PARKnSHOP is a large chain supermarket. It implements MoneyBack scheme in recent year, which is one of the application of Electronic Customer Relationship Management (e-CRM).
In this report, we will try to find out the benefits and drawbacks of e-CRM in different aspects, and conclude the contributions of e-CRM to PARKnSHOP in order to decide whether it should be abandoned.Background of PARKnSHOPIn 1973, PARKnSHOP became a company under Hutchinson Whampoa and a member of the A.S. Watson Group (ASW). In that same year, PARKnSHOP opened its first shop.
Today, PARKnSHOP has become one of the largest supermarkets chains and currently has over 200 branches in Hong Kong.The current three leading supermarkets in the Hong Kong area are: PARKnSHOP, Wellcome, and CRC. Among these three, PARKnSHOP is involved in many different research and development projects. For example, some of the different programs or new ventures that PARKnSHOP has implemented may include: opening its first "Megastore" in Metro City, Tseung Kwan O which sells products and merchandise that is not usually found in the other local markets. Other research ventures have resulted in establishing a food-safety laboratory and the construction of Asia's first multi-temperature distribution and processing center. With new technology on the horizon, introducing these new programs into their business will help facilitate the smooth flow of PARKnSHOP's operations.
Electronic Customer Relationship Management ( e-CRM )Customer Relationship Management (CRM) is the methodology and tools that manage the relationships with a company's customers. Generally speaking, it is a method of using a database to record all the data of the customers in order to realize their needs and provide services which are custom tailored to them.The objective of CRM is to increase sales by improving customer service, enhancing customer satisfaction and securing customer loyalty. To maximize customer satisfaction, an effective way is to provide tailor-made services to them. These tailor-made services have to be supported by adequate information of these customers - therefore, mastering Customer Relationship Management can be the key to running a business successfully.Application of e-CRM by PARKnSHOPPARKnSHOP applies the e-CRM mainly through two medias: The Online Purchasing System and MoneyBack Rewards Card.
* Online Purchasing SystemCustomers can directly access PARKnSHOP's official website through the following address: Hwww.parknshop.comH. On this website, you can obtain the latest news and prices in the PARKnSHOP, background information about PARKnSHOP, and contact information, etc. The major function of the website is to let customers access the online purchasing system to purchase the products they need.
To enter the online purchasing system, first, customer need to create an account on the website. There are two types of users that can be selected: individual and corporate. After selecting the type of user, you need to fill in a number of personal information including name, gender, mobile phone number, marital status, nationality and MoneyBack card number (optional). Here is the registering page:After having an account, you can login to the website and follow the instructions to buy what you want. The orders will usually be delivered within 7 days from the date of purchase.
The online purchase system is regarded as an application of customer relationship management (CRM) because it can help PARKnSHOP manage customer relationships in an organized way. It also helps getting customer information and purchasing records. Using the data that PARKnSHOP obtains, it can analyze the data, and find out a specific customer's purchasing pattern. It is useful in setting a strategy on their retailing business and maintaining the relationship with its customers.
* MoneyBack Rewards CardThe MoneyBack Rewards Card is another application of e-CRM. To become a member of the MoneyBack program, you will need to complete a registration form and provide certain personal data. Similar with the online purchasing system, you need to fill in a good amount of personal information in the application form including gender, nationality, family status, number of children, monthly household income, interests, education level, occupation, etc. If the application is accepted, you will receive one principal card plus three supplemental cards (also called baby cards or mini cards).After becoming a member of the MoneyBack scheme, one point will be issued for every $5 purchase. E.
g. if your purchase amount is $26.5, then you will be issued five points in your MoneyBack card. Every time you earn 500 points you can redeem one $10 cash voucher. You can claim the cash vouchers at the MoneyBack Member Privilege Kiosk and use them immediately at the checkout.
The MoneyBack Member Privilege Kiosk is located in the retail outlets for facilitating the program. It is not only used to issue the cash vouchers, but it also generates the Personalized Shopping List when customers scan their MoneyBack cards on the way in. The Personalized Shopping List is based on your own personal profile and previous shopping history to provide you with special offers for some designated items. The special offers are tailor-made for each specific customer.Like the online purchasing system, the MoneyBack card records customer purchasing activities.
PARKnSHOP can use this information in order to implement a more successful e-CRM strategy in the future.