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CRM at Gibca Group Companies

Last reviewed: June 4, 2010 ~26 min read

CRM at GIBCA Group Companies

This chapter is structured onto three sections, each constructed on the three hypotheses previously issued. In terms of actual analysis, this is generically divided into two methods of approach -- qualitative and quantitative. Each analysis method reveals advantages as well as disadvantages. Qualitative research for instance is constructed on interaction with the members of a community and their observation. The main limitation of this approach is that it could lead to subjective findings and conclusions which only apply to the analyzed sample; in other words, the findings retrieved through a qualitative analysis might not be suitable for extrapolation.

Quantitative research on the other hand is constructed on numeric and factual information and the findings can be extrapolated outside the sample to the larger population (Walliman and Walliman, 2006). The ultimate selection of the analysis method depends on the specific particularities of a given analysis topic and the degree to which an analysis method can best serve the topic's goals. In the specific case of the customer data and the customer relationship management at the GIBCA Companies, the most adequate approach to analysis would be that of a combination of qualitative and quantitative analysis.

The combination of the two methods is generically referred to as triangulation and it has the main advantage of combing the benefits of the quantitative and qualitative methods. In their a critical introduction to social research, authors Matt Henn, Mark Weinstein and Nick Foard (2009) mention that "many […] researchers use 'multiple strategies of field research in order to overcome the problems the steam from studies relying upon a single theory, single method, single set of data and single investigator' (Burgess, 1984). This approach is frequently referred to a triangulation. It suggests that research conclusions that are derived from converging evidence -- using a variety of different research methods -- are likely to be more credible than research findings which are based on only one source of evidence" (Henn, Weinstein and Foard, 2009).

As it has been established throughout the previous chapter, the two means of retrieving data are those of direct communications (open interviews) and questionnaires. The direct conversations are integrated in the qualitative approach, whereas the questionnaires are integrant parties of a qualitative analysis. This means that a separation occurs in the treatment of the data gathering tools. Another separation is revealed in terms of the research communities to which the data gathering processes are selected. While some of the processes are applied to the GIBCA Group Companies' customers and others are applied to the companies' staff members, the data collected would have to be separated based on the sample. As a parenthesis, the questions related to customers and employees will support the research by revealing the nature of the respondents and consequently, the relevance of their answers. A new customer for instance, which has been a GIBCA Group Companies client for less than a year and has in this period made only two purchases, is perceived as a less important customer than one who has been a loyal customer for seven years and has made over 15 purchases. This importance is not given by loyalty or organizational preferences -- or discriminations -- but by the simple fact that a customer in a sustained, long-term relationship is better able to offer constructive feedback.

Given this understanding, it would now be useful to identify the two samples -- the customer sample and the employee sample -- onto which the analyses would be conducted.

Sample #1: The GIBCA Group Company customers

At the level of direct communications between the GIBCA Group Companies employee and the customers, the client characteristics would be identified throughout the following questions:

IC1. In an effort to improve our customers' satisfaction, we have set in motion an internal process of improvements in the relationship with the customer. Would you like to participate in this endeavor by answering some questions? -- the answer to this question, whether it is a clear Yes or No, a reticent answer or an excuse, will inform of the willingness of the sample participants to provide feedback.

2. For the purpose of improving our relationship with you, we will be recoding this conversation for future analysis. Is this accepted by you? -- This question reveals the customers' openness to literally helping the entity by allowing it to further assess the input; it also creates the necessity for input objectivity by revealing that the data offered would be verified.

3. First of all, how long have you been a GIBCA Group customer? -- This question will reveal the length of the relationship between the provider and the client.

4. And in this time, how would describe your relationship with the firm? -- This question allows the customer to introduce his own description of the relationship with the firm.

5. Would you say you were mostly satisfied or mostly dissatisfied with the company's products, services and customer interaction? -- This question allows the company to become more specific in the customers' perception of the firm and its efforts to increase customer satisfaction.

