Vol. 2 (2012) No. 1 ISSN: 2088-5342
A Content Analysis on Customer Relationship Management Software
(CRM Software) for Visualizing Customer Lifetime Value of
Hypermarket
Abdul Manaf Bohari
#*, Ruslan Rainis
#, Malliga Marimuthu
## School of Humanities, Universiti Sains Malaysia, 11800 Penang, Malaysia
E-mail: manafdr@uum.edu.my; abdmanaf.bohari@yahoo.com
*UUM College of Business, UUM, 06010 UUM Sintok, Kedah, Malaysia
Abstract
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Traditionally, customer relationship management (CRM) software has been used for managing customers with aimed for established the customer database. Most of hypermarket business has been applied CRM software as a platform for analyzing their current and potential customer especially brings more income to their business. Commonly, the hypermarket has success on establish and managing their customer database, as one of important aspect for sustaining their profitability, but most of them still have problem in visualizing their customer with specific reference to the geographical location, as well as real marketplace. The strategic question is how good the CRM software in visualizing the customers value with specific reference to lifetime value of customer in the real geographical location. The objective of this paper is to analyze the capability of selected CRM software, such as NetSuite,Microsoft CRM,eSalesTrack, Salesnet, C2CRM, and Pivotal with specific attention on spatial function for managing the lifetime
value of customer in the geographical marketplace. A content analysis approach has been using to investigate each types of selected CRM software with main reference to hypermarket business in Malaysia. Meanwhile, 60 respondents have participated in the study purposely for testing, examine and experienced the trial version of selected CRM software. In general, the finding shows that CRM software provides advances feature of managing customer value, especially for targeting, segmenting and prospecting customer. Most of the CRM software also provides valuable information to advice the marketers for selecting the best target of customer segment. However, the biggest disadvantage of CRM software, practically, it has no platform for visualizing every single customer as it in the actual setting of geographical location. In addition, most of CRM software has no ability to visualize customer value as the real they look like. At the end, some suggestion has made for used the geographical information technology (GIT) for strengthening the capability of CRM software in visualizing lifetime value of individual customer that potentially to enhance the performance of visualized customer value with precise and real time results.
Keywords- Content Analysis; CRM Software; Customer Lifetime Value; Hypermarket; Geographical Information Technology
I. INTRODUCTION
Managing customer in the marketplace is vital important to the business for sustaining their business performances, both for short and long term of operation. The customer is an important asset to the business with continuous contribution to the firm are mostly considers as important factor in planning the strategic marketing, as well as predictor to their future profitability [1]. Traditionally, customer relationship management (CRM) software has been used for managing customers with aimed for established the customer database. Most of hypermarket business has been applied CRM software as a platform for analyzing their current and potential customer especially brings more income to their
business. Therefore, the hypermarket has success on establish and managing their customer database, as one of important aspect for sustaining their profitability, but most of them still have problem in visualizing their customer with specific reference to the geographical location, as well as real marketplace. The strategic question is how good the CRM software in visualizing the customers value with specific reference to lifetime value of customer in the real geographical location. For that, the current challenge for organizations is to develop an integrated Customer Relationship Management (CRM) platform [2]. This platform enables organizations to collect relevant data about customers from existing customer interfaces. Although firms have access to huge amount of information about their customers like their behavioral actions, they still know little
about how to manage this knowledge and use the best out of it. Therefore, some questions may arise from studies conducted previously, questions like: (a) is it possible to develop new measures for evaluating CRM performance on prospecting customer lifetime value and (b) how good the existing CRM software in visualizing the customers value with specific reference to lifetime value of customer in the real geographical location. Thus, order to bridge the gap and provide organizations with assistance in dealing with current trends and issues of CRM performance on evaluate customer lifetime value (CLV), this paper is proposes a critical content analysis on selected CRM software, discussed current trend on CRM performance, and suggests an idea to strengthening CRM software specifically for visualize CLV as there are exist in marketplace.
