Poor customer relationship management a case study in Nhi Long JSC

Nhi Long joint stock company (Nhi Long JSC.) is one of small companies in Vietnam. This firm is working in interior field, and now it has imported rugs from Turkey to distribute in Viet Nam market. About company history, Nhi Long JSC stemmed from a small business that first opened in 2005, working in gemstone painting industry, and was established officially in 2013. When it had become strong competition in paintings market, in 2013, director of Nhi Long Company decided to switch over to new products of rugs and carpets. In August 2013, the first container of rugs were imported from China by Nhi Long JSC. After selling Chinese rugs in one year, Nhi Long Company had got so many complaints from customers about rug quality. Through this problem, Nhi Long director realized that although partner of Nhi Long company at that time was a biggest factory which produced rugs in China, Chinese rugs were not high quality products as he expected because of producing technology of Chinese itself. So, director of this company tried to find more new suppliers who had better quality products to solve complaint from his customers. In May 2015, after nearly two years observing and researching, he chose to cooperate with two factories in Europe Turkey and Belgium country. With higher modern technology and famous experience in producing rugs over the world, these partners could provide quality rugs for Vietnamese customers. Customers’ satisfaction was improved when they can buy Turkey rugs with high quality and suitable prices. Moreover, the sales revenues of this company also improve significantly.

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-Dang Thi Kim Khuyen

POOR CUSTOMER RELATIONSHIP

MANAGEMENT

A CASE STUDY IN NHI LONG JSC.

MASTER OF BUSINESS (HONOURS)

Ho Chi Minh City – Year 2020

UNIVERSITY OF ECONOMICS HO CHI MINH CITY

International School of Business

-Dang Thi Kim Khuyen

POOR CUSTOMER RELATIONSHIP

MANAGEMENT

A CASE STUDY IN NHI LONG JSC.

MASTER OF BUSINESS (HONOURS) SUPERVISOR: DR DOAN ANH TUAN

Ho Chi Minh City – Year 2020

POOR CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM AT NHI LONG

JOINT STOCK COMPANY Table of Contents

1 Company overview 5

1.1 Nhi Long Joint Stock Company overview 5

1.2 Organizational structure 6

2 Symptoms 7

2.1 Increase in turnover rate 7

2.2 Increase in sales employees dissatisfaction responses 9

2.3 Increase in customers unanswered calls 10

3 Problem Identification 10

3.1 Potential problems 10

3.1.1 Lack of sales skills 11

3.1.2 Poor customer relationship management system 12

3.1.3 Company policies 13

3.2 Validating problems 14

3.2.1 Staffs lack of sales skills 15

3.2.2 Poor customer relationship management system 15

3.2.3 Company policies 17

3.2.4 Managers’ perspective 18

3.2.5 Employees’ perspective 18

3.3 The importance of main problem 21

4 Causes Validation 22

4.1 Potential causes exploration 22

4.1.1 Ineffective training program 22

4.1.2 CRM tool function limitation 23

4.1.3 Functional managers cooperation limitation 24

4.2 Validating causes 26

5 Alternative Solutions 28

6 Action plan 36

7 Supporting Information 41

References 51

Table of Figures Figure 1: Organizational structure of Nhi Long Company 6

Figure 2: % employees working in each department 8

Figure 3 Turnover rate in sales department (%) 8

Figure 4 : Number of sales employees’ dissatisfaction responses in quarter 4th 2018 9

Figure 5 : Customers’ unanswered calls (%) 10

Table of Diagrams Diagram 1 : Initial Cause-Effect map of Nhi Long Company 20

Diagram 2: Updated Cause-Effect map of Nhi Long Company 25

Diagram 3: Final Cause-Effect map of Nhi Long Company 28

1 Company overview

1.1 Nhi Long Joint Stock Company overview

Nhi Long joint stock company (Nhi Long JSC.) is one of small companies in

Vietnam This firm is working in interior field, and now it has imported rugs from Turkey

to distribute in Viet Nam market About company history, Nhi Long JSC stemmed from a small business that first opened in 2005, working in gemstone painting industry, and was established officially in 2013 When it had become strong competition in paintings

market, in 2013, director of Nhi Long Company decided to switch over to new products

of rugs and carpets

In August 2013, the first container of rugs were imported from China by Nhi Long JSC After selling Chinese rugs in one year, Nhi Long Company had got so many

complaints from customers about rug quality Through this problem, Nhi Long director realized that although partner of Nhi Long company at that time was a biggest factory which produced rugs in China, Chinese rugs were not high quality products as he

expected because of producing technology of Chinese itself So, director of this company tried to find more new suppliers who had better quality products to solve complaint from his customers

