recent draft: Customer relationship management (CRM) practice in Clothing Industry-A case study of Jack John’s in Emerging market
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Purpose of the study
Customer Relationship Management (CRM) has become fundamental in business organizations all over the world. With the constant changes experienced in the markets, CRM has played a significant role when addressing the needs and wants of customers for any business entity. Many of these changes are evident in the trends and fashions seen in how clothing has been dynamic in the social world. It is therefore important to understand the practices that CRM employs when addressing the issues surrounding the acquisition of customers, satisfaction and the retention of these customers. Therefore, with this in mind, the main purpose of the study was to analyze the CRM practices in the clothing industry.
Approach used in the study
To understand the CRM strategies and practices, the researcher presented various views by different authors on the concepts employed in these practices. This was done by presenting comprehensive literature concerning research objectives. In particular, the main objectives included; to provide a clear understanding of CRM and identify the elements that characterize CRM while evaluating the use technology in implementing CRM practices in industries in the clothing sector. Moreover, the research sought to identify the factors that drive the need for CRM in the clothing industry. In addition to this, it was important to assess the relevance of CRM to a multi-national company like Jack and Jones and enumerate its contribution towards customer satisfaction. Furthermore, the study sought to address the challenges faced by companies in the clothing industry in implementing CRM. The study also analyzed the positive contributions of CRM towards customer satisfaction in the clothing industry. Finally, using interviews for 10 customers from the company and a case study on the Jack and Jones Clothing company, the researcher analyzed the study using an argumentative structure to address the principles of the CRM practices in the clothing industry.
The findings show that CRM has emerged significantly at Jack and Jones Clothing Company, with the company growing exponentially into new markets. Additionally, the findings suggest that through practices that allow businesses to understand the views of the customers, CRM has developed strategies that have enabled the company to acquire new customers, ensure these customers are satisfied and that they remained in the company. These findings indicate the positive attributes that come with CRM practices in Jack and Jones.
Originality/value and implications of the study
This study, however shows that the strategies employed by CRM in Jack and Jones Clothing Company have only been directed towards the young men, indicating that the company has a large market that has not been explored. Whilst the study shows that the company has grown exponentially, it is evident that the regulatory systems in different markets and the changing trends around the world have become constant issues of concern. Nonetheless, the approach used in CRM at Jack and Jones Clothing Company can be applicable to businesses of any type, especially those seeking to grow. Despite the promising findings presented in this study, work on communication techniques need to be presented in future studies besides having continued studying of the CRM strategies.
Total maximum word count 13,200 words 48 pages (double-spaced, 275 words per page)
Style: Harvard
UK English
1.1 Introduction
Running a clothing business essentially demands keen interest in meeting the client’s needs. For this reason, the need to understand Customer Relationship Management is fundamental for companies such as Jack and Jones. According to Mithian, Krishnan and Formell (2005) customer relationship management plays an important role when it comes to customer satisfaction. It allows one to understand the customer-complaints, specifically what the customers perceive as defective goods. In the clothing industry, this is particularly important because it is in line with the ever-changing trends in the fashion industry. Wright (2004) outlines the need for good public relations and communication skills in service marketing and management. When it comes to the clothing business, the ability to market aggressively and gain competitive advantage should be the focus at all times. For a company such as Jack and Jones the ability to have maximum customer retention worldwide is important. Taylor, Tong and Hawley recognize the fact that among other companies in the clothing industry, Jack and Jones has influenced the basic standards of customer relations in other markets. He gave a good example of China, being one of those influenced by Jack and Jones.
1.2 Background
Over the years, the fashion industry has continued to grow and its dynamism cannot be put on paper. According to Brun and Castellli (2008), the clothing and textile industry is one of the most volatile industries to invest in. He continues that one has to keep abreast with the changing styles in order to survive in the industry. Jack and Jones has been one of the biggest companies in the world to deal with men’s wear. Yang (2011) pointed out the example set by Jack and Jones other clothing companies has continued to influence the changing trends globally and in countries that are yet to embrace the need for fashion. There is need to grow in the world of business and this is no different for a company like Jack and Jones. In this regard, the need to fully understand and exploit all available resources to attract customers is fundamental. Various authors such as Kumar (2010), Peters (2010) and Simon (2013) have explored the concept of Customer Relationship Management in line with transforming business. Others such as Buttle (2009), Richard and Jones (2008), have looked at the elements that characterize the CRM. The focus is on CRM because customers are the reason why businesses are running. Without the right customers, it is impossible to sustain and grow any form of business. CRM focuses on customer satisfaction and retention. Payne and Frow (2005), bring out the fundamental basics when implementing CRM. CRM can be very beneficial to any business but for it to be effective there is need for strategic planning to reap its benefits, according to Chalmeta (2006). The concept of CRM has been in use for more than a decade now. With the changing times, the use of modern technology to implement CRM is another concept that has to be put into consideration. Ray et al., (2005) looked into the benefits of technological support in line with successful customer service processes, which is the core of practices in CRM. Therefore, even in the clothing business it is important to look at the benefits of CRM in order to expand and grow. This is no different even for multinational companies like Jack and Jones.
1.3 Rational of this research
The reason behind this study lies in the need to explore the relevance and the benefits of using CRM when running a business with specific reference to the clothing industry. Many companies today are focused on customer satisfaction as the primary goal when it comes to running their businesses. Oliver (2014), brings out the fact that every other thing is secondary to the contentment of the customer. This is very true bearing in mind that the customers are the sole reason for the existence of the company. With this basic understanding, there is a very great need to utilize the knowledge on CRM as proposed by Raman et al., (2006). This guarantees remarkable growth. Understanding that the sole aim of CRM is customer satisfaction, retention and ultimately customer acquisition, according to Becker, Greve and Albers (2009), is the primary step in ensuring that the set goals are met. This research focuses on Jack and Jones as the case study. Over the years Jack and Jones has continually become a force to reckon with when it comes to men’s wear. Targeting men, as the sole clientele base when it comes to the clothing industry is not an easy job. In such an industry, there is need to use CRM as a strategy to sustain the business. Ratametha and Veeragandam (2008) present the fact that the benefits of CRM out weight the disadvantages. Payne and Frow (2006) are keen to bring out the fact that it is of essence to have an in depth analysis of CRM especially when it comes to its strategic implementation. Therefore this paper is focused on exploring all the aspects of CRM based on the findings of various authors such as Kumar (2010), Knox et al.,,, (2007) and Payne (2005), who have discussed the subject extensively while at the same time, discovering its relevance to a company like Jack and Jones.
1.4 Aim and Objectives
The objectives that drive this research are:
- To understand the meaning of CRM
- To identify the various elements that characterize CRM
- To evaluate the use technology in implementing CRM
- To evaluate the factors that drive the need for CRM in the clothing industry
- To assess the relevance of CRM to a multi-national company like Jack and Jones and enumerate its contribution towards customer satisfaction
- To identify the factors that contribute to the challenges in implementing CRM
- To analyze the positive contributions of CRM towards customer satisfaction in the clothing industry
1.5 Contribution of this research
According to O’Reily and Marx (2012), CRM is fundamental in every business. This research is meant to enlighten every entrepreneur on the benefits of CRM and its importance in line with the changing times. With special reference to the clothing industry, it is important to bring out the need for tech support and proper implementation of CRM for it to prove beneficial. Literature by authors such as Ngai (2005) and Payne (2006) serve the purpose of creating the emphasis on the use of CRM, as is the focus of this paper. The long-term goal is to employ CRM effectively and efficiently to have increased profits due to proper handling of clients and creating a brand identity that is linked to customer contentment simply due to proper use of CRM.
1.6 Research Structure
Chapter 1 is focused on an introduction and background of the study. It is meant to bring out the reason for this study while at the same time, presenting the thoughts by various authors such as Knox et al., (2007) and Kumar (2010) on the subject of CRM. Chapter 2 is a literature review that is a critical analysis of the ideas presented by various authors. Chapter 3, 4 and 5 discuss and present a comprehensive research and the analysis of data in line with the ideas put forth in chapter 1 and 2 as per the various authors discussed. Chapter 6 is a conclusion and a summary of what the entire paper is all about. With recommendations that are significant in the clothing industry and relevant to a company like Jack and Jones.
2.1 Customer Relationship Management (CRM)
2.1.1 Introduction.
Customer satisfaction is the main stay of every business. Understanding every client’s needs and meeting them fully is the core purpose of having a business. With the focus being on Customer Relationship Management (CRM), this chapter seeks to analyze the various concepts on this subject as discussed by various authors. The purpose of this literature review is to assess all the elements of CRM as proposed by authors such as Kumar (2010), who defines CRM. Others such as Knoxs et al., (2007) and Hoyer (2004) put down various suggestions on the possible frame works and elements for effective CRM. The primary goal is to understand and correlate the benefits of CRM in building solid brands to ensure customer satisfaction and improve on profitability in business. The primary target is the clothing industry with Jack and Jones clothing lines as the case study.
2.1.2 Definition of CRM
First and foremost, it is important to understand the meaning of Customer Relationship Management. Kumar (2010) defines CRM as building a one on one relationship with customers that can drive value into a firm. His views are based on the physical aspect of interacting with customers to understand them for the benefit of one’s business. Teo, Devadoss and Pan (2008) in their studies focused on the use of available resources to harness the power of CRM in order to create maximum benefits. Maklan, Knox and Peppered (2012) brought into the picture a definition of CRM as a holistic approach in managing customer relationships so as to create shareholder value.
Peter and Pressery (2010) described CRM as a philosophy and highlight the fact that CRM is designed to improve human interactions when it comes to the business environment. They also present the idea that CRM is a strategy supported by systems that employ modern technology. In their definition, they have sought to put into perspective all fundamental aspects of CRM.
With the focus being on the clothing industry, Kumar’s (2010) definition of CRM is of utmost relevance. The focus on a physical interaction so as build a lasting relationship with the client. Furthermore, he puts across the fact that a good interpersonal relationship with the customers adds value to the business. A holistic approach towards CRM as proposed by Maklan, Knox and Peppered (2012) encompasses all that Kumar (2010) has brought to the table. In contrast to the views presented by Kumar (2010), a holistic approach not only focuses on the interpersonal relationships but also involves other aspects such as employing technology in then business ventures. In line with the holistic approach by Maklan, Knox and Peppered (2012), Peter and Pressery (2010)’s definition that puts into perspective the fact that a system and technology designs are part of the strategy towards effective use of CRM is important. However, it is important to note the fact the primary goal of CRM is to pave way for better physical relationships with the clients so as to increase profit margins in a company. Jack and Jones clothing line brings to the market jeans wear for men. It is important to utilize all avenues to get to the client and this is where the importance of technology as brought forth. In spite of all the efforts by various authors to coin a definition for CRM, Hosseini, Maleki and Gholamian (2010) concluded that it is difficult to find an approved definition of CRM. This is true owing to the diverse nature of what CRM is all about.