Practically, customers are important intangible assets of any firms in the business, and for that, it’s should be measures in long term projections. Although researchers have emphasized customer relationships and CLV, these concepts have had limited impact on the business and investment community for two main reasons: (a) they require extensive data and complex modelling, and (b) researchers have not shown a strong link between customer and firm value as in [3]. These two issues should be considers the location of customers as main stream for analysing the customer relationship and CLV because geographical location is contained customers, firms and overall community related to the business. In addition, CLV valuation approaches, as well as the traditional financial approaches, such as Return on Investment (ROI), Return on Equity (ROE), price-earnings ratio, and many more are fail to modelling and linkages sharply, between relationship and CLV of customers, with the real location of customers. Here, strategic question has arise about what are the other alternatives that potentially to apply between CRM software and CLV model, as a strategic platform for prospecting the precise information on CLV in the marketplace. In addition, it is possibly to mapping the CLV in the real environment of business.
II. OBJECTIVE OF THE STUDY
The objective of this paper is to analyze the capability of selected CRM software, such as NetSuite, Microsoft CRM, eSalesTrack, Salesnet, C2CRM, and Pivotal with specific attention on spatial function for managing the lifetime value of customer in the real geographical marketplace.
III.METHODOLOGY OF THE STUDY
A content analysis approach has been choosing to investigate every types of selected CRM software. Meanwhile, 60 respondents have participated in the study purposely for testing, examine and experienced the trial version of selected CRM software. All of respondents are postgraduate students (Master in Management and Business Administration), where had completed their study on marketing subject. They are given 6 weeks for testing, examine and experienced all the sixth CRM software. After 6 weeks, the respondent will write a report on every each of CRM software. There are freely to write and composed their report which is based on their 4 weeks experiences. The
respondents also advised to explore other resources on Internet especially on CRM topics and this is for strengthening their knowledge and understanding on CRM software and latest issues on it.
IV.RESULTS
In general, the finding shows that CRM software provides advances feature of managing customer value, especially for targeting, segmenting and prospecting customer. Most of the CRM software also provides valuable information to advice the marketers for selecting the best target of customer segment. However, the biggest disadvantage of CRM software, practically, it has no platform for visualizing every single customer in the actual setting of location where agreed by 58 of 60 respondents. In addition, most of CRM software has no ability to visualize customer value as the real they look like, as agreed by 56 respondents. At the end, some suggestion has made for used the geographical information technology (GIT) for strengthening the capability of CRM software in visualizing lifetime value of customer.
The results of the study are describes as below: A. NetSuite
Fundamentally, NetSuite is a CRM software that was be the leading on web-based business management system. NetSuite’s aimed to help growing and midsize businesses run more effectively due to the current situation of business. NetSuite was originally incorporate as NetLedger by its founders Larry Ellison and Evan Golberg, with well know named NetSuite. Principally, NetSuite has ability to deliver as an on-demand service with minimum requirement on hardware, up-front license fee, easily customized (through SuiteFlex platform) and simple procedures to set-ups. One of special about NetSuite's is developed based on a real-time dashboard technology. By standing on this technology, it will provide users with an easy-to-use, real-time view into role-specific business information that is always up-to-date.
NetSuite CRM has provided all the CRM capabilities needed to manage the sales and customer management process, with greater power and ease than other CRM solutions. NetSuite CRM includes the foundations of CRM as such Salesforce Automation, Marketing Automation, and Customer Support and Service. These capabilities are made more powerful with award-winning dashboards, customization and web services through NetFlex, in-system high volume marketing campaigns, advanced forecasting, contact management, and opportunity management. In addition, NetSuite CRM takes all the capabilities found in salesforce.com Enterprise Edition, Siebel CRM OnDemand, and Microsoft CRM, makes them more powerful, and makes product fulfillment, service delivery and accounting ties easier with superior order integration [4].
In addition, NetSuite has utilize real-time dashboards to get instant snapshots of key performance indicators of business, such as new leads, opportunities, sales orders, commissions, support cases and forecasts. However, 56 of 60 respondents agreed there are no specific platform for visualize customer value as appears in the real marketplace. This is because of CRM has lack of geographical visualization tools to do that kind of works. In addition,
although NetSuite has advantages on advantages forecasting, Marketing Automation, Customer Self-Service Portal, Partner/Channel Management, and Customer Service & Support, however, this CRM has no integration platform to joint the operation of CRM with the spatial based platform, as well as GIT.
