SALDO DE LA CARTERA TOTAL INDIVIDUAL DE VIVIENDA

Source: Adapted from Payne (2006: 31)

5.3.1.1 Sales force

Sales staff are well positioned to determine customers‟ specific needs and to

make purchase recommendations. The interactive nature of face-to-face communication with customers enables sales staff to deal effectively with complex queries (Fletcher, 2001: 214; Payne, 2006: 181). Assuming that

Integrated CRM system Sales force Direct marketing Electronic commerce In te g rate d ch a n n e l ma n a g e m e n t Mobile commerce V ir tu a l P h ysical Telephone

165 staff is well trained, conversations with staff can be used to resolve complex customer queries which play an important role in CRM (Light, 2003: 608). Improving the efficiency and effectiveness of the sales force has long been a goal of organisations (Richards & Jones, 2008: 126).

Using printed materials or product samples, sales representatives can convey large amounts of information and demonstrate product features to potential customers. Knowledgeable sales staff can use the face-to-face nature of their activities to positively impact customer attitudes (Richards & Jones, 2008: 126).

5.3.1.2 Telephone

The telephone is well suited for dealing with vague or unclear questions from customers and according to Payne (2006: 182) is best suited to provide responses to specific queries from a customer. With improvements in technology, the automated voice systems which responds to telephone calls offers callers keypad driven options, which helps to reduce the duration of calls (Rodgers & Howlett, 2000: 11).

5.3.1.3 Direct communication

Direct mail can offer a reasonable degree of customer service when based on full and accurate databases which contain records on customer contact, customer profiles and purchases. Direct mail can be tailored to the customer‟s individual interests and life events, thereby offering a reasonable

166 degree of customisation. Large amounts of information can be relayed succinctly through text and graphics, allowing many products to be featured, such as a product catalogue or brochure. Customers are offered the opportunity to browse through the organisation‟s products and, perhaps also

to place an order at their leisure (Payne, 2006: 182).

5.3.1.4 Electronic communication and e-commerce

E-commerce is defined as digitally enabled commercial transactions between organisations and individuals (Motjolopane & Warden, 2007: 2). Commercial transactions involve an exchange of value for products and services across organisational or individual boundaries. According to Kew and Herrington (2009: 26) research on e-commerce suggests that it offers business the opportunity to access local, regional and global markets. In addition, costs are reduced by eliminating the middlemen in both the purchase and sale of the product. E-commerce also potentially increases the range of goods and services on offer, thereby enhancing the sustainability of the organisation. According to Romano and Fjermestad (2003: 233-234) e-commerce plays a pivotal role in enhancing good communication in the accommodation industry.

Chen and Popovich (2003: 679) and Payne (2006: 180) point out that the explosive growth of e-commerce has brought new meaning to building customer relationships and has had a major impact on CRM. Customers can obtain information about an organisation‟s offerings at whatever time they choose, irrespective of the organisation‟s operating hours.

167 Advances in computer technology have created further opportunities for organisations. Web design enables an organisation to recognise individual users through their log-in procedures. In addition, the web offers customers and organisations twenty-four hour access to each other (Payne, 2006: 182). The information conveyed to users via the site can be tailored or personalised to their particular interests, purchase history and value to the organisation. Moreover, the volume of information that can be conveyed is potentially infinite, considering the sophisticated facilities of multimedia and hyperlinks to other sites. Customers can readily browse the organisation‟s

products online and can revisit the information by saving it on a computer or printing it out for later reference.

5.3.1.5 Mobile communication and commerce

Davis (2013: 31) records that currently Africa has 700 million mobile connections and the figure is estimated to grow to one billion by 2016. The growth of mobile commerce in Africa outpaces the rest of the world (Skelton, 2013: 24). Interestingly, Alison (2013: 1) reports that 50.3% of European employees will be mobile workers by 2013, which implies that European organisations must find CRM software solutions that leverage mobile services in order to provide their employees and customers with the best level of service and support.

Mobile commerce (m-commerce) broadly includes the use of mobile telephones, text messaging, Wireless Application Protocol (WAP) and 3G mobile services (Payne, 2006: 180). Payne (2006: 180) explains that with m-

168 communication the customer can obtain information or make a purchase in a much more convenient way and, at any given time.

Since the year 2000, a number of technologically advanced cell phones, such as Blackberry and iPhone, have emerged to suit the needs of consumers and sellers. A rising customer demand for new mobile phones and an increased penetration of the tablet and smart phones in the market are expected to positively impact upon CRM in organisations (Liyakasa, 2012: 18). It is predicted that in Western Europe, more than 70% of all mobile subscribers will be using smart phones by the end of 2015 (Alison, 2013: 1). Smart phones have opened up new ways of managing customer relationships. To add, the use of social media, for example, Facebook and Twitter has positively impacted on networking opportunities and communication strategies for both organisations and customers (Davis, 2013: 31), thus positively impacting CRM.

Donner (2007: 1) explored the use of ICTs in small and informal businesses in the developing world by focusing on the role of ICTs in customer acquisition and retention in India. Donner found that the mobile telephone had become one of the most useful ICT tools among small and informal businesses as a means for developing and maintaining contact with customers.

The new generation of 3G phones offers the capability of being able to deliver full colour displays enhanced by sound and full colour images. 3G

169 phones offer higher levels of accessibility than the web, enabling users to access information or perform transactions from any place, as well as at any time (Sohrabi et al, 2010: 7). With regard to customisation, added value is possible because in addition to taking account of a customer‟s previous purchase history and contact with the organisation, m-commerce enables offers to be extended to an individual at any location and at any particular point in time. As Bluetooth and similar m-commerce technologies develop, mobile devices are able to function as a micropayments system, for example, enabling a customer to check out of a hotel.

5.3.2 Information management

The second major operational factor that might impact the development of CRM in SMTEs is information management. Information management forms a major component of the cross-functional CRM process described by Payne and Frow (2005: 173). Information management processes involve the collection, accumulation and analysis of customer information resulting from customer interfaces (Payne & Frow, 2005: 173) via the different communication channels discussed above. It is likely that information management also supports strategy development as it provides information pertaining to market characteristics. Essentially, this information can be used to develop customer strategy, as well as assist in the value creation process (Iriana & Buttle, 2006b: 28).

170 Payne (2006: 231) contends that a key role of information management is to ensure the customer-centricity of the organisation by embedding the customer perspective in all business activity. The effective management of information therefore has a crucial role to play in CRM (Chen & Popovich, 2003: 677). Information is critical for product tailoring, service innovation, consolidated views of customers and calculating customer lifetime value.

Ogirri (2007: 54) argues that one of the components of CRM is the gathering of customer information and effectively transforming it into customer knowledge, specifically to enhance customer profitability. All transactions with customers must be stored in an activities database. Customer information should be gathered through interaction at all customer points within an organisation so that the organisation obtains a constantly updated holistic view of the customer (Rodgers & Howlett, 2000: 8). Customer information could also assist and equip employees with a wealth of knowledge, which could be disseminated throughout the organisation so as to ensure customer satisfaction. Further, customer information enables the organisation‟s staff to

understand the profile of their particular customer allowing for personalised service to be rendered by anyone in the organisation (Chen & Popovich, 2003: 679).

An automated CRM system is therefore vital for maintaining an up-to-date record of all interactions with customers, including preferences, purchases, requests, complaints, queries, and in general their direct or indirect contacts with the organisation. In this way both positive and negative customer

171 experiences can be stored. The emphasis in this process needs to be on how the information can be used in a proactive way to develop enhanced relationships with the customer, rather than the sophistication of the technology. Figure 5.4 shows the interaction between components of