The relationships developed by businesspeople and their customers determine the success of different companies. Many companies that embrace the power of Customer Relationships (CRs) emerge successful. The decision “to use various Customer Relationship Management (CRM) programs has made many organizations profitable” (Fishman 19).
Many retailers have established their competitive advantages using effective CRMs. Retailing companies should embrace the power of CRM in an attempt to emerge successful. CRM is a critical practice that promotes the best strategies and ideas. Such ideas have the potential to make different firms successful (Schermerhorn 13). This essay explores the nature of different CRM programs practiced by three retailing companies.
Wal-Mart
Many American multinational corporations use powerful strategies and practices in order to retain their customers. Wal-Mart attracts more customers using its powerful CRM strategy. The company has a website that makes it easier to provide quality customer services and support.
The firm expects every client to open a new account. Such accounts make it easier for every customer to ask the required questions and give his or her feedbacks. The company’s Support Team offers the best advices and tutorials to guide every customer (Fishman 38). This approach has always supported the company’s clients.
A huge number of customers will buy new products after visiting the company’s stores. This is the case because the company provides the best customer support. The company has created several departments to fulfill the changing needs of different customers. Every department deals with its customers in a professional manner.
Such departments ensure every customer gets quality services and products. This strategy has continued to support Wal-Mart’s CRM. The company’s website has an effective Ordering Service (OS). This service provides relevant information to the targeted customers (Fishman 49). Every customer “can get the required information about every specific product” (Fishman 57). This strategy has improved the trust of many customers in the company.
The company also embraces a powerful concept called “Marketing and Fulfillment Strategy”. This concept makes it easier for Wal-Mart to market its products at friendly prices. The company uses lower prices in order to compete with other firms such as Nordstrom.
The company also offers numerous and diverse products that can fulfill the changing needs of its clients. The 4Ps of marketing (Product, Promotion, Price, and Place) have also made Wal-Mart a competitive player in its industry. Wal-Mart’s marketing strategies also attracts more clients (Schermerhorn 23).
Wal-Mart is currently using new tactics to support its customers. For instance, the company is embracing to power of social media in order to emerge profitable. The company informs more clients about its superior products and services. The firm uses different social media platforms to inform its customers about its new products and services. Every department informs its customers about the company’s new prices. Wal-Mart’s “Retention and Loyalty Programs” has been critical towards promoting its performance (Fishman 73).
The company supports its customers using the best strategies. For example, the firm reduces its prices in order to attract more customers. It also restocks its shelves immediately in order to offer more goods to its consumers. The firm also focuses on the changing demands of its customers. The above practices have redefined Wal-Mart’s CRM.
Amazon
According to many studies and reports, Amazon has remained a leading provider of competent services and support to its clients. The company has always satisfied its customers with new marketing strategies and business practices. The “first aspect of its Customer Relationships Management (CRM) strategy is its ability to provide the best shopping experience” (Buttle 49).
This approach has made it easier for Amazon to attract and retain more online shoppers. Amazon considers several ideas and practices in order to achieve most of its goals (Buttle 17). The first strategy is to understand the changing needs of its customers. This approach “has encouraged the company to increase its product offerings” (Buttle 54). The company also offers useful information about its wide range of products.
The company also encourages its customers to create new accounts using its website. This practice has made it easier for its customers to monitor their purchasing behaviors. The “company uses the collected data to improve its services and practices” (Schermerhorn 31). The company also “communicates with its clients using various methods such as messages, social media sites, and e-mails” (Schermerhorn 45).
This practice has attracted more customers to the company. Many customers “are currently using Amazon.com as a powerful source of credible information about books, magazines, music contents, and consumer products” (Buttle 84). This approach continues to support the company’s future goals and expectations.
The company maintains a high level of trust with its customers. The firm avails numerous reviews and suggestions to its customers. Such reviews make it easier for consumers to make informed decisions before purchasing their favorite products. Customer ratings and comments have encouraged more customers to select Amazon as the best business partner.
The company also gives appropriate discounts. Such discounts encourage more customers to purchase their products from Amazon. Every faithful customer gets timely updates from the company’s departments (Buttle 44). This practice has made it easier for Amazon to achieve its business goals.
Free shipping is also a common practice at Amazon. Many customers have purchased their music and books from Amazon because it offers free shipping services. Every customer expects the best services. Shipping makes it easier for more customers to trust this company (Schermerhorn 52).
