Customer Relationship Management in Banking

Customer Relationship Management in Banking ABSTRACT Today the world is globalized and customers are well educated and well informed. This has increased the competition among the firms and organisations. The competition elevates the customer bargaining power and switching power to choose the best product and service. Therefore customer relationship has become a focus of importance to all the companies in order to retain the customer as well as maximize revenues. Today marketing is no more developing, delivering and selling of goods and services, it is moving towards developing and maintaining long term relationship with customers. Therefore relationship marketing has making its important in all the business sectors so as in financial services. Customers Relationship Management creates the opportunity through which the banks can benefit by developing good relationships with their customers. The aim of the project is to gain a better understanding how the CRM has benefited both the bank as well as its customers. This research also aims to identify how critically CRM has been practiced in Lloyds Banking Group, analysis the data mining process of Lloyds Banking Group, to find out the customer segmentation procedure of the bank to analysis the customer retaining strategy of the bank, to find out how does the bank measure customer life time value and to verify the relationship between the customers and the Lloyds Banking Group. To validate the purpose of the project has addressed to set of questionnaires, one is for Lloyds Banking Groups employees and other is for customers of the bank. The literature review has also help to understand the answer for the research questions. Both the quantitative as well as qualitative data collection techniques have been adopted namely, survey questionnaire and semi-structure interviews. Some data has also collected through interview of Lloy ds employee and a group of their customers. Lloyds use CRM as an effective business strategy to classify the most profitable customers for bank. And accordingly bank gives priorities those customers through individualized marketing, reprising, flexible conclusion building and modify service-all delivered through a variety of sales channels that the bank use. Researcher has found that Lloyds is conducting a campaign management by using data mining task. This campaign helps to make crucial business decisions by exacting suitable, beforehand strange and ultimately logical and actionable awareness from huge databases. Researcher also has suggested suitable recommendations to the bank to improve the CRM practice in Lloyds Banking Group. 1.0 INTRODUCTION This chapter provides the brief introduction of research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the study. 1.1 TOPIC OF THE RESEARCH Customer Relationship Management of Lloyds Banking Group PLC; A Critical Evaluation 1.2 INTRODUCTION TO RESEARCH Peter Drucker said, â€Å"The purpose of a business is to create customers†. Customer Relationship Management can be the single strongest weapon we have as manage to ensure that customers become and remain loyal. Customer Relationship Management (CRM), is an vital division of modern business organization. CRM concern the relation between the organisations along with its consumers. Consumers are the means of support of any business in a universal business with thousands of workforce and a multi-billion earnings, or a single broker with a handful of standard consumers. CRM is the same in principle for both examples. Globalization and technology improvements have pushed companies into hard competition. In this new era organisations are targeting on managing customer relationships, mainly customer satisfaction, in order to maximize revenues (Constantinos 2003). Today, marketing is not just developing, delivering and selling; it is shifting towards developing and maintaining equally long term relationships with customers (Buttle, 1996). This new business values is called relationship marketing (RM), which has involved significant interest both from marketing academics and practitioners (Gronroos, 1994). The Greek philosopher, Epictetus said that â€Å"what concern me is not the way things are, but rather the way people think things are† (Szwarch, 2005, p.3). The concepts of consumer satisfaction were depending on the thinking of consumer. Research suggests that customer satisfaction, basic concept of relationship marketing, is important in achieving and retaining competitive advantage. Research studies have discovered that retaining current customers is much less expensive than attracting new customers (Desatnick, 1988; Stone et al., 1996; Bitran and Mondschein, 1997; Chattopadhyay, 2001; Massey et al., 2001). The best way to retain customers is to keep them satisfied, a number of studies have shown that customer satisfaction can guide to brand loyalty, repurchases intention and repeat sales (Day, 1984; Swan and Oliver, 1989; Oliver, 1999). Customer retention, in turn, seems to be related to profitability (Oliver, 1999). Relationship marketing is becoming significant in financial services (Zineldin, 1995). If a bank develops and sustains a solid relationship with its customers, its competitors cannot easily replace them and so this relationship provides for a continued competitive advantage (Gilbert, 2003). Moriarty et al. (1983) has suggested relationship concept in the banking sector which states that banks can increase their profits by maximising the profitability of the total customer relationship over time, instead of looking for to get more profit from any single transaction. Perrien et al. (1992) observed severe competitive pressures that forces financial institution to restructure their marketing strategies by developing into long-term relationship with customers. And banking industry purely related to financial services, which needs to create the trust among the people. This research is exploratory in nature and design. The data which is collected is going to be mostly primary data collected from the relevant persons within the bank. The data has gathered from the face to face interviews with the help of structured and semi-structured questionnaire with those persons. The above describe interviews has last 40 (fourty) to 45 (fourty five) minutes (approx). On the other hand the researcher has decided to collect primary data from random interviews of Lloyds Banking Groups customers. Sample size is around 200 customers and of structured questionnaire. But of course this research paper has relied on reviewing the various secondary data available from various researches such as books, magazines, website, previous research and publication etc. The collected data has been analysed by graphs, table and pi chart drawn from Microsoft excel. 1.3 AIM OF THE RESEARCH The aim of the research is to study why CRM is important in bank, how the CRM works in banks and also the effectiveness of Lloyds Banking Group in obtaining long term customer relationship, customer loyalty, and customer satisfaction by the use of CRM. And also suggest feasible recommendations to Lloyds Banking Group to increase the customer satisfaction and market share by the effective use of CRM. 1.4 OBJECTIVES OF THE RESEARCH The followings are the objectives of this research; To study how critically practised in Lloyds Banking Group Analysis the data mining process of Lloyds Banking Group To find out how the bank segments their customers To analysis how the bank retaining their customers To find out how does the bank measure customer Life Time Value To verify the relationship between the customers and the Lloyds Banking Group 1.5 SCOPE OF THE STUDY The scope of the study and research work has limited to Lloyds Banking Group only. This chosen level of aspects has stayed at large in the study so that it can be studied well and analyzed thoroughly to get a deeper understanding. Trying to cover too much ground may lead to a very superficial and confused analysis and may involve long time duration to complete the project work or report. Therefore a specified and narrow down approach with Lloyds Banking Group and an evaluation of its success has comprised with the researchers scope of the study to avoid confused analysis and a weaker report. 1.6 OUTLINE OF THE SUBSEQUENT CHAPTERS Chapter 1; INTODUCTION This chapter provides the brief introduction of the research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the learning. CHAPTER 2; LITERATURE REVIEW This chapter determines the theoretical issues relating to CRM which is relevant to the research. CHAPTER 3; METHODOLOGY This episode discusses about primary and secondary methods of research used by the researcher. CHAPTER 4; CONTEXT Chapter 4 deals with the information about Lloyds Banking Group. CHAPTER 5; FINDINGS This chapter deals with the result of primary data. CHAPTER 6; ANALYSIS Analysis part deals with findings in the context of literature review in chapter 2. CHAPTER 7; CONCLUSION This chapter includes the overall conclusion of the research. This chapter produce the conclusion compared and contrasted with the finding of the research and the literature review. It summarises the aims and key findings and acknowledges the limitation of the works. CHAPTER 8; RECOMMENDATIONS This chapter is the last chapter of the research. This chapter provide the recommendation for the managerial implication in the Lloyds Banking Group. At the end, chapter provide recommendation for the future research. CHAPTER 9; REFERENCES AND BIBLIOGRAPHY This chapter includes a systematic list of books, web site and other works such as journal, magazine etc which have been used as secondary data or as reference in this research. CHAPTER 10; APPENDICES This chapter contain all questionnaires and some graphs, chart and tables which have been made on the basis of customer survey. 