Analysis On The Possible Problems And Solutions Of Implementing CRM In Garment Enterprises

Aiming at the problems existing in the implementation of CRM in garment enterprises, some countermeasures are put forward.

CRM is a new management mode to improve the relationship between enterprises and customers. It is also a tool based on data mining, customer knowledge management and other information technology.

The implementation of CRM can bring convenience to the development of enterprises.

clothing

From the end of last century to the beginning of this century, fierce market competition has prompted business managers to realize the importance of customer relationship.

Therefore, CRM, as a new management mode to improve the relationship between enterprises and customers, is also a tool based on data mining, customer knowledge management and other information technology, which has aroused widespread concern in all walks of life.

First,

As a new management mode, CRM needs to be combined with specific industry background and enterprise conditions. As for clothing enterprises implementing CRM, it should have the connotation of clothing enterprises.

Specifically, the following three aspects should be included: first, customer and customer value should be the core of CRM.

In the practice of CRM, garment enterprises should strive to collect customer information, strengthen customer value management, and regard customer and customer value as the basic concept of clothing enterprise management.

Second, customer value.

Two, the implementation of CRM in garment enterprises

As a management concept, CRM has attracted the attention of the domestic garment industry since 1999. In 2001, some traditional garment enterprises began to pay attention to this field. In 2002, some software vendors began to launch the customer relationship management software system in garment industry, and began to implement in a few garment industries.

Since 2004, CRM has been further promoted in the clothing industry.

By 2007, many garment enterprises in China have implemented CRM.

Three, the problems existing in the implementation of CRM in garment enterprises

The core of CRM is customer and customer value.

Broadly speaking, the customers of garment enterprises can be divided into two categories (see Figure 1).

The first is terminal users.

End users mainly refer to the consumers who buy clothes, including individual customers and business customers.

The purchase of enterprise customers is usually based on group purchase.

The change of terminal customer demand will be reflected in all aspects of apparel value chain.

The second category is the industry chain customers.

The industry chain customer is the extension to customer's meaning.

For a specific garment enterprise, the industry chain customers include upstream fabric suppliers and downstream distributors, retailers and so on.

The relationship between these customers and enterprises is relatively stable, which is the co creator of the value of the industrial chain.

Fig. 1 customer relationship of garment enterprises

At present, many garment enterprises do not carry out CRM relationship with customers.

The concrete situation is as follows:

First, the concept of "focusing on customer and customer value" has not yet been deeply rooted in people's minds.

China's garment enterprises are mostly private enterprises, and customer management decisions and operations are more casual.

Many clothing enterprises lack the quality of thinking wholeheartedly for their customers. Many people are not too clear about the importance of customer value.

In addition, many managers of clothing enterprises do not really understand the connotation of CRM. Some people think that CRM is mainly a software, so long as someone operates the software, it does not combine management, marketing and information technology effectively.

Second, the lack of effective customer information.

Although many garment enterprises have begun to collect customer information, they mostly start from pactions and technologies, and seldom consider and analyze customer needs and behaviors.

Therefore, the collection of customer information is often not the most effective.

Third, there is a lack of deep excavation and analysis of customer data.

Clothing enterprises need at least two types of roles in implementing CRM, database technology engineers and data analysts, and customer analysis should be led by marketing analysts.

However, the actual situation in China is that many marketing departments of garment enterprises do not have professional customer analysis staff. Marketing analysis is responsible for the information technology department. The marketing planners of the enterprises do not understand the basic analysis methods, and even have no contact with the actual data of the customer database.

Fourth, do not calculate customer lifecycle value.

The customer lifecycle value is the expected profit that the enterprise will achieve through a sale or service from a specific customer in the future.

The value of customer lifecycle value actually includes the following factors: customer retention rate, customer recommendation rate, customer acquisition cost, selling cost, product and service cost, average annual order, average order size and discount rate.

When implementing CRM in domestic clothing enterprises, few people know how to calculate customer lifecycle value and how to use customer life cycle value.

Fifth, there is no effective method of customer value management.

The so-called customer value is the sum of value that a customer brings to the enterprise in the process of business dealings with the enterprise in its whole life cycle.

Customer value management is to distinguish the different customers through the size of the value of the enterprise, so as to select the most valuable customers and consider the process of adopting different service strategies for different value customers.

Sixth, the lack of effective customer segmentation.

One of the most notable advantages of customer segmentation is that it can help enterprises focus more on existing and potential customers, and then design products and services that customers want to provide.

