eddies new proposal 1

8/3/2019 Eddies New Proposal 1

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Huddersfield University Business School

An Assignment Submitted:

By

Adnan yaqoob(student id B0416662)

DISSERTATION PROPOSAL

On

Crm in financial institutionespecially in uk

Course Tutor: chris leighCourse Module: BMO 0082 .

Submitted at 10 th of October 2006

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TABLE OF CONTENTS

INDEX PAGE

1: Topic introduction 04

1.1: Reason to select the topic area 06

2: Aims of dissertation 06

3: Objectives of dissertation 06

4: Research questions 07

5: Literature review 08

5.1: Organizational prospective of CRM (financial inst.) 10

5.2: CRM value chain 11

5.3: Theories related to CRM 12

5.3(a) SWOT analysis 13

5.3(b) Corporate Social Responsibilities 14

5.3(c) Marketing 14

5.3(d) Identifying customer Needs 14

5.4: Findings 14

6: Collection of data (Methodology) 15

6.1 Primary data 15

6.2 Secondary data 16

6.3 Qualitative and Quantitative research 17

7: Significance and limitation 19

8: Gantt chart 209: References 21

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They may forget what you said, but they will never forgetHow you made them feel

Carl W. Buechner

1: TOPIC INTRODUCTION:

One common definition of CRM is that which helps you manage and

improve your relationships with customers. Or it can also be stated

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that, CRM is everything you do to improve your relationships with

customers and, thereby, your profitability gets improved.

Monday memo (2006)

CRM (customer relationship management) is a type of concept which is

extremely customers orientated however it is true that there is no existence

of any business without potential customers. Nowadays, businesses are more

challenging in customers prospects as it was before, that is why

organizations are getting more intact in getting more customers which is

ultimately headed towards higher profitability. Organizations use to have

concepts like Enterprise Resource Planning (ERP) and Sales Force

Automation (SFA) idea by: www.mondaymemo.net (2006) which is very

similar to the one like CRM. Although CRM is a moderated form of getting

more information from the customers experience and implementing it to

make the organization towards optimum profitability.

CRM is a kind of attitude which relates to the trustworthiness of thecustomer towards the business and getting the advantage of competitive

edge on different other services provider. Financial institutions are a high-

quality example of having well intact with customers although it is not an

easy task to implement the whole idea because it could me highly expensive

and required to take more initiatives.

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Alexander, H. Kracklauer, D. Quinn Mills and Seifert(2003)The main objectives of CRM is to manage how to focus on customers,

higher the customers will be reliable to the organization more will be the

profitability in lieu. Customers plays vital role in getting the desired targets

of the organization and if one can manage to get their customer intact with

the business then the set targets are very easy to achieve.

The following is a concise and very comprehensive definition related to the

topic found in a website stated that CRM is a kind of managing

performance:

Interactive approach that achieves an optimum balance between

corporate investments and the satisfaction of customer needs to

generate maximum profit.

Reichold, A. Kolbe, L. Brenner, W.(nodate)

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1.1: REASON TO SELECT THE TOPIC AREA:

The reason why I choose this specific topic is because initially it is very

much customer focused which is related to what we have studied in our

academic session and due to this research I would be able to explore more

what I have learnt until yet. One more reason to choose this topic is because

I intend to join any financial institutions in my future prospects and with out

being familiar with what customers want I wont be able to give them any

remarkable services.

2: AIMS:

The aim of this topic is to find out what are the ways we can come through

to the weaknesses while performing CRM in any organization or how CRM

can be improved in any financial organization keeping in mind that these

institutions have the extreme relations with the customers.

3: OBJECTIVES:

In order to be more precise and customer focused it is necessary to set some

specific objectives otherwise strategies failed to be implemented.

i. Try to find new customers and intact with existing.

ii. How to increase service and satisfaction additionally.

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iii. Ways to get compete with the existing competitors.

iv. To find out ways how to involve the staff to get more out of what is

being implementing.

