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Understanding Customer Relationships
Membership Number: 14298169
1
‘I confirm that in forwarding this assessment for marking, I understand and have applied the CIM
policies relating to word count, plagiarism and collusion for all tasks. This assessment is the result
of my own independent work except where otherwise stated. Other sources are acknowledged in
the body of the text, a bibliography has been appended and Harvard referencing has been used. I
have not shared my work with other candidates. I further confirm that I have submitted an
electronic copy of this assessment to CIM in accordance with regulations.’
Word Count - 3,130
Understanding Customer Relationships
Membership Number: 14298169
2
TABLE OF CONTENTS
Task 1
Understanding customers and identifying their needs
1.0 Executive summary 4
1.1 The two key customer groups for the organization 4
1.2 Information required or better and closer relationship with target groups 4
1.3.0 Identification of sources of information 5
1.3.1 Secondary Sources 5
1.3.2 Primary Sources 5
1.4 Analyses of information for developing relationship with the targeted group 6
Word count – 748
Task 2
Communicating with customer group
2.0 Executive summary 8
2.1 The targeted customer group 8
2.2.0 Tools for communication about new product 9
2.2.1 Direct marketing 9
2.2.2 Sales promotions 9
2.2.3 Personal selling 9
2.2.4 Advertising 9
2.3.0 Recommendations for direct marketing campaign 10
2.3.1 E-mail 10
2.3.2 SMS 11
2.3.3 Promotional literature 11
2.3.4 In-store booth 11
2.4 Measurement of the success of TFSA direct marketing 11
Word count - 869
Task 3
Customer service and maintain relationships
3.0 Executive summary 12
Understanding Customer Relationships
Membership Number: 14298169
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3.1 Importance of good customer service 12
3.2.0 Feedback collecting 13
3.2.1 Questionnaire 13
3.2.2 Suggestion boxes 13
3.2.3 Focus groups 13
3.2.4 Facebook 13
3.3.0 Recommendations for customer care programme 13
3.3.1 Identification of the needs and expectations 14
3.3.2 Establishing a mission statement 14
3.3.3 The setting of service-level standards 14
3.3.4 Establishment of a management process 15
3.3.5 Communication of the management process internally 15
3.3.6 Establishment of a complaints system 15
3.3.7 Development of control system 15
Word count – 873
Task 4
Communication skills
4.0 Importance of good communication in TFSA 16
4.1.0 Improvement of communication with colleagues 16
4.1.1 Strong communication skills 16
4.1.2 Weak communication skills 17
4.2 Adaptation of communication approach in Face to Face discussions 17
Word count – 640
Appendix 1 - Organization summary 19
Appendix 2 – Questionnaire 20
Reference 22
Understanding Customer Relationships
Membership Number: 14298169
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TASK ONE
Understanding customers and identifying their needs
To: Harold Gordon - Marketing Manager
From: Jane Doe - Marketing Assistant
Date: 22nd January, 20x3
1.0 Executive summary
In an increasingly competitive skin care market, such as the one in which The Face Shop Armenia
(TFSA) competes, it is of paramount importance that an organization develops better relationships
with its customers instead of focusing on one-off transactions.
As a result, this report focuses on how TFSA can improve and develop relationships with its
customers through:
x Identification of two customer groups for TFSA.
x Information which can be collected by TFSA about its customer groups in development
of closer relationship with them.
x Identification of sources of information that would improve TFSA’s knowledge about the
chosen customer group.
x Analyses of how this information can help TFSA to develop its relationship with one of
groups.
1.1 The two key customer groups for the organization
The two key customer groups identified for TFSA are -:
A) Fashionistas
x Young women between twenty years and thirty years of socio-economic group
A, B, C1.
x Beauty conscious.
x Continually seeking products which will enhance their appearance.
B) Middle Aged Women
x Women forty years and older in socio-economic groups A, B, C1, C2.
x Concerned about skin care and maintaining their youthful look.
1.2 Information required for better and closer relationship with target groups
Key information which can be gathered by TFSA to use the same in developing a closer
relationship with its customers are -:
x Demographic information such as age, occupation.
x Psychographic information such as lifestyle and personality style.
x Socio-economic characteristics.
x How competitors interaction with target audience.
x How long have they been a customer of TFSA?
x What product/s do they purchase?
x How frequently do they purchase?
Understanding Customer Relationships
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x How can TFSA communicate with them?
x Are they satisfied with the products bought?
x Any suggestions and complaints in the store?
x What is their perception of the TFSA brand?
x Is buying decision self-made or through word-of-mouth or opinion moderation?
x Which other brand or products do they use for skin care?
x How did they hear about TFSA?
1.3.0 Identification of sources of information that would improve TFSA’s knowledge about
the chosen customer group.
The customer segment chosen to focus on for this part of the report is that of Middle Aged
Women (Segment B). The information sources which can provide the necessary information can
be categorized as secondary information (internal and external sources) which are information
previously gathered, are faster and cheaper to acquire and primary information which consists of
research done for the specific purpose.
1.3.1 Secondary Sources
As an internal source for TFSA could be:
x TFSA’ customer database – walk-in survey conducted in-store.
x Sales reports – products purchased by the target group and frequency of visits to store.
x Previous reports of marketing research conducted.
x Customer complaints/suggestions reports.
External sources of information for TFSA could be:
x Economic trends (personal disposal income, consumer expenditure)
x Census of Production (employment, wages and salaries, capital expenditure etc.)
x Family expenditure
1.3.2 Primary Sources
x Personal observations.
x Customer feedback forms located in-store.
x Online surveys.
x Focus groups.
x Personal interviews.
x Mystery shoppers.
The collected information will help TFSA to understand those aspects which will impact on their
customers’ decision making.
Understanding Customer Relationships
Membership Number: 14298169
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1.4 Analyses of how this information can help TFSA to develop its relationship with targeted
group
“It is 10 times cheaper to keep an existing customer than to acquire a new one” (Harris and Botten,
2008, p109).
This quote emphasizes that for TFSA customer retention has paramount importance. The 1%
improvement in customer retention can increase TFSA value by 5% (Gupta, et al, 2004).
Today customers are more sophisticated and more demanding. Therefore, developing and
maintaining successful relationship with its customer base is one of the biggest challenges for any
organization. Successful relationship management is a kind of valve that pumps a company’s life
blood (CRM magazine, 2010)
The collected information from the above mentioned sources should be collated for the specific
needs of the target group. All concerned department should focus on delivering what customer
expects from TFSA. Improving customer relationship requires creating a commitment to hearing
what our customer needs and expect and making plans that make the process customer friendly.
In seeking to achieve its objective of developing a better relationship with the chosen segment
several tactics can be used by TFSA which are as follows -:
x Contact these customers through direct mail about new products suitable to them.
x Inform target customers about regular promotions via SMS and email messages.
x Development of a loyalty card programme which rewards them with points to be redeemed
as discounts for future purchases.
x Informing the target customers about new trend in skin care.
x Invite them to “Like” TFSA’s Facebook page to be kept informed of new products and
promotions as well as TFSA’s Corporate Social Responsibility initiatives.
x Demonstration of usage in salons.
x In shop consultation tips for target group.
x Seminars by authentic dermatologists.
x Invite target group by using primary and secondary information sources.
x Product exhibition in clubs in which are the members.
x Handling enquiring directly.