2.0 LITERATURE REVIEW This chapter contains a review of literature relevant to the research. This literature review deals with, about CRM, the history and goals of an integrated banking CRM, the technological factor of CRM, the process cycle in banks, data warehouse technology, data mining process, how to analysis the data, customer segmentation process, communication strategies of bank to the customers etc. 2.1 CUSTOMER RELATIONSIP MANAGEMENT Existing research states that ‘relationships are the base to the successful development and edition of new business viewpoint, though business have taken care of relationships with their customers for many centuries (Gronroos, 1994). Sheth and Parvathiyar, (1995) said that relationships demand much more than mere transactions. Rather, they symbolize strategic and tactical issues based on a new philosophical move that geared in the direction of long-term organisation survival. According to Storbacka, (1994) relationship marketing got popular in 1990s but it has a long history under different names. In its starting, one-to-one marketing appeared in the mid 1990s, which transformed into Customer Relationship Management. Parvatiyar and Sheth gave a static definition of CRM. â€Å"Customer Relationship Management is widespread tactic and process of acquire, retaining and partnering with careful consumers to create better-quality value for the business and the consumer† (Parvatiyar and Sheth 2000, p.6) 2.2 THE HISTORY AND GOALS OF AN INTEGRATED BANKING CRM According to Puccinelli (1999) the financial services industry as entering a new era where personal attention is decreasing because the institutions are using technology to replace human contact in many application areas. Sherif, 2002 advocated that, now global changes brought new trends, directions and new ways of doing business, which also brought new challenges and opportunities to financial institutions. In order to complete with newly increasing competitive pressures, financial institutions must recognize the need of balancing their performance by achieving their strategic goals and meeting continues volatile customer needs requirements. Different ways must be analyzed to meet customer needs. Foss said that banks are highly focusing on CRM for the last five years that is expected to continue. According to Peter (1998) and Chablo (1999) the main goals of an effective integrated CRM solution in the banking sector are to enable financial institutes to; Widen customer relationship through acquiring new customers, identifying and targeting new segments and expanding in new markets. Lengthen the existing relationship developing longer term relationships, increasing perceived value of products and introducing new products and Deepen the relationship with customers initiating the cross selling and up selling opportunities, understanding the propensity of different customer segments to purchase and increase sales. The implementation if CRM system in a bank helps the business organisation to obtain a complete picture of their existing customers, design both customer-oriented and market-driven financial products and services, as well as implement extensive and reliable financial marketing research and efficient campaigns, to achieve and enhance customer loyalty and profitability. The above goals can be achieved through the seamless integration of information technology solutions and business objectives at every process of the bank business that affects the customer. 2.3 THE PHASES OF CRM The main phases of CRM are as follows; Customer selection or Segmentation According to Dave Chaffey (2009), customer selection is defining the types of customers that a company will market to. It means identifying different groups of customers for which to develop offerings and to target during acquisition, retention and extension. Different ways of segmenting customers by value and by their detailed lifecycle with the customer are reviewed. Many companies are now only proactively marketing to favoured customers. Seth Godin (1999), says â€Å"Focus on share of customer, not market share fire 70 per cent customers and watch your profits go up!† According to Efraim Turban (2008), the most sophisticated segmentation and targeting schemes for extension of customers are often used by banks, which have full customer information and acquire history data as they search for to boost Customer Lifetime Value (CLV) through encouraging increased use of products overtime. The segmentation approach used by banks is based on five main basics which in result are covered on top of each other. The amount of options used, and therefore the complexity of approach, will depend on resources obtainable, opportunities, capabilities and technology afforded by catalog. i. Identify customer lifecycle groups When guests use online services then they basically pass those seven or more stages. The organisations have clear these segments and establish the CRM infrastructure to categories customers in this manner; then they deliver focused messages, whichever by modified web messaging or by e-mails that are triggered routinely because of various rules. First-time guests recognized by a cookie placed on their PC. When guests registered, they are tracked through the residual stages. The customers who have purchased one or more products are one particular important group. The key challenge is for a company to encourage a customer to shift from the first product to the second and then go on. Explicit offers can be try to push customer for further products. In the same way, when customers turn into an inactive then the customer required follow-up. ii. Identify customer profit characteristics This is a conventional segmentation which is based on the nature of customer. For Business 2 Business Companies it includes sex, age and geography. It includes volume of the organisation and the type of sector or application, the organisation operates in. iii. Identify behaviour in response and purchase As shown in figure 2.2 through analysis of data base when customer progress through the lifecycle, company is capable to build up a detail reaction and buy history which judges the details of frequency, recency, group of product buy and monetary value. This approach is known as ‘RFM (Recency, Frequency, Monetary value) analysis. iv. Identify multi-channel behaviour In spite of of the eagerness of the company for online channels, various customers are chosen for using online channels and others customers are chosen conventional channels. This is an degree, be indicated by RFM and rejoinder examination since customers with a preference for an online channel is more reactive and make more use online. Customer who likes online channels is focused mostly by online communications such as e-mail, but when customer like conventional channels is focused by conventional communications such as direct mail or phone. This is known as ‘right-channelling. v. Tone and style preference In a same way to channel liking, customers are respond in their own way to various types of message. Some customers like rational application, in that time a detailed e-mail may work best. On the other hand some customers are preferred an emotional appeal. Companies are test for this in customers or conclude it using profit description and response performance and then expand various inventive treatments consequently. 2. Customer acquisition Processes used to add new customer. According to Turban (2008), customer acquisition refers to marketing activities intended to form relationship with new customers while reducing acquisition cost and targeting high-value customers. Service value and selecting the right path for various customers are essential at this stage and during the lifecycle. The conventional manner to customer acquisition include a marketing manager developing a blend of mass marketing (billboards, magazine advertisements etc.) and direct marketing (mail, telephone, etc.) campaigns based on their knowledge of the particular customer base that was being focussed. Marketing campaign trying to pressure new customers to buy a particular type of diapers, the mass marketing ads might be determined in parenting magazines. The advertisements could also be positioned in more conventional publications whose readership demographics were alike to those of new parents. Customer acquisition is comparatively similar to mass marketing. A marketing manager selects the demographics that they are involved in and after that works with a data vendor to obtain lists of buyers who meet those features. The data vendors have large database holding millions of eventual customers that can be segment based on explicit demographic criteria. The idea of â€Å"similar demographics† has conventionally been an art rather than a science. Usually there are not hard-and-fast systems about whether two groups of buyers share the similar features. Most of the segmentation that took place in conventional direct marketing involves hunches on the division of the marketing professional. 3. Customer retention Dafe Chaffey 2009 said that customer retention refers to the marketing actions taken by a company to keep its current customers. Identifying applicable offerings based on their personal needs and complete position in the customer lifecycle (e.g. purchase value or number) is key. Customer retention strategy aims to keep a high percentage of valuable customers and a customer development strategy aims to boost the value of those retained customer to the organisation. Customer retention is based on customer loyalty. And customer loyalty is the point to which a customer will continue with a specific brand or vendor. Customer acquisition to retain and extend create long-term customer relationship. We need to calculate customer satisfaction, as satisfaction drives loyalty and loyalty drives profitability. This relationship is exposed below; The marketers aim is to push customers up the curve towards the affection zone. But the majority are not in that zone. Marketers must understand to achieve retention,why customers defers or are indifferent. 4. Customer extension This technique is encouraging customers to increase their involvement with a company. According to Turban 2008, customer extension is increasing the range of products that a customer buys from an organisation. Sometime it is referred ‘customer development. Increasing the lifetime value (CLV) of a customer is the main objective of customer extension by encouraging cross-sell. For example a customer of Egg credit card may be offered the loan or a deposit account. There are many of customer extension technique for CRM as follows; Re-sell: same type of products to existing customers-particular vital in some Business 2 Business background as re-buys or modified re-buys. Cross-sell: sell extra products which may be closely related to the original buy. Up-sell: this is mean, selling more expensive products. Reactivation: Customers who have purchased for some time or have lapsed can be encouraged to buy again. Referrals: generating sells from recommendation from existing customers. 2.4 CUSTOMER LIFETIME VALUE MODELLING Customer Lifetime Value (CLV) is also an important theory and practise of CRM. But the calculation of CLV is not straightforward. There are so many company, they do not calculate it. According to Dave Chaffey (2009) â€Å"Lifetime value is the total net benefits that a customer or group of customers will provide a company over their total relationship with the company†. CLV is based on estimating the income and costs related with each customer over a phase of time and then calculating the net present value in present monetary terms using a discount rate value applied over the stage. Efraim Turban (2006) said there is various scale of complexity in calculating LTC. Those are exposed in figure 2.6. Option 1 is a realistic way or estimated proxy for future LTV, but the true LTV is the future value of the customer at individual level. CLV modelling at a segment level 4 is crucial within marketing since it answers the question; How much can I afford to invest in acquiring a new customer? Lifetime value analysis helps marketers to: Create the true value of a companys customer base Recognize and compare crucial target segment Calculate the effectiveness of another customer retention strategy Plan and calculate investment in customer acquisition programmes Make decisions about product and offers Figure 2.7 gives an example of how LTV can be used to develop a CRM strategy for different customer groups. There are 4 (four) main types of customers are indicated by their present and future value as bronze, silver, gold and platinum. Separate customers groupings (circles) are recognized according to their current value (as indicated by current profitability) and future value as indicated by CLV calculation. Every group will have a customer segmentation based on their demographics. Therefore this is used for customer selection. Within the four main value groupings, there are various strategies are developed for various customer groups. Few bronze customers such as group A and B practically do not have development potential and are usually unprofitable, therefore the objective is to reduce costs in communications and if they do not stay as customers this is acceptable. Some bronze customers like group C may have potential for growth; therefore for group C the strategy is to extend their purchases. Silver customers are focused with customer extension offer and gold customers are extended. Platinum customers are the best customers; therefore the communication is very important with these customers. 