a framework for the implementation of a CRM strategy in a retail sector

Once it can do this the volume of data available is

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Once it can do this, the volume of data available is vast, which gives the remaining three stages a much higher chance of success. 3.1 Implementing CRM technology in the retail sector So far we have investigated the processes which the retail sector must go through in order to gain customer data and provide a one to one service to its patrons. The underlying theme of this should be to support the customer experience; however the physical outputs of a CRM initiative are data integration and analytics which can support marketing and communication with the customer. In all but the smallest local shop, grocery stores will have to employ some form of technology in order to perform IDIC on their customers. This section focuses on the technology strategy which the retail sector must employ in order to achieve the lower half of the CRM value cycle of figure 3, and how it fits in with the IDIC blueprint. Fairhurst in his 2000 paper, ‘ What is CRM?' [4], outlines the technology required for implementing an E-CRM strategy. The focus is a customer support centre of an online company, and the aim appears to be to integrate customer information in order to improve customer service and reduce costs. The situation we are investigating is very different, with bricks-and-mortar retail sector focussing on improving customer experience. Fairhurst’s model does not mention any specific technologies, only the roles which need to be fulfilled for CRM to be integrated and implemented. It was thus decided to adapt his model for the retail sector. An advantage of adapting this framework is that it can be linked to the strategies discussed earlier; IDIC and the CRM value cycle. The six key requirements Fairhurst identifies for the implementation of an online E-CRM strategy are: customer data storage and analysis, personalisation engines, content management, broadcast engines, transaction engines and workflow management. This was adapted for the off-line world of retail retail sectors by removing the workflow management requirement. The rationale for this is that it is the number of customers in the store at any one time that determines workflow, not who they are.
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Customer Data Content Differentiate Customise Personalisation engine Transaction Engine Broadcast Engine Customers Identify Analytical CRM Operational CRM Customer experience Interact Figure 4: Technology Design Landscape for value proposition chain Figure 4 shows the adaptations to Fairhurst’s technology model, and how the earlier strategies formulated (IDIC and the CRM value cycle) fit in with the technology. The first stage of the process is identifying the customer. This is done by the transaction engine (at the retail sector this is at the point of sale) and is in the operational CRM level since it is a point of interaction with the customer.
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