The total number of interviewed customers is of 100 (one hundred), divided into five categories, based on their relationship with the individual companies. In this order of ideas:

20 of the interviewed customers are clients of Arabian Profile Ltd.

20 of the interviewed customers are clients of Glasshouse Co. Ltd.

20 of the interviewed customers are clients of GIBCA Furniture Industries Co. LLC

20 of the interviewed customers are clients of AIL Industries Ltd.

20 of the interviewed customers are clients of TEKAB Co. Ltd.

At the level of the questionnaires, the customer characteristics are identified by the following questions:

1. For how long have you been a GIBCA Group customer?

(a) for less than one year

(b) Between 2 to 4 years

2. During the period within which you were a customer, how many purchases did you make from GIBCA?

(a) Less than 5 purchases

(b) Between 5 and 15 purchases

3. How would you describe your level of satisfaction relative to the relationship you have developed with the GIBCA Group Companies?

(a) Highly unsatisfactory

(b) Satisfactory

The second question will reveal the strength of the relationship between the company and the customer. Combined with the first one, it will reveal the relevance of the customer's answers. The third question will reveal the general level of customer satisfaction. The answers retrieved for these questions are presented below:

Question 1

Question 2

Question 3

a b c a b c

Relative to the sample questions in the open interviews and the questionnaires, the following characteristics of the customer sample have been identified:

The sample size is of 100 GIBCA Group Companies customers, divided as mentioned above

Initially, only 95 customers were willing to respond to the organization and they all offered clear YES answers; a second phone call was scheduled and the rest of 5 customers subsequently offered their input

10 of the interviewed customers have been GIBCA Group Companies customers for less than one year; 50 of the respondents were GIBCA customers for 2 up to 4 years and the remaining 40 respondents have been the companies' customers for over 5 years

9 of the interviewed customers have made less five than purchases from the companies; 60 respondents have made more than five, but less than 15 acquisitions and the remaining 31 have made over 15 purchases

Only 2 of the respondents have declared to be highly unsatisfied with the company; the majority of 55 customers have stated to be satisfied with the group's products and services; 43 of the respondents were highly satisfied with the GIBCA Group Companies.

Sample #2: The GIBCA Group Companies staff members

The analysis of the usage of customer data and customer relationship management at the GIBCA Group Companies would not be complete without the constructive feedback from the companies' staff members. Yet, since their direct role in assessing customer satisfaction is more limited in comparison to the role of customers, the assessment of the employee sample is not constructed on open interviews and questionnaires, but on mere observations and qualitative assessments. Based on these, the following are noteworthy characteristics of the second study sample:

The size of the GIBCA Group Companies staff members sample is of 60 employees, all of whom agreed to anonymously answer the questionnaire

The 60 staff members were divided into five categories, based on their employment company. In this order of ideas, all of the five firms -- Arabian Profile Ltd., Glasshouse Co. Ltd., GIBCA Furniture Industries Co LLC, AIL Industries Ltd. And TEKAB Co Ltd. -- provided 12 respondents each.

All of the staff members who answered the questionnaire were sales staff and they directly interacted with the GIBCA Group Companies customers

Most of the respondents were males between the ages of 20 and 40 and they have been employed within the group for at least two years. This selection was made in order to enhance the objectivity and reliability of the employee feedback.

For purposes of clarity and analysis, the very information retrieved from the questionnaires and the direct communications would be divided into three distinct categories, based on their individual relevance for one of the specific hypotheses initially issued. In this order of ideas, the analysis of the three hypotheses would be constructed on the following input:

Hypothesis 1: Customer data improves customer strategies -- assessed based on the answers to the following questions:

1. And in the cases when you were dissatisfied, what generated this sentiment?

2. What were the elements that mostly satisfied you?

3. What about in the direct relationship with the firm. What gave you most satisfaction in this respect?

4. Is there anything else you would like to add?

5. Do you feel more comfortable negotiating your contracts with GIBCA employees with whom you are more familiar?

6. Do you feel that when you interact with a GIBCA employee who is more familiarized with your particular demands, your levels of satisfaction are higher?

