A customer relationship management approach for optical retail business.

Abstract

The aim of the present study was to explore CRM notion and examine CRM approach in terms of one particular field – the optical retail industry. As CRM methodology is broader than just a definition, a conceptual framework was used to assess CRM in an organization. The main objectives for research included choice of the conceptual framework from the already existing ones, assessment of the case company using the chosen framework, analysis of results obtained from such assessment and development of the one main proposal for the case company. Two European companies were selected as Case Companies – both were operating in the field of optical retail business, having a chain of optical retail outlets and being mainly business-to-consumer businesses. Both companies were typical examples of companies in their field and were not direct competitors to each other. The Case Company One was chosen to represent a large business and the Case Company Two - a mid-sized business. Both companies were observed within a six-month period, as well as assessed using qualitative methods. The assessment was made in order to explore their approach to CRM, and compare it to the model chosen from relevant academic literature. The rationale for the present study was the fact that optical retail industry in the countries of interest was experiencing significant amount of pressure due to the worsened economy and higher than before levels of competition. Therefore, for both companies retaining existing customers and improving weaknesses in their CRM approach was considered a great alternative to otherwise inevitable price war. Five conceptual frameworks for CRM were reviewed and The QCi or The Customer Management Model was selected. The assessment of both companies using this framework revealed that the model is suitable for the assessment of large and middle-sized businesses in the optical retail industry. Weaknesses of various significance were found in eight main elements of The Customer Management Model for each company. Comparison to another study based on The Customer Management Model showed that about a half of the businesses had similar problems regardless of their industry. After the review of results one major proposal to each case company was created