Customer Relationship Management
Customer relationship management (CRM) is a concept concerned with practices, approaches, and innovations applied by organizations in administering and evaluating customer relations and information across the customer cycle. The main objective of CRM is to enhance business relationships with customers, improve customer retention rates, and raise the sales margins. The case study focuses on the Tudor House problem in which a client complained about getting a wrong order as well as poor treatment from the company. In this particular case, the unsatisfied client relayed his dissatisfaction on social media. This issue exploded on Facebook where it was fuelled by a national food group that attracted even more attention. Handling such marketing crises demands the combination of strategic approaches and experience with customers.
Evaluating the extent of the situation as well as the implications of the client grievances will offer a better understanding of the role played by customer relations management. Customer advocacy is a major part of any organization’s success, and the Danish Delicatessen is no exception. They rely heavily on the recommendations of repeat customers to build a strong and positive reputation (Buttle, and Maklan 97). A negative review by one customer is detrimental to the future of the bakery and by extension, Tudor House. Resolving the issue can involve making one of two strategic decisions. One of the solutions would be to ignore the client situation including the complaints as well as the Facebook discussions. Sita Sen, the associate marketing director, supported the idea that most of the young people actively engage in social media have a short attention span. However, this decision can be risky since the bakery’s primary product is consumed by a large number of consumers. While not all the complaints made by customers are legitimate or substantial, it is necessary to evaluate each complaint in detail. It is possible that the complaint by one customer is replicated by other people, which lengthens the marketing dilemma for Tudor House.
The other alternative is taking an active approach in dealing with the problem, which is the preferred solution since it will benefit the organization’s profit margins and reputation in the public realm. First, the management team can tackle the Facebook situation with the intention of changing the trend of the discussion. Currently, Tudor House is experiencing negative publicity and the management can translate this into constructive interactions. Social media is the new platform for exchanging opinions, and information and the management need to acknowledge and exploit this opportunity (Buttle, and Maklan 45). CRM holds several solutions that take advantage of the existing organization infrastructure to maximize the customer experience. Tudor House can use their digital marketing team to rectify the situation. Normally, this might involve something simple as making a public apology and reimbursing the affected customer. Strategies that are more elaborate can involve starting an online campaign to reverse the negative reputation.
In conclusion, large organizations experience the problem of addressing all the customer complaints that they receive on a daily basis. This customer traffic demands a massive investment in terms of human resource staff as well as resources, which can prove to be challenging and expensive in the long term. Many other approaches exist that are less capital intensive but still generate impressive outcomes for the organization. Embracing different elements of CRM assist in the realization of an improved working relationship between Tudor House and other customers.
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Buttle, Francis, and Stan Maklan. Customer Relationship Management: Concepts and Technologies. London: Routledge, 2015.
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