Customer Relationship

Management
Literature Review

Tutor: Nguyen Ngoc Danh

StudenT: Nguyen Minh Tri
Class: Intake 5 Morning
ID: 000798929

Contents
1.0 Introduction ..........................................................................................
1.1. Background ...................................................................................
1.2. Problem discussion .......................................................................
1.3. Objective & Research Questions...................................................
1.4. Demarcations ................................................................................
2.0 Literature review ..................................................................................
2.1. The Objectives & benefits of CRM ................................................
2.2. CRM Strategies ..............................................................................
2.2.1.Interaction .............................................................................
2.2.2.The value of a Customer

1.0

Introduction

This chapter will start with the background to give an general view to the reader.
1.1.

Background

The topic Customer Relationship Management is not a new one because long time ago
there are many merchants who know clearly the importance of building strong
relationship with customers to keep them stay with their business (Jobber 2004).

1.2.

Problem Discussion

1.3.

Objective & Research Questions

The objective of this dissertation is to provide a deeper understanding about the CRM in
B2B companies.
RQ1: how can the objectives and benefits of CRM be defined?
RQ2: how can CRM strategies be defined?
RQ3: how can CRM performance be measured?
1.4.

Demarcations

Because of the limit time for this dissertation then this research will mainly focus on
business to business companies.
2.0

Literature Review

The previous chapter provides an overview and background of CRM with its problems. In
this chapter, some particular research questions of these problems were discussed with
the purpose of showing more additional information of each question.
2.1.

The Objectives & Benefits of CRM

This section introduces a number of authors explanations of purposes and advantage of

managing relationship with customer.
Gronroos (2001) clarifies that the continuing connection and keeping relationship with
customers will support to deliver a feeling of safety, belief and the sensibility of
management. According to Xu and Walton (2005) that most managers decided to
implement the customer relationship management with the following reasons:

Increase customer satisfaction

Maintain current customers

Offer intentional information

Develop Customer Lifetime Value

Advantages of making relationship defined by Gummerson

According to Gummerson (1994), creating relationship with customers is an effective
method to collecting, gaining and retaining part of market. In addition, the benefits also
defined by Gummerson as:O
Retaining
Collecting and gathering the important information of each customer such as: behaviors,
favorites and belief in good relationship of both sides and customer come back
incessantly with close relationship.

Familiarity & profits

Technology and the advantage of using IT system offer better opportunity to build the
sense of closeness with the customers. Retaining close relationship will helps both
customers and organization increase and attain more profits.

Advantages and characteristics defined by Zenf, Weng and Yen

Zeng et al. (2003) explain the characteristics of successful CRM as:
Improved Customer happiness
Take advantage of using IT in CRM can offer quick response service from collecting
information from customer and requirements.
Offer information for future sales
Analyzing and collecting customers purchase and trends for forecast the customers
behavior in the future.
Differentiated and customized service
Apply the new technology to provide more information and distribute the key
performance indicators to each customer.
Enhanced serving customers
Collecting and transferring information effectively and flexibly when it comes. The ability
of accepting and dealing with unpredicted requirements.
Purposes of CRM defined by Xu and Walton
The main motivation of most CRM operations not focus on gaining more important
information but that is doing business more effectively. Xu and Walton (2005) suggest
three principal points of CRM:
Gather information
CRM offers its main function as gathering the information with the intention of creating
the system effectively. Beside this, all communication and interaction between
customers and companies must be saved.
Performance

CRM provides a method to collect large related information and how to use all of them.
The sales department can use all data to understand the customer need and their
behavior in the report and the complaints of customers for which they do not satisfy
with the products and services.
Automation
CRM also helps to develop and increase the productivity and support the operation of
marketing department by automating the sales process.
Purposes of CRM defined by Sherif, Nguyen & Newby
The key function of CRM operation is to gather information of interactions between
customers and the organization (Nguyen at el., 2007). The benefit that CRM offer can be
pointed out such as:
Improving loyalty
Inside the organization, there are many accessible points that all information of every
customer includes trends, behavior and habits also can be simply viewed there.
Gathering better information and sharing knowledge
All information and history about each customer are up to date through CRM system
regardless time and place the communication and interaction from the both sides took
place such as sales, support department or website. .
Understanding customers
Organizations can take advantage of CRM to predict the trends and market demands also
can be forecasted, in addition to have knowledge of the customers with the purpose of
offering better suggestions to the customer.
Better Services
The customer will receive better products and services which modified to suite each or a
group of customers through the use of CRM and all important information.

2.2.

CRM Strategies

CRM offers many advantages to the operation of organization and the first benefit of
CRM is connecting all departments together. Inside organization, there are many touch
points and departments that interconnected through applying CRM and help the front
office get the latest updates for all information to identify the current status of each
customer (Popovich and Chen 2003). In addition, the back office also can use this
information to support their operation to plan and implement better strategies.
2.2.1. Interaction
CRM provides a method to link all the departments in organizations. Popovich and Chen
(2003) suggested that CRM also encourage the process of building a better place for
communication to the customer effectively through allowing accessible information from
inventory or delivery to sales department and on the website that organization can serve
customer faster with better quality. Touch points are places where all the interaction
with firm from the customer. Another function of CRM is syncing all access point in a
company with the aim of delivery a consistent message to customer (Davids 1999).
According to Xu & Yen et al. (2002) add more description to CRM as applying CRM and
interact with all access point that can helps to increase the satisfaction and belief of the
customer to the organization.
These types of access points are defined by Pelen (2005):

Phone

Radio and TV

Electronic message

2.2.2. Customer Lifetime Value

Website

Salesperson and
Service Personnel

Implementing CRM is not a combination of purchasing software and setting up it at the

touch point, it has to realize the importance of customer, who they are and their value
(Wailgum 2007).
Building a suitable model for each customers profit and after that widen from the
model, this is a better way for the beginning of CRM (Nguyen et al., 2007). An example
introduced by Wreden (2004):
Customer profit = (gross revenues) (customer allowances) (credits and rebates)
(product costs) (channel costs) (cost to serve) (administrative costs)
Every strategies has related features need to be at the center of the beginning of CRM
and guarantee that none of customer cost more than the value which firm can get from
them.
An additional factor of CRM is the Lifetime Value evaluation which is the method of
calculating value of every customer to the firm through the expected time that customer
still sticks with the firm and make certain that the attention on the customer will be
worthwhile. Customer Lifetime Value (CLV) also defined as the current value of the
whole profit, which will be made in the future. Thus, a firm can use this to identify the
difference of customers who is profitable or unprofitable, some can cause the loss. This
evaluation also helps firm to change the way of trading and have a general view of the
profit the firm can receive after paying attention to every group of customers or
individual (Gupta, Hanssens at el., 2006).
Customer Lifetime Value has many methods to measure and its equations are
customized for each of company. Beside this, there are three common points of many
companies which are the main factors of Customer Lifetime Value (C.L.V), Margin of
goods sold, Cost of Capital, Loyalty and Discount rates. The Margin represent for the
annual result after revenues minus expenses of each customer. The loyalty points out
the rate of leaving to other companies of customers. The last factor Cost of capital and
discount rates, both of them show the method of accounting the decrease of profits, and
cost for operating the company and risk of losing capital (Gupta & Lehmann 2003).

Zikmund (2003) states four similar aspects as the key operators of Customer Lifetime
Value.

Profit Margin: Profit of each year minus cost of serving customer.

Retaining Rate: Evaluate the number of all customers who
repurchase.
Discount Rate: The present cost of capital.
Time: The length of time which customers stay with the firm.

Once company built and developed a C.L.V system, the process of calculating the value of
every customer can operate quickly. This ability is an advantage of having the large
databases and great computers.
Outlining customers give the benefits to find out the value of each customer to the firm
(Xu & Walton 2005). These following essential factors give a method to realize the
customers who have high value:
Product cost
Cost to attain
Cost to operate
Cost to maintain
Retaining and Loyalty

Xu and Walton (2005) categorize customers into four groups consistent with their value,
Figure 2.2.

Figure 2.2: Profit Cost-Matrix

Source: Xu and Walton (2005)
They clarify that the customers can purchase many products but it still not have enough
profit for the company decide to keep them even if they cost more than they worth. It is
necessary to clarify each of customers to decide which customer is worth retaining or
how they bring out the profit to firm (ibid).
2.2.3. The Ongoing Process
Companies that have a successful operation will create systems that allow them to take
advantage of information from customer intelligently and make sure of delivering what
customer really needs (Xu. Yen et al. 2002).
Sherif, Nguyen & Newby (2007) describe there is an activity of digitizing the knowledge
of each staff in CRM and the way of implementing CRM model can be built, Table 2.2.

Source: Sherif, Nguyen & Newby (2007)

It is important to construct tools that help to create useful knowledge or examine the
collected information of customers (ibid). The model of sorting the knowledge range
should be managed in Figure 2.3 (Xu & Walton 2005).

Figure 2.3 Analytical Customer Knowledge Acquisitions.

Source: Xu and Walton (2005, p.963)
It is better to realize who the customer really are and find the pattern or model, which
related to customer behavior. Information needs to be achieved when customers leave
the firm and if they have any usual reasons. The collected information why customers
leave the firm can be used to build a list of drawbacks that firm might face. Information
about why customer still loyal to the competitors and the reason why they leave them
need to be collected (ibid). CRM system needs to be systematic to provide abilities to
determine the potential customers, (Xu & Walton 2005) and CRM still a successful
technique for having latest information in the customer database for meeting and
serving the customer in a better way (ibid).
According to Zineldin (2006) the firm can serve the customer better in their segments
with the knowledge that attained from the customers is an effective way to generate
revenues to the company. This information can also be used to improve the marketing

strategy such learning many drawbacks of competitors and take advantage of them to
build a new strategy to attract more customers. Most companies use CRM in a defensive
way for their marketing (ibid).
Companies should understand the reasons why customers decide to leave them and with
the important information company can build a program to retain the customer which
help increase the satisfaction of each customer and thus advance maintenance and
profitability (Zineldin 2006, p.436).
According to Peelen (2005) many different strategies are explained in related way, Figure
2.4. The offensive strategies focus on attaining the market share, attract new customers
and overcome the competition. It is not the same with the defensive strategies that
focus on retaining the existing customers and building the barrier.

Figure 2.4: Offensive vs. Defensive Strategies

Source: Adapted from Peelen (2005)
Zineldin (2006) informs the critical level of profitable customers that companies has to
give acknowledgment to them, distinguish need to go through the dealing with
customers who stay with the company for a period of time. Complaints also need to get
more attention from companies for the chances which help to increase the satisfaction
of customers (ibid).

