Customer Relationship Management, Essay Example
ABC Consulting Group has been contracted by Keppel Offshore & Marine to analyze, assess and implement new customer strategies to help increase revenues and expand their customer base. Following is a detailed Customer Relationship Management Strategy (CRM), custom-designed for Keppel Offshore & Marine Company by ABC Consulting Group.
One of Keppel Offshore & Marine’s primary goals is to present itself as a company customers can trust and feel comfortable forming long-term relationships with. Additionally, Keppel Offshore & Marine aims to identify new business opportunities with future customers as well as grow their existing customer base. The latter is particularly important, because Total Quality Management experts report that retaining and managing existing customer relationships is more cost effective than investing in finding and winning over new customers. However, keeping existing customers satisfied often leads to new customer relationships via word-of-mouth advertising and a high-value perception of the company in the industry. ABC Consulting Group understands that a company’s success is only as good as how satisfied its customers are, and are in place to help Keppel Offshore & Marine realize the benefits from good customer relationships by revamping its customer retention and relationship strategy.
Consequently, one of ABC Consulting Group’s goals is to successfully assist Keppel Offshore & Marine in managing and maintaining strong customer relationships which are outlined in this Customer Relationship Management Plan. The plan’s primary purpose is designed to identify what Keppel Offshore & Marine needs to effectively manage its customer base, including customer retention opportunities, customer communication strategy requirements and customer value propositions to assess public perception of the company. These are key areas of focus. Consequently, identifying and developing these key areas are essential to developing an effective strategy for Keppel Offshore & Marine to realize a long-term, value-added relationship with its customers.
Keppel Offshore & Marine Company Description
Keppel Offshore & Marine is a well-respected, Singapore-based marine engineering company that has proven itself as a global leader in its industry. The company is a major constructor of offshore drilling platforms and vessels, as well as the world’s leading builder of jack up rigs, semi-submersible rigs and floating production and storage facilities (FPSOs). The company is an industry pioneer in the conversion of tankers into FPSOs. Until recent events within the last two years, Keppel Offshore & Marine reported building project revenues of over $7 billion annually. Additionally, the company’s network included 17 shipyards in major oil-producing areas all around the world. The company also specializes in building custom small ship vessels and multi-purpose support vessels for offshore oil search and production activities. Keppel’s current core business-to-revenue structure indicates its ship repair division is responsible for bringing in 76% of its annual revenue ($7.6 billion), with the remainder of its revenue split between offshore construction, engineering/ infrastructure, property and investments.
In response to extenuating circumstances in the industry such as rising oil prices, decreasing demand, declining market trends, competing speculative activity, and politically stagnant conditions in oil-producing countries, Keppel has gone through many acquisitions, name changes and restructuring efforts over the past three decades. This has prompted the company to seek out new business sources and to reevaluate its business practices, particularly in the area of customer focus.
After thorough analyses of Keppel Offshore & Marine’s operations, ABC Consulting Group understands Keppel’s approach to its beginning strategic implementations, its history, and its transformations that have occurred over time. This understanding gives ABC Consulting Group insight into the Keppel’s current situation and the challenges it faces, both externally and internally and will be the basis for structuring a successful customer relationship management strategy to assist them.
Customer Needs Analysis
As part of this CRM, ABC Consulting Group will assist Keppel Offshore & Marine in identifying actual and potential customers, with actual customers being those already buying or having strong buying intentions, and potential customers being those that may buy based on purchase capabilities.
ABC Consulting Group plans to help Keppel Offshore & Marine to identify inefficient processes in its organization, in order to ultimately develop and implement effective courses of action to improve the processes. Processes under consideration for improvement include Keppel’s customer retention strategy, staff recruiting efforts, staff retention efforts and current technology position.
Customer Retention Strategy
To assist Keppel in revamping its customer retention strategy, ABC Consulting Group will use a strategic CRM approach. This approach will focus on strategic implementation activities designed to keep profitable customers buying and also to encourage them to participate in word-of-mouth advertising for Keppel. This is best done through ensuring a high level of customer satisfaction and trust by meeting customer needs and offering value-added services to their benefit. The goal for this effort includes developing detailed project management plans that are broken down into specific phases of completion. Additionally, monitoring check points throughout the project process, with strict budgetary compliance procedures in place, will enable Keppel to execute quality projects, on time and within budget. This is integral to the success of the company’s customer relationship and retention strategy.
