Table of Contents Executive Summary: ................................................................................................................................ 2 Introduction: ........................................................................................................................................... 2 Objective of the Study: ............................................................................................................................ 4 Scope of the Study: ................................................................................................................................. 5 Research Methodology:........................................................................................................................... 5 Limitations of the Study: .......................................................................................................................... 6 CRM Implementation: ............................................................................................................................. 6 Comparative Analysis of Nokia and Sony Ericsson’s CRM: ...................................................................... 11 Major Findings: ..................................................................................................................................... 11 Conclusion:............................................................................................................................................ 12 Recommendations: ............................................................................................................................... 12 Bibliography: ......................................................................................................................................... 12
Transcript
Table of Contents Executive Summary: ................................................................................................................................ 2
Objective of the Study: ............................................................................................................................ 4
Scope of the Study: ................................................................................................................................. 5
Research Methodology: ........................................................................................................................... 5
Limitations of the Study: .......................................................................................................................... 6
Comparative Analysis of Nokia and Sony Ericsson’s CRM: ...................................................................... 11
Major Findings: ..................................................................................................................................... 11
Nokia vs Sony Ericsson – Customer Relationship Management CRM
PRAVAH SHUKLA @ IISE 2 | P a g e
Executive Summary:
The report studies about Customer Relationship Management(CRM) and Electronic-Customer Relationship Management(E-CRM) with respect to two companies – Nokia and Sony Ericsson in India mainly Lucknow, Uttar Pradesh. Both the companies are producers of mobile phones. The report highlights what are methods both use to build up CRM and throws a light on the comparative study of both the companies with reference to the methods and technologies adopted.
Introduction:
About CRM:
Customer relationship management is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Once simply a label for a category of software tools, today, it generally denotes a company-wide business strategy embracing all client-facing departments and even beyond. When an implementation is effective, people, processes, and technology work in synergy to increase profitability, and reduce operational costs.
About E-CRM:
eCRM Electronic CRM concerns all forms of managing relationships with customers making use of Information Technology (IT).
As the internet is becoming more and more important in business life, many companies consider it as an opportunity to reduce customer-service costs, tighten customer relationships and most important, further personalize marketing messages and enable mass customization. Together with the creation of Sales Force Automation (SFA), where electronic methods were used to gather data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of what we know as eCRM today. We can define eCRM as activities to manage customer relationships by using the Internet, web browsers or other electronic touch points. The challenge hereby is to offer communication and information on the right topic, in the right amount, and at the right time that fits the customer’s specific needs.
Nokia vs Sony Ericsson – Customer Relationship Management CRM
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Channels through which companies can communicate with its customers, are growing by the day, and as a result, getting their time and attention has turned into a major challenge. One of the reasons eCRM is so popular nowadays is that digital channels can create unique and positive experiences – not just transactions – for customers. An extreme, but ever growing in popularity, example of the creation of experiences in order to establish customer service is the use of Virtual Worlds, such as Second Life. Through this so-called vCRM, companies are able to create synergies between virtual and physical channels and reaching a very wide consumer base. However, given the newness of the technology, most companies are still struggling to identify effective entries in Virtual Worlds. Its highly interactive character, which allows companies to respond directly to any customer’s requests or problems, is another feature of eCRM that helps companies establish and sustain long-term customer relationships.
Furthermore, Information Technology has helped companies to even further differentiate between customers and address a personal message or service. Some examples of tools used in eCRM:
Personalized Web Pages where customers are recognized and their preferences are shown.
Customized products or services (Dell).
CRM programs should be directed towards customer value that competitors cannot match. However, in a world where almost every company is connected to the Internet, eCRM has become a requirement for survival, not just a competitive advantage.
About Nokia:
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki. Nokia is engaged in the manufacturing of mobile devices and in converging Internet and communications industries, with over 123,000 employees in 120 countries, sales in more than 150 countries and global annual revenue of EUR 41 billion and operating profit of €1.2 billion as of 2009. It is the world's largest manufacturer of mobile telephones: its global device market share was about 33% in Q1 2010, up from 32% in Q1 2009 and down from 35% in Q4 2009 (beginning in 2010 Nokia revised its definition of the industry mobile device market that it use to estimate industry volumes). Nokia's converged device market share was about 41% in Q1, up from 40% in Q4 2009. Nokia produces mobile devices for every major market segment and protocol, including GSM, CDMA, and W-CDMA (UMTS). Nokia offers Internet services such as applications, games, music, maps, media
Nokia vs Sony Ericsson – Customer Relationship Management CRM
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and messaging through its Ovi platform. Nokia's subsidiary Nokia Siemens Networks produces telecommunications network equipment, solutions and services. Nokia is also engaged in providing free digital map information and navigation services through its wholly-owned subsidiary Navteq.
