SBANC
Newsletter
July
25, 2006
Issue 431-2006
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QUOTE
"This
may seem simple, but you need to give customers what they want,
not what you think they want. And, if you do this, people will
keep coming back."
-- John
Ilhan
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FEATURE
PAPER
Customer
Relationship Management in the Small Business Service Sector:
Developing a Process to Enhance the Customer Experience
The
following paper was presented at the 2006 USASBE/SBI Joint Conference
in Tucson, Arizona. It was written by Peggy E. Chaudhry of Villanova
University.
Abstract
The
goal of this study is to provide a synopsis of innovative CRM
concepts that can assist a
small business develop a process to effectively communicate with its customer,
such as an enewsletter
and CD-ROM direct mail campaign. A practitioner-oriented model is developed that
depicts the CRM process of using multiple communication channels, building loyalty,
and
customer retention tactics to foster the customer experience.
Introduction
Customer Relationship
Management (CRM) are buzz words that question how the firm fosters
a
‘360-degree review’ of the customer lifecycle? After reviewing the literature
on CRM, one may
ask what is really new about CRM marketing tactics? The concepts of building
loyalty and longterm
relationships with a customer have been widely researched for many decades. So,
do we
really need another study that tells us how to build a better relationship with
a client? The
answer is ‘yes’ based on the goal of updating the entrepreneur on truly innovative
and affordable
CRM concepts in order to develop a better process to effectively communicate
with the
customer. Thus, this study highlights the pragmatic applications of CRM using
Pertzsch
Design, a commercial design company with three employees and a marketing budget
of $1,000,
to further validate the ‘So What?’ question.
Currently, the entrepreneur faces a major marketing problem, how to effectively ‘mine’ new
business opportunities through innovative customer relationship management? The
majority of
the company’s business comes from ‘word-of-mouth’ through previous clients and
working as a
sub-contractor for a small number of architect firms. Thus, the owner needs to
refocus her talent
to soliciting future work through providing an exceptional customer experience
to these clients.
Overall, in order to implement the CRM tactics, the firm must develop multiple
communication
channels, build customer loyalty, assess customer retention, and change service
offerings to
implement this proposed process. Key recommendations for this firm are to develop
an
effective e-newsletter and to create a CD-ROM direct mail campaign similar to
Volvo’s recent
"For Life" campaign to its dealer network. Pertzsch Design thrives on its image
and portfolio of
creative projects. Thus, a campaign design will be developed and mailed to the
company’s
customer-base.
Read
the Entire Paper...
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CONFERENCES
AMA
|
| Who: |
Atlantic
Marketing Association
|
| What: |
Annual
Meeting
|
| Where: |
Francis
Marion Hotel in Charelston, South Carolina, USA |
| When: |
September
27-30, 2006 |
|
|
|
FFI
|
| Who: |
Family
Firm Institute
|
| What: |
Annual
Conference -- FFI's 20th Anniversary
|
| Where: |
San
Francisco, California, USA |
| When: |
October
25 - 28, 2006 |
|
|
|
SMA
|
| Who: |
Society
for Marketing Advances
|
| What: |
2006
Conference
|
| Where: |
Gaylord
Opryland Resort and Convention Center in Nashville,
Tennessee, USA |
| When: |
November
1 – 4, 2006 |
|
|
|
AGB
|
| Who: |
Association
for Global Business
|
| What: |
18th
International Conference
|
| Where: |
Hyatt
Regency, Newport Beach, California, USA |
| When: |
November
16-19, 2006 |
|
|
|
IPSI
|
| Who: |
Internet,
Processing, Systems, and Interdisciplinary (Research)
|
| What: |
IPSI
2006 - Slovenia
|
| Where: |
Lake
Bled, Slovenia |
| When: |
November
30-December 3, 2006 |
|
|
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CALLS FOR PAPERS
ASBE
|
| Who: |
Association
for Small Business and Entrpreneurship
|
| What: |
Fall
Conference
|
| Where: |
Best
Western in Corpus Christi, Texas |
| When: |
Novermber
1-3, 2006 |
Submission
Deadline:
August 1, 2006
|
|
|
|
USASBE
|
| Who: |
United
States Association for Small Business and Entrepreneurship
|
| What: |
2007
USASBE Conference
|
| Where: |
Disney's
Coronado Springs Resort in Orlando, Florida |
| When: |
January
11-14, 2007 |
Submission
Deadline:
August 15, 2006
|
|
|
|
AA
|
| Who: |
Allied
Academies
|
| What: |
2006
Fall International Conference
|
| Where: |
Atlantis
Casino Resort & Spa, Reno, Nevada, USA |
| When: |
October
19-21, 2006 |
Submission
Deadline:
September 11, 2006
|
|
|
|
WDSI
|
| Who: |
Western
Decision Sciences Institute |
| What: |
36th
Annual Meeting
|
| Where: |
Denver,
Colorado, USA |
| When: |
April
3-7, 2007 |
Submission
Deadline:
October 1, 2006
|
|
|
|
RCC
|
| Who: |
Rollins
China Center, Rollins College |
| What: |
The
Globalization of Chinese Enterprises: The Advent
of a New Age
|
| Where: |
Rollins
College in Winter Park, Florida, USA |
| When: |
November
30-December 1, 2006 |
Submission
Deadline:
October 15, 2006
|
|
|
|
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TIP
OF THE WEEK
Attitudes
Toward Shopping
Considerable research has been done on people's attitudes toward shopping. Such attitudes have a big impact on the ways in which people act in a retail setting. Retailers must strive to turn around some negative perceptions that now exist. Let us highlight some research findings.