Another integral part of the Keppel’s customer retention strategy includes fostering close relationships via open communication with customers, the public, the media and NGO’s.
Staff Recruiting and Retention Efforts
Currently, Keppel is in need of a more streamlined, automated and thorough process for seeking out and recruiting qualified personnel, particularly quality skilled specialists such as marine engineers and naval architects with relevant experience. Competition for experienced and skilled personnel is stiff; however, ABC Consulting Group specializes in developing recruiting processes which include revamping job descriptions and implementing effective advertising/search campaigns. This will allow Keppel Offshore & Marine to attract quality talent and present itself as an employer of choice in the industry. To assist in this effort, ABC Consulting Group will use an operational CRM approach and recommends that Keppel upgrade its technological capabilities, which is outlined under “Current Technology Position” below.
Current Technology Position
ABC Consulting Group recommends that Keppel’s information technology department install an integrated records management system, as an upgrade to its existing information system. Integrated records management allows for the streamlining and automation of human resources, employee benefits, payroll, assets management, equipment inventory, accounts receivables/payables, investment and insurance records. An integrated records management system also allows for the sharing of pertinent data across departments as well as across national and global locations.
Improving Keppel’s technology efficiency is necessary for the effective management of projects and making the best use of each part of its organizational structure.
Results of an organizational analysis of Keppel Offshore & Marine, conducted by ABC Consulting Group, reveal additional opportunities for the company. These opportunities include submersion in the growing market, Singapore’s reputation in the industry, aging fleets and innovation.
The Growing Market
High oil and gas prices and an increase in demand for new oil sources over the last decade has produced an uptrend in the marine engineering business globally, particularly for the market segments of offshore construction and ship repair. This gives Keppel a competitive advantage in the market, due to offshore technology advancement and speculative oil exploration and production initiatives requiring floating solutions in offshore drilling. Keppel is favorably positioned to take advantage of the growing market as marine engineering experts who are able to leverage its capabilities in relation to operational flexibility and its state-of-the-art facilities and infrastructure. ABC Consulting Group will work with Keppel to develop a marketing strategy to increase its market share in lieu of the growing market.
Singapore’s Reputation in the Industry
The Singapore market is known for consistently high quality and timely delivery of projects, as well as top notch technical expertise. Keppel is already established as a leader in the industry globally, and this puts the company at an advantage in the reputable Singapore market. ABC Consulting will work with Keppel to include capitalizing on this advantage in its marketing strategy as well, by structuring marketing focus on highlighting Keppel as the most highly respected, experienced and successful company in the industry.
Keppel Offshore & Marine is a pioneer of converting tankers into floating production and storage facilities (FPSOs). This is strength is an opportunity in lieu of tankers becoming obsolete. ABC Consulting Group will prepare Keppel for pursuit of the benefits of this opportunity by discussing strategies to garner a majority market share of the tanker conversion business. Pertinent cost estimates, scheduling, project management plans and resource planning are core discussion platforms.
Keppel’s custom-designed rigs, unlimited capacity and locally managed system of 17 centrally controlled shipyards make it prime to meet the industry’s diverse needs, by being able to quickly adapt and change with the flow of shifting market conditions. ABC Consulting will work with Keppel Offshore & Marine, to this advantage, by developing a plan for the company to continue innovative efforts that will differentiate them as leaders in the industry.
Customer Relationship Strategy
ABC Consulting Group’s aim is to develop and implement an effective strategy for Keppel Offshore & Marine to better organize, strengthen and maintain its business relationships with its customers.
Keppel Offshore & Marine’s current customer relationships show a high level of solidarity; however, Keppel’s executive leaders are concerned about maintaining this status and seek assistance to enhance it. ABC Consulting Group’s plan for assisting with this effort is to create a project performance tracking tool to help Keppel ensure its contracted deliverables are timely met, within budget and with the highest level of quality and integrity. This will allow Keppel to realize the benefits of better efficiency, increased output and significant cost reductions.
Additionally, Keppel’s customer relationship strategy will include ABC Consulting Group’s continued efforts to monitor its operations and processes to identify possible areas in their operations or processes that need streamlining. This will allow ABC Consulting Group to assist Keppel in identifying additional value-added opportunities for delivering value to their customers. A detailed customer communication plan is the next step in the strategy.
Effective internal and external communications are integral to developing and maintaining mutually beneficial business relationships. Clear communications help businesses identify and understand customer needs. ABC Consulting Group will develop an organized plan for Keppel Offshore & Marine to maintain communications with its customers. This plan includes determining the best communication methods and communication frequencies, as well as identifying company communication contacts, uniform communication information and specific purposes of all communications.