About Sony Ericsson:
Sony Ericsson is a joint venture established on October 1, 2001 by the Japanese consumer electronics company Sony Corporation and the Swedish telecommunications company Ericsson to make mobile phones. The stated reason for this venture is to combine Sony's consumer electronics expertise with Ericsson's technological leadership in the communications sector. Both companies have stopped making their own mobile phones.
The company's global management is based in Hammersmith in London, United Kingdom, and it has research & development teams in Sweden, Japan, China, Germany, the United States, India and the United Kingdom. By 2009, it was the fourth-largest mobile phone manufacturer in the world after Nokia, Samsung and LG. The sales of products largely increased due to the launch of the adaptation of Sony's popular Walkman and Cyber-shot series.
Objective of the Study:
To know about the latest trends prevailing in CRM and E-CRM
To know how different companies compete on the basis of CRM and E-CRM
To innovate new ideas for better CRM
To know how CRM can help to retain and attract new customers in a better way
Nokia vs Sony Ericsson – Customer Relationship Management CRM
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Scope of the Study:
The study only covers 2 mobile companies here so the scope is limited to mobile manufacturing industry only. However, the way they exercise CRM may be very similar to other type of industries
Only 2 companies are taken into consideration. May be some other companies are following some different methods. But scope is covering mobile industries because Nokia and Sony Ericsson are big market players.
Research Methodology:
Primary Data:
Personal Interview
By getting repaired a mobile
Sample Area: Lucknow, Uttar Pradesh, India
Secondary Data:
Internet
Journals
Magazines
Newspapers
Nokia vs Sony Ericsson – Customer Relationship Management CRM
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Limitations of the Study:
The information given over Internet and other sources may be different from practical experiences of the customers.
At different places, different implementation of applied CRM can be seen.
Subjective nature of the study may affect its interpretation by different individuals.
Regional differences, area differences may change the scope of study also
CRM Implementation:
By Nokia:
Nokia has several Nokia Care Centers at different locations
Nokia gives full software support. One can download required software from the website
Total Online Support is given by Nokia
Nokia clearly gives information about store on the website
Nokia has given importance to career and services
Website shown using the following screen:
Nokia vs Sony Ericsson – Customer Relationship Management CRM
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Nokia vs Sony Ericsson – Customer Relationship Management CRM
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By Sony Ericsson:
It has also service centers all over the world but it is more technology oriented
It has developed a community of developers.
‘Play Now’ option is present to attract the customer
Nokia vs Sony Ericsson – Customer Relationship Management CRM
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Nokia vs Sony Ericsson – Customer Relationship Management CRM
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Nokia vs Sony Ericsson – Customer Relationship Management CRM
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Comparative Analysis of Nokia and Sony Ericsson’s CRM:
Nokia Sony Ericsson
1)
With respect to many countries the websites are totally customized for the particular customer
1) Less customized interface for different countries. A common site for all.
2) Online Support as well as offline support to Indian people because Nokia is carried by many people.
2) Sony Ericsson being new and technology oriented gives more importance to online problem solving techniques of different customers
3) Nokia purely emphasis on mobile and developing its CRM with customers
3) Sony has a diversification so adopting its methods from other websites of Sony
4)
Nokia ranges from very low price to very high price so it implements CRM for a common person
4)
Sony Ericsson mobile are for middle and upper class people who love music and sound quality. So little higher level of CRM is maintained which is technology oriented.
Similarities:
Both have a link to social networking sites Facebook, Twitter etc. so that fans can follow them there and ask questions, give suggestions and comment.
Both use Flash pages a lot to attract the customer to use the online services and better look over the information present on internet
Both have good number of service centers
Major Findings:
CRM is very important to attract new customers and to retain its old customers.
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Today, all companies follow CRM strategies along with the use of E-CRM
Today, technology has given a huge support to CRM in form of E-CRM
Conclusion:
CRM and E-CRM is a very important subject to study and implement. Today, CRM and E-CRM has evolved totally as a new subject due to its increased importance. Nokia and Sony Ericsson are also thinking of ways how CRM and E-CRM can be implemented in a better manner.
Recommendations:
Companies must try to build CRM strategies for every type of customer. For example, if a customer is not having a IT background then he may not use websites and forums to solve the problem. So, many methods should be present to solve the actual problem otherwise customer may shift to another brand
CRM should be attached with marketing which the customer can see or feel while buying the product. If customer will know that the company has best policies and framework then the customer will get attracted towards the brand.
Bibliography:
Customer relationship management: concepts and technologies By Francis Buttle
Customer relationship management: organizational and technological perspectives By Federico Rajola