B. Microsoft CRM
Microsoft based CRM, as identified as Microsoft Dynamics has introduced to the market with aimed for customer relationship management of marketing department. By using this software, hope it can improved in sales, customer satisfaction, and customer service. This is because this software has automated to easy to use, customize, and maintain for a long time used. The software offers a wide spectrum of feature-rich, affordable CRM solutions and specifically relationships among firm-customer. Some of the Microsoft Dynamics of CRM-related solutions are includes Microsoft Dynamics® AX for field service, Microsoft Dynamics® AX for sales and marketing, Microsoft Dynamics® GP for field service, Microsoft Dynamics® NAV for service management, and Microsoft Dynamics® SL for field service. Even, this software has offers Microsoft Office® Outlook 2003 with Business Contact Manager as one of solution to the firms especially to manage their customers. One of major advantages of the software is it solutions and capabilities connect closely to other Microsoft technologies that may already use, as such Microsoft office. Here, this technology is stand on stable platform of Microsoft technology and well known platform.
Basically, Microsoft CRM has some important key features, such as tight integration with the Microsoft Office and Office Outlook platform; fast and easy access to database; and customized workspaces that expanded an ability to create, store, and reuse favorite views of customer data. Moreover, the software has offers great mobile support that enable user to get instant access to customer database from most popular portable devices including mobile phones with Web browsers, and laptops. This will make the software more flexibility and mobility to latest application. However, Microsoft Dynamics is non-spatial based technology which is differs from geographical based technology, as well as Arcview, ArcGIS, and many more. This is coined by 56 respondents.
In fact, Microsoft Dynamics has ability to bring and joint together data and helpful for answer customer questions. The software provided the results of marketing campaigns, from customer research lab to sales and finally to services delivered. However, Microsoft Dynamics has no ability to visualize customer data as geographical form, which is vital important to understand customer value in the real marketplace. Although, this CRM version has specific features, as such as Sales process management, Order management, Sales force management, Email/Direct Marketing, Service management, Marketing campaign management, Email Response Management, Searchable knowledge base, and many more, but sadly the software has no ability to operating into the spatial platform, as well as geographical information platform. This fact is pointed by 55 respondents, and at the same time they believed that CRM needed to improvise it capability.
C. eSalesTrack
Fundamentally, eSalesTrack is an on-demand CRM service produced by Soleran with special designed for standard procedures of customer management, as well as ease of use, quick access to essential information, built-in analysis, mobility, security, and scalability, as similar in [5]. In term of cost, eSalesTrack is scalable and affordable which has automatically scaling according to the size of firm. Some of key features of eSalesTrack are Sales Forecasting, Opportunity Management, Activity Management, Document Storage, Contact Management, Sales Analytics, Sales Process Guide, Partner Tracking, Custom Reporting, Contact Management, and many more. Overall, this software is design for help the sales person to performs their daily works, as well as manage their current and previous customer. However, this software has no attention on developing spatial based tool which is important for analyses customer geographically. This fact is argued by 58 respondents.
This software has advantages on data and analytics are available at affordable rates, and this enabling the comprehensive perspective on customer performance. In addition, some of important solutions are Task Management, Pipeline Visibility, Customization Analytics, Territory Management, Product Management, Product Catalogs, Customizable Dashboards, Lead Routing, Lead Assignment, Calendaring, Account Management, and Quota Management that is affordable to all types of business, including small business. On the one hand, this software has strengths on the principle of CRM function that make it more business friendly to current type of business. On the other hand, this software use collaborative software development tools to provide goals and software specifications that all for manage customer in perfect ways. Currently, this software has no solution related to spatial solution as well as integrated into geographical information software. Thus, it is also non-spatial friendly for capture and analyses customer value geographically. This opinion is summarized from 58 respondents.
In addition, eSalesTrack is an on-demand CRM solution. Based in the United States with an office in Overland Park, Kansas, the company was founded in 1999. As a company that is dedicated to being the leader in CRM solutions their software can can be tailored to any small to medium enterprise company that is looking for a quality CRM solution. In addition, eSalesTrack offers its customers a hosted or web-based CRM solution. This tool offers customer’s sales force automation, marketing automation, campaign management, customer service management, enterprise document management and sales/marketing analytics. This allows the customer to grow their business while successfully putting their customer first. Unlike other CRM suppliers on the market today, eSalesTrack offers its users the right on-demand solution that can meet their businesses needs. eSalesTrack understands that its customers business strategies and practices are constantly changing on daily basic [6]. However, this software is not developing based on spatial requirements where it is important to visualized customer lifetime value.