4: RESEARCH QUESTIONS:

What are the techniques by which CRM could be improved in

organizations? Could CRM be backed up by the personal and professional

development if yes how? What strategies would be considered in order to manage CRM? Within conventions and laws how moral issues could be

tackled? In organizations do they determine under the prospective of

customer satisfaction and moral values? What are the key factors that could make impact on both the

organization and customers both?

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5: LITERATURE REVIEW:

Literature review is a piece of work which gives more curiosity to theresearcher to think interestingly and towards the topic area. It helps to gather

more data respectively to which point it will have to focus.

CRM fundamentally focuses on customer satisfaction according to their

needs. In the current era customers are the centre of focus in all financial

organizations which can be improved by identifying the short falls and

finding its resolutions accordingly. The reformation of financial sector in

UK has changed very much in the recent past years and due to this there is a

good need of enhancement of customers services to retain and get more

market place.

Philip Kotler & P.L. Keller discussed CRM as the process which manages

the information of individuals to maximize customers loyalties referred asTouch points. a customer touch point is any occasion on which a customer

encounters the brand and product from actual experience to personal or mass

communications to casual observations( Philip Kotler & P.L. Keller, 2006

pp.152 ). In the financial institutions CRM plays a key role to satisfy the

customers need for e.g. Centralized data base of customers accounts in

banks (any customer can check their account detail by calling in any branch

within the UK and Northern Ireland, telephonic banking (which connects the

customer to their branch or any other located point hassle free

instead of calling into bank personally), Nationwide started a new service for

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their customers only that they can obtain the money without paying any

extra charges while they are abroad).

As discussed by Peter Drucker The purpose of a business is to create

customers. In the light of his definition of business customers are veryimportant for business. Research by Frederick Reich hold and earl Sasser of

Harvard business school shows most customers gives you profit in the

second year of the business they do with you. Keeping those customers and

make depth relationship with the help of customer relationship management

will not only make business profitable but also give a lot of growth to the

business. This is very much clear in the diagram below:

Kotler, P. and Keller, L.(2006)pp 157

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According to Anderson, Kristin Customer Relationship Management is a

comprehensive approach for creating, maintaining and expanding customer

Relationships.

Anderson, Kristin.(2001)

Customers played key role in the growth of business and when we did the

literature review from different books, articles, and from journals every

bodies focus is on loyal customers, old customers and research show as well

that loyal customers or old customers which gives profit to business and the

best tools is to keep new customers and make them loyal. Its a strategy and

tool to build a depth relationship with customers. .

5.1 ORGANISATIONAL PROSPECTIVES OF CRM

(FINANCIAL INSTITUTIONS):

Buttle, F.(2004),pp.20

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As we come to know that CRM is a business strategy to collect the

information and which implements into process to generate profits. It is a

systematic approach for managing customers information which aligns

processes and technology (Federico Rajola, 2003)pp.26 . as described by theauthor:

CRM is a business strategy aiming to understand and to anticipate the

needs of existing customers and to seek new ones who might potentially be

interested in products or services offered by the financial institutions.

Fedrico Rajola (crm )pp 25

Sometimes organizations ignore a very important factor which is

organizational components while forming fundamentals of CRM systems.

Schneider, (2001).

That is why when reviewing deeply to the book context of the Author

Thompson, where he states that, in banking markets and financial

environments CRM concepts is judged as Organizational Buffer which has

the ability to protect by taken off the unsteadiness. Thompson, (1967)pp. 30

5.2 CRM VALUE CHAIN:

It is very much known fact that CRM is a very vital part not only for any

financial institution but for any organization as according to Francis Buttle

CRM is the core business strategy that integrates internal processes and

functions and external networks, to create and deliver value to targeted

customers at a profit. It is grounded on high quality customer data and

enabled by information technology. (Francis Buttle, 2004) So by going

through this definition we can analyze that CRM is a value chain process as

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it needs integration of process i.e. internal and external it also tells us about

the process and techniques which enable us of achieving good CRM, by

reviewing this topic we can analyze that the goal of the CRM is to make a

strategy which will in result help us to make a more long-lasting and profitable relationship with our customers then it further tells us as how by

applying different tools and techniques we can achieve our goal in any

financial organization.