Companies should change their culture in order to reveal the real ideas of CRM. Culture
also is the part of CRM strategy which is underestimated and unrecognized; many
companies also try to change the culture with the purpose of focus to the customer but
it seem to be very hard to make it work even though the management give more efforts
(Greenberg 2004). Actually, companies should focus on the way they use to encourage
the customers to the objectives of the CRM strategies, customers and companies need to
have the same belief that indicate the value with the permission of having changes and
openness (Curry & Kkolou 2004).
Most companies need to realize the way of social, physiological, feeling, managerial and
individual culture in the company will change and ensure the positive facets of changes
will be focused by the management with inspire employee to support company make
relationships with customers (Greenberg 2004).
A number of customers do not want a relationship with any firm and they really leave
the firm if they realize they are forced to keep that relationship (Xu & Walton 2005).
Companies, which have high orders and purchases from few customers, can be seen as
the decline in sales when they force a relationship upon their customers. Therefore, a
company, which has more and more face-to-face time with customer, will have an
enhancement in the total number of sales and integration (Chase 2004).
There are six types of relationship, which is divided through the example of Rao and
Perry (2002).

Realizing the customer is in which type of relationship is the significance process with the
intention of providing the most suitable products to customers (Xu & Walton 2005).
According to Mintzberg and Lampel (1998) that add more value to the customers by
integrating those in the production process and the company can fulfill customers needs
through the complete of customization with its supply chain, Table 2.1.

Table 2.1: Continuum of strategies

Source: Mintzberg and Lampel (1998)

Pure Standardization: this strategy mainly focuses on producing all products as the same
to every customer and there is no specific type and adaption here. The only one purpose
of this strategy is serving the general market and customers are free to switch to other
producers who meet their demands with suitable products.
Segmented Standardization: the general market now is divided to many segments which
include customers with common specific demands. Products will be standardized for
each segment.
Customized Standardization: at this type, product and customer are assembled with each
other from a suite of components which are standardized for fitting each of customers
requests and as well distributed in relation to their requirements.
Tailored Customization: this strategy of customization intents to provide a product that is
suitable to customers in the most effective way. The design stage is the last one still stay
in firm and the entire stages with theirs components go in line with the customers.
Pure Customization: at this type, customers are linked with all stages which involved
from the beginning of production process to its results.

2.2.4. General Models

According to Curry and Kkolou (2004) the life cycle of the customer is the procedure that
should be evaluated, examined and dealt in every company. The Customer Management
Activity is a sample for this system that this model shows the customers interaction in a
company, Figure 2.5.

Figure 2.5: Customer Management Activity

Source: Adapted from Curry and Kkolou (2004)
QCI (2009) defines the Customer Management Activity as it has three main groups such
as Acquisition, Penetration, and Retention, which have many stages in each group.

Determining the right channel to the

Targeting

customers, seeking influential person and

vision for forecasting sales in the future.
Taking analyses through all potential

Acquisition

Conversion

channels.
Delivering sales to sales department.

Welcoming and getting to

know

Distributing the basic

Detecting new customers, welcome them

and analyzing their information to know
them better.
Important account management

product and researching

the customers

Information gathering
Determine the probability of retaining
current customers.
Establish an information system to
understand customers.

Penetration

Retention activity

Inspire the customer to be involved to all

activities.
Delegate responsibility to each of
customer.
Give suitable reward for the loyalty.
Determining the position and importance

Value development

of customer to provide better product and

relationship that can add more value to
the customer and company.

Build a system for accepting complaints

from customers.
Problem management

Describe
Discover main causes

Retention
Losing prevention at the

Win back

Analyzing, finding and announcing the

way to solve the problem
Deal with deserting customers

Peppers and Rogers (2001) recommend a different view of the CRM strategy that needs
to be focused on the IDIC model, Figure 2.5. The IDIC include four stages: Identify,
Differentiate, Customize, and Interact. Inside this, the Identify and Interact stages are in
the processes that communicate directly to the customer.

Figure 2.5: IDIC Model

Source: Adapted from Siddiqi (2002)
Identify
According to Siddiqi (2002) it seems to be easy and observable for a company to collect
data but there is much unorganized information, which moves apart among departments
and hard to link it to every customer. At this stage, the process of collecting information
and arranging them to understand customers trends and habits is important and also
bring value back to the company (Peppers & Rogers 2001).
Differentiate
Every customer give different value to company depends on their level. The main
purpose of this stage is analyzing the various needs and wants of customers so the
company can evaluate the value and significance of the customers. It is necessary to
identify the way that company use to adjust their offer to individual customer (ibid).
Customize
The main purpose of CRM strategy is to deal with customers with all collected
information to help company satisfy customers needs. At this stage, each offer is
customized to each customer (ibid).
Interact
Once company has a clear understanding of each customer, who they are and what
position the customers are in their system to improve the ability of dealing with the
customer in an effective way. In addition, when customer interact with the company
through the touch points, the company need to collect information and knowledge from
the customers so as to help them customize and deliver more good value to the
customer (ibid).
2.2.5. CRM Development

Bose (2002) states that the process of building the CRM solution is in a complex case of
integrating software, hardware and adapt to the reality. The CRM solution is separated
to eight stages:

Planning
2

Research
3

System examination
4

Design
5

Construction
6

Implementation
7

Conservation and
Documentation
8

1.

Adaption

Planning

In this step, the organization should think of the products and have a concern about the
value customers receive through the modified interaction. There still need an
identification and discussion with the managers about the process that they use to
handle with the increase of information.
There are two factors that should be concerned with: customer communication point
and decision interaction point. These first points have to be recognized and decided to
keep or remove. The next points also need more attention of recognition about how the
managers can use these collected data to improve the quality of their decisions.
In this process, the IT department should have a clear understand and make a decision
about the method of storing information and delivering it to all departments of
organization.
2.

Research

Every requirements of these points need to be dealt and there is not similar information
in each requirement of every point. It can go wrong if all information is hurled in one
time to the users.
3.

System examination

The IT division builds first interface concepts, which support the process of implementing
the planning step.
Customer can interact with the CRM system through the two main methods and this
system also is suggested to deliver all essential information to the user with the purpose
of improving the interaction in both situations.
1.

IT support

Employees can use the advantage of CRM system to support the customers and for the
better serving.
2.

Automatic Interaction

Phones and Internet are common way that customers themselves can use them to
communicate and interact with organization.
The organization also can find the help of the others when some skills and resources are
limited or not enough to run the system.
It is also necessary to get more consideration to apply the project into these stages and
even though there are enough resources to re-construction the organization in a
complete way in a short period of time, it seem to be more suitable to do this in every
single step or stage with the beginning of the main components.
There are three main factors that need more consideration to use the collected data
from the customers.
1.

Incorporating customer information over the organization

Most of situations the method used to store customer information require a redesign. In
addition, the CRM system want to provide actual profits for the organization, it is
necessary to store all information of customer in common place and linked to customers
rather than functions of organization.
2.

Progressing the customer information

In order to run the CRM system, the organization needs an expansion of collected
information. Even the complaints, call for supporting and questions form customers are
also significant data and it is better to have easy techniques of catching and retrieving
these data.
3.

Linking the inheritance and CRM systems together

It is necessary for CRM system to access other information in additional systems, the
kind of information and the methods CRM system needs to access this information also
need a concern from the management.
It is obvious to realize that CRM system is large and need many supports from the
management along with very high expenses and accepted many changes if all of them
are necessary.
4.

Design

After the planning process and feasibility of the project are specified, the software used
to implement this project should be determined. It is better for contacting the outside
software provider if this is the first time this CRM system is deployed.
5.

Construction

In this stage, its task is one of the largest tasks in CRM system and the real program is
made here. As the same stated suggestion that there needs to ensure to perform from
step to step in this stage.
6.

Implementation

There is one important task that the management needs to train their staffs and
employees to understand how the CRM system works in order to integrate the CRM
system to the business. It is suggested to have energetic programs for training
employees to make the beginning of CRM work. These programs should contain these
points.

The reasons for the important of CRM

The way customer can be treated with

In what way the CRM system can support the organization treat customer

The management should have more robust training to use the CRM system

more effective to identify and solve the problem faster and lead the system to the right
way.

7.

Conservation and Documentation

The CRM system needs to be analyzed and determined its tasks and performances for
better understanding with the aim of improving the system if it is feasible or finding out
the reason why it does not work as estimated or how it can perform effectively.
8.

Adaptation

The CRM system changes its process over time and many opportunities along with
problems can appear to give more chances or affect to the performance and the CRM
success that need a determination and analysis. Keeping in touch with the customers and
the users of this system can help update information and upgrade it.
Davids (1999) sets ten main factors of the implementation and improving steps that
should have a settlement before launch.
1.

Ensure there is added value for customers.

There are many failures because the organization does not provide enough value for the
customers.
2.

Ensure there is something back for organization.

Organization receives profits in cash from serving the customer.

3.

Clear objectives

Determining and creating clear aims for the way of using this system.
4.

Using information

Ensure that when information is gathered, the organization use it immediately to the
system. It is necessary to gather less information but it can be used.
5.

Ensure all departments are related to this system

All touch points that customers use to contact with the organization need to be
determined and seek out the point which is against the success of the system. The
management should ensure that employee can get suitable reward for their using of this
system.
6.

Outsourcing if needed

Most departments include IT can handle and manage the CRM system but they may not
be the most suitable one for the best or lowest expenses.
7.

Transfer fast and enhance continuously

Beginning with single task and small task and make sure they can transfer it as they
promise. If there are so many ongoing projects that can lead to the obstruction.
8.

Start with small group of customer

Firstly beginning with one targeted group of customer and then improve form them. It is
too risky to handle all at one time because the organization has no ability to serve all
customers.
9.

Examine the CRM system

Apply the system on single group to find out what can perform correctly and what
cannot. Try to decrease many mistakes as possible to small group of customer.

10.

Do not overrate at the beginning what things are needed for operating CRM

system
Take advantage from obtainable things and begin from them, the outcome of CRM can
have good result and there is no need to invest more to this system at this time.
Chase (2004) also states that popular failures of businesses are want to handle
everything at one time. The reasons why these companies do this are in a common way
that CRM system contains large information and many companies want to use them at
one time.
Furthermore, it is necessary to have better understanding of each touch points in
organization where customer use to interact with them where every point needs
different things and they are not the same. The sales persons also want to have an easy
system that provide a fast support and permit them to overlook some information, the
main aims of this system is working effectively. However, these things are not true and
suitable for the accounting department which have to be accuracy and their tasks and
results also need to be reliable.
According to Chase (2004) the CRM system has three different levels such as:
Data Replication
In this kind of the first level, it is the simplest task that all of information come from one
place then move to the other places. It is accepted to update the information of finance
and economy but change the current data is prohibited. This process helps employee to
access the data easily and work successfully. It is a good beginning of using the CRM
system which can provide benefits to its users and the system can get more cooperation
from the users to helps integrate CRM with the business effectively.
Data Synchronization
The objectives of this stage is to transfer fundamental information among the systems,
these information can include the contact information of each customer. Chase (2004)
also gives a sample of information can be transferred across the systems (Figure 2.6.).

