Customer Relationship Management of Brand A Sausage towards improving Customer Satisfaction, Retention and Loyalty THESIS

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1 Customer Relationship Management of Brand A Sausage towards improving Customer Satisfaction, Retention and Loyalty THESIS by Andrew Ngaditeja Binus International Universitas Bina Nusantara Jakarta 2006 i

2 Customer Relationship Management of Brand A Sausage towards improving Customer Satisfaction, Retention and Loyalty Thesis Proposed as requirement for obtaining Sarjana Degree at Marketing Department Specialization / Stream Education Level Strata-1 (Sarjana / Bachelor) by Andrew Ngaditeja Binus International Universitas Bina Nusantara Jakarta 2006 ii

3 Customer Relationship Management of Brand A Sausage towards improving Customer Satisfaction, Retention and Loyalty THESIS Prepared by: Andrew Ngaditeja Approved by: Supervisor Thomas Apitzsch Binus International Universitas Bina Nusantara Jakarta 2006 iii

4 BINUS INTERNATIONAL UNIVERSITAS BINA NUSANTARA Statement for readiness in attending defense examination THESIS Andrew Ngaditeja Hereby stated that the thesis entitled: Customer Relationship Management of Brand A Sausage towards improving Customer Satisfaction, Retention and Loyalty Is truly my original and is never brought up as scientific paper partly, or entirely on my name or other parties Andrew Ngaditeja Supervisor Approval I approve this thesis to be in defense examination Thomas Apitzsch July 07, 2006 Supervisor iv

5 BINUS INTERNATIONAL UNIVERSITAS BINA NUSANTARA Major Marketing Sarjana Ekonomi Thesis Year 2006 CUSTOMER RELATIONSHIP MANAGEMENT OF KIMBO SAUSAGE TOWARDS IMPROVING CUSTOMER SATISFACTION, RETENTION AND LOYALTY Abstract Andrew Ngaditeja ( ) Opening Statement: A good relationship with the customer is essential and will determine the successfulness of one s company. Therefore, a good implementation of CRM is required to increase customer satisfaction that can lead to an increase in the Customer Loyalty and Customer Retention, which ultimately will increase the company income and revenue. Objective: In this thesis, an analysis of the company CRM that suits PT. XYZ as the producer of Kimbo sausage brand will be discussed. In this integrated CRM there are many issue and problems to be resolved in the company. Like a saying there is no perfect tusk, CRM found in the company has many weakness. It is appropriate as the trust that has been given by the company; part of this thesis is to make recommendation that can make better CRM for the company that can lead to improvement of the CRM system and standard that can mutually benefit the company and its customers. Method: This is a Company Project thesis (with company agreement). Methodology used in this thesis is Data Collection, Field Research, Inputs from the staff of the company and Questionnaire to the customers of Brand A in Jakarta area. Result: As for the CRM itself, every company has different CRM system. Design of the blueprint of the CRM system for PT. XYZ will be developed. The process of this analysis is done customized for PT. XYZ. The result of this thesis is a process business of CRM and the application needed to support the CRM model, which designed especially for PT. XYZ Key Terms: CRM, Business process, CRM system improvement, Customer satisfaction. v

6 PREFACE Gratitude I express to the completion of this thesis. First of all, I thank God and Jesus Christ for His graciousness during and upon completion of this thesis with the best result and in timely manner. This individual field research project is compiled in order to fulfill requirement for S1 Bina Nusantara International degree program. The aim of this thesis is to analyze the Customer Relationship Management (CRM) model. Upon the completion of this thesis, my aim is to make recommendation to the company in order to increase Customer Satisfaction, Customer Retention and Customer Loyalty. The company that I am going to utilize is PT. XYZ as the producer of Kimbo sausage brand. The successfulness of this thesis is because the help and contribution from the related parties. Therefore, it is very appropriate for me to show a lot of appreciation to anyone who help and contribute toward the completion of this thesis. My thanks and gratitude is shown to: 1. Mr. Firdaus Alamsyah as a CEO of Joseph Wibowo Centre 2. Minaldi Louis as Program of Director of Binnus Inter 3. Miss. Nelly N. Maarif 4. Mr. Andreas Raharso 5. My Mum, Dad and sister who gives support in ideas and moral 6. All of the staff at PT. XYZ 7. My Mentor (Mr. Pierre Wirawan) 8. My Supervisor (Mr. Thomas Apitzsch) vi

7 9. All of the lecturer at Binus International who helped me directly or indirectly in the making of this thesis 10. My classmate (Marketing Major 2006 and 2006i) 11. And everyone else that I don t have the chance to thanks that help me through this rigorous process in the making of this thesis during this past 6 months. My last word is that thesis hopefully can be useful for the company and the readers of this thesis. Jakarta, 22 March 2006 vii

8 TABLE OF CONTENTS Abstract v Preface vi Table of Contents... viii Tables and Figures List.. xi Chapter I: Introduction 1.1 Background Vision and Mission Statement Product Lines Scope Aims and Benefits Structures... 5 Chapter II: Theoretical Foundation 2.1 Customer Relationship Management (CRM) Definition The tri-dimensional Figure Customer Satisfaction, Retention and Loyalty Process Effective Customer Relationship Management.. 10 Chapter III: Problem Analysis 3.1 Customers Analysis and its Roles Market Analysis SWOT Analysis CRM Analysis and Implementation Problem Definition. 19 viii

9 Chapter IV: Research Methodology 4.1 Research Method Research Process Schematic Diagram Customer Information Gathering Survey 27 Chapter V: Result and Solution 5.1 CRM System Improvement Blueprint of the CRM software Return of Goods Problems and the Corrective Action Coordination between 2 members companies of X Organization Structure Survey Result. 39 Chapter VI: Recommendation 6.1 Improvement Program Strategy Customer Profiling Other Strategy Opportunity for Growth in the Future Chapter VII: Conclusion 7.1 Discussion Conclusion. 52 ix

10 REFERENCES.. 53 APPENDIX Product Lines A - 1 Organization Structure. A - 2 Copy of Questionnaires A - 3 CURRICULUM VITAE COMPANY REFERENCES x

11 List of Tables and Figures Tables List - Table 1: Table1: Major causes in return product and Corrective Action. 36 Figures List - Fig 1: The tri-dimensional Figure 8 - Figure 2: Finished product s Supply chain Fig 3: The Research Process 22 - Fig 4: Schematic Diagram for Theoretical Framework Fig 5: Functional Decomposition Diagram Fig 6: Context Diagram < Data Flow Diagram Level 0 > Fig 7: Data Flow Diagram Level Fig 8: Data Flow Diagram Level Fig 9: Favorite Product in accordance to the customer s individual preference Fig 10: Most sales generated by each brand 41 xi

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