7. Which of the following elements have generated the highest levels of satisfaction?

8. Which of the following elements generated the highest levels of dissatisfaction in your relationship with the GIBCA Group companies?

9. Do you feel more comfortable negotiating your contracts with GIBCA employees with whom you are more familiar?

10. Do you feel that a GIBCA employee who is more familiar with your customer information is better able to serve your needs?

11. What kind of information do you feel should be known by the company so that we are better able to serve your needs?

12. How would you define the relationship of the company with its customers?

13. How would you describe your relationship with the customers you serve?

14. Does GIBCA implement an organizational culture focused on customer satisfaction?

15. Do you, currently collect any customer information?

16. Did you ever notice that a customer on whom you possess and use data is better satisfied?

Hypothesis 2: An increase in the amount of customer data collected leads to a subsequent increase in customer loyalty

1. Has a situation occurred in which, in the aftermath of customer data collection, you felt more inclined to make more purchases from GIBCA?

2. After experiencing better customer strategies based on customer data collection and integration did you increase your loyalty to the firm?

3. Do you feel that in the future, if the company were to invest more in its relationship with you, you would increase your loyalty to the organization?

4. How many purchases would you say have been influenced by customer data integration?

5. Did you notice a purchasing recurrence in the customers for which you collected information?

6. In the cases when you observed a purchasing recurrence, what was the number of these additional purchases followed by usage of customer data?

7. Have the customers signaled that a continuous attention to customer data would increase their future loyalty?

Hypothesis 3: The GIBCA Group Companies will emphasize more on customer relationship management -- assessed based on the answers to the following questions:

1. Do you believe that a customer -- organization relationship in which the parties are more familiar with each other is more fruitful?

2. If GIBCA was to enhance its desire to get to know you a deeper level and to better satisfy your professional needs, do you feel you would be able to attain your goals at superior levels?

3. Would you be willing to trust us and invest in a relationship with us in order to achieve long-term successful outcomes?

4. Would you be willing to share this type of information with us so that we can further invest in the development of our relationship?

5. Do you feel that the satisfaction of the customer could be enhanced through a better usage of customer data?

6. Would you agree that the company needs to implement more customer data and CRM in order to better satisfy the customer?

7. Do you recognize that customer satisfaction is you own goal, as it ensures your own professional growth and your own revenues stability?

Having established the data analysis methods, it is now important to reassess the initially established hypotheses in light of the data collected. Yet, before commencing this endeavor, it is necessary to review the reliability and validity of the data collected. The data collected are extremely reliable for once as they are generated from reliable sources. Secondly, the results are reliable as they are retrieved through the consistent usage of the same analysis tools throughout the entire process. In terms of validity, this is limited as the analysis was conducted on the GIBCA Group Companies, their employees and their customers.

Hypothesis 1: Customer data improves customer strategies

When the company becomes better able to collect and use customer information, it will be better able to implement customer relationship management strategies. In other words, as the marketing team at the GIBCA Group interacts with the customer at the superior level, it will become better able to understand his desires and to develop the adjacent strategies.

In order to test the validity of this hypothesis, it is crucial to assess the answers offered to the relevant questions in the open interview and in the questionnaire. This analysis would be constructed on qualitative tools of observation, adapted specifically to the operational environment of the GIBCA Group Companies.

In order to increase the clarity of the analysis, it is useful to introduce a notation system as follows:

IC -- interview question to customer

QC -- questionnaire question to customer

QE -- questionnaire question to employee

The questions relevant at this stage of the analysis are as follows:

From the open interviews with the customers:

IC1. And in the cases when you were dissatisfied, what generated this sentiment? -- This question allows the customers to reveal if there were any situations in which their dissatisfaction was pegged to an inadequate use of customer data.