Shopping
Enjoyment:
In general, people do not enjoy shopping as much as in the past.
So, what does foster a pleasurable shopping experience--a challenge
that retailers must address? Many shoppers enjoy bargain hunting
("I get a thrill out of finding a real bargain"), recreational
browsing ("window shopping"), being pampered by salespeople
(difficult for retailers to accomplish in this era of self-service
and cost cutting), and the opportunity to get out of the house
or office.
Attitudes
Toward Shopping Time:
Retail shopping is often viewed as a chore: "Consumers now
attempt to limit the time they spend shopping. Time-pressed by
family and work responsibilities, they spend fewer hours cruising
the mall in search of the perfect item, and look to get what
they need as quickly as possible. This trend has been dubbed
'precision shopping.' The upside of precision shopping is that
consumers spend more money each time they visit a store."
Shifting
Feelings About Retailing:
There has been a major change in attitudes toward spending,
value, and shopping with established retailers: "The same shopper
who buys commodity goods at a BJ's Wholesale Club Inc. may also
buy expensive apparel at Nordstrom. This shift does not appear
to be transitory, but rather seems to define a more enduring
pattern of the sameness of malls, with their closed-in windowless
feel and identical cast of retailers and food court vendors."
Why People Buy or Do Not Buy on a Shopping
Trip: It is critical for retailers to determine why shoppers leave without making a purchase. Is it prices? A rude salesperson? Not accepting the consumer's credit card? Not having an item in stock? Or some other factor? According to Kurt Salmon Associates, here are the top 10 reasons why shoppers leave an apparel store without buying:
1. Cannot find an appealing style.
2. Cannot find the right size or the item is out of stock.
3. Nothing fits.
4. No sales help is available.
5. Cannot get in and out of the store easily.
6. Prices are too high.
7. In-store experience is stressful.
8. Cannot find a good value.
9. Store is not merchandised conveniently.
10. Seasonality is off.
Attitudes
by Market Segment:
According to Adjoined Consulting, shoppers can be broken
into four types. "Thrifties" are most interested in price and convenience.
They are apt to shop at Wal-Mart. "Allures" want a "fun, social shopping
experience." They gravitate toward retailers such as Bloomingdale's
and Limited Brands. "Speedsters" want to shop quickly. They shop disproportionately
at Target and Costco. "Elites" want quality merchandise, an unhurried
shopping experience, and the ability to be educated about products.
They patronize retailers such as Neiman-Marcus and Amazon.com.
Adjoined Consulting
believes that many "retailers don't know how their customers prefer their
shopping experience and compete by doing what their competitors
do. But that doesn't work. Customer insight will allow a retailer
not only to
survive but to thrive against even the toughest competition."
Attitudes
Toward Private Brands:
Many consumers believe private (retailer) brands are as
good as or better than manufacturer brands: "For American consumers,
private brands are brands like any other brands. In a landmark
nation-wide study, 75 percent of consumers defined store brands
as 'brands' and ascribed
to them the same degree of positive product qualities and characteristics--such
as guarantee of satisfaction, packaging, value, taste, and performance--that
they attribute to manufacturer brands. Moreover, more than 90
percent of all consumers polled were familiar with private brands,
and 83 percent
said that they purchase these products on a regular basis.
| Barry
Berman and Joel R. Evans. Retail Management: A Strategic
Approach
10th Edition Pearson Education, Inc. 2007 Pages
208-209. |
ANNOUNCEMENTS
IEDC 2006
Annual Conference
This year's conference
upholds the goals of the organization by providing a forum to
share ideas, learn from experts and practictioners, and provide
ways to intensify the economic vitality of our communities. As
we enter into this new Knowledge-Driven Economy, There is the
brimming challenge of which directions to take and what issues
to tackle. This conference will discuss the latest trends in
economic development
and illustrate different successful strategies and lessons learned
to help you create your community's Roadmap to the Knowledge-Driven
Economy.
The staff has worked hard to create a program that provides an intensive learning and networking experience. The New York Host Committee has worked even harder to showcase the many charms and attractions of the City. The Conference is September 17-20, 2006 at the New York Mariott Marquis in Manhattan. For more information and to register online go to IEDC Online
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The
SBANC Newsletter is provided as a service to the members of our
affiliates: Academy of Collegiate Marketing Educators (ACME), Association
for Small Business & Entrepreneurship (ASBE), Federation of
Business Disciplines (FBD), International Council for Small Business
(ICSB), Institute for Supply Management (ISM), The International
Small Business Congress (ISBC), Marketing Management Association
(MMA), Small Business Administration (SBA), Service Corps of Retired
Executives (SCORE), Small Business Institute (SBI), Society for
Marketing Advances (SMA), United States Association for Small Business & Entrepreneurship
(USASBE), U.S. Department of Veterans Affairs (VA).. If you are
interested in membership or would like further information on one
of our affiliates, please see our web site at http://www.sbaer.uca.edu
SBANC STAFF
Main Office Phone: (501) 450-5300
Dr.
Don B. Bradley III, Executive Director of SBANC & Professor
of Marketing;
Direct Phone: (501) 450-5345
Brandon
Tabor, Development Intern
Tyler
Farrar, Development Intern
Garion
McCoy, Development Intern
Casey Thomson, Development Intern
To subscribe or unsubscribe to the
SBANC Newsletter, please E-mail SBANC at sbanc@uca.edu
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