The practice of customer segmentation established on the basis of understanding customers can balance the relationship between enterprises and existing customers, so as to continuously expand the business scope of enterprises.

Customer segmentation forces companies to consider what they must sell to customers and what services they need to provide.

Four, clothing enterprises to implement CRM Countermeasures

In view of the many problems existing in the implementation of CRM, the following aspects can be considered:

First, improve corporate culture.

The success of garment enterprises in implementing CRM is closely related to corporate culture.

The successful implementation of CRM system must have a suitable corporate culture.

Corporate culture is the common values and behavior standards approved by employees. It directly affects the market operation behavior and strategy of enterprises.

Clothing enterprises should carry out cultural pformation in the following aspects: attaching importance to the interests of customers, satisfying customers, paying attention to the individual needs of customers, forming a management idea that focuses on emotional consumption, and forming a management idea of striving for customer oriented external resources.

Second, collect effective customer information and consider customers from the needs and behaviors of customers.

Every customer hopes that garment enterprises and companies can truly understand their clothing needs, and also hope that enterprises and companies will provide high-quality clothing products or services. At the same time, they hope that the company will respect personal physiology or other privacy. It is hoped that enterprises should not look at or do not produce because customers are not the most valuable customers or just individual needs.

Third, scientific calculation of customer lifecycle value.

Many scholars believe that customer lifecycle value can be expressed in a simple model.

Among them, I is the customer life cycle interval index, C is the discount rate, n is the whole customer life cycle length, UI is the customer income on the interval I, and VI is the customer cost on the interval I.

This model is to predict the customer life cycle under the condition that the default customer relationship remains unchanged for life.

Taking into account the uncertainty of the customer lifecycle length in a competitive market environment, the whole customer lifecycle length can be divided into a deterministic historical stage and an unknown expected stage. CLV can be divided into two parts, namely, the customer's original value (vold) and future value (vfuture).

Among them, n is the life cycle length of existing customers; m is the expected customer lifecycle length; fold (I) is the original value function; ffuture (J) is the future value function, which represents the profit created by the customer in the future (interval I) when the customer purchase mode remains unchanged; P (I) is a potential value function, which represents the profit that the company can create for the future in the future (interval I).

The final CLV prediction model can be obtained.

Among them, fold (I) can be obtained from the collection of past customer paction data in the customer database. Ffuture (J) can be derived from the linear regression of the past customer paction data. P (I) can use Kim to predict the potential value, and the m value can be derived from the customer conversion rate.

Fourth, establish effective customer segmentation model and strengthen customer value management.

At present, the theory of customer segmentation, which is recognized by academia and enterprises, is mainly the theory of customer value segmentation.

This is a theory of customer segmentation based on the value of customer lifecycle.

In view of the segmentation of customer value, some scholars at home and abroad have studied, and put forward some methods and models of customer value evaluation, but there are still some shortcomings.

Some models only consider the original value of the customer and the potential value of the customer. Other models take into account the original value, growth rate and customer loyalty of the customer.

In fact, customer value is also affected by customer's life cycle value and customer loyalty while it is also affected by customer satisfaction. Therefore, it is necessary to take account of customer satisfaction when considering customer value.

From this, we can establish a four dimensional model of customer segmentation. The first dimension is the original value of the customer, the second is the customer potential value, the third is customer loyalty, and the fourth dimension is customer satisfaction.

Using this method to segment customers, customers can be divided into sixteen categories, and corresponding customer retention strategies are made for each type of customer.

Fifth, we need to deepen customer data mining and analysis.

When implementing CRM, garment enterprises must establish a perfect customer analysis system.

Customer analysis work is done by professional marketing analyst and database technology engineer.

Marketing analysts must understand the basic analytical methods and understand that those customer data are most useful for the development of enterprises. At the same time, database technology engineers must combine the requirements of marketing analysts with customer data mining and analysis.

Sixth, strengthen human resources management.

Clothing enterprises must attach great importance to human resources management, because the effect of implementing CRM in garment enterprises is directly related to every employee's behavior.

Five. Conclusion

To sum up, in order to succeed in implementing CRM system, a good corporate culture must first be established.

Let every employee understand: standing at the customer's point of view, meeting the personalized needs of customers, and constantly collecting effective customer information.

When analyzing and mining customer data, marketing analysts and database engineers must help each other with their own advantages, conduct scientific analysis of the collected customer information, and subdivide all the customers into different types through the customer segmentation model, and carry out corresponding customer retention strategies according to the characteristics of each type of customer.