Customer Related Activities - Assignment Example

Relationship Management of RadioShack and Best Buy Introduction With the increasing competition in the current market place, it has become absolutely necessary for business organisations to manage good relationships with their customers. This enables the company to maintain the customers and gain a competitive edge against its major competitors in the market. Maintaining a good relationship with customers requires a company to practice customer-focused activities effectively. For instance; a good customer service, improved quality and reduced prices of products enables a company to attract new customers and retain the current customers. The three types of CRM which companies may use to maintain a good relationship with customers are: operational CRM, collaborative CRM and analytical CRM. Operational CRM ensures that there is a direct interaction between the company and the customers (Lambert & Supply Chain Management Institute, 2008). Analytical CRM helps the company to analyse the CRM strategies to determine how the company can effectively manage sales, services and marketing activities. Finally, collaborative CRM enables communication within the company’s CRM environment. This paper will analyse the CRM of two competing companies in the international market. These are: Best Buy and RadioShack. Both of these companies are retail companies selling electronic and electrical products and services mainly online to various customers in the world. They act more like agencies by linking producers to consumers through effective internet marketing. In both companies, customers shop for products online and make online orders which are then processed and shipped by the company to the convenient location of the customer. The products handled by both companies are electronics such as computers, mobile phones, cameras, music instruments, video games and toys among others. Customer relationship management activities are evident from the websites of the two companies. Each of the companies uses its own customer relationship approach so to win and retain customers. This paper will identify various customer related activities which constitute an effective CRM from the websites of the two companies. It will also find out the effective e-commerce and CRM strategies and applications utilized on the company’s website. 2. Customer Related activities 2.1. Best Buy The main focus of Best Buy in its relationship with customers is the shopping experience and satisfaction of customers through such strategies as pricing and quality of products. The company seeks to satisfy the needs of the company by ensuring that they supply the right quality products to the customers at the right time and place. Focusing more on the product has become the main focus of the company in attracting new customers and maintaining the existing ones. The company’s website provides an individualized service where the company learns how the customers define the quality of their products and services. This enables the company to customize their product, services and pricing through a collaborative mechanism (Li, 2007). This system is enabled by an effective CRM system which enables the customers to acquire information from the website concerning the company’s products and services and give a feedback which can be used by the company to offer the best quality and prices as desired by the customers. Apart from the product improvements, another customer related activity practiced by the company is customer service and support. The company provides customers with 24/7 customer service support. This enables them to get the information, services and products they need any time. Whenever a customer wishes to make enquiries or request for a product, he/she gets an opportunity to log into the company’s website and get the customer services he/she wants. These services include self-services such as “check order status”, “view order history” and “manage your credit card” (Best Buy, 2013). These services enable the customers to get an easy access to the products and services they need. In case the customers find any difficulty in any shopping experience, he/she may contact the company to show their concerns through an e-mail address provided in the company. Best Buy also provides customers with free shipping and on some items. This is a customer-focused activity which enables the customer to acquire products at low prices, hence getting value for the price they pay for the products. This free shipping activity is offered without the requirement of a minimum purchase as most companies do. However, this excludes Best Buy’s market place items, scheduled delivery items, and items displaying the message “In Store Only” (Best Buy, 2013). A free store pickup is also provided on some occasions by the company to deliver the ordered products to customers within the same day of order. This fast and effective delivery ensures that the customers get their products and services on time. This increases their satisfaction levels and loyalty to the company. 