Using E-CRM Practices In Sainsbury: A Marketing Manager’s Decision Making Process

Background

At present, I am working as a marketing manager in Sainsbury and my key responsibilities includes developing business strategies, ensuring high degree of customer satisfaction, achieving sales targets etc. Over the past few years, I am able to accomplish all my responsibilities in the best possible manner. In the last month, I have taken decision to implement E-CRM practices within all stores of Sainsbury UK. This will help the business to attract more customers and enhance its relation with existing customers.

 Sainsbury and its management decided to explore the issue behind this decision as implementing the decision was a very costly and time consuming process. Huge amount of time, money and technological resources were invested in implementing the decision which I have taken. In the modern era, the competition among businesses has become so intense that it is no longer easy for retail businesses to sustain in the marketplace Rayner, (2013). Furthermore, competition has also resulted in creating obstacles for Sainsbury in terms of attracting new customers and retaining the old ones.

As per my opinion, the decision was forced by external circumstances such as issues in retaining customers, attracting new ones and increasing level of competition. It can be stated that areas such as sales, profitability and overall performance of the organization were getting highly affected by the issue. At the same time, the decision of implementing ECRM practices in all stores of Sainsbury UK was also a part of the organization’s overall planning. Nowadays, customer relationship management (CRM) has become the greatest asset of any business enterprise. The rationale behind this is that CRM assist organizations in maximizing and enhancing overall corporate performance by interacting with customers more effectively Rath, (2008). Furthermore, the practices also assist in developing strong brand image of a company in the marketplace.

Sainsbury is planning to double up its existing market share in the next 10 years and therefore the use of ECRM practices will support in attracting new customers and retaining the old ones in the best possible manner. I can surely say that by integrating technology in customer relationship management practices can help an organization to maximize the value of customer interaction easily.

For a period of five months, I have analyzed the cost and risk associated with the decision which I have taken. Based on the analysis carried out, I can say that if the ECRM practices were not adopted then the company would have faced issues in increasing sales and profits in long term. The cost of losing old customers is also very high for Sainsbury. Apart from this, the risk associated with neglecting ECRM strategies is linked with the issues which company can face in long term sustainability. Employee resistance towards adoption of ECRM software was also a risk associated with the implementation of the decision which I have taken. It can be argued that failure in complying with the need and requirement of target market is also a major risk of not going down this track. The alternative opportunities present with Sainsbury are not under taken as they are not able to adequate amount of return to the business.

The Need for E-CRM Practices

There are different models of decision making which can be taken into consideration by organizations and individuals Lawrence & Kleinman, (2010). Furthermore, each model has its own limitations and benefits which need to be taken care of.  Some models are discussed below as:

• Rational or classical model– To understand the decision making process, rational model is the first attempt which can be made Singh, (2010). Here, the key reasons are identified to understand why the decision is required to be made.      
• Bounded rationality model- It is also referred as administrative man model and it lays emphasis on the fact that people usually settle for less at the time of making decision Grundy, (2014). The reason behind this is that the decisions which people expect to take demands higher processing capabilities and time.   
• Retrospective decision model – The model was developed by Per Soelberg, and it highlights the fact that how a person rationalizes his/her choice after making a certain decision Cavusgil, & et al., (2015).

It can be stated that, I feel that classical model of decision making is useful because it helps in identification of problems and decisions clearly. I always prefer to opt for the classical model of decision making as it helps in defining clear reasons for taking decisions and considering all the best possible alternatives before selecting one.     

I am well aware of the fact that to make sound decisions, a person is required to use the tools and techniques available for decision making. The decision matrix is an important tool which can be taken into consideration by individuals. As per the view of, Rokach, & Maimon, (2008) the matrix lays emphasis on evaluating the various options available in table format and scoring each alternative on the basis of certain parameter. Another tool for decision making is T- chart in which all pros and cons of alternatives solutions are weighted to arrive at a decision.

According to Leonard, (2007) decision tree is the most common tool which is being used for making a decision. As per this tool, graphs are developed by anticipating each option and its outcomes in a precise manner. Furthermore, statistical analysis is used to determine the best possible solution Sims & Quatro, (2005).

I prefer multi-voting and the decision tree as the most effective decision-making tools. I have used decision tree in order to arrive at a decision of implementing ECRM practices within Sainsbury. The tool has provided me with an opportunity to carry out an appropriate comparison of different alternatives available to resolve the issue. On the other hand, I have also used the tool such as multi-voting as it has supported me to involve multiple people in the process of decision making. The tool has helped in developing a large list of options available and finding out the best possible solution among all.

I prefer the conceptual style of decision making and the rationale behind this is that it is more suitable as per my nature. Another reason for selecting the conceptual style of decision making is that I always look for issues, problems or challenges artistically and prefer to think outside the box. At the time of making the decision, I seek for determining the long-term impact of decisions instead of looking forward to short term wins. I like to take risks, and this helps me in getting advantage over other by improving more core competencies.

Decision Making Models and Tools

As per the view of Zimmerman & Bell, (2014) directive, analytic, behavior and group decision making are some common types of decision making style. I believe that using styles such as behavior decision making consumes lots of time and efforts. Thus, it can result in delaying the entire process of decision making. On the other hand, Parnell, (2012) argued that a person with a directive style of decision making is aggressive in nature and expects results on the immediate basis which is not possible in every situation. It also involves quick decision making which increases the risk and chances of obtaining negative outcomes. A directive decision maker usually makes a decision on the basis of his/her knowledge and understanding. I would prefer to take the calculative risk and gain long term and therefore, conceptual style of decision making is more suitable for me.