In May 2015, after nearly two years observing and researching, he chose to

cooperate with two factories in Europe- Turkey and Belgium country With higher

modern technology and famous experience in producing rugs over the world, these

partners could provide quality rugs for Vietnamese customers Customers’ satisfaction was improved when they can buy Turkey rugs with high quality and suitable prices

Moreover, the sales revenues of this company also improve significantly

However, it still exists some difficulties for Nhi Long Jsc to maintain customers, open market and get sales revenue increase There are some limited resources of human,

finance and facilities, especially an increase of high turnover rate in sales department in

three recent years, more dissatisfaction for both employees and customers

group Vision of this company is toward to build a lot of small sales groups, with around

5-6 sales persons for each group, to cover Vietnam market and increase revenue, leading

Chairman

CEO (General Director)

4 sales representative working in HCM

4 sales representative working in Hanoi

Admin and Logistic staff in Hanoi

Admin and Logistic staff in HCM

4 sales representative working in HCM

Figure 1: Organizational structure of Nhi Long Company

2 Symptoms

2.1 Increase in turnover rate

One of the big attentions for small enterprises which are working in construction or interior business in Vietnam today is about human resources management At Nhi Long

Company, turnover rate increases in three recent years, the figures are showed in the

below table:

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Number of employees quit job in 2016 2 1 0 1 0 0 0 1 0 1 1 0 7

Number of employees quit job in 2017 3 1 0 1 2 0 0 3 0 0 0 1 11

Number of employees quit job in 2018 3 1 2 0 0 1 1 1 2 1 1 2 15

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Number of employees working in 2016 9 11 13 15 15 15 15 16 17 18 17 18 18

Number of employees working in 2017 17 16 18 25 25 25 28 26 28 28 29 28 28

Number of employees working in 2018 26 25 29 29 30 31 32 32 30 32 32 30 30

Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total

Turnover rate in 2016 22.22 9.09 0.00 6.67 0.00 0.00 0.00 6.25 0.00 5.56 5.88 0.00 38.89

Turnover rate in 2017 17.65 6.25 0.00 4.00 8.00 0.00 0.00 11.54 0.00 0.00 0.00 3.57 39.29

Turnover rate in 2018 11.54 4.00 6.90 0.00 0.00 3.23 3.13 3.13 6.67 3.13 3.13 6.67 50.00

The table displays total of employees who quit jobs in Nhi Long JSC is rising year

by year with the number of 7; 11and 15 employees in 2016; 2017; 2018, respectively

And with an increase in leaving jobs from employees, Nhi Long turnover rate climbs

from 38.89% in 2016 to 39.29% in 2017 and reach 50% in 2018

Furthermore, the below chart will perform the number of sales employees quit job, together with percentage of turnover rate increased in sales department:

Figure 3 Turnover rate in sales department (%)

Table 2: Turnover rate in sales department

Looking at Figure 2, we can see the structure of human resources in each

department at Nhi Long Company, total employees working in sales staff are highest by

40% in total employees And by data shown in table 2, number of sales employees will be calculated by the average of sales staff at the beginning of each year and at the end of

each year (reference data in supporting information), turnover rate in sales staff are

escalating quickly from 40% in 2016 to over 64% in 2018 It is clear that, the turnover

rate of sales employee impacts strongly in turnover rate of whole company

By reviewing on number of rising turnover rate in table 1 and table 2 together with the structure in above pie chart, there is a relation recognized, the turnover rate in sales

staff contributed mostly in turnover rate increase of Nhi Long Company

Moreover, because employee turnover is costly(1), and one of strategies of Nhi

Long is create more and more sales team Managers of this company have to pay attention

Year 2016 Year 2017 Year 2018

Turnover rate in sales

department (%)