IC2. What were the elements that mostly satisfied you? -- Similar to the previous question, this one allows the customer to pin point any specific situations in which the proper use of customer data might have generated better customer strategies.

IC3. What about in the direct relationship with the firm. What gave you most satisfaction in this respect? -- Offers a new opportunity for the respondent to identify potential customer data usages which generated high quality customer strategies.

IC4. Is there anything else you would like to add? -- This fourth question creates the last opportunity for the respondent to freely state any other elements which might have characterized the relationship with the firm -- in an either positive or negative manner -- or to re-answer a previously posed question based on elements he had remembered since the question was first posed.

IC5. Do you feel more comfortable negotiating your contracts with GIBCA employees with whom you are more familiar? -- This question reveals the perceived importance of customer data to the customers.

IC6. Do you feel that when you interact with a GIBCA employee who is more familiarized with your particular demands, your levels of satisfaction are higher? -- This question strives to once again -- but at a deeper level -- identify the means in which the clients perceive that properly used customer data leads to better customer strategies.

Answers and analysis

IC1. 50 of the 100 respondents stated that the element which generated the most dissatisfaction was the inability to get through to the company operators in time. 30 of the respondents stated that their highest levels of dissatisfaction were generated by fact that GIBCA employees sometimes mix up the orders. The remaining 20 offered other answers.

IC2. 50 of the respondents stated that it was the high quality of the products; 40 respondents mentioned the politeness of the staff members and the remaining ten offered other reasons.

IC3. Most of the respondents forwarded their ability to rely on the partnership.

IC4. The fourth question loses relevance as the responses cannot be integrated in a unified, conclusion driven, set of responses.

IC5 and 6 -- most of the answers were definite YES, meaning as such that customers felt safer with an employee who possessed customer data on them and that in such cases, their levels of satisfaction were increased.

All these findings point to the pivotal conclusion that when customer data is improperly used, customers are dissatisfied. In other words, when customer data is adequately used, it can create better customer strategies.

From the customer questionnaires:

QC1. Which of the following elements have generated the highest levels of satisfaction? Please assign a number from 1 to 5 to the following elements, 1 being the most important and five being the least important.

(a) the reliability of the company

(b) the high quality of the products and services

(d) the competitive prices

(e) the politeness and assistance of the staff

QC2. Which of the following elements generated the highest levels of dissatisfaction in your relationship with the GIBCA Group companies? Please assign a number from 1 to 5 to the following elements, 1 being the most important and five being the least important.

(a) the poor quality of the products

(b) the inability to rely on the company's promises

(d) the fact that your orders have been mixed up

(e) the poor treatment from the GIBCA Group employees

QC3. Do you feel more comfortable negotiating your contracts with GIBCA employees with whom you are more familiar?

(a) Yes, definitely

(b) No, I prefer privacy

QC4. Do you feel that a GIBCA employee who is more familiar with your customer information is better able to serve your needs?

(a) Yes, of course

(b) No, not really

QC5. What kind of information do you feel should be known by the company so that we are better able to serve your needs?

(a) My company's address, previous orders and preferences

(b) My personal preferences

(d) My previous satisfactions

(e) No information

Answers and analysis

Given the nature of the first two questions, their analysis cannot be integrated in a tabular format. The answers to the first questions reveal the following:

30 per cent of the customers stated that the high quality of the products was the main generator of satisfaction

30 per cent of the respondents stated that it was the ability to rely on the company

15 per cent stated that it was the quick delivery of the products

15 per cent forwarded the competitive prices

10 per cent mentioned the politeness of the GIBCA Group Companies staff members

It is noted that the proportion identified throughout the previous analysis has suffered some modifications, but this is explainable by the fact that the questionnaires introduce more possible answers and they as such influence the mind of the respondent.

