Relationship Management Relationship Management How Wal-Mart Implements Relationship Management relationship management relates to a way in which a company achieves its goals while at the same time satisfying customers’ needs and wants (Krishna, 2010). It provides the basis for dealing with both internal and external pressures in the business. It looks in matters affecting customer relation and addresses the issues, which might involve automation of customer service and managerial systems. Customer Relationship Management involves attracting customer to the business through terms and handling, satisfying and analyzing customers. Wal-Mart, founded by Sam Walton, is one of the most famous largest discount department stores and chain of warehouse stores.
Wal-Mart has managed to implement customer relationship management by offering customers with goods they wanted wherever they were at that time, marketing and training of employees. This system involves the use of website such as wallmart. com and applications in ordering. Wal-Mart has highly structured in dealing with customers and advanced supply system using vendor-managed system. In addition, they use technology to monitor their inventory and restock shelves enable timely supply of products. How Strategy Works For Wal-Mart Sam Walton applied analytical CRM through analyzing the market prices and customer needs then decided to provide the goods at the lowest possible prices achieved by directly sourcing goods directly from manufacturing companies.
The company also developed highly structured supply system through Vendor Managed Inventory (VMI). The system has enabled strategic partnership with vendors as they offered lowest prices and got long-term and bulk purchases in return. This collaboration was largely, made them more successful. In their supply chain, they also used cross docking as an inventory tactic, which eliminates insufficiencies, keep inventory and transport costs low.
The use of technology in restocking and monitoring inventory reduces cost. By use of technology, the company is able to predict demand, create effective transportation system, service response logistics, and manage customer relations. Wal-Mart has also implemented the use of universal bar code for products, which enable easy analysis and restocking. Type of CRM Wal-Mart Use There exist three main forms of CRM, which includes collaboration, analytical, and operational customer relationship management (Payne, 2012). Wal-Mart use collaboration CRM in improving their services to their customers through feedback obtained from using Wal-Mart shopping software, website, email, and customer call center.
These feedbacks assist the company in knowing how to make their services and products better. The company has email address and call line from which customers can send complain or ask for assistance. Wal-Mart uses operational CRM to help their customer and meet their needs. Wal-Mart uses website in marketing to inform customers of discounts and products available in their stores. Improvement in shopping at Wal-Mart stores using software is another way the company has implemented operational CRM.
The Wal-Mart software such as Wal-Mart Digital photo manager is helpful in improving customers experience in ordering goods from any Wal-Mart store in their locality. The free application is compatible with personal computers having variable operating systems and makes shopping from the company stores easy and convenient. Smartphone application is also available to interact with shopping platform in the stores. In addition, Wal-Mart uses analytical customer relation management to predict demand for specific goods. Using analytical CRM enhances value of both customer and the company. It provides basis for implementation general CRM.
Predicting inventory levels also uses data from each store to know the demands of certain products in specific region. Using the information, the company may decide to market products that are not moving. It is imperative to note that pricing and offering of the best discounts uses information obtained from analytical CRM to attract more customers to the stores. Information can also show marketing effectiveness to a product. By using analytical CRM and implementing needed measures, the company has managed to outdo competitors such as Kmart and Sears.
Effectiveness of CRMs applied The use of innovative technology has assisted the company in implementing operational, collaborative and analytical CRM hence achieving the company’s goals. The implementation helped in reducing the operation costs and lowering the prices at which customers buy products. Increase in number of customers and profit is a measures effectiveness of implementation of CRM in the company progress. Customer number and profit margin of the company are on steady rise. The company has gained customer loyalty from majority of the population in places they are located due to improved customer service from company employees and low prices.
Operational CRM from purchases using apps and picking the item from the tore within one hour shows the efficacy of CRM. Time it took to implement CRM From 1980s, Wal-Mart had already started using analytical and operational customer relation management. Through interaction with customers, they noticed that if they had reduced the price of goods then they would have better customer relationship management. This further led restructuring of supply chain to get goods directly from the vendors at discounted prices.
Wal-Mart also implemented collaboration CRM during its establishment by allowing customers to give feedback on the prices and any problem for better operations. By implementing various CRM, Wal-Mart has emerged as one of the most successful stores worldwide (Alexander and Turner, 2013). References Alexander, David, and Turner, Charles. 2013. The C. R.M Pocketbook. Alresford: Management Pocketbooks. Krishna, Havaldar. 2010. Business Marketing: Buyer-Seller Relationship. New Delhi: Tata McGraw Hill Education Private Ltd. Payne, Adrian. 2012. Handbook of CRM. London: Routledge