VIETNAM NATIONAL UNIVERSITY, HANOI SCHOOL OF BUSINESS NGUYEN THI THANH TU A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT OF ILA Major: Business Administration Code: 60 34 05 MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr. Tran Doan Kim Hanoi – 2011 TIEU LUAN MOI download : skknchat@gmail.com TABLE OF CONTENTS ACKNOWLEDGEMENT. iv TABLE OF CONTENTS. vi LIST OF FIGURES.
ix LIST OF TABLES. The thesis title. The thesis necessity. Scale of sample.
Type of research. Data sources and Processing. The thesis structure .5 vi TIEU LUAN MOI download : skknchat@gmail. Conception of Customer relationship .1 Root of relationship .2 Characterize of relationship.3 Relationship – value of company.
Customer relationship management (CRM) .1 Definition of CRM .2The use of CRM during times. The importance of CRM toward corporations .1 Benefit of CRM .2 CRM success factors. Basic model of CRM. ANALYSIS AND ASSESMENT ON CUSTOMER RELATIONSHIP MANAGEMENT AT ILA .1 Introduction about ILA .2 Assessment on Customer relationship management in ILA .1 Research method description.2 Description of the Research process .3 The research survey and results.
Current loyal programmes .51 vii TIEU LUAN MOI download : skknchat@gmail.com CHAPTER 3 RECOMMENDATIONS TO IMPROVE THE CUSTOMER RELATIONSHIP MANAGEMENT AT ILA .1 CRM – Training programme for ILA people – Create a CRM view .2 Improve Customer relationship software .1 It is not necessary to use complicated solution when simple solution does .2 Employees at all level can collect information .3 Tools should be customer-employee friendly .4 Report data need to be used, use data reported. Applying CRM model in improving CRM in getting, maintain and growing customers.1 CRM in getting and growing customers activities. CRM in maintaining customers – Building relationships .4 Metric for measuring the success of CRM .80 viii TIEU LUAN MOI download : skknchat@gmail.com LIST OF FIGURES Figure 2. 2The interest in CRM between Academic and Business departments.
3 ILA's perception about CRM. 4 The benefit of CRM for business operation .5 Criticise of CRM from Business group .6 Satisfaction about ILA's communication .7 Satisfation about loyalty programme .8 Judgment ILA's problem solving .9 New sales based on programmes .10 Re-enrolment based on programmes .11 Sources to receive complaints .12 Times to solve problems. 13 Satisfaction about problem solving .51 ix TIEU LUAN MOI download : skknchat@gmail.com LIST OF TABLES Table 2.1 Number of Training centres. 2 Number of responsed questionnaire.3Tools to get ILA information .4 Visitors based on programmes .5 New sales based on programmes.
49 x TIEU LUAN MOI download : skknchat@gmail. The thesis title A study on Customer relationship management of ILA 2. The thesis necessity ILA was established in 2000 in Ho Chi Minh City and opened Training Centre Hanoi in 2007. After four years of operation, ILA Hanoi has not been known on a large area.
Thus, attracting new students is very difficult without the help from the marketing department of Head office. Therefore, in order to stabilize the company‘s revenue, it has become more urgent to make the existing customers more loyal to ILA. Thus, it is a necessity to have a suitable system of managing customers to get the loyalty from the existing customers of ILA, to remain the service quality and fulfill the programme design, to motivate the employees to contribute for the customer relationship management of company honestly. Having been operated well but ILA Hanoi is coping with many difficulties from competitors.
All the plausible reasons above lend me strong grounds enough to choose the topic: ―A study on Customer relationship management of ILA‖ for my MBA graduation thesis. Objectives The objectives of this thesis are: (a) Review and summarize the theory of Customer relationship management (b) Apply the reviewed literature to analyze and access the managing customer relationship in ILA now 1 TIEU LUAN MOI download : skknchat@gmail.com (c) Propose some recommendations to enhance the customer relationship management in ILA, contributing to the tangible and intangible profit of the company 4. Scale of sample Sampling unit: ILA staff, current students and alumni Sampling size: This thesis only does the research on ILA Hanoi branch including 01 Academic manager, 01 Training center manager and teachers and staff, 250 students and parents who chosen randomly. ILA staff 50 ILA current student 200 ILA alumni 50 Sampling process: During 3 last months, the author conducts the interview (both collecting questionnaire and directly interview) 5.
Type of research The writer chooses the type of research is analytical because analytical research often extends the descriptive approach to suggest or explain why or how something is happening. Reminds about descriptive, descriptive research can be used to identify and classify the elements or characteristics of the subject. With the combination of descriptive and analytical research with analytical plays a main role, the author locates and identifies the different factors (or variables) involved. Quantitative techniques are most often used to collect, analyze and summarize data.
2 TIEU LUAN MOI download : skknchat@gmail. Research approach The author urged to identify the main variable which causes low revenue at ILA Hanoi. Due to the large range of factors, the author collected facts and figures to find out specific problems. Quantitative is very supportive.
Although the quantitative is harder to design initially, the writer still apply it because it brings highly detailed and structures and results can be easily collated and presented statistically. To well prediction, the author also use qualitative research. It is more subjects in nature then quantitative research and involves examining and reflecting on the less tangible aspects of a research subject. Data sources and Processing Primary data was collected from questionnaire and interview.