2.1.3 Main components of CRM system
Many authors such as Knox et al., (2007) and Reinartz, Krafft and Hoyer (2004) seek to discuss the various components. However, Knox et al., (2007) and Hosseini, Maleki and Gholamian (2010) argued that highlighting the specific components of CRM is difficult as it is subject to opinion and is relative, depending on the nature of the business that is the center of discussion. According to Knoxs et al., (2007), CRM involves identifying, satisfying, retaining and maximizing value of a firm’s best customer. In addition to this, he focuses on relationship marketing, information technology and customer behavior as the basis of a successful CRM system. Reinartz, Krafft and Hoyer (2004), attempt to present a framework on an effective CRM system based on consequences and the outcomes of an effective system. They bring to light three processes involved in building a CRM system. These three are initiation, maintenance and termination. Yim, Anderson and Swaminathan (2004) look into the equivocal dimensions of CRM. They propose that customer satisfaction, retention and growth of sales are important. Customer retention and satisfaction are the common elements of CRM brought forth by each author. Knoxs et al., (2007), presents an idea that the primary focus should be on the best client. Reinartz, Krafft and Hoyer (2004) notably point out the need for initiation as part of CRM system. Initiation is based on bringing new clients in to the picture. It involves attracting more and more towards a given brand. This is in contrast to Knoxs’ et al., (2007) idea centered on maximizing the presence of best customers. The need to retain as many of the customers as possible is one of the key elements of CRM. Yim, Anderson and Swaminathan (2004) present the need for customer satisfaction so as to ensure customer retention. This is in line ideas put forth by Knoxs et al., (2007) which focus on customer satisfaction and retaining the best customers. So far, the core elements of CRM as put across by these authors are customer satisfaction and customer retention. Other elements that should be put into perspective are identifying the potential customers, according to Knoxs et al., (2007). Reinartz, Krafft and Hoyer (2004) bring forth the idea of termination as an element of CRM. Though vague, putting aside certain products or discarding systems that are not efficient and those that cause discontent among the customers is another important element of CRM.
2.1.4 CRM technical support system
The dynamism in the world of information technology is aimed at transforming all individual aspects of businesses among other things. Technological support involves the use of skills and knowledge on information technology to ensure efficiency and to increase profitability in any company.
Knoxs et al., (2007) listed the impact of information technology as one of the suggestions in his framework of CRM. In the same fashion, Berry and Linoff (2004) conceptualize the use of data mining to harness CRM.
Mohan, Choi and Min (2008) propose the use of social networking so as to build CRM. With more people getting hooked on to social media such as Facebook and Twitter, it important for every entrepreneur to understand the use of these platforms so as to exploit them fully.
Ramasubbu, Mithas and Krishnan (2008), set out to compare the importance of technical support vs. employee skills in harnessing CRM. However, Berry and Linoff (2004), clearly bring out the need to prioritize on interpersonal relationships as opposed to making the use of technical support a primary goal. While it is of essence to recognize the growing influence of social media on businesses, there is need to nurture a one on one relationship with the clients. In order to appeal to the younger generation, targeting the use of social media as a marketing strategy is of utmost importance. This is in line with Mohan, Choi and Min’s (2008) proposal. Social media is a great avenue for data mining as brought forth by Berry and Linoff (2004) bearing in mind the fact that data mining is essentially done so as to improve on the physical interaction in order to guarantee customer satisfaction. Knoxs et al., (2007) assessed the impact of information technology on CRM. In as much as the use of tech support is important, the need to for physical interpersonal relationship is fundamental. Ramasubbu, Mithas and Krishnan (2008), compare the importance of tech support vs. that of employee skills. From their research, they conclude that both are equally important in enhancing CRM. With the clothing industry being the main focus, both tech support and use of interpersonal relations to guarantee customer satisfaction is of essence. The only way to enhance interpersonal skills is by investing in employees who understand the importance of good public relation skills. This is the mainstay of the discussion by Ramasubbu, Mithas and Krishnan (2008). Social media is a great place to market and collect data when it comes to the clothing industry so as to attract as many clients as possible in line with Berry and Linoff (2004)’s propositions. The primary focus of CRM in a company such as Jack and Jones is to exploit fully the available market by targeting men and their partners, through provision of quality services and quality products. Provided that, one on one interaction with the customers takes priority, the use of tech support to enhance CRM is a great way to increase customer response, retention and satisfaction.
2.2 Reasons of CRM practice in emerging market
In every line of work, CRM is the core of customer satisfaction. Jack and Jones being in the clothing industry can benefit much from the practice of CRM. With their target population being young men, it is important to bear in mind the fact that these specific group would invest in any clothing item that makes them fashionable, stylish and classy. Mohan, Choi and Min’s (2008) brought the use of social media to attract a wider customer base. When targeting young men, as is the case of Jack and Jones, use of social media proves to be very resourceful as a marketing strategy. Implementing CRM successfully in every business guarantees increased awareness for the company’s products and this directly translates to increased demand and hence increased profit margins. For this reason, the practice of CRM in every business should be geared towards increased customer satisfaction that warrants customer retention. In addition to this, the practice of CRM should be focused on achieving synergy between the use of modern advancements in the world of information technology and the old school ways that involve a one on one approach towards customer service. This is in line with the arguments by Ramasubbu, Mithas and Krishnan (2008).
Demand directly translates to the profit margins in every business. As stated earlier, one of the reasons for the use of CRM is to increase customer retention and to attract new customers. Rollins and Halinen (2005) emphasize on the need to synchronize Customer Knowledge Management. In their opinion, understanding the needs of the customers is an added advantage as it can greatly enhance customer retention. Kumar (2010) noted that successful CRM practices lead to reduced marketing costs, increased Customer response rates and increased profitability. The idea on CKM as brought forth by Rollins and Halinen (2005) is of utmost importance when the goal is to increase demand. The use of tech support is the greatest way to conduct cheap research and learn as much as possible about the potential clients. This is accordance to the views presented by Berry and Linoff (2004) who conceptualized the use of data mining to acquire information about customers so as to satisfy their needs fully. Bruce and Towers (2004), in their studies, brought to light the fact that the clothing business is characterized by low predictability in terms of flow of products. With this in mind, the need to increase demand through successful CRM can be advantageous to a company such as Jack and Jones.
Jackson (2007) stated that CRM involves the incorporation of Information Technology to achieve personalization that characterizes it. To personalize CRM customer knowledge management as presented by Rollins and Halinen (2005) is important.
Similarly, Reddick (2011), presented the idea that technology creates an enterprise approach to CRM. He explored the fact that CRM continually demand the use of information technology to build the necessary strategies towards implementing CRM.
Both authors present valid arguments on the importance of CRM to push for technology. Jackson (2007) brings to light the issue of personalization in the use of CRM. Many authors have not explored this subject although in various works it has been described indirectly as a core principle in facilitating CRM. Peter and Pressery (2010) described CRM as a philosophy that is supported by a system and technology in order to improve human interactions. Reddick (2011)’s idea on an enterprise approach comes secondary to Jackson(2007)’s issue on personalization, Jackson (2007) focuses on the use of CRM to get to the client through personalized services, unlike Reddick (2011) whose goal is to promote the business ideas first. CRM’S push for technology is inevitably visible when it comes to the use of tech support to facilitate CRM.
2.2.3 Update management concept
The smooth running of any business depends on the kind of management policies in place. The use of CRM for this purpose is not only the core of effective management but it is also a strategy towards improving managerial skills in order to establish long-standing firms and brands. According to Buttle (2009), CRM facilitates creating value for customers, products and services.
On the other hand, Rollin and Halinen (2005) are keen on the subject of Customer Knowledge Management that forms an invaluable part of effective CRM. They look into synchronizing CRM and CKM. Updating management concept involves use of diverse means to improve on the skills of running a business. CRM is a key element of management as it focuses on bringing together all aspects involved in customer satisfaction. With the clothing and textile industry being of reference, Rollin and Halinen (2005) present a valid argument the importance of synchronizing CKM and CRM. CKM can bring new ideas on the table in order to improve on the managerial skills in order to get wholesome growth in the business. Concurrently the thoughts presented by Buttle (2009) on customer, product and service value are not exactly similar to those of Rollin and Halinen (2005). Each seeks to focus on different aspects of CRM. However, grossly both present valid arguments that can greatly contribute to improve management with the use of CRM. In fact, the ideas by Rollin and Halinen (2005) as well as those by Buttle (2009) form the basis of strategic use of CRM for customer satisfaction and retention.
2.3 To identify barriers of CRM practice in emerging market
The use of CRM by multi-national companies such and Jack and Jones is grappled with a myriad of challenges. Bejou et al., (2010) explores to understand the barriers to effective CRM in multinational companies. He found out that some of the common barriers to CRM include different business practices in various nations, varied government regulations and intense competition or lack of competition. Dean (2005) focuses on the use of e-commerce and m-commerce in the effective implementation of CRM. Internet and mobile technologies form a solid basis of tech support in CRM. While both authors are correct when it comes to exploring the barriers to CRM, it is important to consider the fact that all these have a solution through strategic planning. Bejou et al., (2010) looks at the barriers that mainly affect the relationship aspects of CRM. On the other hand, Dean (2005) focuses on loyalty differences as the challenge encountered in the area of tech support that complements effective relationships. It is important to realize that the core of CRM is to enhance customer relations. With this in mind that concerns brought forth by Bejou et al., (2010) are more realistic. The first step to solving a problem is to identify the problem. Understanding the culture differences in various nations is one of the solutions to the problem of differences in business practices that is faced by multi-national companies. The only way to understand the various cultures is through data mining as proposed by Ning (2007). Data mining across various setting helps to create a product that is universal or one that attracts the specific crowd. For example with the clothing industry being the focus, understanding the African clientele base is of utmost importance. The need to capture the authenticity that comes with the rich African culture is important, hence, the need for a company like Jack and Jones to invest in data mining. Use of social media as a platform for data mining is a great investment. This is in line with the suggestions by Mohan, Choi and Min (2008). The only way to deal with the problem of government regulations is to take time to understand the standards required by various government policies in the different countries. This demands investment in proper international relations personnel and professional legal advice. The need to understand the competition is important so as to employ good CRM practices. Kim and Mauborgne (2015) bring to light the use CRM soft wares to beat the competition. This is also a solution to the problem of loyalty differences as brought forth by Dean (2005). Dean’s concerns about loyalty differences by the customers using online platforms vs. those using mobile access to a company’s database are genuine but should not be a cause of concern. The use of CRM soft wares that suits both the mobile users and the online users is the basis of growth with CRM. Bejou (2010) brings out more serious concerns that should be addressed for effective implementation of CRM.
