Below is a list of statements regarding the possible benefits of CRM programs (both to the firm and to the customers). Assuming that you were the owner of a restaurant, you need to identify the three main benefits that the firm would receive from implementing a CRM program. And what would be the three main benefits for your customers?
Possible Benefits for the Firm
- The firm experiences more financial stability – as it has a stable, loyal customer base who regularly buys from them,
- The firm can reduce its promotional budget – as less dollars need to be spent on generating new customers,
- New products are typically more successful – as they can be more easily cross-sold to a loyal customer base,
- There is less need to compete on price – as the customer sees real value in the relationship and its associated benefits,
- Existing customers are easier to manage and require less information and support,
- It creates a sustainable competitive advantage – competitors will find it much harder to win your customers from you,
- New customers are generated from positive word-of-mouth – satisfied/loyal customers are more likely to recommend your firm, and
- A higher growth rate is likely – as long-term customers usually increase their level of purchases over time.
Possible Benefits for the Customer
- They are confident that the firm will deliver consistent quality,
- They know that they can trust the firm,
- They know that they will be able to fix any problems quickly,
- They know they can get things done faster, if needed,
- They feel comfortable in discussing/raising problems/issues,
- They receive special deals/treatment from time to time, and
- They may develop social relationships/friends.
- What do you think would be the top three benefits for the firm?
- What do you think would be the top three benefits for customers?
- Would you recommend that your restaurant introduce some form of a CRM program? Why?
- If so, what are some tactical ideas of how the restaurant could structure their customer relationship management program?