McDonalds Research Customer Relationships Management (CRM) (Research Paper Sample)

Customer Relationships Management
Name of Student
Institution Affiliation
Abstract
Customer relationships have become a vital part of any company. In every sphere of industry organizations have to face problems connected more or less with customer relations. Positive feedback might be a casting vote for success or failure. That is why companies should pay attention to their CRM policy.
This essay focuses on the issues and challenges of McDonald’s customer relationship management; thus, considering its approaches and system. In addition, the issues and challenges they face will be analyzed and will be concluded with suggestions on how they can be improved.
Using primary and secondary research a sufficient amount of data was found and analyzed in order to reach a conclusion. The primary research included interviews with 15 different people and surveys with 20 different people. The participants being those whom have visited McDonald’s in the past six months. The main question posed to the participants were to address and understand the issues and challenges faced by MRCM. The results suggest the following: customers feel McDonald’s does not consider their feedback, there is no reward for loyalty to the brand and there is no strong direction for customer engagement.
The secondary research was concered on researching about MCRM’s current system and the current issues and challenges other researchers are highlighting.
Using both one-to-one communications and Astute Solution’s PowerCenter, McDonald’s is able to monitor and measure the customer relationship throughout the brand using the information database. According to Astute Solutions the purpose was to create real-time access to customer data, provide measurable customer satisfaction results from the national to franchise level and prove system functionability and flexibility that will support evolving business needs.
Furthermore, Schuman (2016), stated that there are three types of customers: the loyal, the ones that detest and the ones who are indifferent of their views. He argued that the third type of customers would aid McDonald’s in implementing its customer relationship management.
The findings conclude that McDonald’s should attempt to builder stronger relationships with customers in order to generate sales and encourge return customers. Despite having a high market share, McDonald’s must enhance its customer experience and improve their products to better shape their brand image and attract new customers.
In order to maximize their customer relationships it is suggested that:
1. McDonald’s should implement the suggested instant feedback options at their ordering counters as well as engage with its followers more on social media platforms such as: Facebook and Twitter.
2. McDonald’s should introduce a loyalty program card, whereby, customers receive points when purchasing meals; thus, after a certain number of meals, perhaps, the “10th” meal could be for free.
3. In order to improve the customer relationship management, McDonald’s should train all employees to ensure that they are aware on how to use the software and how to approach customers and build rapport between customers.
Table of Contents
1. Introduction
2. Literature Review
3. Research Methodology
4. Data Analysis
5. Findings
6. Discussion
7. Conclusion
8. Recommendations
9. References
Introduction
Customer Relationships Management (CRM)
Customer relationships have become a substantial part of business success. Positive feedbacks and content clients are capable of taking the company to the top. Many organizations have realized it and are now concentrating on the customers. They are ready to do almost everything to please the customer (Mitrega & Pfajfar, n.d.). This research will be focused on the methods that the organization uses to attract customers. SWOT analysis will be also included in order to have a more clear-cut idea of the customer policy of the organization.
The main problem that the companies of food-service sector have to face is customer attrition. This leads to the financial losses and to a substantial rise in expenses. This paper will observe the problem of customer attrition and come up with solutions that are likely to change the situation. Moreover, there is a fact that needs to be proved or refuted – Is it possible that bad CRM could lead to customer attrition?
Industry
The food service industry has become an inescapable part of the modern life. Actually, the industry is developing exponentially right now. Moreover, new food production technologies that are being constantly introduced enable the organizations to serve more customers. In addition to that, food service companies tend to expand e.g. to enlarge the number of restaurants (Edwards, Raju & Scott, 2003). However, these factors are now in the background. Relationships with customers define the level of company’s success. “The food service industry consists of many players to keep track of, many different channels for getting products to market, and many different strategies that can lead to success or failure in the space. Add to that the rapid pace of change in food service industry technology as well as an ever changing regulatory environment, and it all adds up to a big challenge for new and even established manufacturers and distributors in the food service industry” (Mitrega & Pfajfar, n.d.). That is why many corporations spend lots of money on public opinion research and are trying hard to establish a contact with each customer.
Organization
In this research as an exemplary organization was taken McDonalds inc. “This is a large company with a high potential” (Edwards, Raju & Scott, 2003). The reason for this choice was that this company has enormous experience in the field of public relations. Moreover, this company has a very strong policy regarding customers. This means that this organization is worth to be taken into account. "McDonald's vision is to be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile" (McDonald's Mission Statement). It goes without saying that corporate spirit is really strong in this organization. “Moreover, only success-oriented people can get a job at McDonalds”.
However, these days even such great qualities are not a key to success. “Customer attrition is very high. To give an example, in comparison with 2008 McDonalds Corporation has lost 11,7% of their loyal clients.” (Awara, 2010). That is why now the board of directors are now reconsidering the corporation CRM policy and are trying to find out what is the reason for a decrease in customer flow.
Issue Identification and Research Objective
“The McDonalds Company has always been attentive to the customers. Moreover, the corporation throughout the years has worked out its CRM policy” (Aitalieva & Panasyuk, 2016). This organization is a real giant of fast-food service industry and their rivals have to take McDonalds into account and it does not matter whether they like it or not. Research question is: “What should the board of directors change in the CRM policy of the company in order to attract customers?”
Objectives of the research:
* Gain and analyze data regarding CRM policy. Find out the influence of customer relationship management on the sales rates
* Sort the data and come up with solutions to particular problems
SWOT Analysis
Strength:
* Vast restaurant chain
*  Great experience in customer relationships
* Strong corporation policy
* Corporate training
* Constant monitoring of public opinion
* High employment

Weakness:
* Strict franchising conditions
* No discounts available (fixed prices)
* Dependence on the product suppliers
* High franchising cost

Opportunity:
* Further restaurant chain development in other countries all over the world
* Advertising
* Franchising
* Menu development and modification

Threats:
* Fashion for healthy food
* High competition
* Customer attrition

Course Learning Outcome’s
There are a few challenges that McDonalds has to overcome.
PR strategy:
McDonalds has become a mascot of fast food restaurant service. This has happened due to a great PR strategy. As a result McDonalds got a huge flow of customers. The thing is that at McDonalds restaurants each person can find something that appeals to his or her own tastes and what is more important children may become a little bit happier with so-called “Happy Meal”. It means that parents can take their children with them if they eat out at McDonalds. PR strategy of this organization was based on the slogan “I’m loving it”. This phrase made its business and attracted the customers. However, PR-program is not enough to keep up with the changing modern world. It means that the tastes of people are changing dramatically in a short period of time. This way, McDonalds has to campaign for their view of restaurant business in order to attract more clients. This research will focus on McDonalds PR strategies and find out which ones are the most effective.
Reason: customer attrition
Product quality:
It is really challenging experience to become a supplier for McDonalds. The high officials choose suppliers who can provide the restaurant only with the products of top-quality. On the other hand, the company has really “odd” requirements to the products. That is why this point of “product quality” can become a two-edged weapon for the company...