INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT ON THE SALES OF KFC PRODUCTS

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INFLUENCE OF CUSTOMER RELATIONSHIP MANAGEMENT ON THE SALES OF KFC PRODUCTS

Chapter one

INTRODUCTION

1.1 Background for the Study

According to studies, in this ever-changing and dynamic business climate driven by globalisation, the service industry must provide a decent product for the consumer while keeping the pricing affordable and interacting with clients in a friendly language (Fozia, Shiamwama, and Otiso, 2014).

This is significant since the number of customers increases revenues and, as a result, the company’s profitability. This is due to the high quality that buyers anticipate from the company’s products. To that aim, many service businesses and organisations compete fiercely in order to meet the demands and expectations of their clients.

As a result, organisations (both foreign and domestic) are continually investing in product quality, brand promotion, and providing excellent customer service in order to leave a lasting impression on their clients and position their product in a competitive market.

Despite the aforementioned tough competition among various companies, many companies have spent a significant amount of money on advertising and promotion, which has a negative impact on the company’s earnings.

Many profit-oriented businesses are seeking for a new dimension of developing brand loyalty for their products from potential clients in order to improve sales patronage. To this purpose, Customer Relationship Management (CRM) has been established as a successful technique for retaining both potential and new consumers.

According to the notion of client Relationship Management (CRM), in order for a company to maximise profits, it must develop its client base. To accomplish this, the organisation must establish a relationship with each valued consumer and ensure that they have obtained specific knowledge about them (Kotler, 2003).

Customer Relationship Management (CRM) also requires identifying, satisfying, and influencing customers’ behaviour in order to rein them in through effective communication (George, Emmanuel, Christiana, & Rachel, 2011). According to Kishore (2009), CRM has two distinct and crucial strategies.

The first strategy is for a company to self-determine the cost and build a long-term customer relationship; the second is to maintain this relationship through the following tactics: collection and analysis of accurate data, ensuring recent and up-to-date marketing campaigns, and developing a problem-solving ability for customers.

According to Julita (2011), there is a fine line between a consumer and a customer; both terms are often used interchangeably in the business world, which adds to confusion. When you talk about a customer,

it refers to someone who buys goods and services from someone else, whereas a consumer purchases things and services for personal consumption.

In economics, a consumer is defined as either a single person or an entire organisation who utilises a specific service. For example, if someone sells coffee and then buys coffee from a coffee maker, it is almost certain that the restaurant purchased the equipment for the benefit of its consumers or guests.

In this case, the restaurant symbolises a customer rather than the actual consumer. Furthermore, in a similar scenario, if you go directly to the coffee maker and buy coffee for your family, you are the true consumer. In layman’s terms, a client is somebody who purchases a product for purposes other than personal usage.

A customer’s importance cannot be overstated because he or she represents the company at the workplace, over the phone, and by mail or email. In another level, Welsh (2008) defines a customer as a person capable of bringing an organization’s want to their want,

and it thus becomes the major responsibility of the organisation to handle the customer successfully and fulfil the organization’s and customers’ goals.

Service providers or organisations that meet the needs of the targeted customers’ audience through various products and services must stay ahead of the competition and be forced to focus on the customers and value them as individuals,

as well as develop personalised relationships. Customers must be aware of the items available in the market, and the company must adjust its products to meet the demands and requirements of its customers.

Based on the foregoing, the general essence of customer relationship management is determined by how well a firm manages its potential clients. It is easier for newly founded industries with few staff and few customers to serve the needs of their consumers; nevertheless, as your client base grows, you must add links to the customers’ service chain (Khwala, 2016).

Here’s where customer relationship management comes into play. Customers’ perceptions and feelings about a brand play a significant role in deciding its success or failure.

As a result, businesses attempt to establish strong brand equity for their brands through a variety of methods, including providing excellent customer service. It doesn’t just end with exceptional customer service; firms have taken steps to use the ‘goodness’ of customer relationship management.