The second question reveals the following:

the highest levels of customer dissatisfactions are given by the inability to adequately communicate with the firm (40 per cent)

30 per cent of the respondents stated that it was the order mix-up which created dissatisfactions

25 per cent argued that it was the poor treatment received from the GIBCA staff members

2 per cent forwarded the lack of company reliability and 3 per cent mentioned the poor quality of the products.

The responses for the rest of three questions are integrated in the following table:

Question 3

Question 4

Question 5

a b c a b c d e

These findings lead to the conclusion that from the customers' standpoint, their highest levels of satisfaction are attained when the company possesses and uses customer data. As such, when customer data is adequately gathered and used, it leads to improved customer strategies.

From the employee questionnaires:

QE1. How would you define the relationship of the company with its customers?

(a) Very good

(b) Acceptable

QE2. How would you describe your relationship with the customers you serve?

(a) Very good

(b) Acceptable

QE3. Does GIBCA implement an organizational culture focused on customer satisfaction?

(a) Yes, it does

(b) Sometimes

(a) Yes, I always engage customers in open communications

(b) Sometimes, depending on my and the customer's mood

QE5. Did you ever notice that a customer on whom you possess and use data is better satisfied?

(a) Yes, of course they are

(b) No, I have not noticed that improvement

Answers and analysis

The final part of the analysis at this stage is composed from the analysis of the employee answers relative to their own views and experiences with customer data. These answers are integrated in the table below:

Question 1

Question 2

Question 3

Question 4

Question 5

a b c a b c a b c

These findings indicate that the GIBCA Group Companies do not focus on customer data, nor customer satisfaction, but the few employees who have -- for one reason or the other -- engaged in customer data collection and usage -- have noticed improvements in their own approaches to customers and in turn, improvements in the customers' levels of satisfaction. All in all, these elements lead to the final conclusion that when customer data is used, it leads to improved customer strategies, and adjacently, to improved customer satisfaction. Customer satisfaction in turn leads to improved organizational results, the second hypothesis of the study.

Hypothesis 2: Increase in the amount of customer data collected leads to increase in customer loyalty

In the testing of this hypothesis, two sets of questionnaire questions are analyzed.

From the customer questionnaires:

QC1. Has a situation occurred in which, in the aftermath of customer data collection, you felt more inclined to make more purchases from GIBCA?

a) Yes, of course

b) I have not paid attention to the aspect

c) No, never.

QC2. After experiencing better customer strategies based on customer data collection and integration did you increase your loyalty to the firm?

a) Yes I did

b) No I did not c) I do not remember

QC3. Do you feel that in the future, if the company were to invest more in its relationship with you, you would increase your loyalty to the organization?

a) Yes, of course

b) No

c) I do not know

QC4. How many purchases would you say have been influenced by customer data integration?

a) One or two

b) Approximately five purchases

c) More than five purchases

d) None

From the employee questionnaires:

QE1. Did you notice a purchasing recurrence in the customers for which you collected information?

a) Yes, they seem to come back for more purchases

b) No, I have not noticed such a recurrence

c) I have not paid attention to this detail

QE2. In the cases when you observed a purchasing recurrence, what was the number of these additional purchases followed by usage of customer data?

a) One or two

b) Between three and four

c) Over five purchases

QE3. Have the customers signaled that a continuous attention to customer data would increase their future loyalty?

a) Yes, they have

b) No, they have not c) I have not paid attention to this detail

Answers and analysis

Customer answers

Question 1

Question 2

Question 3

Question 4

a b c a b c a b c d

Employee answers

Question 1

Question 2

Question 3

a b c a b c

Hypothesis 3: The GIBCA Group Companies will focus more on customer relationship management

The GIBCA Group places an incremental emphasis on customer relationship management and will continue to do so in order to enhance customer satisfaction and organizational revenues. This hypothesis is supported by the analysis of the following questions:

From the open interviews with the customers:

IC1. Do you believe that a customer -- organization relationship in which the parties are more familiar with each other is more fruitful? -- This question opens the door to a new type of information and communication, constructed on the prospect of a future relationship based on adequately used customer data.

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