Business Dilemma: CRM and Management of Cafe

Business Dilemma CRM and Management of Cafe guest RELATIONSHIP MANAGEMENT pedigree DILEMMAThe nigh influential soulfulness in caf or in all subscriber line atomic number 18 the guests, since with bulge out nodes, atomic number 53 does non switch a c erstwhilern. E verything in a commercial enterprise milieu revolves round guests. Similarly, in look of our caf, nodes be a key to a successful business at the end of the day. Knowing your nodes and providing satis itemion to those customers would take in customer verity. Grandfather gave priority to customers thats why he knew all his customers. However, scarce knowing your customers is non enough wholeness subscribe tos to nutrition a record of its customers so that its wakeful to analyze. Since customers be authorizedly influential towards a business, business (in our case, coffee bar) should treat each and every customer as if they were the exclusively customer. While servicing each customer, one must keep in mind the needs of that special(prenominal) customer only and should serve in much(prenominal) a delegacy that the wait on exceeds their expected value. Giving most priority towards customers would put forward customer loyalty and keep that customer committed to a particular business.Through customers, a business bunghole improve its business as said by Bill Gates Your most sorrowful customers argon your greatest source of learning. Customer complains in fact is a key to improve the service, for instance, if a customer complains that the expression drin top executive chocolate served was non pleasant and did non met the expectation, that complain shtup be practice as a tool to improve the coffee serving fulfil by dint of barely training workshops for employees in that area. Thus, customers complain stand be seen as a challenge to be met in future to trace him/her (customer) happy and attracted to the cafe. If you treat your customers well, your customers will go out of their way to chase away to you. Therefore, customer feedback and suggestion behind cooperate improve a service. However, the caf whitethorn non switch sets or response for all of customer questions and suggestions.Customers could help or hurt the cafe through viral selling. Word of oral cavity merchandise is the largest determining factor for a service business shape, which give notice be either online chatting or physical talk. If the service in caf is up to the expectation of the customer, it would help the caf to attract more customers through viral marketing and gain market allocate. However, if the harvest-feasts and service in caf is very vile which make the customer unhappy set up spread negative impression on other customers, hurting the company through losing its current and potential customers. Moreover, online input or complain on the cafes website whoremonger buoy be injurious such as comment on You Tube. Literally, the customer does n ot intend to disability or hurt the company they vertical requisite their needs to be fulfilled and service is up to their expectation. As already mentioned customer complains ordure provide an opportunity, on that pointby, helping the caf to improve its service.My employees will agree that customers are the most important part of cafe since thats the reason they are in cafe. If there wouldnt be any customer, there wouldnt be need for employees. Thus, customers determine or secure the period of employment of the employee. If there are fewer customers, employees whitethorn be laid off to cut down costs. However, almost employees whitethorn feel that they are the most important part in a business. Employees are the most important asset of any business. If caf doesnt place its staff, it would cloud them which tin impact their performance in service. And as a result, their poor performance preserve hinder customer growth of caf. Thus, some employees value themselves as the mo st valuable person in a business when compared to customers. devising line of descent DECISION palpableistic(prenominal) humans is a 3D, electronically-generated environment where rolers clear interact, wee-wee and communicate moreover as they would in the material world for example, warrant sustenance (http//ictwm.org/news/ practical(prenominal)-worlds-help-real-businesses).Virtual world provides tribe with incurs rather than processing transaction. Once population grab attached to virtual experience, they would be excited about(predicate) experiencing it in real heart. This would only be possible through tone ending to the real caf which would help the business in transaction processing. It besides aids in mass customization as customers fancy or suggest what they exactly want. Virtual world encourage interaction, collaborationism and conversation. It locoweed be accessed from anywhere in the world, thence, keeping people and caf connected. If caf provides uninterrupted updates in virtual world, people nearby the caf would go for new and advance(a) products in that caf just because of that cafes presence in virtual world which would enhance the business/caf operations. It could also be a marketing tool for the cafe to promote its menus for the day through frequently changing attractive ads in the virtual world.Customer family in virtual world is very delicate matters since one does not physically meet to create impression. Virtual world should be knowing in such a way that it is appealing and attractive to a customer. In virtual world, cafe business would be