implementation of e-crm in b2b e-business context for...
TRANSCRIPT
1
Implementation of E-CRM in B2B e-business
context for Chinese SMEs
----A Case Study of Xiwang Company
A study submitted in partial fulfillment
of the requirements for the degree of
Master of Science in Information Management
at
The UNIVERSITY OF SHEFFIELD
by
Lina Wang
September 2009
2
Abstract
Customer is the core element of all business operational activities. E-CRM is the
product of „customer-centric‟ modern management idea and IT technology, which
can improve the core competitiveness. It has been developed rapidly in China.
However, some fails. This article will discuss this topic through the case study of
Company X. The content of the dissertation include:
(1) Theories about e-CRM are provided. Definition of e-CRM, characteristics of
e-CRM, and functions of e-CRM are firstly reviewed. After that, the impacts to
traditional enterprises are given from marketing, competitors, company and
technology. And then strategies and implementation of e-CRM is discussed. At
last the development of e-CRM in China is provided.
(2) Methodology that used to study the research is illustrated. Both inductive and
deductive theories are adopted in the research. Both quantitative and qualitative
research are discussed which are relevant to the methods of data collection
including questionnaire and interview.
(3) Data analysis and findings are provided according to the information from
questionnaire and interview. Discussion is given next to list the major findings
and explanation of the findings. Meanwhile, the limitation of the study and
suggestions for further research are mentioned.
(4) At last, a short conclusion is given to sum up the basic idea of the study.
Recommendations are given to solve the problems existing in the company
according to the findings of the research.
3
Acknowledgement
I would like to express my appreciation to the people who assisted me in the
complementation of this research report.
I particularly would like to thank my supervisor Dr Jonathan Foster who guides
me to do the research, answer my questions and give me useful suggestions very
patiently. Without Dr Foster, this research would not have been successfully
completed.
I also would like to thank my family who gave me support through all the
process of the work. Without the support of my father, I could not have got the
relevant information from the company in time. Many thanks also go to my
mother, brother and sister who courage me to complete the work.
I also would like to express my sincere thanks to Mr. Ma who gave me the
opportunity to take a personal interview and answered each question carefully.
Finally, I would like to thank the participants who answered my questionnaires
without their support, the research cannot be completed.
4
Contents
Abstract ........................................................................................................................................... 2
Acknowledgement .......................................................................................................................... 3
Chapter 1Introduction ..................................................................................................................... 6
1.1 Background to this study ................................................................................................... 6
1.2 Background to Xiwang Company ....................................................................................... 7
1.3 Aim and Objective and Research Questions ..................................................................... 8
1.3.1 Aim of the study ..................................................................................................... 8
1.3.2 Objective of the study ............................................................................................ 8
1.3.3Research Questions ................................................................................................. 8
1.4 Scope of the study ............................................................................................................. 9
1.5 Significance ...................................................................................................................... 10
Chapter 2: Literature Review ......................................................................................................... 11
2.1 The definition of e-CRM .................................................................................................. 11
2.2 Characteristics of e-CRM ................................................................................................. 12
2.3 Functions of e-CRM and the Relevant Implementation Measures ................................. 13
2.4 Impacts of e-CRM on traditional enterprises .................................................................. 15
2.4.1 Impacts from marketing ....................................................................................... 15
2.4.2 Impact from Competitors ..................................................................................... 16
2.4.3 Impacts from the Interior Company ..................................................................... 16
2.4.4 Impacts from technology ..................................................................................... 17
2.5 Strategies for implementing e-CRM ................................................................................ 17
2.6 Implementation of E-CRM in SMEs ................................................................................. 18
2.6.1 Establishing a Rational Program Implementation Goal ........................................ 19
2.6.2 Understanding and Support of the Senior Manager ............................................ 19
2.6.3 Drive E-CRM Program through Business .............................................................. 19
2.6.4 Control Change Effectively ................................................................................... 19
2.6.5 Establishment of Program Implementation Organizational Structure ................. 20
2.7 Advantages of E-CRM Implementation to Organizations ............................................... 20
2.7.1 Customer Satisfaction .......................................................................................... 20
2.7.2 Customer Loyalty.................................................................................................. 22
2.7.3 Customer Retention ............................................................................................. 22
2.8 Advantages to organizational business performance ..................................................... 23
2.9 Customer Value ............................................................................................................... 24
2.9.1 Importance of Customer Value for E-CRM ........................................................... 24
2.9.2 Definition of customer value ................................................................................ 25
2.9.3 Evaluation of Customer Value .............................................................................. 26
2.10 Customer Analysis in e-CRM ......................................................................................... 26
2.10.1 Definite Rewards and Penalties of Project Personnel ........................................ 27
5
2.10.2 E-CRM Customer Analysis Basic Flow ................................................................. 27
2.10.3 Customer Classification in E-CRM ...................................................................... 28
2.11 Performance Evaluation of E-CRM System ................................................................... 32
2.12 Development of e-CRM in China ................................................................................... 36
Chapter 3: Methodology ............................................................................................................... 37
3.1 Introduction ..................................................................................................................... 37
3.2 Research Theory .............................................................................................................. 37
3.3 Research Design and Strategy ......................................................................................... 39
3.3.1 Introduction .......................................................................................................... 39
3.3.2 Research strategy ................................................................................................. 40
3.4 Methods of Data Collection............................................................................................. 41
3.4.1 Selection of the case ............................................................................................ 42
3.4.2 Survey Sample ...................................................................................................... 42
3.4.3 Secondary Data .................................................................................................... 43
3.4.4 Primary Data ......................................................................................................... 43
3.5 Questionnaire .................................................................................................................. 44
3.6 Data analysis technology ................................................................................................. 51
3.7 Interview ......................................................................................................................... 52
Chapter 4: Data analysis and findings ........................................................................................... 54
4.1 Data analysis and findings from questionnaire ............................................................... 54
4.1.1 Response Rate ...................................................................................................... 54
4.1.2 Demographic details of respondents ................................................................... 54
4.1.3 Psychological/Lifestyle ......................................................................................... 60
4.1.4 Customer satisfaction ........................................................................................... 69
4.1.5 Customer loyalty .................................................................................................. 72
4.2 Data analysis and findings from interview ...................................................................... 76
Chapter 5: Discussion .................................................................................................................... 79
5.1 Major Findings of the study ............................................................................................ 79
5.2 Meaning, Importance and Alternative Explanations of the Findings .............................. 80
5.3 Limitations of the study ................................................................................................... 85
5.4 Suggestions for further research ..................................................................................... 87
5.5 Conclusion ....................................................................................................................... 87
Chapter 6: Conclusion and Recommendation ............................................................................... 89
6.1 Summary ......................................................................................................................... 89
6.2 Recommendation ............................................................................................................ 91
Reference ...................................................................................................................................... 94
Appendix 1 .................................................................................................................................. 102
Appendix 2 .................................................................................................................................. 112
6
Chapter 1Introduction
In the information age, differences of products and services have been decreasing.
Customers concern their demands not only for superior quality but also for
responsive service. The effective way that can be provided is through customer
relationship management (Duke et al, 1999).
The paper shall be limited to issue of e-CRM in Chinese SMEs based on the
company. At the second part, background to this study will be given; background to
this company will be illustrated next. Aim, objective and research questions are
provided.
1.1 Background to this study
CRM is the producer of modern management idea that is „customer-centric‟ and
advanced IT technology, which can help improve the core competitive advantage
(Buttle, 2005). In 1999, customer relationship management enters into China market.
In China, CRM market has increased by 58% in 2001; while it has increased to
$ 37,000,000 in 2004 (Chen, 2007). It has got a bright prospect. However, a decline
in CRM demand in large companies exists all over the world. On the contrary, there
is a rapid increase in CRM market of small and medium-sized enterprises (Chen,
2007). Therefore, how to implement e-CRM in SMEs becomes our focus. In
theoretical circles, customer relationship system in large companies have been
largely researched; however, customer relationship system in SMEs has been
identified not enough. In business circles, SME enterpriser attempts to make use of
e-CRM system in order to improve core competitive advantages, however, without
enough theoretical support (Li, 2004). This paper will discuss the area of e-CRM
around theory, problems and strategies in the implementation of e-CRM based on the
7
study of one SME-Xiwang Company. The background to this company will be given
next.
1.2 Background to Xiwang Company
The papers are based on the case of Xiwang Group Co., Ltd. This company‟s main
business is corn deeply processing. Till now products have extended to other relevant
products, such as Dextrose Monohydrate, Anhydrous Glucose, Crystalline Fructose,
starch, Corn Gluten Meal, and corn oil and so on. Online shopping is the major
method to sale products. They connect with customers through e-mail, e-business
website, and internet chatting tools. At the beginning of e-commerce, there is
relatively single channel so that it is not conducive to the promotion of their products.
In 2005, they have established their own e-commerce website. All the information is
classified and detailed information is published in the website. Online Consultation
and e-mail connection are provided to help customers contact with them. In order to
improve systematic online sales, ERP and CRM systems are established in 2008. By
this way, they try to satisfy customers demand during each aspect of sales process
and achieve standardization and systematization of sales. E-CRM is at the initial
stage. Many difficulties exist currently, such as some managers‟ questioning,
operational risk, and so on. Their focus now is to know how to standardize business
process optimization, improve advanced and accounts receivables management,
reduce financial risk, and improve delivery speed, interaction rate and timely
availability. Ecommerce is not very perfect in this company. Wholesales are main
customers. CRM was established recently, however, e-commerce and e-CRM are still
at the initial stage. It appears to be important to evaluate and analyze it in order to
implement e-CRM in B2B e-commerce context successfully.
8
1.3 Aim and Objective and Research Questions
1.3.1 Aim of the study
This proposal aims to identify key issues relevant to e-CRM and B2B e-commerce,
and determine how to improve it in terms of evaluation of company‟s current efforts
and problems during implementing e-CRM on Xiwang Group Co., Ltd.
1.3.2 Objective of the study
1) To review theoretically what e-CRM is in terms of definition of e-CRM, what
kind of strategy e-CRM needs to be built upon, how to implement it in SMEs,
and development of e-CRM in China.
2) To investigate the implementation of e-CRM in Xiwang Group Co., Ltd from the
view of managers and customers.
3) To identify factors these may influence company‟s e-CRM implementation.
4) To better understand customer values obtained from e-CRM program and e-CRM
success.
5) To test the hypothesis whether customer satisfaction has positive relationship
with customer loyalty.
1.3.3Research Questions
1) What percentage of organizations‟ customers is online shopping customers? And
what are the customers‟ perceptions of company‟s e-CRM program?
2) What factors can help managers to strength the development of e-CRM program
related to customer loyalty and customer satisfaction?
9
1.4 Scope of the study
The research shall evaluate the e-CRM features of Xiwang Group CO., Ltd from
both customers‟ perspective and company‟s perspective and evaluate how customer
value from e-CRM efforts relates to customer satisfaction, customer loyalty and
customer retention.
The concepts of e-CRM shall be given to have a basic understanding of e-CRM from
different views, including technology angle and practical angle. And then a fully
understanding of e-CRM is given. After that, it is necessary to illustrate the
characteristics of e-CRM, which involve in convergency, one to one and real time.
Functions are also important to explain because companies can carry out this
program in terms of different functions and make e-CRM efficiency. During the
innovation, traditional enterprises must suffer many impacts from marketing,
competitors, interior company and technology. It is important for them to realize the
problems in order to implement this program better. In the process of implementation
of e-CRM, three strategies should be paid attention, including electronic strategy,
personalization strategy and customization strategy. They can be considered as one of
the standard to evaluate the e-CRM performance. Because the company that we are
studying is a SME, how the e-CRM implement become very important. Customer is
the core of marketing, therefore, customer analysis is important in order to
implement e-CRM. Customers are classified as different groups in terms of different
index. Company can make relevant strategies in terms of different value group. It has
got quite a lot of advantages to organizations to implement e-CRM program. Four
advantages are illustrates, including customer satisfaction, experience, customer
loyalty and customer retention. A hypothesis is concluded: higher customer
satisfaction high customer loyalty customer retention (repeat purchase); low
customer satisfaction low customer loyalty customer loss.
The hypothesis will be tested through the analysis of data from survey. In addition,
10
e-CRM has benefits to organizational business performance, including reducing cost
and increase revenue, increase business operational efficiency, and developing new
markets. Whether company has got good performance shall be evaluated through the
evaluation of e-CRM performance. Customer satisfaction and customer loyalty is
considered to be tha major index. The methods to evaluate the index are mentioned at
that part. At last, the development of e-CRM in China is given.
1.5 Significance
After many years‟ informatization Construction, small and medium enterprises have
almost completed the basic construction and have the demands of higher level
management application (Wang, 2008). Besides this, owning to the fiercely
competitive market and high homogeneity of products and service, SMEs are forced
to pay attention to individuality demand. Understand the situation of lower and lower
switching cost of products and service, how to make customers to repeat
consumption of provided products and build high customer loyalty become a serious
problem. Therefore, SMEs have to improve competitive advantage through rational
e-CRM.
11
Chapter 2: Literature Review
2.1 The definition of e-CRM
E-CRM is customer relationship management in the context of e-commerce. The
similarity between CRM and e-CRM is that they both focus on customer care. Brown
(2000) defines CRM to be the management of customer relationships, and it can be
executed through the availability of technologies, including PCs, telecom networks
and especially the Internet, data-mining tools and so on. From the definition, CRM is
described from the view of application systems, and is concentrated on the Internet to
manage customer relationship channels and business functions.
Roger (2000) suggests that e-CRM concludes three application program structures:
online mode, browser enhanced mode and network enhanced mode. The online mode
is fit for an application program that already provides the client and server structure.
The second one enriches the interface and helps to achieve more functions through
the technology built into the browser, such as dynamic HTML technology. However,
Li, H. R. (2004) states that, when dynamic HTLML technology cannot meet the
requirements of the application program with Java technology, it need to use an
operating system and virtual machine that is in network enhanced mode.
However, Liu (2007) defines e-CRM from the practical perspective except for the
view of the application system. She states that e-CRM not only concludes the
expansion of the whole solution to help enterprises win the competition, but also
shows that companies fully depend on the Internet and technology of electronics. The
definitions together give a better and fuller understanding of e-CRM.
12
2.2 Characteristics of e-CRM
In the Electronic Age, the rapid growth of e-commerce has become an inevitable
trend. At this stage, the only way in which enterprises can achieve competitive
advantage is not through technology or products, but customer relationships. Buttle
(2005) states that network technology not only improves and enhances the way and
speed of information submission, but also simplifies the firms‟ customer service
process. E-CRM helps companies make use of e-marketing tools to debug their
marketing mix in order to adapt to the special demand of customer segmentation and
satisfy each potential and existing customer. It helps companies to build longtime
profitable relationships with customers. E-CRM has the following characteristics
specifically.
Convergency
Fortin (2006) indicates that it concludes the integration of a holocoenotic
communication channel and advanced Statistical Methods for Data Analysis. The
former makes customers use different channels, such as telephone, fax, website,
email etc. to communicate with companies at the same time. The latter explores
customers‟ relevant resources deeply, which can be considered as a basis for
customer management.
One To One
E-CRM considers each customer as an independent unit (Iyer et al., 2004)..
Therefore, companies trace or analyse single customer behaviour as a unit, in which
way they find customers‟ behaviour or preference. Meanwhile, coping strategies or
marketing programs are provided according to the individual condition of each
customer.
Real Time
However, Jin(2008) stated that customers, in the Internet Age, receive information
13
rapidly so that customers‟ preferences are changing constantly. Customers need to
watch changes of customers and adjust their coping strategies immediately, which
can help to grasp first chance and gain clients.
2.3 Functions of e-CRM and the Relevant
Implementation Measures
The functions can be reduced to three factors: informatization of business flow
involved in sales, marketing and customer service; Integrated and automated
processing of communication means including telephone, fax, internet, e-mail etc.;
processing information that is created by the former two functions, and generating
customer intelligence. The functions of CRM software can be concluded into the
following ten elements.
Customer management
Dyche (2004) indicates that customer management involves the generation of
customers‟ essential information, basic activities and history that is relevant to
customers, order input and trace, generation of suggestion letters and sales contracts.
Contacts management
Contacts management is believed to be another important function by Professor
Kotorov (2002). In order to manage contacts effectively, the following factors should
be completed: the record, storage and retrieval of contacts summary; making traces
for customers, such as time, type, simple description and missions.
Time management
Time management includes calendar, design activity plan, conflict reminding, event
arrangement, and so on (Kotorov, 2002).
14
Marketing management
Jin (2008) believe that with e-CRM software, staff can organize and browse
marketing information, generate interim reports of each business, success possibility,
history sales status evaluation and so on; give support for tactics and strategies;
provide a platform like BBS on which customers can write marketing suggestions,
problems with the system.
Telemarketing
Liu (2007) believes that technology staffs use the system to create a phone list and
establish connections with the customers, contacts and business, then allocate
numbers to the salesperson to record the phone details.
Customer service
Professor Osarenkhoe (2007) emphasizes that customer service is an important
function of e-CRM. Company staff enters service items, plan of service programs,
search and trace relevant events, order management and trace, database of problems
and solutions.