By using the information mentioned above, TFSA can successfully move its customers up the
“ladder of loyalty” (Figure 1.1 (Peck et al, 1999) thereby ensuring lifetime customer value. Once
the first purchase is done and the needed information is collected TFSA have to concentrate on
building relationship with its target group. Relationship between TFSA and its customers will
enable to enhance customer satisfaction and understand better the needs of customers and help
them to receive what they want.
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Membership Number: 14298169
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Figure 1.1 Ladder of loyalty (Peck et al, 1999)
Word count - 748
PARTNER
ADVOCATE
SUPPORTER
CLIENT
PURCHASER
PROSPECT
Understanding Customer Relationships
Membership Number: 14298169
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TASK TWO
Communicating with customer group
Date: 2nd February, 20x3
Author: Jane Doe - Marketing Assistant
Audience: Marketing Manager and senior management team
Purpose: Ensuring effective communication with TFSA’s “Middle Aged Women” target group
2.0 Executive summary
As a leader in innovation in the skin care industry, TFSA has formulated, produced and launched a
new non-traditional anti-wrinkling cream aimed at the “Middle Aged Women” segment and this
discussion paper details how the company will communicate effectively to this segment on the
new product.
It covers the following topics:
x Target segment for TFSA.
x Tools of communication about new product.
x Recommendations for direct marketing campaign for launching new product.
x Measurement of the success of TFSA direct marketing campaign.
Background Information – Discussion paper relates to launch of new anti-wrinkling product.
2.1. The targeted customer group
The customer group chosen to be targeted for the purpose of this discussion paper is “Segment B”
middle aged women.
Justifications for choosing this target -:
x Belong to high-income group.
x Independent and decision makers.
x Propensity to spend is higher.
The Customer Profitability Matrix (Christopher and Peck, 2003) can be used to show that the
target segment falls under the “Protect” quadrant, it means that they are more profitable and
should be retained by TFSA.
Figure 2.1 Customer profitability matrix (Christopher and Peck, 2003)
Protect Cost engineer
Build Danger zone
Cost of Service High
Net sales
value of
customer
account
High
Low
Low
Understanding Customer Relationships
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2.2.0 Tools for communication about new product
For TFSA it would be better to use below-the-line media more aggressively to reach its target
group. These media are:
x Direct marketing
x Sales promotions
x Personal selling
Above-the-line media which can be used by TFSA
x Advertising
2.2.1 Direct marketing
Using its own database, communication directly through e-mail and text massaging will be
effective. The main advantage of e-mail and SMS is its cost-effectiveness, fast, personal, targeted
and environmentally friendly. The disadvantages are non-mail delivery system, late response,
loading, communications preference and recourse intensive (Chaffey and Smith, 2008).
2.2.2 Sales promotions
The key objective of TFSA for launched product is to boost sales and the number of purchases in a
short period of time. Advantage of sales promotions is that, it motivates customers and prospects
to buy the product in short time as these promotions run for a limited periods. Tactics to be
adopted could be:
- Coupons
- Sampling
- Road show exhibition
The disadvantage could be high up-front costs.
2.2.3 Personal selling
If the target market is not a major consumer group but a more limited purchasing group for such
product, direct personal communication about the product features can be efficient and very
effective. It involves two-way interactions and immediate response from the both sides. It could be
disadvantageous because it expects customers to reach the product not vise-versa.
2.2.4 Advertising
As the target segment is not the “mass-consumer”, using focused advertising media would be the
best strategy for TFSA. The cost-effective media to reach the target segment would be:
x Facebook
x Informative websites
x Discount websites
x E-commerce
Using above tools, the information will not scatter to non-target audience.
Understanding Customer Relationships
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Table 2.1 Advantages and disadvantages of various medium
2.3.0 Recommendations for direct marketing campaign
Effective direct marketing campaign can transcend a simple product into a spectacular, interesting,
got-to-have-it product (Westphal, 1996). The main objective for the campaign is to reach 10.000
target customers within 3 months and gain the buy-in of 60 percent of these customers.
Approaches recommended are:
- E-mail.
- SMS.
- Handing out promotional literature with samples.
- In-store booth
2.3.1 E-mail
E-mail should be personalized, using the data collected with personalized subject line and targeted
internal content. E-mail could be made segment based by using data on purchasing habits and
preferences. E-mail drip campaign for target segment with different content based on need would
be very effective way to introduce new product. Call to action or a promotional discount could
also be included for inducement to buy. This will get fast response from its target segment, it will
also allow measuring its success. It is cost effective and gives more audio – visual affect same as
TV.
Medium Advantages Disadvantages
Facebook
More personal Less reach
Targeted Short term
Allows engagement
Enhanced reach because of
the viral effect
Cost-effective
Informative
websites
More information about the
launched product
Less reach
Restrictions on creative ad
E-commerce Easy availability No-personalized service
TV
Very high reach
Strong recall because of
audio-visual affect
Not cost-effective
Radio Very high reach
Cost-effective
Not-focused massage for the target group
Billboard Good visual effect
Good recall
Limited reach
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2.3.2 SMS
Text message marketing is “short and crisp” and can communicate the launch of the product in a
short period of time to maximum number of audience. Since 100% of TFSA target audience
carries mobile phones, the communication will reach at anytime and anywhere, unlike other
media. SMS marketing is geographically monitorable. The cost-effectiveness and fast reachability
makes this tool very effective in Armenia and as the list of contact numbers increases it is
becoming much cheaper. A discount offer can be included.
2.3.3 Promotional literature
When TFSA is launching new product range leaflets are the most recommendable way. Giving
leaflets with the samples of that product will make TFSA direct marketing campaign more
effective. The new prospects can get the information about the launched product and use the
sample to see the effectiveness. Once satisfied with the usage, these prospects will turn into the
purchasers. Redemption discount coupon also can be included in the leaflet.
2.3.4 In-store booth
In-store booth having a professional consultant will inform the walk-in customers about the
product features-benefit and the solution to their requirement. Face to face consultation by a
professional dermatologist will enable customers to test the product and satisfy any queries
pertaining to the new product. This tool derives a maximum satisfaction level for the customers.
2.4 Measurement of the success of TFSA direct marketing campaign
Measuring the success of direct marketing campaign TFSA should take into consideration the
number of response to the specific communication tool, its conversion into customers, volume of
orders and repurchases.
Table 2.2 Direct Marketing Campaign success measurement
Tools Target Actual Coupons redeemed Success %
E-mail 20.000
SMS 20.000
Promotional literature 5000
In-store booth 1500
How many new
customers walk-in
Word count – 869
Understanding Customer Relationships
Membership Number: 14298169
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TASK THREE
Customer service and Maintaining relationship
To: Harold Gordon - Marketing Manager
From: Jane Doe - Marketing Assistant
Date: 21st
January, 20x3
3.0 Executive summary
Purpose of this report is TFSA’s customer service and maintaining its relationship with customers.