Figure 2.6: What to synchronize

Source: Adapted from Chase (2004)
Synchronizing the main information which is used more than one time to all departments
can help employees work with all the same latest information at all touch points in
organization.
Process Integration
The main purpose of this process is to deliver the important information over the
interaction of a customer with the sales process. Chase (2004) demonstrates three
stages to employ CRM system.
1.0

Initial achievement

Begin from the smaller system that can help to distribute ROI in days or weeks. Finding a
way to overcome the problem can create energy for the plan to develop reserves.
2.0

Creating motivation

Take advantage from the accomplishment of the first step as a foundation to promote
advance improvement. Confirm that the accomplishment has a memoir to create the
trustworthiness and political effect to users and managers. Beyond the prospects is
better than ever.
3.0

Increasing and Incorporating

Stay with the implementation of the CRM system and help it to get more abilities that
can help the company in the future. Verify that do not mislay attention to what can be
used to support strategies in organization.
The leaders of organizations need to have responsibilities for the beginning of CRM
system, as the problems occur outside and inside the organization can have a good
understanding of these leaders (Bull 2003). The failures of many CRM systems come
from the common way when they are managed by functional leaders, mostly come from
the IT department where this type of leader typically focus on enhancing individual tasks
than the general objectives of the system and wealth of the organization. As the same
with many CRM projects, there needs a leader who have power and ability to bring
things to reality and make them work (Nguyen et al. 2007).
2.3.

Measuring performance of CRM

According to Curry and Kkolou (2004) that measure the performance of any system can
generate a chance to develop on it.
Obviously, all companies want to start the CRM system at the first time effectively so one
needed thing is the changes in the conduct of customer, but this measure method use
emotional states and opinions instead of applying standards and goals, there can lead to
the failure. The success of CRM can be measured by many methods which have
scorecard as one of common types. With all the metrics in business, it is obvious to
present these measurements in numeric type to the stakeholders and these metrics also
are separated into three groups, Customer, Performance and Diagnostic (Greenberg
2004).

Customer Metrics

Most of customers want to have a united relationship instead of transactional

one.

Readily to agree with a complete resolution from the organization more willingly

than building the explanation themselves.

Customer probable catalogue lists many products that organization can provide

to customers needs whether these customers need it now or not.

Performance Metrics

Profits increased.

Customer retaining ratio increased.

Customer Lifetime Value increased.

Respond ratio increased.

Up-sell and cross-sell chances increased.

Service contracts renewal ratio increased.

Diagnostic Metrics

The amount of employments employs the application.

The amount of customer addresses in the system storage.

The period for employees to access the right information of customer.

Hyung-Su and Young-Gul (2007) established a scorecard for estimating CRM system,
Table 2.3.

Table 2.3: CRM Scorecard

Source: Hyung-Su and Young-Gul 2007

Measuring structure in organization mainly concentrate on the core parts which are
necessary for operating CRM in any organization. These parts consist of employees
culture along with strategies; the way organization benefits their employee through
added value or retains them and the information technology used to power the system
(Hyung-Su & Young-Gul 2007).
There also have a measurement about how effective the strategy of customer is
obtaining, retaining and increasing on the market (ibid).

In the customer sector, the treatment with the way customer gives opinion about
organization can be determined so as to provide an indication of how customer rates the
organization (ibid).
These measurements have a general understanding of the whole performance and they
focus on measuring on global range as ROI for the whole beginning of CRM (ibid).
According to Hughes (2009) there are many recommendations to measure the CRM such
as via the Balanced Scorecard and Six Sigma. Hughes belief points out that these
measurements on global scale do not describe the right picture. Curry and Kkolou (2004)
state that the managers use Scorecard in such a not related way and they have not
enough understanding about CRM to use it correctly. Hughes (2009) recommends some
types of measuring CRM:

Increment of Customer Retaining

Increment of Transactions

Increment of Cross-Sales

Increment of Up-Sales

Increment of Win-back

Increment of Changes

Doing all of them when the costs do not go beyond the revenues.

Hughes (2009) also declares that the aims of CRM are mainly focus on increasing the
profits and ensure they are over and above the expenses. Zarah and Kimiloglu (2009)
offer this list which collected from wide knowledge of literature to measure e-CRM
performance:

Increased consciousness of trademark

Increased trademark reputation

Reinforced pre-sales services

Increased strong customer support services

Increased the amount of users

Increased the amount of new customers

Decreased cost of new customer

Increased repurchases of customers

Increased the number of customer come back after leaving company

Decreased waiting time for ordering and receiving

Increased the accuracy of customer data

Increased targeted potential market

Increased customer satisfaction

Increased the number of transactions

Increased the number of times customer use the resources of company

Increased time customer visit website of company

Increased speed to receive and respond complaints of customers

Increased number of solved complaints from customers

Increased the willingness of customer to share their information

Increased the quality of help and support service on website.

3.0

Conceptual Framework

3.1

Research question 1: How can the goals and benefits of CRM be defined?

The first research question intends to discover the goals and benefits of CRM in an
organization. In daily businesses, goals and benefits of the CRM along with relationships
can be viewed in many ways. To build the framework of reference more organized, the
goals of CRM need to be separated in two groups:
Customer related objectives
This group has a close relationship to the customers that includes loyalty, satisfaction
and retention.
The interviewees give many similar opinions to the objectives of the CRM. These
objectives are selected because these authors have the similar style. The following
versions explain the objectives of CRM clearly and easy to understand the content.

Improved Customer Loyalty.

Improve Customer Satisfaction.

(Zeng, Weng & Yen 2003)

Improved Customer Retention.

(Gummerson 1994)

(Sherif, Nguyen & Newby 2007)

Each of objective have close relationship to the other. Whenever customers come back
to purchase, obvously they loyal to the company, and it is undeniable these customer
satisfy with this company.
Business related objectives
This type of CRM objectives has close relationship to business.
These objectives contain the process of collecting, gathering, analyzing information in
order to understand more about customers. Take advantage of these objectives, the
company can easily meet customers needs and have a forecast of sales in the future to
increase incomes. In addition, automation is also an objective that is related to the
effectiveness and benefits and is defined in common way. The main accepted objective
of CRM is gathering data of customer. Xu and Walton (2005) also describe the
explanation of these objectives plainly. The main reasons for using the CRM system to
gather data are explained by other authors who have the best wide understanding in this
topic.

Gather information

Understanding customer

(Sherif, Nguyen & Newby 2007)

Improve satisfaction of customers needs

(Zeng, Weng & Yen 2003)

Build sales future plan

(Zeng, Weng & Yen 2003)

Effectiveness / Benefits

(Gummerson 1994)

Automation

(Xu & Walton 2005)

3.2

Research question 2: How can CRM strategies be defined?

(Xu & Walton 2005)

This segment portrays distinctive models of CRM strategy that can be applied. To help
these strategies can be understand easily, the opinion of Chen and Popovich (2003) in
what way the process of operating CRM is contained can be used to separate these
theories into groups, Figure 3.1.

Figure 3.1: Strategy Overview

Source: Adapted and simplified from Chen and Popovich 2003
3.2.1

Touch Points

The customers can contact with most parts of organization through these points (Chen &
Popovich 2003). The Interact step in the IDIC model can be used to present the outline of
customer interchange with a wide clear understanding of touch points. The Davids
concept of touch points presents the most comprehensive of appraised theories so it is
used to summary in what way customers communicate with the company. However,
Peelen (2005) adds a list of potential touch points which are suitable with touch points of
both Peppers and Rogers along with Davids, and then it is used for better understanding
of by what means customers and company give-and-take information with each other.

IDIC

Interact

Touch Points

TV

Radio

Website

(Peppers & Rogers 2001)

(Davids 1999)

Mail

Cell phone

Salesperson & Service Personnel

Front Office
The term of Front Office can be understood as a collection of all company tasks that
interact with customers directly (Chen & Popovich 2003).
There is a presentation of the related theories to the interaction of customers. In the
IDIC model, Identify stage offers a clear explanation of the essential necessities for
applying CRM in the Front Office. Other model as CMAT is used to understand many
diverse stages which customers experiences. The main purpose of using this stage is it
provides strong and clear clarification with a wider understands of these stages.
Sherif, Nguyen & Newby (2007) inform that it is necessary to digitize employees
knowledge. In addition, Greenberg (2004) describes that culture is an important factor
that relate to implement any new strategies of CRM, and his theory is chosen as he has
the most inclusive understanding and resources for this topic.

IDIC

Identify Stage

Customer Life Cycle Management

Additional defined

(QCi 2009)

Digitizing Knowledge

(Sherif, Nguyen & Newby 2007)

Culture

(Greenberg 2004)

3.2.2

Back Office

(Peppers & Rogers 2001)

(Curry & Kkolou 2004)

According to Chen and Popovich (2003) the term of Back Office also means a group of all
tasks behind the Front Office which does not interact directly with the customer.
As statements of many authors that CRM system has large requirements for finding out
the value of each customer.

The theories of Zikmund are suitable for using as these

perceptions go into details and relate to the value of customers than other studied

theories. Moreover Xu and Walton introduce a distinctive opinion of classifying

customers by applying the model of profit cost matrix.
The IDIC model includes Differentiate and Customize stages which give clear
explanations to the process of distinguishing customers and altering products for better
suit of each customer. In order to improve the extensive customization the general idea
of the IDIC model that Mintzberg and Lampel together with Zineldin are chosen for their
clearly and detailed explanation of this topic.
Xu and Walton (2005) provide the systematic model which emphasizes the importance
of attaining information and this is the only discovered theories for this topic, and
obviously this model is used for the sole understanding in what way the organization
need an attention of thinking about what type of information they want to find. In
addition, Zineldin (2006) accommodates better clarification of how to use the
information of customer effectively than other authors. Because of the advantage of
provided model, Xu and Walton together with Zineldin are selected to offer better idea
of attaining and doing with information when it discovered.

Value of Customer

Drivers of Customer Lifetime Value

(Zikmund 2003)

Profit Cost Matrix

(Xu & Walton 2005)

IDIC

Differentiate

Customize

Customizing Products

Customizing Relationships

(Zineldin 2006)

Customer Knowledge Achievement

(Xu & Walton 2005)

Usage of knowledge

(Zineldin 2006)

3.2.3

CRM System / Storing

(Mintzberg & Lampel 2003)

This part includes the most related model of implementing the CRM system. The Boses
model that clarifies the way of implementing the CRM system is very clear and full
understanding. However, the list of David also provides aggregate content

comprehensively as Bose stated but it provides an easy way to have a complete

understanding so it is selected. Chase provides a detailed analysis of planning the CRM
system but it has not enough intensive research as Bose. Nevertheless, Chases model
clarifies levels of combination in CRM system that there is rare to have any authors
discuss this topic so his model is used in this section.

Ten Key Points

(David 1999)

Integration Levels

(Chase 2004)

3.3

Research question 3: How can CRM performance be measured?