2.4 Benefits of CRM operation in emerging market
CRM builds improved customer satisfaction that leads to customer retention and hence increased demand and this translates to increased profit margins. Smith (2006) brings out the importance of educating your employees on good customer relations skills. He explains that employee skills translate to good customer retention that leads to as two-fold increase in the profit margins of a company.
Richard and Jones (2008) express their disappointment in the fact that CRM takes a lot investment by it has little measured paybacks. They bring to light the fact that for CRM to be fully successful all aspects of customer equity must be increased. In agreement, Bohling et al., (2006) identifies the fact that CRM is a slow process and many a times the outcomes fall short of the expectations. He continues that for CRM to be fully beneficial there is need for co-ordination and co-operation in inter-organizational and intra-organizational structures.
The arguments by Bohling et al., (2006) and those of Richard and Jones (2008) are valid. However, the benefits of CRM as enumerated by Smith (2006) take priority. Although this may be true, there are factors to put into consideration such as strategic implementation of CRM and proper organization. These address the concerns by Bohling et al., (2006). Kranikov et al., (2009) recognizes the fact that CRM leads to cost and profit efficiencies. In line with the thoughts by Kumar (2010), CRM reduces the cost of marketing at the same time, increasing profit margins. Kranikov et al., (2009), Smith (2006) and Kumar (2010), focus on the most important benefits of CRM. When it comes to the clothing industry, putting into consideration the concerns brought forth by Richardson and Jones (2008) as well as those by Bohling et al., (2006) is important. However, the benefits of CRM in terms of customer retention and reduced market costs are core in the decision of making use of CRM. For this reason the benefits of CRM for a company such as Jack and Jones out -weigh the risks. Customer retention can prove invaluable to such a venture and greatly increase demand eliminating the worries about low predictability in the clothing and textile industry as presented by Bruce and Towers (2004).
2.5 Strategic perspective of CRM implementation by emerging market firms
Teo, Devadoss and Pan (2006) present CRM as a strategy to identify, understand and predict customer behavior to foster long-term profitable relationships. Similarly, Payne and Frow (2005) highlighted three perspectives of CRM. Payne and Frow (2005)’s suggestion on this matter involves an understanding that CRM involves a process and each step is important. Correspondingly, Teo et al., (2006) outline three key steps in the strategic implementation of CRM. Identifying the potential clients, understanding them and predicting their behavior are the key steps towards strategic CRM especially for emerging market firm.
Donaldson and O’toole (2007) put their focus on analyzing, formulating and implementing a relationship strategy. Their primary focus is on interpersonal relationships. For emerging markets, analysis is a fundamental step and is mostly inclined towards data collection so as to get in line with the needs of the customers.
Baker and Hart (2008), propose the use of strategic internet services to promote CRM. In addition, to this they enumerate the need to build solid brands for use on the internet platforms so as to attract potential clients.
Teo et al., (2006)’s steps towards strategic planning are the core of CRM. While Donaldson and O’toole (2007) attempt to present a frame work for strategic implementation of CRM, Teo et al., (2006)’s idea of identifying the customers as the first step towards a successful strategy dominates. According to Donaldson and O’toole (2007) formulating and implementing a relationship strategy is part of CRM, however to any critical thinker the question would be what would be the basis of these strategies. For answering such questions, the suggestions by Teo et al., (2006) take priority. After identifying the customers, understanding and predicting their behavior can facilitate a way to formulate and implement workable strategies.
Baker and Hart (2008) present the strategic use of internet services to promote CRM. The use of internet especially for emerging markets provides a wider platform and presents better opportunity to improve on customer satisfaction and retention. On the contrary, Donaldson and O’toole (2007) are inclined towards enhancing inter-personal relationships. However, when CRM is put into perspective both internet and a one to one interaction are important. Teo et al., (2006) present the most accurate strategies towards effective CRM. Their thoughts on identifying, understanding and predicting the needs of the customers take center stage. Use of internet marketing as proposed by Baker and Hart (2008), only complements the ideas by Teo et al., (2006) since it is a source of data mining. Internet platforms also provide avenues for analyzing, formulating and implementing strategies as suggested by Donaldson and O’toole. With the Jack and Jones being the main focus it is important to understand the primary customers for their product. In order to utilize CRM successfully, Jack and Jones needs to put the arguments by Teo et al., (2006) as core of their implementation strategies towards CRM.
According to Xu and Walton (2005), use of CRM to attain customer acquisition knowledge is fundamental. This involves having good employees who interact with customers in a timely and professional manner in order to understand the needs of the customers. Buttle (2009) emphasizes on the use of CRM throughout the customer life cycle stages primarily in the customer acquisition phase. He continues to emphasize on use of a customer related database to enhance customer acquisition and retention. Stahl, Heitmann and Lehmann (2012) outline the need to focus on brand equity as a means of attaining customer satisfaction. This is in line with the suggestions brought forth by Baker and Hart (2008) on the question of branding as a way of complementing CRM. In their opinion, Stahl, Heitmann and Lehmann (2012) present the fact that proper branding with the right CRM implementation can increase customer acquisition.
Even without the implementation of CRM, customer acquisition of utmost importance for the smooth running of any business. Knowledge can never be irrelevant and for this reason customer knowledge is important in re-enforcing customer acquisition this is in accordance to the findings by Xu and Walton (2005). Of equal importance is the use of CRM for customer acquisition, in line with the thoughts by Buttle (2009). His proposition on the use of a customer related database to effectively employ CRM is key in customer acquisition. On the other hand, Stahl, Heitmann and Lehmann (2012) present the idea on branding. While it is important to create a brand that is attractive, this should not take priority, as it can be misleading. Identifying and understanding your customers as brought forth by Teo, Devadoss and Pan (2006) should be the first step. Identifying and understanding the customers can build on customer knowledge as proposed by Xu and Walton (2005). Without a basic understanding of the target customers, branding is an exercise in futility. This is not discredit the thoughts by Stahl, Heitmann and Lehmann (2012), it only an emphasis on the strategic process that is involved implementation of CRM according to Payne and Frow (2005). For the clothing industry, knowledge is fundamental. Getting in line with the current trends and understanding the diversity that is men’s wear is core for a company such as Jack and Jones. The thoughts by Xu and Watson (2005) on customer knowledge correspond to those of Rollins and Halinen (2005) who insist on customer knowledge management that is synchronized with CRM so with the set target being to attract more customers.
2.5.2 Customer satisfaction.
One of the key elements of CRM is customer satisfaction. Contentment of the customers is what warrants the effectiveness of the CRM process. Sin et al., (2005) in their studies presented the fact that CRM involves working with individual customers to offer customized solutions, enhance relationship value and enhance customer loyalty. In other words, he presents a problem solving approach so as to give the customers at the point of their needs.
The only way to have satisfied is to exploit all available avenues so as to understand them. Donaldson and O’toole (2009) focus on better relationships with the client so as enhance customer satisfaction. In the clothing industry, the kind of assistance accorded to the customers in the retail stores greatly determines the kind of profit margins the company will maintain. To emphasize on the same, Woodcock (2005) brings to light the idea of having customer experience so as to effectively use CRM to increase profits.
The ideas presented by both authors are very true. Woodcock (2005)’s proposition on customer experience, is the best way to ensure that your customers are satisfied. Long serving employees are a company’s valuable asses that can greatly contribute to customer experience. For this reason, it important to invest in skilled employees so as to facilitate CRM and re-enforce customer satisfaction. This is in accordance to the findings by Ramasubbu, Mithas and Krishnan (2008) discovered that having skilled employees is of equal importance to investing in other aspects of CRM such as tech support. Concurrently, Donaldson and O’toole (2009)’s focus on relationships identically is geared towards customer satisfaction. Various authors have indirectly, brought forth the importance of solid relationships between customers and a firm’s employees so as to guarantee optimal customer satisfaction. Payne (2006), Kumar (2010) and Hoyer (2004), just to mention a few are amongst those who have underlined the need for physical interaction so as to ensure customer satisfaction.
Customer turnover is important for the growth of any business. However, maintaining solid relationships, with the already available customers, is the basis of networking and a marketing strategy that greatly defines a brand. Ngai (2005) stated that regardless of the size of the business CRM could lead to increased loyalty and retention of customers.
Kim et al., (2006) pointed out the fact that it is important to retain the high profit customers. The high-end clients in the clothing industry are mostly public figures or fashion houses that seek to come up with new trends. With this understanding, the relevance of customer retention to a company like Jack and Jones cannot be over emphasized. Both authors were correct in the needs for customer retention. However, Ngai (2005) presents a more rational views that allows one to purpose to retain all the customers, as opposed to the ideas by Kim et al., (2006) who puts his energy into the high profit customers. It is important to consider all customers when the goal is to achieve maximum customer retention. Although this may be true, priority should be given to the high profit customers as proposed by Kim et al., (2006) while being careful not to ignore the other customer who form a fundamental foundation for the growth of the business and can serve as a security in the event of falling out with a big customer. In the clothing industry, Ngai (2005)’s the core of good CRM practices because all customers or important and more sore so the low retail customers as cumulatively they surprisingly match that profits by a single high profit customer.
The question of customer segmentation is essential and it goes hand in hand with the need for customer retention. Knox et al., (2004), continues to emphasize on the need to understand a firm’s most profitable clients and maximizing their value. First and fore most to understand the concept of customer segmentation is the only way to know how to use it effectively. Kim et al., (2006) outlines the need to retain the profit customers. His proposition is in light of the fact that customer segmentation is all about creating a clear distinction between the high current and the low current customers. It is also involved in identifying the customer various customer potentials. This is according to Payne (2006) who continued to present the need to use the traditional ways of assessing the profitability of customers. In customer segmentation, data mining and customer knowledge are fundamental concepts that if not utilized properly one can run at a very big loss. As a result the question of data mining as presented by Ning (2007) takes center stage to facilitate customer segmentation.
