CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management

Customer Relationship Management

Introduction

CRM play an integral role in the success of any company. The company that has been analyszed in this research paper is VOB BMW. VOB BMW is an authorized car dealer for the BMW in US. VOB BMW is an integrated car dealer that provides sales services for new BMW cars selling, sell a certified pre-owned BMW, scheduled maintenance services for the BMW cars, and repair or body work on an existing Ultimate Driving Machine (BMW). VOB is dedicated to maintaining the pledge that value is their Business. VOB BMW serve the cities of Rockville, Bethesda, Chevy Chase, Potomac, Gaithersburg, Frederick, Tysons Corner, Alexandria, Arlington and all of the Maryland, Washington, DC and Northern Virginia region.

Objectives of the Company

VOB BMW serve a unique objective that ultimately serve the profit maximization goal of the company. Main objective of the company is as follows.

“To provide valuable services to the customers for the Ultimate Driving Machines. Our aim is to set us apart from usual motor car dealers by offering services, conditions and prices which are not normally available to the retail/private purchaser of new or used motor vehicles”.

Company's Strategies

From the perspective of valuable dealer of BMW, VOB BMW concern towards the competitive pressure is increasing despite their privileged (contractual) relationship with the auto manufacturer, and their established role is threatened. Porter's five forces model is used as a heuristic to identify and position potential competitors.

VOB BMW plans to increase selling capacity over the next years and expand their markets abroad. Return-on-investments in real terms dropped sharply in the last years for car dealers. Increasingly, the car manufacturers earn better profits from financing car sales or leases than from the sales of cars. VOB BMW, though contractually bound to their sales organization, are scrutinizing the opportunities of Web-enabled sales activities.

CRM issue and VOB BMW Strategy

CRM strategy need to be aligned to the organisation's mission and purpose in order to harness the power of CRM for bringing sustained achievement of business objectives and profitable customer relationships in car dealership industry. VOB BMW CRM strategies vary, however, the most successful strategies have several things in common.

VOB BMW has customer focused strategies; it articulate the positioning, evolvement and objectives of the customer relationship. VOB BMW employed the senior executive sponsorship and complete buy-in services solution for BMW brand to the customers. CRM strategies, just like other business strategies, are iterative processes; as the the organization advances to enhance the role of CRM strategy in business expansion. In order to make itself differentiated from competitors, company should take the follwoing actions.

Differentiation Strategy

Shared customer knowledge

Prospects, customers and business partners call on multiple resources in varying lines of business and through multiple communication channels. It's essential that any and all resources called upon share the same information in order to speak intelligently and with a common voice. Shared customer data ensures that each customer interaction is handled with the same degree of care while leveraging the same information across all ...