2.5 THE TECHNOLOGICAL FACTORS OF CRM According to Davenport and Short, (1990); Porter, (1987) ‘information technology is an enabler to thoroughly redesign business process to achieve improvements in organisational performance. ‘Information Technology help helps a business process by facilitating changes to job practices and establishing new techniques to link a customer with organisations, suppliers and stakeholders (Hammer and Champy, 1993). Eckerson and Watson (2000) advocated that ‘CRM take full advantage of technology to collect and analyze data on customer patters, expand predictive models, interpret customer behaviour, proper respond with communications, and deliver product and service to individual customers. By using technology a business can generate a 360 degree view of consumers to find out from past interactions to optimize future ones. Peppard (2000) said that ‘the leading factors in CRM development are improvement in set of connections communications, client/server compute, and business cleverness application. CRM collect, store, maintain and distribute customer knowledge all over the organisation. The effectual management of information has a vital role to play in CRM. In the case of scheming customer duration importance, consolidated view, product tailoring and facility improvement, the information is essential. Along with data warehouses, enterprise resource planning (ERP) organization and the internet are the vital infrastructures to CRM application. Fickel (1999) said ‘CRM application links front office (e.g. marketing, sales and customer service) and back office (e.g. financial, logistics, operations and human resources) functions with the businesses customer contact point. A companys touch point is â€Å"all of the communication, human and physical interactions your customers experience during their relationship lifecycle with your organisation. Whether an commercial, Web-site, sales individual, store or office, finger points are vital because customers from perceptions of your organisation and brand based on their cumulative experiences† (Source; http://www.imediaconnection.com/content/4508.imc at 16/10/2009 on 15:25) According to Eckerson and Watson (2000), ‘CRM integrated touch points is something like a common view of the customer. A separate information systems controlled these touch points. Figure 2.8 demonstrates the correlation between customer touch point with back and front office operations Peppers and Rogres, (1999) said ‘In many companies, CRM is just a technology solution that extends divide databases and sales force automation tools to link sales and marketing functions in order to develop targeting efforts. On the other hand some organisations consider CRM as a tool that is exclusively designed for one-to-one relationship. According to Goldenberg (2000) ‘CRM is not just a tools application for sales, marketing and service, but when CRM completely and successfully implemented, customer-driven, a cross-functional, technology-integrated commerce process management scheme that improves relationships and encompasses the whole organisation. 2.6 DATA WAREHOUSE TECHNOLOGY According to Watson (2000) ‘data warehouse is a tools of information technology management that helps business decision makers to instant access of information of customer data throughout the organisation by combining all database and operational systems like sales and transaction, human resource, inventory, purchasing, financial and marketing system. Data warehouse pull out, clean, convert and manage large volumes of data from various systems and creating a historical record of all customer. Data warehousing technology is the most crucial part of CRM because it makes CRM possible. Shepard et al. (1998) said ‘a better understanding of customer behaviour is possible because data warehousing technology consolidates correlates and convert customer data into customer intelligence. Thoughts of customers and their buying pattern can improve information relating to customer service interactions, bill and account status, back orders, product returns, product delivery, and internal operating cost. The capacity of a data storehouse to store hundreds and thousands of gigabytes of data compose an analysis feasible as well as immediate. Organisational benefits with a data warehouse are as follows; exact and faster access of information bad and duplicate data eliminate by quality data and filtering customer profiling and retention modelling it compute total present importance and approximate future value of every customer it gives detail report 2.7 DATA MINING TECHNOLOGY Peppers and Rogres, (1999) said that ‘the first analytical step of data mining is to describe the data. Data mining summarize its statistical attributes like standard deviations and means, visually review it by use of charts and graphs and distributes the value of the field in our data. But alone data description can not provide an action plan. We have to build a analytical model based on pattern determined from known output and after that we have to test the model on result outside the original sample. An ideal model must never be puzzled with reality, but it is useful guide to understanding our businesses. According to Eckerson and Watson (2000) ‘we can use data mining for both classification and regression problems. In first problem we can predict what type something will fall into. In second problems we are predicting a number like prospect that a person will react to an recommend. In CRM process, data mining is often used to allocate a score to a particular customer. Data mining is also often using to recognize a set of characteristics, which is called profile. Data mining segments customers in to groups with similar behaviour like purchasing a particular product. 2.8 THE CRM PROCESS CYCLE IN BANKS Pound (2000) said that exploration and alteration process should be done by the banks on basis of customer information captured; this shows the full value of CRM initiatives. Banks set up a closed CRM cycle with the help of an integrated CRM solution, which composed of a set of continuous iterative process. It manages the whole customer related process for bank, analysing customer profile, customer data and life time value, which is helping to making marketing decision and optimizing the execution of marketing campaigns, customer service strategies and sales strategies across various channels during the bank. According to Professor Constantin Zopounidis (2002) CRM process cycle is based on a generic business view. It presents a continuous improvement of value between customers and banks across touch points. Pound 2000 said that ‘recent banking data sources are extremely heterogeneous. Geographic information is dispersed due to continual acquisitions, mergers and reorganizations. For example a bank might use web site, ATMs, e-mail, sales, call centres and marketing automation applications that must be integrated in a unified environment of CRM banking. An effective multi-channels customer interface will not be possible without a centrally integrated warehouse driving the entire CRM process cycle. This should be update real time. The historical data should be recorded by it, which is used to create propensity models and customer life time value models to recognize past behaviour and action in order to take future marketing strategy. 2.9 CUSTOMER DATA COLLECTION Kristin Anderson Carol Kerr (2002), said that in banki Customer Relationship Management in Banking Customer Relationship Management in Banking ABSTRACT Today the world is globalized and customers are well educated and well informed. This has increased the competition among the firms and organisations. The competition elevates the customer bargaining power and switching power to choose the best product and service. Therefore customer relationship has become a focus of importance to all the companies in order to retain the customer as well as maximize revenues. Today marketing is no more developing, delivering and selling of goods and services, it is moving towards developing and maintaining long term relationship with customers. Therefore relationship marketing has making its important in all the business sectors so as in financial services. Customers Relationship Management creates the opportunity through which the banks can benefit by developing good relationships with their customers. The aim of the project is to gain a better understanding how the CRM has benefited both the bank as well as its customers. This research also aims to identify how critically CRM has been practiced in Lloyds Banking Group, analysis the data mining process of Lloyds Banking Group, to find out the customer segmentation procedure of the bank to analysis the customer retaining strategy of the bank, to find out how does the bank measure customer life time value and to verify the relationship between the customers and the Lloyds Banking Group. To validate the purpose of the project has addressed to set of questionnaires, one is for Lloyds Banking Groups employees and other is for customers of the bank. The literature review has also help to understand the answer for the research questions. Both the quantitative as well as qualitative data collection techniques have been adopted namely, survey questionnaire and semi-structure interviews. Some data has also collected through interview of Lloy ds employee and a group of their customers. Lloyds use CRM as an effective business strategy to classify the most profitable customers for bank. And accordingly bank gives priorities those customers through individualized marketing, reprising, flexible conclusion building and modify service-all delivered through a variety of sales channels that the bank use. Researcher has found that Lloyds is conducting a campaign management by using data mining task. This campaign helps to make crucial business decisions by exacting suitable, beforehand strange and ultimately logical and actionable awareness from huge databases. Researcher also has suggested suitable recommendations to the bank to improve the CRM practice in Lloyds Banking Group. 1.0 INTRODUCTION This chapter provides the brief introduction of research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the study. 