CUSTOMER MANAGEMENT

Customer Management



Customer Management

We have been asked to develop a three year strategic Customer Relationship Management plan for Parcelforce Worldwide outlining the key areas that need to be considered in the next board of directors. The plan will focus on a Customer Relationship Management programme that will create higher quality customer service levels across the organisation.

Vision, Mission and Corporate Objectives

Vision - “To be the UK's most trusted worldwide express carrier”.

Mission - The mission of Parcelforce Worldwide is, “to improve continually our service as a delivery sector to meet our customer's needs, allowing us to prosper as a business”.

Corporate Objectives - The corporate objectives of Parcelforce Worldwide are:

To reduce carbon emissions•To be number one in delivering the best customer service to their customers

To be the fastest and most reliable delivery service in the industry

Macroeconomic Environment

Political environment: The government policy on inflation has increased fuel prices, these represent additional costs which Parcelforce who are already working in an extremely competitive environment have been unable to pass on in full to their customers. The other government policy affecting Parcelforce is the threat of congestion charging which gives Parcelforce considerable cause for concern because it brings about more costs to the company.

Customer lifetime value has intuitive appeal as a marketing concept, because in theory it represents exactly how much each customer is worth in monetary terms, and therefore exactly how much a marketing department should be willing to spend to acquire each customer. In reality, it is difficult to make accurate calculations of customer lifetime value due to the The specific calculation depends on the nature of the customer relationship. Customer relationships are often divided into two categories.

Fig.1 Customer Management

In contractual or retention situations, customers who do not renew are considered "lost for good". Magazine subscriptions and car insurance are examples of customer retention situations. The other category is referred to as customer migrations situations. In customer migration situations, a customer who does not buy (in a given period or from a given catalog) is still considered a customer of the firm because she may very well buy at some point in the future. In customer retention situations, the firm knows when the relationship is over.

The UK is currently facing slowing economic growth, falling house prices, rising inflation and increasing unemployment. The impact of this combination of factors is affecting all sectors of the UK economy including Parcelforce and it is possible that spending growth will weaken further as house prices keep falling; inflation and unemployment continue to rise. The population of the UK is steadily rising and is projected to be approaching sixty-one million. A rising population increases demand for many types of goods and services therefore it is likely that Parcelforce will benefit from this increase. The rise in inflation in the UK has led to suppliers of Parcelforce rising petrol and diesel prices significantly therefore to meet these higher costs extra fuel prices have been introduced which is a disadvantage for ...