In the clothing industry customer segmentation is of importance especially when the goal is to enhance customer satisfaction and retention. Although many authors such as Kim et al., (2006), Knox et al., (2004) and Payne (2006) focus on the need to classify customers in terms of the profits they bring in, in the clothing industry a totally different approach should be adopted when it comes to customer segmentation. In the case of Jack and Jones, one example may be clearly putting a mark on those that love the vintage as opposed to the premium amongst other products by the company. Thereafter segmentation in terms of profits can prove beneficial under the various products available. In addition to this assessing profitability as proposed by Payne (2006) can be of value. While concentrating on the big clients it is important not to forget the low profit clients as they also contribute effectively to the solid foundation of the business. This is in accordance to the thoughts by Kumar (2010).
Hoyer (2004) went ahead to present the 3 processes involved in CRM, initiation, maintenance and termination. Customer loss is usually an entrepreneur’s worst nightmare. It is not good to lose customers, as the goal is usually to retain as many as you possibly can.
Becker, Greve and Alben (2009), in line with the thoughts by Hoyer (2004) also looked at the three processes involved in CRM. They also recognized the importance of customer termination as part of the process of effectively putting into practice CRM.
Ning (2007) recognized the fact that data mining in CRM is important to analyze loss of customers. While it is important to get information on the customers’ dissatisfaction, it is fundamental to recognize the fact that there are both intrinsic and extrinsic factor that contribute to customer loss. An example of an intrinsic factor that leads to customer loss, is the cessation of use of catalogues as a marketing strategy. In their studied Phan and Vogel found out that stopping the use of catalogues can reduce customers by up to 80%.
Customer loss should be evaluated, and Ning (2007) presents the most logical approach that involves the use of data mining. On the other hand, Hoyer (2004) does not pay keen attention into the question of termination as part of CRM. Similarly, Becker, Greve and Alben (2009) do not consider the factors that contribute to termination. With this in mind, understanding the intrinsic and extrinsic factors that contribute to customer loss can greatly reduce the number of customers lost per year this is similar to what Phan and Vogel (2010) brought out in their study. Understanding the competition as proposed by Kim and Mauborgne (2015) is fundamental in reducing customer loss. While Hoyer (2004) presents customer termination as part of the natural process of CRM, other authors such as Rollin and Halinen (2005) present the need for customer knowledge to enhance customer retention. In the same line, Mohan, Choi and Min (2008) explore the use of social networks to understand the customers. This can greatly alleviate the worries on customer loss especially for a company like Jack and Jones that needs to keep abreast with all the upcoming trends.
2.6 Conclusion
In summary, the use of CRM as presented by many authors can greatly revolutionize businesses. Many authors such as Kumar (2010) and Teo et al., (2006) have sought to define CRM. However, owing to its diverse nature others such as Richards and Jones (2008) as well as Hosseini, Maleki and Gholamian (2010) concluded that it is difficult to define CRM. Even with the lack of a standard definition, the elements of CRM as well as its benefits in emerging markets have been extensively studied and many literatures have been put down on the same subject. Authors such as Payne (2006), Jackson (2007) and Smith (2006), just to mention a few have extensively discussed the subject of CRM. Although it has a myriad of advantages, CRM also presents some challenges as discussed by Bejou et al., (2010). The importance of CRM to a company such as Jack and Jones is core as a business strategy. Its relevance towards customer acquisition, satisfaction, retention and segmentation is of utmost importance as presented by Ngai (2005).
3.1 Introduction
This chapter presents the research methods employed by the researcher to conduct the study. Therefore, this chapter discusses the research methods employed by the researcher to conduct the study. This involves the procedures used to collect data, present the findings and analyze the findings made during the research study. Therefore, this chapter presents the research approach used during the study and the procedures used for the analysis of the findings.
3.2 Inductive approach and Deductive approach
To ensure that the findings made in a study are in tandem with the main research objectives, Burney (2008) suggests that it is important for a researcher to understand the different approaches that will enable the analysis and simulations made are in line with the objectives. Actually, Burney (2008) posits that while a researcher can introduce a new approach to investigate, experiment and analyze data, the fact is that one ends up either developing a hypothesis or seeks to address an already existing theory.
On the other hand, Johnson and Christensen (2008) reckon that with different studies in social sciences based on either continued and developmental studies, the use of a deductive or inductive approach is satisfying to many researchers.
According to Johnson and Christensen (2008)’s report on the research approaches for a study, deductive research approaches involves reasoning from a more general view to a more specific form. In particular, Johnson and Christensen (2008) say that deductive research approaches tend to confirm an observation made from an already developed theory. On the other hand, Burney (2008) says that inductive research approaches involve reasoning by moving from a specific observation to a broader generalization. Moreover, he posits that inductive studies tend to create a theory from observations made in a study. In this instance, Burney (2008) suggests that observations made in a study, the researcher views them on the concepts of having a more open-minded approach address an inductive approach for a study. Conversely, the author does affirm that a deductive approach has an argumentative structure that based on the principles of a study that are much more accepted (Burney, 2008; Johnson and Christensen, 2008). Despite their different thoughts on the approaches used in research, Johnson and Christensen (2008) and Burney (2008) agree that through several techniques, the main aim of an approach, as used in many social sciences is to describe and guide the researcher towards analyzing the data collected. This shows that the approaches selected during study need to clearly point out the implications and failures in a study (Burney, 2008; Johnson and Christensen, 2008). This depicts the idea that deductive approaches present a numerical estimation of the findings while an inductive approach constantly compares the data collected and gives a narrative description of the findings. For this study, the researcher opted to use both the deductive and inductive approaches to present the findings made for the study. This would ensure the findings made during the study would be based on an argumentative structure.
3.3 Qualitative and quantitative study
According to Johnson and Christensen (2008), a qualitative study is mainly used when one needs to understand and comprehensively interpret a social phenomenon while a quantitative study is mostly involved with testing an already existing hypothesis. In this case, Johnson and Christensen (2008) say that qualitative studies are mainly involved when one is studying a small group of people while a large sample is used for the precise measurement of a predictable research study. Additionally, qualitative studies address a situational phenomenon while a quantitative study addresses a predictable phenomenon. However, as presented by Johnson and Christensen (2008), researchers can employ the two studies in a mixed research methodology. Johnson and Christensen (2008) affirm that the using both studies aims at addressing the limitations that come with each method that is employed in a study. For this study, with the use of both deductive and inductive approaches, the use of both qualitative and quantitative studies was employed. This enabled the researcher to address the use of a mixed research approach.
3.4 Research Methods-Primary research (interviews)
The research employed primary research methods to collect data from customers (Deren, n.d.) while a case study was presented to address CRM at Jack and Jones Clothing Company. Semi-structured interviews with 7 open-ended questions were designed for the study (eSurveypros, n.d.; Deren, n.d.). The questions designed sought to address the research questions developed for the study (Deren, n.d.). This method allowed the researcher to have an interactive session with the participants and obtain information on the needs and development of CRM at Jack and Jones (eSurveypros, n.d.). This allowed the researcher to develop critical thinking of the opinions, attitudes and behaviors of the respondents (Deren, n.d.). The researcher played the role of the interviewer for the study. To perform these interviews, the researcher sought permission from the management of the company to conduct interviews with their customers (eSurveypros, n.d.; Deren, n.d.). Customers either going in or out of the retail shops were asked to participate freely after the researcher told them the intention of the study (eSurveypros, n.d.; Deren, n.d.). The participants were assured of their anonymity (eSurveypros, n.d.; Deren, n.d.). Customers who voluntarily agreed to participate on their own consent were then taken through a 15-20 minute interview (eSurveypros, n.d.; Deren, n.d.). The interviews designed allowed the researcher to obtain unique responses and reflect on the information provided (Deren, n.d.).
3.5 Validity and reliability- Triangulation
For this study, triangulation was done by integrating the quantitative and qualitative data during analysis using thematic analysis of the findings made from the interviews (Ibrahim, 2012). This was then compared to the case study provided on Jack and Jones Clothing Company. This allowed the researcher to capture data from the primary source and comparing this to the phenomenon that was really happening at the company (Ibrahim, 2012).
3.6 Sampling technique
The study used a convenient sampling technique to identify the participants for the interviews (Deren, n.d.). This technique allowed the researcher to use customers who happened to be getting out of two of the retail shops that sold Jack and Jones products. 10 customers, who voluntarily agreed to participate in the study, were interviewed (Deren, n.d.). 5 customers from each of two retail shops that sold Jack and Jones merchandize were selected for the study. These customers were only asked to participate in the study at their consent (Deren, n.d.). This enabled the researcher to get responses without forcing the participants. To begin with, the researcher analyzed the overall characteristics of the target and determined their availability for the interviews (Deren, n.d.). Customers who happened to come from two different retail shops that sold products from Jack and Jones Company were asked to participate in the study. The researcher specifically told them of the aim and the importance of the study.
3.7 Data analysis
The data collected from the interviews with the customers was analysed using thematic analysis. This method involved categorizing specific responses into concepts and themes by highlighting the interpretation, and coding the responses to relevant themes designed (Ibrahim, 2012). Coding was specifically done on the phrases and words that were frequently made by the respondents during the interviews. Tables and graphs were then used to present the findings. Tables were developed to address the specific responses while the graphs were created using MS Excel to present the frequency of words and phrases made by respondents (Ibrahim, 2012).
3.8 Explanation of Chosen Methods
The methods used for this study were based on a variety of reasons. For instance, the researcher performed a mixed approach that involved the deductive and inductive approaches for the study. The use of the deductive approach ensured the researcher collected the data based on the facts. In this case, using the Jack John Clothing Company in an emerging market enabled the researcher to collect facts on this case. The case study on Jack and Jones was used as the company has a potential perspective that addresses the CRM practices in the clothing industry. One larger advantage of the case study as used in this research is that the entity under study provides a rare but evident overview of the current trends and practices of CRM as seen by the customers. Increasingly, the deductive approach was significant, as the researcher would prove a specific hypothesis as presented in the purpose of the study. Moreover, the use of inductive approach was important for the analytical assessment of the case used for the study. In this case, this enabled a generalized view of the case presented for the study. With these approaches, the researcher was able to present different views and arguments that would be structural in identifying the failures and gains of the case under study. In addition to this, the researcher used a mixed methodology to collect the information on the case in hand. This allowed the researcher to use both quantitative and qualitative research methods. In this case, the mixed research method was used as it enabled the researcher to perform both fact-finding and analytic techniques to collect the data for the study. More so, the mixed methodology would allow the researcher to address the limitations of each of the methods used for the study. For this reason, by using a case study, the researcher would look at a functional unit that allowed generalized facts that were based on truth during the study. Furthermore, with the use of the case study, the researcher would be able to perform an in-depth analysis of the findings based on how the case presented itself while addressing the research purpose.