1.1 TOPIC OF THE RESEARCH Customer Relationship Management of Lloyds Banking Group PLC; A Critical Evaluation 1.2 INTRODUCTION TO RESEARCH Peter Drucker said, â€Å"The purpose of a business is to create customers†. Customer Relationship Management can be the single strongest weapon we have as manage to ensure that customers become and remain loyal. Customer Relationship Management (CRM), is an vital division of modern business organization. CRM concern the relation between the organisations along with its consumers. Consumers are the means of support of any business in a universal business with thousands of workforce and a multi-billion earnings, or a single broker with a handful of standard consumers. CRM is the same in principle for both examples. Globalization and technology improvements have pushed companies into hard competition. In this new era organisations are targeting on managing customer relationships, mainly customer satisfaction, in order to maximize revenues (Constantinos 2003). Today, marketing is not just developing, delivering and selling; it is shifting towards developing and maintaining equally long term relationships with customers (Buttle, 1996). This new business values is called relationship marketing (RM), which has involved significant interest both from marketing academics and practitioners (Gronroos, 1994). The Greek philosopher, Epictetus said that â€Å"what concern me is not the way things are, but rather the way people think things are† (Szwarch, 2005, p.3). The concepts of consumer satisfaction were depending on the thinking of consumer. Research suggests that customer satisfaction, basic concept of relationship marketing, is important in achieving and retaining competitive advantage. Research studies have discovered that retaining current customers is much less expensive than attracting new customers (Desatnick, 1988; Stone et al., 1996; Bitran and Mondschein, 1997; Chattopadhyay, 2001; Massey et al., 2001). The best way to retain customers is to keep them satisfied, a number of studies have shown that customer satisfaction can guide to brand loyalty, repurchases intention and repeat sales (Day, 1984; Swan and Oliver, 1989; Oliver, 1999). Customer retention, in turn, seems to be related to profitability (Oliver, 1999). Relationship marketing is becoming significant in financial services (Zineldin, 1995). If a bank develops and sustains a solid relationship with its customers, its competitors cannot easily replace them and so this relationship provides for a continued competitive advantage (Gilbert, 2003). Moriarty et al. (1983) has suggested relationship concept in the banking sector which states that banks can increase their profits by maximising the profitability of the total customer relationship over time, instead of looking for to get more profit from any single transaction. Perrien et al. (1992) observed severe competitive pressures that forces financial institution to restructure their marketing strategies by developing into long-term relationship with customers. And banking industry purely related to financial services, which needs to create the trust among the people. This research is exploratory in nature and design. The data which is collected is going to be mostly primary data collected from the relevant persons within the bank. The data has gathered from the face to face interviews with the help of structured and semi-structured questionnaire with those persons. The above describe interviews has last 40 (fourty) to 45 (fourty five) minutes (approx). On the other hand the researcher has decided to collect primary data from random interviews of Lloyds Banking Groups customers. Sample size is around 200 customers and of structured questionnaire. But of course this research paper has relied on reviewing the various secondary data available from various researches such as books, magazines, website, previous research and publication etc. The collected data has been analysed by graphs, table and pi chart drawn from Microsoft excel. 1.3 AIM OF THE RESEARCH The aim of the research is to study why CRM is important in bank, how the CRM works in banks and also the effectiveness of Lloyds Banking Group in obtaining long term customer relationship, customer loyalty, and customer satisfaction by the use of CRM. And also suggest feasible recommendations to Lloyds Banking Group to increase the customer satisfaction and market share by the effective use of CRM. 1.4 OBJECTIVES OF THE RESEARCH The followings are the objectives of this research; To study how critically practised in Lloyds Banking Group Analysis the data mining process of Lloyds Banking Group To find out how the bank segments their customers To analysis how the bank retaining their customers To find out how does the bank measure customer Life Time Value To verify the relationship between the customers and the Lloyds Banking Group 1.5 SCOPE OF THE STUDY The scope of the study and research work has limited to Lloyds Banking Group only. This chosen level of aspects has stayed at large in the study so that it can be studied well and analyzed thoroughly to get a deeper understanding. Trying to cover too much ground may lead to a very superficial and confused analysis and may involve long time duration to complete the project work or report. Therefore a specified and narrow down approach with Lloyds Banking Group and an evaluation of its success has comprised with the researchers scope of the study to avoid confused analysis and a weaker report. 1.6 OUTLINE OF THE SUBSEQUENT CHAPTERS Chapter 1; INTODUCTION This chapter provides the brief introduction of the research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the learning. CHAPTER 2; LITERATURE REVIEW This chapter determines the theoretical issues relating to CRM which is relevant to the research. CHAPTER 3; METHODOLOGY This episode discusses about primary and secondary methods of research used by the researcher. CHAPTER 4; CONTEXT Chapter 4 deals with the information about Lloyds Banking Group. CHAPTER 5; FINDINGS This chapter deals with the result of primary data. CHAPTER 6; ANALYSIS Analysis part deals with findings in the context of literature review in chapter 2. CHAPTER 7; CONCLUSION This chapter includes the overall conclusion of the research. This chapter produce the conclusion compared and contrasted with the finding of the research and the literature review. It summarises the aims and key findings and acknowledges the limitation of the works. CHAPTER 8; RECOMMENDATIONS This chapter is the last chapter of the research. This chapter provide the recommendation for the managerial implication in the Lloyds Banking Group. At the end, chapter provide recommendation for the future research. CHAPTER 9; REFERENCES AND BIBLIOGRAPHY This chapter includes a systematic list of books, web site and other works such as journal, magazine etc which have been used as secondary data or as reference in this research. CHAPTER 10; APPENDICES This chapter contain all questionnaires and some graphs, chart and tables which have been made on the basis of customer survey. 2.0 LITERATURE REVIEW This chapter contains a review of literature relevant to the research. This literature review deals with, about CRM, the history and goals of an integrated banking CRM, the technological factor of CRM, the process cycle in banks, data warehouse technology, data mining process, how to analysis the data, customer segmentation process, communication strategies of bank to the customers etc. 2.1 CUSTOMER RELATIONSIP MANAGEMENT Existing research states that ‘relationships are the base to the successful development and edition of new business viewpoint, though business have taken care of relationships with their customers for many centuries (Gronroos, 1994). Sheth and Parvathiyar, (1995) said that relationships demand much more than mere transactions. Rather, they symbolize strategic and tactical issues based on a new philosophical move that geared in the direction of long-term organisation survival. According to Storbacka, (1994) relationship marketing got popular in 1990s but it has a long history under different names. In its starting, one-to-one marketing appeared in the mid 1990s, which transformed into Customer Relationship Management. Parvatiyar and Sheth gave a static definition of CRM. â€Å"Customer Relationship Management is widespread tactic and process of acquire, retaining and partnering with careful consumers to create better-quality value for the business and the consumer† (Parvatiyar and Sheth 2000, p.6) 2.2 THE HISTORY AND GOALS OF AN INTEGRATED BANKING CRM According to Puccinelli (1999) the financial services industry as entering a new era where personal attention is decreasing because the institutions are using technology to replace human contact in many application areas. Sherif, 2002 advocated that, now global changes brought new trends, directions and new ways of doing business, which also brought new challenges and opportunities to financial institutions. In order to complete with newly increasing competitive pressures, financial institutions must recognize the need of balancing their performance by achieving their strategic goals and meeting continues volatile customer needs requirements. Different ways must be analyzed to meet customer needs. Foss said that banks are highly focusing on CRM for the last five years that is expected to continue. According to Peter (1998) and Chablo (1999) the main goals of an effective integrated CRM solution in the banking sector are to enable financial institutes to; Widen customer relationship through acquiring new customers, identifying and targeting new segments and expanding in new markets. Lengthen the existing relationship developing longer term relationships, increasing perceived value of products and introducing new products and Deepen the relationship with customers initiating the cross selling and up selling opportunities, understanding the propensity of different customer segments to purchase and increase sales. The implementation if CRM system in a bank helps the business organisation to obtain a complete picture of their existing customers, design both customer-oriented and market-driven financial products and services, as well as implement extensive and reliable financial marketing research and efficient campaigns, to achieve and enhance customer loyalty and profitability. The above goals can be achieved through the seamless integration of information technology solutions and business objectives at every process of the bank business that affects the customer. 2.3 THE PHASES OF CRM The main phases of CRM are as follows; Customer selection or Segmentation According to Dave Chaffey (2009), customer selection is defining the types of customers that a company will market to. It means identifying different groups of customers for which to develop offerings and to target during acquisition, retention and extension. Different ways of segmenting customers by value and by their detailed lifecycle with the customer are reviewed. Many companies are now only proactively marketing to favoured customers. Seth Godin (1999), says â€Å"Focus on share of customer, not market share fire 70 per cent customers and watch your profits go up!