Buttle, F.(2004),pp.40

5.3 THEORIES RELATED TO CUSTOMER

RELATIONSHIP MANAGEMENT:

The fundamental objective of this dissertation report is to come up with a

topic of interest and implement the theories we have studied so far. It

provides us a chance to express our views in the light of the knowledge andskills we developed to understand the current circumstances of the

organizations and how it can be improved? One of the suggested methods is

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to implement the proposed theories to make some changes according to the

need in order to exist in this competitive era.

Most of the module we studied during our academic year would be veryuseful in making this dissertation but the module which would be helpful for

me to make this dissertation (Customer Relationship Management in the

Financial Institutions) are as follows:

Strategic Management

SWOT Analysis

Corporate Social Responsibilities

Management Style

Marketing and Innovation Consumer Behavior

Identification of customers need

Managing and Developing Activities Continuous Improvement (Tools & Techniques)

Strategic Management

Strategic management is the process of specifying an organization 's

objectives, developing policies and plans to achieve these objectives, and

allocating resources so as to implement the plans.

Arikah,(2006)

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5.3 (a) SWOT Analysis

It is a procedure of identifying Strengths, Weaknesses, Opportunities, and

Threats of the current position in order to plan ahead to achieve the setstrategic goals.

5.3 (b) Corporate Social Responsibilities

Organizations mainly uses all our natural resources but CSR provides them a

chance to do some thing for our community for e.g. white collar crime is

exceptionally high in all around the world therefore organization should be

working ethically and provide better working opportunities to the society.

5.3 (c) Marketing

This module helped us to gather our skills for the services which is totally

new and does not exist. CRM allows the way to get more enhanced form of

data which will help to get good customer services in lieu.

5.3 (d) Identification of customers need

The basic idea behind it is to satisfy the customers according to their needs.

In financial institutions it is important to know what customer requirements

are in order to get more satisfied customer services.

5.4: FINDINGS:

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Through this literature research I come to a conclusion that there are certain

points which are still to be discovered and which I will wrap in my

dissertation paper. In some instances there are views and concepts that areabout to be explored and will be my distinctive point of learning.

6: COLLECTION OF DATA (METHODOLOGY):

In this part methodology we look on the data and by specific research we

make some decisions depending upon those datas. These data tell us what

needs to be done and what was done before so it is a utter importance that

we should know each and every aspects of datas which are available to us

the reason why, depending of these datas organisations will take there

decisions initiatives. Therefore any error in reading these datas can lead to

an organisation to a disaster.

The data can be collected in the following ways:

Primary data (primary research). Secondary data (secondary research).

6.1: PRIMARY DATA (PRIMARY RESEARCH):

By doing this kind of research a person has to collect all the information

across the topic by himself. There are various ways of collecting these

information some of them are

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Interviewing personal and individual both in organisation and with the

customers.

By analysis of the organisation behaviour to get the desire knowledge.

Primary research can be very hectic as we have to get the knowledge from

the people who are indirect concern with the organisation so this can take

time and can be tiring, that is the reason why I choose the method of

secondary research because I have chosen CRM as organisation perspectives

and not the one by customers perspectives. it is very important that we

should give very keen interest in collecting the data for secondary research,

because here the data we are collecting is off quantitative nature and is

should be very precisely sampled, if the layout or the structure of the

collective data is not understandable then it can be very difficult to get the

desire results and ultimately impossible for the analysis to make the

decision.