Call centre
The main functions of call centres include: Inbound and Outbound Contact Solution;
Internet callback; call centre operation management; telephone transfer; routing,
report statistical analysis; management analysis tools; automatic information transmit
through fax, telephone, e-mail and printer; inhale and exhale dispatch management
(Osarenkhoe, 2007).
Knowledge management
Personalized information is shown on the web sites. According to professors
Kimiloglu and Zarali (2009), documents are attached to contacts, customers and
event summaries. Technology staff can also monitor their competitors‟ websites and
changes in the sites with keywords that the users define.
15
Business intelligence
With e-CRM, staff can make predefined query and report, user custom query and
reports. Income that may be brought by potential customers and business can be
viewed in report or diagrammatic form. Potential customers and business pipelines
are analyzed through predefined chart tools. Data is diverted into third-party predict
and plan tools, column and pie chart tools, system status displays and early warning
(Negi, 2005).
Electronic business
Personalization interface, service, web content management, storefront, order and
business processing, sales space expand, customer self-service, analysis and report of
network station operational aspects (Negi, 2005).
2.4 Impacts of e-CRM on traditional enterprises
With the rapid development of e-CRM, many companies find that when customer
demands become the core of business flow, discordances exist in many places of the
business operation. These discordances interfere with the efficiency of e-CRM.
Petrissans (2006) indicates that e-CRM makes organizations change their mode of
thinking from Contact Point. Innovations are occurring at a bewildering rate so that
traditional companies experience huge shocks.
2.4.1 Impacts from marketing
In the past, customers can only listen to product introductions passively. As long as a
unique product image can be built through advertising promotion, the products can
become the hottest commodities. There is no need for companies to consider the
special needs of each customer. Frequent advertisement on television and in
16
newspapers can help to build and keep their own brand. However, Taylor and Hunter
(2008) states that the mode has changed that this way cannot achieve
competitiveness efficiently. They suggest that companies can carry out one-to-one
marketing to appointed customer groups who become active. Less cost is spent and
good performance can be achieved.
2.4.2 Impact from Competitors
The American Northeast Air Line used to be a big scale aviation corporation, which
possessed several air routes and fixed assets. However, it declared the company
bankrupt in the 1980s. The bankruptcy is not on account of customer service or other
reasons, but because, when other airline companies adopted a computer information
system that made tourism agents real-time remote inquiry, issue ticks and change
flight schedule, NEA did not do that. They found that they could not compete with
other flight corporations. Their competitors provided a discount for the customers
timely or notified customers when changing flights in order to maintain the rate of
full vacancy. However, NEA still operated with costly long distance calls. It was too
late when they decided to invest in a ticket booking system (Mckay, 2008).
2.4.3 Impacts from the Interior Company
Letaifa et al (2007) believe that not only new type network enterprises like Amazon
but also traditional enterprises are devoted to networked transformations, internet
customers require both information interchange and Products and Services.
Organizations are required to make the business flow to match current customer
information on manufacture, transport and after-sales service. Customers who
communicate with companies through the internet and telephone always have no
patience. Rapid reply to e-mails, instant information enquiring and promptly update
changes are important.
17
2.4.4 Impacts from technology
In order to satisfy users while keeping low costs and high efficiency, companies have
attempted many methods, including market segmentation, customer feedback,
designing an adjustable pipeline and applying automatic control technology and so
on. However, till now, no striking effects have been achieved. Osarenkhoe (2007)
believes that the main reason is that the discrepancy is too large. In order to make
products and services entirely suitable for customers, it is necessary to process
continual and rapid one-to-one information interchange. With the development of the
internet and e-commerce, e-CRM is established and develops rapidly. An increasing
number of organizations implement e-CRM.
2.5 Strategies for implementing e-CRM
Electronic strategy plays a significant role in implementing e-CRM. To a great
degree, companies‟ competitive advantage in the context of B to B e-commerce
depends on the degree of understanding of customers and competence regarding
customer demands. In the e-commerce and Internet Economy Age, it is important for
companies to have good relationships with their customers. However, Brochure
(2008) states that owing to the increasing number of enterprises using E-CRM for a
huge client base and huge amount of service, a bottleneck exists during the
communication between customers and companies. Levisual(2002) indicates that the
main channel of e-commerce is network transactions. Each click on emails and web
sites, each deal or search on self-help equipment are all valuable potential
information resources and can be used to serve and find customers.
Another personalization strategy is emphasized by Wu, Z. & Feng, Q. (2005). He
believes that e-CRM helps companies to obtain real-time understanding of customer
18
needs, do one-to-one marketing with different customers and support one-to-one
service through the segmentation of customer groups. It aims to encourage customers
to accept products and services in order to achieve sustainable purchases.
However, Wang, Y. Z. & Chang, X. Q.(2006) state that a customization strategy
contains more content than an electronic system personality. It means that companies
can make use of e-marketing tools to budget their marketing mix. In this way,
companies can adapt to the demand of target groups, and even reach the individual
level. The tools contain customized word information and, what is more, it contains
an electronic method and distribution method. Comprehensive and thorough
customers acquire and subsistence analysis can help companies to design different
marketing mixes for different target customers. Internet customization happens to
small target customers or a personal level and may inspire customers or enterprises‟
initiative. The key point is to identify customer demands and make use of automatic
electronic marketing tools to satisfy these demands effectively and efficiently.
E-commerce is essential for companies to survive in the new age. According to the
kinds of e-CRM marketing strategies, companies provide problem support that is
personalized and needed to be answered immediately. By this way, enterprises can
achieve overwhelming competitive advantages that are customer-oriented long-time
customer relationship.
2.6 Implementation of E-CRM in SMEs
E-CRM has been implemented by a large number of companies. However, not all
projects are successful. Researchers have proposed plenty of methods to make
e-CRM work.
19
2.6.1 Establishing a Rational Program Implementation Goal
Malhotra (2006) suggests that the implementation of e-CRM needs a definite
perspective plan and recent goals, which is made in terms of not only the in-company
situation and actual management level, but also requirements and challenges from
the external market. There is no exact method that can help enterprises obtain this
goal easily. While making purposes, enterprises should consider in terms of long time
plans and obtain the identification of the in-company service-wide.
2.6.2 Understanding and Support of the Senior Manager
Duke et al (1999) states that it is important to obtain the senior manager‟s
understanding and support, because, during the process of implementing e-CRM,
greater manpower, physical and financial resources are needed, so a lack of
manager‟s support will lead to a shortage of investment.
2.6.3 Drive E-CRM Program through Business
The implementation of e-CRM can be driven by company business. Wang (2008).
Believes that e-CRM system is aimed to establish a set of customer-oriented sales
service systems. IT technology provides technology probability for the
implementation of e-CRM systems. However, the real driving force is rooted in the
business itself.
2.6.4 Control Change Effectively
Inevitably, project implementation may change the operation flow; meanwhile,
influence staff position and responsibilities, even lead to the adjustment of the
20
organization‟s structure. How to make relevant departments and staff identify and
accept the change is a serious challenge for team leaders. Reilly & Paper (2009) state
that the implementation of a new program should consider training the service-users
and making external administrative provision, which are used to coordinate the new
progress. All the content should be listed in the scope of change management.
2.6.5 Establishment of Program Implementation
Organizational Structure
Program members consist of internal members and external implementing partners.
Kotler, P. (2006) suggests that training service users and setting out relevant external
management stipulations should be taken into account. He also indicates that project
members should be chosen cautiously, and they should be familiar with a firm‟s
current operation and have the right and authority to project flow. In addition, they
should work full time and participate during the whole project.
2.7 Advantages of E-CRM Implementation to
Organizations
2.7.1 Customer Satisfaction
For companies, they hope that customers keep purchasing and consuming on their
own. Scott (2000) indicate that customer satisfaction plays a major role in the
problem of whether the company can maintain customers. Weinstein and Johnson
(2006) define customer satisfaction to be customers‟ perception of the company‟
products and services. The following factors are the main advantages that many
researchers believe.
21
Payment equality
Liu & Wang (2008) believe that increased payment equality causes higher customer
satisfaction. Once customers consider that the price of products or service is equal, it
will influence their assumption about other products or services. Positive
assumptions make customers believe that more products and service purchases will
lead to more personal utility. Less payment can purchase more products.
Customer satisfaction
When people feel more satisfied with products or services, customer satisfaction will
increase. Customers consume in the current company, which means they will lose the
purchase opportunity in other companies. Cochran (2004) states that the different
value between utilities that the customers achieve in the current one and the utilities
that they achieved in other competitive companies defines customer satisfaction. In
the situation of positive value, customers may try to keep the relationship with the
current company. However, Chen (2007) believes that in the situation of negative
value, customers may try to transfer to other companies. While the value is zero,
customers may decide to adopt an attitude of wait and see, in which companies
should attempt to improve the service quality or decrease the prices in order to
increase customer satisfaction.
Experience effect
Fox & Gregory (2005) state that increasing experience helps to improve customer
satisfaction. Usually, customers who have a long time relationship with companies
have positive customer satisfaction and payment equality. Meanwhile, a long term
positive customer perception makes customers have a positive evaluation of
enterprises. However, Meng (2008) states that, when customers have a long term
relationship with companies, it is possible that either the customer satisfaction or
payment equality is positive. In this situation, increasing customer satisfaction and
payment equality will improve customer utility in the company; external company
competitors increasing their service quality will lead to a loss of customers.
22
2.7.2 Customer Loyalty
Taylor & Hunter (2002) define customer loyalty to be the inner perception that is
relevant to customers‟ behavioural model and attitude model. He defines customer
loyalty in detail that customers have an attachment to the products and service. It is
expressed through Emotional Loyalty, Behavioural Loyalty and Consciousness
Loyalty. A customer who has high loyalty to the enterprise brand will tend to
purchase the products of this company and take the attention of more loyalty to this
company. He will have a certain loyalty premium that is the degree to which he is
willing to pay more for like products than other companies. Szwarc (2006) believes
that higher customer satisfaction will lead to higher customer loyalty. When
customers have positive payment equality, higher customer satisfaction and more
experience, they may give rise to brand loyalty and prefer to pay the price premium.
On the contrary, when customers have a negative evaluation of the company‟s brand,
they may prefer to buy the competitors‟ products. Therefore, there is a positive
correlation between customer loyalty and customer satisfaction.
2.7.3 Customer Retention
Companies want customers to keep a business relationship with them. Kelley et al.
(2005) indicate that the following three reasons cause customer retention. Firstly, the
products of other companies cannot satisfy the customers‟ special demands or
preferences. Secondly, the conversion cost if customers leave this company for
others. Lastly, the competitors have no capability of providing products with higher
utility. All the reasons above can come down to high customer loyalty. Therefore, a
customer who has high loyalty is more likely to be maintained in the current
company. However, SB Lombardi and Passino (2007) state that not all customers
who have high loyalty can keep a relationship with the company, because the
23
customer‟ purchase behaviour has a certain lifecycle. Once customers have satisfied
themselves with their consumption desire, no matter how high their customer loyalty
is, they will quit. However, on the whole, customer maintain is positively related to
customer loyalty.
To sum up, the client mode can be described as: higher customer satisfaction high
customer loyalty customer retention (repeat purchase); low customer satisfaction
low customer loyalty customer loss.
2.8 Advantages to organizational business performance
Reduce cost and increase revenue
Ranjan & Bhatnagar (2009) state that e-CEM helps sales and marketing process
automation, which leads to the great reduction in selling cost and marketing expenses.
Owing to the high interaction between companies and customers, an accurate client
position is achieved, which makes companies spend less on keeping old customers
and obtaining new customers. Involved in increasing revenue, Raab et al (2008)
believe that the organizational staff have grasped an amount of customer information
and potential demands that helps bring extra new revenue sources. Besides these,
because of the usage of e-CRM, companies have a closer relationship with their
customers, in order that the amount and frequency of orders increases. Fewer
customers will be lost.
Increase business operational efficiency
Dimitriadis & Steven (2008) insist that the usage of e-CRM helps to realize
in-company information sharing and increase business flow automation. By this way,
the time of the business process has greatly declined; the task of the staff has been
simplified as well. Therefore, each business in and out of the company runs
effectively that helps to guarantee that customers achieve the most satisfactory
24
service with the least time and fastest speed.
Develop new markets
E-CRM has the capability to predict and analyze marketing activities and saleroom,
provide the cost of relevant products and services at a different angle, and predict the
change in customer distribution and market demand trend in order to grasp the
market chance effectively (EC-Council, 2006).
2.9 Customer Value
The kinds of benefits have been illustrated in the previous part. However, it needs
people to pay the price. Both the benefits and price have different concepts from
before. Customer value in the Internet Age has changed already.
2.9.1 Importance of Customer Value for E-CRM
In the 21st century, enterprises have changed from the traditional extensive
management style that orientates products and scale into a customer-oriented
intensive management style where a good customer relationship is an important
source for firms to survive and develop. Kevork & Vrechopoulos (2009) indicate that
the core of customer relationship is value. During the whole life cycle of customer
identifying, maintaining and developing, the evaluation of value is always the core
problem. The major feature of e-CRM is the attention to long period value. CRM
emphasizes a long period interactive relationship between enterprises and customers
in order to achieve win-win for the customers and companies.
25
2.9.2 Definition of customer value
Different researchers state the definition of customer value from different
perspectives and try to apply them in practice. Generally, three research guides exist
during the study process.
In the 1990s, creating and transferring excellent customer is paid more attention.
Under the strong market-oriented strategy, this theory matches the environment that
companies appeal for more attention to the market. It emphasize that customer value
has a close relationship with enterprise profitability, performance and competitive
advantage. Anton & Philonenko (2002) state that customer value is the net profit that
refers to the value of product purchase except all costs. Once customers can gain
more net profit from the company products than from the competitors‟ products,
customers will buy the products of this company and feel satisfied. This definition
makes us understand well about how to make good use of the importance of the
customer view and a market-oriented as well as market-driven strategy to develop
and create outstanding customer value.
Another research guide is perceived customer value, which considers customer value
to be subjective and change with different customers (Weinstein and Hohnson, 2006).
For the same product or service, different customers will have different values. The
same customer could cause different expected values under different usage
environments. Fotouhiyepour (2008) states that people have limited their
understanding of customer value into the characteristics of products and services. He
gives a more comprehensive definition as the preference and evaluation of purpose
and intention perception, which are reached for product characteristic, function and
usage result under certain usage environments.
It is similarly important to study customer value for enterprises so that different
customer groups can provide different potential profitability. Fink et al. (2008)
26
indicate that, during the process of companies‟ creating and transferring value to
their customers, customers perceive the differences between gains and loss so that
they give an overall evaluation of the products, services and relationship function.
However, Porter (2006) states that in the context of technology-based service,
customer value is defined as customers are able to make use of the system to
complete their tasks and the overall satisfaction during the usage process.
2.9.3 Evaluation of Customer Value
Sterne (2008) indicates that the most immediate method to evaluate customer value
is evaluating the profits of particular customers. For one product, the value is
achieved through the same customers‟ purchasing behaviour and their behaviour that
customers recommend the products or service to others.
Most companies may find that customers with different categories may bring more
value, including revenue, profits and recommendation. Xu et al (2003) indicate that
customers can be classified according to statistical information, like age, gender,
employment status, educational status, and business location and so on.
2.10 Customer Analysis in e-CRM
Having illustrated the factors related to e-CRM, customers as the core of the system
should be analyzed according to the previous factors. The process of customer
classification can be provided as follows.
27
2.10.1 Definite Rewards and Penalties of Project Personnel
It is important to make a system of rewards and penalties for project members.
Scullin, S. (2002) advises that it is necessary to have a clear definition of the division
of duty, making clear personal assessment objective. Rewarding outstanding staff
and punishing staffs that cannot complete tasks should be adopted.
2.10.2 E-CRM Customer Analysis Basic Flow
In the context of e-commerce, the distance between enterprises and customers has
shortened greatly so that companies have to face great amounts of customer data.
Meanwhile, the internet has the characteristics of convenience, real-time and
interaction, and provides an effective method for companies to collect detailed
customer data (Sophonthummapharn, 2009). Under this situation, it is important to
identify customers precisely, and differentiate different customers from customer
groups. Customers are divided into a variety of significant levels or catalogues and
are provided with their required products and services so that the limited resources
are allocated rationally.
Lovelock, C. (2001) has surveyed that customers remain a significant influence for
company profit. Once the rate of customer remain increases by 5%, about 25%-85%
of the company‟s average profits will increase. However, Lawfer (2006) states that
28
customers have more choices; customer loyalty is decreasing in the context of
e-commerce. Huge attacks on traditional marketing strategy and customer ideas exist.
Therefore, in terms of the result of customer segmentation, the focus of marketing
should transfer from the development of new customers into existing customers who
have value for enterprises. Analysing the drain trend of these customers, increasing
their satisfaction and attempting to achieve customer loyalty is the second step for
enterprises to manage customers.
Under this internet environment, there is an increasing number of contact points and
communication channels between companies and customers so that firms have more
choices to understand customers‟ preference and purchase behaviour. Companies
have the ability to satisfy customer demand and potential demand, and carry out
increment sales and interselling. In this way, companies can increase their value and
loyalty. Therefore, maximum profit can be achieved, that is the final purpose of
managing customers.