D. Salesnet
Founded in 1999, Salesnet is a pioneer in customer relationship management software, offering CRM that drives sales effectiveness and gives companies true pipeline visibility. This software is providers of on demand customer relationship management (CRM) solutions that help consumer-centric organizations deliver great customer experiences, as well as customer value. In fact, Salesnet has some basic features, as well as affordable, browser-based design, and has offers the effective and flexibility reserved for CUSTOM CRM solutions, with the ease of use and implementation typically associated with contact managers. Practically, salesnet is software that meets some characteristics of customer value analysis. In addition, there are three (3) major capabilities of Salesnet, includes Intelligent Pipeline Management, which is the built-in capability functionally to view real-time information on pipeline opportunities. It has plays major function on review related sales activities and then, to distinguish how this information is changing over time. However, this solution still has no related to spatial data solution, as offers by geographical information technology. Secondly, Salesnet offers an easy-to-use customization tool that allows to configuring Salesnet in easy way to your unique processes and for this, Salesnet is the best software to implementing a process related to customer activities. Thirdly, Salesnet functionality automates many tasks that sales reps do on a daily basis to keep track of what’s happening with the current accounts, so that this will decreasing time managing the data computably and increasing time for manager customer value. However, this software has limited capability in plays function on analyzed customer geographically. Event, this software is not geographical friendly with less attention on visualization of customer value, includes customer analysis, demographic profiling, customer segmentation, and many more. This information is pointed by 58 respondents.
Salesnet tackles enterprise CRM with a solution built on Microsoft's .NET framework. It installs as an application on off-line users' hard drives and stores data in a secure SQL database. It places no limitations on the number of records used off-line. Performance does not degrade as you add records, and its password-protected database offers superior security. In addition, Salesnet's impressive scalability, outstanding off-line security, and host of customizable features make it a good choice for large organizations with IT staffs to configure its many options and enforce corporate IT policies. In its default mode, however, a bit too much is left to the individual user's discretion to make it ideal for small businesses whose sales teams require ready-to-go functionality [7]. In addition, this software is not ability to use for visualised customer lifetime value geographically, as pointed by 59 respondents.
E. C2CRM
C2CRM is offers the power and flexibility reserved for custom CRM solutions, with the ease of use and implementation typically associated with sales managers. The C2CRM is built in simple design and it's beneficially to help the hypermarket to improve productivity, increase sales and boost their bottom line. C2CRM streamlines all the sales
process by providing real-time information on leads, prospects and customers. It improves marketing efforts by tracking which marketing initiatives work. It streamlines the customer service by providing comprehensive customer information and the sales manager can efficiently decides which part of customer segment should be improves on satisfaction and loyalty.
Some of C2CRM main features are Relationship Management & Tracking, Mail and Calendar, Sales Force Automation & Management, Enterprise Resource Analytics, Activity Management, Workflow Management, Opportunities & Forecasting system, Workflow Management, Open Data Store, Contact Management, ERP Connector Cartridges, Customer Service & Support, Analytics & Knowledge Management, Performance Management, Marketing Management, and Project Management. Beside that, currently, the business must become customer centric to survive in today's volatile business environment and products and services should address the needs of the customer, accurately. In fact, C2CRM can establish a customer-focused competitor poised to meet challenging market needs; however, this software has no ability to analyses any sales data in spatial platform. Because of that, C2CRM need to upgrade it application for make it more effective to latest trend of customer management on the real marketplace. However, C2CRM less accurate for used in predicting customer buying behaviour because it cannot functionally in geographical point of view. This opinion is shared by 56 respondents.
C2CRM is sold as a software and hardware solution on quality IBM equipment and offered in special solutions packages which include modules designed to solve specific business problems. This software addresses specific business issues individually and expands the system as needed by users. In fact, flexibility is the key to a successful CRM approach because this software allows implementing CRM solution in accurate stages of needs. In addition, this software has advantages in getting real-time data such as sales opportunities, marketing efficiency, customer retention and much more, as well as called enterprise-wide information. However, software it self cannot link directly into the marketplace, as well as a place of customers acting. As alternative, geographical information technology should be integrated into certain function of CRM solution to get better solution on real-time matter. This is coined by 57 respondents.
