Managing Technology in a Business Environment/Implementation of CRM at TBWI
Implementation of CRM at TBWI
Introduction
Currently, the expansion of the business organization activities is increasingly becoming challenging because of the nature of the systems used by those companies.
This is because as the organization grows and expands, its management and coordination of its activities become more sophisticated involving the need of new improved
ways of operating. To achieve this, Information Technology (IT) is the most accurate solution as it allows companies to develop and implement various IT-based systems
that are intended to enhance their performance. Customer relationship management (CRM) is one of the most important IT-based systems that enable companies to maintain
control over the supply chain and customer relationship (Kubina & Lendel, 2015). The purpose of this paper is to discuss the implementation of CRM at TBWI. The paper
will also highlight the challenges and possible alternatives during the implementation based on the evidence from Mercedes-Benz and General Motors Acceptance Corp
Commercial Mortgage (GMACCM).
Customer Relationship Management
Customer relationship management can be defined as a set of strategies practices and technologies that are used by companies and business organization to analyze
organize, manage customer relations and data throughout their lifecycle (Kubina & Lendel, 2015). The main goal customer relationship is to improve and enhance the
customer satisfaction through well-maintained relationships. CRM, therefore, assists the company in retaining its existing customers, hence maintaining a strong
customer base.
Some of the benefits of CRM include customer satisfaction, customer retention and good performance of the company resulting in an increase in profitability. There
exist three main types of CRM such as collaborative CRM, operational CRM as well as analytical CRM. The operational CRM focuses on products and services offered by the
company. This type of CRM assists the company in its marketing and sales processes (Kubina & Lendel, 2015). The collaborative CRM, on the other hand, consists of
communications and interactions between companies and their customers. It takes into consideration the complaints and customer’s feedbacks. In contrast, the analytical
CRM emphasizes on the customer data analysis and data management to be used during the decision-making process. It is, therefore, important to mention that, the
implementation of CRM can be done in more complex software in basic software.
To achieve the objective and goals of this CRM initiative at TBWI, the most appropriate software model to use is a custom designed system. Regardless of its cost
disadvantage in the short time, custom designed system presents numerous benefits in the long. For example, as a company that is willing to achieve higher performance
TBWI needs to use custom designed system because they meet all the requirements as it is specifically designed for the company. Also, the benefits of the custom-
designed system, in the long run, include the accuracy of data and results as well as the way it does not require to be updated often.
Failed CRM implementation at GMACCM
Executive summary of the case study
After its success in the real-estate loans business, GMACCM decided to implement CRM as a way of helping it achieve better performance and profitability (Buttimer,
2003). The initiative was motivated by the most recent success that resulted from the use of state-of-the-art technology system. According to reports, after realizing
that technology allows them to keep the cost per loan service below the average in the industry, GMACCM sought to implement CRM in 1999. However, the initiative failed
completely and instead of bringing a solution; it created more problems to the company.
The causes of this failure
According to reports, the causes of this implementation failure at GMACCM include the fact that consultants did not define the objectives of the program (Buttimer,
2003). Even though the initial goal of the company was to increase efficiency, automation and the amount of borrower information, consultants never explored the goals
of users. This means that the entire process failed from the design stage and therefore, they were unable to define who the users are (Buttimer, 2003). For example, by
creating and installing the automated voice-response system, consultants did not consider that the existing structure of the company conformed to the mental model of
users. They instead assumed that customers seeking information would know which department to request. This resulted in a waste of money, the customer dissatisfaction
as well as a decline in the number of customers.
Successful CRM implementation at Mercedes-Benz
Executive summary of the case
This case study discusses how Mercedes-Benz took the initiative of handling and managing the whole network from the manufacturing through the dealers up to the final
consumers. This initiative came after researchers suggested that some of its customers were dissatisfied with the services that they receive from the dealers (Bhasin,
2015). Some of the key issues that were faced by customers include unclear communication and the inadequate responses to customers’ inquiries. In order to address
these issues, the UK distributor Daimler Chrysler (DCUK) decided to take over the control of the whole chain of distribution, hence implementing the CRM (Bhasin,
2015).
The causes of this implementation
The main factors that influenced the success of this initiative include the fact that DCUK recognized the link between customers, dealers, and manufacturers. This
means the identification of the problem and the underlying cause of the problem which is the first step towards a finding solution. Secondly, DCUK used research to
benchmark Mercedes Benz against other key players in the industry such as BMW and Lexus (Bhasin, 2015). After gathering sufficient information, DCUK decided to
reorganize its market to adopt new distribution model. They engaged the existing dealers in the process and eventually signed the new agreements. This allowed DCUK to
know the readiness of their dealers to implement the system as well as to engage their employees in training to empower them and showing them the importance of having
efficient CRM. The company, therefore, started the program with one pilot market area, and the result was outstanding in all aspects of the company (Bhasin, 2015). The
new CRM enabled DCUK to revive the customer’s experience facilitating communication and follow-up of the customers’ inquiries both through e-mail, phone calls, face-
to-face among others. It is also important to note that each contact was timed carefully to fit with a specific ownership cycle. As a result, DCUK was able to gather
process and analyze data which enabled them to operate under a single database instead of different database operated by multiple dealerships. Also, the system allowed
them to record each and every customer contact. This played a significant role in gathering and improving the quality of data and customer information (Bhasin, 2015).
CRM Implementation approaches at TBWI
Based on the nature of the business and the sector of activity that TBWI operates in, the best implementation model suitable for this system is a prototype (Steel,
Dubelaar, & Ewing, 2013). This is due to its flexibility and ability to consider the company’s inputs when developing this model. Even though the cost may be a bit
higher than the using waterfall model, this model presents little chances of disappointing the company in meeting the initial goals of the program. Therefore, to
effectively achieve desired results, TBWI should consider the value of the whole process in terms of time and money. This will enable them to decide based on the
return on investment (ROI) and expected results from the CRM compared to the amount of resources invested in it (Steel, Dubelaar, & Ewing, 2013). Also, TBWI should set
specific goals and consider the user of the program to avoid risks that might occur in the end. One of the main issues that might affect the effective implementation
is the underestimation of the project budget. They, therefore, need to make necessary arrangement before starting the process (Steel, Dubelaar, & Ewing, 2013).
References
Bhasin, J. (2015). Customer Relationship Management – Case Study: Mercedes Benz (1st ed.). Jas Singh Bhasin. Retrieved from
http://www.slideshare.net/djjaanjazz/customer– relationship-management-case-study-on-Mercedes
Buttimer, J. (2003). A failed Customer Relationship Management (CRM)System: General Motors Acceptance Corp. Commercial Mortgage (GMACCM) (1st ed.). Jessica Buttimer.
Kubina, M. & Lendel, V. (2015). Successful Application of Social CRM in The Company. Procedia Economics And Finance, 23, 1190-1194.
http://dx.doi.org/10.1016/s2212– 5671(15)00487-6
Steel, M., Dubelaar, C., & Ewing, M. (2013). Developing customized CRM projects: The role of industry norms, organisational context and customer expectations on CRM
implementation. Industrial Marketing Management, 42(8), 1328-1344. http://dx.doi.org/10.1016/j.indmarman.2012.08.009