† According to Efraim Turban (2008), the most sophisticated segmentation and targeting schemes for extension of customers are often used by banks, which have full customer information and acquire history data as they search for to boost Customer Lifetime Value (CLV) through encouraging increased use of products overtime. The segmentation approach used by banks is based on five main basics which in result are covered on top of each other. The amount of options used, and therefore the complexity of approach, will depend on resources obtainable, opportunities, capabilities and technology afforded by catalog. i. Identify customer lifecycle groups When guests use online services then they basically pass those seven or more stages. The organisations have clear these segments and establish the CRM infrastructure to categories customers in this manner; then they deliver focused messages, whichever by modified web messaging or by e-mails that are triggered routinely because of various rules. First-time guests recognized by a cookie placed on their PC. When guests registered, they are tracked through the residual stages. The customers who have purchased one or more products are one particular important group. The key challenge is for a company to encourage a customer to shift from the first product to the second and then go on. Explicit offers can be try to push customer for further products. In the same way, when customers turn into an inactive then the customer required follow-up. ii. Identify customer profit characteristics This is a conventional segmentation which is based on the nature of customer. For Business 2 Business Companies it includes sex, age and geography. It includes volume of the organisation and the type of sector or application, the organisation operates in. iii. Identify behaviour in response and purchase As shown in figure 2.2 through analysis of data base when customer progress through the lifecycle, company is capable to build up a detail reaction and buy history which judges the details of frequency, recency, group of product buy and monetary value. This approach is known as ‘RFM (Recency, Frequency, Monetary value) analysis. iv. Identify multi-channel behaviour In spite of of the eagerness of the company for online channels, various customers are chosen for using online channels and others customers are chosen conventional channels. This is an degree, be indicated by RFM and rejoinder examination since customers with a preference for an online channel is more reactive and make more use online. Customer who likes online channels is focused mostly by online communications such as e-mail, but when customer like conventional channels is focused by conventional communications such as direct mail or phone. This is known as ‘right-channelling. v. Tone and style preference In a same way to channel liking, customers are respond in their own way to various types of message. Some customers like rational application, in that time a detailed e-mail may work best. On the other hand some customers are preferred an emotional appeal. Companies are test for this in customers or conclude it using profit description and response performance and then expand various inventive treatments consequently. 2. Customer acquisition Processes used to add new customer. According to Turban (2008), customer acquisition refers to marketing activities intended to form relationship with new customers while reducing acquisition cost and targeting high-value customers. Service value and selecting the right path for various customers are essential at this stage and during the lifecycle. The conventional manner to customer acquisition include a marketing manager developing a blend of mass marketing (billboards, magazine advertisements etc.) and direct marketing (mail, telephone, etc.) campaigns based on their knowledge of the particular customer base that was being focussed. Marketing campaign trying to pressure new customers to buy a particular type of diapers, the mass marketing ads might be determined in parenting magazines. The advertisements could also be positioned in more conventional publications whose readership demographics were alike to those of new parents. Customer acquisition is comparatively similar to mass marketing. A marketing manager selects the demographics that they are involved in and after that works with a data vendor to obtain lists of buyers who meet those features. The data vendors have large database holding millions of eventual customers that can be segment based on explicit demographic criteria. The idea of â€Å"similar demographics† has conventionally been an art rather than a science. Usually there are not hard-and-fast systems about whether two groups of buyers share the similar features. Most of the segmentation that took place in conventional direct marketing involves hunches on the division of the marketing professional. 3. Customer retention Dafe Chaffey 2009 said that customer retention refers to the marketing actions taken by a company to keep its current customers. Identifying applicable offerings based on their personal needs and complete position in the customer lifecycle (e.g. purchase value or number) is key. Customer retention strategy aims to keep a high percentage of valuable customers and a customer development strategy aims to boost the value of those retained customer to the organisation. Customer retention is based on customer loyalty. And customer loyalty is the point to which a customer will continue with a specific brand or vendor. Customer acquisition to retain and extend create long-term customer relationship. We need to calculate customer satisfaction, as satisfaction drives loyalty and loyalty drives profitability. This relationship is exposed below; The marketers aim is to push customers up the curve towards the affection zone. But the majority are not in that zone. Marketers must understand to achieve retention,why customers defers or are indifferent. 4. Customer extension This technique is encouraging customers to increase their involvement with a company. According to Turban 2008, customer extension is increasing the range of products that a customer buys from an organisation. Sometime it is referred ‘customer development. Increasing the lifetime value (CLV) of a customer is the main objective of customer extension by encouraging cross-sell. For example a customer of Egg credit card may be offered the loan or a deposit account. There are many of customer extension technique for CRM as follows; Re-sell: same type of products to existing customers-particular vital in some Business 2 Business background as re-buys or modified re-buys. Cross-sell: sell extra products which may be closely related to the original buy. Up-sell: this is mean, selling more expensive products. Reactivation: Customers who have purchased for some time or have lapsed can be encouraged to buy again. Referrals: generating sells from recommendation from existing customers. 2.4 CUSTOMER LIFETIME VALUE MODELLING Customer Lifetime Value (CLV) is also an important theory and practise of CRM. But the calculation of CLV is not straightforward. There are so many company, they do not calculate it. According to Dave Chaffey (2009) â€Å"Lifetime value is the total net benefits that a customer or group of customers will provide a company over their total relationship with the company†. CLV is based on estimating the income and costs related with each customer over a phase of time and then calculating the net present value in present monetary terms using a discount rate value applied over the stage. Efraim Turban (2006) said there is various scale of complexity in calculating LTC. Those are exposed in figure 2.6. Option 1 is a realistic way or estimated proxy for future LTV, but the true LTV is the future value of the customer at individual level. CLV modelling at a segment level 4 is crucial within marketing since it answers the question; How much can I afford to invest in acquiring a new customer? Lifetime value analysis helps marketers to: Create the true value of a companys customer base Recognize and compare crucial target segment Calculate the effectiveness of another customer retention strategy Plan and calculate investment in customer acquisition programmes Make decisions about product and offers Figure 2.7 gives an example of how LTV can be used to develop a CRM strategy for different customer groups. There are 4 (four) main types of customers are indicated by their present and future value as bronze, silver, gold and platinum. Separate customers groupings (circles) are recognized according to their current value (as indicated by current profitability) and future value as indicated by CLV calculation. Every group will have a customer segmentation based on their demographics. Therefore this is used for customer selection. Within the four main value groupings, there are various strategies are developed for various customer groups. Few bronze customers such as group A and B practically do not have development potential and are usually unprofitable, therefore the objective is to reduce costs in communications and if they do not stay as customers this is acceptable. Some bronze customers like group C may have potential for growth; therefore for group C the strategy is to extend their purchases. Silver customers are focused with customer extension offer and gold customers are extended. Platinum customers are the best customers; therefore the communication is very important with these customers. 2.5 THE TECHNOLOGICAL FACTORS OF CRM According to Davenport and Short, (1990); Porter, (1987) ‘information technology is an enabler to thoroughly redesign business process to achieve improvements in organisational performance. ‘Information Technology help helps a business process by facilitating changes to job practices and establishing new techniques to link a customer with organisations, suppliers and stakeholders (Hammer and Champy, 1993). Eckerson and Watson (2000) advocated that ‘CRM take full advantage of technology to collect and analyze data on customer patters, expand predictive models, interpret customer behaviour, proper respond with communications, and deliver product and service to individual customers. By using technology a business can generate a 360 degree view of consumers to find out from past interactions to optimize future ones. Peppard (2000) said that ‘the leading factors in CRM development are improvement in set of connections communications, client/server compute, and business cleverness application. CRM collect, store, maintain and distribute customer knowledge all over the organisation. The effectual management of information has a vital role to play in CRM. In the case of scheming customer duration importance, consolidated view, product tailoring and facility improvement, the information is essential. Along with data warehouses, enterprise resource planning (ERP) organization and the internet are the vital infrastructures to CRM application. Fickel (1999) said ‘CRM application links front office (e.g. marketing, sales and customer service) and back office (e.g. financial, logistics, operations and human resources) functions with the businesses customer contact point. A companys touch point is â€Å"all of the communication, human and physical interactions your customers experience during their relationship lifecycle with your organisation. Whether an commercial, Web-site, sales individual, store or office, finger points are vital because customers from perceptions of your organisation and brand based on their cumulative experiences† (Source; http://www.imediaconnection.com/content/4508.imc at 16/10/2009 on 15:25) According to Eckerson and Watson (2000), ‘CRM integrated touch points is something like a common view of the customer. A separate information systems controlled these touch points. Figure 2.8 demonstrates the correlation between customer touch point with back and front office operations Peppers and Rogres, (1999) said ‘In many companies, CRM is just a technology solution that extends divide databases and sales force automation tools to link sales and marketing functions in order to develop targeting efforts. On the other hand some organisations consider CRM as a tool that is exclusively designed for one-to-one relationship. According to Goldenberg (2000) ‘CRM is not just a tools application for sales, marketing and service, but when CRM completely and successfully implemented, customer-driven, a cross-functional, technology-integrated commerce process management scheme that improves relationships and encompasses the whole organisation. 