3.9 Research Strategy- Case Study
For this study, primary research and a case study were employed for the analysis of the customer relationship management practices in the clothing industry. In particular, the primary studies allowed the researcher to address views of the customers on CRM while a case study used to present a realistic analysis of the study. The use of a case study enabled the researcher to a comprehensive analysis of the complexity of the customer relationship management systems used in the company (Hancock and Algozzine, 2006). Specifically, the company ensured the use of a single entity that has a capacity of having the different features that were emphasized in the research objectives (Hancock and Algozzine, 2006). Moreover, this case was purposefully selected which depicted the researcher to having an intrinsic interest by specifically understanding the company (Hancock and Algozzine, 2006). In addition to this, the use of this case study for the strategy enabled the researcher to get information-rich material (Hancock and Algozzine, 2006). Furthermore, the case study on Jack Johns Clothing Company enabled the researcher to have a critical, revelatory and an extreme view on the main purpose of the study (Hancock and Algozzine, 2006). The collection of the information was made on a generalized and analytical approach. This strategy allowed the researcher to make the analysis on the company based on reasoning (Hancock and Algozzine, 2006). Therefore, the use of a combined deductive and intrinsic technique would ensure the conclusions made were true to the hypothesis under testing while collecting facts from the case study on the company. This enabled the analysis to be performed based on truth, applicability and consistency of the information while also addressing the neutrality of the data collected (Hancock and Algozzine, 2006).
3.10 Conclusion
In conclusion, the researcher describes the materials and methods that were employed for the study. At first, the researcher presented the use of both inductive and deductive research approaches for the study. These approaches allowed the researcher to perform studies based on a generalized view and factual view. The approaches used as presented in this study, were therefore effective to improve on the already existing structures of CRM in the case. Additionally, the researcher presented the use of mixed research methods to address the methodology employed by the researcher to perform the analysis on the data collected. The data was therefore collected from the case presented for the study and the interviews performed. This elaborates the use of case studies that were made from the Jack John Clothing Company in an emerging market. The case study on this company would allow an argumentative and in-depth analysis and simulation of the findings made. This would indicate the possible implications of these studies while also presenting the main issues that surround CRM practices in a multinational company.
4.1. Results from the Interviews with customers from Jack and Jones
4.1.1. Customer satisfaction v/s employees from Jack and Jones
The findings made from the interviews with the customers consistently show that many of the customers get what they expect from the company. In this case, the data obtained from the interviews suggested that not all were satisfied with the slow responses made by the employees from Jack and Jones Clothing Company. More so, the customers acknowledged the courtesy of the employees from the company when addressing the needs of the employees while also being helpful to them when shopping for specific products. Increasingly, the results showed that the CRM had ensured the employees where knowledgeable in the products sold in the company.
Figure 1 Figure showing the level of satisfaction of customers on employees
Figure 1 depicts the phrases from the interviews that presented how customers are satisfied with the employees and services offered at Jack and Jones. The figure is created to address the number of respondents against the phrases made on the employees from this company. 5 respondents suggested that the employees were courteous while 4 respondents are updated on products and the needs of the customers. 2 customers consistently suggested that employees were understanding and knowledgeable on the needs of the company. However, 3 respondents and 3 other consistently said that the employees were slow and took long to respond to these customers.
4.1.2. Customer satisfaction v/s Products offered at Jack and Jones
The responses made from the interviews were to identify the satisfaction of the customers on the products sold at Jack and Jones. The data obtained from the interviews with the customers consistently pointed out that the products they bought from the company were strong, durable and of high quality. This showed that a big number of customers buy these products for the durability and strength they come with. The customers consistently agreed during the interviews that these products were stylish and that they were fashionable to meet the current needs of the customers. The researchers also found out from the responses made during the interviews that the products seemed attractive and that many of these customers found the varieties that they needed very fast from the company. Increasingly, the customers pointed out that these jeans products from the company were a perfect fit for the different designs and that these products were easily blended with the needs of the current social market. However, the data collected from these interviews show that the respondents were concerned with the cost of these clothes, with some of them pointing out how expensive these products were. The researcher also found out that the products were not easily available online, showing a need for improvement of the company technology.
Figure 2 Figure of phrases made by the customers addressing satisfaction on products
Figure 2 above depicts the phrases made on the levels of satisfaction of the customers interviewed during the study. In this case, the responses made show the number of customers and the phrases made concerning the customers from the company. 3 customers said that the products were perfect fits, captivating. However, 3 others said that there is need for these clothes to be sold online and female products need to be created. More so, 6 respondents said that the products from the company were fashionable.
4.2. Overview of CRM emergence in Jack Jones
With the trends constantly changing in the world of fashion, there has been the emergence of various customer relationship strategies by different companies. This is specifically, aimed at not only obtaining many customers, but also retaining these customers. Jack and Jones Clothing Company is one such company that has seen the emergence of customer relationship and the significance it has played in the overall performance of the company.
Jack and Jones Clothing Company is today one of the leading menswear producer in the Europe. The company began in the 1990s as a bestseller by sending young, fiery soul of clothing to the Oslo Fashion Fair. Moreover, Jack and Jones Clothing Company sent in clothes that had modest but carefully chosen collection of jeans aimed at the young men. With a positive reception that seemed to have exceeded all the expectations of the company, making the menswear a reality.
Actually, with these procedures to create the menswear aimed at the young men has made the company to be one of the leading producers of menswear in Europe. In fact, the customer relationship managers at the Jack and Jones Clothing Company have evidently implemented various strategies that aim at managing the clientele in the company. To bestow the rise in the market, the company’s customer relationship teams have gone an extra mile to ensure there is customer acquisition, customer retention besides creating products that will ensure there is customer satisfaction while preventing loss of customers.
To begin with, to ensure that they get to attract a larger market for their brands, the company has opened more than one thousand stores in thirty-eight countries all over the world. This affirms the fact that with these stores, there are accruing numbers of customers from different countries other than those in Europe alone. Furthermore, the company has wholesale partners all over the world with whom the clothing company has been able to sell the Jack and Jones wear. In particular, the clothing company has collaborated with thousands of wholesale retailers all over the world. Therefore, with such partnership, the company has been able to garner larger numbers of customers in the different countries.
With a rise in the market share, the company has concentrated in the production of jeans, with high level of expertise that involves a rare group of individuals that represent artisanship, quality and design. In addition to this, these experts have gone ahead to produce five unique brands of Jack and Jones cloths.
Increasingly, with the customer being the most important stakeholder in a business, the company has gone ahead to ensure that all the different customers are satisfied with their products by producing cloths that fit their different tastes and preferences. For instance, the company, through the designing teams, has created the five brands as suggested above. These brands include; Jack and Jones Vintage Clothing, Premiums by Jack and Jones, Originals by Jack and Jones, Core by Jack and Jones and Jack and Jones Tech. With such brands, the company has been able to attract various customers by producing the different features in the cloths. Furthermore, each of these designs of clothes are created by independent design teams and that each of these designs of brands come with unique full range characteristics, accessories and footwear that fits every man and each occasion. As mentioned earlier, the core business of the customer relationship teams is to ensure the overall satisfaction of the customers. Based on these functions, the case shows that each of the brands produced in the company suggest the various brands are designed to address the unique needs of the customers. The additional accessories and the footwear have been used in this case to address the problem that comes with customers getting all their products from one place.
4.2 The development process of Jack Jones CRM system
From the studies conducted, it is evident that the CRM systems at Jack and Jones Clothing Company have had a developmental process that has the company target a specific clientele by specializing in the fashion that meets the appeal. For instance, the CRM at the company has developed from only creating jeans products for men to specializing in different brands of the jeans for men all over the world. In particular, the company has created brands such as the Jack and Jones Vintage clothes, the Premium by Jack and Jones, Originals by Jack and Jones, Core by Jack and Jones and the Jack and Jones Tech brands. All these are attributed to the advancement of the clothing industry while looking at the different and changing trends. In fact, this development has seen the growth of the company into other countries with more than 38 countries seen to come into the markets. This has also seen the company grow into having more than 1000 stores in these outlets. Moreover, the CRM systems have seen the company get into partnership with other wholesalers in these countries.
It has been found out that the company is a regarded as the backbone of the Jack and Jones Clothing Company. Through the CRM strategies, the company first entered the market in the early 1990s by sending a young lot of models into the Oslo Fashion Fair. The evidence of the advantage that came with this is that the company was able to capture the European market with such an entrance. Moreover, through the CRM strategies, the company went on to create a collective core of jeans aimed at the young men. To attract these customers, the company created high level collections that had a striking look. This was through the expertise that had the best quality and design was the main procedure.
Furthermore, the results show that each brand created at the Jack and Jones Clothing Company have been developed with modern twists that is long lasting and very comfortable for the wearer.
4.3 Barriers of CRM implementation in Jack Jones
Among the barriers that the implementation of the CRM strategies has faced include an array of trends and technologies.
The overall operation of the customer relationship management of the company has been affected by the changing world. The changes experienced all around the world have seen the trends change too. This has been happening constantly with the CRM systems having to create methodologies that would significantly go hand-in-hand with the types of clothing that the customers wear with the changing world.
On the other hand, the CRM systems have seen levels of difficulty in the changing technologies that competitions have taken advantage of and developed new technologies to create new clothes. In addition to this, the CRM do have barriers that affect customers. For instance, the results show that the management needs to do much to address the needs of the customers. As seen in the recent globalization, the world has seen many people change on what they wear and how they want to look. With this in mind, the main barrier would be the implementation of strategies that would enable the company creates clothing that would be accepted by the market.
Additionally, with a constant increase in sales from the brands that the company is specialized in, the company has gone further and entered into new markets. It is evident that different countries exhibit different laws and regulations that address the running of businesses. In this instance, there is a possibility that CRM from the company has had to deal with many regulations that come with starting and running a business. The governments in these countries seem to have different laws that have to be addressed regarding the concepts of running the business. This would include the procedures to include when finding out the main regulations, the process of getting to start a company, the environmental issues and the major corporate social responsibility needs in the regulations developed in these countries.