F. Pivotal
Fundamentally, Pivotal CRM 6.0 has built on the innovative Microsoft .NET platform, which are introduces a new Smart Client by that combines the best of client architectures. Its use of Microsoft's based deployment technology makes it easy to implement and update efficiently. But most importantly, it offers sophistication features as an intuitive interface, deep integration with the Microsoft tools, and the ability to tailor and personalize the solution to match unique business processes and individual user needs. Practically, Pivotal CRM is a task-based navigation with easy features to beeline straight for the features that are relevant to customer management tasks. Pivotal CRM 6.0 normally comes pre-integrated with well
known tools as well as Microsoft Outlook, Microsoft SharePoint, and the Microsoft Office suite. These integration has allows users to move seamlessly between systems, and then, eliminating cumbersome application switching that leads to increasing productivity.
Pivotal CRM is flexibility which is designed to give end users the ultimate flexibility o their daily works. For example, users can configure their dashboard to show the information that is most relevant to them, as well as customer contacts, routine, tasks, schedule items, and more. Specifically, the flexible Microsoft SharePoint Web Parts structure allows a virtually limitless variety of components to be integrated into the user dashboard, including third-party applications and data feeds. This makes Pivotal CRM as primary destination for all the information that needed by the business. However, Pivotal CRM has no relation with spatial platform, as well as geographical information technology. In addition, data of Pivotal CRM is not able to integrate with any spatial data of geo databases as a major contain of geographical information technology. This opinion is shared by 58 respondents.
Pivotal CRM has some major solution as well as CRM Analytics, Mobile CRM Solutions, Pivotal Features, Marketing Automation, Sales Force Automation, CRM Partner Management, and Service Automation. With generic features on SecureWorks this software has ability on sustaining growth of any kind of economic climate with focus on customer’s management. For example, this software has been used for tracking the growth of New Orleans firm after the tragedy of Hurricane Katrina. However, it is better to Pivotal CRM to have similar solution as used by spatial based software because it was so helpful for visualize any data in geographically point of view. This idea is pointed by 58 respondents.
V. DISCUSSIONS AND SUGGESTIONS
Currently, Forrester Research has evaluated 18 leading customer relationship management (CRM) suite solutions against 516 criteria reflecting the requirements of large organizations. They found that heavyweight Leaders Oracle Siebel and SAP still offer the most complete solutions, with better usability and improved total cost of ownership (TCO) to persuade customers to upgrade. Other vendors in the Leader category, such as CDC Software, Microsoft, Oracle CRM on Demand, RightNow Technologies, and salesforce.com are gaining ground with flexible, quick-to-implement solutions. The Leaders are challenged by a pack of Strong Performers. Oracle E-Business Suite (EBS) CRM and Oracle PeopleSoft Enterprise CRM remain good options for enterprise resource planning (ERP) customers. Chordiant Software, Pegasystems, and Sword Ciboodle offer business process management (BPM) strengths to orchestrate complex customerfacing processes. Maximizer Software, NetSuite, SageCRM, Sage SalesLogix, and SugarCRM offer sound solutions but are best suited for midsized organizations. FrontRange Solutions, a Contender vendor, offers a solution to meet basic needs as in [8]. However, there are no one of the software has capability on geographical information platform which is vital for manage customer value geographically.
In addition, one of important point on current trend on CRM that should take into account of business is customer service embraces real-time methods. There are a rising number of inquiries from companies about how to improve their customer service capabilities. In 2010, contact center customer support needs to evolve to better serve customers who no longer rely on one venue for receiving information but instead engage multiple sources. In addition to checking a company’s Web site and its brochures, many customers research information on products and services from social networking sources such as blogs and online user ratings. With customers now requiring more real-time support, it’s essential to keep pace with their expectations and to respond to them in new ways as in [8].
