Skip to main content

How Do Automobile Companies Use CRM To Improve Customer Loyalty? A Study Of Volkswagen

As the cost of acquiring a new customer is five times more than retaining an existing customer, encouraging brand loyalty is an ultimate goal for any business. Customer Relationship Management (CRM) is a newly evolved phenomenon that, if applied correctly, can transform an organisation’s outlook on the customer and improve their loyalty to the brand enormously.

Volkswagen is currently Europe’s number one automobile brand and is a globally renowned distributor of motor vehicles. In fact, one in five cars on the road in Europe is a Volkswagen. However, Toyota are emerging as a major threat, and the dominance of Volkswagen is beginning to diminish slowly but surely.

This study seeks to establish what CRM procedures Volkswagen have in place (whether intentional or without actually realising it), with an evaluation of current customer loyalty in the UK among Volkswagen consumers. This was done by using a combination of primary and secondary research, with the primary techniques being focus groups, interviews and questionnaires.

The outcome of the research was that Volkswagen has plans to bring in a refined CRM approach to improve customer loyalty rates. The construction of a sophisticated database to record all consumer behaviour is well underway and will bring a tailored approach to each consumer, which is a key indicator of a successful CRM strategy. However, at the time of the study the organisation was doing very little along the lines of CRM intentionally, although basic models (such as the 4 P’s) grasped certain elements of CRM.

The questionnaire results provided sufficient evidence from Volkswagen consumers that loyalty is not as high as you would expect for Europe’s leading automobile supplier.

1.0 INTRODUCTION
1.1 Insight into this Paper
1.2 Reasons for Research Topic
1.3 Academic Objectives of the Paper
1.4 Chapters Overview

2.0 SETTING THE SCENE
2.1 Volkswagen Background

3.0 LITERATURE REVIEW
3.1 Introduction
3.2 Definitions of CRM
3.3 Reasons for the Emergence of CRM
3.4 The Growth of CRM
3.5 CRM in the 21st Century
3.5.1 The Emergence of the Internet – Opportunities and Challenges
3.6 The Use of a Database in CRM
3.6.1 The Database and Resulting Analysis
3.6.2 Measuring the Success of the Database
3.7 Criticisms of CRM
3.8 The Effects of CRM on Customer Loyalty
3.8.1 Loyalty Defined
3.8.2 Positive Aspects of Customer Loyalty
3.8.3 Ways in Which CRM Can Achieve Improved Customer Loyalty
3.9 Conclusion of Literature

4.0 METHODOLOGY
4.1 Introduction
4.1.1 Case Study Approach
4.2 Research Methods
4.2.1 Secondary Research
4.2.2 Primary Research
4.3 Quantitative Research – Questionnaires
4.3.1 Pilot Questionnaire
4.3.2 Final Questionnaire
4.3.3 Limitations of Questionnaires
4.4 Qualitative Primary Research – Interviews
4.4.1 Limitations of Interviews
4.5 Ethical Considerations

5.0 ANALYSIS & FINDINGS
5.1 Introduction
5.2 Interview A
5.2.1 Question 1
5.2.2 Question 2
5.2.3 Question 3
5.2.4 Question 4
5.2.5 Question 5
5.2.6 Question 6
5.2.7 Question 7
5.2.8 Question 8
5.2.9 Question 9
5.2.10 Question 10
5.2.11 Question 11
5.3 Interview B
5.3.1 Question 1
5.3.2 Question 2
5.3.3 Question 3
5.3.4 Question 4
5.3.5 Question 5
5.3.6 Question 6
5.3.7 Question 7
5.3.8 Question 8
5.3.9 Question 9
5.4 Questionnaires
5.4.1 Question 1
5.4.2 Question 2
5.4.3 Questions 3, 8 & 9
5.4.4 Question 4
5.4.5 Question 5
5.4.6 Question 6
5.4.7 Question 7

6.0 CONCLUSION
6.1 Introduction
6.2 Focus Group (Interview A)
6.3 Interview B
6.4 Questionnaires
6.5 Limitations
6.6 Possible Areas of Future Study and Recommendations

REFERENCES

BIBLIOGRAPHY

APPENDICES
A Statement of Learning
B Interview A (Focus Group) Transcripts
C Interview B Transcripts
D Pilot Questionnaire
E Covering Letter
F Final Questionnaire
G Questionnaire Results
H Setting the Scene
I Validity & Reliability
J Case Study
K The Likert Approach

Download Here: Dissertation

Popular posts from this blog

Essay - Strategic Analysis of Tata Group

http://www.study-aids.co.uk/marketing/marketing_essays.html 1. Introduction Tata Group is one of the most renowned and prominent business groups in India. Tata Group is comprised of 96 functioning enterprises which fall under seven different business sectors. Undoubtedly, this group stands as a giant in the business community of India. Tata Group has now expanded its operations in more than 54 countries. This group has spread its network worldwide catering the needs of consumers everywhere. As a result, this group is gaining more popularity in specific countries where they have started their business, some of which include UK, Bangladesh, Vietnam and USA. After their successful operation in India, Tata group is making every effort to penetrate in the international market. It is imperative to analyze their business strategy which is not possible without conducting a thorough SWOT analysis, PESTEL, reviewing their business model and investigating their strategic position. However, it ...

Vodafone Plc SWOT Analysis and Five Forces

Abstract Aim: This essay aims to perform an analysis on the basis of integration of SWOT and Porter’s Five Forces frameworks. The key aim of this essay is to establish the reasons behind the success of Vodafone, which is ranked 3rd in FTSE100 Company ranking, and thereby represent the implications and recommendations. Methodology: This paper is based on integration of the secondary research, which includes recent reports, books and journal articles. Findings: The key findings indicate that Vodafone is a well – established global company with a highly successful internationalization strategy. This implies that Vodafone has a lot of opportunities to take advantage of, despite the recent economic adverse events. 1.0. Introduction This paper aims to demonstrate an analytical essay on the company, which is FTSE100 Top 20 Company as of July, 2012. A chosen company for this report is Vodafone Group Plc, which is ranked third in FTSE100, with the market capitalization of...

MBA Dissertation | Strategy Making Processes | Decision Makers | SME

MBA Dissertation | Strategy Making Processes | Decision Makers | SME There is a body of literature which is suggestive that the strategy making processes of SME firms are largely identifiable with the emergent perspective. However, some scholars also believe that a proportion of SME's utilise fully rational strategy processes. Therefore, with the multitude of arguments surrounding this topic, the purpose of this study is to procure further insight into the strategy-making processes of small and medium businesses. Additionally, the research will examine the objectives of these organisations, and reveal which strategy processes or specific elements can be associated with attaining success. In order to satisfy this raison d'être, empirical research has been conducted, whereby a sample of UK SME decision makers were telephone interviewed and answered a set of questions regarding the strategy processes of their businesses. This data has been presented and analysed throughout thi...