It focuses on:
- Importance of good customer service in improving relationship with them.
- Method of gathering feedback from customers who use TFSA product.
- Recommendations for customer care programme to insure that customers receive the
expected service from TFSA.
3.1 Importance of good customer service
“Excellent customer service is the ability of an organization to constantly and consistently exceed
customers’ expectations.” (ACA group, p1). The recognition of the fact that all departments have
great impact on the customer service will enable whole organization to concentrate only on
customers.
Customer Interaction + Customer Intelligence = Customer Relationship Management
Figure 3.1 Customer Relationship Management cycle (Six Sigma CRM, 2004)
Satisfied customers are more likely to return back to buy again and over the time they become
loyal (Lancaster et al, 2002).
Marketing
Sales
Commerce
Customer
support
Choose
Cross-sell
Purchase
Deliver
Automation
Collaboration
Communication Personalization
Customer
intelligence
Understanding Customer Relationships
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3.2.0 Feedback collecting
The customers’ feedback will enable TFSA to understand the problems which may harm
subsequent activities. A successful customer-focused culture is one that actively listens to the
voice of the customer (Mclean-Conner, 2006). For this reason collecting feedback is needed for
TFSA. The methods which can be used are as below:
x Questionnaires
x Suggestion boxes
x Focus groups
x Facebook
3.2.1 Questionnaire
Taking into consideration that people may not like to spend much time on survey questionnaire for
TFSA could include mostly close-ended questions rather than open-ended (See Appendix 2).
Moreover, as an encouragement for customer to fill the questionnaire TFSA can give something
back which can be special discount, samples or gifts. Questionnaire can be conducted face to face,
e-mail and by telephone.
3.2.2 Suggestion boxes
This kind of approach to collect feedback is likely to be preferred by both TFSA and its
customers, since it is anonymous and gives chance to do honest suggestions and criticism. In fact
satisfied customers will inform 5 people about their satisfaction at the same time as dissatisfied
customers will inform 9 people of their complaint (Nowacki, 2003). Suggestion boxes for TFSA
can be done in showroom where after the purchase customers will make feedback on the service
which they received for buying new launched anti-wrinkling product. This will help TFSA to
understand where exactly do they need to improve.
3.2.3 Focus groups
“Focus groups work particularly well to determine the perceptions, feelings, and thinking of
people about issues, products, services or opportunities” (Richard et al, 2000, p12). While
planning focus group study TFSA should always consider its purpose and make questions more
fundamental, understand the problems which are related to the customer service.
To achieve the desired results TFSA can conduct focus group survey twice per month and each
group consisting of 10 people from already segmented target group B., moderator’s interview
guide have to include combination of open-ended and close-ended questions to acquire useful
feedback on service. The question route has to be carefully structured, contain distinct topics so
the process of study will be efficient.
3.2.4 Facebook
Through engagement with Facebook fans among target group the feedback on effectiveness, usage
of new launched product can be gathered.
3.3.0 Recommendations for customer care programme
The main goal of customer care program is to bring customers up the ladder of loyalty (Figure
1.1). The steps which are recommended for TFSA are as presented in Figure 3.2.
Understanding Customer Relationships
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Figure 3.2 Design of TFSA’s customer care program (Harris and Botten, 2008)
3.3.1 Identification of the needs and expectations
Encouraging customers to give feedback on TFSA service and new launched product enables
TFSA to collect information about their customers and understand their needs and perceptions.
The qualitative and quantitative data received from feedback collection will provide sufficient
information about customers’ real needs and satisfaction, dissatisfaction of the service level which
they received.
3.3.2 Establishing a mission statement
The recommended mission statement could be – “We value our customers and guarantee 100%
satisfaction by our product and service”.
3.3.3 The setting of service-level standards
The level of service standards for TFSA can be beauty consultants’:
x Behaviour
x Friendly reception
x Helpful
x Knowledgeable
x Responsive
Identification of the needs and expectations
Establishing a mission statement of TFSA
The setting of service-level standards by TFSA
Establishment of a management process by TFSA
Communication of the management process
internally by TFSA
Establishment of a complaints system
Development of control systems by TFSA
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x Clean uniforms for good appearance
While designing the service standards TFSA need to note also its feedback results and customers’
complaints since it will help to make the standards according to customers’ requirements.
3.3.4 Establishment of a management process
Management should establish process where:
- Tasks and responsibilities of employees are clear.
- Makes it easy for customer to buy the product.
- Establish clear return and refund policy that satisfies customers’ requirement
- Make dependable supply and delivery chain.
3.3.5 Communication of the management process internally
Internal marketing training workshop should be held twice a month to inform the staff about
actual management process and get feedback from staff about for a new improvement or changes.
3.3.6 Establishment of a complaints system
Complaint should be treated as a profit generating tool not as a negative feedback. Immediate
response to any complaint to the satisfaction of the customer will enable TFSA to correct the
mistakes and improve its customer care program. For this following points should be taken into
account:
- Customer is always right even if he is wrong.
- Attend complains positively empathising with customer.
- Appreciation of customers’ complaints.
- Thanking them for bringing any deficiency to our notice.
3.3.7 Development of control system
Management should develop a control system where periodical assessment is implemented to see
the success of its customer care program and improve any deficiency noticed in the program. It
should be regular process.
Word count – 873
Understanding Customer Relationships
Membership Number: 14298169
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TASK FOUR
Communication skills
The points mentioned below will be on cue cards and will be discussed thoroughly with TFSA
Marketing Manager during the time of appraisal meeting.
4.0 Importance of good communication in TFSA
From a professionally organized communication both employees and organization will benefit.
Internal customers are those people who need attention and want a company to listen to their voice
as well. When communication process is being done well employees will:
x Clearly understand TFSA’s objectives.
x Trust TFSA company.
x Have positive emotions toward TFSA.
x Become self-developed.
x Be motivated.
x Be loyal.
x Enable sharing ideas.
Bill Quirke states that (2008, p63) “Internal communication is vital to success and when done well
can provide strategic advantage through aligning employee efforts, sharing knowledge and
engaging their passion”.
4.1.0 Improvement of communication with colleagues
Communication skills being used for communicating with TFSA’s colleagues are as follows:
- Formal and informal meeting
- E-mails and Telephone
4.1.1 Strong communication skills
Informal meeting are effective for creating excellent personal relationship with colleagues and
share with further ideas and aims. The potency of verbal communication is usage of professional
manner, honesty, being objective and also positive since this approach will make them more
optimistic.
E-mails as a technique for internal communication is well built and enables reaching colleagues in
order to ask them about ideas of specific subjects which are being discussed in marketing
department and fresh thoughts are needed. Written type of communication enables me to receive
more from my colleagues because one is free to express when time is appropriate and they are free
to write. Good answers from staff are expected when the communication in written form is well
organized as it is in TFSA.
