Sales Assignment 4: CRM Program for Hardees

Assignment: Sales Management

Topic : CRM program for Hardees

Submitted To: Prof. Agha Muhammad Ali

Submitted by:

Hamza Amjad

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Zaman Ali Faizan Aziz Irfan Saleem

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Faisal Sabih Section : A

Sales Assignment 4: CRM Program for Hardees

Customer relationship management (CRM) for Hardees

CRM is the process through which companies create relationships with the customers and its the process that turns customer data into customer loyalty. Hardees should make the basic four steps to be followed for creating good relationship with customers and help develop and target their proper customers. These steps are following:     Collecting Customers Data Analyzing Customers Data and Identifying Target customers Developing CRM programs Implementing CRM programs

1. Collection of customer Data

Before collecting data from customers Hardees should cover following information to be in data collection tools: y y y y y y y Name of customer: Date of Birth : Occupation: NIC : Cell phone # : Any Complaints: Any suggestions for improvements:

Data collection techniques:

y Ask of their Identifying Informations: Customers are generally not interested to fill the cards if asked by employees and only 10-15 % customers fill the cards by their choice. Customers are reluctant to give the information like cell phone # because of privacy and also sales associates might forget to ask for the information or decide not to spend the time getting and recording it during a busy time. Hardees should apply some techniques to collect data from customers. These are as follows. Discounts: Ask customers (who have come there and will sit there to have a meal) to fill the customers data information card of Hardees and offer 10 % discount on the meal if they help filling the customer data card.

Sales Assignment 4: CRM Program for Hardees

Apply the same procedure to home delivery customers ask them the data on the phone and offer them 10 % discount on their meals if they help provide you required data. y Upsize: Ask customers (who have come there and will sit there to have a meal) to fill the customers data information card of Hardees and in return offer the upsizing of their deal free of cost. This will help attract customers take interest in filling the information cards.

Apply the same procedure to home delivery customers ask them the data on the phone and offer them Upsize on their meals if they help provide you required data. y Frequent Shoppers Card:

These cards should be provided to the customers who patronize Hardees and are helpful in collecting data from these customers. These programs will offer two benefits for the Hardees. 1. Customers will provide demographics and other information whenever they make purchase from the Hardees. 2. Customers are motivated by rewards offered like upsize and discounts on deals to increase the number of visits and the amount purchase on every visit. y Add-on free offerings: ask the customers to help to fill the information cards or to provide you the information on telephone for home delivery customers. Offer them the eatables like if customers if purchasing any burger without fries then offer to them fries or a cold drink or any other thing if they help you provide the required information.

2. Analyze customer Data and Identify Target markets: Analysis of Customer Data: Market basket Analysis: Hardees should make a market basket analysis which is a specific type of data analysis that will focus on the composition of the bundle of products of Hardees or meals purchases by the customers of Hardees during a single visit to Hardees. Analyze the customer data collected during the data collection procedure and offer the customers the birthday party from Hardees when any of the customers birthday comes. Offer them the discounts on the birthday if they celebrate it on Hardees.

Identification of the Target Customers: After all this data collection and analysis for Hardees fast food, company will develop a score or number indicating how valuable customers are to Hardees. This can help determine which customers to target.

Sales Assignment 4: CRM Program for Hardees

The target customers of Hardees could be the offices, families at evening and people who want to have quick meals ready to eat and the people who can spend more money on fast food. Customer Pyramid: There is the rule in the business that 80% of the companys sales and profits comes from top 20 % of customers of the company and is often called 80-20 rule. Hardees should make different segments for identifying its customers and to target its best customers who frequently visit the store and spend much money in a visit to Hardees. These segments can be described as: 1. Platinum segments: In these segments, Hardees should identify its customers who come regularly to the Hardees and spend much money in a single visit and these customers fall in this segment and these customers should be retained. These are top 25 % of Hardees customers. 2. Gold segment: These are customers next 25 %. These customers have low life time value than platinum because these are the price sensitive customers but still the purchase significant amount of meals and fast food from Hardees but not are very loyal as Platinum customers. 3. Iron Segment: these are the customers who want to have less profitable meals and dont want to spend much more on Hardees when they visit it. 4. Lead segment: these customers can cost Hardees lot of money because these are the customers who want to have lot of attention but dont want to spend much more in visit to Hardees. E.g. the customers who come 2 have only drinks from Hardees and just purchase the French fried small pack and sit many hours at the sitting area of Hardees. These customers should be tried to get rid of from the company by not offering just a drink or a French fries if customers purchase it alone. RFM (recency, frequency, monetary) Analysis: Hardees can use this analytical tool to identify its best customers and to help target them. Recency: In this, Hardees has to make a record for how much time before customer has visited the store or how much orders customer has given to Hardees. Collect the data about last time customer has paid the order or has visited the Hardees fast food. Frequently: Hardees has to analyze the data about how much time customer has visited or ordered the fast food from Hardees. Like how many time customer has made the visits to the store. Monetary: This analysis is used to check that how much money customer spends on each visit to the store. How much quantity customers purchase from the Hardees. If customers are families than there are chances that they will spend more money and will purchase more also. And if

Sales Assignment 4: CRM Program for Hardees

individuals come to Hardees than there are chances that they will purchase not much quantity of food but it doesnt means that they are not profitable. This RFM analysis is used to estimate the lifetime value of the customers and then targeting the best profitable customers. Drawback: No Home Delivery: Home delivery is now a days most becoming most important especially in fast food sector. Hardees although is a multinational company now in Pakistan but the most important thing they are missing is the facility of home delivery for the customers all over the city and if not possible than must be nearer areas from Hardees fast food branch. This will help them increase sale through providing facility to the customers and helpful for collecting customers data. 3. Develop a CRM Program: Different thing Hardees should consider while developing the CRM program for customers which are : Retain best customer: Hardees can retain its best customers by different techniques which are as follows: y Effective Marketing: properly communicate your fast food meals and new thing to customers to let them retain in Hardees. Marketing should be through billboards, direct mailing and emailing. Frequent Shoppers Cards: Offer and encourage the existing customers to buy more from Hardees by offering shoppers cards. Like if they visit store frequently than they get discounts on their meals through discount shopper cards. Special Customer Service: Hardees is already providing the special customers services to their existing customers but there is still need for the improvement. They should provide home delivery service to their existing customers also.

Convert good customers into best customers: Hardees should try to encourage its customers to purchase more and be more loyal to Hardees through: Cross-Selling: In cross-selling if customer asks for just the chicken burger then the employee taking the order should also ask for the drink if customer wishes to have it.

Sales Assignment 4: CRM Program for Hardees

Add-on Selling: also called upsize selling is mostly used in fast food corners. Hardees should train its employees facing the customers to ask the customer for upsizing the meals like ask customer that pay just Rs. 15 more and get large French fries free with this meal or any other eatables at Hardees.

4. Implement CRM Program:

The whole work done above like customer data collection and analysis is now to be implemented practically. If this whole program is not implemented or implemented incorrectly, than whole work done above will be in sane