Figure 2: % employees working in each department

23.33

40.00 6.67

3.33 6.67 20.00

% employees working in each department in 2018

2.2 Increase in sales employees dissatisfaction responses

By data of internal system from making survey monthly, the responses of sales employees are almost dissatisfaction with their current job The number of discontentment responses is increased steadily in three recent months, the percentage in detail is showing below:

Figure 4 : Number of sales employees’ dissatisfaction responses in quarter 4 th 2018

(Form of question paper in survey)

Although this type of survey of Nhi Long company does not have the reason for each answer, and also does not know the name of respondent for each answer, leading managers need to consider this is a signal for your sales staff feedback that need to make attention to find out the potential problems in their organization

63.64

0.00 20.00 40.00 60.00 80.00 100.00

Answer of discontentment

Answers of discontentment (%)

Answer of discontentment (%)

2.3 Increase in customers unanswered calls

The call center system of Nhi Long Company has a statistic of calling in and out between sales and customers every day And in three consecutive months, the number of calling that sales employees cannot contact with their customers, are increasing from 20.73% in October to over 31.11% in December 2018 The below chart is shown an

upward trend for this situation:

Figure 5 : Customers’ unanswered calls (%)

It is an unusual action from customers that employees are facing and these number are collected through call center system Customers play an important role in small

business, so employees lose contact with customers is a symptom that company have to explore potential problems that Nhi Long may get in 2019

3 Problem Identification

3.1 Potential problems

By using method of depth interviews individually with sales staff who are quit job,

5.00 10.00 15.00 20.00 25.00 30.00 35.00

Oct-18 Nov-18 Dec-18

% call-out can not contacted 20.73 25.93 31.11

% Call-out can not contacted

% call-out can not contacted Linear (% call-out can not contacted)

firm, together with the information which are collected in symptoms part, some potential problems are explored as following:

3.1.1 Lack of sales skills

According to an increase in number of unanswered call when sales conduct a call

to customers during last three months in 2018, it can become an upward trend in

following months in 2019

Related to current condition, Mr Huan – general director, sharing the information that company can face the loss of customers who are not contacted by sales In the

statistic from internal call center system, the number of customers are not willing to

receive the call increase steadily from 21.73% to 31.11% in three months, and they are the highest rate until now He was also sharing that the problem can stem from the sales staffs, they lack of some needed skills for calling to customers, and especially when the work in this field change daily, sales man have to upgrade their skills to meet

requirements of customers such as communication skill, presentation skill, persuasive skill… Besides that, based on his own view, if sales have good communication skill, they can get customer satisfaction and they can contact with their customers anytime

At the same situation about customers did not answer calls, Ms Khuyen- sales manager, stated her view that there is a limitation in employing skills that sales staff have been trained when sales conduct a call to all customers, so in some cases, the customers feel boring, and they have a tendency to ignore the call from sales in next time

And when discussing with Ms Mo – sales representative in Ha Noi, she gave a point of view that in order to meet company requirements, all sales have to contact via call with customer monthly, and company also support for sales to contact with customers via sending message at least two times monthly in order to create interaction with

customers So after a while, customers feel annoyed when they see message or call from sales employees regularly, it makes more and more difficulties for sales employees to communicate with them, sometimes she do not know what is calling purpose to her

customers

With different jobs in organizations, people have different point of view in the situation of unanswered call raising, however, all views are related to the skills of sales And for any reason from company or employees, if sales employees have an effective communication skill, it can help to improve this unexpected ratio

To sum up, the lack of sales communication skills can be seen as a potential problem for organization during this period of time

3.1.2 Poor customer relationship management system

Nhi Long is a trading company which is clearly aware of the importance of sales employees It is because they see dissatisfaction of sales man can impact directly on their customers and their profit, from comment of general director Looking back with an internal survey showing an increase of dissatisfaction employee responses in general about their work in current months, the ratio increases significantly with highest number

by 91.67% in December 2018 Managers have to pay attention in this situation

To understand more about the issue, after discussing with sales manager 2 – Mr Cuong, he said that in Nhi Long organization, sales representative are more and more getting supports from company such as sales kit, tools, skills training

program…especially the CRM systems With applying CRM systems which are always latest updated regularly, sales will get more benefits from minimize manual operation, for example create quotation by excel, or thinking and sending email or message for a vast of customers, revenue statistic…With the discontent from sales, for him, it may be related to KPIs achievement It is so difficult for sales to reach the requirements of company that are measured by KPIs in CRM system