2.6 DATA WAREHOUSE TECHNOLOGY According to Watson (2000) ‘data warehouse is a tools of information technology management that helps business decision makers to instant access of information of customer data throughout the organisation by combining all database and operational systems like sales and transaction, human resource, inventory, purchasing, financial and marketing system. Data warehouse pull out, clean, convert and manage large volumes of data from various systems and creating a historical record of all customer. Data warehousing technology is the most crucial part of CRM because it makes CRM possible. Shepard et al. (1998) said ‘a better understanding of customer behaviour is possible because data warehousing technology consolidates correlates and convert customer data into customer intelligence. Thoughts of customers and their buying pattern can improve information relating to customer service interactions, bill and account status, back orders, product returns, product delivery, and internal operating cost. The capacity of a data storehouse to store hundreds and thousands of gigabytes of data compose an analysis feasible as well as immediate. Organisational benefits with a data warehouse are as follows; exact and faster access of information bad and duplicate data eliminate by quality data and filtering customer profiling and retention modelling it compute total present importance and approximate future value of every customer it gives detail report 2.7 DATA MINING TECHNOLOGY Peppers and Rogres, (1999) said that ‘the first analytical step of data mining is to describe the data. Data mining summarize its statistical attributes like standard deviations and means, visually review it by use of charts and graphs and distributes the value of the field in our data. But alone data description can not provide an action plan. We have to build a analytical model based on pattern determined from known output and after that we have to test the model on result outside the original sample. An ideal model must never be puzzled with reality, but it is useful guide to understanding our businesses. According to Eckerson and Watson (2000) ‘we can use data mining for both classification and regression problems. In first problem we can predict what type something will fall into. In second problems we are predicting a number like prospect that a person will react to an recommend. In CRM process, data mining is often used to allocate a score to a particular customer. Data mining is also often using to recognize a set of characteristics, which is called profile. Data mining segments customers in to groups with similar behaviour like purchasing a particular product. 2.8 THE CRM PROCESS CYCLE IN BANKS Pound (2000) said that exploration and alteration process should be done by the banks on basis of customer information captured; this shows the full value of CRM initiatives. Banks set up a closed CRM cycle with the help of an integrated CRM solution, which composed of a set of continuous iterative process. It manages the whole customer related process for bank, analysing customer profile, customer data and life time value, which is helping to making marketing decision and optimizing the execution of marketing campaigns, customer service strategies and sales strategies across various channels during the bank. According to Professor Constantin Zopounidis (2002) CRM process cycle is based on a generic business view. It presents a continuous improvement of value between customers and banks across touch points. Pound 2000 said that ‘recent banking data sources are extremely heterogeneous. Geographic information is dispersed due to continual acquisitions, mergers and reorganizations. For example a bank might use web site, ATMs, e-mail, sales, call centres and marketing automation applications that must be integrated in a unified environment of CRM banking. An effective multi-channels customer interface will not be possible without a centrally integrated warehouse driving the entire CRM process cycle. This should be update real time. The historical data should be recorded by it, which is used to create propensity models and customer life time value models to recognize past behaviour and action in order to take future marketing strategy. 2.9 CUSTOMER DATA COLLECTION Kristin Anderson Carol Kerr (2002), said that in banki

Small Business Development Can Beauty Parlour Marketing Essay

Small Business Development Can Beauty Parlour Marketing Essay This reflective report will describe my own role in helping the team to achieve its goal in relation to the Business plan. Also I will provide evidence of my involvement to the success of the team from the idea initiation and how I facilitated the completion of the Business plan. It started like this, I was arranged in a group of three members, a team with other group mates which were all new to me. Although we were in a same class since the beginning of the course but I was not close to them. Our group seems to understand each other quickly because of the good communication. We always solved easily problems encountered through out the exercise. As a group we were performed different tasks in making a business plan. The aim of this business is to acquire a loan from a bank, so as to help our salon CAN Beauty Parlor to start the business in relation to capital and assets. Afsa was responsible for the marketing , Christine had a task of future beauty fashions operations as well as identifying the competitors and I was responsible for preparing financial projections through the input from Afsa and Chrisstine The report also illustrates the Team work, our mutual interest as a group, idea initiation process and the experience achieved from presenting the business plan and as well as my personal views towards the whole business plan. The business plan has allowed us to work as a group and also learn of the industry as a whole and we were able to apply the academic theories we learned throughout our course . 1 TEAM WORK CAN beauty parlor came to be a perfect choice of our mutual interest of the whole group. Our group consistent of three people eager to carry out our tasks in relation to the writing the business plan. We started by splitting the tasks so that we could have competition to see who achieve the task goals as we planned. My team included Afsa Bhanji, Christine Mkwawa and myself We as a group were allocated different tasks in order to form the business plan. Afsa was responsible for the marketing, Christine had to analyse the industry and identify the competitors and I was responsible for preparing financial projections through the input from colleagues of our beauty parlor The three of us were not conversant with each other although we have been studying in the same college for some years. and we were not engaging in regular conversation during the classes so it was not easy for us to work as a team. But all three of us had an interest in setting up a beauty outlet where people will come and get quality service different from others. We came over Five stages of group development; i.e forming, norming, storming, performing and adjourning. Although the norming stage took a while but after knowing each other well the rest of the stages went much easier. As we have now completed our business plan we have finished up the adjourning stage. Christine , enjoys regular visiting most of the famous salons in town. She is a beauty lover and is always up to date with the upcoming fashions. She has contacts with several people that performs beauty at different venues in Dar es Salaam. Her strength is awareness of popular beauty trends. Afsa too is a beauty lover. Her beauty interest includes of nails, hair , and skin. She currently participated in a beauty contest in Tanzania her strength is being well conversant in the beauty industry. Myself, I dont have much interest in beauty but I love running a hotel my strength in this exercise was identifying the opportunity as I related the organic restaurant by seeing the opportunity of opening a salon using natural beauty products. We worked as a team with acknowledgement of everyones contribution related to the tasks, we coordinated and make sure we achieved our goals. 2 PROCESS OF IDEA INITIATION Our team wanted to initiate an idea which will be effective and being able to achieve the goals in the business we planned as a our group. As a team we all put forward suggestions to come over one effective Idea. Industry situation of the current market was our first priority before choosing the idea. Our discussion included:- 1. An Organic Restaurant The idea was good as the Industry is very profitable, as there is no many such restaurants which makes the business less competitive. But we hesitated getting into this business as all of us had any experience on the said business. Then we dropped the idea. 2. Dry cleaning Business . Several dry cleaners are operating in the markets. People today require this service to make their life easier. But due to investment costs to buy the modern machines and due the lack of experience in that field we deduct chose the idea. 3. Beauty Parlor. The final choice was to open a beauty salon. The whole idea was a bit difficult as how our project will succeed while they is a fleet of salon in Tanzania. We came out with the Idea of differencing ourselves from other by opening a Beauty Salon by using Natural Beauty Products. Our final choice which was a beauty Parlor was an interest of the whole group. process of idea initiation has been very difficult to us as we had to take risk by introducing natural beauty products which is the new product in the beauty industry. What we had to do was laying out strategies and make sure we implemented them accordingly. 3 PRESENTATION EXPERIENCE Presenting the CAN Beauty parlour to our tutor allowed us to see the other side of our business plan. After passing through the pages of the written business plan; obvious would come out with several questions to the parts that needs more elaboration. We were informed of executive summary was too brief as doesnt show everything in our business plan, we were needed to elaborate a bit more. We were also needed to draw a graph showing the break even point. Presentation always adds weight to the Business plan as the investors may have a clear picture as the presents will be able to deliver what is need from the investors, question will be answered and criticism can be responded during the exercise of presentation. Presentation is a good experience as the panel can ask questions and need elaborations as we can communicate orally which will hell the business man to defend the projections written in the business plan. 4 ALTERNATIVE SCENARIO The beauty Industry is tightly come but only self I can optimistic to the group of our Beauty Parlour as per business plan. As we differentiated ourselves by using the natural products our business will be able to increase its profit by 5% every year as we projected in our financial parts. The services we offer will attract many people as the product are new in this Industry. Our service will be delivered by professional staff which will make our parlour more popular once customers experience our services. Another factor that greatly effects our growth is our initial geographic location. CAN beauty parlour will be located in Masaki near the shopping mall and tourist hotel. Our target market is a small portion of the population compromising of the middle and high income earners who are either employed or operate their own business. Our initial location will tend to gain the business of these customers due to the traffic. Lastly, the demand for healthy beauty products we will be able to make a good business as the health concern is the major issue among the people living in urban areas 5 ACADEMIC THEORIES IN THE BUSINESS PLAN We were able to apply to our project a shared leadership once we divided our team in three different parts according to the tasks we were able to take responsibilities for different parts of the business plan. We learned that everyone can work towards a common goal and there is no need to be just one separate leader.   