2.10.3 Customer Classification in E-CRM
2.10.3.1 Index Classification method
In order to carry out e-CRM, companies have to classify existing customers, through
which one-to-one customer service system and differentiated marketing is carried out,
in order to guarantee the achievement of the marketing goal. Different classified
methods exist nowadays. Stone and Jacobs (2008) consider income as a major index.
Take a medium sized transport company as an example. This index is based on the
annual transport amount and identifies customers from the traffic volume. For this
company, customers whose annual transportation revenue gross is over 5,000,000
RMB are considered to be large clients; customers who have 1,000,000-5,000,000
RMB are considered to be medium clients; customers who have 500,000-1,000,000
29
RMB are considered to be small clients; and customers who have less than 500,000
RMB are considered to be sporadic clients.
However, Taylor and Hunter (2002) consider financial condition to be more
important. It classifies customers according to international standing creditworthiness.
Four levels are concluded: best, better, good and weak. Except for these, other
companies are classified as disreputable.
2.10.3.2 Type combination classification
Involved in a company‟s real operation, the type of combination classification
method plays a more important role in the practical operation.
Combination of customer loyalty and credit rating
Szwarc (2006) states that four kinds of customers can be classified through
Standing level
Capital recovery
situation in 24
months
Longest payment
cycle /d
Credit rating
A 90%-100% 45 Best
B 90%-75% 75 Better
C 75%-60% 105 Good
D 60%-30% 255 Not good
E 30%-0% >270 Disrepute
Graph 2: Finical condition index
30
combining customer loyalty with credit rating: low credit rating-low loyalty client,
low credit rating-high loyalty client, high credit rating-low loyalty client, and high
credit rating-high loyalty client.
Porter (2006) defines customer loyalty as the confidence level and acceptance level
that clients have for a company‟s products or service.
He believes that the first type of client has no development potential or much higher
development costs. Even though we do not consider the development trouble and
cost, the company has rare guarantees to recover costs. Therefore, little consideration
should be given to this kind of client. The second kind of client can be called „a
dangerous client‟, that is they like the products and service; however, they do not
want to pay the related payment for the products and services. The third kind of
client is the major customers. If companies can develop this kind of client, it will
bring much more benefits for companies. The fourth clients should be the first choice
when companies want to develop customers. Companies should take effective
measures, which may help to inject new power for company development and
maintain the company‟s earnings.
Combination of customer loyalty and customer scale
On the other side, Peenlen (2006) states another kind of classification method; that is,
the combination of customer loyalty and customer scale. Small scale-low loyalty
clients have little value for companies. Not only would plenty of manpower and
physical resources be needed, but also a long time should be spent. What is worse,
the results cannot be satisfactory, while for small scale-low loyalty customers, they
make a contribution to company development. The third type of client, big scale-high
loyalty customers, are the companies‟ first choice, because they have much more
demand for products and services. Besides this, big scale customers have good
demonstration effects. They usually have strong economic power. The last one, big
scale-low loyalty customers, is unsteady. However, fewer extension workers are
31
needed during the early stage of development. The average development cost is
relatively low, which is to the benefit of companies‟ development work in the initial
stage.
Combination of credit rating, customer scale and customer loyalty
A much more detailed classification method is mentioned by Negi (2008). Credit
rating, scale and loyalty are all considered together. Eight types of client exist: 1.
high credit rating-big scale-high loyalty; 2. high credit rating-big scale-low loyalty; 3.
high credit rating-small scale-high loyalty; 4. High credit rating-small scale-low
loyalty; 5. Low credit rating-big scale-high loyalty; 6. Low credit rating-big
scale-low loyalty; 7. Low credit rating-small scale-high loyalty; 8. Low credit
rating-small scale-low loyalty. According to this kind of classification method, it is
much easier to make out rational management methods.
Combination of customer value and customer loyalty
Customer crediting and customer scale belong to customer information. In terms of
the description of customer value above, customer information is one factor of
customer value. Another customer classification method is proposed by Negi (2005)
that is a combination of customer value and customer loyalty. 4 basic categories are
grouped as presented in the following figure:
A refers to high loyalty and high value customers; B refers to low loyalty and high
value customers; C refers to high loyalty and low value customers; and D refers to
low loyalty and low value customers.
32
Lawfer (2006) defines best customers are defined as customers with high loyalty and
high value. For these customers, a company can spend cost and resources on
obtaining, maintaining and improving their high value, which is helpful in achieving
more benefits.
Customer classification plays an important role during the operation of companies. In
terms of the different type of customers, companies can take different measures to
manage different client groups.
2.11 Performance Evaluation of E-CRM System
Sheth et al. (2001) states that performance is an important index for organizational
business activities. The acquisition of enterprise performance means not only an
increase in income, profits and performance; but also reduced costs and expenditure,
and the efficiency of business operations. Not only does the number change but also
the relative ratio should be paid attention to to measure performance.
Enterprises establish e-CRM system with huge investment in order to solve the
problems they are facing and achieve competitiveness. Ranjan & Bhatnagar (2009)
considers performance evaluation of e-CRM is defined to be self-criticism and
evaluation for the performance of e-CRM implementation. It covers the initial
conclusion for the implementation of e-CRM, the future prospects of e-CRM in
business operation, and a serious of contingency questions about modification and
perfection.
The CRM system may bring long-term and analyzable true earning. In terms of
Fortin (2006), 10% of returned customers can bring 10% profit for the company;
while an increase of 10% investment that aims to attract new visitors can only help
33
the company to increase the value by 0.7%. Besides this, the cost of developing one
new customer is six times more than keeping one old customer. Therefore, it is not
enough to consider earnings, market share, and new product income as the
measurement criteria. More attention should be paid to customer share, revenue mix,
customer satisfaction, and the time spent on customers and customer participation.
During the performance evaluation of e-CRM, companies should compare the
performance achieved, objectives and performance indicator after e-CRM
implementation not only with past performance and profitability, but also with
possible future performance.
In addition, performance evaluation could facilitate the promotion of e-CRM
implementation. Because after the implementation of e-CRM, enterprises and experts
will evaluate the implementation performance of e-CRM program so that the internal
staff and decision-making level realize the effectiveness of e-CRM. Managers may
support the program; staff may consciously make use of the e-CRM system to
achieve maximum investment return.
Key indicators
Dyche (2004) states that e-CRM is implemented to increase customer satisfaction
and achieve high customer loyalty. Therefore, when evaluating e-CRM performance,
the two key indicators are customer satisfaction and customer loyalty.
Evaluation of customer satisfaction
Customers compare the perceived feeling to certain products or service with their
expectation, the feeling of pleasure or disappointment formed, which is considered to
be customer satisfaction (Cochran, 2004). Customer satisfaction can be considered to
be a variation between the perceptible effect and expectation. If the former is lower
than the latter, customers may feel dissatisfied; if the former matches the latter,
customers may feel satisfied; if the former is higher than the latter, customers may
34
feel highly satisfied. Companies should try their best to please the customers in order
to achieve high satisfaction, because customers with general satisfaction may switch
product suppliers once they find better or cheaper products. Only customers with
high satisfaction usually do not switch supplier. Customer satisfaction can be
evaluated through the following process.
Firstly, internal research and evaluation should be done for the internal department
and staff in order to analyze and evaluate customers in the company. The tasks that
should be completed include: (1) what is the result about customer satisfaction
self-evaluation in the company, including successful and unsuccessful factors, and
required improvement, and overall evaluation? (2) What factors influence customer
satisfaction from the view of the company? (Li, 2007)
Secondly, an interview survey for customers is indicated by Lawfer (2006). He states
that discussion and interviews for representative clients can be adopted to know
about the factors they think can influence customer satisfaction. Customers‟ opinions
are compared with the companies‟ view to search their commonality. The main
purpose is to excavate new factors that influence customer satisfaction.
Thirdly, Malhotra (2006) states that sample survey is adopted to know the evaluation
of customer satisfaction that customer have of the companies, identifying
representative indicators that influence customer satisfaction and retest the indicator
in order to find out more valuable indicators for the tasks.
However, the process of the second and third steps may not be the fittest methods.
After knowing the basic information of the implementation of this company, surveys
for customers can be done next. After that, the findings of the survey can be sent to
the company for managers to know about the customers‟ opinions.
Finally, a quantitative survey should be done based on the first three processes to
35
identify quantitative criteria and quantitatively measure customer satisfaction.
Extensive surveys for customers are needed (Malhotra, 2006). Through evaluating
the current situation of customer satisfaction, companies‟ advantages and
disadvantages are found.
Through the above four processes, we can basically know about the customer
satisfaction situation of the company. In terms of the importance of each factor and
current customer satisfaction for this company, the factors of customer satisfaction
can be divided into four parts expressed in the coordinated system below:
Strengthen Maintain
Ignore Develop
Figure 3.9 Factors that influence customer satisfaction
For the factors in maintenance distinct where both customer satisfaction and
importance are high, the company should pay attention to maintaining the existing
situation and developing it opportunely to make them become their advantages and
knockout products.
For the factors in intensive distinct where there is high importance and low customer
satisfaction, the company should treat them specially.
For the factors in development distinct, where there is high customer satisfaction and
low importance, the company should make use of the factors‟ advantage and develop
them deeply in order to make them become maintenance distinct.
For the factors in ignore distinct where both importance and satisfaction are low,
imp
ortan
ce
Customer satisfaction
36
there is no need for companies to pay attention and the factors can be ignored (Porter,
2006).
High customer satisfaction may lead high loyalty; low customer satisfaction may
lead to low loyalty. It is very important to evaluate the factors of satisfaction.
2.12 Development of e-CRM in China
Due to the development of network technology, e-CRM has been increasingly
implemented all over the world. However, according to Sampon (2004), it states that
owning to the late adoption of the e-CRM market, the whole market system is not
completed in China in terms of product mix, domain structure, industrial structure
and marketing channel. It reports that the e-CRM market areas mainly focus on
developed areas like Bejing and Shanghai. Industries of High degree in
Informationization like post and telecommunications, and finance are the key fields.
On the contrary, traditional companies that play a major role in Chinese DGP to take
a small percentage of the e-CRM market. Few domestic manufacturers can provide
comprehensive e-CRM. Some can only provide several application modules or
modify them based on some modules in ERP.
Wen (2009) states that along with the popularity and deepening of e-commerce, the
problem of the high abandon rate and low loyalty has directly contradicted the
amount of growth in business transactions. To some extent, the stand or fall of
e-CRM decides whether ecommerce is successful or not.
Fortunately, with the rapid growth of the economy, the Chinese e-CRM market is
developing and expanding, which produces a great commercial opportunity. It has
become the focus of investors, software development firms and users. Kolter, P.
(2006) indicates that China will have an extensive e-CRM market prospect.
37
Chapter 3: Methodology
3.1 Introduction
The literature review of e-CRM has been illustrated in the last chapter. It provides the
foundation of the whole research. The definition of e-CRM, characteristics and
functions of e-CRM, strategies and implementation of e-CRM, advantages of e-CRM,
and performance evaluation is provided. Finally, the development of e-CRM in
China is discussed.
This chapter will present the methods that are used to address the objectives and
solve the problems mentioned before. It is not enough only to use the inductive or
deductive approach. A combination of them should be adopted. This research will
discuss and analyze this topic in terms of both the literature review and the situation
of Xiwang Company. The author will analyze the current situation of e-CRM in this
company, and find out the factors and methods for solving the existing problems.
A small-scale questionnaire survey was designed in terms of the objectives of this
research. E-mail was used to send the questionnaires. In addition, an interview with
the company manager was done to supplement the questionnaire. Thus, both the
quantitative approach and qualitative approach are adopted.
3.2 Research Theory
In order to study the topic effectively, both inductive and deductive approaches were
used as the two broad methods in this paper.
Deductive theory represents the commonest view of the nature of the relationship
between theory and social research (Bryman, A., 2004). For instance, „there is
38
positive correlation between customer loyalty and customer satisfaction‟ is the
general theory. Such theories are presented several times in this paper. Its
characteristic is from general theory to an individual topic, so that a new conclusion
is derived. The advantage is that it applies recursion based on basic discipline with
strict logic. However, because it limited the scope of the research, the role of basic
law cannot be expressed. The deductive approach is usually associated with the
quantitative approach. The process of deduction is described in Figure 4.1. The last
step may be in the opposite direction from deduction. For instance, according to the
data analysis, the findings are not the same as those presented in the literature.
Figure 4.1 The process of deduction (Bryman, A., 2008).
Inductive theory uses the grounded theory approach to analyze the data and generate
theory (Bryman, 2008). In this paper, in terms of the data analysis from the
1. Theory
2. Hypothesis
3. Data Collection
4. Findings
5. Hypotheses confirmed or rejected
6. Revision of theory
39
questionnaire and interviews, some theories may be produced. For instance, some
factors may influence customer satisfaction, such as product quality, customer
service, payment quality, delivery and personal interaction. Through collecting and
analyzing data, certain theories could be formed. It can express the basic law and
common character; however, it may lead to imperfect inductions. Therefore, a
combination of the deductive type and inductive type is applied.
3.3 Research Design and Strategy
3.3.1 Introduction
In the case of Xiwang Company, in order to study the implementation of E-CRM
based on customer value, both the quantitative approach and qualitative approach
were used. All of the methods were aimed at answering the research questions of this
case.
Two research questions were mentioned:
1) What percentage of the organization‟s customers are online customers? And what
are the customers‟ perceptions of the company‟s e-CRM programme?
2) What factors can help managers to strength the development of the e-CRM
programme related to customer loyalty and customer satisfaction?
Besides these, the background of Xiwang Group should be considered, such as the
levels of customer orders, company scale, and the percentage of electronic business
of the whole business, the managers‟ willingness to implement e-CRM, and so on.
All of this information was connected with the implementation situation of e-CRM in
this company.
40
3.3.2 Research strategy
Quantitative research tends to involve relatively large-scale, representative sets of
data, and is viewed as a gathering of „facts‟. It studies the relationship of one set of
facts with another and focuses on the individuals‟ perceptions of the world (Bryman,
2008). In brief, it emphasizes the quantification in the collection and analysis of data
and embodies a view of social reality as an external, objective reality. Here,
according to the questionnaire for customers, the data is collected. Data here are
considered as „facts‟. The relationship between different data reflects certain social
reality, such as the factors that influence e-CRM success.
However, qualitative research is concerned with collecting and analyzing information
that is chiefly non-numeric. It tends to focus on exploring, in as much detail as
possible, smaller numbers of instances and aims to achieve „depth‟ rather than
„breadth‟. It is process-oriented (Bryman, 2004). Interviews were used in this case
since some information, but it was non-numeric, about e-CRM is mentioned. This
was done when all the findings are completed. The managers‟ thinking was given
after considering the findings.
Some similarities between qualitative and quantitative research are that both of them
may be used to test theory as well as generate hypotheses and theory. Besides,
qualitative data often include quantification, such as more than, less than, most, as
well as specific numbers. Quantitative research approaches data through open-ended
questions.
Without proper qualitative research, quantitative research may lose its orientation.
However, if only qualitative research is emphasized, but quantitative research is
ignored, it must be difficult to master the change in value overall and truly. Therefore,
a combination of these two research strategies, which is defined as mixed
methodology, may help to study the case more precisely and accurately.
41
In terms of purpose of this study, which is identifying the key issues relevant to
e-CRM and B2B e-commerce based on customer value, and determining how to
improve it in terms of evaluating the company‟s current efforts and problems during
the implementation of e-CRM in Xiwang Company, and in order to answer the two
research questions, mixed qualitative and quantitative research was applied. Bryman
(2004) indicates that reliability, replication and validity are three of the most
prominent criteria for the evaluation of social research. He states that reliability is
concerned with the questions of whether the results of the research are repeatable.
The same questionnaire for 100 different customers illustrates whether a variety of
customers observes or explains the same thing in the same way. Besides this, all of
the samples are selected randomly, which enhances the reliability of the survey. The
study results can be repeatable. Therefore, it involves reliability and replication. In
addition, the E-CRM survey can reflect the customers‟ feeling and the facts of
e-CRM implementation while doing business with Xiwang Company. There are three
concepts that should be measured: customer loyalty, customer satisfaction and
customer preference. All the measures really represented the topic of the study. For
instance, the evaluation of the relationship between customer loyalty and customer
satisfaction may reflect the problems when implementing e-CRM. Qualitative
research enhances the depth of the research and makes it more rational.
3.4 Methods of Data Collection
Data collection refers to a process of preparing and collecting data (Robson, 2001).
The purpose of data collection is to obtain information, make decisions about
important issues and pass information on to others. Involved in this paper,
information about e-CRM was obtained from both customers and managers, which
might help to obtain relatively comprehensive information. Two types of data were
used for market studies that are primary data and secondary data. When doing the
42
study, all the data should be current, relevant, accurate, and conceptually correct.
3.4.1 Selection of the case
Xiwang Company, which implements e-CRM, was chosen as the case for this
research for the following reasons. Firstly, customers who did business with this
company online constitute almost 80% of all the customers. In customer-oriented
marketing, it is important to satisfy the customer. Secondly, in 2002, this company
began to carry out information planning. Till 2008, the implantation planning of
e-CRM rose and is now in its initial stage. Some problems and difficulties existed.
