Customer Relationship Management at Castle Bingo - Case Study Example

?Castle Bingo Table of Contents Introduction 3 Castle Bingo and Benefits Relationship Management (CRM) 3 The Principles of Big Data and Metrics 5 Ethical and Legal Issues Involved With Castle Bingo 7 Conclusion and Recommendations 11 Conclusion 11 Recommendations 12 References 13 Introduction Customer Relationship Management (CRM) is regarded as an effective strategy that is mainly followed by various entities for creating, managing, retaining and strengthening loyal customer interrelations. In other words, CRM can be termed as customer-centric approach based on customer insights (Bhatnagar, 2012). In the modern day business context, the perception of CRM plays an imperative part in the success of any business enterprise in service industry. Moreover, it is an efficient tool that leverages every customer as well as enhances revenue generation opportunities and also improves customers’ confidence at large. CRM integrates marketing, service and supply-chain functions in order to achieve greater efficiency in delivering greater value to discriminating customers. Consequently, CRM improves customer services, facilitates better integration of marketing tools, increases organisation revenues and reduces costs associated with customer services by a significant level (Richards & Jones, 2008). Castle Bingo and Benefits of Customer Relationship Management (CRM) The three primary elements of CRM have been described hereunder. Operational CRM Operational CRM consists of software packages that are used to efficiently arrange inbound and outbound customers interactions. Operational CRM aid in processes related with sales, customer service, marketing and automating communications. Service automation helps an organisation to manage service operations delivered through web, contact centre and face to face. Some of the significant benefits of operational CRM to Castle Bingo may include: Sales Force Automation Enterprise marketing Automation Customer Service and Support (Bhatnagar, 2012). Analytical CRM Analytical CRM involves analysing customer vital information in order to effectively meet the marketing and customer service goals and deliver appropriate message to the right customer at right time through appropriate channel. The significant benefit of Analytical CRM to Castle Bingo may involve Customer retention Segmentation and targeting Development of new products according to the customer’s specifications (Bhatnagar, 2012). Collaborative CRM Collaborative CRM comprises the system that facilitates customers to perform various services on their own through variety of interaction channels. It renders people process as well as data together and further facilities in channelling the data along with customer related information for ensuring proactive decision making. It ensures timely sharing of information and results in enhanced customer services. The major benefits of Collaborative CRM to Castle Bingo may involve: Providing effective customer communication across different channels, Increases the efficiency of online services and help in reducing customers service costs associated with offline services and Facilitate in better access to customers data during the time of interaction with customers (Bhatnagar, 2012). The Principles of Big Data and Metrics The data driven decision-making is currently being widely recognized and is viewed to be an increasing enthusiastic aspect related with the notion of ‘Big Data.’ Big Data refers to traditional enterprise data which comprises valuable information regarding the nature of the customers that is ascertained through CRM systems, web store transactions, ERP data as well as general ledger data. Furthermore, it also includes social data such as customers’ feedback streams, micro blogging internet sites like Twitter and social media like Facebook (Dijcks, 2012). The perception of Big Data can primarily be attributed with four principles that have been discussed below. More Granular Information or Micro Segmentation The principle of micro segmentation can be related with a capacity to analyze huge amounts of data that helps to provide more personalized services to customers. Speed of Synthesis The principle of speed of synthesis is associated with an ability to quickly deliver real-time information from loads of data in order to accelerate the decision-making functions of management. Data Combination The principle of data combination is related with the capability of including multiple data sets both structured and unstructured for the purpose of providing new ideas such as forecasting of various business aspects. Automation The principle of automation is typically regarded as complicated tasks that are performed at lightning speed. The automation principle of big data can help to identify demands for products or services based on the data collected and feedback received from social media (FSN Publishing Limited and Oracle Corporation, 2012). With regard to evaluate the benefits that Castle Bingo would gain from Big Data and metrics, it can be affirmed that its principles can largely benefit Castle Bingo if it is properly distilled and carefully analyzed together with traditional enterprise data. Castle Bingo will be able to gain thorough insights related with their business activities that shall result the organisation to attain substantial growth as well as establish string competitive position at the marketplace. Furthermore, the organisation can enjoy greater innovation through proper understanding of its business and customer needs that is facilitated by big data. Moreover, identifying metrics and its proper implementations shall also help to monitor certain imperative factors that lead towards the success of the big data initiatives (Gogia, 2012). Furthermore, Castle Bingo can