Moreover, the results presented from the case suggest that the company has grown to become one of the leading clothing companies in Europe. In this case, competition from other industry players is major barriers that the CRM at Jack and Jones Clothing Company faces.
4.4 Customer Relationship Management in Jack Jones
From the presentation in the company’s development process presented above, the CRM systems at the company seem to have developed from a small company to a major player in the clothing industry. However, the results obtained significantly addressed the procedures employed in the acquisition of customers, satisfying the customers, retention and how they address the loss of customers. These procedures of customer relationship management are presented in the tables as shown below.
The table 1 below depicts the results obtained from the case provided on the procedures that the customer relations management has undertaken to get new customers. Through procedures such as getting into fashion fairs and production of the best of quality products is evidently the methods that have been employed to get more customers into the business. More so, as can be seen in the table, development of the company has enabled more stores to be opened around the world, showing the methods that the company has gone ahead to develop to acquire new customers. Creating designs that have striking looks is a significant move made by the customer’s relationship team at Jack and Jones to acquiring more customers. The more to this is that the CRM has continuously been engaged in production of vintage collections such as the Americana and the rock and roll designs created for the markets.
Table 1 How CRM has been able to acquire customers
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Table 2 How CRM ensures the customers are satisfied
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The procedures developed by the customer relations managers at Jack and Jones Clothing Company has made more to ensure that the customers are satisfied with the products offered. In particular, as can be seen in table 2 above, the development of several hundred stores in the market has ensured that the customers are presented with the designs at their places. More so, the table shows that with five brands developed by the company, it is evident that all the customers are satisfied with each of their tastes and preferences.
Additionally, the results obtained from the table 2 above, it is evident that with this designs, the CRM has had craftsmanship when creating the unique brands for the different customers. On the other hand, to ensure the customers are satisfied, the clothes produced are customized with the needs of the customers brought to hand.
Furthermore, the tables 2 above presents that modern productions of the designs have seen lifestyles of the customers are taken into account.
Table 3 How CRM ensures the retention of customers
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The retention of customers is equally important for the company as the CRM systems are making steps that have ensured the customers that are already in the company continue to purchase the products. For instance, the specific tech design created has ensured that those customers who purchase the clothes have had supreme comfort. Moreover, the revival of the vintage collection by Jack and Jones has ensured the customers that prefer vintage items are allowed to access their products right as they need them. In addition to this, creation of a modern twist of clothes that blend with the current lifestyles and appearances of the customers has enabled these customers to remain loyal to the company. Increasingly, the creation of a more hip and long-lasting product has seen the customers that are younger to remain loyal to the originals by Jack and Jones. Furthermore, with respect to tradition, customers that want designs that have the Americana designs has seen the development of a traditional market and retaining these customers. Such cases are depicted in the table 3 outlined above.
Table 4 How loss of customers is handled in the company
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Table 4 shows the procedures employed by the CRM systems to address the loss of customers. As evident, the company has opened many stores to ensure that many customers are present to compensate for the lost customers. Moreover, from the table, creating authentic designs of jeans has seen the company avoid the loss of these customers to their competitors. Further, as presented in the tables 4 above, high quality and hip qualities have seen the original designs by Jack and Jones has ensured the young generation is managed in the market. The managers have also been able to create modern and stylish designs that have enabled the company to address the loss of the customers. Significantly, the development of the company into new markets such as collaborating with over 1000 wholesalers around the 38 countries has seen the company have an edge over the loss of the customers.
4.5 The weakness and improvement of Jack Jones CRM
Table 5 Weaknesses and Improvements seen in the case
| Weaknesses | Improvements |
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Despite the evident rise in the customer attraction and performance of the company, the company still faces by problems that might develop from various weaknesses. From the case presented for this study, it is evident that the company has concentrated on only producing jeans and specifically menswear. This is a weakness as many females are been seen to prefer these types of designs. This shows a potential loss in the market advantage. In addition to this, it is evident that producing only the jeans is a weakness as there is a possibility of the customers changing their preferences with changing times. The company CRM has not addressed how their technologies have been improving while relating to customer satisfaction and retention. This suggests a weakness on the failure to address the needs of all the potential customers.
Contrarily, while the weaknesses are evident, the company has had an improvement with the CRM systems in place. For instance, the number of stores has grown to more than 1000 stores and into more than 30 countries around the world. This has seen the company partner with other wholesalers, hence having a competitive advantage.
4.6 Further development of Jack Jones CRM
With the barriers in place and potential risks coming with the weaknesses seen in the case study, the company can have further development based on these areas. For instance, improving technologically will see the company create a competitive edge in the different markets. Additionally, to understand the needs of the customers, the company can device several communication procedures that will enable the CRM to address the concerns of each customer. Employing individuals that work in the identification of the social systems and communication systems would enable the company address the views of customers with the changing environment.
4.3Conclusion
In conclusion, it is evident from the results obtained that Jack and Jones Clothing Company has a CRM system that does a job that is up to plinth. The company has seen the development process get up the scales smoothly from the early 1990s when it first entered the Oslo Fashion Fair to having one of the largest stores and market in Europe. As a matter of fact, the company has grown to other countries and that it is now partnering with other wholesalers in 38 countries. With this, the company has addressed the issues of customer satisfaction, customer loss and the issues of retaining these customers. However, with such steps taken, the company faces a different future if the weaknesses identified are not addressed. More so, much needs to be done to ensure the further development of the company.
5.1. Introduction
This chapter aims to give a comprehensive analysis and discussion of the data collected from interviews with the customers and the case study. The discussion presented in the chapter seeks to address the main purpose presented for the study. In particular, the main purpose for this study was to analyze the customer relations management practices in the clothing industry.
Considering this idea, the researcher sought to address the research objectives of the study. For instance, the research sought to provide a clear understanding of CRM. More so, the study was to identify the various elements that characterize CRM while evaluating the use technology in implementing CRM practices in industries in the clothing sector. In addition to this, the study was to identify the factors that drive the need for CRM in the clothing industry. Furthermore, the study was to assess the relevance of CRM to a multi-national company like Jack and Jones and enumerate its contribution towards customer satisfaction. Increasingly, the study sought to address the challenges faced by companies in the clothing industry in implementing CRM. Finally, the research was important when analyzing the positive contributions of CRM towards customer satisfaction in the clothing industry. Additionally, it provides an general idea of the study while discussing these findings based on the literature material and views by various experts and researchers.
5.2. Overview
Based on the purpose presented above, the research was performed by presenting a case analysis of the CRM systems as presented in the documentation provided on the Jack and Jones Clothing Company. From the data collected, it is evident that the clothing Company has employed a substantial amount of strategies and procedures to ensure the customers are happy.
From the 1990s, Jack and Jones Clothing Company has been one of the best sellers in the clothing industry. The data obtained from the case study show the company has had reception that exceeds all the expectations by making menswear, with brands that are designed for each market segment created in the company. More so, the company has had an up to plinth performance with as many as over 1000 retail shops opened in many states. Increasingly, the company has expanded to more than 38 countries, with an aim of capturing new markets in general. Additionally, the company has seen these Jack and Jones clothes sold by over a thousand wholesale partners around the world. The findings made from the interviews with the customers show that the employees from the company are courteous and that they are knowledgeable. These findings show that they were knowledgeable to levels that address the needs of the customers. Specifically, the findings show that 2 respondents said that employees were knowledgeable and another 2 said that the employees understood their needs.
However, despite the significant rise in the markets and the CRM strategies employed, the company has also had few barriers to the success of these customers, For instance, when getting to new markets; the company has to go through vicious regulatory systems and governmental legalities. The evolution experienced in the technology need to be addressed by the CRM as it has evolved to creation of a demand in the technologies. In fact, the findings from the interviews show that 4 respondents were not satisfied with the currency of the technology at the company.
Moreover, designs such as the originals, vintage collections, premiums and the core by Jack and Jones have seen a continued constructing to produce quality products. This offers a full range of clothes for every man. The customers also pointed out that these products are current and are of quality.
5.3. Discussion based on the objectives
- To understand the meaning of CRM
In order to bring out a clear meaning of customer relationship management, the data obtained from the case study on Jack and Jones Clothing Company suggests that there is a consistent development in the CRM procedures. For instance, it is evident that the managers acknowledge the fact that many of these products produced have addressed the acquisition of these customers while also ensuring that they are satisfied. To illustrate, Jack and Jones Clothing Company has continued to produce clothes that are up to date with the current trends by producing brands that are suitable for each of the needs of these customers. To acquire new customers, the company has continued to expand, with more than 1000 stores opened in more than 38 countries. More so, to ensure that these customers are satisfied, through quality craftsmanship, unique brands for different tastes have been produced. The results from the interviews also point out that the products from the company are durable and that they are up to date. Actually, 4 customers say that the products they buy from the company are up to date and 6 say that they are fashionable. More so, the company ensures that they retain the customers by ensuring these products are comfortable and each brand produced is blended with the best designs that fit the different preferences of these customers.
The data obtained is broadly consistent with the various literature materials as presented in chapter two. For instance, while looking at the literature presented by Kumar (2010) defines CRM as building a one on one relationship with customers that can drive value into a firm. An important explanation of such views is that the author addresses the physical aspect of interacting with customers to understand them for the benefit of one’s business.
On the other hand, Teo et al., (2008) suggest the use of underlying infrastructure and sophisticated applications to understand customers and analyze customer information. Their central focus was on the use of available resources to tie together the power of CRM so as to create maximum benefits. However, while looking at the findings, one can point out the need for CRM in Jack and Jones Company to come up with strategies that address the needs of the customers. 3 customers agree that the products offered at the company need to however address the needs of the female customers. This presents a limitation on the products and the need for the CRM to address the female customers.
The most likely explanation of these negative results addressed in these concepts of CRM in the company is that presented by Hosseini et al., (2010) on the primary goals of CRM. According to Hosseini et al., (2010) it is important to note the fact the primary goal of CRM is to pave way for better physical relationships with the clients so as to increase profit margins in a company. Jack and Jones clothing line brings to the market jeans wear for men.
Generally, the concepts of CRM can be agreed upon to be those that address the interrelationship between the customer and the businesses.