6.2: SECONDARY DATA (SECONDARY RESEARCH) :

Secondary research means in collecting this kind of data a person has to

involve himself in collecting all the datas by doing desk based research and

I found it easy as this kind of research suits me. I can gather the relevant

information through:

Books and e-books. Internet.

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Journal and e-journals. Magazines and newspapers. Financial reports etc.

As it is a desk based research it mainly depends upon reading the material

which will lead me to the desired information which I am looking for.

Therefore I have to go through quite a lot of books, newspapers, magazines,

journal and e-journals and any other informational and educational material

available concerning organisations and customers prospective.

6.3: QUALITATIVE AND QUANTITATIVE RESEARCH:

As from the term itself I come to know that the qualitative research is the

one which depends more on quality stuff and less on statistical figures and

numerical. Though it is a way to get the research done and on behalf of that

the decision could be made.

Qualitative research is a generic term for investigativemethodologies described as ethnographic, naturalistic,

anthropological, field, or participant observer research

James, P.Key,(1997)

As on other hand there is way called as, quantitative research that is known

by its terminology itself, the way of getting data that comprises mostly on

figures and numerical that targets possible outcomes.

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Use of advanced econometric and mathematical valuation models to

identify the firms with the best possible prospective. Antithesis of

qualitative research.

ADVFN, (2006)

It is very easy to get the difference from the table below which shows the

qualitative and quantitative research ways of getting data:

Web Source: https://bbv6.hud.ac.uk/webapps/portal/frameset.jsp?

tab=courses&url=/bin/common/course.pl?course_id=_21219_1

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7: SIGNIFICANCE AND LIMITATIONS:

When a person is working on his dissertation several actions must be taken

in order to collect the relevant data and then finally implementing the

relevant strategies on the collected datas. These action plans can be of

different natures for example: meeting individually with the customers and

to the personal working in an organisation, one can contact them via email

or by making a phone call to them, but in case of customers this can be very

difficult. Personally I will be meeting the manager of the organisation of my

choice in order to get the most relevant and precise data which will be very

much beneficial for me in making my dissertation. This will also help me toget first hand experience as I have already mentioned that I wont to join a

reputable financial institution after the completion of my MBA, although I

know that there will be some difficulties in contacting some potential

customers as people tends to avoid descriptive answers which can be

meaningless to them but are of great importance to someone else.

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8: GANTT CHART:

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9: REFERENCE:

Kotler, P. and Keller, L, K. (2006), Marketing Management, 12 ed. New Jersey: Pearson Prentice Hall

Buttle, F. (2004), Customer Relationship Management, 1 st ed. Oxford:

Elsevier

Naylor, J. (1999), Management, 1st ed. Financial times Pitman

Publishing

Rajola, F. (2003), Customer Relationship Management, 1st ed.

Springer

Schneider M. (2001): Dirty Secret of CRM: Its 20% Strategy, 80%,

Grunt Work , American Banker, 24 August, Vol. 166, Issue 164

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Thompson J.D. (1967): organizations in action , McGraw-Hill, New

york.

Arikah, (Apr, 2006), Strategic Management [online] Available at:http://www.arikah.com/encyclopedia/Business_strategy [Accessed

October 1st, 2006]

James P. Key, (1997), Qualitative Research, [online] Available at:

http://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/new

page21.htm [Accessed 3rd October, 2006]

ADVFN, (2006), Qualitative and quantitative research, [online]

Available at: http://www.advfn.com/money-

ords_term_8831_Qua n titativ e _research.html , [Accessed 5th October,

2006]

Anderson, Kristin, (2001), Customer Relationship Management.Black lick, OH, USA: McGraw-Hill Education Group, 2001. p 2

[online], Available at: http://site.ebr a ry.com/lib/uo h /D o c?

id =5003094&p p g=15 , [Accessed 6th October, 2006]

Alexander H, Kracklauer, D. Quinn Mills, and Seifert, (Oct 2003)

