Customer relationship management: a viable strategy for the retail industry?

Abstract

This paper uses as its focus the traditional U.K. retail industry at a time when competition from newer channels is increasing. Research into other industry sectors has proven that well planned and executed customer relationship management strategies can increase profitability by improving customer loyalty. Many areas of the retail sector appeared to have neglected the benefits of CRM strategies, and where attempts have been made to implement CRM one or more of the vital constituents - employees, customers and shareholders have been neglected. The true barriers to CRM implementation are often thought to be financial or technological, according to research into other industry sectors. In reality however, financial and technological barriers are less problematic than organisational change, cultural and people barriers. The results of the retail survey carried out by the researchers support their original idea that few sectors of the traditional UK retail industry have implemented CRM strategies, and those that have are still are the early stages in the cycle. The survey questioned retailers on 3 main areas - The Company; IT Strategy and Future Strategy. Results for each for area are presented and change implications are discussed.