advance able to meet customer satisfaction with b collectionline or no cost by changing normals to strengthen virtual customer relationship. Customer wont need to tolerate in yearn lines to be served, one crapper just go to the cafes website and explicate the apprehension of coffee or of service in that caf. Virtual world does not restrict the access to any person any person locoweed access to the website to have a taste. In other words, there is a greater reach and contact to maintain strong customer relationship. Caf bottom be always open to its customer through virtual world without any disruption. Customers would be in a position to get what they want establish on their own specification. This makes the customer feel desire king through providing their customized products and enhancing better customer relationship.In traditional customer relationship come throughment strategies, there has been lack of customer experience, co-creation, co-production and collaboration with customers. Thus, our dodging to manage customer in new virtual world is through co-creation and co-production with customers. Co-creation and co-production with customers is assorted than traditional customer-centric approaches in that the focus is not to learn as some(prenominal) as possible about customers but instead consider them as equal problem solvers(http//fi ndarticles.com/p/articles/mi_hb5858/is_200711/ai_n32252899/pg_2/). Giving customers an important role in the value mountain range can affect customer satisfaction. Value in co-creation derived by customers purposeful interaction cannot be induceed merely from asking the customers to answer questions and leave comments. Virtual worlds whitethorn provide an experience space that hold outs experience nedeucerks which go beyond the domain of a single company and its suppliers to one that is experience-centric to the customers.(http//findarticles.com/p/articles/mi_hb5858/is_200711/ai_n32252899/pg_3)Moreover, since there is a growing use of internet, it would be easier for company to collaborate with its customers through electronic CRM. Electronic CRM has a wider scope for managing customer relationship in a variety of ways and not just collaboration ranging from designing and pricing of digital products to loyalty programs.Supporting mho Life customers differs from supporting websi te customers as well as traditional customers.In second animateness, caf can design and create those products and services that a particular customer wants. It al pocket-sizes basically for customization as well as reaching out to customers for ideas, prototyping and feedback in a particular area giving caf a better competitive advantage. This means that customer support in second life would need to be met in real clock especially to a customers involve. Second life is basically everything being electronic whereas traditional revolves slightly physical presence. Moreover, collaboration between customers and company is a major support in second life unlike traditional customers. Website supports customers with visitor reading and product review. It does not earmark a customer to get the tactual sensation of being in caf. However, second life gives a customer a virtual feel of being part of that caf in addition to visitor instruction. To make the experience of a virtual world customer great, second life location should offer free virtual coffee, harmony, and chairs with tables for customers to hang out. In the traditional (physical) environment, the caf needed to be closed off at a particular time, even though customers were involved in deep discussion. This does not happen in second life. Second life supports customers to continue with some(prenominal) they are doing in the virtual caf without any time limit and can chat as late as they want. Furthermore, upclimax events, artwork and music should be available to customers visiting second life so that it becomes kindle and encourages them to explore the site. Another difference between traditional and second life customer support is in hurt of advertising. In past, business would use advertising agency to promote their products but now the caf can do in house advertising in virtual world attracting wider locate of customers all round the world.Second life does not provide documentation of a person s identity. There is no access control and anyone can slowly get into the second life and if there is any confidential information for customers only, that can be considerably leaked and used to the disadvantage of the business, that is, the caf. Moreover, phishing can easily take place whereby an intruder who is against the caf business can create a website similar to the caf site and trick the customers into inputting confidential info. This confidential information can be used as a tool to harm the image of the caf through missing the customers information which would tremendously impact on the caf business. Similarly, falsification can be other issue just like phishing, whereby soul designs an avatar that looks just like the avatar of a customer service representative.Other issue involves the obsolesce of real life location. Since people get attached to second life, they dont go or visit the real life caf. Second life caf can be visited by anyone but real world caf may not be. People in a arena would only be visiting the caf and if those limited people get attached to second life caf, there wont be much grandeur of real life caf. Thus, issue arises that second life should be positioned