Collaborative Customer Relationship: The customer management

concept , [online] Available at: http://books.google.com/books?

vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots

=aDpPZNjzjr&dq=diagram+of+customer+relationship+management

22
http://www.arikah.com/encyclopedia/Business_strategyhttp://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/newpage21.htmhttp://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/newpage21.htmhttp://www.advfn.com/money-ords_term_8831_Quantitative_research.htmlhttp://www.advfn.com/money-ords_term_8831_Quantitative_research.htmlhttp://site.ebrary.com/lib/uoh/Doc?id=5003094&ppg=15http://site.ebrary.com/lib/uoh/Doc?id=5003094&ppg=15http://site.ebrary.com/lib/uoh/Doc?id=5003094&ppg=15http://books.google.com/books?vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots=aDpPZNjzjr&dq=diagram+of+customer+relationship+management&sig=hGqQpJEoap_88kSdm5WK9J3uJPohttp://books.google.com/books?vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots=aDpPZNjzjr&dq=diagram+of+customer+relationship+management&sig=hGqQpJEoap_88kSdm5WK9J3uJPohttp://books.google.com/books?vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots=aDpPZNjzjr&dq=diagram+of+customer+relationship+management&sig=hGqQpJEoap_88kSdm5WK9J3uJPohttp://www.arikah.com/encyclopedia/Business_strategyhttp://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/newpage21.htmhttp://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/newpage21.htmhttp://www.advfn.com/money-ords_term_8831_Quantitative_research.htmlhttp://www.advfn.com/money-ords_term_8831_Quantitative_research.htmlhttp://site.ebrary.com/lib/uoh/Doc?id=5003094&ppg=15http://site.ebrary.com/lib/uoh/Doc?id=5003094&ppg=15http://books.google.com/books?vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots=aDpPZNjzjr&dq=diagram+of+customer+relationship+management&sig=hGqQpJEoap_88kSdm5WK9J3uJPohttp://books.google.com/books?vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots=aDpPZNjzjr&dq=diagram+of+customer+relationship+management&sig=hGqQpJEoap_88kSdm5WK9J3uJPo


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&sig=hGqQpJEoap_88kSdm5WK9J3uJPo , [Accessed 3rd October,

2006]

Reichold A, Kolbe L, Brenner W, (no date), PERFORMANCE MEASUREMENT OF CRM IN FINANCIAL SERVICES , [online]

Available at: http://66.102.9.104/search?

q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/o rg/iwi/iwi_pub.nsf/wwwPu

b lRecentGer/30FE4CBAD9E0A387C1256EF300791D44/%24file/P

M%2520in%2520CRM%2520of

%2520FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en

&gl=uk&ct=clnk&cd=13 , [Accessed 4th October, 2006]

Monday Memo, (2003), Customer Relationship Management, [online]

Available at: http://www.mondaymemo.net/010507eat u re.htm ,

[Accessed 4th October, 2006]

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http://books.google.com/books?vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots=aDpPZNjzjr&dq=diagram+of+customer+relationship+management&sig=hGqQpJEoap_88kSdm5WK9J3uJPohttp://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://www.mondaymemo.net/010507eature.htmhttp://books.google.com/books?vid=ISBN3540002278&id=crNvpe60UIcC&pg=PA4&lpg=PA4&ots=aDpPZNjzjr&dq=diagram+of+customer+relationship+management&sig=hGqQpJEoap_88kSdm5WK9J3uJPohttp://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://66.102.9.104/search?q=cache:z9beCoJ0n7gJ:web.iwi.unisg.ch/org/iwi/iwi_pub.nsf/wwwPublRecentGer/30FE4CBAD9E0A387C1256EF300791D44/$file/PM%20in%20CRM%20of%20FS_IWI_HSG_final.pdf+definition+of+crm+in+banks&hl=en&gl=uk&ct=clnk&cd=13http://www.mondaymemo.net/010507eature.htm

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