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BCO6604 - Customer Relationship Management Assignment - Paper, Victoria University, Australia

Prepare a short paper that briefly outlines the relevant and up-to-date issues associated with your chosen CRM topic.

Topic - Customer Relationship Management in the Service Sector


Executive Summary

"Customer Relationship Management In-Service Sector" has been a revolutionary approach in the service sector. The service sector main priorities are their customer. The customer needs to be treated like kings. In the service sector, the CRM significantly implies all over as the CRM in service sectors significantly means on the services of the customer. In this reporting context, we have described the possibilities of CRM in the service sector that how CRM influences in the service sector and what is the strategy of CRM in the service sector, the benefits of the service sector, the challenges of the service sector, the technological aspect of the service sector.

So, we have tried to complete all the aspects of customer relationship management in the service sector and how the services are being implemented to the customers.


Customer Relationship Management means understanding the client wants and improvement of the knowledge is the solution to the client maintenance, the association increased and productivity. In result though equally present and potential clients are significant to an industry, to keep one obtainable client is 5 to 6-time extra price efficient than drawing one fresh client.

Customer Relationship Management in the service sector is widely accepted as the relation among the association as well as the clientele. The customer relationship management system needs to implement their ideas in the service sector. The service sector consists of banking, insurance, hotel sectors. In these sectors, the main focus is on the customers and their liking. Customer servicing is central to customer relationship management. (Youssef C., Abbar H., 2017 p-290)

Customer Relationship Management turns into a constituent fraction of industry plan and is not measured merely as an advertising instrument. The idea ropes organization choice creation, while by the available data in the association as well as, more profoundly, the use of data skill for the advertising agenda of the association. Like manager in an organization of different industry, they adopt CRM strategy to boost presentation, encourage improved organization performance and get a better association with the clientele. The object of the learning is to grow developed considerately of Customer Relationship Management, as well as its benefit is given to employees within different sectors. (Badwan J. & et al., (2017) p-20)


A brief analysis of the Literature review

Customer Relationship Management is a policy or a procedure which allow the organization to recognize, obtain, keep and care for gainful clients by structure and upholding an old association with the clients". The Customer Relationship Management meaning goes after from association advertising as well as draw out the principles and plan of associate advertising with severe stress on client relationship twisted keen on a reasonable request.

Customer Relationship Management in the Service sector mainly joins 3 basic dimension sizes of organization strategy, philosophy, and technology. These service sectors help in customer relationship management to complete these factors and also helps to enrich the customer relationship with the customers from the organization. Withinaddingofachievement of Customer, Relationship strategy relies on top ofcorrectstabilityamid3significantmanagerialcapital, people, technology, and processes. Merely by operational efficiently by these three properties, the association resolved to employ Customer Relationship Management to attain an elevated level of client approval, retention, and faithfulness. (Badwan J. & et al.,(2017) p-21)

Strategies for Implementing CRM in the business field

As we have already stated what customer relationship management is in the previous paragraph, here, we will be discussing the strategies that CRM can imply in the field of service sectors.