Telephone covers short term communication and it involves informing colleagues about special
meetings and getting immediate respond for an occurred question.
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4.1.2 Weak communication skills
Formal meeting are must in TFSA and improvement of these skills will help me to be productive.
Organizing formal meeting is weak since there are certain aspects to be taken into consideration and
to be worked on such as:
x Preparing beforehand.
x Paying attention on colleagues’ emotions.
x Encouraging everybody to respond.
x Be clearer.
x Be specific and time-bound.
x Ask feedback and questions.
x Make it have an impact on team building activities and training exercises (Hume, 2007).
4.2 Adaptation of communication approach in Face to Face discussions
Since TFSA organization structure (See Appendix 1) is very lean and proximity to other
departments is easy and fast, it is better to concentrate on face to face communication. As it is
found, inflection and body language account for more than 80 per cent of the message what our
brains interpret, and the rest are the words. Personal touch of face to face quickly builds bond that
sets foundation for trust and ultimately lasting inter-organizational relationship.
While using this method for major part of communication, it is needed to understand its benefits
and effectiveness and adapt style suitable for the situation and persons involved for reaching the
objective.
Since it takes place in real time, it is important to concentrate on both verbal and non-verbal
expressions, such as eyes movements, smiles, body language, intonations of others, by which it
can be known whether a person is serious, interested, telling the truth, is honest or not. When
meeting face to face, detailed information can be disseminated, facts can be checked, issues can be
identified and addressed then and there.
Communication needs to be focused on specific issues, in a manner where can be easily
comprehended, not much guess work should be involved. Not to over communicate with
colleagues, not to bombard staff with irrelevant communication. Encouraging staff to give ideas to
gain constructive feedback from people on the shop floor will help to build strong relationship
between all employees.
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Figure 4.1 The effectiveness of Face to Face Communication (Amber, 2002)
Word count – 640
Communication
Effectiveness
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Appendix One
Organization summary
The organization selected for the assignment is The Face Shop Armenia (now referred as TFSA
hence- forth).
Organization name - The Face Shop Armenia
Turnover - 1.5 mln $ per year
Number of employees – 18
Type – sole-proprietorship
Products supplied – Natural skin care and cosmetic products
Customer base – Distributers and end-users
Type of end-users – from age group 15-55 years old, mostly women
Competitors - Fresh line, L’Occitane, “Green” natural cosmetics, L’Oreal, Estee Lauder
Other relevant information
The Face Shop is a global brand in cosmetic and skin care products, having its presence in more
than 25 countries over the globe with more than 1500 stores worldwide. It enjoys around 30% of
market share in Korea thus being number two brand after Amore Pacific in Korea.
The Face Shop Armenia is the franchise owner of The Face Shop brand and operates in Armenia
as an exclusive distributer in the country.
Organization structure
The Face Shop Korea (HQ)
TFSA
Managing director/owner
Showroom Manager
Beauty
consultant 1
Beauty
consultant 1
Beauty
consultant 1
Logistic Manager
Logistic
assistant 1
Logistic
assistant 2
Sales Manager
Wholesaler 2
Wholesaler 3
Wholesaler 1
Director
Marketing Manager
Social Media
Coordinator
Marketing
assistant
Designer
Training
supervisor
Finance Manager
Accountants assistant HR assistant
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Appendix Two
Questionnaire
Please take a few minutes to complete our customer satisfaction survey. The respond received from you is valued by The
Face Shop Armenia and may have a great impact on further improvement.
Completing this questionnaire you will receive free gift sets of our latest products from The Face Shop. Gift set will be
based on what type of skin you have.
Date _____
N/S ______
Tel./e-mail ___________
A. Select Age 20s-30s 40+
B. Are you member of loyalty programme? Accumulation
White
Silver
Gold
C. How do you like our staff service? A. Excellent
B. Very good
C. Good
D. Needs improvement
D. How do you rate our product range? A. Enough
B. Not enough
C. If not enough what products/range we should bring to service you better?
__________________________________________________________
________________________________________________________________
E. Did you make purchase? A. Yes
Items-___________________
________________________
________________________
B. No
Why-____________________
_________________________
_________________________
F. How do you rate our shop display? A. Excellent
B. Good
C. Average
D. Any suggestions for the
Improvement
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G. Do you think the products which you used from A. Yes, very useful
TFS were useful for your requirement? B. Useful
C. So. So
D. No
H. Would you prefer to make your purchase for your A. Yes
skincare/make up products from TFS? B. No
I. Are you satisfied with the information which we provide? A. Yes
B. So..so
C. No
J. What do you think of pricing of our products? A. ECONOMIC
B. NORMAL
C. EXPENSI
D.VEVERY EXPENSIVE
K. Would you recommend our products to your colleagues or friends? A. Yes
B. No
Why? ____________________
_________________________
L. Any recommendations for service and products?
_____________________________________________________________________________________
Thank you for completing the questionnaire.
Understanding Customer Relationships
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Reference
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edition, Oxford, Elservier, p. 381
Christopher, M. and Peck, H. (2003), Marketing Logistics, Oxford: Butterworth-Heinemann, p.
62.
Harris, D. and Botten, N. (2008) Introductory Certificate in Marketing. United Kingdome,
Butterworth-Heinemann, p. 170, p. 109
Lancaster, G. and Massingham, L (2011), Essentials of marketing, Oxon, Routledge, p. 308
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Mclean-Conner, P. (2006), Customer service: Utility style, USA, Penn Well Corporation, p. 66
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Action, 2nd Edition, England, Gower Publishing Limited, p. 63
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edition, USA, sage Publications, p. 12
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Gupa et al (2004), Valuing Customers, Journal of Marketing Research, Vol41(1), 7-18.
Westphal, L. (1996), Seven ways to improve your direct response advertising, Direct marketing
journal, Vol4, p2.
