing,

- Besides, other parts This software always ensures the timeliness and accuracy of responding to customers while cutting down on calls with a simple, optimized process

2.3.CRM Services:

Customer care plan to motivate users to buy back products, renew services by activities such as: discounting, giving gifts, sending congratulatory messages or emails, or answering related questions to the customer's product in detail

2.4, CRM Analysis:

- This CRM Analytics process is based on information about all customers stored in CRM including purchase history From this information, businesses can easily evaluate and analyze the shopping habits and behaviors of target and potential customer groups

- These jobs will be an important foundation to directly serve the future Marketing, Sales or Customer Service (customer care) work of the business itself

2.5 CRM Collaborative:

- Ifin normal businesses, each department is a separate part, making the

information flow sometimes not smooth and delayed

- For CRM, departments are closely linked with each other, all employees are connected to share visual data information quickly Since then, the business's

customer service service is also more effective

3 Customer Relationship Management Software:

>

Commercial CRM software packages

range from niche tools that perform

limited functions

DATABASE Dynamics CRM

Microsoft Dynamics'CRM

Partner relationship management (PRM):

PRM uses many of the same data, tools, and systems as customer relationship

management to enhance collaboration between a company and its selling partners PRM helps distributors and retailers sell to customers directly

PRM also provides a firm with tools to assess its partners’ performances so it can make sure its best partners receive the support they need to close more business

Employee relationship management (ERM):

ERM software deals with employee issues that are closely related to CRM, such as setting objectives, employee performance management, performancebased compensation, and employee training

Sales Force Automation (SFA):

- Sales force automation (SFA) modules in CRM systems help sales staff increase productivity by focusing sales efforts on the most profitable customers, those who are good candidates for sales and services

- SFA modules also provide capabilities for sales forecasting, territory management, and team selling

Customer service modules in CRM systems provide information and tools to increase the efficiency of call centers, help desks, and customer support staff They have capabilities for assigning and managing customer service requests CRM systems may also include web-based self-service capabilities: The company website can be set up to provide inquiring customers personalized support information as well as the option to contact customer service staff by phone for

additional assistance

> Marketing:

CRM systems support direct-marketing campaigns by providing capabilities for capturing prospect and customer data, for providing product and service information, for qualifying leads for targeted marketing, and for scheduling and tracking direct-marketing mailings or email

Cross-selling is the marketing of complementary products to customers

4 Operational and Analytical CRM:

- Operational CRM includes customer-facing applications, such as tools for sales force automation, call center and customer service support, and marketing automation

- Analytical CRM includes applications that analyze customer data generated by operational CRM applications to provide information for improving business

performance

- Another important output of analytical CRM is the customer’s lifetime value to the firm Customer lifetime value (CLTV) is based on the relationship between the revenue

produced by a specific customer, the expenses incurred in acquiring and servicing that customer, and the expected life of the relationship between the customer and the company

5 Business Value of Customer Relationship:

IV

Management Systems Companies with effective customer relationship management systems realize many benefits, including increased customer satisfaction, reduced direct- marketing costs, more effective marketing, and lower costs for customer acquisition and retention

Information from CRM systems increases sales revenue by identifying the most profitable customers and segments for focused marketing and cross-selling

The churn rate measures the number of customers who stop using or purchasing products

or services from a company It is an important indicator of the growth or decline of a firm’s customer base

CASE STUDY:

Case study: Kenya Airways The use of CRM in manage data to help business operate more effectively What was the problem at Kenya Airways described in this case? What management, organization, and technology factors contributed to this problem?

The airline has not been able to capitalize on its market opportunity in the last few years because the company did not know its customers Kenya Airways was not in a position to measure and monitor its campaigns In many different repositories, such as files and spreadsheets, the company store customer data; thus, they were unable to integrate the data with their system

Kenya Airways operates in a rather challenging environment, with more money to compete The airline had added more planes, passenger numbers had been decreasing, partly due to the fear of Ebola virus outbreaks, regional terrorism, and increased competition from Persian Gulf carriers Profitability suffered

Technology:

e@ Kenya Airways has no program to enable them to monitor and handle the accounting functions

e The program was unable to manage electronic user practices and to hold to

consumer details Sales, invoicing, employee records, and payroll tracking will be

simple tasks and won't require much training for system users The old program

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used by the airline would not require the manager to take a high-level judgment on the company's behalf

e@ The technologies used were not precise, prompt, effective, reasonable, and the gathered information was untrustworthy

- Management:

¢ About management of data: Data on customers were located in many different repositories, such as spread sheets and files in company and partner travel agent

offices, reservation systems, and airport check-ins, and the data were not

integrated

¢ Without a single repository for customer data, Kenya Airways was unable to

identify the preferences, special needs, or other personal characteristics of its

“guests,” who included commercial traders, business executives, government officials, students, missionaries, and medical tourists

- Organization:

e The organization has struggled to consider an alternative way to connect with its customers

e@ The organization did not have a way of tracking its marketing advertisements and email campaigns

e@ The organization needed customer relationship improvement

2 What was the relationship of customer relationship management to Kenya Airways’s business performance and business strategy?

- The airline could not use its market chance because it knew insufficient customers It did not know who clicked on the email promotions The airline advertised mainly on billboards, in journals, and in flyers, and the effectiveness of the campaigns was not measured in any way The link between the two was not strong, as the airline stored its customer details on several repositories The airline could not identify the preferences, special requirements, or other personal characteristics of its customers

- The relationship of customer relationship management to Kenya Airways’ business performance and business strategy was that at first it wasn't able to identify high-value customers but now it tracks all high-value customers

e Even though Kenya Airways had a customer loyalty program, it had previously been unable to identify high-value customers

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e In 2014, Kenya Airways initiated a multiyear program to automate and integrate all of its customer data so that it could engage in effective customer relationship

management

e To help Kenya Airways, the marketing team drove additional revenue by converting

leads to ticket sales, increasing website traffic, and increasing social followers This

tool helped the Kenya Airways customer service team follow social media posts and discussions about the airline's services and respond to questions and problems within

30 minutes

> This was the strategy of Kenya airways

3 Describe Kenya Airways solution to its problem What people, organization, and technology issues had to be addressed by the solution?

- Solution:

e@ Kenya Airways has planned to launch a multi-year plan to simplify and consolidate all of its customer data so it can participate in efficient customer relationship management leveraging oracles, communications, advertising, apps, and software clouds

e The Oracle marketing framework offers a web-based network for linking marketing data from organizations, customer experiences, reaching the right

customers, and evaluating results

- Management:The solution was to improve the airline's relations with its customers

- Technology:

e@ The reports provided by the new technologies will enable Kenya Airways to make high-level decisions

e@ The modern technologies can manage a lot of corporate clients and other market operations inside the organization effectively and easily

e@ The airline will be able to manage the accounting tasks for the new tech, Oracle marketing cloud Sales, invoicing, personnel reports, and payroll management would be basic tasks that won't require any preparation for device users

- Organization:The approach will ensure that the company is internationally aware of its marketing strategies, allowing it to know who clicked on its email promotions The solution would require the company to orderly store the customer data, which would make contact very simple