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The Application of Customer Relationship Management in Local Retailing

Author: HuangZuo
Tutor: QuDeSen
School: Capital University of Economics
Course: Industrial Economics
Keywords: Customer Relationship Management Retailing Market Segmentation Customer Satisfaction Customer Loyalty
CLC: F721
Type: Master's thesis
Year: 2006
Downloads: 1028
Quote: 3
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Abstract


Customer Relationship Management (CRM) originates from Relationship Marketing. The target of CRM is to build good relationships between enterprises and customers through providing customers with the very products and services on critical needs. Thanks to the long term relationships, customer needs could be satisfied greatly and enterprises could gain more sales and returns. CRM system makes CRM more efficiently in collecting and analyzing the customer information. So enterprises could understand the behavior of customers and use the information to better serve customers. Since the CRM came into being, it had brought its function into full pay in some industry, such as telecommunications industry, finance and so on. As the terminal seller, retailer own huge amount of customers. So, it’s very important in selecting its target customers from all the customers and satisfying the target customers. Especially for local retailers, the changes of consumer demands lead to the increasing of retail institution. As the result, it’s drastic in winning customer. Another hand, the retailing magnates entered China continually after the China’s joining the WTO. It’s makes competition of retailing more and more serious. So, it’s very urgent for local retailers to find the way to win the competition.Considering the several practice in some industries, the writer bring up the use of CRM in retailing in order to improve the widespread questions, such as positioning indistinct, target customer indefinite and concept straggly, etc. CRM could help retailers to segment customer market exactly and make certain customer demands so as to provide one-to-one marketing and improve customer satisfaction and customer loyalty. Then, retailers could gain more and develop for long. After that, local retailers could improve the ability of competition.The article seeks for the feasibility of the use of CRM in local retailing through the study of CRM’s basic principles and CRM system’s working practices. Then, the writer forms the model which reflects the procedure of CRM in retailing. The writer also analyzes the function which could be achieved after the retailers’ using of CRM. Finally, the writer points out the key problems should be paid more attentions in the use of CRM.

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CLC: > Economic > Trade and Economic > China's domestic trade and economic > Commercial institutional and organizational
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