For instance, some managers questioned this programme, since not enough senior
managers supported it. Besides this, the company was dissatisfied with the earnings
and profits achieved after the implementation of e-CRM. Although they had
implemented e-CRM, some problems also arise, such as insufficient customer
retention and satisfaction. Xiwang Company is a typical example and it needs to be
studied in order to achieve a competitive advantage and earn more profits.
3.4.2 Survey Sample
If the topic is restricted to one institution, it is necessary to select a sample (Bell, J.,
2005). A sampling survey refers to the process of selecting populations or
organizations from a population who will be studied so that the results of the
sampling research is considered to be the reference for the decision making (Bell,
2005).
Probability-sampling was used in this case, because, through this kind of sampling,
each sampling unit of population had the same chance to be selected as the sample,
and so it is objective and rational. The company has established a set of customer
information systems. All of the contact details could be found from this system.
43
Considering that not all of the respondents were willing to complete the
questionnaire, plenty of copies have been distributed. Appropriately 150 copies of the
questionnaire were delivered to the customers by e-mail. The total target population
is 100.
3.4.3 Secondary Data
Secondary data was collected by the company in person through scheduling and
processing the data. It was collected for certain purpose but not the present problem,
including data provided by commercial and government agencies, the marketing
research company and the company database (Robson, 2001). It can provide an
economic and efficient background. Involved in the study of e-CRM in Xiwang
Company, secondary data was collected from the company website, such as the
company history, main market, products and services, and so on. In this way, I know
that the company is suitable to be studied. Through the report of the company, I knew
that it already had several years of history of e-CRM implementation, and it was still
not perfect. This information might assist with analyzing the topic. The advantage of
secondary data technology was that it saved time and reduced costs. Besides these, it
could help us to know about the research object and market position, which was
considered to be the foundation of obtaining other data. However, because secondary
data can have different sources, such as project reports, study designs, samples and
so on, the researcher did not participate so that it is difficult to evaluate the accuracy
of the data. In addition, secondary data is not current data. The publication time is far
later than the collection time. Market surveys usually need current data. In order to
gather data that are more valuable, the primary data technology was used.
3.4.4 Primary Data
Primary data was gathered by the researcher. Interviews and questionnaires were
44
used to collect the data for this study. The reason for choosing primary data
technology is that it can answer detailed questions that secondary data cannot answer,
such as the level of satisfaction, importance of e-CRM function, and so on. All of
these data should be collected through questionnaires for customers. Data about the
implementation situation of an E-CRM programme and the company‟s attitude
towards this program were collected from an interview with the manager. Data was
collected to suit the purpose and research objective, that is to identify the key issues
related to e-CRM and determine how to improve it. In the questionnaire, several
types of primary data was involved, such as demographics (age, sex, education level,
occupation), business activities, attitudes or opinions (preference, views, feelings),
intentions (planned or anticipated behaviour), behaviour, and so on. Communication
methods were used to collect the data. Primary data was gathered timely and
credibility. It was used as the main technology in this case.
3.5 Questionnaire
In order to identify the problems in implementing e-CRM from the point of view of
the customers, the questionnaire was designed. The quantitative approach was
adopted to collect and analyze data from the questionnaire. An analysis of the data
obtained from the questionnaire was primary research.
Defining the objectives of the survey
Defining the objectives of the survey is important when designing a questionnaire. In
the case of the Xiwang Group Company, the objectives can be listed as follows. In
order to investigate the implementation situation of e-CRM in Xiwang Group Co.,
Ltd, and better understand the relationship between the customer value obtained from
an e-CRM programme and e-CRM success, the questions were designed in two parts
to evaluate them, including customer satisfaction and customer loyalty. All the
questions were relevant to the objectives mentioned above, so it might be better to
45
classify the questions in terms of different focuses, such as the respondents‟ details,
recognition of e-CRM, and application of e-CRM. The questions were simple and
easy to understand. For example, „which of the features do you think is easy to use?‟
The features included the site map, local search engine, payment methods and so on.
Method of implementation
According to the situation, whereby the questionnaire should be sent to China from
the UK, e-mail was considered to be the main channel, which was suitable for an
international survey owing to the popularity of computers. It is cheaper than a postal
survey; quicker than telephone survey. Automatic data collection made the evaluation
free of the impact of the interviewer. An explanation of the questionnaire should be
given, which helps customers to understand the questionnaire‟s purpose and makes
them willing to respond to it. During the process of questionnaire distribution and
return, some disadvantages existed. The lack of a uniform e-mail address directory
made the survey difficult. Some questionnaires were returned later than the expected
period, and some were not even returned. Although some preparation work has been
done in order to complete the questionnaire efficiently, it can only reduce the errors
and cannot remove them totally.
Constructing the questionnaire
Closed questions with a vertical format are the main type of question; 19 out of 25
questions are this kind of question. Take the fifteenth question in section B as an
example:
46
The reason why I chose the vertical format is that it can more clearly distinguish
questions from answers. Through the judicious use of spacing and print variation, it
can not only make answers clearer, but also represent significant considerations.
What is more important, they are probably easier to code, especially when the
questions are pre-coded. Inevitably, a vertical format will take up too much space.
Regarding the answers, both multiple choice and single choice were provided so that
the responders can answer the questions freely. If repliers choose neither of the
answers, they can identify their answer after the choice of „others‟. In addition, a
Likert Scale was used in order to present the degree of agreement. The range of
values were gathered by the answers „strongly agree, agree, undecided, disagree,
strongly disagree‟.
If the topic is restricted to one institution, it is necessary to select a sample (Bell, J.,
2005). Considering that not all of the respondents are willing to complete the
questionnaire, plenty of copies should be distributed. An explanation about how to
Closed question with a vertical format
15. In general, how satisfied do you feel with product brand of Xiwang Group
Ltd.?
(please tick the appropriate response)
Superior 1
Very satisfied 2
Average 3
Dissatisfied 4
Poor 5
I don‟t know 6
47
complete the questionnaire should be provided before the questions. Appropriately
150 copies of the questionnaire were delivered to the customers. Because customers
are uncontrolled factors, not all of them are willing to answer the questions. In
addition, it required perhaps 5 days to a week to get the questionnaires back.
Rationale for each question
The primary data that are collected in the questionnaire were grouped into the
following categories, which is helpful for the systematic analysis of the data. After
deciding what kind of data to measure, formulating the objectives of the investigation,
and deciding on a participant group, the questions should be composed. The detailed
reasons for asking these questions are given below each category.
Demographic Data
Demographic data on the participants was gathered at the beginning of the
questionnaire. Questions 1-5 were designed to ask for demographic information
about the participants. Question 1 is about gender; Question 2 is about age group;
Question 3 is about educational status; Question 4 is about business location; and
question 5 is about employment status.
Demographic data was designed at the beginning of the questionnaire because
background information is easier to be answered and can ease the respondent into the
questionnaire. People usually like to answer questions with which they are familiar.
In addition, it is used to see the differences or similarities between difficult groups.
For instance, if the group of participants from one province is noticeably less
satisfied with the customer service or products, the company should consider
whether they have provided fair service or products to the customers in this group.
Similarly, responses from those from different age groups, educational status, or
employment status may be different owning to the diversity of their characteristics.
Psychological/Lifestyle
48
Activities, Interests and Personality Traits are asked in this part. Questions 6 to 14
were designed about lifestyle.
Question 6 was designed to determine the time period of being a customer of this
company. Different customers from different time periods may have different
feelings about and loyalties to the company, which involves the customer
classification of e-CRM. Through the analysis of the data from each group, it can be
used to test the hypothesis in the literature review; that is, that customer loyalty has a
positive relationship with customer satisfaction.
Question 7 was designed to explore the customers‟ usage of the internet, which can
be considered to be one factor influencing customer satisfaction. Generally, the
longer the customers have been on the internet, the more skillfully they can do online
shopping. Different groups of customers can be divided in terms of their internet
usage because the capability of internet usage can influence their usage situation of
e-CRM. What is more, customers who do not use the internet cannot give any
suggestions about the efficiency of e-CRM program.
Question 8 was designed to ask how many times the customers have ordered goods
from this company in the past year. Respondents can be grouped in terms of the
number of times they have ordered goods from the company. The more times they
order goods, the more attention should be paid. Companies can adopt different
strategies towards different customer groups.
Question 9 was designed to explore the characteristic of the customers. This question
is relevant to Question 10 that was designed to learn the average value of each order.
Question 9 decides whether the trade is B to B or B to C business. Both Questions 9
and 10 were used to classify the customers in terms of scales, as mentioned with
reference to customer classification in the literature review. It is one index of
customer classification, by which customers are grouped into large client, medium
49
client, small client and sporadic client. Through the analysis of customer scale,
together with customer loyalty and credit rating, the company could achieve data
from each group and find out their views about e-CRM service in order to know
whether each group is satisfied and the problems of each group.
Question 11 was designed to ask about the longest payment cycle of customers, in
terms of which customers were ranked into different credit ratings. As mentioned in
the literature review, five levels were grouped. The data from each level was
gathered. This question was used to test the hypothesis about the relationship
between credit rating and customer satisfaction. In addition, it can help the company
to find out the problems of the customers at each level and adopt appropriate
strategies to solve these problems.
Question 12 was designed to ask how the customers know about this company. This
problem can reflect the behaviour or preferences that customers have regarding using
the internet to access business information. They may trust the information retrieval
channel, which one more participants have chosen. The company can adjust their
publicity strategy according to the results of this question.
Question 13 was designed to ask about the frequency with which the company
contacts the customers. Communication between the customer and company plays a
role in the implementation of e-CRM. It is considered to be one factor that influences
customer satisfaction. The participants from each group may have different types of
customer satisfaction and loyalty. It is more efficient to test in terms of groups.
Question 14 was about the communication tool. Participants with different
communication tools may have different levels of satisfaction. This question was
relevant to the question below that is designed to test the degree of importance that
customers feel about communication. The factual communication situation can be
compared with the customers‟ feelings about the communication tools. Customer
50
satisfaction and customer loyalty must have some relationship between them.
The following question asked about the customers‟ preference about the
communication mode. Comparing this question with the last one, we can learn
whether the company has provided customers with their favourite mode. Customers
can be divided into different groups in terms of the degree of whether their
preference matches with what they have been provided.
Customer satisfaction
Customer satisfaction is tested by questions 16, 17 and 18.
Question 16 was designed to ask about the degree of satisfaction that the participants
feel towards the products and service on the whole. The participants gave their
overall feeling about the company‟s products and services from their own perspective.
This is the most direct method for gathering the customers‟ perspective.
Question 17 was designed to ask about the importance of the factors that influence
the customer‟s decision making. I listed the factors as follows: product quality,
customer service, price, delivery, payment, technology support, and personal
interaction. Through the analysis of the data, the company can test their
implementation situation of each factor and take appropriate measures to solve the
existing problems.
Question 18 was designed to ask each factor‟s degree of satisfaction. Customer
satisfaction may have a positive relationship with customer loyalty. However, it may
not decide customer loyalty itself. We know that the purpose of the company‟s
operations is to achieve more earnings and reduce costs. Other elements should be
considered together with customer satisfaction. This question can be analyzed with
customers‟ background information, including age, sex, occupation, educational
status, usage of the internet and so on.
51
Customer Loyalty
Customer loyalty is tested through questions 19-22.
Question 19 was designed to ask whether customers will keep doing business with
Xiwang Company. It reflected the customers‟ intention regarding planned or
anticipated behaviour. This is one factor that reflects customer loyalty. Participants
can be grouped according to this factor. For those who strongly agree to keep doing
business with this company, the company can find out the reason why they behave
like this and maintain the advantages. On the contrary, for those who strongly
disagree to continue doing business, the company needs to find out the reasons for
this and solve these problems.
Question 20 was designed to test another element that reflects customer loyalty.
Recommending the company will bring more profits for the company and develop
new markets.
Question 21 was designed to ask whether the participants have absolutely customer
loyalty. Generally, for customers, they focus on the utility and then decide whether to
trade or not. However, as a customer who has to do business with one company, he
may not switch to a more valuable company owning to some reason, such as the high
switching cost, absolutely loyalty to the existing brand or some other reason. It is
necessary to gather the data and analyze it.
Question 22 was designed to test the hypothesis that customer satisfaction has a
positive relationship with customer loyalty.
3.6 Data analysis technology
SPSS software was used to analyze the data from the questionnaires (. However,
because it is a new method for the researcher, only some simple functions were used
52
according to the survey demand. All of the data were entered into the system. The
descriptive statistics, pie chart and bar chart were the major form for the survey of
this questionnaire.
Besides this, SPSS was used to help the author to learn which the most valuable
customers were. Customers were identified through the use of SPSS Forecasting
analysis technology. It helps us to do customer classification.
3.7 Interview
As mentioned above, a questionnaire is a small-scale survey that emphasizes
understanding the participants‟ opinions, attitudes and interests, and the reflection on
the research questions. Although it covered a wide range of questions, it involved
few in-depth questions. In addition, data from the companies were gathered to
compare with those from the customers. The company and customers may have
different views of this topic. It is important for companies to find out the core
problems that lead to these differences.
Semi-structured interviews were adopted to gather the data. Relevant questions were
firstly designed and then sent to the interviewees. In this case, the interviewee was
the manager of an import and export department. Before the interview, I contacted
the manager and communicated with him. Because we are in two different countries,
we agreed that I would send the questions to him by e-mail and he would answer
them as soon as possible. In this way, detailed answers can be gathered.
The questions involved in the implementation situation of e-CRM any problems that
they wanted to solve through the use of e-CRM, whether he supported this
programme, the problems, conflicts or difficulties they encountered during the
process of e-CRM, whether he thinks customer classification is necessary, what does
53
he think of customer satisfaction, what is the situation regarding customer loyalty,
whether this company has evaluated e-CRM performance, and what about the result,
the changes in earnings and profits compared with before e-CRM was implemented,
and a prediction of the possible earnings.
Because the implementation of e-CRM in this company is at the initial stage, they are
willing to cooperate with this survey. In addition, owning to the good personal
relationship between the interviewer and interviewee, the results of this survey will
be valuable and considered as a supplementation to the questionnaire.
54
Chapter 4: Data analysis and findings
In the previous chapters, the main methods have been discussed in order to research
this area of e-CRM: questionnaire survey and interview. The reasons why choose
relevant questions of questionnaire and interview were given.
This chapter will present the data gathered from the questionnaire and interview, and
findings from the research.
4.1 Data analysis and findings from questionnaire
In terms of literature review and background of Xiwang Company, questionnaire was
designed into different factors in order to achieve the objective of this research and
solve the research problems: demographic data, psychological/life style, customer
satisfaction, customer loyalty, and implementation. The author will analyze the data
in terms of the category that was classified above.
4.1.1 Response Rate
As mentioned in the chapter of methodology, our target population is 100. In order to
get the target, the structured questionnaires were distributed to175 customers via
e-mail. According to the statistics of the survey, questionnaires were sent to 175
customers; finally I received 108 returns before the deadline that the author decided
during the research process. It means that the valid response rate is 61.7%.
4.1.2 Demographic details of respondents
Demographic details were gathered through the analysis of gender, age group,
55
educational status, business location and employment status, which involve in
questions 1-5.
Gender
The question was designed to represent the gender of respondents. It can be seen
from Table1 that in the valid 108 respondents, 60 is male that is 55.6%; the number
of females is 48 that take 44.4% of the valid respondents. Male respondents are
slightly more than females.
Table 1: Gender of respondents
Gender
Frequency Percent
Valid
Percent Cumulative Percent
Valid Male 60 34.3 55.6 55.6
Female 48 27.4 44.4 100.0
Total 108 61.7 100.0
Missing System 67 38.3
Total 175 100.0
56
Age group
Question 2 was designed to gather data about age group. Considering that age may
influence the demand of products and service. People from different age group may
focus different factors. Besides these, it is related to the employment status. For
example, generally, participants aged from 20 to 29 may be new workers. It can be
seen from Figure1 that people from 30-39 take the most percentage that is 37%.
Following is people aged 40-49, who take 26.9%. 17 respondents are aged from
20-29, the percentage of which is 15.7%. The least two age group is below 20, and
above 50 age people.
Table 2: Age group of respondents
Age
group
Frequency Percent
Valid
Percent Cumulative Percent
Valid Below 20 13 7.4 12.0 12.0
20-29 17 9.7 15.7 27.8
30-39 40 22.9 37.0 64.8
40-49 29 16.6 26.9 91.7
50 and above 9 5.1 8.3 100.0
Total 108 61.7 100.0
Missing System 67 38.3
Total 175 100.0
Average
57
Educational status
Question 3 was designed to ask the educational status of respondents. Considering
that customers may have different educational status, which may influence the usage
of internet, we categorize them based on 5 grades of educational levels: primary
education, secondary education, postsecondary education, university education, and
postgraduate education and above masters.
Table 3: Educational status of respondents
Table 3 shows the educational status of the 108 valid respondents. Respondents of
post secondary education take nearly half of the 108 respondents that is 49.1%.
