INDEX Executive Summary:................................................... 2 Introduction:........................................................ 3 Objective of the Study:.............................................. 6 Scope of the Study:.................................................. 7 Research Methodology:................................................ 8 Limitations of the Study:............................................ 9 CRM and E-CRM implementation:.......................................10 Major Findings:..................................................... 14 Conclusion:......................................................... 15 Recommendations:.................................................... 16 Bibliography:....................................................... 17
Objective of the Study:................................................................................................................................6
Scope of the Study:......................................................................................................................................7
Research Methodology:..............................................................................................................................8
Limitations of the Study:.............................................................................................................................9
CRM and E-CRM implementation:.............................................................................................................10
Major Findings:..........................................................................................................................................14
The report studies the comparison between the Customer Relationship Management (CRM) strategies performed by LG and Samsung with respect mainly to the Indian market and Indian Scenario. However, both the companies are big giants so they practice CRM strategies for entire world. The report clearly shows how CRM is being practiced by the companies and how e-CRM has taken over the simple CRM. Today, without technology no company can survive and so is the case with LG and Samsung. The report studies the major findings and recommendations also.
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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.
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
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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 LG:
LG Electronics is the world's second-largest manufacturer of TV sets and third-largest producer of mobile phones.
With its headquarters in the LG Twin Towers in Yeouido, Seoul, South Korea, LG Electronics is the flagship company of LG Group, one of the world's largest electronic conglomerates.
The company has 75 subsidiaries worldwide that design and manufacture televisions, home appliances, and telecommunications devices. LG Electronics owns Zenith Electronics and controls 37.91 percent of LG Display.
The company was originally established in 1958 as GoldStar, producing radios, TVs, refrigerators, washing machines, and air conditioners. The LG Group was a merger of two Korean companies, Lucky and GoldStar, from which the abbreviation of LG was derived. The current "Life's Good" slogan is a backronym. Before the corporate name change to LG, household products were sold under the brand name of Lucky, while electronic products were sold under the brand name of GoldStar . In January 2009 LG was able to buy the domain name, LG.com, placing it among the companies who own their two letter brand's domain name.
In 1994 GoldStar gained sponsorship from The 3DO Company to make the first 3DO Interactive Multiplayer. In 1995, GoldStar was renamed LG Electronics, and acquired Zenith Electronics of the United States. LG Solar Energy is a subsidiary formed in 2007 to allow LG Chem to supply polysilicon to LG Electronics for production of solar cells. In 2008, LG took its first dive into the
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solar-panel manufacturing pool, as it announced a preliminary deal to form a joint venture with Conergy. Under the deal, set to be completed by year's end, LG would acquire a 75 percent stake in Conergy's Frankfurt solar-panel plant. LG has produced camcorders called ARTCAM and DSLRs.
About Samsung:
The Samsung Group is a multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea. It is the world's largest conglomerate by revenue with an annual revenue of US $173.4 billion in 2008 and is South Korea's largest chaebol.
The Samsung Group is composed of numerous international affiliated businesses, most of them united under the Samsung brand including Samsung Electronics, the world's largest electronics company, Samsung Heavy Industries, the world's second largest shipbuilder and Samsung C&T, a major global construction company and Samsung Life Insurance, the largest insurance company in Korea.
Samsung has been the world's most popular consumer electronics brand since 2005 and is the best known South Korean brand in the world. Samsung Group accounts for more than 20% of South Korea's total exports and is the leader in many domestic industries, such as the financial, chemical, retail and entertainment industries. The company's strong influence in South Korea is visible throughout the nation, which has been referred to as the "Republic of Samsung".
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Objective of the Study:
To know how CRM can help to retain and attract new customers in a better way
To know how different companies compete on the basis of CRM and E-CRM
To know about the latest trends prevailing in CRM and E-CRM
To innovate new ideas for better CRM
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Scope of the Study:
The study only covers 2 companies here so the scope is limited to consumer durables and other electronic 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 LG and Samsung are big players of the market and so they follow a good CRM strategy.
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Research Methodology:
Primary Data:
Personal Interview
By getting services of both companies
Sample Area: Lucknow, Uttar Pradesh, India
Secondary Data:
Internet
Journals
Magazines
Newspapers
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Limitations of the Study:
Subjective nature of the study may affect its interpretation by different individuals.
Regional differences, area differences may change the scope of study also
At different places, different implementation of applied CRM can be seen.
The information given over Internet and other sources may be different from practical experiences of the customers.
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CRM and E-CRM implementation:
By LG:
1. LG has given a toll-free number
2. Online support is mentioned on the website
3. Generally repair agents come to home and repair the device.
4. A club is for the customers of LG
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By Samsung:
1. Generally one has to visit Samsung service center to get a device repaired
2. Samsung has a toll free number on which one can call
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Differences:
LG Samsung
1) LG support team comes to house to repair the device
1) Samsung support team may or may not come to house for repairing the device.
2) LG has a club for its customers 2) Samsung has no such club for the customers
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Similarities:
1) Both offer online support
2) Both offer customer service by a toll-free number
3) Both offer downloads from site for various information and mobile stuff
4) Both have enlisted the service location all across the globe.
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Major Findings:
LG offers much better service than Samsung
LG has a great brand value than any other brand
Samsung is trying to take up more CRM initiatives
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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. LG and Samsung are also thinking of ways how CRM and E-CRM can be implemented in a better manner.
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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.
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Bibliography:
Customer relationship management: concepts and technologies By Francis Buttle
http://www.lg.com/in/index.jsp
http://www.samsung.com/in/
Customer relationship management: organizational and technological perspectives By Federico Rajola