Here, suggestion has made for used the geographical information technology (GIT) for strengthening the capability of CRM software in visualizing lifetime value of customer. According to marketing traditional paradigm, some of reasons why product fail to meet the demand is because of product it self with unrecognized brand, bad features, and product characteristics and not link with the customer value in the marketplace. Specifically, unable to recognize the pattern of customer values also brings other problems to marketers in identified their potential and current based customers. In addition, failure in analyze the real customers needs toward the product in the spatial environment especially for get more visualization and imagination of what, why, when, who, and how it be happened, would be affecting the future of retailers profitable. Spatial environment should be used as platform for analysis because it is the best ways on understanding the customer value, market competition, and barriers of entry to the markets, customer niches, and many more. Researcher as in [9] argued that the existing of product or new product in the retailing industry supposes will creating new competition among retailers. Thus, with more demanding customers and increasing global competition, companies struggle to introduce products to market more quickly while countering low new-product success rates. According to recent research, almost nine out of every 10 new products don't survive or rejected from the market. Some fail to meet revenue expectations and maybe others don't meet as much share as their retailers targeted. Although some still more meet revenue expectations and capture market share, but finally, it cannot generates satisfied profit to retailers and thus unsustainable condition occurs. Companies with the ability to capture, integrate and leverage every piece of information pertaining to their products are more likely to see those products succeed in the marketplace. Here, retailers should employ another research tools than more advances in analyzing the market condition and one of the available tools is GIT. As in ( [10], [11], [12], [13] ) GIT are be able to apply in customers based analysis which using geographical as a platform to performance the in-depth analyses, such as customer profile, customer value, market value, and many more. Moreover, GIT is permits the retailer to performance more deep analysis on product failure because of GIT are be able to capture, integrate and leverage every form of information regarding new product in the marketplace [9].
In the recent years, the application of GIT in business has grown rapidly. Major retailers, automobile dealerships,
video rental companies, media organisations, and fast food corporations are just some of the many businesses around the world that have discovered the value of GIT. Thus, business strategists are finding GIT to be an ideal tool for identifying and expanding markets, and increasing profits [14]. More over, in high platform business operation, GIT are become more sophisticated to invest especially to small and medium sized business, because of it initial costs can be highly compared to estimates ones. Also, the tangible benefits of it capabilities can take several years to materialize in the real situations. In the one hand, the emerging of GIT software in the marketplaces actually create more competitions among software vendors, and will motivate them to make better improvement in tools and application related to GIT software. In the other hand, retailing will get the benefits in capturing and mapping their customer values, market segmentation, and any changes in the marketplaces. In the end, the retailers are be able to maximize the GIT tools in prospecting their potential customers that will contributes highly value to their profitable or annual performances. GIT software notes as important software that can be apply to performance business based analysis, such as site and location, business continuity plan, facilities and equipments, retail trade area, and so on ( [15], [16] ).
Currently, which up to now have had minor spatial aspects, spatial data are become more critical issues. In the ERP for one large business, for examples, data shows that over 98 percent of analysis is non-spatial and only 2 percent is spatial. Hence, proportion of the non-spatial uses must be considered in recognizing the perceived importance of spatial data and the priorities given by managers and other stakeholders in utilizing it, as in [1 ]. In contrast, there more than 80 per cent of all information in an organisation can be geographically referenced [14] and that information has a spatial reference if it can be tied to a map [16]. Comparing the facts as in ( [11], [14], and [16] ), actually these will effecting the projected value of customers because projected CLV is based on data in organization, while conversely spatial CLV is derive from spatial based. Thus, highly different of data sources in organization, will derive highly potential to create the big gaps between expected CLV and spatial CLV. In this case, domination of non-spatial data finally will contribute to un-balances results because of the results of CLV are tendencies skewed toward non-spatial bases. Surely, this is one of reasons why the significant different occurs between projected CLV and spatial CLV.
VI.CONCLUSIONS
The retail marketing is one of the most promising fields of GIT application. In general, retail marketing is a question of demand (consumers) and supply (shops or shopping centers). Both aspects are easy to pinpoint to a geographic location and are therefore, it is interesting for performances any kind
of spatial based data analysis using GIT tools. In the early phase of emerging GIT in business field, the use of GIT in retail marketing, mostly, was limited to mapping the results of marketing research. Nowadays, because of hardly change in GIT technology, the mapping activity are become as basic requirement for retail marketing, and consequently, more and more analytical operations are performed within a GIT environment. Some practices are for analyses of catchment areas, retail sites, and competitor wars. Actually, for most of these operations, new tools had to be implemented within existing GIT software and moreover, requirement for more powerful tools is arise in retail marketing segments.
ACKNOWLEDGMENT
We would like to thanks Universiti Sains Malaysia for funding this research project through the USM-RU-PGRS Research Grant.
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