  • Customer Knowledge: inside a wide area of information system client information have acknowledged modest notice through the meeting, supervision and division client data and information can be precious spirit redaction for the association. A lot of of researchers classify clients information into three groups (1) information for clientele that is given to clients to assure the necessitate of information concerning goods, service and extra significant matter; information concerning clients which deals with information about clients backdrop, incentive and first choice: information pertaining to and as of clients is necessary for nonstop development in a lot of managerial processes such original produce growth and client examine. Data for the client is required to hold client relation and please client information wants. The customer service is needed very much so that the customer stays satisfied with the services provided in an organization. (Khodakarami F., ChanY.E.,(2014) p-29)
  • Customer Loyalty: It is almost certainly the top events of the plan in any association. The growth, preservation, and improvement of client faithfulness remain the middle centre of mass of the company. Faithful clients help the company to inferior advertising expenses, ask for additional clients, efficiently add to market place split and are keen to disburse the equality process. Improvement of client faithfulness is a focused area among advertising researcher. Faithfulness is divided in stipulations of service faithfulness and brand faithfulness. Service loyalty explains to a particular amount where a client display recurring purchase performance from a service supplier, presenting an optimistic attitude towards the supplier and thus considers using their services of the supplier as the want arises. Whereas in product faithfulness the behaviour result of client favourite of an exacting product or assortment of similar product over a span. In customer relationship management in the service sector client loyalty is very important. (Nyadzayo M.W., Khajehzadeh S.,(2016) p 263-264)
  • Service quality: The service quality is described as an in general judgment concerning the intensity of service supplier presentation. The excellence of the service marks the aptitude of the company to decide clients prospect properly and bring the service on a height that determination at previous gets together that prospect. There are some dimensions that the service excellence must comprise (i) dependability: as long as clients with correct examine the primary around (ii) receptiveness: the workers readiness to help the clients, rapidly react to the needs and notify the client at what time the service will be made (iii) pledge: the client polite actions and information of the service company products and services (iv) understanding: the client considerate of client difficulty and effort to carry out actions with purchaser top attention in intellect (v) tangibles: the bodily prompt as amenities, gear used and the workers look. These are the service quality the organisation provides to the customers. The service of the customers is very needed in the customer relationship management in service quality. (Nyadzayo M.W., Khajehzadeh S., (2016) p 263-264)


The strategy of customer relationship management is applied to the Starbucks Company. Here we will look at those details how Starbucks has implied approach in their business to grow out.

The strategies which have been applied by Starbucks to increase their business strategies is that they started relationship marketing in relationship marketing it means to enhance, attract and maintain that relationship. It is completed through a simple swap and the completion of the assure. This comes near highlight the growth and improvement of the association over the client existence series.

Customer Relationship Management: the procedure of running the complete details concerning the person clients and cautiously running all the client's service release or client associates to exploit out the client devotion.

These are the strategy used by Starbucks to enhance their business and to be top among the companies. (Impact of CRM on Customer Retention:, (N.D.))

Benefits of Customer Relationship Management in the Service Sector.

Many profits of CRM or Customer Relationship Management we will be discussing here some of the benefits in here in details

1. Improve Customer Satisfaction: The significant advantage of utilizing a CRM is civilizing client approval. With this plan, every transaction connecting repairing advertising, and advertising the goods and services to your clients can be carried out in a prepared and a systematic method. You can give an improved check to clients to getting better sympathetic to their subject. For instance, if you require to decide a matter for a client, your legislative body will be talented to get back all movement about that clients, counting previous purchase, partiality and something also which helps to result in an answer rapidly. In the method, you can be given constant criticism as of clients concerning the products and services. The customer service always be needed to improve in the service sector (Perfect Mind, (2019))

2. Improve Customer Retention: Using a CRM plan in your industry will get better the client withholding rates that frequently translate to the augmented income of the association. By collecting the data, the team can proactively reach to the content clients at an exact instant to give confidence do again buy. The significant factors are to retain customers in the service sector because without customers; they are no-on. (Perfect Mind, (2019))

3. Better Internal Communication: follow the CRM plan helps in structure an improved message inside the corporation. Distribution information of the client within a different department will allow you to labour as a side and help observe client knowledge one of the profits of CRM. Every worker will talented to reply to client question. Inside performance, a robust and knowledgeable side, resolve help augment organization competence in general and present an improved service to the clients. The next step would be the communication between the customers and the staff or organization as it also helps in the service sector of customer relationship management. (Perfect Mind, (2019))

4. Optimise Your Marketing: The next benefit of CRM is besieged and cost-effective advertising agenda. The considerate of client requirements and performance will be talented at recognising the right occasion to endorse the product. A Customer Relationship Management will assist in sectioning your clients and providing an insight which is most gainful client group. With using the data, the corporation can set up pertinent endorsement to the group and carry out them at the correct instance Optimizing the advertising wealth in this way it resolves to give the best likely possibility of growing the income. Optimising the marketing would be a good as it will lead to an increase of the customers in the service sectors(Perfect Mind, (2019))


The benefits of CRM can be studied through the use of Apple is how they have used that resources. The Apple center leading let clients to assemble directly with the technicians as well as talk about the problems as it helped Apple to grow as the company and the benefits they have been driven from the use of CRM is that they have increased their brand value and also established them as the leading company of selling a large number of mobiles. (Apple CRM Case Study (N.D.))