use social media as well as web log files from its e-commerce sites that would ultimately help the organisation to identify the customers who are interested or not towards using the organisation’s products or services. This shall further help Castle Bingo to make much effective micro customer segmentation as well as target marketing campaigns and improve the efficiencies of supply chain functioning of the organisation by a greater extent (Dijcks, 2012). In addition, the principles of big data and metrics shall enable Castle Bingo to unify large data with advanced analytics that would facilitate in solving numerous problems related with the organisation. Effective use of big data and analytics shall ensure Castle Bingo to increase its operational efficiency and reduce costs associated with its operations which will ultimately result in improved overall performance of the organisation at large. In addition, the organisation will be able to identify the behaviours of its current and potential customers that would aid the organisation to design its strategies according to the behaviours of its members and other interested parties (Yiu, 2012). Ethical and Legal Issues Involved With Castle Bingo Developments in information technology have contributed towards the emergence of various issues. Responsively, the issue of customers’ information privacy has gain considerable attention in the past few years. All business organisations performing online business or e-commerce collects information about the users or the customers that help them to enhance their business activities and meet the customer requirements effectively. This information may include personal information of the customers voluntarily provided by them such as their names, contact information and credit card information (Ministry of Economic Development and Trade, 2010). At the same time, customers are also equally concerned about the information they provide through online. Customers performing online transactions expect that their personal information is properly safeguarded and any misuse of their private information is subsequently avoided by the business enterprises (Chung & Paynter, 2002). It is anticipated that the organisations engaged in performing e-commerce activities makes the most ethical use of the customers’ information that are collected online in order to build an association of trust between the organisations performing online businesses and the customers involved in making online transactions. In this similar context, it can be argued that avoiding disclosure of customers’ information cannot be regarded as an ethical practice of business in protecting customers’ information. Accordingly, proper retention as well as making ethical use of information in current and future business circumstances is necessary for ensuring adequate information privacy (Goldberg & et. al., 2001). There exist several laws that are enacted in different countries of the world for ensuring privacy of customers’ information. In other words, it can be stated that legislations have been enacted in order to protect the customers from experiencing any sort of unethical business practice. These legislations seek the fulfilment of certain requirements with respect to e-commerce. Accordingly, these legislations require the organisations engaged in e-commerce to provide accurate information to the users about the terms, conditions and costs associated with online transaction in order to ensure that customers are able to make proper judgement and informed decision in relation to purchase products or any other concerned matter (Ministry of Economic Development and Trade, 2010). Contextually, it is required that Castle Bingo must ensure that its e-commerce website includes the accurate information about its product or services, prices, taxes, and any other charges that are apparent with the online transaction. In addition, Castle Bingo should also make it clear about the terms and conditions associated with online transactions as well as the online payment methods. Moreover, the organisation should also communicate to the online customers about any fees or charges that are applicable while availing its different services. The organisation can further use the customers’ information in future for marketing research activities, market segmentation, target marketing and relationship marketing (Boyce, 2002). In relation to the availability of large customers’ data, Castle Bingo can make effective market segmentation and offer services according to the requirements and interest of customer in future. In this regard, Castle Bingo should have efficient privacy policy in compliance with the legal and ethical framework. The organisation’s privacy policy must be simple which is to be understood by every online customer but it should be noted that simple, in general sense, does not mean incomplete information (Moor, 1991). Moreover, the organisation should collect the information that are necessary for certain activities and avoid collecting unnecessary information. Finally, the customer information stored by the organisation for future marketing should be adequately protected. Employees engaged in monitoring flow of information must ensure that customers’ information is properly stored in reliable manner and any misuse of customer information is eliminated (Office of the Privacy Commissioner of Canada, n. d.). Conclusion and Recommendations Conclusion CRM has emerged as an important component of every business in a highly competitive and changing business setting. In the ever changing business environment, customers needs and wants keeps on changing. In such circumstances, successfully sustaining business at the marketplace is quite difficult. Hence, there is a necessity for the organisations to establish effective relationship with the customers