What is the concept of CRM in relation to the Absa Business Banking credit origination process? Customer Relationship Management is not a new concept it’s been around for more than a decade. Most companies see CRM as just a standard part of the IT infrastructure or cost of doing business but failing to understand its full strategic value and potential. It should not be an appliance but rather a vital part of a firm’s overall business strategy. The CRM concept is being used in the financial services industry, where firms struggled with competitive differentiation as their products and services have become increasingly commoditized. It helps the companies to understand clients more deeply and meet their needs better than competitors has …show more content…
Communication Communication is the exchange of information between supplier and customer. It is the ability to provide trustworthy and timely information. When there is effective communication between the bank and customers, a better relationship, customer satisfaction, and fidelity are likely to result. The voice of the customer contains the customers' needs expressed in their own words. It can be captured through questionnaires, observations, and so many other ways for an existing product or service. Conflict handling Conflict handling refers to the supplier's ability to minimize the negative consequences of manifest and potential conflicts. It also reflects the supplier's ability to avoid potential conflicts and solve manifest conflicts before they create problems, and the ability to openly discuss solutions when problems arise. The ability of the bank to handle conflict well will determine customer satisfaction and customer loyalty. (Ndubisi at el, 2009, p.7.) …show more content…
Companies that implement CRM make better relationships with their customers, achieve loyal customers and a substantial payback, increased revenue and reduced cost. Implementation of CRM helps the organization in reduction of its advertising costs. It also makes it easier to target specific customers by focusing on their needs. CRM allows organizations to compete for customers based on service, not prices and also prevents overspending on low-value clients or under spending on high-value ones. CRM improves the use of customer channel, thus making the most of each contact with a
Bob’s Meltdown In today’s workplace communication is key, collaboration crucial and teamwork a top management buzzword. These facets encourage knowledge sharing, co‐operation and a joint sense of purpose. However, such an increase in interpersonal relationships too often creates an unwanted side effect: conflict. (http://www.emeraldinsight.com/doi/abs/10.1108/14777280310795784)
Supplier Power The supplier bargaining power in the industry is low. Currently, the sourcing and supply chain management industries make larger orders which will increase their cost savings. This shows Cooper Tire and Rubber Company it can order from the same supplier as Goodyear and Michelin. Luckily, Cooper Tire realizes that they do not have the same level of bargaining power relative to Goodyear or Michelin stress the importance on maintaining a supplier relationship.
Communication is the process of transferring of information. Viswanathan (2010) says communication can take many forms of verbal and non-verbal methods which may include speaking, writing, gestures, expressions, listening and body language to name a few. All of these things should be taken into consideration to ensure an effective means of sending and receiving information. How and what information is sent may not be received in the same manner intended.
A supplier with strong bargaining power has the advantage of charging their price higher or selling low quality of the product to them. The bargaining power of suppliers will be low as there are many suppliers in the market offers similar products and this allows courts to switch to other suppliers that offer lower cost. Intensity of rivalry within industry High Threat Competitors in the industries There are quite a number of businesses involve home furnishing and electrical appliance.
Suppliers in controlling position can reduce the margins of Vera Bradley, and the amount can receive in the market. Controlling suppliers use their control to obtain higher prices from the industry members, and limiting their opportunities to find better deals. As a result, the higher supplier bargaining power can cause lower the profitability of luggage and accessories industry. In
Question 1 answer: Customer relationship management is mainly about building relationships with a company’s targeted profitable customers and maintaining that relationship through delivering customer value, as in how a consumer perceives a certain product and values it enough to buy it rather than buying the competitor’s product, and delivering customer satisfaction where the product meets the exact expectations the consumer had actually expected from the product or more, but not less. Companies can build customer relationships at many levels, depending on the nature of the target market (Kotler and Armstrong, 1988). Companies with many low-margin customers can develop basic relationships by which a company doesn’t get to know it’s consumers
Case Study 1: Banc One Corporation Asset and Liability Management Gizem Akkan So basically, the main problem Banc One Corporation has falling share prices as it is written from a 48 ¾ to 36 ¾ in April 1993. The basic reason behind this decline is that its exposure to derivative securities. This decline in share prices raises concerns among the Banc One’s Investors as well as its analysts since they are uncomfortable with huge amount of derivative usage particularly swaps. They think they are not able to measure risks they exposed so this create uncertainity about the firm’s financial stability.
The anticipation of the conflict can happen when one unit doesn't think that the staff members on the other unit are very experience or suitable but still accepts orders and plans for patients from them. The second stage is perceived conflict which requires recognition that the conflict exists. The third conflict is the felt conflict this develops when individuals start to have feelings or emotions about the conflict. The fourth stage is the manifest conflict which is the most fatal or constructive. This stage can be destructive and cause staff members to avoid a staff member, ignore policy rules/regulation, denying a problem and discussing the staff members issue in public with downgrading comments.
Stakeholder analysis Stakeholder are entity that will affect the organization actions, objectives and policies. There are two types of stakeholder which is internal stakeholder and external stakeholder. The McDonald’s stakeholders are customers, suppliers, employees, managers, government, local communities and pressure groups. Customers Customers are the external stakeholders of the company, no customer mean zero profit.
One of the finest examples of a company using CRM successfully is Etsy. Etsy is a marketplace where individuals around the world connect, both online and offline, to make, offer, and purchase hand crafted one-of-a-kind products. The mission statement of Etsy is: “We are building a human, authentic and community-centric global and local marketplace. We are committed to using the power of business to create a better world through our platform, our members, our employees and the communities we serve” , and it is evident that even this correlates to the features of CRM.
Thus, the power of the suppliers is high, since the suppliers have a grip on the market due to the huge demand of their manufactured products. Moreover, suppliers can affect the industry through their capacities to raise prices or reduce the quality of purchased goods and services. Bargaining Power of Buyers The buyers in the airline industry are demanding more and better quality services .The
Suppliers are one of the most important elements for any business. The power of the suppliers depends on the volume of suppliers existing in the market and the uniqueness of their products or services. Apple outsources micro-chip from Intel for high processing technology. The power of customer depends on the purchasing volume, availability of substitutes, price sensitivity and buyers’ incentives. The consumers of Apple have a flexible variety of product line from its competitors.
M.W. Cummin describes the word communication “process of conveying message (fact, ideas, attitudes and opinions) from one person to another so that they are understood”. [1] Communication in business: For businesses to be successful it is very important that communication must be effective. Effective communication
3- Threats of substitute products 4- Bargaining power of customers 5- Bargaining power of suppliers Practical implementation of the Model:
I. Introduction: The communication is a process which allows people to express their thoughts, feeling and ideas, it occurs between two or more people and it 's an effective way to show our needs, demands, and requests. The communication can consist on various modes like speech, visuals, sign, written forms, behaviour or even cartoons & flyers. Communication is basically divided into three steps, starting with the Arrangement of message and ideas in mind of sender and then Packaging or Encoding the same message or idea and delivering it to the receiver through a particular channel the receiver will then decode and interpret the message and send a feedback to the sender.