and designed in such a way that real life caf does not get obsolete and people remain attracted to it as well to have real currency flow in business. Due to lack of authentication, retirement concerns arise. Maintaining customer confidentiality becomes an ethical issue and a challenge for businesses.MAKING BUSINESS DECISION IIYou Tube can be an important fomite to communicate with the cafes customers. It is a popular free video sharing website where people can also comment on a particular video. We would design and create video discerps of the cafes products and the way service is provided in caf and then share it on You Tube, exploitation cartoon characters and other imaginary characters making the clip funny, interesting and informative. Through these clips, we can conveniently show our customers how we have lessen the problem of retentive wait lines. Firstly, we would make clips showing more counters for serving as well as drive in windows. Long wait lines are basically because of few or only one counter, thus showing a clip with more counters can be seen as a reasonable rectification to the problem. Moreover, for travelers who want to be served instantly charm in their vehicle, drive in windows would be a origin to reduce hold in lines when in rush as in case of McDonalds in Fiji. Clip can show a customer edict and being served in just few seconds through drive in windows. Furthermore, online ordering and tele-ordering can also be a rectification to long waiting lines. Through virtual world or cafes website, customers can order online as well as through phone calls before truly going to caf so that on their arrival, their order is prepared and no waiting is required. These solutions can be depicted on You Tube through videos usi ng animated characters.You Tube as a communication vehicle, is free and easy to use. Unlike advertising over television, which is associated with costs, You Tube provides this for free whereby anyone can fit the videos and pass comments about how they feel about that particular video. As already said, it saves money on marketing since advertising can be do through clips to promote the caf. You Tube has a wider reach in terms of customers and markets. It is not restricted to a particular geographical region or location. Customers all around the world and in different market can get access to You Tube and learn about the caf. Also through You Tube, caf can get a great deal of information to umteen people in a short tot up of time just through one clip. These benefits show that You Tube can be an competent communication vehicle for any business whether it be caf or a car dealer.However, there are various disadvantages for You Tube as well. Since it can be viewed by anyone in the w orld, it may capture unwanted attention, for instance, is a person does not love coffee, he/she may not like the clip based on coffee and would comment negatively which would create bad impression to other customers. You Tube also in some cases compresses the content of clips and other files, making it unappealing to customers as its not presented in the right way intended and information can be shredded in that compression. Products may not be clear to customers, thus, proper communication of that product such as coffee maybe hindered. Also receivable to missing information or half information, it could become tough to assure what the file tries to reveal to customers. Issues of privacy concern and copyright infringement can be cons of You Tube. Privacy can be made vulnerable as amount of information on video can be on the hook(predicate) such as unintentionally showing where an employee lives or showing someones bio- selective information man promoting the product or service .Therefore, before starting to use You Tube as a medium of communication vehicle, one must clearly essay the pros and cons of it to see whether benefits are there or not.Other new technologies that can be used as a customer communication vehicle that would be more effective than You Tube are social networking sites such as twitter and facebook. It allows more than just posting video. One can post comments, pictures, update information and create events on it. Twitter and facebook help bringing customers together. With help of twitter, cafe can send an alert about new deals or offers in the caf. Blogging can also be a publishing medium. If a customer complements the cafes service or the products and food in caf in his blog, it would be a free advertising for the caf. But can also harm the image if blogger comments in a negative way. halt YOUR KNOWLEDGETo obtain broad(prenominal) select data, agreements in the caf must be integrated, since step information does make a difference in any business. Major importance of whole tone information is that it induces enhanced, accurate and appropriate close making. The quality of information used to make business conclusiveness determines the quality of decision made. Having real time remains in caf would provide real time information in response to decision makers queries and requests. High quality decisions can significantly impact the cafes bottom line, thus, profitability. For instance, having integrated and real time system, caf can provide what customer wants in an instance which would meet customer satisfaction, thus, improve profitability. Moreover, high quality information enables any business to move through valuable customers who generate most revenues. Having proper information about a particular customer visiting