In this part, theories have a close relationship with the process of measuring the
performance of CRM in its first step is presented. In a comparison other theories, HyungSu and Young-Gul provide the most complete method to measure the performance of
CRM so their model is included. However, Hughes gives an evaluation of the extension to
the Scorecard method; mainly about the limitation of measuring the soft values in CRM
system, hence his opinions in this topic is used together with Scorecard to give better
understanding and broader view.

CRM Scorecard

Key Points

CRM measurements

3.4

Framework of Reference

(Hyung-Su & Young-Gul 2007)

(Hughes 2009)

The main purpose of using these questions for researching is to establish a

comprehensive understanding when a company tries to begin the CRM system from
employment to other running process.

Figure 3.2: Association and outline of Research Question

Firstly, the objectives of CRM strategy are selected in the first stage then the main goal of
the initiation is identified. In the next stage, models relate to the strategy of
implementing CRM system and in what ways they can be kept using are declared. After
that, they can be supported by a methodical way to measure the whole performance of
the CRM system. Therefore, the management can check the system if it accomplish the
general objectives.
4.0

Methodology

This chapter will provide explanations of methods used to collect information from the
research questions.
4.1.

Research Objective

In the thesis, the research contains many stages which have to go through for the
success. At the first step, the thesis introduces and defines the sector used for the
research and then the research will create an overview from collected information. It is
known that these processes are the platform for descripting a research (Yin 2009; Polit &
Beck 2006). In addition, Yin (2009) also states that not all collected information will
generate a good result or can be assisted by the present theories. This thesis also can be
seen as Explanatory study for its process of trying to clarify the reasons and causes for
considered subjects (ibid).
4.2.

Research Approach

This research will begin with the theory and then go to qualitative information in some
case studies over organized interviews. Most of information that collected through

interviews cannot be taken from statistics in the form of numbers, as the theory will be
conceptualized in this research (Saunders & Thornhill 2000). This research uses
qualitative model as an appropriate choice for understanding the subject relates to the
management and the process of making decision which needs an analysis of details. This
kind of research uses an obvious area with a small size of pattern which provides better
understanding of each case. However, this type of research has a disadvantage is that it
needs some quantitative methods to validate the result (Gummerson 1999).
4.3.

Research Strategy

Most of case studies will get more advantages if they use the type of How and Why
questions to ask for information. In this thesis, there are three How questions with the
aim of obtaining outcomes and gather data in a natural way. The study also needs an
attention of modern facts. Yin (2009) also clarifies that these case studies have a close
related to this study.
From the time when this thesis needs a generalization of collected information, there has
a favor of multiple case schemes as it provides extra strong evidence (Yin 2009). In
addition, multiple case schemes are suitable for examining the theory on a group for
complying with theory is unknown (ibid). Therefore, this research will employ a multiple
case schemes.
4.4.

Information Gathering Scheme

Yin (2009) states that there is no evidence to affirm this one information-gathering
method is better than the others and it is important to use the interview as resources
since it provides more necessary information, furthermore it is probable to create a
better understanding on the topic. Therefore, interviews are selected as the main source
to gather information. Yin (2009) recommends building an organized interview
instruction before running an interview.
4.5.

Pattern Collection

There is no recommendation for collecting information from the whole population so it is

necessary to decrease the range of pattern that is used to gather data relates to financial

plan and time conditions (Saunders 2000). So as to acquire a typical group of population
then the process of selecting the pattern that has no probability. This type of selection is
chosen, as it is preferred technique once the collected information cannot be assessed
statistically. The first interviewee will be selected through their knowledge of this subject
(Saunders 2000).
The main purpose of this thesis is to research the advantage of using CRM in B2B then
one company in a medium and another in large size company will be selected as a source
to collect information. However, the medium size company needs to have more than 250
employees to be content with a condition in this type of business.
4.6.

Data Analysis

Analyzing collected information needs to go through several steps as examination,

category, and structure or over some other methods of rearranging the information to
check the proposed research. This research use case studies which are difficult to explore
as it hard to find good technique and clear guide to apply on these case studies. Yin
(2009) also suggests that any research needs a clear structure and method to analyze
data in an effective way. The process of analyzing data will be established through the
structure and method created from theory then this structure and model will be applied
to verify the answers and understand whether they have similar explanation or provide
new and different views than the current theory.
In addition, Yin (2009) informs that the thesis uses the multiple case studies with the
main purpose of creating the broad clarifications that suit each case, after that there will
be a comparison of these cases to identify what is similar or different among them. Thus
this research will compare each case with the theory in the first step, and then the result
of each case will be compared in the next step. These steps will provide a better way to
understand the general idea of the research.
4.7.

Accuracy and Reliability

Most of researches need accuracy in their collected so to achieve this goal the multiple
case studies is the most suitable choice and it will be accurate to use multiple sources to
find information (Yin 2009).

This research with the intention of making the literature review to be more accurate and
reliable so the theories used in this research are taken from well-known books, authors
and academic journals. There are many authors give different opinions to these theories
and therefore all of them are also selected to support the research.
Saunders (2000) emphasizes the importance of keep the reliability throughout making
the interviews; especially the interviewers bias can overwhelm the reliability. There is a
need of organizing the interview before conducting it in order to decrease this bias. As a
result, the interview will be implementing in an organized way as Appendix-A. In
addition, it is recommended to record a whole interview for analyzing it to increase the
accuracy. Besides this, collected information also needs empirical evidences to increasing
the reliability. Interviewer need to ensure they understand the answers of interviewees
clearly. The language barrier is also the main cause of reducing the success level of
several researches when the interviewer and interviewee come from different countries
along with dissimilar languages. It is necessary to have an interpreter or the interviewer
should translate all of collected information then send them back to the interviewee to
make sure all of information is accurate and reliable.
5.0

DATA

This chapter consists of experienced data to support for the dissertation. Most of
collected data come from the interviews and the extant data are collected through the
documents in the intranet.
Two selected companies for support the dissertation are Schaeffler and CNCD.
Schaeffler is expert in developing and manufacturing products and components for
machines and vehicles as well as space industry. In this situation, the Schaeffler Vietnam
is chose for becoming a typical example of providing rolling bearings for car industry. In
to Vietnam market they have expanded from having one primary customer to many
customers include large and medium or even small customers. There are key account
managers are assigned to each customer in order to handle all business activity of this
customer but the company also want to look for a new system that can help them to
manage and organize all of them in an effective way. The reason for wanting a new

system is the information flow and the amounts of data need to be handled is too high
so keep track of them is very hard, a new solution for this issue is necessary in this
scenario.
Nordson is one of the top providers in packaging and converting industries in the world
beside many products and services they have. In Vietnam, the CNCD was used to
represent the authorized distributor of Nordson. CNCD has many customers from large
size to smaller size in Vietnam. Almost largest customers who belong to global customers
are handled through central offices while smaller customers are handled locally. CNCD
started to apply new CRM system into its process to manage customer information in
better way but there still need more efforts and work to be done before all of benefits of
CRM can be fully utilized.
These two companies work closely in B2B sector and not only want to expand to other
countries and potential markets but also want to build strong relationship with current
customers.
5.1.

Case 1: Schaefler Vietnam

In this section, all information and data from Schaefler will be presented.
The following list includes the name of respondents.
T Tam Pham Head of Schaeffler Vietnam

D Dung Nguyen Key Account Manager

5.1.1.

Objectives of CRM

1.

How would you describe customer related objectives of CRM?

T: the main benefit that I can see from this system as organizing information about
customer in a better way so our customers will be served effectively. If one employee
leaves our organization that we need to be able to understand and get to know exactly
what make they do this and see the picture of this situation. We want to have a better
understanding about the general situation in order to be more success and competitive

in the view of customers and an organization that can provide better products, services
and new experiences for customers.
One thing I realized form the other companies that they have more structured
understanding about their customers and it is not important for customers to know
clearly about who they are talking to because these employees have the same
understanding about what is going on and happen between them and customers. A real
case for this situation is the company where the customers can book, change or even
remade no matter whom they speak to and the only thing the customer need to provide
is their personal information.
Then I see the main objective of CRM is to help organization manage, sort and structure
information and customer data in an easy way to access.
D: In a general view, the purpose of using CRM is to maintain the customers and avoid
missing any information. Beside this, the CRM system helps us to keep track of the
relationship, when and why customers and organization meet.
2.

Which objectives do you think as important to you, explain why?

Customer Loyalty, Satisfaction and Retention

T: All of these objectives are very important for any organization. And for me, these
things seem to be a result of managing and organize information and serve customers in
a good way. It is no doubt to get back the loyalty, satisfaction and higher retention of
customer if we can serve and make them feel more important with better care service.
D: Loyalty is not much important in the modern business where the market is changed in
every day and many competitors also try to get customers from the others. Beside this,
when the customers decide to choose what company to purchase an products or
services they put out many specifications and who can provide these things with the
cheapest price and the quality still acceptable that is the main point of doing business
these days. Therefore, price still the king factor.

There are many relations and factors that can be important but after all price still the last
requirement.
The customer will not care of the price if the numbers of products are just a few but if it
is about thousands or millions that would make a big difference.
3.

How would you describe business related objectives of CRM?

T: As in my opinion, the main advantage of CRM system as we can get a clear view of
what has happened between us and customers. If we can have a better understanding of
what happened that I think we can have deal with most negotiations. From the
beginning to the present I see our organization is involved with many negotiations hence
the CRM system become the benefit.
D: The advantage of CRM system is to get an ordered view of the interaction between
customers and the organization. But as I do not think we can generate more money or
even increase the number of customer that we just get as a result.
4.

Which objectives do you think as important to you, explain why?

Who your customers are, meet customers needs, future sales, automation
T: These objectives are all necessary and important for any company. However the
customers buying trends are not evaluated on paper, this process focus on evaluating
each of sales representatives when they deal with customers. Sometimes much
information base on informal feelings or words something that cannot get through the
use of logical analysis. Nevertheless the using of CRM also brings more advantages to
help company to catch, organize and allocate information effectively.
Automation is something that I think it is not suitable for the type of our company. We
already have many key account managers assigned to each customer and they know the
way to deal with what is happening to each customer. I also do not believe in what is
prepared or something listed to talk with customers cannot work or even become
useless, every customer has their own situation and there have to use different way to
deal with them.

D: To collect information about customer is necessary but the information which

company needs to collect still bigger than that such information of competitors or all
information about factors can affect the relationship with customers and many more
information. These things are changed continually so to keep track of them is very hard.
For a customer, we know them clearly and we understand their needs so we still have no
problems with them. The information about them we also have enough to know what
the customer have or even who exactly they are.
At the mean time I think our company still not meet higher demands, something we can
do now is the collecting information of the competitors and manage them in an easy
ways to access. So we will be able to get the main point of the current situation then can
offer better products.
It is difficult to predict the future sales because the contract is end then the customers
contact us with new specifications and it still the same with the importance of the price.
It takes one to two years to deliver a new system from an order but if it is just an
upgrade then it will take one year.
After all, the customer always is the main decider who gives specifications and the
deadline if our organization cannot meet these requirements that customer will find
another provider.
I think the automation is not suitable for these situations because the relationship is too
complicated and as I do not think this automatic system like that can help in finding new
customers. However I think I still have not enough understanding about this and what it
can bring back to the organization.
5.