Every member has a share in helping to lead the group. With the experience of leadership we also showed the importance of being ethical leaders, Ethical leadership is very important in any organization. . We were also able to analyse the current situation of the beauty industry attractiveness and profitability by using Michael Porters five forces. The Business plan was a great example for us to apply our knowledge of our academic theories. Our small group was able to make our business plan very effective since we had meetings every week we were able to keep it going without much toil. Another topic which came to our help is the SWOT analysis this frame work helped us to identify our competitors and where our firm stand by identifying our strengths and weaknesses, and also the business model the use off differentiation strategies here we displayed our competitive advantage using the natural beauty products which is different from our competitors. The use of the those theories helped us to increase our knowledge as we applied the in the real situation and see it working. By using the roles in making the business plan will help us a lot in our effort to make our job easier in the future. . 6 ADVANTAGES AND LIMITATION OF BUSINESS PLAN The main importance of the business plan is the industry analysis as well as market plan. It is through the industry analysis that businessman will be able to fully known the current market situations and also thoroughly identify it competitors. The industry analysis allows an entrepreneur to initiate the first decision whether to enter the market as well as the final.. A well written Business Plan is the true picture of any business because it gives details on how you plan to serve your customers and retain them. The Business Plan is important to any business as it is based in operation and management plans. Referring to our business plan the Industry analysis is will give our business an advantage to fully view the current market situation and thoroughly Identifies our competitors, and also help in knowing our competitive advantage which in this case is the differentiation strategy on our services using the natural Beauty Products. A well written Business Plan make implementation of strategies easier and helps to increase business market share. But the disadvantage could be As we projected that our financial growth will be 5% every year, this will be actionable if the implementation of the strategies will be as planned. Comparing to the actual operation the projected growth in the business plan could be wrong. 7 OTHER AREAS AND CONCLUSION The overall process of developing the business plan was very challenging. As different individuals are involved, it is difficult to come up with one point of view and hence there can be a few of disagreements and then to see the situation again and come to the final decision. I enjoyed making the business plan of the CAN Beauty Parlor with my team members. In the process, I learnt a lot of things about the Salon industry in our country. We took up the chance of introducing the salon services by using the natural products and we are certain that the business will achieve growth or expansion in the future. Conclusions I have benefited from the Business Plan writing in a number of ways: 1. I enjoyed making the business plan of the CAN Beauty Parlor with my team members. In the process, I learnt a lot of things about the Salon industry in our country 3. The overall process of developing the business plan was very challenging . Areas of Improvement I think that the Business Plan writing can be of greater relevance if more time is allowed for sitting together as a team. I have I now realize that getting business done as projected requires much more knowledge and practice of a written Business Plan Lastly, I would like to thank Afsa for her cooperation throughout the exercise in the team and whenever I was stuck she gave me advice, she was always there to give me a hand.. 8

Changes in Frank and Ritas Relationship :: Educating Rita Relationships Plays Essays

Changes in Frank and Rita's Relationship Referring closely to Scenes 6 & 7 in Act 2, discuss the changes seen in Frank and Rita's relationship. In this essay I will be referring closely to Scenes 6 & 7 in Act 2. I will be discussing the changes in Frank’s and Rita’s relationship, and comparing their relationship â€Å"now† as to what it used to be in the beginning of the play. Rita & Frank are the two main or, only characters in the play. This is a powerful and smart way to let the audience or reader to get to know our two characters, their feelings, emotions and thoughts. The audience can see and tell the difference in the characters social status straight away. Frank is a professor in a university, teaching English literature – in his late forties. He is an alcoholic – loves to drink, he has a girlfriend, but this relationship that he’s in is going like all others; failure. He is the type of person that drinks in order to forget his troubles and worries – drink makes him happy, even though it is killing him and his relationship just as well as his career: â€Å"Yes, I probably shall go to the pub afterwards. I shall need to go to the pub afterwards. I shall need to wash away the memory of some silly woman’s attempts to get into the mind of Henry James or whoever it is we’re supposed to study on this course†¦Oh God, why did I take this on? †¦Yes I suppose I did take it on to pay for the drink† This is a conversation that Frank has with his girlfriend over the phone, it immediately goes to prove that he doesn’t really care about his career and the only thing that is on his mind is alcohol. Rita on the other hand is a twenty-six year old, working class woman who wants to get an education, and by doing that she believes that she is going to â€Å"discover† herself. She is in a relationship; she’s been living with her partner for six years. She also wants to learn how to speak â€Å"proper† English. In the beginning of the play Rita and Frank are getting to know each other, and they have nothing more than a â€Å"teacher-student† relationship, although throughout the play we can see that they get to know each other better, and they gain more respect for each other. Everything starts to change when Rita goes off to summer school. When she comes back from summer school Frank is surprised by her appearance

Developing an eBusiness :: GCSE Business Marketing Coursework

Developing an eBusiness Our Service PittsburghModel.com ( www.andrew.cmu.edu/~jrahimi/start.html ) is a database of men, women and children who are interested in modeling assignments in the Pittsburgh and surrounding areas. Some are professional models and others are either looking to make some extra money doing promotional work or are hoping to be discovered. Pittsburghmodel.com serves as an intermediary between agencies and aspiring models. The actual service we are selling works both ways. We are providing aspiring models with a hassle-free approach to becoming discovered while providing local modeling agencies with access to aspiring models, thus granting them more exposure. Referral fees and contract negotiations will be our major sources of revenue, and advertising on our web site will be our secondary source of revenue. PittsburghModel.com is the only web site of its kind in the Pittsburgh Area. Although there are thousands of modeling web sites on the Internet where one can submit pictures and profiles in order to be considered for modeling, PittsburghModel.com is different. We take into account that modeling is a very personal process, thus, our services are targeted for a local market, where we can build lasting relationships with our models and agencies. The fact that we are only working with aspiring models in the Western Pennsylvania area will make our business and services very exclusive. Models that submit their profile onto our web site will be treated as individuals, not statistics, and since we are putting forth a personal approach with our models, they will have confidence and trust in PittsburghModel.com. We generally accept men and women of all weights and heights as well as children of all ages. What most people don't realize is that there are modeling opportunities for everyone. Our potential customers are men, women, and children that are either professional models looking for more exposure, or aspiring models that want to give a shot at modeling. The fact that this is a hassle free environment, our primary customers will be aspiring models. On the other side of our business will be the local modeling agencies. We will work with all of the major agencies in Pittsburgh and guarantee them more exposure and access to models, in return for a referral fee and future contract negotiation fees. Each model has at least one picture and a profile which includes all of the model's vital information as well as other information about availability, experience and interests.

Harper Lees To Kill A Mockingbird Essay example -- Harper Lee Kill Mo

Harper Lee's To Kill A Mockingbird In the novel by Harper Lee named, To Kill a Mockingbird, there is one main tragic event that occurs. The feelings and expressions dealt with in the novel are seen through the eyes of the main character, named Scout. In the novel Tom Robinson is a black male accused of rape in Maycomb County. During the same time period as the novel there were many historical events that were almost identical in setting and conclusion. There were many things that happened leading up to the court case that foreshadowed Tom Robinson’s inability to be found innocent of the charges. The Scottsboro case and the case in the novel are similar in many ways, especially in that they ruined the lives of blacks over false accusations. An event that was very much similar in nature to the novel was the Scottsboro trials. The Scottsboro trials involved nine young black males who were charged with the rape of two white females on a train. The black boys on the train got into a fight with some white males, which was the beginning of their worst nightmare. The two women on the train that made the accusations saw an opportunity to stage a rape claim. The two women in the Scottsboro case were from poor families living in African-American communities. In the 1920's and 1930s it was not common for white families to live in black communities. Even though there were a few that lived in the black communities, they were not thought highly of. The two women's names were Victoria Price and Ruby Bates. During the court case, â€Å"Another witness claimed that he had let Price use a room for prostitution and that she turned down a white man once because it was ‘Negro night’" (Greatest). Ruby Bates’ situation was not much bet... ...onvicted of a crime that he didn’t commit, which eventually led to his death. The town of Maycomb committed a sin, by killing a mockingbird. Works Cited: "The Greatest Trials of All Time." The Scottsboro Boys. 1998. Court TV Online. 13 Feb. 2002. <http://www.courttv.com/greatesttrials/scottsboro/players.html>. Johnson, Claudia Durst. Understanding To Kill A Mockingbird. 1994. Think Quest. 13 Feb 2002. < http://library.thinkquest.org/12111/scottsboro/rubybate.htm>. Linder, Doug. ""The Scottsboro Boys" Trials ." Biographies. 2002. . . <http://www.law.umkc.edu/faculty/projects/FTrials/scottsboro/SB_biog.html>. Lee, Harper. To Kill a Mockingbird. New York: Time Warner, 1982. "Scottsboro An American Tragedy." People & Events. 2000. PBS <http://www.pbs.org/wgbh/amex/scottsboro/peopleevents/index.html>.

