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customer relationship management essay

Essay Topic: Management. EXECUTIVE SUMMARY This document included a survey about Starbucks. I went to a Starbucks on Xinhua road as a mystery shopper. Starbucks Corporation (NASDAQ: SBUX) is an international coffee and coffeehouse chain based in Seattle, Washington. We will write a custom essay sample on Customer Relationship Management. A Strategic Framework for Customer Relationship Management Introduction: This article explores the plethora of literature available on CRM and relationship marketing and emphasizes the need for a single, process-based framework that helps in making a comprehensive . Kotler , customer relationship management is the overall process of building and maintaining profitable customer relationship by offering superior customer value and satisfaction which means deals with all the aspects of attaining, maintaining and growing customer needs (kotler & Armstrong, ).

Essay on Customer Relationship Management - Words | Bartleby

This page of the essay has words. Download the full version above. To address the current trend, organizations are moving away from the traditional mode of marketing to manage their customers online, or to have a mix of both.

The effectiveness of social media marketing cannot be understated as portrayed by the success of Starbucks; which went further to launch its own social media site — MyStarbucksIdea. Even though organizations have realized the need to use social media, they need to understand that the best approach is the customer generated content, where the customers engage in issues affecting the brand as the organization responds to their concerns promptly.

This customer relationship management essay provides a summary of social media marketing and their implications on customer relations by analyzing Starbucks Corporation to give a relevant case on the success and challenges that might be faced. Further, it gives an analysis of the available content on three social media networks adopted by Starbucks.

However, the research is limited to three sites — Facebook, Twitter and MyStarbucksIdea and the scope of the analysis looks at samples of the content available by backing it up with the existing literature review. Finally, the paper summarizes the recommendations that can be adopted by a company that would like to follow a similar path.

However, in the late nineties, organizations realized the need to manage their customers better in order to improve sales Soliman The current business environment is very competitive and, thus, it takes a good firm to maximize the benefits of a good customer relationship. The current customer management calls for a direct contact between a marketer and a customer, keeping customers and building long term relationships Ismail et al. Further, the need for customer relationship management has necessitated firms to invent new ways of dealing with their customers and, therefore, making technological advances that ensure they are up to date with the needs of the customers Jayachandran et al.

Therefore, organizations have been forced to shift from the traditional marketing model where firms had the privilege of monitoring customer data by building a database of their current and prospective clients Payne and Frow to a more interactive model by using the advancements in technology.

At the center of these technological advancements is the use of social media. With a variety of social media platforms, customer relationship management essay, firms have had to rethink how they relate to their customers as they no longer play a passive role. This is because of the recognition that organizations are fighting for the same customers who are informed on the available products on the market by a click of a button, say mobile phone and an informed society which can question and express opinions about an organization or product to a very large online audience and, thus, shape or break a company product or service Schultz, Skiera, customer relationship management essay, and WiesalGensler et al.

Eventually, the marketing power is shifted to the customers Labrecque et al. Nevertheless, social media offers companies a chance to maximize on the feedback from customers and sharing of product information even though customers have a challenge to voluntarily share information Desouza et al.

In this paper, I will analyze the relationship between social media and customer relationship management by narrowing down to a marketing context.

The analysis will focus on the beverage industry, customer relationship management essay, with the application of Starbucks Corporation as a case study and pioneer in social medial marketing. The findings from this analysis will inform other companies on the benefits of social media as an effective marketing tool.

The systems include, among others, marketing, information and sales systems. Consequently, a good mix of these elements will ensure that the decisions made by the organization are in the best interest of the customers and, thus, improving its market share and the organizational performance at large.

Social Media Kietzman et al. It is a technological product of the Web 2. Having transformed a passive customer into a content generator, social media plays a significant role in marketing.

In presenting this paper, I will limit customer relationship management essay use of social media to micro-blogging services, enhancing social networks, customer and product location and forums for corporate discussions. First, the most famous among the population, is the use of micro posts status updates, messages and commentaries Gao et al Through social sites like Twitter and FriendFeed, users air their views freely without any constraint in correspondence as they use a structure where one follows another Kwak et al.