Is there anything you would like to add related to the objectives of CRM?

T: as I think it is enough and the main purpose of CRM is to help the organization to
organize and manage information of customer effectively.

D: as my opinion the advantage of CRM which give the organization a better solution to
manage customers information and help the organization to be the owner of these
information.
5.1.2.

Strategy of CRM

6.

How does your organization interact with customers, what are the touch

points?
T: every customer is handled by key account manager and the main method we use to
contact with customer is e-mail. Phone and face to face are less popular than e-mail.
Moreover when a communication takes place with other companies we also ensure that
the two people from each of company have the same level when they speak together.
This shows the favor we provide to the customers.
D: With our biggest customer may be from other countries that we often contact with
the technicians and technical department. Strong relationship which bring both of our
and their company together and they may let their technicians cooperate with us if they
think that can generate better results.
It is an routine process that we receive an order then the technicians of the customers
work with us to find a solution and then the cost need to be reviewed and it is
necessitated to remake to reduce the prices. If everything is done, we start to win this
contract.
There are many endless projects which are caused by something come up when we are
working to upgrade a system for example. Sometimes the customers require more
efforts, performance or even they put new specifications into their contracts.
7.

What is the reason for these interactions and when are they used, explain

why?
T: e-mail is chose to be the main method in communication because of its benefit in
modern business. For more important meetings or contracts phone and personal
meetings are the good method to be used.

D: As it work well in most specific case so our company use it reasonably for all
convenient ways provided from it.
8.

Which interaction types below are important?

Television, website, e-mail, phone, radio, personal sales, service employee

T: Television and radio have their advantage in reaching customers but they seem to be
too expensive for using daily so it is a costly choice but if one company have enough
budget to use it there would be a big chance to build strong company image.
We already have a website with many different languages to reach to the customers
from over the world. This website o our information and technology applied in our
product. Beside this we still have a method to deal with given information from the
website but it need more efforts or even a new solution or system that can help us to
manage and use them effectively.
D: television and radio can be good at making faster impact the view of customers but it
is not the way we want to do. Our company has a website to serve general public and
both of our information and product can be viewed in one place.
E-mail is used for communicating with our customer then phone and the last channel is
face to face. Customer service is also an important part of the project and sometimes the
technicians will handle the problem or may be the key account manager depends on
what type of the problem.
9.

What is the strategy of the organization?

T: As we already make a reorganization of focusing on finding new customers but we still

have high attention of keeping the current customers.
This could lead to create new department which have the main role of seeking for new
business or mean new customers. In the process of finding new customers, we are often
involved with other people from technical department. Therefore it is difficult to know
what we try to do to get better result or make it become more flexible or put higher
weight on it.

D: in order to get profit from long-term relationships, we have delivered many products
for customers year by year hence we can say it can work.
10.

How can your customer be defined and targeted?

T: the number of our customers is not changed much in every year so it is easy to
manage and find them with no problem. The hard one is finding new customer. We also
try to convince new customers with fair trade and events to show off our products to
everyone. For the car manufacturers we also have a plan to come to the customers and
present ourselves and products.
D: one of difficult thing that we have to deal with is setting up a meeting and provides all
information and advantages of our products to convince them our products can meet
their requirements.
The list of car manufacturers is too easy to get but how to win a contract with them is a
whole different thing and it take lots of efforts and time.
11.

How would the customer life cycle look like?

T: the life cycle of customer base on the type of car they sell. At the first step we and
customers try to find the solution, both technicians from our company and theirs work
together and when the solution is accepted then we work with close relationship.
Communications, discussions or solving problems can take place in every day with
biggest customers but it seems to be no communications a several months with small
customers.
Whenever a new model or remake is announced from the customers, we will contact
them to repeat the contract. It is costly to change the supplier in car manufacturers
industry but it still happened. Once this problem happen we see it as a big failure and we
try with all of efforts to reduce its impact at least or may be better to avoid these
problems.
D: there are some steps that we and the customers will get through as for some biggest
customers our product will be presented first then we wait for their review. After that

many times we and the customers have to discuss and technicians from both companies
also take part in this work. It may take a few months for communicating only through
phone or email with both big and small customers.
Something still happen when we provide new products with better technology and
quality that can make car to be faster, lighter or even cheaper and at that time the
customers show their unsatisfied attitude with us because of the previous products that
we provide to them.
Although there still have different things between the companies but we always have
sustainable relationship with customers.
12.

How is your information about customer organized?

T: we allow everyone in company to manage and organize their information and data by
themselves; we provide a network disks which have many sub directories and folders to
store information in a logical ways.
However it can cause some problems with the email as all email can move to one specific
employee and it is not able to share this information with the entire employees.
D: we have some information about prices and volume on paper which is collected
through the meetings and discussions with customers. This information is stored on the
network disk or of some employees so it is still complex and unorganized.
13.

What type of training do your employees have in order to contact with specific

customer?
T: at the recent time, we still have not much training programs for specific employees.
Some employees work as sales or key account managers but they come from technical
department. We decide to choose these employees from other department base on
what they proved they have enough ability to handle the task.
D: We have not much training so we learn by ourselves all the time. There are some
possibility trainings that we need as communication and negotiation skills. The

management also starts to have an analysis to know what knowledge and skills we
already had before. These things will be a part of employees personal review.
14.

How is your organization culture described?

T: we are all happy and proud with our product. Most customers satisfy with what they
receive from us as superior products. In the Vietnam market, we also have many
customers who from large groups to international companies. We are proud of what we
can bring back to the company.
Our company has long history as provider for car manufacturers and the heroes of the
company is technicians who are the core of this system.
D: we always keep a close relationship with other employees and also the management
in the company is very knowledge and competent in each products. We believe that our
company has good reputation in the customers belief.
15.

Would this culture have positive or negative effects to customers? Are there

any types of reward for cultural behavior?

T: we believe that we are the experts in this type of product and sometime we show our
arrogance and with customers who do not know how well our products are then they
seem to be underestimate the value of our products. The market need a product is both
cheap and simple but these products are in higher level than that.
Our company chooses to create and provide better product than other and we think the
market should know it.
We work continually as finding new solution for improving products and that is the way
our company want everyone understand. Every employee has key performance
indicators and the reward will base on what they can do for company but it is not our
culture as rewarding employees.
Honestly, we do not work for rewarding because we are here for the passion and what
we love to do in our career.

D: beside many customers can see us as a reliable supplier there still has some
customers give us an evaluation is not high enough.
Bonus system is in place but it seems to apply for rewarding employee with high sales.
16.

How does the organization set apart customers?

T: actually we do not differentiate the customers but we still analyze and sort customers
into two types as profitable and less profitable or even not. The data is organized under
the form of presentation and document which can be updated and recognized through
the contribution margin.
D: we do have two types of customers but we do serve them as the same. Beside this we
know where the money is.
17.

What are the most important factors relate to the profitability of the

customer? How can the company calculate the profitability of customers?

T: to do this, we calculate the contribution margin which is the result after income minus
the cost and expense for sales.
D: it can be calculated through contribution margin or the profit and it will be reviewed
monthly. We rarely record all the time work with customer and if we do this then it will
generate more expenses.
18.

What are the factors you think as important to you?

a.

Customer profit margin

T: of course it is an important factor.

D: we have a high consideration with this as it includes the cost, the salary and the
currency.
b.

Customer retention rate

T: we have many customers so the customer retention rate has a big relationship with
our success. It became useful for us as it help us to understand and avoid any of the
problems about customer decide to leave us.
D: it can give some benefit in understand what is happen with customer but for us there
still no customers want to leave us. We have long-term contract and strong relationship
with most of our customer in the car manufacturers industry.
c.

Cost of capital to customer

T: we monitor all the development projects carefully, there are many big contracts with
big customers so we check and keep watching for controlling the materials and
everything related to this.
The warranty costs are also very important for us and they need to be keep track closely.
The time each customer contacts and our employee work with them are not recorded.
D: we own all of the production lines and all we invest and tools use for each specific
customer will be tracked sensibly.
d.

Time that customer will stay with the organization

T: it is hard for a customer to find a new reliable provider in these days so once they
found and worked with one provider then it will be a strong relationship. If this situation
happens there will be the big failure.
Whenever we have customer, we serve them with all the best we can provide and want
to have long-term contract, but if one thing goes wrong and company lose this customer
this mean this company does not have enough ability to stand in this business.
D: in the competitive market, we can have a customer for four to five year and base on
the contract and it often belong to the life cycle of one model car. If there is a different
company who can offer the same product with the same performance but lower price so
the customer will switch to them as an easy result in modern business.
19.

Are there any strategies the organization use to separate the customer?

T: generally, we do not separate customers to any types but we still prefer to whom is
professional and know exactly what they want for their products.
We already changed to get closer to simpler customers for meeting new requirements
from emerging markets.
D: each customer from different countries needs different approach strategy as in
Vietnam and some Asia countries we can use the same strategy as in German or
American.
20.

What types of relationship does the organization have with the customer?

T: these types of relationship depend on what type of customer and their culture in
doing business. Generally, all of relationships between us and big customers are person
to person but the way we do it is also different because of the different among
customers.
D: we do not like to have a simple relationship with the customers, for the success of the
whole company we always try to make strong relationship with them and we prefer to
use win-win method that can help both sides get what they really need. Whenever the
product gets problems then we work together to find a solution to solve it.
21.

Are there any customized products for different customer? If so, how does the

organization make it?

T: we have a basic product that can suitable for most simply customers and base on that
we will customize them to meet special requirements from big customers. The customize
process will focus on shape, performance and the material.
D: we want to have many common parts in our products as much as possible but it really
is a challenge for one customer to change one rolling bearings from one brand to
another because the technology can have one common point but after all they are
different when they are in the form of end product.
22.

How does the organization achieve knowledge about customers?

T: we record all information in the meeting with customer, every time we recognize a
new deal or the price from other providers but the price still has higher consideration
from us. Words of mouth or occasion rumors can have something we need but they
seem to be not enough reliable and if this thing happen it usually come from some
people in the meeting.
D: we record all we can get from the meetings and whenever we contact with the
customer.
23.

Does the organization make every effort to achieve knowledge in specific

areas?
T: we try to collect more information about what our competitors are doing with the
market and we try to seek for the prices they offer to the customers. We also accept to
pay for some information about the market share the competitors have, the number of
cars that one specific manufacturer produces.
We always ready to listen to all the information in the market and if we see any
advantage or big deal we will bring it up in the meetings right away.
To be honest, the price still is the king when make a contract with any customers.
D: some customers put their needs in a hidden message and our mission is to analyze
and to be the first one can know it. And of course the price is still the most difficult and
wanted information. We also try to note down all of these information in paper but it
does not bring better result for us.
24.