At the time of taking a decision regarding implementation of ECRM system in stores of Sainsbury, I have also consulted with staff members and stakeholders. I have used group decision-making model also before taking the final decision. I am well aware of the fact that decisions of a business enterprise affect staff members and stakeholders in either direct or indirect manner. Furthermore, encouraging suggestion from staff members and stakeholders helps in developing a sense of satisfaction among them Turban, King & Lang, (2010). Stakeholders start perceiving themselves as a valuable part and therefore give their best towards the success of the organization Cavusgil, & et al., (2015).

The process of implementation of decision started with the development of strategies and a team who were held responsible for carrying out the entire implementation in the desired manner. Here, each staff member was assigned a specific role which was required to be accomplished by them. At the same time, training sessions were organized for staff members to render them with adequate knowledge about how ECRM software can be used. As per the view of Kim, Zhao & Yang, (2008) carrying out changes in an organization is not an easy task and the management is required to deal with various issues and challenges.  

Over the past few year Intuitions have gained more value and have become very important in the entire process of decision making. Furthermore, it is because of intuitions that experienced decision makers can identify the best possible solution to a problem without evaluating different alternatives available O’Neal, (2012). I believe that using intuition in the process of decision making helps in enhancing the speed of decision making. However, Cavusgil & et al., (2015) has argued that it is not necessary that intuition always provides positive outcomes and the risk related to such decision making is always high. This is one of the main reasons why people prefer rational decision making over the decision which is made on the basis of intuition.

Intuition in Decision Making

I always avoid using intuitions in decision making when I am stressed up or in a bad mood. The rationale behind this is that during bad mood, the subconscious mind is more likely to respond negatively. It can be stated that in order to make decision more effective, one can also add up some elements linked with analytical approach of decision making. It can be asserted that, I am using intuitive decision making even in my day to day life. For example, my intuitions plays very important role in selecting the type of meal I want to eat, deciding what to wear for the day, carrying out an evaluation of upcoming sales targets in store etc.

According to the viewpoint of Chapman, (2015) intuitive decision making is completely different from the decisions which are drawn on the basis of common sense. In intuitive decision making, a person makes use of sensors and information from external environment to draw a decision.  

After writing this reflective, I have learned that I am a good decision maker. The rationale behind this is that I am not restricted to one particular tool of decision making. It means that on the basis of situation present, I adopt a particular style. For example, to make day to day decision, I use intuitive decision making. On the other hand, for making a decision for long-term growth and success of an organization, I prefer style such as conceptual and group decision making. Furthermore, I have also learned that I carry out effective analysis of each and every alternative available and it results in choosing the best possible alternative. This reflective has helped me in getting aware about my decision-making style and effectiveness of the same. It has highlighted my strengths, weaknesses and provided me with an opportunity to carry out improvements in future.   

It can be stated that the decision which I have taken has been implemented in the best possible manner. However, obtaining desired results has taken much time then what I was expecting. Thus, there are certain things which I need to improve to become effective decision maker. For example in future, I can prepare a list of fundamental difficulties which I will face at the time of decision making. This will support me to develop strategies which I can use to deal with the difficulties or issues which can be faced during decision making. In addition to this, in future, I will evaluate all the alternatives available with the help of decision matrix. I will also encourage suggestions and opinions from others to explore additional alternatives. On the other side of this, I will also ensure to have a realistic and practical view of all the consequences.  

References

Cavusgil, S. & et al., (2015). International business : The new realities (2nd edition. ed.). Frenchs Forest, N.S.W.: Pearson Australia.

Chapman, K. (2015). Decision and game theory : Perspectives, applications and challenges(Economic issues, problems and perspectives). Hauppauge, New York: Nova Science.

Grundy, T. (2014). Demystifying strategic thinking : Lessons from leading cEOs. London: Kogan Page.

Kim, C., Zhao, W., & Yang, K. (2008). An empirical study on the integrated framework of e-CRM in online shopping: Evaluating the relationships among perceived value, satisfaction, and trust based on customers’ perspectives. Journal of Electronic Commerce in Organizations, 6(3), 1-19.

Lawrence, K., & Kleinman, G. (2010). Applications in multicriteria decision making, data envelopment analysis, and finance(1st ed. ed., Applications of management science, v. 14). Bingley, UK: North America.

Lawrence, K., & Klimberg, R. (2010). Advances in business and management forecasting (Advances in business and management forecasting, v. 7). Bingley: Emerald.

Leonard, B. (2007). Multidimensional decision making (Managerial finance, v. 33, no. 12). Bradford, England: Emerald.

O’Neal, C. (2012). Data-driven decision making : A handbook for school leaders(1st ed. ed.). Eugene, Or.: International Society for Technology in Education.

Parnell, G. (2012). Handbook of decision analysis (Wiley handbooks in operations research and management science). Hoboken, New Jersey: Wiley.

Rath, P. (2008). The why of the buy : Consumer behavior and fashion marketing. New York: Fairchild Books.

Rayner, C. (2013). How to sell to retail : The secrets of getting your product to market. London: Kogan Page.

Rokach, L., & Maimon, O. (2008). Data mining with decision trees : Theory and applications(Series in machine perception and artificial intelligence, v. 69). Hackensack, N.J.: World Scientific.

Sims, R., & Quatro, S. (2005). Leadership : Succeeding in the private, public, and not-for-profit sectors. Armonk, N.Y.: M.E. Sharpe.

Singh, S. (2010). Handbook of business practices and growth in emerging markets. Hackensack, NJ: World Scientific.

Turban, E., King, D., & Lang, J. (2010). Introduction to electronic commerce (3rd ed., International version / ed.). Upper Saddle River, N.J.: Pearson Education.

Zimmerman, S., & Bell, J. (2014). The sustainability mindset : Using the matrix map to make strategic decisions. San Francisco, CA: Jossey-Bass, Wiley.