Second is the social networking sites which are defined by Ellison et al. Good examples of these services include Facebook and Myspace that organizations and consumers have found useful in their day to day mainstream interactions. Third, customer relationship management essay, the rapid development of internet-enabled mobile devices has led to the provision of location-finder services that enable users customer relationship management essay receive information tailored to their context and environment Dhar and Varshney These services enabled by Google and Foursquare have changed the way mobile business works Junglas and Watson Finally, Lopez-Nicolas and Molina-Castillo defined forums used for corporate discussions and analysis as channels organizations use for specific discussions and, thus, giving users an opportunity to analyze products and services Maswera et al.

Further, the forums act as an electronic word of mouth Hennig-Thurau et al, customer relationship management essay. Social Media and its Impact on CRM Regardless the generalization, the popularity and the sociability of social media, some people choose not to actively engage in Web 2. There are limited studies in examining the reasons for not participating but on the other hand, one empirical research from Al-Dubai et al.

Further studies have indicated that it is important to ensure that trust is maintained between the organizations and its customers. With the uncertainty, easy accessibility and the entry of the internet, e-commerce there is a perceived risk that social media is an unreliable, manipulative and dishonest marketplace or platform, which further address the importance of developing trust among customers.

There is a further suggestion that consumers will not pay attention to everything the company promotes and claim and eventually turn away when there is an issue in trusting a brand from its social media performance and, thus, it is important for a brand to communicate sincerely and transparently. It has to carefully consider and be aware of the posts uploaded. To put this, the company should ensure realistic communication and make a lot of information available which could be verified in real term as promised, like providing a real product image with truthful description, on its media sites to show their reliability of every post on social customer relationship management essay site and to engage customers as they are better informed.

According to Statistica. With roughly 1. Therefore, organizations have been faced with a good platform to get to and manage their customers, increase revenue and efficiency and reduce costs. Social media. As the findings in this paper will show, organizations that are effectively utilizing social media have everything to gain and, therefore, the research will address this question: How can firms manage the customer relationship online better?

What are the benefits and challenges? Methodology The focus of this study is on qualitative data developed by scholars in the field that analyze how social media has helped Starbucks develop and maintain its relationship with its customers and, thus, being a market leader in the coffee segment.

According to Stakequalitative data allow for a rich analysis of the available data. Further, customer relationship management essay, I will analyze the available content on Starbucks use of social media Facebook, customer relationship management essay, MyStarbucksIdea and Twitter and relate it to its use and effectiveness over time in enhancing customer relations.

Similarly, I will employ the SWOT strengths, customer relationship management essay, weaknesses, opportunities and threats that are faced by Starbucks in their quest to maintain its social media presence and, thus, manage customer relationships appropriately. The use of Starbucks as a case study customer relationship management essay necessitated by the online presence of as the best beverage company that effectively employs social media to relate to its customers.

According to a study conducted by Phase One inStarbucks was ranked as the best socially-engaged company, customer relationship management essay. Further, studies by Dachi Group ranks Starbucks as the 36th most effective company within the U. S in the use of social media. The distinction between Starbucks and other companies is that whilst other companies use social media as a marketing tool, Starbucks uses it to enhance customer relationship and experience and, thus, is guided by the following ten principles: listen, be transparent, use authorities, timely information sharing, being human, offering personal attention, being humble, not preaching, fans have full access and without spam.

In reviewing the presence of Starbucks on the social media networks, I will record the observed content and then analyze then randomly analyze the engagement between Starbucks and the customers, with a leaning towards customer responses.

Further, Customer relationship management essay will use the available content in terms of numbers and nature of information shared by both parties to review the relationship between the company and the customers.

However, the methodology has a limitation as it will use data that seems relevant in enhancing the customer relationship and data available in English. The Case: Starbucks A coffee house that humbly started in Seattle incustomer relationship management essay, Starbucks has grown and is still growing, with a current estimate of 21, stores across the globe Statista At some point, beforeStarbucks had weekly visitors of 60 million across its outlets.

Starbucks and Facebook share a mutual benefit, that is; 1 Starbucks engages a Megaphone function by using Facebook to communicate and share content with the public.

It manages to mediate those interactions both in public and private, depending on their nature. Further it measures exposure, showing user activity and demographics, customer relationship management essay, and demonstrating campaign-related actions e. Further, to ensure Startbucks engages its customer relationship management essay fully, it lets them participate in the introduction of some of their new products or packages as illustrated in the figures below.