Secondary data has been performed by research of documents, annual/quarterly reports of ILA and internet sources. The author conducts this research by collecting both primary and secondary information. To analyze the operating situation, the author use secondary with filtering the useful information to have the big picture but supportive detail. This data is not only for this research, the author has the ambition to use them for our suggestion with the Board of director because it is from the real situation.
Research method Case study Survey method using questionnaire, Interview focus group, Desk research method was applied in this paper. Research questions (a) Which theories can be applied in Customer relationship at ILA (b) What current situation of Customer relationship management at ILA 3 TIEU LUAN MOI download : skknchat@gmail.com (c) How to improve Customer relationship management at ILA 10. Significance By reviewing the theory of customer relationship management, this research benefits ILA in recommendation to apply method of increasing loyal customers, from that increase the reputation and improve the revenue, which contribute to the company‘s development. Limitations The study is limited in the sense that small scale of sample in interview and questioning.
Furthermore, the method of managing CRM requires a certain standard of technology which meets some requirement in restructure and software. Finally, this thesis just runs the research on products offered to individual, not corporate field; the profit flow from corporate party counted in this thesis is eliminated. Thus, the solution applicability for other English training centers may cope with certain difficulty or limitation. Expectation The new kind of managing relationship between company and customers is assessed and some appropriate recommendations are proposed.
The same methodology can be applied in the scenario of other companies in inspection industry with little adjustment. Disseminations The result of study will be useful for operation of ILA in particular and for other English centers in general. Many new services project might apply the method of research and the recommendations, the conclusion of the study, from which they can get useful information before starting new plan. The frame of reference on the other hand could be interesting for new customers when they have to find the English centre for their improvement of learning English process in future.
4 TIEU LUAN MOI download : skknchat@gmail.com The findings in theory will help both parties to reach the right target in supplying English training service and being satisfied by service quality. Follow-up Further study will be taken on improvement of implementation customer relationship management based on the experience and achievements of using and perfecting in large range. Other way of study will be analyzing the impact of the competition of other English centers and require the steps of avoiding and get over the unexpected impacts. The thesis structure The thesis is started with the introduction part, followed by the three chapters and the conclusion part: Chapter 1: Literature review Chapter 2: Analysis and assessment on the customer relationship management in ILA Chapter 3: Recommendations to improve the customer relationship management in ILA 5 TIEU LUAN MOI download : skknchat@gmail.
Conception of Customer relationship 1.1 Root of relationship To understand customer relationships, should go back to the basics-back to the social psychology origins of interpersonal relationships, which James Barnes and Daphne Sheaves did in their book ―The fundamentals of relationships‖. Their conclusions about what contributes to the development and strength of interpersonal relationships are just valid in allowing us to better understand what customers want in their dealings with businesses and other organizations. A relationship in its simplest form and as understood by customers is based on feelings and emotions. However, many customers are exhibiting functional loyalty; there is no emotional connection in this case1.
Some companies follow very well this guidance. For examples, Dell Computers invites customers to specify exactly what they want in a computer and delivers a custom-built one in a few days. Proctor & Gamble (P&G), on its Reflect.com website, allows someone to specify needs for a shampoo by answering a set of questions. P&G then formulates a unique shampoo for that person.
Levi's is now able to produce customized jeans that are based on a person's measurements. Those companies know what their customers want and focus on the thing they are good at best. From that, their customers feel they are respected from their favorite brands. Katherine Lemon with Don and Martha in their working paper ―Managing the customer lifetime value: The role of learning relationships‖ said that learning relationships brings two benefits: 1 Sheaves, Daphne E.Barners "The fundamentals of Relationships: An exploration of the concept to guide marketing implementation".
Advances in Services marketing and management, Vol 5. Bowen and Stephen W.Brown, London, JAI Press Inc. 6 TIEU LUAN MOI download : skknchat@gmail.com The customer learns more about his own preferences from each experience and from the firm‘s feedback, and is therefore able to shop, purchase, and handle some aspect of his life more efficiently and effectively than was possible prior to this relationship. The enterprise learns more about its own strengths and weakness from each interaction and from the customer‘s feedback, and it therefore able to market, communicate, handle some aspect of its own tactics or strategy more efficiently and effectively than was possible prior to the relationship2.
In conclusion, the root of any relationship is to satisfy the interest of both parties. Relationship between customers and enterprises is the root of CRM that helps enterprise increases its value. The reality is that becoming a customer-strategy enterprise is about using information to gain a competitive advantage and deliver growth and profit. Enterprises need to decide early on which customers they want to have relationships with, which they do not, and what type of relationships to nurture.2 Characterize of relationship The most important issue for us to consider is how well our own definition of relationship helps companies succeed in the ―customer dimension‖ of competition.
Before do any CRM, companies should characterize relationship to come to the least risk decision. Don and Martha listed some of the distinct qualities that should characterize a relationship between an enterprise and a customer3. 2 Katherine Lemon, Don Peppers, and Martha Rogers, PhD, "Managing the Customer Lifetime Value: The role of learning relationships," Peppers & Rogers Group white paper series, 1998.