2.2. RadioShack RadioShack’s website is mainly made of promotional activities. These promotional activities aim at attracting customers and retaining the new ones. One of the examples of the promotional activities of the company is an advertisement which appears on the company’s homepage. The advert is named, “show mom some love & we’ll you a 10% coupon” (RadioShack, 2013). As the mother’s day approaches, the company promotes its business using the theme of a love for one’s mother. This attracts people who would wish to buy products for their moms. There are also other adverts which keep appearing in turns on the company’s website such as “Flowers are amateurs” and “The hottest Phone has just arrived (Samsung Galaxy S4)”. These promotional advertisements are some of the customer focused activities of RadioShack which attract customers and retain them for the long term. In other words, they enable a good customer relationship for the company. Almost the entire RadioShack website is filled with attractive advertisements which give information regarding the company’s products and offers. This enables the customers to get the information they need to make their purchase decisions. It also gives them information concerning new developments within the organisation. The website therefore maintains a good relationship between the company and the customers because the customers keep checking the website for new product features, updates and developments which may be advertised on the website (Mitchell, Coles and Keane, 2009). The advertisements also ensure that the customers know about the top brands in the market, hence developing a brand loyalty towards the brands advertised RadioShack through their website. Brand loyalty enhances a good Customer relationship. 3. E-commerce and CRM strategies and applications on the websites 3.1. Best Buy Best Buy CRM strategies and applications include several customized applications which can be used by customers to manage their business dealings with the company. The CRM strategies are also used by the customers to acquire support, help and information from the company whenever they need something important in their shopping experience. Through the use of the company’s CRM strategies and applications, Best Buy customers are able to order their products of choice and receive customized products and services through effective delivery by the company. The main CRM features and applications include store locator, Reward system, my account, customer service and credit card applications (Best Buy, 2013). These e-commerce applications ensure that the company maintains a good relationship with customers. Store locator is used by customers to check online for the company’s available stores so that they may find their nearest stores for their shopping purposes (RadioShack, 2013). My account application is used by the customers to manage their own shopping activities. They use them to make orders, track their orders, manage their shopping activities and make enquiries. This makes their shopping easy and effective. Customer service is a CRM strategy used by the company to assist customers gets help and support whenever they find difficulty in their shopping experience or when they need certain information concerning the company’s products and services (Peppers & Rogers, 2004). This is a good feature of the company’s Customer Relationship Management. 3.2. Radio Shack RadioShack also has certain e-commerce CRM strategies and applications which enables it to develop an effective relationship with customers. These include 24/7 customer service, My Store, Deals and weekly Ad applications. 24/7 customer service application is used to provide customers 24-hours customer service and support whenever they need help of any sort ranging from difficulties in making orders, receiving deliveries and locating the company’s stores. Furthermore, the customer service application enables the customers to enquire for certain information necessary for them to make consumption decisions. My store application is used by customers to select a store from where they can make online shopping. A customer selects a store from the website and identifies a product from the store. He/she then makes orders online, and products will be delivered from the selected stores. This process enhances a good relationship between the company and the customers. References list Best Buy (2013). Low Price guarantee. Accessed on May 3, 2012 from http://www.bestbuy.com Chopra, S., and Meindl, P. (2001). Supply Chain Management: Strategy, Planning, and Operations, Upper Saddle River, NJ.: Prentice-Hall, Inc. Lambert, D. M., & Supply Chain Management Institute. (2008). Supply chain management: Processes, partnerships, performance. Sarasota: Supply Chain Management Institute. Li, L., (2007). Supply chain management: Concepts, techniques, and practices enhancing the value through collaboration, Hackensack, NJ.: World Scientific. Mitchell, J., Coles, C and Keane, J. (2009). Upgrading along Value Chains: Strategies for Poverty Reduction in Latin America, London, UK: COPLA Global - Overseas Development Institute. Peppers, D., & Rogers, M. (2004). Managing Customer Relationships: A Strategic Framework. Hoboken: John Wiley & Sons. Porter, M. (1996). What is Strategy? Harvard Business Review, November–December, 61-78. RadioShack (2013). 24/7 customer service. Accessed on May 3, 2013 from http://www.radioshack.com. Siriginidi, S.R. (2000). Enterprise resource planning in re-engineering business. Business Process Management Journal, 6 (5), 376-91. Read More