Figure 1 Figure 2 Figure 3 In using the knowledge from customers on Facebook, Starbucks will understand the behavior of customers, their preferences and expectations and how the customers react to new products The Nikkei Weekly Twitter A very popular microblogging site, Twitter allows for real time sharing and responses as it limits the number of characters one can post.

This ensures that whatever an organization posts, it has to determine its relevance and, thus, customer relationship management essay, the most important point is likely to be highlighted. The current Starbucks Twitter account February 11, has Such a massive reach gives Starbucks an opportunity to utilize this site to their advantage, which they have. The customers are well engaged through the customer relationship management essay of recipes, new and improved products and services.

Also, satisfied customers have the opportunity of sharing retweeting their experience with the company. Similarly, Twitter has got everyone talking about Starbucks, with an average of 10 tweets per second mentioning the brand. Also, the personalized messaging on their cups has had everyone talk about it, posting pictures and re-sharing tweets.

Rumors and speculations have also been brought forth to Starbucks through Twitter as York indicated, Starbucks was rumored to fund the war in Israel.

However, no amount of response, though having been good from Starbucks, customer relationship management essay, has been able to let the rumor fade as people are still talking about it as illustrated in the figure below. Figure 4 The above speculation, customer relationship management essay, though dismissed as a rumor, has dogged Starbucks for more than 5 years now and, therefore, posing a challenge of bad negativity and, in extreme cases, boycott of the brand.

MyStarbucksIdea MyStarbucksIdea is a corporate discussion site launched by Starbucks in as a channel for question asking, offering new ideas and venting out any frustrations that customers may be harboring. In its first 2 months, customers contributed 41, ideas York Customers who contribute frequently are encouraged through a reward system Sigala MyStarbucksIdeas has been used as a good case study and a success story in crowdsourcing. To date,ideas have been submitted, reviewed and analyzed, with of them adopted by Starbucks.

This site qualifies as an effective marketing tool and a customer relationship management essay relationship management tool that strives to put the customer first. The figure below shows some of the ideas already adopted by Starbucks. Figure 5 Discussion From the above analysis, customer relationship management essay, it is clear that Starbucks is a major player in the beverage industry thanks to the effective use of social media, customer relationship management essay.

In deploying a wide range of social media tools to maximize the customer experience and relationships, Starbucks not only produces the best for its customers, but also ensures that the customer needs and ideas are taken care of. By customer relationship management essay of having dedicated staff to manage social relationships in these media platforms, Starbucks rates ahead in its monitoring mechanism and, thus, gets to know matters affecting customers on the ground and in real time Castellanos et al.

This integrated approach towards social media further enhances the impact West Further, Starbucks has changed the traditional perception of a customer — from the passive customer to customer relationship management essay active one whose innovative ideas are considered Sigala This kind of a work-together attitude enhances the customer loyalty Chua Other than the relationship created, customer relationship management essay, Starbucks has been able to expand its business and, therefore increasing its revenue.

Furthermore, the success story in Starbucks social media influence and leadership in customer relationship and experience can be attributed to the following factors: 1 Starbucks prides itself in building on current relationships as a satisfied customer is able to influence another in the long run. Such emphasis on customer service, together with good online engagement helps influence the customer market. The many likes and shares on Facebook and Twitter spill over to reach new customers.

Implications customer relationship management essay Recommendations Social media allows organizations to take advantage of the large online community to gain a business advantage by looking at the success of other players within the industry. With this in mind, organizations should be able to have the internal capacity, even by having a social media department, that will monitor the trends and come up with creative ways of engaging people online.

In this regard, for an organization to ape its peers in the beverage industry, the following customer relationship management essay should be put into practice: a For social media to be a success, an organization should thrive to diversify in its social media networks by riding on existing channels e.


A Strategic Framework for Customer Relationship Management Free Essays -


customer relationship management essay


That makes the company’s customer relationship management more targeted. Nettling ; s problem There have two ways: explicit and tacit to answer the question. One project need a lot of information like problems, it realization on the part of the decision maker that there is a better state than the current. A Strategic Framework for Customer Relationship Management Introduction: This article explores the plethora of literature available on CRM and relationship marketing and emphasizes the need for a single, process-based framework that helps in making a comprehensive . Jul 06,  · The current business environment is very competitive and, thus, it takes a good firm to maximize the benefits of a good customer relationship. The current customer management calls for a direct contact between a marketer and a customer, keeping customers and building long term relationships (Ismail et al. ).