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ACA group, customer service training company, available from:
http://www.visitrichmond.org/pdfs/FrontlinePacket.pdf [Accessed on 25 February 2013]
Amber, S. Original Diagram (2002), Alistair Cockburn, available from
http://www.agilemodeling.com/essays/communication.htm [Accessed on 27 February 2013]
CRM magazine (2010), What is CRM, [online], available from:
http://www.destinationcrm.com/Articles/CRM-News/Daily-News/What-Is-CRM-46033.aspx
[Accessed on 27 February 2013]
Hume, J. (2007) Internal communication Toolkit, CIVICUS, available from:
http://www.civicus.org/new/media/CIVICUSInternalCommunicationToolkit.pdf [Accessed on 23
February] p. 11
Six Sigma CRM (2004) Customer relationship management (CRM), available from: http://six-
sigma-crm.com/customer_relationship_management.html [Accessed on 23 February 2013]

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Assignment On Understanding Customer Relationships For TheFaceShop (The Chartered Institute Of Marketing)

  • 1. Understanding Customer Relationships Membership Number: 14298169 1 ‘I confirm that in forwarding this assessment for marking, I understand and have applied the CIM policies relating to word count, plagiarism and collusion for all tasks. This assessment is the result of my own independent work except where otherwise stated. Other sources are acknowledged in the body of the text, a bibliography has been appended and Harvard referencing has been used. I have not shared my work with other candidates. I further confirm that I have submitted an electronic copy of this assessment to CIM in accordance with regulations.’ Word Count - 3,130
  • 2. Understanding Customer Relationships Membership Number: 14298169 2 TABLE OF CONTENTS Task 1 Understanding customers and identifying their needs 1.0 Executive summary 4 1.1 The two key customer groups for the organization 4 1.2 Information required or better and closer relationship with target groups 4 1.3.0 Identification of sources of information 5 1.3.1 Secondary Sources 5 1.3.2 Primary Sources 5 1.4 Analyses of information for developing relationship with the targeted group 6 Word count – 748 Task 2 Communicating with customer group 2.0 Executive summary 8 2.1 The targeted customer group 8 2.2.0 Tools for communication about new product 9 2.2.1 Direct marketing 9 2.2.2 Sales promotions 9 2.2.3 Personal selling 9 2.2.4 Advertising 9 2.3.0 Recommendations for direct marketing campaign 10 2.3.1 E-mail 10 2.3.2 SMS 11 2.3.3 Promotional literature 11 2.3.4 In-store booth 11 2.4 Measurement of the success of TFSA direct marketing 11 Word count - 869 Task 3 Customer service and maintain relationships 3.0 Executive summary 12
  • 3. Understanding Customer Relationships Membership Number: 14298169 3 3.1 Importance of good customer service 12 3.2.0 Feedback collecting 13 3.2.1 Questionnaire 13 3.2.2 Suggestion boxes 13 3.2.3 Focus groups 13 3.2.4 Facebook 13 3.3.0 Recommendations for customer care programme 13 3.3.1 Identification of the needs and expectations 14 3.3.2 Establishing a mission statement 14 3.3.3 The setting of service-level standards 14 3.3.4 Establishment of a management process 15 3.3.5 Communication of the management process internally 15 3.3.6 Establishment of a complaints system 15 3.3.7 Development of control system 15 Word count – 873 Task 4 Communication skills 4.0 Importance of good communication in TFSA 16 4.1.0 Improvement of communication with colleagues 16 4.1.1 Strong communication skills 16 4.1.2 Weak communication skills 17 4.2 Adaptation of communication approach in Face to Face discussions 17 Word count – 640 Appendix 1 - Organization summary 19 Appendix 2 – Questionnaire 20 Reference 22
  • 4. Understanding Customer Relationships Membership Number: 14298169 4 TASK ONE Understanding customers and identifying their needs To: Harold Gordon - Marketing Manager From: Jane Doe - Marketing Assistant Date: 22nd January, 20x3 1.0 Executive summary In an increasingly competitive skin care market, such as the one in which The Face Shop Armenia (TFSA) competes, it is of paramount importance that an organization develops better relationships with its customers instead of focusing on one-off transactions. As a result, this report focuses on how TFSA can improve and develop relationships with its customers through: x Identification of two customer groups for TFSA. x Information which can be collected by TFSA about its customer groups in development of closer relationship with them. x Identification of sources of information that would improve TFSA’s knowledge about the chosen customer group. x Analyses of how this information can help TFSA to develop its relationship with one of groups. 1.1 The two key customer groups for the organization The two key customer groups identified for TFSA are -: A) Fashionistas x Young women between twenty years and thirty years of socio-economic group A, B, C1. x Beauty conscious. x Continually seeking products which will enhance their appearance. B) Middle Aged Women x Women forty years and older in socio-economic groups A, B, C1, C2. x Concerned about skin care and maintaining their youthful look. 1.2 Information required for better and closer relationship with target groups Key information which can be gathered by TFSA to use the same in developing a closer relationship with its customers are -: x Demographic information such as age, occupation. x Psychographic information such as lifestyle and personality style. x Socio-economic characteristics. x How competitors interaction with target audience. x How long have they been a customer of TFSA? x What product/s do they purchase? x How frequently do they purchase?
  • 5. Understanding Customer Relationships Membership Number: 14298169 5 x How can TFSA communicate with them? x Are they satisfied with the products bought? x Any suggestions and complaints in the store? x What is their perception of the TFSA brand? x Is buying decision self-made or through word-of-mouth or opinion moderation? x Which other brand or products do they use for skin care? x How did they hear about TFSA? 1.3.0 Identification of sources of information that would improve TFSA’s knowledge about the chosen customer group. The customer segment chosen to focus on for this part of the report is that of Middle Aged Women (Segment B). The information sources which can provide the necessary information can be categorized as secondary information (internal and external sources) which are information previously gathered, are faster and cheaper to acquire and primary information which consists of research done for the specific purpose. 1.3.1 Secondary Sources As an internal source for TFSA could be: x TFSA’ customer database – walk-in survey conducted in-store. x Sales reports – products purchased by the target group and frequency of visits to store. x Previous reports of marketing research conducted. x Customer complaints/suggestions reports. External sources of information for TFSA could be: x Economic trends (personal disposal income, consumer expenditure) x Census of Production (employment, wages and salaries, capital expenditure etc.) x Family expenditure 1.3.2 Primary Sources x Personal observations. x Customer feedback forms located in-store. x Online surveys. x Focus groups. x Personal interviews. x Mystery shoppers. The collected information will help TFSA to understand those aspects which will impact on their customers’ decision making.
  • 6. Understanding Customer Relationships Membership Number: 14298169 6 1.4 Analyses of how this information can help TFSA to develop its relationship with targeted group “It is 10 times cheaper to keep an existing customer than to acquire a new one” (Harris and Botten, 2008, p109). This quote emphasizes that for TFSA customer retention has paramount importance. The 1% improvement in customer retention can increase TFSA value by 5% (Gupta, et al, 2004). Today customers are more sophisticated and more demanding. Therefore, developing and maintaining successful relationship with its customer base is one of the biggest challenges for any organization. Successful relationship management is a kind of valve that pumps a company’s life blood (CRM magazine, 2010) The collected information from the above mentioned sources should be collated for the specific needs of the target group. All concerned department should focus on delivering what customer expects from TFSA. Improving customer relationship requires creating a commitment to hearing what our customer needs and expect and making plans that make the process customer friendly. In seeking to achieve its objective of developing a better relationship with the chosen segment several tactics can be used by TFSA which are as follows -: x Contact these customers through direct mail about new products suitable to them. x Inform target customers about regular promotions via SMS and email messages. x Development of a loyalty card programme which rewards them with points to be redeemed as discounts for future purchases. x Informing the target customers about new trend in skin care. x Invite them to “Like” TFSA’s Facebook page to be kept informed of new products and promotions as well as TFSA’s Corporate Social Responsibility initiatives. x Demonstration of usage in salons. x In shop consultation tips for target group. x Seminars by authentic dermatologists. x Invite target group by using primary and secondary information sources. x Product exhibition in clubs in which are the members. x Handling enquiring directly. By using the information mentioned above, TFSA can successfully move its customers up the “ladder of loyalty” (Figure 1.1 (Peck et al, 1999) thereby ensuring lifetime customer value. Once the first purchase is done and the needed information is collected TFSA have to concentrate on building relationship with its target group. Relationship between TFSA and its customers will enable to enhance customer satisfaction and understand better the needs of customers and help them to receive what they want.