People of this level of education usually have working skills; however, they are short
of theoretical knowledge. According to the education system in China, they can work
earlier than university education students. The age they begin to work is about 20
years old. People with university education take the second largest number of the
respondents. 41 out of 108 is university education that is 38%. Primary education,
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Primary education 1 .6 .9 .9
Secondary education 8 4.6 7.4 8.3
Post Secondary
education 53 30.3 49.1 57.4
University education 41 23.4 38.0 95.4
Postgraduate education
Above masters
5
0
2.9
0
4.6
0
100.0
Total 108 61.7 100.0
Missing System 67 38.3
Total 175 100.0
58
secondary education and above masters respectively take less than 10 percentage, in
which, people with above masters take the least, that is 4.6%.
Business location
Question 4 was designed to gather information about business location. As shown in
Table 4 that in the 108 respondents, 75% of business locate in China Mainland that is
81 customers are working in China mainland. The left 25% comes from Taiwan and
Hong Kong.
Table 4: Is your business located in China Mainland?
Frequency Percent
Valid
Percent Cumulative Percent
Valid Yes 81 46.3 75.0 75.0
No 27 15.4 25.0 100.0
Total 108 61.7 100.0
Missing System 67 38.3
Total 175 100.0
Figure 1 Business Location
Business Location
Shandong Qingdao
Shandong Yantai
Shanghai
Jiangsu
Hebei
Taiwan
Hong Kong
59
Figure 1 shows the location of the respondents‟ business. Slightly more than half of
the businesses locate in Shandong Province, including Qingdao City and Yantai City.
The former is slightly more than the latter one. Taiwan and Hong Kong takes almost
the same percentage, which is nearly 12.5% respectively. Shanghai takes the least
percentage, which is less than 5%. Others like Jiangsu Province and Hebei Province
take 17% totally.
Employment Status
Question 5 was designed to gather the data of employment. It can be seen from Table
5 that 88.9% respondents are full time workers; only 11.1% respondents are part time
workers. Considering the characteristic of full time worker and part time worker, the
former is more valuable customers.
Table 5: Employment status of respondents
Employment Status
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Full Time
employment 96 54.9 88.9 88.9
Part Time
employment 12 6.9 11.1 100.0
Total 108 61.7 100.0
Missing System 67 38.3
Total 175 100.0
60
4.1.3 Psychological/Lifestyle
Psychological information was gathered through the following factors: time of being
a customer of Xiwang Company; usage of Internet; times customers order goods
from company; type of customer; average value of each order; longest payment cycle;
the mode that customers know about this company; frequency that company connects
with respondents; communication tools; and customer preference.
Time of being the customer of Xiwang Company
Question 6 was designed to gather the information of the time of being the customer.
In terms of the factor, company can separate customers into different category: old
customers and new customer. It can be obviously seen from Figure 2 that customers
with over 5 year‟s business take the largest percentage of the respondents. Customers
with 4-5 years‟ business take the second largest percentage. Therefore it is significant
to pay attention to these two groups of customers. It can be analysed that old
customers are the major client of this company.
Table 6 shows the detailed data of the survey. The amount of customers with over 5
years‟ business is 49, which is 45.4% of the valid data. The amount of customers
with 4 to 5 years‟ business is 43, which is 39.8%. The last two groups are 8
respondents respectively, which is only 4.6%.
Figure 2: How long have you been a customer of Xiwang Company?
61
Table 6: How long have you been a customer of Xiwang Company?
Frequency Percent Valid Percent
Cumulative
Percent
Valid No more than 1 year 8 4.6 7.4 7.4
2-3 years 8 4.6 7.4 14.8
4-5 years 43 24.6 39.8 54.6
over 5 years 49 28.0 45.4 100.0
Total 108 61.7 100.0
Missing System 67 38.3
Total 175 100.0
Usage of Internet
Question 7 was designed to gather data of Internet usage. It can be seen from Figure
3 that respondents who have more than 5 years experience of Internet takes more
than half of all valid respondents. People who have 3-5 years‟ experience of using
Internet take the second largest percentage, which is near 40%. The data above
shows that internet is widely used in business circles for several years. It has been
used for most of the customers to do business. It is significant for companies to study
electronic business in order to achieve competitive advantage.
Figure 3: Usage of Internet
62
Times of ordering products
Question 8 was designed to collect data about times of ordering goods from Xiwang
Company in the past one year. Customers who have ordered 6-10 times take the
largest percentage of all the valid respondents. The percentage is 60%. This part of
customers should be considered to be valuable customers. The strategies that are
taken on them should be kept. On the contrary, company should study the customers
who never or only have once order and find out the problem and try to solve them.
Customers with 11-15 timers ordering may be considered to be the sample of doing
business. According to literature review, different groups can be classified into
different value distinct and take relevant strategy.
Figure 4: Frequency of ordering products
63
The type of customers
Question 9 was designed to test the type of customers. It can be seen obviously from
Figure 5 that all the respondents are wholesalers. This tests the fact that the
characteristic of this company is business to business model.
Figure 5: the type of respondents
64
Average value of each order
Question 10 was designed to gather data about average value of each order.
Figure 6: Average value of each order (RMB)
Figure 6 shows that nearly half of the respondents have ordered products valued
300,000-400,000. Respondents with each order valued 400,000-500,000 RMB take
more than 10% of all respondents. These two parts are considered to be medium
client by the company. Through survey, we find that the standard mentioned in the
literature review is not suitable for Xiwang Group. Therefore, in order to analyze it
appropriately, while doing the questionnaire, the standard of customer scale was got
from this company. The former two groups are considered to be medium client, who
take nearly 65 percentages. The large client, which group is valued above 500,000
RMB, takes nearly 8% of the respondents. Small scaled client is valued
200,000-300,000 RMB, who takes 21%. Respondents who choose the value less than
200,000 RMB is considered to be sporadic client. The percentage is about 6%.
65
Longest payment cycle
Question 11 was designed to gather data about longest payment cycle. In term of
literature review and the real situation of this company, I decided to separate
customers into the following 5 levels of credit rating.
Table 7: Longest payment cycle
Table 7 shows that customers with advance payment are classified as best credit
rating customers, who take 12.1% of the valid respondents that is 13 people;
customers with less than 1 month payment are considered to be better credit rating
customers, who take 12.1% that is 13 people; customers with 1-2 months payment
are considered to be good credit rating customers, who take 20.6% that is 22 people;
customers with 2-3 months payment is considered to be not good credit rating
customers, who take 44.9% that is 48 people; customers who pay with more than 3
months are considered to be disrepute credit rating customers, who take 10.3% that is
11 people.
Frequency Percent Valid Percent Cumulative Percent
Valid Advance payment 13 7.4 12.1 12.1
Less than 1 month 13 7.4 12.1 24.3
1-2 months 22 12.6 20.6 44.9
2-3 months 48 27.4 44.9 89.7
>3 months 11 6.3 10.3 100.0
Total 107 61.1 100.0
Missing System 68 38.9
Total 175 100.0
66
Connection between customers and company
This factor was analyzed through data collection of questions 12, 13, 14 and 15.
Question 12 was designed to gather data about the mode that customers know about
the company. It can be seen from Figure 7 that websites take half of the respondents;
Exhibition and trade fair take the second largest percentage, which is 30%. The least
percentage is newspaper.
Question 13 was designed to gather the frequency that company connects with
respondents. In Figure 8, the two choices „every six month‟ and „each year‟ take the
largest and secondary largest percentage, which is around 36% respectively. The
respondents who choose „never‟ take about 16%. This is one problem that company
should consider.
Figure 7: The mode that
customers know about this
company
Figure 8: Frequency that
company connects with
respondents
67
Question 14 was designed to know about the mode that Company contact with
customers, which is relevant to the first characteristic in literature review. Customers
have the right the use different channels to communicate with companies. In terms of
Table 8, E-mail is most widely used among the following modes. More than half of
respondents are contacted via e-mail. Face and face is least used, the percentage of
which is only 1.9%. Respondents are also contacted via other mode, like online
consultation and fax that are totally 2.6%; and MSN takes 15%. Among them, the
respondents who specify MSN also choose e-mail or telephone.
Table 8: Which kind(s) of mode does Xiwang Company contact with you?
Frequency Percent Valid Percent Cumulative Percent
Valid E-mail 57 32.6 52.8 52.8
Letter 5 2.9 4.6 57.4
Telephone 25 14.3 23.1 80.6
Face to Face 2 1.1 1.9 82.4
Others 19 10.9 17.6 100.0
Total 108 61.7 100.0
Missing System 67 38.3
Total 175 100.0
68
Customers Preference
Question 15 was designed to test customers‟ preference. Table 9 shows that „personal
contact‟ is the customers‟ most preferred mode for company to contact with them. 52
participants, the percentage of which is 48.1%, prefer this mode the best. 45.2% of
the respondents most prefer „telephone‟, which take the secondary largest percentage
(45.4%). E-mail takes 32.4% as the third largest percentage of the most preferred
mode. On the contrary, text message is the least preferred mode that takes 19.4%.
Company should consider the finding of customers‟ preference together with the
current contact mode. If the company is using the mode, which customers most
prefer, it will satisfy customers in the largest degree. Therefore, data from question
15 can be compared with question 14.
Table 9: Customers preference
preference Most
preferred(1)
Preferred
(2)
Neutral
(3)
Less
preferred(4)
Least
preferred(5)
Max Min
N % N % N % N % N % % %
Telephone 49 45.4 28 25.9 36 33.3 3 2.8 0 0 45.4 0
E-mail 35 32.4 37 34.3 54 50 4 3.7 0 0 50 0
Fax 5 4.6 19 17.6 29 26.9 7 6.5 3 2.8 26.9 2.8
Text message 0 0 8 7.4 48 44.4 5 4.6 21 19.4 44.4 0
MSN 28 25.9 45 41.7 58 53.7 0 0 0 0 53.7 0
Personal
contact
52 48.1 25 23.1 47 43.5 2 1.9 0 0 48.1 0
Total 169 26.1 162 25 272 42 21 3.2 24 3.7 ------ -----
69
4.1.4 Customer satisfaction
General feeling of the brand
Customer satisfaction is tested through questions 16 to 18. Question 16 was designed
to test the degree of satisfaction in the whole. Figure 9 shows that 37% of
respondents feel average of the product brand. 32% feel very satisfied with brand.
The feeling of „poor‟ is chosen by least customers, the percentage of which is 5%.
About 7% of respondents feel very superior. It reflects that brand cannot perfectly
satisfy customers. Company should consider the reasons and take measures to
improve brand.
Figure 9: satisfaction of brand
6.00----I don’t know
70
Importance of factors that influence purchasing behavior
Question 17 was designed to test the importance of factors that influence purchase
decision. In terms of Figure 10, respondents generally consider product quality,
customer service, price, delivery, payment, technology support and personal
interaction as important factors. The importance of the seven factors is tested
according to respondents‟ choices. Traditional decision making factors like product
quality and price are still important for customers‟ purchasing behavior. However,
nowadays, service and personal interaction are considered slightly important than
product price. Delivery and payment are considered almost the same as price.
Personal interaction helps customers have a good mood to purchase. It is the basic of
customer service. Payment and delivery decide whether customers have a safe and
trustful environment of purchasing.
Figure 10: Importance of factors that influence purchasing behavior
0 20 40 60 80 100
Product quality
Customer Service
Price
Delivery
payment
Technology support
Personal interaction
Impotance of factors that influence purchasing behavior
Impotance of factors that influence purchasing behavior
71
Satisfaction of the factors
Question 18 was designed to evaluate the satisfaction of each factor that influence
purchasing behavior. As it can be seen from Figure 11, the percentage of satisfaction
of each subsection factor is presented. Customers feel least satisfied with post-sale
service. Customers are not satisfied with the waiting time, the percentage of which is
only 35.5%. Real time is one characteristic of e-CRM; however, it cannot satisfy
customers. It reflects that e-CRM is not well implemented in some degree. They are
also not satisfied with problem solving. In addition, post-sale service and sale service
cannot satisfy customer as well, which take 52.5% and 49.2% respectively. From the
finding of Figure 10, we know that customer service take the most important part in
the purchasing behavior process. Customers feel most satisfied with payment safety
and payment speed. Customer service is an important function of e-CRM, which can
be used to test whether e-CRM is well implemented. Overall, customer satisfaction is
not high.
68.2
52.5
42
70.5
89
65.5
84
62
49.2
35.5
54.2
92.5
71 73.5
Figure 11: Customer satisfaction of each detailed factor
Pro
du
ct perfo
rman
ce
Pro
du
ct utility
Pre
-sale service
Sale service
Pro
blem
solvin
g
Waitin
g time
Price
Disco
un
t
Paymen
t too
l
Paymen
t safety
Co
mm
un
ication
too
l
Delivery sp
eed
Package con
ditio
n
On
e-to-o
ne C
om
mu
nicatio
n
72
4.1.5 Customer loyalty
Customer loyalty is tested through the Questions 19-22. Combination of the data
collection of these four questions decides customer loyalty.
Question 19 was designed to test whether respondents will keep doing with Xiwang
Company, which reflects the transactional loyalty. From Figure 12, Most of the
respondents, the percentage of which is about 30%, have not decided whether they
will keep doing business with this company or not. These respondents have relatively
more possibility to keep doing business. About 13% of respondents will strongly
agree to keep doing business with this company. Combining the finding with data
from Figure 9, it can be seen that respondents who feel most satisfied are almost the
same people.
Figure 12: Will you keep doing business with Xiwang Company?
73
Figure 13: Will you recommend Xiwang Company to others?
Question 20 was designed to test whether respondents will recommend Xiwang
Company to others, which reflects the emotional loyalty. Figure 13 shows that
almost half of the respondents have not decided whether they will recommend this
company to others. It illustrates that people who keep indifferent attitude. The
number of respondents who adopt this attitude increases. Respondents who strongly
agree to recommend Xiwang to others is about 8%, which is almost the same as the
data from Figure 12 and Figure 9.
Question 21 was designed to test the switching situation, which reflects emotional
loyalty. It can be seen from Figure 14 that slightly more than half of the respondents
are undecided whether ignoring other companies even if they have got high utility
products. 7.5% of the respondents strongly agree to ignore others‟ activities.
Figure 14: Will you ignore other companies even if they take promotion strategies or
provide products with high utility?
0
10
20
30
40
50
60
Strongly agree Agree Undecided Disagree Strongly disagree
Pe
rce
nta
ge
0
10
20
30
40
50
60
Strongly agree Agree Undecided Disagree Strongly disagree
Pe
rce
nta
ge
74
Figure 15: Relationship between customer satisfaction and customer loyalty
Considering findings from Figure 9, Figure 12, Figure 13 and Figure 14, they have
got some common points and certain trend, which is identified in Figure 15. Only the
respondents who is feel superior with this company almost keep the same, which is
10%. Those customers who are the most valuable customers for company have
absolutely loyalty to the company. The other level of customer satisfaction has no
direct relationship with customer loyalty. It can be conclude that only over very
satisfied customers that are customers with superior attitude is with high loyalty.
However, it cannot be concluded that they have positive relationship.
75
Figure 16: Will you transfer your business to other companies if Xiwang can not
satisfy you?
Question23 was designed to test the relationship between customer satisfaction and
customer loyalty when Xiwang Company cannot satisfy customers. From Figure 16,
it can be seen that more than 40% of respondents will strongly agree to transfer to
other companies. 37% agree to transfer to others. More than three quarters of the
respondents will choose to switch. Only less than 5% strongly disagree to switch. It
means that customer satisfaction has influence on customer loyalty. However, it still
cannot prove the positive relationship between them. Therefore, the hypothesis in
literature review „Customer satisfaction has positive relationship with customer
loyalty‟ cannot be proved.
0
5
10
15
20
25
30
35
40
45
Strongly agree Agree Undecided Disagree Strongly disagree
Pe
rce
nta
ge
76
4.2 Data analysis and findings from interview
In this part, the responses of interview will be analyzed in order to gather information
from the view of company. The content of interview involved in the field of e-CRM
program in Xiwang Company.
The situation of e-CRM in the Company
From the answer of the first question that is „Please simply introduce the
implementation situation of e-CRM.‟, we can see that the company is at the initial
stage of implementation. There must be some imperfections, which should be found
out and corrected. It is a valuable case to be studied.
Reasons why carry out e-CRM program/Function of e-CRM
From the answer of this question, we can see that the current objectives for this
company involves in the following functions e-CRM: customer management,
contacts management, electronic business, customer service. The ultimate aim is to
increase sales achievement and reduce sales cost. However, the manager indicates
that they haven‟t reached the re-set target.
Manager support
From the answer we can only see that this manager support the implementation of
e-CRM.
Knowledge of e-CRM
The manager considers the implantation of e-CRM is based upon both technology
and practical business.
Implementation of E-CRM
Question 5 is designed to gather information about conflicts, problems or impacts
during the implementation of e-CRM. It can be seen that lack of senior manager
77
support and resistance of relevant interior personnel. He emphasized that it is always
human being who decide the result but not only technology. Another point that can
be found is that the traditional organizational cultural resists the implementation of
e-CRM.
Customer classification
He believes that customer classification is very important. They mainly take two
kinds of customer classification methods: customer segmentation in terms of
characteristics including location, age group, income, working position, educational
status, lifestyle, and customer behavior and so on; segmentation based upon customer
value. He emphasized that their focus is to keep high value customers.