As a result of the foregoing, numerous service businesses, including the food industry, have aggressively used CRM to enhance sales. Food, after air and water, is regarded as the third most vital element for life. In fact, according to Abraham Maslow’s hierarchy of human needs, food is the most basic necessity for survival.

In this aspect, food is a crucial component of living a good life, bringing pleasure while also relieving stress for human survival (source 30). Because of the enormous benefits associated with food intake, food production has grown safer, more delicious, diverse, convenient, and always available for consumption.

To that aim, a survey by La Trobe University (2009) demonstrates that the food sector is one of the largest when compared to other industries. Thus, the food sector must manage food cultivation, processing, and production effectively (Ejaz, Ahmed, & Ahmad, 2013).

Despite the increased demand for food restaurants, customers are getting more educated and conscious, so they evaluate nutrition and quality to menu prices and services provided.

In this example, a small restaurant with little resources would struggle to compete actively with huge corporations in terms of advertising and public relations techniques in order to generate consumer traffic.

As a result of the foregoing, the only option for a small restaurant to achieve long-term success is to implement a distinct marketing approach that incorporates strong customer relationship management practices.

Based on this understanding, an explanation of how exceptional customer service has translated into business sales will be provided, with KFC stores in Ikeja City Mall and Palms Lekki in Lagos serving as reference points.

1.2 Statement of the Problem

With the growing demand and patronage for Quick Service Restaurants, the importance and value of customer relationship management cannot be overstated.

In recent years, poor customer relationship management has resulted in lower retail traffic. As a result, the company’s revenues and profitability fall, potentially jeopardising the company’s long-term viability if not properly managed.

Against this backdrop, the purpose of this research is to evaluate whether KFC, as a food industry, has implemented CMR and, if so, what impact it has on KFC product sales; therefore the study.

1.3 Research Objectives

The precise aims include:

This study aims to determine how customer relationship management affects KFC product sales in Lagos commercial malls.

• Identify the impact of customer relationship management on KFC product sales in Lagos shopping malls.

· Evaluate the impact of customer relationship management on KFC product sales in comparison to other parameters.

1.4 Research Questions.

The following research questions will be used to determine how customer relationship management affects KFC product sales in Lagos retail malls.

· How does customer relationship management impact sales of KFC goods in Lagos malls?

· How does successful customer relationship management affect KFC product sales in Lagos shopping malls?

· How much influence does customer relationship management have on KFC product sales compared to other factors?

1.5 Significance of the Study

The purpose of this study is to look at how customer relationship management affects KFC product sales. The significance of this study will be classified into three categories: educational, media enterprise/practitioners, and scholarly.

The suggested study aims to help students understand ‘Customer Relationship Management’ and how it applies to sales.

The proposed study would enable KFC management understand the impact of strong customer relationship management on product sales.

Ø Competitors will be educated on the value of CRM for business management.

Ø To scholarship: The suggested study will assist and lead future research. The work also provides a foundation for future research in this field.

This study will shed light on the impact that strong customer relationship management has on sales in firms or organisations, as well as the many methods for monitoring and managing relationships with customers and clients.

1.6 Scope of Study

This study will focus on understanding the concept of Customer Relationship Management and its impact on product sales, utilising KFC as a case study. This study will determine whether CRM has a good or negative impact on product sales at KFC stores.

1.7 Limitations of the study

There are several anticipated glitches, which may restrict the reliability of this research. Some of the predicted restrictions include time and funding availability, a limited sample size, the novelty of the CRM idea,

and financial limits in doing the research. Despite the challenges mentioned above, the researcher endeavoured to elicit honest comments from the participants in the focus group discussion, and the results would be reported honestly.

1.8 Operational definition of terms

To ensure clarity and avoid ambiguity, the following terminology will be defined as they are used in this study.

·Influence: The ability to affect someone’s decision or behaviour through persuasion or lobbying.

CRM refers to promptly reacting to client demands, prioritising customer happiness, and maintaining pleasant interactions.

Sales are financial transactions between a producer and a customer.

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