Does the organization view these types of information essential in business?

a.

Why customers are loyal to the organization

T: one thing we realized that the loyalty of customer base on the time we deliver their
products and the price they have to pay. All information that we collected from surveys
and meetings can prove that. So we think we are good at making the customer satisfy
with our offers.

D: we know there are many competitors can provider to the customer with the same
product but with our company we have a technology to create a roll bearing with higher
accuracy and quality to the competitors that why many big brand names from the car
manufacturers choose us to be their provider. However we also give an acceptable price
for our customers. That is the main point for our success.
b.

Why customers leave the organization

T: this would be rare to happen with us but when it occurs there may be something thing
wrong with the whole products that make the customer have no choice to find someone
else.
This problem may happen when we cannot offer them for a reasonable price or a
product can meet their requirement. But they are not going to find someone else.
D: as I see that there is one customer left us because of the only one reason they be with
us is the price, our product is too better for the needs so the cost is too much for them.
c.

Why customers are loyal to competitors

T: as I mentioned before the price is the main reason customer loyal to one company and
I think the partnership also has its foundation on this.
D: it is true to understand that the customers from competitors are not willing to share
the information about these things. One time we realized that tradition has an effect to
the loyalty.
d.

Why customers leave the competitors

T: this is the information we always try to find but it is still hard as always. It is the secret
information as the competitors are not willing to share it. This thing can happen when
the other competitors give lower price for the same product. Honestly to say it will be
hard for us to share this type of information when we loss one customer.
D: it is rare to make one customer leave but when it happen it almost belong to only one
reason is the better price that another competitor offer to them.

25.

What would the process of development look like?

T: as we do not have a process like this but we do have a process which collect opinion
and feedback from the employees and customers to find a better solution to improve the
quality. I think it is important to keep track of everything that employee involve in daily
working to understand what problem can happen and whether some tasks take much
more effort than it really needs.
I think we can start to use a system like this at a small step first then we can expand it
later.
Learning from what competitors can do better than us is very necessary to be more
competitive.
D: we also began to start finding more information about this subject through some
research paper. As we know the truth as when we expand and get more customers that
will lead to the difficulty of managing employees and the information of customers too.
26.

What are the most important points of developing CRM system?

T: it have to be started at every small step and after that we need to test if it is good or
not and we can expand it in the next step.
D: the current system in our company is easy to use and as I think one system that can
allow me to get and remove data faster so I will be very pleased to use it.
27.

What level of integration does the organization look for the CRM system relate

to the flow of information?

T: I want a system that can sync every information and data about customers and e-mail
so all of us can access it easily.
D: it will have no efficiency if we have to manage much information at different place. It
may become a mess if the system operates like this. So we hope for a centralize system
that all information can be store in one place. But for the management cost for applying
it is still a considered topic.

5.1.3. CRM Performance

28.

How does the organization assess the result of customer strategy?

T: one popular method to do this is survey; many companies use this as us nowadays.
The reason for what we do as having more focus on the new customers because the
decline of growth. The saturate of the market may be the reason for this.
D: there are many problems can occur between us and the customers for the different
strategies are used for them but the biggest one is when we are too strict or kind with
the customers. All of the problems we face with customers will be discussed in the
meeting in order to know how we can do for getting better result next time.
29.

What are the important factors of performance relate to CRM system?

T: I want it is easy to use which means I can put and retrieve information from the
system simply. And one more important factor that I also want this system provides us a
friendly user interface.
D: it needs to be easy to provide information and good integration with daily work. It
should not add more things into our work to make it to be more complicated.
30.

Does the organization assess these following points? If yes, explain how? If no,

why?
a.

Organizational

I.

Shareholder value relate to CRM

II.

Benefits of CRM strategy

III.

Total customer value

T: there is a connection between these points but I still not see the purpose of them. The
shareholders want their shares in company will be growth is somehow has a connection
with CRM.

We also measure the total value of customer and try to understand what it stands for;
with most of our customers we manage and know how many products they order and
even the prices are also checked carefully.
D: I see these points have not enough usefulness, if in some ways it helps us to reduce
the time for finish the task and take time to serve the customer better and then the
relationship with customers will be increased.
b.

Customer

I.

Customer Loyalty

II.

Customer Retention

III.

Customer Value

T: these points will be very important for many companies but for us these are still
important but not the things we need to pay highest attention to. We have strong
relationship and understand our customer clearly. Therefore our company and the
customers have a long-term contract and the business will be continued.
D: the loyalty and retention of customer are something I do not place all my belief in and
the value can be if there is anyone can measure customers satisfaction.
c.

Process

I.

Customer acquirement

II.

Customer retention

III.

Customer expansion / cross sales / up sales / Referrals

IV.

Returning customers

T: till the current time we do not have much efforts for putting more attention for these
points. We also let the sales person do their job and get the contract. These information
stay with individual employee and we let them to take responsibility for their job. We

also like to have a CRM system that can record all information and become owned
information of the company rather than belong to anyone.
Up sell and cross sell are not what we use in our strategy to deal with customer. This
type of sale product does not fit with the kind of our business.
D: the customer acquisition is related to the way we communicate with customer, the
times we have with customer and the how long we and customers have contracts.
Cross sell and up sell are not the strategies that we want to use in our business.
Customers have their power to decide what they want and what they will do with their
products.
d.

Human capital

I.

Employee behavior

II.

Customer satisfaction

III.

Management attitude

T: there are two reviews hold two times a year for assess each employee. In this review,
their personal and business goals will be reviewed carefully. Personal goals do not have
to be outside the workplace, it can be the number of sales in one month or even a year
and something relate to their work.
To know these things better we use repeated survey to compare the previous and
current result together.
The management attitude can be understood through the relation of the benefit and the
cost.
D: with the current system in our company, we as all of the employees will work
together and try to find the way to handle and do our work faster and give better result.
It will be better to make the survey to allow employee to show what they like or do not
like or even their own opinion about their work.

31.

Strategic orientation

a.

Training

b.

Reward system

c.

Organizational structure

T: in the review meeting, we also start to discuss about the previous training and what
we can do or need in the future. But somehow I do not want to bring it into the CRM
system as I think they do not fit with each other.
We are rewarded base on our efforts as finish work in a faster method or better
experiences in dealing with many problems.
The management already split some departments for the reason of decreasing of profits.
It is hard to understand how the management can give a bonus at that that time or it can
encourage employee to move on.
D: giving bonus for the training is an unnecessary work as my opinion. Rarely are we
forced to do something but it still happened a few times. Of course we are here a part
for the passion but we are trying to understand more about force employee can give
better result in some situations.
32.

Culture:

a.

Partnership

b.

Market positioning, increase or decrease performance would cause the change

of culture
c.

Clear goals

T: culture is an important factor in one company but i do not measure it. Through the use
of survey we all know how the employees feel about their work and our style of
managing. Every employee will get their goals in company and sometimes it relate to
personal goals.

D: it is a good thing to evaluate the time we work together and what we have from
helping each other to work effectively. If there are clear and specific goals can be set, I
would not mind to be evaluated but whether the result can help to find better solutions
and how the CRM system will fit with the current process is subject which need more
discussions.
33.

Is there anything else you want to add?

T: it is hard to evaluate the CRM system itself. It will be better to ask for the opinion of
the users to know exactly how it works and what benefits or difficulties it can bring to
the company.
5.2.

Case 2: CNCD Vietnam

In this section, all information and data from CNCD will be presented.
The following list includes the name of respondents.

T Trung Bui Sales & Techincal Director

5.2.1. Objectives of CRM

1.

How would you describe customer related objectives of CRM?

T: The benefit we can take from this system is to be able to organize information and
work as deliveries, orders, problems of products, information in the meeting, etc
2.

Which objectives do you think as important to you, explain why?

Customer Loyalty, Satisfaction and Retention

T: it is easy to understand these objectives as if we serve and understand the customer in
a better way and then their loyalty will be increased in return. It is also the same result
with the satisfaction when they have a good view with us they probably satisfy with what

they get from us. However, if we do not give them anything like this they will become
unhappy and unsatisfied with us. Because of the satisfaction and the loyalty of the
customer base on what we can do for them so the retention is also the same thing.
It is hard for us to use cross or up sell for our customers because every customer need
their specific product and it is not suitable to use another product to replace another
one. So at this time we do not need to analyze data to sell to one customer more than
the usual.
3.

How would you describe business related objectives of CRM?

T: our professionalism can be seen through our sales person as we want to have an
ability to know what is happening with our different products and who clicked our ads.
Therefore we can lead the company to the right direction.
4.

Which objectives do you think as important to you, explain why?

Who your customers are, meet customers needs, future sales, automation
T: we want to understand each of our customers through the segmentation which divide
customers into groups based on what products they buy. Moreover, we also classify
customers follow their regions. We are an international company who always want
customers from over the world to buy our products so we need this information as a
necessary requirement for success. We are on the continuous process of meeting the
needs of each specific group of customers.
We customize our products accordingly to the requirements and specifications of the
customer because most of the products from both ours and competitors have the
common materials and if we do not serve customers with what they needs then we will
lose in the business game.
As we can know the trend of each area that why we see this information is an important
factor. For all of our customers we do not focus on these things, we just care of it for our
important customers.

We already have the automation inside our system as we connect our system to the
resource planning system so most of information relate to the orders from customers
and whenever new files are created will be stored. This will help employees to handle
less work. The automation is more relate to the teamwork than follow the level of the
system.
Beside this we provide to our employees a system which can help them to build a sample
product quickly as it is called configurator. Using this system can help the employees to
understand what customers need for their products faster and give a sample of product
with the estimated price.
5.

Is there anything you would like to add related to the objectives of CRM?

T: it is hard to achieve the goal of CRM and it take a long time and cost to find someone
to use this system hence there are a few company try to use it.
5.2.2.

Strategy of CRM

6.

How does your organization interact with customers, what are the touch

points?
T: we use face to face for most cases but we still have a group of employees who will use
phone to receive and solve problems with customers. Mostly the sales person will take
the responsibility to this but sometimes the technicians also do this.
7.

What is the reason for these interactions and when are they used, explain

why?
T: the reason for this come to us naturally as the customers call us and we visit them to
see what their products look like and find a package solution for them.
8.

Which interaction types below are important?