in order to identify sudden changes in customers’ needs and wants as well as preferences. This would ultimately facilitate the organisations to offer their respective products or services in accordance with the demand and the preferences of the customers and thus can sustain their business profitably (Stojanov, 2009). CRM have basically three elements namely Operational CRM, Analytical CRM and Collaborative CRM. These three elements of CRM benefit the organisations in various ways. Moreover, the implementation of CRM activities within Castle Bingo shall embrace enhanced customer service, marketing and automated communication which will ultimately contribute towards cost saving and increasing revenue by meeting the expectations of its discriminating customers. Furthermore, it shall also contribute towards increasing the efficiency of online business of the organisation. It should be noted that various information are generated and collected while performing e-commerce activities. Responsively, there are several legislations that are enacted to protect customers’ information from unethical practice of business. Hence, it shall be important for Castle Bingo to make the most ethical practice of customers’ information for ensuring effective and trusted relationship with the customers. Recommendations The role and importance of CRM has been illustrated above. It is equally important that organisations implementing CRM as one of the vital marketing tools must remain cautious and further should keep on examining the effectiveness of the CRM at regular interval. In this similar context, Castle Bingo should understand the business market, business objectives and the importance of maintaining effective customer relation in order to ensure successful CRM solutions (Salesboom.com Inc., 2013). Castle Bingo should also align and integrate all the activities within the organisation. Furthermore, the organisation should ensure that information gathered from various customers are properly grouped and analyzed before adopting any major decision. At the same time, the organisation should ensure that the information obtained is accurate and reliable enough for framing effectual policies and strategies within the organisation. It should be noted that inaccurate information may impose negative impact upon the organisation in terms of unwanted financial losses and customer dissatisfaction (Rababah & et. al., 2011). With respect to Castle Bingo’s e-commerce activities, the organisation should comply with its online code of business practice as well as enact various legislations for protecting customers’ information in an efficient manner. Additionally, the customers’ personal information that is used for conducting various marketing research should also be properly stored and any misuse of these personal information should be avoided. In addition, the organisation should provide its employees with necessary training for acquainting them with proper methods of information handling (Raab & Goold, 2011). References Boyce, G., 2002. Beyond Privacy: The Ethics of Customer Information Systems. Macquarie University, pp. 1-19. Bhatnagar, S., 2012. Customer Relationship Management in Banking. CRM - Conceptual framework. [Online] Available at: http://www.mahabank-bancon2012.in/pdf/Customer%20Relationship%20Management%20in%20Banking-32.pdf [Accessed January 14, 2013]. Dijcks, J. P., 2012. Oracle: Big Data for the Enterprise. Oracle Corporation, pp. 1-14. FSN Publishing Limited and Oracle Corporation, 2012. Mastering Big Data: CFO Strategies to Transform Insight into Opportunity. What Exactly is Big Data. [Online] Available at: http://www.oracle.com/us/solutions/ent-performance-bi/business-intelligence/mastering-big-data-cfo-strategies-1853061.pdf [Accessed January 14, 2013]. Gogia, S. 2012. The Big Deal about Big Data for Customer Engagement. Forrester Research, Inc., pp. 1-15. Goldberg, I., & et. al., 2001. Trust, Ethics, and Privacy. Boston University Law Review, Vol. 81, pp. 101-116. Ministry of Economic Development and Trade, 2010. The Legal and Privacy Issues of Doing E-Business. Protecting Privacy. [Online] Available at: http://www.ontariocanada.com/ontcan/1medt/smallbiz/sb_downloads/ebiz_legal_privacy_en.pdf [Accessed January 14, 2013]. Moor, J. H., 1991. The Ethics of Privacy Protection. Library Trend, Vol. 39, No. 1 pp. 69-82. Office of the Privacy Commissioner of Canada, No. Date. Privacy Guide for Small Businesses: The Basics. Collect and Keep Information with Care. [Online] Available at: http://www.priv.gc.ca/information/pub/guide_sb_e.pdf [Accessed January 14, 2013]. Rababah, K. & et. al., 2011. Customer Relationship Management (CRM) Processes from Theory to Practice: The Pre-implementation Plan of CRM System. International Journal of e-Education, e-Business, e-Management and e-Learning, Vol. 1 No. 1, pp. 22-27. Richards, K. A. & Jones, E., 2008. Customer Relationship Management: Finding Value Drivers. Industrial Marketing Management, Vol. 37, pp. 120-130. Raab, C. & Goold, B., 2011. Protecting information privacy. Equality and Human Rights Commission Research Report 69. [Online] Available at: http://www.equalityhumanrights.com/uploaded_files/research/rr69.pdf [Accessed January 14, 2013]. Salesboom.com Inc., 2013. Guidelines for a Successful CRM. Five Rules for Success CRM Implementation. [Online] Available at: http://www.salesboom.com/whitepapers/crm-whitepapers-Guidelines-Successful-CRM-Implementation-09-06.pdf [Accessed January 14, 2013]. Stojanov, M., 2009. Importance of Customer Relationship Management for Retail Trade. The International Conference on Administration and Business, pp. 778-784. Yiu, C., 2012. The Big Data Opportunity. Policy Exchange. [Online] Available at: http://policyexchange.org.uk/images/publications/the%20big%20data%20opportunity.pdf [Accessed January 14, 2013]. Read More