- To identify the various elements that characterize CRM
As evident in the results obtained from the case presented, a number of elements characterize CRM systems. For instance, the customer is the main element in the CRM. The data obtained in the study suggests that the CRM in Jack and Jones have addressed the needs of the customer by ensuring they are satisfied hence reduced losses of these customers. These results concur with other studies, which have specifically shown that the customer is the main element when addressing the CRM systems in any business organization. From the procedures employed to acquire, satisfy, retain and avoid any losses of customers, there is a consistency in the fact that such procedures address the needs of the customer (Knoxs et al., 2007). One question still not addressed in this is how these characters involving the customer come to play. While it is true that Knoxs et al., (2007)’s views address the customer, the findings have surprisingly not addressed the strategies involved in addressing the customers.
More so, methods of communication to address the various trends and regulatory systems in different markets are not evident in the case as presented in Jack and Jones Clothing Company. These results are therefore inconclusive on what the company CRM has done to ensure they are updated with the current trends that meet the needs and wants of the customers. It is therefore important to look at the procedures developed and presented in chapter two by Baker and Hart (2008) use of internet services to promote CRM. According to Baker and Hart (2008), the use of internet especially for emerging markets provides a wider platform and presents better opportunity to improve on customer satisfaction and retention. Moreover, Rollins and Halinen (2005) emphasize on the need to synchronize Customer Knowledge Management. In their opinion, understanding the needs of the customers is an added advantage as it can greatly enhance customer retention. The study results realized in this study do not present how the CRM at Jack and Jones Clothing Company has addressed the knowledge of these customers. The analysis therefore presented a limitation on these systems and that the possible applications are therefore needed in CRM practices. Actually, the literature as, presented earlier suggest the use of technology in not only communication, but also in improving the skills of management while addressing the needs and wants of the customers. True to this, updating management concept involves use of diverse means to improve on the skills of running a business (Rollin and Halinen, 2005). According to Rollin and Halinen (2005), CRM is a key element of management as it focuses on bringing together all aspects involved in customer satisfaction. Therefore, Rollin and Halinen (2005) acknowledge the fact that technical-know-how is mandatory for these business systems. With the clothing and textile industry being of reference, Rollin and Halinen (2005) present a valid argument the importance of synchronizing CKM and CRM. CKM can bring new ideas on the table in order to improve on the managerial skills in order to get wholesome growth in the business.
However, based on the findings, it is evident that the company has gone a notch higher in the production of fashionable products such as the Jack and Jones Tech is crafted with quality with respect to tradition. These findings suggest that one other component is the technology and quality of work involved in the production of these products. Such findings are consistent with the literature presented by Ramasubbu, Mithas and Krishnan (2008) on the importance of technical support vs. employee skills in harnessing CRM. In contrast to other reports presented in the literature, the data collected from the case study suggest that to ensure that Jack and Jones Clothing Company has addressed the needs of the customers, quality seems to be the main element.
The finding was quite unexpected and therefore suggests that the company has gone further to employ qualified workers, who present proper craftsmanship to produce quality designs. In agreement, the literature material presented by Berry and Linoff (2004) clearly bring out the need to prioritize on interpersonal relationships as opposed to making the use of technical support a primary goal. As a matter of fact, the primary focus of CRM in a company such as Jack and Jones is to exploit fully the available market by targeting men and their partners, through provision of quality services and quality products. Provided that, one on one interaction with the customers takes priority, the use of tech support to enhance CRM is a great way to increase customer response, retention and satisfaction. Concurrently, the data collected from the interviews show that employees and the technology needs to be updated at Jack and Jones.
More so, the results obtained suggest there is competition from other players in the industry while the social systems also keep changing more often. As a solution, the results show that the CRM needs to be addressed of the current needs from the customers. Similarly, Rollin and Halinen (2005) say that updating management concept involves use of diverse means to improve on the skills of running a business. CRM is a key element of management as it focuses on bringing together all aspects involved in customer satisfaction. Actually, Bejou et al.,,, (2010) explores to understand the barriers to effective CRM in multinational companies. He found out that some of the common barriers to CRM include different business practices in various nations, varied government regulations and intense competition or lack of competition. True to this, the findings made from the case study have shown that among the barriers that the CRM systems have faced is the need for the Jack and Jones Company to be regulated in the new markets. So, to ensure that these elements of the CRM are addressed perfectly by the company, there is need to have constant review of the regulatory structures in the new markets. Comparing these findings to the literature presented by Mohan, Choi and Min (2008), it is evident that the one way to tackle the problem of government regulations is to take time to understand the standards required by various government policies in the different countries.
On the contrary, according to Donaldson and O’toole (2007), formulating and implementing a relationship strategy is part of CRM and this would be the basis of these strategies. In fact, identifying the customers, understanding and predicting their behavior can facilitate a way to formulate and implement workable strategies.
Despite the evident disagreements in the literatures, one can agree that the significance of the findings made from the analysis is that the CRM need to address the various elements that will improve the customer-relationship with the business.
- To evaluate the factors that drive the need for CRM in the clothing industry
Customer satisfaction is the main stay of every business. Understanding every client’s needs and meeting them fully is the core purpose of having a business. With the focus being on Customer Relationship Management (CRM), this chapter seeks to analyze the various concepts on this subject as discussed by various authors. The purpose of this literature review is to assess all the elements of CRM as proposed by authors such as Kumar (2010), who defines CRM. Others such as Knoxs et al., (2007) and Hoyer (2004) put down various suggestions on the possible frame works and elements for effective CRM. The primary goal is to understand and correlate the benefits of CRM in building solid brands to ensure customer satisfaction and improve on profitability in business. The primary target is the clothing industry with Jack and Jones clothing lines as the case study. Although this may be true, priority should be given to the high profit customers as proposed by Kim et al., (2006) while being careful not to ignore the other customer who form a fundamental foundation for the growth of the business and can serve as a security in the event of falling out with a big customer. In the clothing industry, Ngai (2005)’s the core of good CRM practices because all customers or important and more sore so the low retail customers as cumulatively they surprisingly match that profits by a single high profit customer.
Peter and Pressery (2010)’s definition that puts into perspective the fact that a system and technology designs are part of the strategy towards effective use of CRM is important. However, it is important to note the fact the primary goal of CRM is to pave way for better physical relationships with the clients so as to increase profit margins in a company. Jack and Jones clothing line brings to the market jeans wear for men. It is important to utilize all avenues to get to the client and this is where the importance of technology as brought forth. Inspite of all the efforts by various authors to coin a definition for CRM, Hosseini, Maleki and Gholamian (2010) concluded that it is difficult to find an approved definition of CRM. This is true owing to the diverse nature of what CRM entails. As evident from the findings, technology is one other factor. In comparison, Ramasubbu et al., (2008) observe the importance of tech support vs. that of employee skills. From their research, they conclude that both are equally important in enhancing CRM. With the clothing industry being the main focus, both tech support and use of interpersonal relations to guarantee customer satisfaction is of essence. The only way to enhance interpersonal skills is by investing in employees who understand the importance of good public relation skills. Actually, from the results obtained, primary focus of CRM in a company such as Jack and Jones is to exploit fully the available market by targeting men and their partners, through provision of quality services and quality products.
Generally, it is important to have a one on one interaction with the customers takes priority, the use of tech support to enhance CRM is a great way to increase customer response, retention and satisfaction.
- To assess the relevance of CRM to a multi-national company like Jack and Jones and enumerate its contribution towards customer satisfaction
The results presented show that the company has grown since its first outing in the Oslo Fashion Fair. The company grew from one store, to become one of the largest clothing company in Europe. Another point from the data is that the company has grown into other countries. The data obtained show that the company has significantly grown to other 38 countries in the world. Actually, besides having over 1000 stores, the findings show that the company has collaborated with other wholesalers to sell their merchandize. With many customers, with technology, the company can actually talk and see the issues that surround the customers through communication procedures. However, the findings fail to answer this question on the main procedures that the company addresses when looking at these international markets.
On this note, Mohan, Choi and Min (2008) propose the use of social networking so as to build CRM. With more people hooked on to social media such as; Facebook and Twitter, it important for every entrepreneur to understand these platforms. They demand to create and design to systems that use the social media platforms and get to find out the views of these customers from other places.
On the other hand, Ramasubbu et al., (2008), set out to compare the importance of technical support vs. employee skills in harnessing CRM. However, Berry and Linoff (2004), clearly bring out the need to prioritize on interpersonal relationships as opposed to making the use of technical support a primary goal. While it is of essence to recognize the growing influence of social media on businesses, there is need to nurture a one on one relationship with the clients. In order to appeal to the younger generation, targeting the use of social media as a marketing strategy is of utmost importance.
In fact, the data suggests that the company has gone further to address the international markets. However, still, no data from the case show how they get information from these customers in the company. Actually, the authors Mohan, Choi and Min’s (2008) brought the use of social media to attract a wider customer base. Moreover, targeting young men, as is the case of Jack and Jones, use of social media proves to be very resourceful as a marketing strategy. Implementing CRM successfully in every business guarantees increased awareness for the company’s products and this directly translates to increased demand and hence increased profit margins. For this reason, the practice of CRM in every business should be geared towards increased customer satisfaction that warrants customer retention. In addition to this, the practice of CRM should be focused on achieving synergy between the use of modern advancements in the world of information technology and the old school ways that involve a one on one approach towards customer service.
When involving technology, the use of the communication systems as presented will lead to an improved relationship between the company and its customers. The literature presented by Bohling et al., (2006) and Kranikov et al., (2009) recognize the fact that CRM leads to cost and profit efficiencies. It is therefore important to formulate strategies to use in these new markets.
In agreement, Teo et al., (2006) outline three key steps in the strategic implementation of CRM. Identifying the potential clients, understanding them and predicting their behavior are the key steps towards strategic CRM especially for emerging market firm.
Furthermore, Xu and Watson (2005) say that customer knowledge is synchronized with CRM so with the set target being to attract more customers.
Generally, the findings made have not addressed the strategies by CRM in Jack and Jones that address the multi-national systems.
- To identify the factors that contribute to the challenges in implementing CRM
Based on the literature presented in chapter two, understanding every client’s needs and meeting them fully is the core purpose of having a business. The literature presented above show that with development of the CRM systems, CRM at Jack and Jones Clothing Company has ensured customer acquisition, satisfaction, retention and addressing the loss of customers. The factors that drive the need for CRM in the clothing industry also seem to be the barriers that come with the implementation of the CRM in Jack and Jones. The interviews and the case study point out the need to update the current technologies of communication. This is similar to the views presented by Kumar (2010) that a holistic approach not only focuses on the interpersonal relationships but also involves other aspects such as employing technology in then business ventures.