Television, website, e-mail, phone, radio, personal sales, service employee

T: we work in a packaging industry so TV and Radio are the two interaction types which
are not suitable for us because the customers will not pay attention and care if we are

presented. The customers need something else that they can have a verdict of the
solution for their product.
With the high development of digital age we see the important role of using website to
reach to the customers. After using the website, we realize that a half of all leads come
from this and by the way we can provide customers a form to fill in for what they need
and they also can contact us through this as we can see what sections in our website
they like to visit so we can contact them for more discussion.
E-mail as a survival tool that we think if we cannot use it we will loss many contracts.
Phone also has an important role in our business but e-mail has the highest priority when
communicate with the customers.
The sales person also is a necessary interaction type but how it is important will depend
on the region as we are well-known in one country but in another countries we do not
have the same impact so we have to employ some employee who will contact with many
companies to present our products along with ourselves and try to have meetings with
them.
9.

What is the strategy of the organization?

T: our purpose is to be the global company that provides packaging solution for all of our
customers. Generally, we want to be the new packaging department of customers and
they will find us whenever they want to pack their products.
We also want to have a contract with them as soon as possible and help them to find the
solution from the beginning.
This mean our strategy is to sale as much as possible with all of our efforts.
10.

How can your customer be defined and targeted?

T: there will be the differences between other countries so the customers can be
targeted depend on their regions. Beside this website is very important that we try to

take advantage of it. As in Vietnam it is less hold events or fairs so we have to use the
phone call and email or website to find the customers.
11.

How would the customer life cycle look like?

T: this life cycle depends on the size of a contract or the customer. Some of our big
customers sign billions of Vietnam Dong contract so it would take a long time to deliver
the finish product. For the case of normal product we need about one month to offer the
test product and this process will back and forth for many times until we find the
complete solution for this.
Whenever the customer stop one specific product that will be a message for us to know
that we also need to stop producing too but we make a good relationship with the
customers so when they have a new product then they will contact us for a new
packaging solution.
12.

How is your information about customer organized?

T: the CRM system can be seen as a huge database system that all of information about
customers will be stored for reviewing and analyzing later. But it seems to be a majority
of employees do not use it and even they put information into the system in an improper
way.
We just go out few times to meet our customers or visit their website to get the
information but we have many tasks to do at the office so we decide to let the sales
person to do it but it is difficult to get the correct information from this.
13.

What type of training do your employees have in order to contact with specific

customer?
T: We provide to our sales people a training which helps them to improve the sales skill.
They also had some training programs related to how to use the CRM system and mostly
through the webcasts. As a result we realize the benefit and effectiveness then we like to
use the webcasts as it is cost-effective.
14.

How is your organization culture described?

T: from the past we are just a small company and through many years we become a large
one. There is autonomy in our company that employees can feel free to say what they
think and anytime they want to give their opinion about their work or something else.
Open communication is recommended between departments. Because of there are
some sub companies inside our company so this will have a difference in the culture but
it seem to be that the majority of our employees have the common points in this culture.
15.

Would this culture have positive or negative effects to customers? Are there

any types of reward for cultural behavior?

T: in the positive side as we can easily have a short part to make a decision for traveling,
opening card and a little politics. Beside this the negative side of this is the difficulty to
organize the solutions which come from the freedom of mind inside everyone.
As we do not reward our employees based on the culture, we have a bonus system that
give chances to employees to learn new skills and develop themselves. We do not know
if our bonus system have anything related to culture but all we provide to them is only
want them to learn new knowledge and keep developing.
16.

How does the organization set apart customers?

T: there is no particular categorization customer into groups; we have the economic

department where everything will be check if they are in order or not by going through
the customers. There is a bonus system that employee can attain base on their success
they bring back to the company. This will be the motivation for them to work with the
CRM system and they can be able to keep track of their progress.
Although we do not have any direct categorization with the customers but we know
which customers can bring the benefit to the company. For the bigger customers we will
show more consideration than the small ones. The reason for this is the small customers
will be handled locally and the bigger will be handled centrally.
17.

What are the most important factors relate to the profitability of the

customer?

T: we calculate the profitability of customer through the contribution margin. We do not

try to assess ourselves in every situation but we have a watching of what is on the
market as we can do. Whenever we work with customer, we give to ourselves a guessed
of customers value. This can help us to inspire the bigger organization with higher
expenses.
18.

What are the factors you think as important to you?

a.

Customer profit margin

T: this factor is the most important thing that company needs and it is the influence of
cash to the company.
b.

Customer retention rate

T: We mostly care about the big customers but we do not forget the small or even left
customers to gather information. We always keep checking the new customers along
with left customers. We always want to have new customers but it is costly than keep
the old customers with us as we see it as a balance game.
c.

Customer cost of capital

T: In a general view, we mostly do not place any cost for the back office by the customers
through a time clock. We make an appropriate guess for what we think our customers
are costing us. The costs are included the time the customer have with the sales person
and the design team spend with each product.
d.

Time that customer will stay with the organization

T: it is difficult to forecast the time the customer will stay with us but if anything goes in
a wrong way or something happen with the relationship between both sides the sales
person will report to us immediately in order to deal with this problem right away to
avoid the worst result.
19.

Are there any strategies the organization use to separate the customer?

T: we have almost a dozens of big customers that we assign key person to handle them.
We do not assign every key person to every customer that is our strategy depends on the
size of customer. As we mentioned above the big customers will be handled centrally
and the small ones will be handled at different offices around the world.
20.

What types of relationship does the organization have with the customer?

T: all of this is about the personal relationships as we always want our employees have
close relationship with each of customers. We do not want any one time transaction, we
give high appreciation for the long-term relationship and we do not like to have
customer through the price strategy. We want to be the partner of our customers.
21.

Are there any customized products for different customer? If so, how does the

organization make it?

T: we have many types of product lines that we can combine these different products to
provide the suitable product for the requirements from the customers. Each of products
we deliver to the customer is customized and will be suitable for their products.
22.

How does the organization achieve knowledge about customers?

T: we mainly get the knowledge through our sales person who has close relationship
with the customer.
23.

Does the organization make every effort to achieve knowledge in specific

areas?
T: most of time our customers end an product line or give a new one that they rarely
announce this to us so we have to get the information and seek for the imply message
from them to take the chance.
We have quite information about the price of our products but we still want to offer
better price for our customers. When sales person lose a contract then they will find the
reason and whether the competitors offer better price for the customers.
24.

Does the organization view these types of information essential in business?

a.

Why customers are loyal to the organization

T: We have regular surveys to take the feedback from the customer about their
satisfaction. The result will be based on the majority of customer not on individual. The
sales person will have the responsibility of collecting this information. It seems to be
much information for them to handle.
b.

Why customers leave the organization

T: Most of time the reason is the customers end up their product but sometimes the
competitors offer the price is better than us.
c.

Why customers are loyal to competitors

T: We want the sales people to provide this information into the CRM system every time
we get or lose any contract but they seem to be unwilling to do this because they cannot
see the benefit from it yet.
d.

Why customers leave the competitors

T: This kind of information is hard to attain and if we can get this we will use it.
25.

What would the process of development look like?

T: We already configure our CRM system but it cannot work as better as we expect as it
have too many feature that we do not need to use.
One disadvantage from this system is it cannot be used in the offline mode and it is only
synced with outlook from the Microsoft.
26.

What are the most important points of developing CRM system?

T: we do not have much development for this system as the only thing we often do is to
turn on the system. The difficult task that we try to do is to have the right people who
want to use the system.

We also alter something in this system and it work together with the business and we
think we still need to have better combination to the CRM system in order to make it
become effective.
27.

What level of integration does the organization look for the CRM system relate

to the flow of information?

T: the benefit from this system is the information has the two ways direction. But the
disadvantage of it is the CRM system cannot work offline. However we can the orders,
shipments and bills from this system.
After all we found that the main problem of this implementation is not belong to itself, it
is the problem for what kind of information you want to collect and store in the system,
only important information will be collected then you will get something important from
the system in return. One thing you should not do is to force employee to use this
system even though they really do not like it and if you still force them then only useless
information will be entered.
5.2.3. CRM Performance
28.

How does the organization assess the result of customer strategy?

T: we give more attention with the big customers who we do not want to lose any
contract with them as we want to be a partner, friend and grow together. We also care
with small customer but the higher for the big ones. And whenever we lost a big
customer we will see the result in the number of sales product immediately.
29.

What are the important factors of performance relate to CRM system?

T: we compare the orders are made to the company and the numbers we put into the
CRM system. And we know exactly who use it or not.
30.

Does the organization assess these following points? If yes, explain how? If no,

why?
a.

Organizational

I.

Shareholder value relate to CRM

II.

Benefits of CRM strategy

III.

Total customer value

T: all of these points are important to assess as we can increase the sales number so the
shareholders will be interested in the effect of this than the performance of the system.
Truly to say that they do not care about the system but one time they care about the
implementation of ERP system because it is very expensive.
In order to get the benefit from the CRM system as much as we can so we decide to
analyze and assess all of the customers from the big to the small customers.
b.

Customer

I.

Customer Loyalty

II.

Customer Retention

III.

Customer Value

T: We want to meet and talk with the customers to have a deeper understanding about
their situation. If everything is on a good way then we will announce it to everyone in
company to know but if there are bad situations happen then we will let others know
that and recommend them not to do this. And there is the same with retention and value
of customer.
c.

Process

I.

Customer acquirement

II.

Customer retention

III.

Customer expansion / cross sales / up sales / Referrals

IV.

Returning customers

T: If there is a customer who decides to leave then we will get the sales person to find
the reason for this action but sometime we cannot get this information and sometime
we can. We will use all of information we have to make a plan for bringing them back.
We also try to expand our products to other customers and other product that one
customer sells.
d.

IT- CRM technology

T: We still not try to assess the system itself and we just assess other companies to know
how the work could be done and what is not good to do.
When our employees are educated about how to use the system and we want to receive
their feedback but it seems to be the negative is more than the positive feedback.
e.

Human capital

I.

Employee behavior

II.

Customer satisfaction

III.

Management attitude
T: we compare the number of orders made and the number of orders we put into the
system.
We also keep track to know who use the system and who not, we also ask them to
provide their opinion as whether they are happy or there are any changes they want to
add more to the system. It
The management gives what they want and tell to the whole employees then this will be
put in action as soon as they have all of employees to know the good of this system.
31.

Strategic orientation

a.

Training

b.

Reward system

c.

Organizational structure

T: everyone in our company has a sales process to follow and they are educated to
understand how this process will relate to the system.
We also have regular meetings that employees can have a discussion with the managers
about the training and how they feel about their work. There are some surveys that we
distribute them anonymously and get to know what they like and do not like.
The reward system is presented as each of employees will be reward locally and in the
individual situation we reward them with the personal goals rather than the company
but after all there will benefit for the company. And the reward is based on the profit
margins.
32.

Culture:

a.

Partnership

b.

Market positioning, increase or decrease performance would cause the change

of culture
T: we ask our employees to understand what the feel when they work together in the
survey and this can be discussed through the meeting with the superior.
One important role of the manager is to finding a right people for a specific job. We also
have a test to determine whether these candidates will fit with this job.
6.0

Analysis

This chapter includes the analysis and the comparison between the theory and data we
collected from the research. The main goal of this is to show the differences and
similarities between them.
6.1.