ABC Consulting Group will assess Keppel’s current customer communication process to determine any areas that need improvement to ensure consistent and thorough communications are maintained throughout project processes. Also, communication plans will be custom designed for each customer to meet their specific needs to their satisfaction.
Custom communications will include personalized contact to all customers keeping them abreast of all new services or products available from Keppel that may be to their benefit.
Keppel’s revamped communications strategy is slated for organization by its newly installed integrated records management system which will streamline the processes.
In addition, ABC Consulting Group will communicate with Keppel’s President, Vice President and CEO on a monthly basis to strategize ongoing initiatives identify and correct any fail areas in implemented processes and revamp support areas as needed.
Keppel’s communication strategy is in place to ensure a stable and well thought-out value proposition is communicated to its customers.
A successful customer relationship management plan is one that ultimately adds value for its customers and communicates how a company stands out as an industry leader. ABC Consulting Group will assist Keppel Offshore & Marine in developing effective customer satisfaction initiatives that include tailored solutions for customers. Also, Keppel’s unique and innovative products and services will highlight value propositions in the market that will set Keppel apart from its competition, and ABC Consulting Group aims to help Keppel capitalize on this advantage. Keppel’s value proposition will serve as a strategic communication base for Keppel’s existing customers as well as potential customers.
ABC Consulting Group will set up Keppel’s value proposition to highlight key areas of purpose, based on its strengths, which set the company in the best light.
Keppel Offshore & Marine’s strengths lie in its product solutions, people, practices and excellent customer service, all of which foster loyalty from satisfied customers. ABC Consulting Group’s plan for maintaining this perception to retain existing customers and attract new customers for Keppel is part of its value proposition.
Customer Value Proposition Strengths
Product Solutions – Keppel’s product solutions include industry-leading production design solutions and pioneered industry innovations. More product solution ideas and implementations are expected with the attraction and retention of Keppel’s quality personnel.
People – In the Staff Recruiting and Retention Efforts section of this CRM above, ABC Consulting Group outlines how it will assist Keppel in attracting and retaining the best personnel and talent in the industry by improving recruiting and employee satisfaction efforts. A high-achieving, quality staff of experienced professionals is an asset to the company and adds a high value perception of Keppel to customers through interaction with them.
Practices – Keppel Offshore & Marine has always followed strict and strategic best practices in the business; however, ABC Consulting Group will assist Keppel in ensuring their best practices are specifically tailored to each customer to fit solutions to meet specific customer needs.
Customer Service – Keppel’s satisfied customer initiatives are based on its customer relationship strategy and communication plan. ABC Consulting Group will assess Keppel’s current customer service processes to ensure they include ways for customers to reach pertinent contacts in the company immediately. Customers should be able to reach a Keppel representative throughout any phase of their contract cycle, to keep them informed and to make sure they are satisfied through to completion of their deliverables. Each customer will receive an information packet that will outline a list of contacts for each stage of their process. ABC Consulting Group will work with Keppel Offshore & Marine to identify any areas of inconsistency with the customer service function and also identify any areas that need improvements.
ABC Consulting Group is confident of providing Keppel Offshore & Marine with a solid customer relationship management strategy for implementation that successfully targets and reaches its target customers in the market. Achievement of this will be driven by protecting existing customer relationships by enhancing customer experiences and revamping any week customer relationships by initiating efforts activities to win back loyalty and trust. Additionally, Keppel’s customer relationship management strategy is designed to put them in a position to start and harvest new customer relationships.
Building on Keppel’s existing strengths, ABC Consulting Group has outlined an initial strategy and will assist, coach and mentor Keppel through each phase of the strategy process. Consistent communication with top Keppel leaders will continue to ensure success, which will be measured by Keppel’s assessment of its bottom line profits and customer roster by year end. The goal is for Keppel Offshore & Marine to realize increased revenues, and also a higher customer retention rate which will indicate success in adding value to its customers and positioning itself in a progressive stance in the industry.
CRM Class Group Work PowerPoint Presentation, 2012.
Geok, W.B. & Buche, I. (2007). Keppel Offshore & Marine – Riding the Waves of Change. Retrieved from the assignment case study from The Asian Business Case Centre website (AsiaCase.com).
Herbatschek, F. (2012). Customer Relationship Management. Retrieved from class PowerPoint notes.
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