On the other hand, Knoxs et al., (2007) assessed the impact of information technology on CRM. In as much as the use of tech support is important, the need to for physical interpersonal relationship is fundamental. However, such views of the use of technology have constantly been hampered by the changing social-systems. For instance, the procedures of mining data as presented by Knox et al., (2007) agree that with such technological improvements in the industry, it is important to look at tech support vs. that are looked at by the employee skills. From their research, they conclude that both are equally important in enhancing CRM. With the clothing industry being the focus, both tech support and use of interpersonal relations to guarantee customer satisfaction is of essence. This might be why the customers seemed to have a problem with the responses and the rate of responses made by the employees. This shows that there is need to improve the technology to improve these concerns.
The use of tech support is the greatest way to conduct cheap research and learn as much as possible about the potential clients. This is accordance to the views presented by Berry and Linoff (2004) who conceptualized the use of data mining to acquire information about customers so as to satisfy their needs fully. The results obtained also show that the processes employed by CRM in Jack and Jones have created the simple understanding of the preferences of the customers. These findings are in consistence with Payne and Frow (2005)’s suggestion on this matter involves an understanding that CRM involves a process and each step is important. Correspondingly, Teo et al., (2006) outline three key steps in the strategic implementation of CRM. Identifying the potential clients, understanding them and predicting their behavior are the key steps towards strategic CRM especially for emerging market firm.
However, with such different views, one can agree that the factors that influence the CRM procedures in any company tend to revolve around the futuristic view of the company.
- To analyze the positive contributions of CRM towards customer satisfaction in the clothing industry
The findings made from the study have addressed the needs of the customer. For instance, with different brands, the company has seen different customers get to have the best of the products from the company. For instance, each of these five brands has seen the procedures the clients of different markets. True to this, the Knoxs et al., (2007), presents ideas that the primary focus should be on the best client. Moreover, using quality employees, the company has ensured brands created with great artistry is improved in the company.
Moreover, with such strategies, the company has gone further to target young men. With their target population being young men, it is important to bear in mind the fact that these specific group would invest in any clothing item that makes them fashionable, stylish and classy. Increasingly, the production of five unique brands has seen the different customers satisfied with the products they buy from this company.
More so, the creation of customized brands has enabled satisfaction of specific customers.
One limitation presented in this finding is that while focusing on specific targets, the company has seen the company loose valuable markets in the older generation, the female customers and young girls. This appears to be a weakness attributed to thee CRM systems in the Jack and Jones Clothing Company when they only have a particular target market. Therefore, when targeting young men, as is the case of Jack and Jones, use of social media proves to be very resourceful as a marketing strategy. Implementing CRM successfully in every business guarantees increased awareness for the company’s products and this directly translates to increased demand and hence increased profit margins. For this reason, the practice of CRM in every business should be geared towards increased customer satisfaction that warrants customer retention. In addition to this, the practice of CRM should be focused on achieving synergy between the use of modern advancements in the world of information technology and the old school ways that involve a one on one approach towards customer service. This is in line with the arguments by Ramasubbu, Mithas and Krishnan (2008). The implication of this is that with improved surveillance by the CRM in the company, the target market can be understood and the relevant targets addressed to improve profitability.
Concurrently, understanding the competition as proposed by Kim and Mauborgne (2015) is fundamental in reducing customer loss. On the other hand, Mohan, Choi and Min (2008) explore the use of social networks to understand the customers. This can greatly alleviate the worries on customer loss especially for a company like Jack and Jones that needs to keep abreast with all the upcoming trends. Generally, while such views must not be ignored, with craftsmanship, technology and ensuring all the needs of the customers are met, Jack and Jones Clothing Company has significantly tried their level best to introduce strategies that improve on customer satisfaction.
5.4. Conclusion
In conclusion, the findings analyzed have identified a number of implications and failures as seen in the case. The results address the different research objectives by analyzing the findings. For instance, the study has found out that the CRM systems involve the main components of a business, which are the customers. Through procedures of acquisition, the company has grown and created different brands for the young men. However, from the analysis, several limitations such as the technologies need to be addressed when looking at how the international markets have been addressed by the company CRM. Moreover, the discussion has suggested the use of social media platforms to check the views of the customers in the industry, especially the new markets in other countries. Furthermore, the analysis suggests that not all the elements of CRM have been addressed deeply in this study. For instance, when dealing with acquisition, technical systems of CRM knowledge have not been presented as used in Jack and Jones Clothing Company. This is by addressing the procedures that will improve communication between the customers and the businesspersons.
6.1. Introduction
This chapter presents the conclusions based on the comprehensive analysis and discussion of the data collected from the case study. In this case, the conclusion seeks to address the main aim of the study. This is through presenting the research objectives from the research purpose presented earlier in chapter three. In particular, the main purpose for this study was to analyze the customer relations management practices in the clothing industry. A case study on the performance of CRM at the Jack and Jones Clothing Company
Therefore, the researcher sought to address the research objectives of the study. For instance, the research sought to provide a clear understanding of CRM. Additionally, the study was to identify the various elements that characterize CRM while evaluating the use technology in implementing CRM practices in industries in the clothing sector. Further, the study was to identify the factors that drive the need for CRM in the clothing industry. Increasingly, the study was to assess the relevance of CRM to a multi-national company like Jack and Jones and enumerate its contribution towards customer satisfaction. Additionally, the study sought to address the challenges faced by companies in the clothing industry in implementing CRM. In the end, the research was important when analyzing the positive contributions of CRM towards customer satisfaction in the clothing industry. The results obtained and discussed in the previous chapter are presented in summary. On the other hand, these findings address both the implications and the failures of the case presented in the study.
Therefore, this chapter also presents the failures identified from the findings and the recommendations presented for further study.
6.2. Overall Conclusions
Based on the findings made from the study, it can be concluded that the investigation on the current trends in the operations at Jack and Jones Clothing Company have addressed a significant proportions of the CRM performance. At first, this paper clearly shows that the company does embrace the needs of the customers through the procedures involved in the growth and operations in the company.
Moreover, it has been demonstrated that Jack and Jones Clothing Company has gained an advantage in the market as it has continually grown from operating in one particular place to being one of the leading companies in the clothing industry in Europe. Increasingly, the company has clearly gone into new markets such as entering into another 38 countries all over the world. With the partnership programs, the results obtained suggest that the CRM strategies in Jack and Jones are geared towards obtaining a competitive advantage over its rivals.
It is evident that the company began addressing the customer relations by sending young fairy soul to the Oslo Fashion fair. This perfect strategy allowed the company to acquire and attract new customers into the market. The approach could also be used by new companies who are at the first stages of entering into a competitive market. In fact, the findings could have much potential for other applications that would be used by firms desiring to gain competitive advantage in markets that are controlled by monopolies. More so, the customers seem satisfied at different angles with the employees and the products offered at the company.
Moreover, from the outcomes of this research, it is evident that through pure artisanship, something the company refers to as ‘craftmanship’, the CRM at the company has ensured that the quality of products produced are in tandem with not only the current trends, but also are appealing to the customers. This shows that the quality, durability and captivating properties of these products are addressed. This has actually seen the company produce five different brands of jeans for young men that do meet the needs and tastes of different customers in these markets. The limitation is that the company does not produce products for the female customers.
These findings do address the fact that the CRM systems in Jack and Jones do address the issues that surround the satisfaction of the customers. In addition to this, these procedures of producing different brands have addressed the various elements of a customer relationship strategy. The elements such as retention has been addressed by development of traditional brands that has a niche market, the authenticity of these designs and the vintage collections that have been developed in all these systems of branding. Such findings clearly have a direct relevance in that companies aiming at retaining customers need to address the tastes and preferences of the customers.
In addition to this, the results presented found that the CRM systems in Jack and Jones are facing a number of barriers such as constantly changing trends in technologies, customer needs and new entrants into the market. Moreover, the dynamic societies and the regulatory systems in different countries have been barriers of the CRM strategies developed at Jack and Jones Clothing Company. However, based on such systems, the CRM at the company needs to formulate strategies that seek to counter the changing trends and competition besides looking at how to ensure they are satisfying the regulatory bodies in different countries.
However, despite the results showing a working and up to plinth performance by the CRM, it can also be concluded that CRM has failed in addressing the needs of the customers through communication mechanisms. For instance, the case study does not address how CRM communicates with the customers, hence improving on the grievances of these customers. More so, the results depicted that the CRM systems at the company have continued to enhance their overall performance without getting to acknowledge that the market does not only revolve around the young men.
The existence of these failures at the company is a clear indication that the company has a number of weaknesses. For instance, it is possible to conclude that the strategies need to address all genders and ages to ensure the company attracts more customers. Additionally, it is evident that technologies of communication and design are having a hard time, as the communication is not addressed.
Nonetheless, the findings of this study are quite convincing, and that the implications that can be addressed in this research would be of significance to other organizations in the clothing industry.
6.3. Recommendations
Clearly, further research is required to prove that business organizations are addressing relationship strategies through management practices. Therefore, based on the failures that are presented, future researches on CRM in organizations should continued to enable justification of the significance of CRM.
Based on the findings made from this study, further study of methods of engaging the customers and getting to understand their needs will be of great interest. In addition to this, it is necessary to extend much knowledgeable studies of the methods of ensuring that the company addresses technological changes in every step.
Appendix 1: Interview questions for customers who purchase products from Jack and Jones Company
| INTERVIEW QUESTIONS ASKED TO 10 CUSTOMERS WHO PURCHASE PRODUCTS FROM JACK AND JONES CLOTHING COMPANY | |
| 1. Please tell me why you choose to purchase products from Jack and Jones Clothing Company | |
| 2. How satisfied are you with the products from Jack and Jones Clothing Company? | |
| 3. How are you satisfied with the customer service interaction at Jack and Jones Clothing Company? | |
| 4. Does the customer service you find at Jack and Jones Clothing Company live up to your expectations? | |
| 5. How likely do you intend to return or purchase the brands from Jack and Jones Clothing Company? | |
| 6. How likely would you recommend the products from Jack and Jones Clothing Company to your family/friend or colleague? | |
| 7. Any suggestion for improvement in customer service or the products from Jack and Jones Clothing Company | |
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