INTRODUCTION
Customer relationship management (CRM) is very important these days. Customer
relationship management is a planned and structured concept whereby it manages the
relationships with customers. A CRM tool can be used by a company to manage customer
relationships in a structured and organized way by using software. It is all about whether a
customer will stay loyal to you or not depends on how a company treats its customers.Hence,
customer relationship management is very important to a company to retain its customers, while
getting new potential customers. Therefore, in order to do so, a customer relationship software is
used.
What is a customer relationship management software? Customer relationship
management software is used to keep customer information and documents in a well manner into
a single CRM database. This way, business users can access to the information and mange it
easily. Besides that, CRM software can even be used to record customer interactions such as
through social media, phone calls, email and other channels.
In section 2, IDIC model will be chosen and further discussed in Section 2. IDIC model
consists of 4 states, which are the “Identify”, “Differentiate”, “Interaction” and lastly,
“Customization”. While in Sectin 3, Chatime will be chosen as the company topic, applying the
IDIC model into it. The reason for choosing Chatime as the topic in this assignment is because
Chatime is a very well known soft drink company in Malaysia and people love to drink it,
especially the Pearl Milk Tea.
SECTION 1: LITERATURE REVIEW
1.1 General Concept of CRM
1.1.1: What is CRM?
As mentioned previously, CRM is a method involving understanding the customers
behavior though intense communication with them, in order to improve performance whereby it
is used to attract customers increasing their loyalty and profitability (Swift, 2000 , p.p. 12-13).
The organization can then able to treat its customers on unique and individual basis by using
CRM approach (Bose, 2002). Through CRM, new opportunities and improvement of customer
retention, satisfaction and value can be identified easily (Grant & Anderson, 2002). Besides that,
CRM involves process of learning the customer behavior such as purchasing behavior and then,
do anything in order to satisfy them and exceeding their expectations (Nickels ,2008). Lastly,
CRM can be used to expose to the customer information, including the wants and needs of the
customers. Through this, close relationships with the customers can be established, hence engage
into long term business partnerships and vendor/business relationships (Dickie, 1998).
1.1.2: Customer Relationship Life-Cycle.
When customers use and committed towards the supplier’s services while the supplier
maintains the commitment, therefore customer relationship can be developed over time. Then,
when the relationship gone deeper, marketing will focus on maintaining and developing the
relationship, rather than the introducing of services at the early stage (Ylikoski ,2000). Customer
relationship life-cycle is divided into four phases, which are obtaining, capturing, increasing and
maintaining the relationship whereby each of this stage has its own attributes (Mäntyneva 2001,
18). At the first stage, usually supplier has little information on customers. Hence, supplier has to
put in extra effort to knowing the customer needs (Mäntyneva ,2001). After the client has been