  • 7. Understanding Customer Relationships Membership Number: 14298169 7 Figure 1.1 Ladder of loyalty (Peck et al, 1999) Word count - 748 PARTNER ADVOCATE SUPPORTER CLIENT PURCHASER PROSPECT
  • 8. Understanding Customer Relationships Membership Number: 14298169 8 TASK TWO Communicating with customer group Date: 2nd February, 20x3 Author: Jane Doe - Marketing Assistant Audience: Marketing Manager and senior management team Purpose: Ensuring effective communication with TFSA’s “Middle Aged Women” target group 2.0 Executive summary As a leader in innovation in the skin care industry, TFSA has formulated, produced and launched a new non-traditional anti-wrinkling cream aimed at the “Middle Aged Women” segment and this discussion paper details how the company will communicate effectively to this segment on the new product. It covers the following topics: x Target segment for TFSA. x Tools of communication about new product. x Recommendations for direct marketing campaign for launching new product. x Measurement of the success of TFSA direct marketing campaign. Background Information – Discussion paper relates to launch of new anti-wrinkling product. 2.1. The targeted customer group The customer group chosen to be targeted for the purpose of this discussion paper is “Segment B” middle aged women. Justifications for choosing this target -: x Belong to high-income group. x Independent and decision makers. x Propensity to spend is higher. The Customer Profitability Matrix (Christopher and Peck, 2003) can be used to show that the target segment falls under the “Protect” quadrant, it means that they are more profitable and should be retained by TFSA. Figure 2.1 Customer profitability matrix (Christopher and Peck, 2003) Protect Cost engineer Build Danger zone Cost of Service High Net sales value of customer account High Low Low
  • 9. Understanding Customer Relationships Membership Number: 14298169 9 2.2.0 Tools for communication about new product For TFSA it would be better to use below-the-line media more aggressively to reach its target group. These media are: x Direct marketing x Sales promotions x Personal selling Above-the-line media which can be used by TFSA x Advertising 2.2.1 Direct marketing Using its own database, communication directly through e-mail and text massaging will be effective. The main advantage of e-mail and SMS is its cost-effectiveness, fast, personal, targeted and environmentally friendly. The disadvantages are non-mail delivery system, late response, loading, communications preference and recourse intensive (Chaffey and Smith, 2008). 2.2.2 Sales promotions The key objective of TFSA for launched product is to boost sales and the number of purchases in a short period of time. Advantage of sales promotions is that, it motivates customers and prospects to buy the product in short time as these promotions run for a limited periods. Tactics to be adopted could be: - Coupons - Sampling - Road show exhibition The disadvantage could be high up-front costs. 2.2.3 Personal selling If the target market is not a major consumer group but a more limited purchasing group for such product, direct personal communication about the product features can be efficient and very effective. It involves two-way interactions and immediate response from the both sides. It could be disadvantageous because it expects customers to reach the product not vise-versa. 2.2.4 Advertising As the target segment is not the “mass-consumer”, using focused advertising media would be the best strategy for TFSA. The cost-effective media to reach the target segment would be: x Facebook x Informative websites x Discount websites x E-commerce Using above tools, the information will not scatter to non-target audience.
  • 10. Understanding Customer Relationships Membership Number: 14298169 10 Table 2.1 Advantages and disadvantages of various medium 2.3.0 Recommendations for direct marketing campaign Effective direct marketing campaign can transcend a simple product into a spectacular, interesting, got-to-have-it product (Westphal, 1996). The main objective for the campaign is to reach 10.000 target customers within 3 months and gain the buy-in of 60 percent of these customers. Approaches recommended are: - E-mail. - SMS. - Handing out promotional literature with samples. - In-store booth 2.3.1 E-mail E-mail should be personalized, using the data collected with personalized subject line and targeted internal content. E-mail could be made segment based by using data on purchasing habits and preferences. E-mail drip campaign for target segment with different content based on need would be very effective way to introduce new product. Call to action or a promotional discount could also be included for inducement to buy. This will get fast response from its target segment, it will also allow measuring its success. It is cost effective and gives more audio – visual affect same as TV. Medium Advantages Disadvantages Facebook More personal Less reach Targeted Short term Allows engagement Enhanced reach because of the viral effect Cost-effective Informative websites More information about the launched product Less reach Restrictions on creative ad E-commerce Easy availability No-personalized service TV Very high reach Strong recall because of audio-visual affect Not cost-effective Radio Very high reach Cost-effective Not-focused massage for the target group Billboard Good visual effect Good recall Limited reach
  • 11. Understanding Customer Relationships Membership Number: 14298169 11 2.3.2 SMS Text message marketing is “short and crisp” and can communicate the launch of the product in a short period of time to maximum number of audience. Since 100% of TFSA target audience carries mobile phones, the communication will reach at anytime and anywhere, unlike other media. SMS marketing is geographically monitorable. The cost-effectiveness and fast reachability makes this tool very effective in Armenia and as the list of contact numbers increases it is becoming much cheaper. A discount offer can be included. 2.3.3 Promotional literature When TFSA is launching new product range leaflets are the most recommendable way. Giving leaflets with the samples of that product will make TFSA direct marketing campaign more effective. The new prospects can get the information about the launched product and use the sample to see the effectiveness. Once satisfied with the usage, these prospects will turn into the purchasers. Redemption discount coupon also can be included in the leaflet. 2.3.4 In-store booth In-store booth having a professional consultant will inform the walk-in customers about the product features-benefit and the solution to their requirement. Face to face consultation by a professional dermatologist will enable customers to test the product and satisfy any queries pertaining to the new product. This tool derives a maximum satisfaction level for the customers. 2.4 Measurement of the success of TFSA direct marketing campaign Measuring the success of direct marketing campaign TFSA should take into consideration the number of response to the specific communication tool, its conversion into customers, volume of orders and repurchases. Table 2.2 Direct Marketing Campaign success measurement Tools Target Actual Coupons redeemed Success % E-mail 20.000 SMS 20.000 Promotional literature 5000 In-store booth 1500 How many new customers walk-in Word count – 869
  • 12. Understanding Customer Relationships Membership Number: 14298169 12 TASK THREE Customer service and Maintaining relationship To: Harold Gordon - Marketing Manager From: Jane Doe - Marketing Assistant Date: 21st January, 20x3 3.0 Executive summary Purpose of this report is TFSA’s customer service and maintaining its relationship with customers. It focuses on: - Importance of good customer service in improving relationship with them. - Method of gathering feedback from customers who use TFSA product. - Recommendations for customer care programme to insure that customers receive the expected service from TFSA. 3.1 Importance of good customer service “Excellent customer service is the ability of an organization to constantly and consistently exceed customers’ expectations.” (ACA group, p1). The recognition of the fact that all departments have great impact on the customer service will enable whole organization to concentrate only on customers. Customer Interaction + Customer Intelligence = Customer Relationship Management Figure 3.1 Customer Relationship Management cycle (Six Sigma CRM, 2004) Satisfied customers are more likely to return back to buy again and over the time they become loyal (Lancaster et al, 2002). Marketing Sales Commerce Customer support Choose Cross-sell Purchase Deliver Automation Collaboration Communication Personalization Customer intelligence