caf frequently can help caf light upon the loyal customer and could reinforcer him or her so that they keep coming in future. Uses can place confidence on information of high quality since it is reliable. For instance, if caf post on its website information generated from its systems, customers could be easily in a position to rely on it.On the other hand, low quality information results in various business effects. Low quality information are those which has missing information example no initiatory name of customer, incomplete information example no street or missing area code, probable duplicate information such as similar name, same address or phone number and potentially wrong information. The effects of this on cafes business would be its inability to accurately track customers, difficulty identifying valuable customers, inability to identify selling opportunities of cafes product, marketing to non-existent customers, difficulty tracking revenue and inability to build strong customer relationship (net slides). Low quality information would hinder caf to follow up with its profitable customers who frequently such as daily visit caf since there may be name confu sion. Also if systems are not integrated, it becomes difficult to provide accurately what customer wants and may fit to providing wrong products. This will affect the charter and bring out of a particular product which would not be reliable. Also caf may be marketing and promoting its caf and product to a non-existent customer online due to fake or same names who are not cafes usual customers. Overall, low quality information vigorously degrades the decision making quality in managing a customer and the caf.The examples of information that can be used by The Broadway Caf to gain better guessing of its customers are customers taste and preferences. If the caf gets a picture of what their current and potential customers would like to consume, caf can be prepared for the product and provide the customer that product when they really came and demand. Moreover, having a brief idea about the customers disposable income would help understand the affordability of prices by customers. T his would give the caf a view as to what prices customers would be uncoerced to pay for the cafes products such as coffee. Changes in environment and weather would also help in getting to know the customers and their wants, for instance, coffee would be by and large demanded during colder seasons in Fiji.Some of the data quality issues are as follows. Firstly, disgustful data issues due to data errors which can be attributed to human errors or an application error due to legacy systems. Since theres a large measuring rod of data to be fed in the system, humans are given over to make errors. Missing and duplicate data are other two issues (Turban, E., and Volonino, L., 2009). The caf lacks in proper management of its data which can lead the data to be easily lost as well as to be entered twice. This could really affect the output results thus affecting decision making. Moreover, data can be non-standardized and massed up due to lack of standards. The strategies the company can us e to avoid such data quality issues are to weapon Master Data Management system. It is comprises a set of processes and tools that consistently defines and manages the non-transactional data entities of an organization. MDM has the objective of providing processes for collecting, aggregating, matching, consolidating, quality-assuring, persisting and distributing such data throughout an organization to chink consistency and control in the ongoing maintenance and application use of this information. (http//en.wikipedia.org/wiki/Master_data_management) MDM would reduce or eliminate the data quality issues, giving a unified view of enterprise data. It can also use modify data entry, Web forms for individual entering data with data righteousness checks and drop down menus and radio buttons. (Turban, E., and Volonino, L., 2009) having frequent data audits in the system can also aid in preventing the above mentioned issues since data would be continuously reviewed and any errors would be detected and corrected appropriately without further problems in future.CAFES BEST CUSTOMERS**Customer IDTotal gross revenue Amount ($)354818,261.86443826,474.28565711,342.98689110,585.941380133,555.501395919,593.6527017714,355.9929489611,348.4030566849,647.4554013516,338.02130994811,401.60** We have assumed that the cafes best customers are the ones that bring in gross sales amount dollars of more than $10000.Listed above are the cafes best customers. The caf should offer to its valuable customers loyalty marketing programs such as point programs whereby a customer would get points for every purchase they make and when they reach a certain train and collected enough points, will get a special reward such as Jacks of Fiji which is using this marketing system to keep their loyal customers attached. Moreover, the caf can give its valuable customers loyalty card game as MH in Fiji is dong with its flash and gain card. Providing customers with promotional vouchers would also give t hem a feeling of appreciation for their service. Keeping in touch dodging can also be a way of marketing private road towards valuable customers. Giving personal attention towards the profitable customers is a way to build relationship and keep them in your business. This can be make by sending them promotional messages personally through email or calls frequently and asking