Problem solving
It can be seen that they respect the recommendations of customers and will give
relevant solving methods.
Customer satisfaction and customer loyalty
Because e-CRM is carried out recently, there are still some problems. Therefore, he
indicates that the situation of the two factors is just average.
Evaluation of e-CRM performance
They haven‟t evaluated the performance of e-CRM. However, a plan has been made
that is evaluating the performance half a year.
Factors that influence customer satisfaction
From the answers, we can see that 4 out of 5 answers are about product. Another
answer is customer service. More factors should be considered.
Changes of achievements and earnings after e-CRM implementation and
possible achievements in future
78
Sales have increased and cost has reduced. Profits will increase 20% when the
program enters into mature period.
79
Chapter 5: Discussion
In the chapter of literature review, the main areas of this research are discussed,
including basic concepts of e-CRM, implementation of e-CRM, advantages of
e-CRM implementation to organization and organizational business performance,
performance evaluation, and the development of e-CRM in China. Important factors
like customer satisfaction, customer loyalty and customer value are given and
discussed. Customer classification as a significant method in the implementation of
e-CRM is discussed. According to the main factors that are discussed in the literature
review, questionnaire and interview are designed to gather information from both
customers and company, which can help reach research objective and solve research
problems. Data analysis and findings are provided in the previous chapter. This
chapter will explain the meaning and importance of the results through the following
elements: major findings of this study, explaining the meaning, importance and
alternative explanations of the results, limitation of the study, suggestions for further
research, and at last a short conclusion.
5.1 Major Findings of the study
Combining the data analysis and background of Xiwang Company , we can get the
following major findings.
With respect to functions of e-CRM, our findings confirm that customer service
function is not effectively developed in Xiwang Company in the view of
customers.
With respect to strategies in the implementation of e-CRM, our findings discover that
personalization strategy, which involves in the characteristics of „one to one‟ and
80
„real time‟, is not taken successfully by Xiwang Company.
With respect to implementation of e-CRM in SMEs, our findings suggest that
Xiwang Company is lack of senior manager support and the capability to adjust
change.
With respect to the main factors that influence customer purchasing behavior or
e-CRM performance evaluation, our findings suggest that customer loyalty is not
high in terms of the analysis of questionnaire data; customer satisfaction cannot be
proved to have positive relationship with customer loyalty. Customer retain is major
index to measure customer loyalty. Only customers who feel over very satisfied
(superior) have high customer loyalty to this company. These customers are
classified as most valuable customers. As such, the original hypothesis was not
supported by this sample.
It is important to note that these results are consistent across all evaluated ages and
genders.
5.2 Meaning, Importance and Alternative Explanations
of the Findings
Functions of e-CRM
Involved in the functions of e-CRM, our findings discover that customer service
function is not effectively developed in Xiwang Company in customers‟ perspective.
Before a company want to carry out a program, which can be costly, they must
consider it carefully. Functions are one of the essential elements (Buttle, 2005). They
have to consider whether these functions are necessary and meaningful for them to
achieve benefits; or whether these functions can satisfy their demand. No company
wants to invest one program that cannot achieve the basic function. Therefore it
81
becomes significant to test whether this program has got the basic function as what
they believe it has before implementing it. Besides this, the implementation
performance of one program is not only relevant to technology, but also relevant to
human beings, like customers, program members and other company staffs (Chen,
2007). In this study, the author chooses to do questionnaires for customers to test it.
Because the core of e-CRM is customer, customers‟ opinion should be considered to
be the first and most important indicator to test it.
Through the statistical data and findings, we found that the degree of satisfaction to
customer service is the lowest part in the factors that influence customer purchasing
behavior. Pre-sale service, sale service and post-sale service are all tested. We
consider this problem from two points. The findings of Figure 10 in previous chapter
discover that customer service that takes about 90% is one of the most important
factors that influence customers‟ purchasing behavior. However, a finding from
Figure 11, which shows the satisfaction of each factor, suggests that customers feel
least satisfied with customer service, including pre-sale service, sale service and
problem solving. Customer service, which customers consider as one of the most
important reason for decision making of purchase, however, is tested to be the least
satisfied factor. If Company cannot improve customer service, not only the
investment of e-CRM becomes meaningless, but also operating revenue might
decline. This phenomenon should be taken into account.
According to the literature review, the implementation of e-CRM should help
improve customer service. However, the result shows that customers still feel
unsatisfied with customer service. Why the hypothesis cannot be supported? We will
consider it from the following points. Firstly, maybe customer service has been
improved but not too much that makes it still cannot satisfy customer demand. This
can be proved by the interview for managers. He indicated that customer service has
improved after implementing e-CRM. Secondly, although the results of e-CRM are
relevant to technology, it is more relevant to program members. As mentioned in the
82
findings of interview, since the implementation of e-CRM, some staffs cannot adjust
the changes. They still had the opinion that „this is my customer.‟ but not „whether
customers need me‟. Some of them still resist the program. Besides these, the
demographic factors of sample influence the findings of the research (Robson, 2001).
Respondents who have high educational status and longer time usage of internet feel
slightly higher satisfied than those who have low educational status and shorter time
usage of internet.
Strategies in the implementation of e-CRM
Involved in strategies in the implementation of e-CRM, our findings confirm that
personalization strategy, which involves in the characteristics of „one to one‟ and
„real time‟, is not taken successfully by Xiwang Company.
Personalization is one of the major strategies in the implementation of e-CRM, which
is helpful for companies to obtain real-time understanding of customer demand and
do one-to one marketing with different customers (Fotouhiyepour, 2008). It is important
to test whether this strategy is effectively taken, because customer has become the
core of whole marketing. According to the findings from Figure 10, personal
interaction is almost the same as customer service for customers to do purchasing
decision. Compared with the findings from Figure 11, customers are not so satisfied
with communication tool and one-to-one communication, the percentage of which is
the only slightly more than customer service. Personalization is relevant to customer
classification. Company can make different and personalized strategies in terms of
different segmentation. It is important for companies to understand the real demand
of certain customers, customer segmentations that companies should try to attract,
customer segmentation which should be paid attention to maintain, and how to cater
for customer‟s demands. The findings are important for company to consider this
point and make relevant solution.
E-CRM system can help record each business transaction of each customer into
83
database, which help to do sophisticated business. More customer call can be dealt
with by organizational call center. However, personalization strategy is not well
carried out. The alternative reason why it is unsuccessful is not software itself, but
the incompatibility of real personalization and standardization. For instance, call
center of e-CRM system deal with amount of customers‟ incoming phone. However,
customers may feel tired of the sales letters with their names but no relevant
information. Besides this, customers have to communicate with computers such as
“If you want to communicate with sales department, please press 1; if you want to
communicate to manufacture department, please press 2.” No matter how urgent
things customers have, they cannot get any help except going step by step. E-CRM
goes to the opposite side, which is lack of personalization.
Implementation of e-CRM
Involved in implementation of e-CRM in SMEs, our findings confirm that Xiwang
Company is lack of senior manager support and the capability to control change.
This finding was got from the interview for manager. It is essential to get the
agreement of all managers. Without manager support, it cannot be fully implemented.
Once they are facing the challenges that come from new things, they cannot take
positive strategy to adjust the changes. It is important for company to realize the
problem and try to find out the solution.
Other previous similar studies have raised the problem that senior manager support is
important to implementation of e-CRM. The CEO of Shenzhen Dongjin
Communication Company, Li Jiangru support to implement e-CRM
(Changingmind.org). Before they carried out the program, 60% e-CRM has been
implemented unsuccessfully. He believed that one key reason was lack of senior
manager support and understanding. He made policy to support it as a result many
resistances disappeared. Till now they have implemented e-CRM efficiently.
The alternative explanations for the findings may be that they have not find out
84
enough evidence. They might believe that it has risk to implement the program. They
might consider whether it is worthy of investment, can it help bring increase in
revenue and profits. In addition, quite a lot of e-CRM programs are implemented
unsuccessfully in China, which is believed to be the reason they do not support it. On
the other hand, the company cannot adjust the changes immediately. This is relevant
to the organizational culture. Many staffs and managers are used to do business in the
usual way that is trying to find customers who need their products. The force of habit
resists the implementation of e-CRM.
Relationship between customer satisfaction and customer loyalty
Our findings confirm that customer satisfaction cannot be proved to be positive
relationship with customer loyalty. Customer retain is major index to measure
customer loyalty. Only customers who feel superior have high customer loyalty.
It is important for companies to change their opinion that once customer satisfaction,
customer loyalty must be high. Company should consider that customer satisfaction
may not have direct relationship with customer purchasing behavior. Our finding that
customers who have high customer satisfaction might still purchase products from
other companies and may switch suppliers owning to lower price. Many companies
still believe that customer satisfaction decides customer loyalty. This finding can be
considered to be a warning to these companies.
The findings are at opposite side of hypothesis. Firstly, customer satisfaction may
reflect the confidence that customers have fro previous purchasing; however, this
cannot guarantee they will not choose other companies. Similar finding has been
confirmed in the bank credit card market. Most banks have similar products and
service; however, customers who feel average are possible to be not loyal (Fang,
2005). Secondly, the cost of switching may be too high, especially for these
products with high barrier.
85
Solution of research problem
1) What percentage of organizations‟ customers is online shopping customers? And
what are the customers‟ perceptions of company‟s e-CRM program?
The first part of the question is answered in the interview of manager. He indicates
that the percentage of customers who are doing online shopping is about 80% of all
the customers. The second part of the question can be analyzed from data findings of
questionnaire that customers are not very satisfied with this company, especially on
customer service and personalization.
2) What factors can help managers to strength the development of e-CRM program
related to customer loyalty and customer satisfaction?
Through the questionnaire survey and interview survey, the findings confirm that
managers should develop e-CRM from the following factors: personal interaction,
product quality, customer service, delivery, and payment. Among theses factors,
customer service, personal interaction and product quality are the most important
factors.
5.3 Limitations of the study
Through the study of e-CRM, researchers can have systematic and comprehensive
understanding about the area. However, some limitations still exist and should be
illustrated. They are concluded as following.
Sample population of questionnaire is not big enough. Only 108 respondents
answered the questionnaire and be valuable. There are a large amount of
customers from all over the world. However, owning to time limitation and
research cost, it is difficult to survey more people.
86
In order to research more precisely, only agriculture department of one company
is studied. Because different industry have different characteristics, the study
results may be not suitable for other industries, like steel, telecommunications
industry and so on.
Limitations of technology exist in the study. SPSS is used to analyze data.
However, because the researcher is not familiar with this software, some more
efficient functions cannot be used in the study, which limit the diversity of
research results. For instance, this software has the function of customer
classification and can used to make relevant strategies for researchers according
to the analysis of findings. Deeper study should be provided if all the functions
of this software are used.
It is difficult to judge the accuracy of demographic information. People feel
worried that the personal information might be abused by others. Usually, some
do not want to reveal exact personal information. However, for researcher, it is
important to gather user information. Although some sensitive information, like
detailed address, telephone number and so on, has been avoided in the survey,
we cannot make sure that all the information is accurate.
It is difficult to make sure whether the content of interview is fully accurate.
Managers always want to tell others that their company has good performance.
There might be personal bias when they were answering questions.
The opinion of company staffs is not given in the study. Staffs are the people
who operate the program according to managers‟ order. Their opinion should
have been involved in the study.
Only customers in China are studied in the study. Foreign clients, such as
customers from Europe, Asia, Africa and America, should be surveyed.
87
5.4 Suggestions for further research
Although the study has attempted to answer important questions which have been
mentioned in Chapter 1, other questions related to the subject may remain
unanswered. Some suggestions will be given for further study.
Research object should cover all the customers of the company. For example, in
the study, object concludes company managers, company staffs, customers from
both China and other countries.
Sample population should be large enough to be studied.
In order to gather more valuable information, questions should be designed to
avoid sensitive field.
It is also important to choose an efficient technology tool to do data analysis. It
will be better if the researchers know how to adopt all the functions that are
necessary of the study.
5.5 Conclusion
E-CRM is significant for companies to create customer value. In the study, some
points should be noticed. Firstly, customer service and personalization are two most
important factors that influence purchasing behavior. However, both the two features
are not implemented successfully. Secondly, it is important for managers to support
the program. Company should make measures to adjust the changes of marketing
environment. Thirdly, customer satisfaction is not proved to have positive
relationship with customer loyalty. Only customers with superior satisfaction are
high loyalty. It is important to maintain these customers.
88
In addition, the paper points the limitations of this study in terms of sample, survey
content and technology. The author states that: (1) sample population is not enough.
(2) It is difficult to make sure the accuracy of answer content. (3) Data analysis tool
is not used skillfully. (4) Not all research objects are covered.
In terms of the limitations, some suggestions for further study are provided. (1)
Research object should cover all the customers of the company. (2) Sample
population should be large enough to be studied. (3) Questions should be designed to
avoid sensitive field. (4) An efficient technology tool is important. It is also
important whether the researcher can use it sinfully.
89
Chapter 6: Conclusion and Recommendation
6.1 Summary
This dissertation is discussed through the following parts: literature review,
methodology, data analysis and findings, and discussion. A short conclusion will be
given following.
E-CRM involves not only technology but also business practice. It has the following
three characteristics: convergency, one to one, and real time. Customer management,
contacts management, time management, marketing management, telemarketing,
customer service, call center, knowledge management, business intelligence and
electronic business are the ten functions of e-CRM. E-CRM, as the product of
informatization, suffers some impacts from marketing, competitors, interior company,
and technology. Three strategies including electronic strategy, personalization, and
customization can be taken to implement e-CRM. Specially, SMEs are suggested to
implement e-CRM through the following methods: establish rational program
implementation goal; understanding and support of senior manager; drive e-CRM
program through business; control change effectively; establishment of program
implementation organizational structure. Through the implementation of e-CRM,
companies can achieve quite a lot of advantages: customer satisfaction, payment
equality, customer satisfaction, experience effect and customer loyalty. In terms of
business performance, it can help reduce cost and increase revenue, increase business
operational efficiency and develop new market. Customer is the core of marketing.
Therefore, customer analysis is important to implement e-CRM successfully.
Through customer classification, customers can be classified into different value
groups. For instance, in terms of order value, customers can be classified to be large
client, medium client, small client and sporadic client. Company can pay attention to
90
the large client, because they can help company create most value. In terms of
combination of customer loyalty and credit rating, four types of customers are
classified: low credit rating-low loyalty client, low credit rating-high loyalty client,
high credit rating-low loyalty client, high credit rating-high loyalty client. In terms of
the combination of customer loyalty and customer scale, customers are divided into
small scale-low loyalty client; small scale-high loyalty client; big scale-small client,
and big scale-high loyalty clients. And in terms of combination of credit rating,
customer scale and customer loyalty, a more detailed classification is given. At last,
performance evaluation is a important process in the implementation of e-CRM,
which can help company to have a plan and evaluate whether it will be helpful for
this company. Finally, a positive market prospect of e-CRM is provided.
In terms of methodology, both inductive and deductive methods were used to do the
study. Questionnaire is designed to gather information from customers, which is
relevant to quantitative research; interview is designed to gather information from
company, which is relevant to qualitative research. In addition, the reason why
choose Xiwang Company as the case is given that Xiwang Company is at the
initial stage of e-CRM, and the managers have positive willing to implement e-CRM
efficiently. This study will be valuable for them to develop the implementation of
e-CRM.
Through the analysis of data and findings, some problems are discovered. Customer
service and personalization are two factors that the company should pay attention to
improve. During the process of implementation of e-CRM, Xiwang Company is lack
of manager support and the capability to adjust changes. Besides, company should
pay attention to customer satisfaction and customer loyalty.
91
6.2 Recommendation
The ultimate purpose of a company is to increase revenue and reduce cost. Customer
value, customer loyalty and customer satisfaction is directly related to the profits of
business operation. Therefore, it is important to improve customer value, customer
satisfaction and customer loyalty.
How to improve customer value?
Customer classification plays an important role in the value creation process.
Firstly, company can analyze the situation of customers‟ profit contribution in terms
of transaction record. In order to improve customer value creation, the first thing that
the company need to know is that how much is the profit contribution since the first
transaction. E-CRM system can deal with the information and do analysis of profit
contribution automatically. Technology staffs can compare the historical record
between different customers. Through this kind of compare, managers can take
customized schedule.
Secondly, managers can classify customers in terms of profit contribution. When
client base is too big, company cannot take care of each customer equally. Therefore,
customer classification becomes important. For these customers who can bring more
value, company can give them special care. For example, company can give them
discount or decrease delivery time.
Thirdly, high profit products should be popularized and low profit products should be
resisted to produce and sale. In order to reduce risk, a company will produce and sell
diversity of products. Meanwhile,
How to improve customer satisfaction?
Customer satisfaction plays an important role in increasing quantity of order, which
can help improve profitability. In order to improve customer satisfaction, it is
92
important to provide sound service during the whole purchase process.
On one hand, waiting time can influence customer satisfaction that is confirmed by
findings of the study. When customers call to inquire about the execution of purchase
orders, how to decrease waiting time should be considered; and when customers are
inquiring, how to make staffs provide perfect one-to-one service are the main
problems when e-CRM is implemented. For example, when customers call to inquire
the execution of orders, customer information can be searched in terms of telephone
number record in e-CRM system. When customers want to know the delivery
situation, business personnel can respond them rapidly but not ask customers to
search it themselves. By this way, customers may feel that personnel are servicing
him.
