Impacts of customer relationship management

Page 1

Impacts of Customer Relationship Management on the Profitability of IKEA Limited


Introduction • This project is prepared on the basis of a manufacturing

company, that is, IKEA limited which exists in United Kingdom. However, it is considered as the largest furniture manufacturing firm in UK. This project is based on demonstrating the impacts of customer relationship management on profitability of the cited firm IKEA Ltd. Along with that, the project will also help readers and researchers to analyse those factors that are playing dominating role in affecting the customer relationships with the concerned business organization.


Research Aim and Objectives Main aim of this research project is to identify the impacts of customer relationship management on the profitability of IKEA limited.

Research Objectives •To identify the impacts of customer relationship management on profitability of IKEA limited. •To analyse the factors that can affect customer relationship management. •To recommend the ways in which CRM can be used by IKEA limited.


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Research Methodology • Research Approach: Inductive • Research Method: Survey Methodology • Research Type: Qualitative • Data Collection: Interview from the managers of IKEA

• Sampling: 8 managers of IKEA • Data Analysis: Thematic Analysis


Data Analysis • Theme 1: - Most of the managers of IKEA are of the view that

CRM has accommodated their operational needs.


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Data Analysis • Theme 2: - Major portion of top level management have

evaluated that CRM has resulted in good profitability.


Data Analysis • Theme 3: - Daily routine tasks of IKEA limited are greatly

impacted without management.

existence

of

customer

relationship


Data Analysis • Theme 4: - Customers relationship management is an ideal

thing for making good relationships with customers rather than attracting new customers and understanding their needs and wants.


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Data Analysis • Theme 5: - Personalization of customization can be adopted by

IKEA limited through CRM system.


Conclusion • It has been concluded from the research project that customer

relationship management is one of the most important system to be implemented in a manufacturing firm. Not only that but it should be applied in any type of business organization because it helps to create healthy relationship with ultimate customers and assists firm in gaining maximum profitability. It has also been concluded that business IKEA limited in spite of being one of the largest furniture manufacturing firm in the UK uses CRM tool in order to increase number of customers for improving profitability.


Recommendations • Customer relationship management is one of the most beneficial

tool that can be used by every business organization as it helps to increase relationship with customers of the firm. In the current project, IKEA is using this approach for improving its profitability. Though, this approach is very advantageous but still it is recommended to the firm that managers should use this tool in a careful manner because slight mistake in interpretation or customer's data can lead to wrong production and then firm will have to bear heavy loss. Therefore, it would be ideal for the firm to make appropriate use CRM tool in order to gain maximum profitability.



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