Question

Suggestions for start up company: Target, K-mart, BJs, Costco, Walmart for customer relations

1. How they should the company use customer relations management

2. What they should avoid doing in customer relations management

Comparison between Type 1 and Type 2 in customer relations ( Type 1 Regular Retail) (Type 2 Membership warehouse retail)  

No case study just how the each business strategy changes when compared to customer relations

Answer 1

1. The company in type 1 Regular Retail uses customer relations management for understanding consumer behaviour, customizing the products and services as per customer preferences, targeted retail promotions and offers, improving the customer experience and satisfaction, information sharing with customers, increasing customer engagement, loyalty and retention. The customer relations management helps in creating business intelligence about customers for effective marketing and product strategies and business growth.

Type 2 Membership warehouse retail uses customer relations management to create a loyal customer base of customers for sustainable operations as the strategy used by membership warehouse retail is collecting a minimum annual membership fees and providing regular discounts to customers in comparison to market rates. The customer relations management helps in sharing of information related to offers, promotions and discounts with customers on regular basis. Membership warehouse retail also offers other services related to travel, insurance and financial services to ts member customers.

2. Things to avoid doing in customer relations management in Type 1 and Type 2 customer relations management is to give less importance to personal response from customers. It is essential that apart from using software solutions and automated services for Customer Relations management it is essential that customer responses and feedback are given proper attention. The focus should not only be on retention of customers through membership fees as in Type 2 but also providing solutions to customer needs and focusing on customer convenience in both Type 1 and Type 2 retail. Using websites and technology interfaces for collection of customer information data should not be complicated and retailers should pay attention to not discourage customers to buy due to technical failures and errors.

It is important to have simplified solutions for customers and avoid customers getting accustomed to buy and shop only for offers and discounts unless it is the core strategy as in Type Retail 2 .