On the other hand, post-sale service system should be improved. Company can
improve customers‟ treatment efficiency through improve post-service system. By
e-CRM, the situation and quality of dealing with customer complaint can be tracked
efficiently.
How to improve customer loyalty?
It is not enough only to achieve customer satisfaction. Customer loyalty should also
be improved.
Through the function of transaction management of e-CRM, salesperson can be
arranged to revisit customers; besides this, greetings can be automatically sent to
customers on holidays. Customers may feel the care from company. Customer
preference can also be recorded. Therefore, when they are doing business with
customers, they can do business according to the way customers prefer.
Implementation of e-CRM
The problems that currently exist in the company are lack of senior manager support
93
and capability to adjust changes.
In order to solve these problems, performance evaluation is important, which can
compare the profits and revenue before and after the use of e-CRM program; and
predict the further performance. Mangers may consider it carefully in terms of the
evaluation results.
In order to adjust the changes immediately, training business personnel become
necessary. It includes training skills and knowledge. E- CRM is not familiar by all
staffs. Understanding e-CRM is the first step. After knowing what it is, staffs can be
trained to use it. Their opinion may change by this way.
To sum up, company should improve customer value, customer satisfaction, and
customer loyalty in order to achieve competitiveness advantages, increase revenue
and reduce cost.
Word count: 18,943
94
Reference
Anton, J. & Philonenko, L. (2002). 20:20 CRM: A Visionary Insight into Unique
Customer Contacts. Purdue University: Purdue University Press.
Byrman, A. (2008). Social Research Methods. New York: Oxford University Press.
Buttle, F. (2005). Customer Realtionship Management: Concepts and Tools. Oxford:
Elsevier Butterworth-Heinemann.
Bell, J. (2005). Doing Your Research Project. New York: Open University Press.
Botha, J., Bothma, C. & Geldenhuys, P. (2007). Managing E-Commerce. The
Republic of South Africa: Paal Print.
Brown, S. A. (2000). Customer Relationship Management: A Strategic Imperative in
the World of E-Business. Toronto: Hohn Wiley & Sons Canada, Ltd
Brochure, S. (2008). E-CRM: Customer Management Strategies for E-Business
[Online]. Research Chand Market.
http://www.researchandmarkets.com/reports/29392/ [Accessed 13 July, 2009]
Cochran, C. (2004). Customer Satisfaction: Tools, Techniques, and Formulas for
Success. Unite States of America: Scott M. Paton.
Changingmind.org (2008) [Online]. Changing Minds.
http://www.changingminds.org/techniques/questioning/open_closed_questions.htm
[Accessed 23 May 2009]
95
Chen, Z. Y. (2007). “The Research on the Tactics and Method of Implementation
E-CRM in the Small and Medium-sized Enterprises”. Management Science and
Engineering, 15(2), 32-38.
Dyche, J. (2004). The CRM Handbook: a Business Guide to Customer Relationship
Management. pp32-35. Canada: Addision-Weslsy.
Duke, S., Kiras, N., and Makey, P. (1999). “Customer Relationship Management:
Manage Your Organisation‟s Greatest Asset”. 1999 Report Series [Online], Volume
3. http://www.bultergroup.com [Accessed 24 May 2009]
Dimitriadis, S. & Stevens, E. (2008). “Integrated Customer Relationship
Management for Service Activities: An internal/external Gap Model”. Managing
Service Quality, 18(5), 496-501.
EC-Council (2006). Customer Relationship Management. [Online] http://www.
ecouncil.org/ipdf/CRM.pdf. [Accessed on June, 2009]
Fortin, D. R. (2006). “Edited by Geoffrey P. LantosCustomer Relationship
Management in Electronic Markets”. Journal of Consumer Marketing, 22(5), 43.
Fox, J. & Gregory, C. (2005). The Dollarization Discipline: How Smart Companies
Create Customer Value and Profit From It. New Jersey: John Wiley & Sons, Inc.
Fink, L. & Zeevi, A. & Teeni, D. (2008). “The effectiveness of Online customer
relations tools: Comparing the perspectives of organizations and customers”. Internet
Research, 18(3), 221-228.
Fang, M. (2005). Acknowledgement of e-CRM. [Online]
http://www.c800.com/msg/2005/09/07/08.php [Accessed on July 2009].
96
Fotouhiyepour, P. (2008). Accessing the Readiness for Implementing E-CRM in B2B
Markets. Skelleftea: Lulea University of Technology.
Iyer, R. and Bejou, D. (2004). “Customer Relationship Management in Electronic
Markets”. Relationship Marketing, 5(2), 11-13.
Jin, Y. (2008). “Management Practical Research on Customer Relationship
Management in SMEs”. Business Management, 31(4), 42-46.
Kevork, E. & Vrechopoulos, A. (2009). “CRM Literature: Conceptual and Functional
Insights by Keyword Analysis”. Marketing Intelligence & Planning, 27(1), 48-75.
Kimiloglu, H. & Zarali, H. (2009). “What Signifies Success in E-CRM?” Marketing
Intelligence & Planning, 27(2), 246-267.
Kelley, L. L., Gilbert, D. & Mannicom, R. (2005). “How e-CRM Can Enhance
Customer Loyalty”. Marketing Intelligence & Planning, 21(4), 239-248.
Kotler, P. (2006). Principles of Marketing: Asian Edition. North America: Scribner.
Kotorov, R. P. (2002). “Ubiquitous Organization: Organizational Design for
E-CRM”. Business Process Management Journal, 8(3), 218-232.
Lombardi, B. & Passino, C. (2007) Next Evaluation on E-CRM: from relationship to
value [Online].
http://www.zambeasy.com/top-consultant/Articles/CRMNEXTEVALUATION.pdf
[Accessed 26 June 2009].
97
Letaifa, B. and Perrien, J. (2008). “The Impacts of E-CRM on Organizational and
Individual Behavior: The Effect of the Remuneration and Reward System”.
International Journal of E-Business Research, 3(2), 13-21.
Looy, B. V., Gemmel, P. & Dierdonck, R. (2004). Service Management: an
Integrated Approach. Edinburg: Prentice Hall.
Lovelock, C. (2001). Services Marketing: People, Technology, Strategy. New Jersey:
Prentice Hall.
Liu, H. L. (2007). “E-CRM Marketing Strategy Research in E-commerce Era”.
SCIENCE & TECHNOLOGY INFORMATION, 12(34), 224-227.
Li, H. R. (2004). How to Use CRM to Obtain Sustainable Competitive Advantage in
Today’s China Business Environment: A research study for local Chinese small and
medium size high-tech Company. UK: The University of Sheffield.
Lawfer, M. R. (2006). Why Customers Come Back: How to Create Lasting Customer
Loyalty. Franklin Lakes: The Career Press.
Liu, R. & Wang, W. (2008). “Study of Determinants of e-CRM in Influencing
Consumer Satisfaction”. IFIP International Federation for Information Processing
[Online], 251(6), 443-449.
https://commerce.metapress.com/content/gn14307082w60630/resource-secured/?targ
et=fulltext.pdf&sid=lnrxiibpu0mpf2zvszx20sa3&sh=www.springerlink.com
[Accessed 21 July 2009].
Mckay, L. (2008). More Trouble in the Air. [Online]
http://www.destinationcrmblog.com/2008/09/04/more-trouble-in-the-air/ [Accessed
on June 2009].
98
Malhotra, N. K. (2006). Research of Marketing: Application. Stanford University:
AlphaMed Press.
Meng, Q. L. (2008). “Research on Customer Relationship Management Driven by
Customer Value”. Management Science, 26(5), 45-51.
Negi, E. T. (2005). “Customer Relationship Management Research: An Academic
Literature Review and Classification”. Marketing Intelligence and Planning, 23(6),
582-605.
Osarenkhoe, A. (2007). “An Exploratory Study of Implementation of Customer
Relationship Management Strategy”. Business Process Management Journal, 13(2),
139-164.
Petrissans, A. (2006). Customer Relationship Management and Challenge of Internet.
Gap Germini Ernst and Young-IDC, Toronto.
Peelen, E. (2006). Customer Relationship Management. Edinburg: Pearson
Education.
Porter, W. (2006). “User-Centered Design and Marketing: Online Customer Value”.
Contemporary Research in E-Marketing, 2(3), 33-41.
Robson, C. (2001). Real World Research. Oxford: BLACKWELL.
Raab, G., Ajami, R. A. Goddard, J. and Gargeya, V. (2008). Customer Relationship
Mnagement: a Global Perspective. Hampshire: Gower. P59-60
Ranjan, J. & Bhatnagar, V. (2009). “Principles for Successful E-CRM in
Organizations: Direct Marketing”. International Journal, 2(4), 239-244.
99
Reilly, K. & Paper, D. (2009). “The Role of Vendor in E-CRM Tool Development:
Qualitative Market Research”. An International Journal, 12(4), 404-427.
Roger, M. (2000). Loyalty.com: Customer Relationship Management in the New Era
of Internet Marketing. United States of America: McGraw-Hill.
Stone, B. & Jacobs, R. (2008). “Successful Direct Marketing Methods: Interactive,
Databases, and Customer Marketing for the Lultichannel Communications Age”.
PP586-594. New York: The McGraw Companies.
Scott, D. (2000). Customer Satisfaction: Practical Tools for Building Important
Relationships. New York: Crisp publications.
Sterne, J. (2008). E-CRM: Customer Management Strategies for E-Business [Online].
http://www.business-intelligence.co.uk/reports/ecrm/default.asp [Accessed on July
2009].
Sheth, J. N., Parvatiyar, A. & Shainesh, G. (2001). Customer Relationship
Management: Emerging Concepts, Tools, and Applications. New York: McGraw-Hill
Companies.
Sophonthummapharn, K. (2009). “The Adoption of Techno-Relationship Innovations:
A framework for Electronic Customer Relationship Management”. Marketing
Intelligence & Planning, 27(3), 380-412.
Sampson, L. (2004). CRM in Mainland China: the Start of a Challenging Journey.
China CRM Series, GreatChinaCRM.
Szwarc, P. (2006). Researching Customer Satisfaction and Loyalty: how to find out
what people really think. London: Kogan Page Limited.
100
Scullin, S. (2002). “Electronic Customer Relationship Management: Benefits,
Considerations, Pitfalls and Trends”. Proceedings of the IS One World Conference,
Las Vegas, Nevada, 3-5 April.
Taylor, A.A. & Hunter, G. L. (2002). “The Implementation of Loyalty with E-CRM
Software and E-Service”. International Journal of Service Industry Management,
13(5), 452-457.
Taylor, S. A. & Hunter, G. L. (2008). “The Impact of Loyalty with E-CRM Software
and E-services”. International Journal of Service Industry Management, 13(5),
452-461.
Weinstein, A. & Johnson, W. C. (2000). Designing and Delivering Super Customer
Value: Concepts, Cases, and Applications. Florida: CRC.
Weinstein, A. & Johnson, W. C. (2006). Superior Customer Value in The New
Economy: Concepts and Cases. Florida: CRC.
Wang, L. Q. (2008). “Customer Relationship Management in Modern Enterprises”.
Journal of Capital University of Economics and Business, 12(2), 35-42.
Wen, S. (2009). CRM Market in China. [Online]
http://www.crmguru.com/regional/cn_wen.html [Accessed 24 June 2009].
Wang, Y. Z. & Chang, X. Q.( Dec. 2006). “Analyzing Customer Relationship
Management in Internet Era”. Journal of Gansu Radio & TV University. 16(4).
76-78
Wu, Z. & Feng, Q. (Sept, 2005.). “The Development and Research of e-CRM”.
Journal of Tianjin Adult Higher Learning, 7(5), 23-25.
Xu, Y. Yen, D. Lin, B. Chou, D. (2003). “Adopting Customer Relationship
102
Appendix 1
Dear Sir/Madam,
Thank you very much for filling this questionnaire. It is designed to investigate the
situation of e-CRM in Xiwang Company from the perspective of customers. The aim
of the questionnaire is to find out the factors that influence customers‟ purchasing
behavior and investigate customer satisfaction and customer loyalty in order to
provide better service to customers and satisfy customer demands.
This questionnaire is carried out in partial complementation for the awards of
Masters Degree in information management department in Sheffield University.
This questionnaire adopts the non-tangible method that all the information is used to
complete task and be used for data statistics and analysis. No personal information
will be exposed, please choose appropriate answer based on your experience.
Thank you.
103
Questionnaire for Customers
Section A: Personal background information about customers
We respect your personal privacy.
1. Gender
Male
Female
2. Age group
Below 20
20-29
30-39
40-49
50 and above
3. Educational status
Primary education
Secondary education
Post Secondary education
University education
Postgraduate education
Above masters
4. Is your business located in China Mainland?
Yes (If yes, please specify the city and province) _____________________
No (If no, please specify it) ______________________
5. Employment status
Full time employment
Part time employment
6. How long have you been a customer of Xiwang Group Co. Ltd.?
No more than 1 year
2-3 years
4-5 years
Over 5 years
7. How long have you been on the internet?
Less than 1 year
1-2 years
3-5 years
More than 5 years
8. In the past one year, how many times have you ordered from Xiwang Group
Ltd.?
Never
Once
2-5 times
6-10 times
11-15 times
16-20
104
Over 20 times
9. Which type of customer are you?
Wholesaler
Retailer
10. What is the average value (RMB) of each order?
Less than 200,000
200,000-300,000
30,000-40,000
40,000-50,000
Above 50,000
11. Your longest payment cycle?
Advance payment
Less than 1 month
1 month-2 months
2 months-3 months
>3 month
Others___________________________
12. How do you know about Xiwang Group Ltd?
TV advertisement
Friends
Exhibition & trade fair
Press/newspaper
Websites
Others________________________
13. How often does Xiwang Group connect with you?
Each month
Every six month
Each year
Never
14. Which kind(s) of mode does Xiwang Group contact with you?
Letter
Telephone
Face to face
Others_________________________
15. Which contact mode do you prefer?
(Please circle the appropriate box to indicate your degree.
Where: 1=most preferred, 2= preferred, 3= neutral, 4= less preferred,
5= least preferred)
Telephone 1 2 3 4 5
Email 1 2 3 4 5
Fax 1 2 3 4 5
Text message 1 2 3 4 5
MSN 1 2 3 4 5
105
Personal contact 1 2 3 4 5
Section B Customer satisfaction
16. In general, how satisfied do you feel with product brand of Xiwang Group Ltd.?
Superior
Very satisfied
Average
Unsatisfied
Poor
I don‟t know
17. How important are the following factors that may influence your purchase
decision? (Please circle the appropriate box to indicate your degree.
Where: 1=very important, 2= quite important, 3= neither important/ unimportant,
4= not very important, 5= not important at all)
Product quality 1 2 3 4 5
Customer service 1 2 3 4 5
price 1 2 3 4 5
delivery 1 2 3 4 5
Payment 1 2 3 4 5
Technology support 1 2 3 4 5
Personal interaction
(i.e. communication tools)
1 2 3 4 5
18. How satisfied do you consider with the following factors?
(Where 1= Superior, 2= Very satisfied, 3= Average, 4= Unsatisfied, 5= Poor)
106
Product quality
Pre-sale and sale
Customer service
Post-sale Customer
service
Price
Payment equality
Delivery
Personal interaction
Section C: Customer loyalty
19. Will you keep doing business with Xiwang Group Ltd.?
Strongly agree
Agree
Undecided
Disagree
Strongly disagree
20. Do you recommend Xiwang Group Ltd. to others?
Strongly agree
Agree
Undecided
Disagree
Strongly disagree
Switching: Customer retention/loss
21. Will you ignore other companies even if they take promotion strategies or
provide products with high utility?
Strongly agree
Agree
Undecided
Disagree
Strongly disagree
a. Product performance 1 2 3 4 5
b. Product utility 1 2 3 4 5
a. Pre-sale service 1 2 3 4 5
b. Sale service 1 2 3 4 5
Post purchase service
a. Problem solving
b. Waiting time
1
1
2
2
3
3
4
4
5
5
a. Price 1 2 3 4 5
b. Discount 1 2 3 4 5
a. Payment tool
b. Payment safety
a. delivery speed 1 2 3 4 5
b. package condition 1 2 3 4 5
a. communication tool
b. one-to-one
communication
1
1
2
2
3
3
4
4
5
5
107
22. Will you transfer your business to other companies if Xiwang can not satisfy
you?
Strongly agree
Agree
Undecided
Disagree
Strongly disagree
23. If you have any problem or recommendation, please write below.
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_________________________________________________________________
_____
Thank you for your answering!
108
Interview the manager
Interviewer: Wang Sale manager: Mr. Ma
Wang: Good morning. I am a postgraduate student in Sheffield University. My
dissertation is e-CRM in SMEs based on the case study of Xiwang Company. I
would like to get some detailed information about e-CRM of this company.
Ma: Ok. I am pleased to answer your questions.
Wang: Could you please simply introduce the situation of e-CRM implementation in
the company?
