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Critical success factors of CRM execution within a subsidiary from luxury brand: a case study at a Benelux subsidiary

Westrik, Renate A.M. (2012) Critical success factors of CRM execution within a subsidiary from luxury brand: a case study at a Benelux subsidiary.

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Abstract:	This report is the result of my master assignment about CRM execution within a luxury brand’s subsidiary. The study is carried out at a Benelux subsidiary of an international luxury brand. The objective of the study is to discover critical success factors for CRM execution in a luxury brand’s subsidiary as this topic is not yet studied in literature. The luxury market differs from the mainstream market on some aspects; customers are lofty, boutiques are the main customer touch points and the price of products is irrelevant. However, it is expected that the same CSFs are applicable to this industry. This topic is studied by means of participant observation, semi-structured interviews and secondary data. Literature review showed success factors in five categories; 1) strategic management, 2) organizational design, 3) employee skills, 4) employee attitude and 5) implementation related factors. Most of the CSFs found in literature are found as CSFs for this luxury brand’s regional office as well, although there are some additions and specifications. Overarching CRM strategy, market orientation, CRM objectives, performance measures, incentive plan, customer segmentation and targeting, organization-wide approach, boutique as main customer touch points, initial focus on everyday customers are found as strategic management factors. Discovered organizational design factors are customer-oriented structure, culture and philosophy, internal customer-oriented processes, customer-oriented processes in direct interaction with the customer, close cross-functional cooperation, correct customer knowledge, reliable information technology and technological alignment. Regarding employee skills operational and management CRM capabilities and CRM training are found. Management attitude, operational employee attitude and employee alignment are found as CSFs in the employee attitude category. For the implementation related factors organizational alignment, alignment with key stakeholder groups, customer systems integration, project champion and gradual development are identified as CSFs. All these factors are influenced by local level differences. Every subsidiary should find its way execute CRM within the guidelines of headquarters These CSFs are identified based on themes and issues at occurred at the Benelux subsidiary. Discovered CRM issues at the subsidiary for recommendations to improve CRM execution. On strategic management level the subsidiary is advised to discuss the translation of communication materials and local specification of campaign results with headquarters. Improvements are expected if the goals are clear to everyone and when there is incentive plan. Related to organizational design the following advises are given; structured guiding of sales associates in their working processes, frequent and structured follow up of the incentive plan, III finding a way to control the after sales department and frequent cooperation on local level and on headquarters level. It is also good to search for database problems actively and to align the database to local requirements. Improvements in employee capabilities can be gained by means of an individual training plan. Also recommended is the creation of conditions that support commitment and motivation to improve employee attitudes, for example management commitment, structural incentive plan and knowing local CRM results. The final recommendation is to spend time on local CRM themes and issues in a structured way next to the necessary CRM tasks to satisfy headquarters.
Item Type:	Essay (Master)
Clients:	Benelux subsidiary
Faculty:	BMS: Behavioural, Management and Social Sciences
Subject:	85 business administration, organizational science
Programme:	Business Administration MSc (60644)
Link to this item:	https://purl.utwente.nl/essays/61471
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