Challenges in Customer Relationship Management in Service Sectors.

Several challenges are being faced while implementing customer relationship management in an association. Some problems are being met while using IT in the association to promote customer relationship management. The challenges are being addressed here, and the challenges follow:

1. A transparent light about the commerce case for CRM funds which need to be built about the more significant crash such savings about company association by the customer for small term profit.

2. CRM technology savings be supposed to be company choice, sign a finish to little scheme to be unsuccessful when their achievement in one commerce element lead to unwise and quick attempt to level them crossways an association.

3. Embark hold up for the choice to spend in CRM utilizing broad-level symbol for the scheme. Top organization buy-in has to see to be an attractive place.

The challenges faced by KFC on the customer relationship management are that they had an outlet on AmRest, which is a franchise of 1150 Yum! Burger King, Pizza Hut and KFC they were struggling to bring back the customers back to their KFC location. The company needed to differentiate itself outreach strategy and moving beyond its traditional methods. Armrest marketing head said that "There is a crazy situation where people try to save money, so we decided to build a new solution for that". The solution which was provided by them is that they have built new apps where they offered a new range of menus, delivery address etc. So these challenges made KFC a successful business enterprise. (Smilansky O., (2017)


Technological uses in Customer Relationship Management in service sectors

Social media is a revolutionary aspect which will connect all the individuals, groups, everyone around the group together. The social media nowadays is the solution issue in client trade choice. As the clients create investigate of the products or services, they are eager to buy. The companies following the old CRM tradition should transit themselves and follow a new concept of SCRM (Social Customer Relationship Management). There are some advantages over the use which we will be discussing here.

Social media present an enormous chance to engage and listen toward different clients as social media helps in generating experience, rising transfer as well as on condition that marketplace approaching. Social media constitute new channels for the brand by creating different social sites pages, which would be helpful for the company to promote and reach to the customers. The customers will also remain updated whenever the company posts anything about the product on social media.

CRM should use social media to serve the client interest in a better way and construct them a maintain, augment the client's knowledge as well as assist the client in choosing their products.

Though CRM is excellent in every aspect, but somehow, Social CRM has a broader reach among the audience. The social CRM is about client examine envoy, put the clients initially and using social media account in a method to attach single, not now to shove advertising resources to them. (Elena C., p 786-787)

In the technological aspect, we can say that Amazon has much used CRM technology in developing their business they have used several technical elements to improve their business standards as exhibit relevant Google text ads and banner ads from brands it increased their sales by 17%. The next technological they have used online marketing channels where they directed their customers through their websites, portal advertising, email marketing campaign. They have also created their internal experimentation platform "Weblab". So these are the technological strategy developed by Amazon. (Chaffey D. (2018))



Customer Relationship Management in the service sector is a revolutionary aspect in the field of the service sector, and its growing impact is also very much. The effect had helped many service sectors to reach the top and establish themselves as the leading companies. The CRM has a different strategy to maintain and grow out, and many service sectors are also being benefitted utilising the assist of CRM in the service sector, and now technological evolution of Customer Relationship Management has also helped to grow in a bigger scale. There are some challenges which are being faced by the companies and their growth.

So I would like to conclude by saying, we can say that CRM in the service sector is widely used in different industries, and it has resulted in tremendous growth.


The company which has been discussed here is Starbucks, KFC, Apple, and Amazon. These companies have used Customer Relationship Management in industry and meant to be successful in their respective they have used this process in various forms they have implied those strategy, the benefits, the challenges they have faced and the technological use they have indicated it is really a great success for these companies to use it and establishing their companies as brands and treating their customers in an excellent way. So the use of customer relationship management has helped them a lot.


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