Objectives and Benefits of CRM

In this section, there will be the analysis objectives of CRM related to customer and
business.

The answers from the both companies are centralized for a quick review and comparison
in the following Table 6.1
Table 6.1: Summary and comparison of objectives

6.1.1.

Customer Objectives

According to Sherif, Nguyen & Newby (2007) that the company can serve their customer
in a better way through the collected information about their customers and the loyalty
also is increased. Zeng, Weng & Yen (2003) also state that through using the smart
technology in the system then the customers satisfaction will be improved too. Beside
this Gummerson (1994) the good relationship between the company and customers will
let the customers come back in many cases.
Shaeffler have their customer approach based on these statements and they understand
them through: loyaltyof the customer, the satisfaction and the retention as these things
are the result of a better organized and understand the value of customer. They believe

that they serve their customer better and increase the customers loyalty and
satisfaction by using the CRM system.
Schaeffler shows that their objective is to manage and organize information in their B2B.
The price has the biggest impact as the decider for their success but the relationship
between customer and them also has an important impact too.
The CNCD Company also agree with the theory which is good CRM system can help ones
to change the loyalty, satisfaction and the retention of customers. However they also
think the CRM system is about the organized information.
6.1.2.

Business Objectives

The main goal of using CRM is to collect information of customers and take advantage of
this to increase the sales number (Xu & Walton 2005). Furthermore, Sherif, Nguyen &
Newby (2007) clarify that information of customers can be used to have a deeper
understanding and get what customers needs faster to serve them in a better way.
Schaeffler agrees with this as the CRM system will be used to store information of the
customers, if the company can have a clear view with the information they will have high
chances to win the negotiation with the customers.
As for Schaeffler, they give more explanation for the cross and up sell. They only sell
products for their customer based on the very detail specifications from the customers
and the customers do not want to buy anything else except what they need.
CNCD also agrees with the use of CRM is to collect information and understand more
about customers. They give more focus on the big customers and the trends from them
to understand the market. And obviously they do not get any benefit from CRM system
for cross and up sell. They still produce the products based on the specifications from the
customer so they cannot sell any more than the customer just want to buy.
Schaeffler also see extra benefit from the CRM system is to move the knowledge from
the employee top the company so they still get a strong relationship with customers
even if some employees leave them.

According to Zeng, Weng & Yen (2003) the benefit from using the smart system can help
the company to collect information and give a respond to their customer faster. The
other benefit from this system is the company can forecast the future sales through the
analysis of the information.
Schaeffler agrees with this theory as applying smart system is an important task but they
also think the ability to forecast future sales is not useful in their position.
CNCD agrees with this as they see the important role of collecting data and use it to
know the trends. They use this information from their big customers to catch any
changes to the market so they will have higher chances to give better offer to the
customers.
Xu & Walton (2005) also state that one of the benefits of CRM is to automate the sales
force with the aim of increase the speed of the sales process.
Schaeffler do not agree with this because they do not see any need to have another part
in their relationship with customer and the products are too complex with detail
specifications so it is no use to analyze the previous orders from the customers.
CNCD agrees with this statement as they see the benefit from it to reduce task to their
employees. They also build a system which can help them to produce a sample product
quickly for giving demo and estimated price for the customer and this system also can be
seen as an automation system.
6.2.

CRM strategy

This section will give an overview of related strategies in CRM

The answers from both companies will be summarized in order to have easy review and
comparison in the Table 6.2.
Table 6.2: Summary and comparison of strategies

6.3.

CRM Performance

This section will provide the analysis of the performance of CRM

The answers of the companies are summarized in order to have an easy review and
comparison in Table 6.3.
Table 6.3: Summary and comparison of performance

As Schaeffler the most important feature of CRM system is it take part in the business
well and do not generate any problems or more workload for employees and of course it
make the relationship from both sides to be more easier. They think the customer will
feel happier and satisfy with new experiences they provide through the implement of
CRM system.
CNCD think the most important benefit they can get from the CRM system is it help them
to organize customer information and they can work well with the current system. The
most difficult task they need to deal with is to find the people who willing to use this
system and put useful data into it.
7.0

Conclusion and Effects

The previous chapter showed the analysis and comparison of theory and collected
information. This chapter will summarize all of this information under conclusions and
effects.
7.1.

RQ1: How can the goals and benefits of CRM be defined?

Through the research there are many reasons for a company to accept to use CRM in
their B2B. The objectives include: organize customer information, customer satisfaction
and retention and have better understanding about customers.
The objective of CRM as the advantage of helping company to organize the information
of customer has strong agreement. How customer will loyal, satisfy and stay with the
company is the result of managing and organizing customer information. These good
effects of CRM also are affected by the price which is the main decider in B2B.
Generally, the CRM system help the company to collect information through keep
contact with customer by email, phone, documents and meetings that they will own this
information instead of letting each employee have the information. There are many
departments and deciders in one company that it is hard to focus on the loyalty so what
the company wants to give more attention are the prices and how to meet customers
requirements. One more reason that many companies do not like to use the CRM system
to focus on the loyalty of the customer because they also have assigned each key

account manager to each customer rather than the CRM system just imitate this process
without assigning anyone to specific customer.
In B2B, most customers are all the companies that they just want to purchase only what
they need so cross and up sell seem to be unsuitable for them in many cases but
sometimes it is caused by the complicated purchasing process which is the barrier to one
company to give more product choices to their customers.
However the ability to forecast for the future sales has less important role as these
companies they explain that they have to customize their products to meet customers
needs is a n exist process before the CRM system is introduced so it seem to be the CRM
cannot help much in this situation.
There is a belief that most B2B companies just buy what they want so the number of
sales will not increase.
Therefore this is the conclusion after analyze the results:
The core purpose of the CRM system is to help company to collect information and
organize it in an effective way to have a complete view of the customers and this
information can be accessed throughout the company in any departments.
The most important benefit that CRM system can bring to the company is to help them
to control and take control with the information as it will be not own by anyone in the
company. Whenever employees leave company the information of customers they
worked will stay with the company to manage and maintain easier.
CRM provide an easy method to review the information of customers. This will help any
new employee in company who they have not worked before can understand what is
happening with the customers quickly.
The loyalty, satisfaction and retention of customer are the result from the better
organized information of the company.
7.2.

RQ2: How can CRM strategies be defined?

To reach these objectives there need to have some strategies of the CRM system. There
are some areas are important as the touch point, use important information, create
customer value, customized product, interdepartmental communication, and begin at
small then expand later.
The touch points have the important role in the B2B communication. Information comes
from everywhere so it is necessary to have a system which can be at every place where
important information comes up. These touch points need to be able to access easily
hence the customers will get responses quickly. Beside this e-mail is a popular
interaction type that is used in most cases.
The value of customer is very important factor that most companies need to take care of
this. In the research, most B2B companies see this value is an ongoing process. These
companies do not see any ways in the theory to find the customers value. The loyalty
and retention have low attention of companies because they think these points have no
clear link to the real profits. They calculate the margins of each product they sold and
then use it to have a general view of the trends from the past are preferred.
The loyalty and the retention also with the satisfaction of the customer will be affected
by the prices as an important decider in B2B contracts. Therefore if one company offer
lower price than another one there will be a change in choosing the provider.
In the research, B2B Company has the principal role in fulfill the needs of customers. The
two selected companies in the research explain that sometime they have to do to survive
in the market. The customization occurs in order to meet the customers needs and if we
do not make it they will not buy.
The important role of culture in the CRM system has a strong position in theory but it
gets many arguments from the reality through practical data. How the culture can help
the company to achieve their goals is a big concern. The training is also argued in the
practical data but it still has some positive effect beside it is not used much.
It is the same with theory that most company need to start with small and then they can
expand later.

The customer cycle also is an interesting subject which is described differently between
practical data and theory. The research points out that the customer cycle is an ongoing
process which has no distinct stages as what is in the theory. This difference can be
known through the reason that in B2B companies have strong relationships with each
other so there is no need to divide customers into different groups.
The biggest problem in this system is not how to implement it but it is in how to get right
people at the touch point and enter data correctly.
This is the conclusion after getting the result from the analysis:

E-mail is the most important interaction type that most of B2B companies use to

interact with their customers.

All of information in the communication between employees and customers

need to be recorded in order to have a clear review.

There are some touch points are in different departments instead of sales

department.

It is difficult to calculate the loyalty and satisfaction of employee.

Price has the big effect on how the company can get the contract with

customers.

Companies have strong relationship with each other for a long time can help

them to avoid the case of one might leave.

Customers are not divided in any groups and need to pass through any stage.

The most difficult task in order to implement the CRM system is to get the right

people to use it.

7.3.

RQ3: How can CRM performance be measured?

In this research, performance is the most difficult extent to gather the information. It is
also different from the theory and the practical data in the measurement of CRM

performance. This issue may happen because this is the new area which has no enough
research for better understanding.
The research also points out the most important factor of CRM is to help the company
contact with the customer in a way which the customers feel more better and the
employees do not need to send much time than usual to contact and collect information.
This research still not explores how to measure the performance of CRM and it just show
the opinions from the employees.
There is an interest in assessing the interaction between the company and the customer
through the analysis. By evaluating to know what is worked or not in order to understand
how company can make a progress or will lose one contract.
People is the core component of any company and the research showed that the
concerning of people have big support. The most used method to do this is the review
meeting. In this meeting, their performance will be discussed and new goals will be
established.
This is the conclusion from these results.

Having all information about customer is the main reason that some companies

want to implement it but there is no method to measure its effects objectively.

The best method used to measure the CRM performance is to ask the users for

giving their opinions about the system.

7.4.

Effects on Future Research

This research also provides some understanding of CRM in B2B situation. There are many
other research topics that can be explored of the CRM.
This is the list of topics can be further exploreD:

How to assess the performance of CRM

Under the customer perspective how can CRM be compared in B2B

environment.

Price versus loyalty in B2B environment

7.5.

Effects on Practitioners and Management

CRM has many poor definitions which is important to the success of any project with
clear range of objectives. It is still have many cases that many companies try to use CRM
and use an IT system then they still have no ROI in return. It is necessary to have a plan
and try to work it out before applying any system from the third parties.
Know where the customers and the company will contact with each other and the
company needs to consider these touch points in order to develop the CRM system.
Find the comfortable system which is suitable with the company because there are many
systems in the market with the same feature but the system need to be comfortable
with the people who use it every day.
Company needs to understand what they want to train their employees. How to get
people to use the system and apply it to their work is the difficult task.
The main factors that make the customers come back to the company are needed to be
got in hands. Whether the price will be the decider or something else can help company
increase customer loyalty.
The research pointed out that culture has an important role but it does not help
company in any situation at all.
It is difficult to measure the effects of CRM; it is necessary to know how the objectives of
CRM can be measured so the company can know when they can get what they need.

8.0

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9.0

Appendix A Interview Guide