Ma: Well. We began to carry out informatization in 2002 and realize the
informatization of financial management, based on which, we carried out the
informatization of supplying, marketing and warehouse management. Last year,
proposal for carrying out e-CRM was raised with managers‟ attention. Now, the
system is at the initial stage.
Wang: Could you tell me what problems do you hope e-CRM solve? How about the
performance?
Ma: Ok. Four problems we hope that e-CRM can help us solve four problems. Firstly,
we hope it can help control the purchasing process of pre-sale, on-sale and post-sale.
Secondly, we hope that e-CRM can help manage the important business data
including client, contacts and contracts. Thirdly, we hope that e-CRM can improve
the core commercial activities including customer tracking, refining core customers
and recovery of account receivable. Finally, it can help us increase sales and decrease
cost. Currently the company is at the initial stage that we haven‟t achieved re-set
target.
109
Wang: well. Do you support the implementation of e-CRM?
Ma: Sure. I support it.
Wang: Which one do you think can push forward e-CRM, technology or business?
Ma: I think the implementation of e-CRM needs both the tools from technology and
the rational operation from business.
Wang: What problems or difficulties have you met during the implementation of
e-CRM? If yes, what have you done to solve them?
Ma: Currently we are at the initial sage of e-CRM. There are quite a lot of difficulties.
First of all, some managers question the system that they wonder whether it can
achieve the expection of company and how long can we recovery the investment.
Many companies have impractical expection that e-CRM can not only improve the
operation status but also solve all the existing problems. However, they ignore one
point that the factor which decide the result is not technology but personnel in the
company. Secondly, implementation risk exists. E-CRM is a kind of management
innovation. All the time, sales men are used to have the idea „this is my customer‟.
However, they need change their idea into „Whether customers need me?‟ The
resistance from relevant personnel made it difficult to implement e-CRM. This kind
of resistance in fact is the power of habit. The process of innovation is the challenge
to tradition and remodel for new habit.
Wang: Do you think customer classification is important?
Ma: Yes. It is very important. The aim of customer classification is to accurately
identify who are our customers, what real demand they need, which customers
110
companies should try to attract, and which customers should be considered to be the
most important clients to maintain.
We have classified customers and still improve it regularly. According to the
practical situation of our customers, we mainly adopt two kinds of customer
classification. Firstly, we classify customer in terms of customer characteristics
including geographic factors, psychological factors, and behaviors. Secondly, we
segment customers in terms of customer value. Different customers can bring
different value for company. Therefore, we classify customers into different value
level, including large client, important client, common client, and small client in
order to focus on customer high value customers in terms of „20% customers can
bring 80% profits for company.‟
Wang: Will you change implementation methods according to customers‟
suggestion?
Ma: Our implementation mode is made together with software partner according to
group decision-making of senior managers. We are pleased to listen to good
suggestion and take relevant measures.
Wang: How do you think about customer satisfaction? How about the situation of
customer loyalty?
Ma: Aimed to deal with customers‟ suggestions and problems, we specially establish
customer service department with special hotline service. Currently customers are
satisfied with our company. Customer loyalty is basically ok.
Wang: Have you evaluated e-CRM performance?
Ma: The Company is at the initial stage and hasn‟t established the performance
111
evaluation. However, we have made relevant assess plan, which indicates that it will
be evaluated every half year.
Wang: Which factors do you think can influence customer satisfaction?
Ma: I think that product quality, customer expected quality, product value, brand
quality and brand impression are the major factors that can influence customer
satisfaction.
Wang: The last question I want to know is that whether profits and revenue have
changed before and after the implementation of e-CRM. How about the further
possible accomplished profits?
Ma: After the implementation of e-CRM, amount of amount is increased. According
to the customer information that is provided via e-CRM system, we know exactly
customer demand. More and more products are sold successfully so that sales income
is increased and marketing cost is reduced.
We predict that when e-CRM becomes mature, company will improve customer
satisfaction greatly and decrease cost in a large degree. Profit margin will increase by
about 20%.
Wang: That‟s all the questions. Thank you for your answering.
112
Appendix 2
Chinese Version
尊敬的女士/先生:
大家好!非常感谢您在百忙之中抽出时间来填写这份问卷。这份
问卷主要是为了从客户的角度调查西王集团有限公司在实行电子客
户关系管理中的情况。研究的目的是为了找出影响客户关系管理实
施的因素,并且调查该公司的客户满意度和客户忠诚度情况。以便
发现问题,然后更好的从客户的角度出发,去满足客户的需求。
该问卷是为了协助完成一份英国谢菲尔德大学信息管理学院研
究生论文。
该问卷采用不记名的方式,所有的信息只为了完成作业,作为
样本用于数据统计和分析。 不会涉及个人隐私的任何暴露和侵害,
请您放心做答。
谢谢!
113
电子客户关系管理问卷调查-----客户问卷
第一部分: 客户基本信息
1 性别
男
女
2 年龄段
20 以下
20-29
30-39
40-49
50 和 50 岁以上
3 教育背景
小学教育
中学教育
大专教育
大学教育
研究生教育
研究生以上
4 您的企业是否在中国?
是 (如果是,请指出所在省和城市) _____________________
否 (如果不是,请写在后面) ______________________
5 工作状态
全职
打工
6 您已经是西王集团的客户多久?
不到 1 年
2-3 年
4-5 年
超过 5 年
7 您已经接触网络多久?
少于 1 年
1-2 年
3-5 年
超过 5 年
8 在过去的一年中,您从西王集团订购过多少次货物?
__从没 __一次 ___2-5 次 ___ 6-10 次
__11-15 次 ___16-20 ___超过 20 次
9 您属于哪一类型的客户?
批发商
零售商
其他 ___________________
10 每次订单的平均价值是多少(RMB)?
少于 200,000
200,000-300,000
114
300,000-400,000
400,000-500,000
大于 500,000
11 您最长的支付周期是多长?
提前预付
少于 1 个月
1 个月-两个月
两个月-三个月
>三个月
12 你怎么知道西王集团的?
电视广告
朋友
产品展销会
印刷品/报纸
网站
其他__________________
13 公司多久和您联系一次?
每个月
每六个月
每年
从不
14 西王集团用那种方式联系您?
电子邮件
寄信
电话
见面
其他______________________
15 您最喜欢哪种联系方式?
(请圈出您的答案。
注: 1=最喜欢的, 2= 喜欢的, 3= 一般, 4=不太喜欢, 5= 最不喜欢)
电话 1 2 3 4 5
邮件 1 2 3 4 5
传真 1 2 3 4 5
文本信息 1 2 3 4 5
MSN/OICQ 1 2 3 4 5
人员互动 1 2 3 4 5
其他:__________________________
115
第二部分 客户满意度
16 总体来说,您对西王的产品满意度如何?
出众的
非常满意
一般
不满意
很差
不知道
17 影响您购买决策的下面这些因素中,您的满意度如何?
(请圈出您的答案
注: 1=非常重要 2= 相当重要, 3= 重要, 4= 不是非常重要, 5= 根本就不重
要)
产品质量 1 2 3 4 5
客户服务
(例如:客服交流)
1 2 3 4 5
价格 1 2 3 4 5
货物发送 1 2 3 4 5
支付方式 1 2 3 4 5
技术支持 1 2 3 4 5
人员互动
(例如:购买过程中的交流)
1 2 3 4 5
18 您对下面的因素的满意度如何?
(注: 1= 出众的 2= 非常满意, 3= 一般, 4= 不满意, 5= 很差, 6= 不知
道)
西王集团
c. 产品性能 1 2 3 4 5 6
d. 产品实用性 1 2 3 4 5 6
c. 售前服务 1 2 3 4 5 6
d. 售中服务 1 2 3 4 5 6
e. 售后服务 1 2 3 4 5 6
c. 价格 1 2 3 4 5 6
d. 折扣 1 2 3 4 5 6
c. 运送速度 1 2 3 4 5 6
d. 包装情况 1 2 3 4 5 6
116
第三部分 客户忠诚度
19 你会与西王集团一直维持贸易往来吗?
一定会
可能会
可能不会
一定不会
不知道
20 你会把西王集团介绍给其他人吗?
一定会
可能会
可能不会
一定不会
不知道
客户保留/流失
21 你会忽略其他公司吗,即使他们提供高性能的产品或服务?
一定会忽略
可能会忽略
可能不会忽略
一定不会忽略
不知道
22 如果西王集团不能满足你的需求,你会转向与其他公司贸易吗?
一定会
可能会
可能不会
一定不会
不知道
23 如果您有什么意见或建议,请写在下面
_____________________________________________________________________________
______________________________________________________________________________
_
_____________________________________________________________________________-
谢谢.
c. 线上交流 1 2 3 4 5 6
117
西王集团电子客户关系管理调查
一、 请简单介绍一下公司实行 e-CRM 的情况。
公司早在 2002年就着手信息化规划,并于当年实现财务管理信息化,
在此基础上又实施了供应、销售及仓库管理信息化,与北京用友软
件公司签订长期合作协议,初步形成了财务-供应链系统的建设;去
年以来在公司领导的密切关注下,针对 CRM 系统的建设提出实施方
案,并在用友软件的协助下,现在系统已处在运行初期。
二、 您希望 CRM 帮助您解决什么问题?绩效如何?
1、掌控企业的售前、售中、售后完整的销售过程
2、管理企业的客户、联系人、合同等重要的商业数据
3、促进客户跟踪、热点客户提取、应收款回收等核心商务活动
4、达到:提升销售业绩,降低销售成本的综合效果
CRM 绩效评价集中在两个方面:一方面对 CRM 实施过程进行评价,
评价的结果经过分析后,再反馈给企业实现实施过程的评价与控制;
另一方面对 CRM 实施产生的效果进行综合评价。目前,公司 CRM 系
统正处于运行初期,还未达到系统设立的预期目标。
三、你是否支持 CRM 项目?为什么?
我们支持 CRM 项目。
通过合理有效地实施 CRM 项目可以为企业带来以下好处:
1、提高销售额。利用 CRM 系统提供的多渠道的客户信息,确切了
解客户的需求,增加销售的成功几率,进而提高销售收入。
2、增加利润率。 由于对客户的更多了解,业务人员能够有效地抓
住客户的兴趣点,有效进行销售,避免盲目的以价格让利取得交易
成功,从而提高销售利润。
3、提高客户满意程度。CRM 系统提供给客户多种形式的沟通渠道,
同时又确保各类沟通方式中数据的一致性与连贯性,利用这些数据,
销售部门可以对客户要求做出迅速而正确的反应,让用户在对购买
118
产品满意的同时也认可并愿意保持与企业的有效沟通关系。
4、降低市场销售成本。由于对客户进行了具体甄别和群组分类,并
对其特性进行分析。使市场推广和销售策略的制定与执行避免了盲
目性,节省时间和资金。
四、您认为推动 CRM 项目的是技术还是业务?
有效推动 CRM 项目的实施既有技术方面的手段又需要业务方面
的合理运作。
五、在执行 CRM 的过程中,有没有遇到什么困难,冲突或者问题?
如果有,是怎么解决的?
CRM 项目建设是一个系统工程,在项目规划时期我们就预见到了一
些困难或难点,目前我们企业正处于 CRM 建设初期,这样那样的难
点还是比较多,举例说明如下:
难点 1:部分领导提出质疑,CRM 投资回报是否能达到企业的
期望,在多长时间可以收回?很多企业对实施 CRM 抱有不切实际的
期望,以为实施 CRM 系统后不但能够改善企业的经营状况,而且能
够解决企业的所有问题。CRM 系统只是使客户获得了一种持续提升
的管理水平和盈利的能力,但能否转换成企业效益以及多长时间转
换成企业效益则与企业的产品、团队能力有很大关系。实际上有一
点永远不会变:决定结果的永远是企业里的“人”,而不仅仅是技术
工具!
难点 2:CRM 实施风险
CRM 实施实际上是一种管理变革!CRM 的贯彻与实施,主要目
的就是改变企业营销人员、经理人员、支持服务人员做事的习惯和
方法。比如说,营销人员一直以来习惯的“这是我的客户”,这种态
度就需要转变为“客户是否需要我”。推广 CRM 的困难与其说来自
技术和管理,不如说来自身系统中的“有关人员的抵制”。这种抵制
其实就是习惯的势力。变革过程是对传统的挑战,更是对习惯的重
119
新塑造。因此说,形成一个习惯的过程,就是变革的过程;而所形
成的良好习惯,才是组织最强大的竞争力。
六、您觉得客户细分有必要吗?为什么?你们是否对客户进行细分?
如果有,是怎么样细分的?
客户细分在企业管理中是非常有必要的。客户细分的目的,就
是要更精确地回答谁是我们的客户,客户到底有哪些实际需要,企
业应该去吸引哪些客户,应该重点保持哪些客户,应该如何迎合重
点客户的需求等重要问题,进而使 CRM 真正成为业务获得成功、扩
大产品销量的助推器。
通过对客户进行分类,合理分配资源制定有针对性的营销方案,
不断地对执行的方案进行评估,及时对方案进行调整,形成一个闭
环的营销方案跟踪体系,最终实现营销的精细化管理。
我们已经对客户进行了细分并在不断完善之中。
根据企业自身客户实际情况,我们主要采用了以下二种细分方
法:
1、客户特征细分。一般客户的需求主要是由其社会和经济背景
决定的,因此对客户的特征细分,也即是对其社会和经济背景所关
联的要素进行细分。这些要素包括地理(如居住地、行政区、区域
规模等)、社会(如年龄范围、性别 、经济收入、工作行业、职位、
受教育程度 、宗教信仰 、家庭成员数量等)、心理(如个性、生活
型态等)和消费行为(如置业情况、购买动机类型、品牌忠诚度、
对产品的态度等)等要素。
2、客户价值区间细分。不同客户给企业带来的价值并不相同,
有的客户可以连续不断地为企业创造价值和利益,因此企业需要为
不同客户规定不同的价值。在经过基本特征的细分之后,需要对客
户进行高价值到低价值的区间分隔,分为大客户、重要客户、普通
客户、小客户等,以便根据"20%的客户为项目带来 80%的利润"的原
120
理重点锁定高价值客户。客户价值区间的变量包括:客户响应力、
客户销售收入、客户利润贡献、忠诚度、推荐成交量等等。。
七、您会根据客户的建议,改变实施方式吗?
我们的实施方式是经过高层领导集体决策,并与软件合作方共
同来制定的,在实施过程中我们欢迎广大客户提出好的建议,针对
好的合理的建议,我们会提出相应的吸收措施。
八、您觉得客户对您的服务是否满意?贵公司的客户忠诚度情况如
何?
针对如何处理好客户的意见问题,我们成立了专门的客户服务
部门,设立了专门的热线来支持客户的反馈意见,目前为止客户对
我们的服务是满意的。
我公司的客户忠诚度是比较高的。
我们深刻地认识到只要客户是牢固的,企业利润的大幅度上升
就是必然的。客户忠诚度是至关重要的。
1、我们加强了与客户的对话和互动;
2、建立了客户关系流程:最终用户——分析所有的客户接触点
和机会,以增加互动。让客户教你怎样去迎合他们的要求,怎样服
务客户并与他们沟通,给他们多种选择。跟踪客户的选择和行为方
式,以避免使客户两次回答同样的问题;整合所有的媒介关系,包
括销售人员,电话服务中心,邮寄及互联网。中间商——寻求增值
服务,使分销商更有效率、利润更高,或者对客户更有价值。对最
终用户的服务可以减少分销商的工作量。
3. 进行了客户评估分析,定期计算客户持有率和流失率。计算
并评估客户终生价值或客户终生利润率。而客户占有率表明了公司
的业务构成。一旦确定了基准线,就能够确定现阶段客户忠诚度和
客户保留努力的结果。
九、贵公司有没有进行过 CRM 绩效评价?如果有,结果如何?包括
121
成功的,不成功的和急需改进的方面。
我公司 CRM 系统运行现处于初期阶段,暂时还没有进行绩效评
价,我们制定了相关的评价计划,计划运行每半年进行一次评价。
现阶段我们将在如何优化规范业务运作流程;改善预支和应收
帐款管理,降低资金风险,提高配送速度、互动交流率、供货及时
率等方面进一步完善,以期达到最优化。
十、您觉得影响客户满意度的因素有哪些?
影响客户满意度的因素主要有以下几个方面:
1、产品本身质量
产品本身质量是指产品的实际性能和性价比.
2、客户预期质量
预期质量指产品在使用过程和相关的销售支持是不是能达到预
期的效果和过去服务质量的印象.
3、产品价值
产品的本身质量,预期效果,企业服务质量决定产品实际价值.是指
用户对产品(服务)性价比的评价
4、企业品牌服务质量
品牌服务质量反映了用户对近期实际感受的服务质量的评价
5、品牌印象
品牌印象指企业(或品牌)在客户心目中的形象,品牌印象能
影响用户预期、满意度及忠诚度.
十一、企业实施 CRM 后,业绩和盈利水平有什么具体变化?并预测
未来可能实现的业绩?
企业实施 CRM 后,首先销售额得到了提高。利用 CRM 系统提
供的多渠道的客户信息,确切了解客户的需求,增加销售的成功几
率,进而提高销售收入。提高了利润率和客户满意程度。降低了市
场销售成本。