  • 13. Understanding Customer Relationships Membership Number: 14298169 13 3.2.0 Feedback collecting The customers’ feedback will enable TFSA to understand the problems which may harm subsequent activities. A successful customer-focused culture is one that actively listens to the voice of the customer (Mclean-Conner, 2006). For this reason collecting feedback is needed for TFSA. The methods which can be used are as below: x Questionnaires x Suggestion boxes x Focus groups x Facebook 3.2.1 Questionnaire Taking into consideration that people may not like to spend much time on survey questionnaire for TFSA could include mostly close-ended questions rather than open-ended (See Appendix 2). Moreover, as an encouragement for customer to fill the questionnaire TFSA can give something back which can be special discount, samples or gifts. Questionnaire can be conducted face to face, e-mail and by telephone. 3.2.2 Suggestion boxes This kind of approach to collect feedback is likely to be preferred by both TFSA and its customers, since it is anonymous and gives chance to do honest suggestions and criticism. In fact satisfied customers will inform 5 people about their satisfaction at the same time as dissatisfied customers will inform 9 people of their complaint (Nowacki, 2003). Suggestion boxes for TFSA can be done in showroom where after the purchase customers will make feedback on the service which they received for buying new launched anti-wrinkling product. This will help TFSA to understand where exactly do they need to improve. 3.2.3 Focus groups “Focus groups work particularly well to determine the perceptions, feelings, and thinking of people about issues, products, services or opportunities” (Richard et al, 2000, p12). While planning focus group study TFSA should always consider its purpose and make questions more fundamental, understand the problems which are related to the customer service. To achieve the desired results TFSA can conduct focus group survey twice per month and each group consisting of 10 people from already segmented target group B., moderator’s interview guide have to include combination of open-ended and close-ended questions to acquire useful feedback on service. The question route has to be carefully structured, contain distinct topics so the process of study will be efficient. 3.2.4 Facebook Through engagement with Facebook fans among target group the feedback on effectiveness, usage of new launched product can be gathered. 3.3.0 Recommendations for customer care programme The main goal of customer care program is to bring customers up the ladder of loyalty (Figure 1.1). The steps which are recommended for TFSA are as presented in Figure 3.2.
  • 14. Understanding Customer Relationships Membership Number: 14298169 14 Figure 3.2 Design of TFSA’s customer care program (Harris and Botten, 2008) 3.3.1 Identification of the needs and expectations Encouraging customers to give feedback on TFSA service and new launched product enables TFSA to collect information about their customers and understand their needs and perceptions. The qualitative and quantitative data received from feedback collection will provide sufficient information about customers’ real needs and satisfaction, dissatisfaction of the service level which they received. 3.3.2 Establishing a mission statement The recommended mission statement could be – “We value our customers and guarantee 100% satisfaction by our product and service”. 3.3.3 The setting of service-level standards The level of service standards for TFSA can be beauty consultants’: x Behaviour x Friendly reception x Helpful x Knowledgeable x Responsive Identification of the needs and expectations Establishing a mission statement of TFSA The setting of service-level standards by TFSA Establishment of a management process by TFSA Communication of the management process internally by TFSA Establishment of a complaints system Development of control systems by TFSA
  • 15. Understanding Customer Relationships Membership Number: 14298169 15 x Clean uniforms for good appearance While designing the service standards TFSA need to note also its feedback results and customers’ complaints since it will help to make the standards according to customers’ requirements. 3.3.4 Establishment of a management process Management should establish process where: - Tasks and responsibilities of employees are clear. - Makes it easy for customer to buy the product. - Establish clear return and refund policy that satisfies customers’ requirement - Make dependable supply and delivery chain. 3.3.5 Communication of the management process internally Internal marketing training workshop should be held twice a month to inform the staff about actual management process and get feedback from staff about for a new improvement or changes. 3.3.6 Establishment of a complaints system Complaint should be treated as a profit generating tool not as a negative feedback. Immediate response to any complaint to the satisfaction of the customer will enable TFSA to correct the mistakes and improve its customer care program. For this following points should be taken into account: - Customer is always right even if he is wrong. - Attend complains positively empathising with customer. - Appreciation of customers’ complaints. - Thanking them for bringing any deficiency to our notice. 3.3.7 Development of control system Management should develop a control system where periodical assessment is implemented to see the success of its customer care program and improve any deficiency noticed in the program. It should be regular process. Word count – 873
  • 16. Understanding Customer Relationships Membership Number: 14298169 16 TASK FOUR Communication skills The points mentioned below will be on cue cards and will be discussed thoroughly with TFSA Marketing Manager during the time of appraisal meeting. 4.0 Importance of good communication in TFSA From a professionally organized communication both employees and organization will benefit. Internal customers are those people who need attention and want a company to listen to their voice as well. When communication process is being done well employees will: x Clearly understand TFSA’s objectives. x Trust TFSA company. x Have positive emotions toward TFSA. x Become self-developed. x Be motivated. x Be loyal. x Enable sharing ideas. Bill Quirke states that (2008, p63) “Internal communication is vital to success and when done well can provide strategic advantage through aligning employee efforts, sharing knowledge and engaging their passion”. 4.1.0 Improvement of communication with colleagues Communication skills being used for communicating with TFSA’s colleagues are as follows: - Formal and informal meeting - E-mails and Telephone 4.1.1 Strong communication skills Informal meeting are effective for creating excellent personal relationship with colleagues and share with further ideas and aims. The potency of verbal communication is usage of professional manner, honesty, being objective and also positive since this approach will make them more optimistic. E-mails as a technique for internal communication is well built and enables reaching colleagues in order to ask them about ideas of specific subjects which are being discussed in marketing department and fresh thoughts are needed. Written type of communication enables me to receive more from my colleagues because one is free to express when time is appropriate and they are free to write. Good answers from staff are expected when the communication in written form is well organized as it is in TFSA. Telephone covers short term communication and it involves informing colleagues about special meetings and getting immediate respond for an occurred question.