Such customers have trusted the company because it delivers every product within the specified period. This approach has made Amazon an admirable business partner. This “practice has also increased the loyalty of its global consumers” (Buttle 75).
More Americans have been shopping online within the past one decade. Amazon’s decision to market its products online is something that fulfills the changing demands of its customers. Many customers have remained satisfied thus supporting the company’s performance. Many customers prefer Amazon because it offers the best customer support and experience.
The practice will eventually make Amazon a leading competitor in its industry. Many customers will also be purchasing their products online in the future. This practice will eventually promote the company’s business strategy.
Dunkin’ Donuts
This firm has over 10,000 franchise outlets across the globe. The firm’s goal has been “to improve efficiency and offer quality services to its customers” (Buttle 105). The company’s powerful Customer Relationship Management (CRM) strategy has always played a positive role.
Dunkin’ Donut has opened numerous stores in order to address the needs of its customers. The company uses franchises in an attempt to offer the best services. The company embraces new improvements in order to emerge successful. This practice has identified the major challenges and obstacles that affect the quality of its services (Buttle 47).
The firm’s Franchise Support Group (FSG) identifies the major weaknesses and grievances raised by different customers. The company encourages its Customer-Service Representatives (CSRs) to attend school. This practice has made it easier for the company to address the major issues affecting its customers.
The company always identifies new strategies and approaches in order to improve the services availed to its consumers. This practice has encouraged more customers to purchase their sandwiches and coffee from the company. Every FSG works hard in order to create a mutual relationship between the company and its customers. The “approach equips more customers with the best knowledge about various products” (Schermerhorn 83).
The company’s website also helps such CSRs to deal with the challenges affecting various customers. The company is currently providing its services and foods to many customers using its online presence. This strategy has made it easier for the company to attract more clients. New teams have emerged in different departments. Such teams have been providing the required support to every customer.
The firm provides the best information to its customers and stakeholders. Every complaint presented by a customer becomes a major opportunity at the company (Buttle 63). Dunkin’ Donuts uses such complaints to make new procedures that can improve the quality of services availed to its future customers.
Communication has also become a powerful practice at the firm. Every individual can deal with the issues making it impossible for Dunkin’ Donuts to achieve its business goals. The company has identified new programs to reward its faithful customers. The organization monitors and analyzes information in order to produce better ideas.
The firm’s Customer Service Center (CSC) is full of competent and well-trained professionals who can address the issues raised by different customers (Buttle 49). This practice has made it possible for Dunkin’ Donuts to become a leading player in the American retailing industry.
Positive consumer interactions are also evident at the company. The company identifies new strategies and technologies that will deliver quality services to its customers. Dunkin’ Donuts also liaises with various companies and partners in order to improve the quality of services availed to various customers.
The customers are also encouraged to be part of every decision-making process at the company. This approach has addressed many challenges that might affect the firm’s competitive edge (Schermerhorn 94). The managers and leaders embrace the power of teamwork at the company. The practice has made it easier for Dunkin’ Donuts to become a leading player in its industry.
Comparing and Contrasting the Three Companies: Best Practices
The practices embraced by these three companies explain why CRM is a powerful concept. The discussion identifies the strategies and practices embraced by various organizations in order to emerge successful. Wal-Mart’s CRM has attracted more clients thus making the company profitable (Fishman 102).
However, Wal-Mart’s business strategy does not monitor the purchasing behaviors of its clients. Amazon has a meaningful CRM strategy that improves the level of interaction with its customers. The company has opened numerous stores to offer convenient shopping experiences to different customers. Dunkin’ Donuts has “embraced a powerful model that addresses challenges and promotes its competitive advantage” (Fishman 109). Dunkin’ Donuts’ internal strengths have dealt with various problems affecting its performance.
That being the case, these three companies use effective CRM strategies in an attempt to support their business models (Buttle 81). Wall-Mart should therefore borrow new concepts and ideas from Amazon’s CRM in order to achieve its potentials. Dunkin’ Donuts can also use its online presence to promote its business performance.
Works Cited
Buttle, Francis. Customer Relationship Management: Concepts and Tools. New York: Routledge, 2004. Print.
Fishman, Charles. The Wal-Mart Effect: How the World’s Most Powerful Company Really Works, and how It’s Transforming the American Economy. New York, Penguin Press, 2012. Print.
Schermerhorn, John. Exploring Management. New York: Wiley, 2013. Print.