for their feedbacks as to what they would like in future and their expectation from caf.Broadway CafeQuestionNameTotalWhat is the best selling product? unison CD$776,813.17What is the worst selling product?Kids CD$96What is the best sales month?3$569,339.10What is the worst sales month?5$58,501.06What is the best selling product during the best month? medicinal drug CD$235,054.45What is the worst selling product during the best month?Kids CD$64What is the best selling product during the worst month?Music CD$33,684.43What is the worst selling product during the worst month? nutrition$63.2* For answering the a bove questions, we have taken our base as sales amount values to reach an answer.SUPPLY CHAIN MANAGEMENTBUSINESS DILEMMABroadway Caf can reinvent the caf by making use of demand planning package. This parcel would enable the caf to be prepared in altitude hours of business since it would capture and give information as and when a customer enters either the caf or the car parking area of the caf. For instance, as part of software set, a camera can be attached at the hood of the caf to capture information on people entering the car park and determine what they would normally order at that particular time of the day. Also, it would allow the caf to keep track of its regular customers and their demands, thus, have the items available for them without having them wait in lines. This can be done before a customer enters the caf. The software would also enable in ensuring whether the caf has enough of the products that that would be demanded by the customer such as a particular type o f coffee. Although the implementation of such a software would be costly at its initial stage, it would be beneficial for caf in future as it is located in Suva, to obtain customer satisfaction and where people are always in rush. Thus, demand planning software would be a great benefit for the caf. interchangeable Netflix, we would not see caf becoming a supplier in another business supply such as hotel industry since our caf itself is very low-spirited at this stage. First, it needs to widen its customer base with the help of demand planning software and online ordering system (electronic ordering). Since our caf has a website, we could include in that a feature where customers order online, paying through credit cards or paying subscription fee for being in that account. The caf can based on customers order deliver the items to the customer within the Suva area if large quantities are ordered such as Pizza King which delivers pizza pie to people living in urban and suburban area s. Moreover, a customer would also order online so that before their arrival in caf, the items are prepared for them before hand such as coffee. Thus, innovating ordering system would also attract more customers in the caf.With the help of these supply chain technologies, the caf can expand its customer base and from there on can think bigger and better options such as becoming supplier of coffee/coffee beans to hotels or other businesses such as MacDonald.MAKING BUSINESS DECISION IThe success of any business depends on its ability of short and long term planning. As a refer business operator, I would always maintain some fund in my store for such unexpected events especially coffee beans which are in demand. Since not being able to meet customer demand would lead to losing out customers. Thus, our caf would keep with its operation regardless of disruption in supply chain du to dockworkers strike and would run on warehouse inventory (Brazil Beans, mainland China Tea and custom Co ffee press machines).Moreover, based on available inventory analysis in the warehouse, we would determine how long supply would last. Is our warehouse inventory wouldnt be able to meet up with the disruption period, we would fix to redundant suppliers since all suppliers wont be affected at once with the same problem. We would consider our temporary local suppliers such as go up to supply us with similar products as long as we are able to operate efficiently, although the cost in emergency need may be higher than usual price paid to our fixed suppliers.Since the caf has been going towards demand-driven manufacturing, Radio Frequency Identification Technologies (RFIT) would be the newest and most efficient solution to supply chain problems. RFIT is the most valuable technology to track inventory. If inventory level in any case would be low, it would trigger self-acting alert to our suppliers. It is an important device in global transportation some(prenominal) land and sea. It ens ures that inventory level are checked and replenished on need by need basis. Although this strategy would be bit costly for the caf in the initial stage at present, it would provide benefits in the future.Another strategy I would recommend is to create a position as commitment specialist whose job would be to enable transportation of products in any(prenominal) the situation maybe and at any cost. The freight specialist would stop up that products would reach the caf on time to meet customer demand and if not than they would be responsible for the loss.MAKING BUSINESS DECISION IIBroadway caf No moveBroadway CafUnits sold per month20,000Unit variable costs$0.50 amount unit sales price$2.20Current fixed costs$5,000Added occupy payment, new offices$2,500Projected fixed costs$7,500Sales monthUnitsSalesFixed CostsVariable CostsEBITJanuary6,582$14,480$5,000$3,291$6,189February11,121$24,466$5,000$5,561$13,906March14,178$31,192$5,000$7,089