  • 17. Understanding Customer Relationships Membership Number: 14298169 17 4.1.2 Weak communication skills Formal meeting are must in TFSA and improvement of these skills will help me to be productive. Organizing formal meeting is weak since there are certain aspects to be taken into consideration and to be worked on such as: x Preparing beforehand. x Paying attention on colleagues’ emotions. x Encouraging everybody to respond. x Be clearer. x Be specific and time-bound. x Ask feedback and questions. x Make it have an impact on team building activities and training exercises (Hume, 2007). 4.2 Adaptation of communication approach in Face to Face discussions Since TFSA organization structure (See Appendix 1) is very lean and proximity to other departments is easy and fast, it is better to concentrate on face to face communication. As it is found, inflection and body language account for more than 80 per cent of the message what our brains interpret, and the rest are the words. Personal touch of face to face quickly builds bond that sets foundation for trust and ultimately lasting inter-organizational relationship. While using this method for major part of communication, it is needed to understand its benefits and effectiveness and adapt style suitable for the situation and persons involved for reaching the objective. Since it takes place in real time, it is important to concentrate on both verbal and non-verbal expressions, such as eyes movements, smiles, body language, intonations of others, by which it can be known whether a person is serious, interested, telling the truth, is honest or not. When meeting face to face, detailed information can be disseminated, facts can be checked, issues can be identified and addressed then and there. Communication needs to be focused on specific issues, in a manner where can be easily comprehended, not much guess work should be involved. Not to over communicate with colleagues, not to bombard staff with irrelevant communication. Encouraging staff to give ideas to gain constructive feedback from people on the shop floor will help to build strong relationship between all employees.
  • 18. Understanding Customer Relationships Membership Number: 14298169 18 Figure 4.1 The effectiveness of Face to Face Communication (Amber, 2002) Word count – 640 Communication Effectiveness
  • 19. Understanding Customer Relationships Membership Number: 14298169 19 Appendix One Organization summary The organization selected for the assignment is The Face Shop Armenia (now referred as TFSA hence- forth). Organization name - The Face Shop Armenia Turnover - 1.5 mln $ per year Number of employees – 18 Type – sole-proprietorship Products supplied – Natural skin care and cosmetic products Customer base – Distributers and end-users Type of end-users – from age group 15-55 years old, mostly women Competitors - Fresh line, L’Occitane, “Green” natural cosmetics, L’Oreal, Estee Lauder Other relevant information The Face Shop is a global brand in cosmetic and skin care products, having its presence in more than 25 countries over the globe with more than 1500 stores worldwide. It enjoys around 30% of market share in Korea thus being number two brand after Amore Pacific in Korea. The Face Shop Armenia is the franchise owner of The Face Shop brand and operates in Armenia as an exclusive distributer in the country. Organization structure The Face Shop Korea (HQ) TFSA Managing director/owner Showroom Manager Beauty consultant 1 Beauty consultant 1 Beauty consultant 1 Logistic Manager Logistic assistant 1 Logistic assistant 2 Sales Manager Wholesaler 2 Wholesaler 3 Wholesaler 1 Director Marketing Manager Social Media Coordinator Marketing assistant Designer Training supervisor Finance Manager Accountants assistant HR assistant
  • 20. Understanding Customer Relationships Membership Number: 14298169 20 Appendix Two Questionnaire Please take a few minutes to complete our customer satisfaction survey. The respond received from you is valued by The Face Shop Armenia and may have a great impact on further improvement. Completing this questionnaire you will receive free gift sets of our latest products from The Face Shop. Gift set will be based on what type of skin you have. Date _____ N/S ______ Tel./e-mail ___________ A. Select Age 20s-30s 40+ B. Are you member of loyalty programme? Accumulation White Silver Gold C. How do you like our staff service? A. Excellent B. Very good C. Good D. Needs improvement D. How do you rate our product range? A. Enough B. Not enough C. If not enough what products/range we should bring to service you better? __________________________________________________________ ________________________________________________________________ E. Did you make purchase? A. Yes Items-___________________ ________________________ ________________________ B. No Why-____________________ _________________________ _________________________ F. How do you rate our shop display? A. Excellent B. Good C. Average D. Any suggestions for the Improvement
  • 21. Understanding Customer Relationships Membership Number: 14298169 21 G. Do you think the products which you used from A. Yes, very useful TFS were useful for your requirement? B. Useful C. So. So D. No H. Would you prefer to make your purchase for your A. Yes skincare/make up products from TFS? B. No I. Are you satisfied with the information which we provide? A. Yes B. So..so C. No J. What do you think of pricing of our products? A. ECONOMIC B. NORMAL C. EXPENSI D.VEVERY EXPENSIVE K. Would you recommend our products to your colleagues or friends? A. Yes B. No Why? ____________________ _________________________ L. Any recommendations for service and products? _____________________________________________________________________________________ Thank you for completing the questionnaire.
  • 22. Understanding Customer Relationships Membership Number: 14298169 22 Reference Books Chaffey, D. and Smith, PR. (2008) EMarketing Excellence 3rd edition, Oxford, Elservier, p. 381 Christopher, M. and Peck, H. (2003), Marketing Logistics, Oxford: Butterworth-Heinemann, p. 62. Harris, D. and Botten, N. (2008) Introductory Certificate in Marketing. United Kingdome, Butterworth-Heinemann, p. 170, p. 109 Lancaster, G. and Massingham, L (2011), Essentials of marketing, Oxon, Routledge, p. 308 Lancaster, G. et al (2002), Essentials of marketing, 4th edition, McGraw-Hill, Berkshire p. 409 Mclean-Conner, P. (2006), Customer service: Utility style, USA, Penn Well Corporation, p. 66 Nowacki, G. (2003), IMS: Customer Satisfaction, Integrated Management Systems series, united Kingdome, BSI publication, p. 7 Peck, H. et al. (1999), Relationship Marketing, Oxford, Butterworth-Heinemann, p. 45 Quirke, B., (2008) Making the Connections – Using Internal Communication to Turn Strategy into Action, 2nd Edition, England, Gower Publishing Limited, p. 63 Richard, A. et al (2000), Focus groups, 3rd edition, USA, sage Publications, p. 12 Articles Gupa et al (2004), Valuing Customers, Journal of Marketing Research, Vol41(1), 7-18. Westphal, L. (1996), Seven ways to improve your direct response advertising, Direct marketing journal, Vol4, p2. Electronic recourses ACA group, customer service training company, available from: http://www.visitrichmond.org/pdfs/FrontlinePacket.pdf [Accessed on 25 February 2013] Amber, S. Original Diagram (2002), Alistair Cockburn, available from http://www.agilemodeling.com/essays/communication.htm [Accessed on 27 February 2013] CRM magazine (2010), What is CRM, [online], available from: http://www.destinationcrm.com/Articles/CRM-News/Daily-News/What-Is-CRM-46033.aspx [Accessed on 27 February 2013] Hume, J. (2007) Internal communication Toolkit, CIVICUS, available from: http://www.civicus.org/new/media/CIVICUSInternalCommunicationToolkit.pdf [Accessed on 23 February] p. 11 Six Sigma CRM (2004) Customer relationship management (CRM), available from: http://six- sigma-crm.com/customer_relationship_management.html [Accessed on 23 February 2013]