Discuss research into different type of attachment Essay

Mary Ainsworth conducted two naturalistic observations, one in the rural community of Kampala in Uganda which lasted for two years and the other in the urban city of Baltimore which had lasted for one year. The aim of this observation was to look at a mother and infant interaction. In both study she used the same number of participants, which were 26 mothers and their infants. Using the strange situation she found three different types of attachments that were displayed by the children and the fourth found by Main and Solomon. The first study in Uganda she found that some mothers were more sensitive to their infants needs meaning that, they were more capable of providing more details about their infants. The infants of these mothers were ‘securely attached’, this means that in their mothers’ presence they cried little and were more eager to explore. This secure attachment led to the infants being more independence because they used their mothers as a secure base that they could run to in time of danger. The second observation took place in Baltimore, America. In this study she and her team did not use a behaviour checklist which means that there was not certain thing that she was looking for, for example she did not have a paper where she wrote all the behaviour that she was looking for such as anger or sorrow and ticked them off when she witnessed it, she was purely just writing what she had seen. In this observation she found that mother were more sensitive to their infants for the first three months of their lives, meaning that in the one year that she had studied them, only for the first three months the mother, who was classified as a secure base responded more to the infants needs during that time period. Learning theorist found this confusing, this is because from their understanding, responsiveness to behavioural social releasers, such as crying should act as a reinforcer and increase the crying, but this was different Anisworth predication which was that behavioural social releasers decrease the caregiver responsiveness. One limitation of these studies is that because it was a longitudinal study, which means that it went over for a long period of time, it may have caused  participant attrition, where participants drop out of the study and this may cause problems for her, such as she may not have yet found what she needed. but one strength of the study being longitudinal is that the mother may become more comfortable with the fact of someone observing them so this could led to them being more free and able to express themselves better, and this would be an advantage for Mary as she will witness the mothers true personality and behaviour. One limitation of the Baltimore study alone was that her study was not operationalised; meaning that she did not define what she was observing and this could lead to her finding irrelevant information. In the Baltimore study we saw that Mary Anisworth conducting her research using the Strange Situation. This method was used to test the nature of attachment systematically. the aim of this was to see how infants behaved under condition of mild stress and novelty, this stress was created by a presence of a stranger and by separation from caregiver; this is tests stranger anxiety and separation anxiety. The strange situation also tries to encourage exploration by placing infant in a novel situation which tests the secure base concept. This research takes place in a novel environment, this is a 9Ãâ€"9 foot square marked off into 16 squares, and this was to help mark the movements of the infants. This method consists of eight episodes, each used to emphasise certain behaviours; the behaviour that was assessed was stranger anxiety, this is the distress shown by an infant when approached or picked up by someone who is unknown to them. The second behaviour assessed is separation anxiety, this is the distress revealed by infants when separated from its primary attachment figure. And the last behaviour assessed was Reunion behaviour this is the behaviour shown by infants when reunited with their mother. The results in a strange situation are collected by a group of observers who record what the infants are doing every 15 seconds. Aniworth et al (1978) found that there are three types of attachment that infants had with their caregiver. One of the attachment found was the secure attachment, this is when an infant has a strong and cooperative interaction with their caregiver. These types of infants properly will not cry if their caregiver leaves the room, but when feeling scared they use their caregiver  as safety net that they run to seek close bodily contact and although they may not want to leave their caregivers side prematurely, they are easily soothed. They seek and are comfortable with social interaction and intimacy. The securely attached infants are more independent this is because they use their caregiver a secure base and because they know that they have this secure base they tend to explore their environment more. Another type of attachment is Insecure-avoidant, this attachment is formed of children that don’t like to socially interact with others and tend to avoid intimacy. In the strange situation, when separated from their caregiver these children show little response and do not seek proximity of their caregiver on reunion. If the infant is picked up they may show little or no tendency to cling or resist being put down. These children do not need their caregiver to be there for them to explore, they are quite happy to do it without them. They may also become quite angry because their attachment needs are not met. Furthermore another type of attachment is insecure-resistant, these are children who both seek and reject intimacy and social interaction. When separated with their caregiver they show intense distress, on reunion they may resist being picked up while also trying to maintain proximity. The last type of attachment was found by Main and Solomon (1986) when they done a re-analysis of over 200 strange situation. The fourth attachment that they found was Disorganised; this type is characterised by a lack of a consistent patterns of social behaviour. These children can show strong attachment, which is suddenly followed by avoidance or looking fearful towards their caregiver or displaying odd movements such as stumbling. In conclusion, there are four types of attachment that children display these are secure attachment, insecure- resistant, insecure avoidance and disorganised and a way to identify what type of attachment a child has is to use the strange situation method, that was first conducting by Mary Anisworth.

Human Resource Letter

Dear Ms. xxxxxx: As all Rite Aid policies, please consider this letter a formal complaint against Mrs. Maria Mejia for intimidation along with failing to pay proper wages. First and foremost, my name is blah blah and I was hired on December xx, 20xx as a supervisor at store # 1234. I am writing to express my disappointment with the company. I started with a high desire to work for a company that offered a high principle of ethics, honor, and respect for its employees. Now a little over two months later I am presenting my resignation. Unfortunately I was placed in a store that is very unorganized and not properly managed. Approximately three weeks after being hired I was given the responsibility of closing without the proper tools to do so. Yet, I ensured the daily tasks were completed to the best of my ability. Still, Mrs. xxx was rarely pleased with the outcome. On several occasions while she was instructing me of my duties she would use terms like â€Å"you better†, and also she would remind me that I was on a 90-day probation. I considered it unprofessional for her to use such phrases to intimidate me. I felt as if she was insinuating that she had control over me and she had the authority to fire me when she pleased. While giving orders her tone of voice was rarely polite. Mrs. Mejia has a recording of a discussion both her and I had, where she is giving me feedback and advise about my responsibilities, that day she was actually very courteous and polite. Though majority of the time while approaching her employees she tends to be very demanding. Most employees at this store would agree that they are unappreciated by her, and their accomplishments are almost never acknowledged. It is difficult to work with such an insatiable manager. Also, during the hiring process I was told that as a supervisor I was guaranteed 35 to 40 hours a week, the first two or three weeks there was no problem, however as I gained experience and more responsibility my hours were cut down to 25 hours a week. When I asked her if there was a reason why, she simply claimed that she has no payroll to ay for more hours. However certain non-management employees were give 40 hours or more. Constantly Mrs. Maria Mejia requests employees to come in on their days off or before their scheduled time due to her lack of organization and responsibility. On several occasions that included January 19, 2013 and January 29, 2013, I was asked to work without a lunch and I would be paid a lunch premium. To this date I have worked about 4 shifts without a lunch break and ha ve only been paid one lunch premium. I have been employed by Rite Aid for about over two months now and have not received my system log in, which causes me not being able to provide manager approvals and overrides for the employees. As a supervisor I am also aware that it is unlawful to have employees work of the clock, still Mrs. Mejia would ask me to have the employees work off the clock and she would fix their clock-in at a later time. Ms. Jxxxx Nxxxx and Mr. xxxx xxxxx have also witnessed the irresponsibility portrayed by the manager. On February 14, 2013 The aforementioned incidents have brought me mental anxiety, which has forced me to resign to my position. It is my opinion such behavior does not conform to Rite Aid policies of appropriate workplace behavior as set out in the company’s Code of Ethics and Business Conduct. I feel violated by Mrs. Mejia’s behavior and believe that I have been mistreated. I am aware that lodging a complaint against Mrs. Maria Mejia will require a formal investigation and I am prepared to participate as needed. I appreciate your time and I apologize for the length of this letter, however I felt the need to express my uncomfortable experience. Human Resource Letter Dear Ms. xxxxxx: As all Rite Aid policies, please consider this letter a formal complaint against Mrs. Maria Mejia for intimidation along with failing to pay proper wages. First and foremost, my name is blah blah and I was hired on December xx, 20xx as a supervisor at store # 1234. I am writing to express my disappointment with the company. I started with a high desire to work for a company that offered a high principle of ethics, honor, and respect for its employees. Now a little over two months later I am presenting my resignation. Unfortunately I was placed in a store that is very unorganized and not properly managed. Approximately three weeks after being hired I was given the responsibility of closing without the proper tools to do so. Yet, I ensured the daily tasks were completed to the best of my ability. Still, Mrs. xxx was rarely pleased with the outcome. On several occasions while she was instructing me of my duties she would use terms like â€Å"you better†, and also she would remind me that I was on a 90-day probation. I considered it unprofessional for her to use such phrases to intimidate me. I felt as if she was insinuating that she had control over me and she had the authority to fire me when she pleased. While giving orders her tone of voice was rarely polite. Mrs. Mejia has a recording of a discussion both her and I had, where she is giving me feedback and advise about my responsibilities, that day she was actually very courteous and polite. Though majority of the time while approaching her employees she tends to be very demanding. Most employees at this store would agree that they are unappreciated by her, and their accomplishments are almost never acknowledged. It is difficult to work with such an insatiable manager. Also, during the hiring process I was told that as a supervisor I was guaranteed 35 to 40 hours a week, the first two or three weeks there was no problem, however as I gained experience and more responsibility my hours were cut down to 25 hours a week. When I asked her if there was a reason why, she simply claimed that she has no payroll to ay for more hours. However certain non-management employees were give 40 hours or more. Constantly Mrs. Maria Mejia requests employees to come in on their days off or before their scheduled time due to her lack of organization and responsibility. On several occasions that included January 19, 2013 and January 29, 2013, I was asked to work without a lunch and I would be paid a lunch premium. To this date I have worked about 4 shifts without a lunch break and ha ve only been paid one lunch premium. I have been employed by Rite Aid for about over two months now and have not received my system log in, which causes me not being able to provide manager approvals and overrides for the employees. As a supervisor I am also aware that it is unlawful to have employees work of the clock, still Mrs. Mejia would ask me to have the employees work off the clock and she would fix their clock-in at a later time. Ms. Jxxxx Nxxxx and Mr. xxxx xxxxx have also witnessed the irresponsibility portrayed by the manager. On February 14, 2013 The aforementioned incidents have brought me mental anxiety, which has forced me to resign to my position. It is my opinion such behavior does not conform to Rite Aid policies of appropriate workplace behavior as set out in the company’s Code of Ethics and Business Conduct. I feel violated by Mrs. Mejia’s behavior and believe that I have been mistreated. I am aware that lodging a complaint against Mrs. Maria Mejia will require a formal investigation and I am prepared to participate as needed. I appreciate your time and I apologize for the length of this letter, however I felt the need to express my uncomfortable experience.