In fact, related to sales discontentment, opinion from sales representatives- Mrs Thao working in HCM, and Ms Linh working in Ha Noi, they offer the recognition about system in management the customer relationship of company To be specific, Ms Linh stated that she faced with customer information duplication It means that, she added

purchases because she did not know about this duplication And it is very difficult for her

to check, because company have over 4,000 existent customers and she also is limited about access permission in system The duplication of so many customers make her takes time and efforts to serve these accounts, such as for each account, she had to send

quotation, calling every month, visiting customers, answer all enquiries, and then she suffer higher workload but unnecessary In other view of employee about CRM system, Mrs Thao, she gives feedback about the information displayed in CRM system, it takes a lot of her time to collect necessary information for using to analyze to make report

weekly For example, on Saturday morning, she has to check each account of customer, and for at least 100 customers she contacted on this week, to find out which customers arise quotes, which customers comments to contribute their work, which ones not concern information sales man provide…and then analyze and make report It takes much time because information is located in each different field in system And she also shared these activities are so boring and make her get more task to do, while she had a lot of more necessary tasks to complete So, the bad CRM system can lead to workload higher for sales employees, of course, it will make increase in employees’ dissatisfaction

Therefore, the poor customer relationship system can be a potential problem for Nhi Long organization at this time

3.1.3 Company policies

With turnover rate increased in three recent years, especially in sales department, from 40% to 64%, information is collected to find out potential problems for organization through depth interviews with employees who left job and director of company

Through discussion with Ms Trang, who left sales job in December 2018, she mentioned that in order to manage sales staff about customers interaction in internal systems, company ban a lot of new policies such as shipping, payment policies, the

content of a call to talk with customers,…and these policies were updated every month, this can make her confused strongly when she tried to remember the latest policies,

especially she was a sales man working in B2B field, so when policies changes, she had

to support for all customers to remember new policies, and edited the contract with

customers, while she cared for over 300 customers in system More than that, new

policies are accompanied by so many key performance indicators (KPIs) that applied for sales staff This make sales man as her suffered high stress pressure and could not be happy and worry about the current jobs, although she satisfied with her income monthly

In other case with Mr Lam, he left his job in October 2018, he had given that he got stress every day when he worked in this job, for instance, he had to call at least 20

customers daily and solved any job if having in order to meet one of KPIs for sales people

in a day Along with this KPI, sales are required to follow KPIs of visiting customers, with this task, all customer accounts in system that he were hold, are encouraged to visit

at least once a year, and a lot of mandatory tasks were needed to complete by sales as him With a lot of KPIs that were required to archived, his performance was lower than he expected and also lower to compare with other sales person So, for him, this is a stressful job with incorrect KPIs

With general director view point, Mr Huan stated that some sales employees quit their job because of their individual issues like a job involved in their family, some quit their job because they could not catch up something changes in company In order to make sure all customers of company are cared well and customers have a good

relationship with sales people and company, he and managers had to update quickly policies, and of course the result are measured by new KPIs for sales staff

So, these policies of company can be a potential problem for Nhi Long Company

In order to validate problems, some theories and studies are reviewed, together with comments from managers and employees as below:

3.2.1 Staffs lack of sales skills

Based on customers refuse calls from sales are mentioned in part 2, this can be seen as a response of customer dissatisfaction According to a study, one of eight

customers dissatisfaction responses are neglect (2), where can cope with items including little caring or quit caring service provider, do not take note any action and finally let worse relationship happens, this reaction can be called passive response from customers Plus, Hirschman (3) also stated that to face with dissatisfied situations, some customers choose to be silence and hope better new things will happen Likewise, these studies mention an action that customers do not accept calls from partners are dissatisfaction response from customers, and that because customers do not care about this firm and complaints are recognized not worthy

One of the factors can affect to the customers dissatisfaction is the understanding customers and their needs(4) Lack of understanding will lead to customer’s

dissatisfactions while high level in communication can get customer satisfaction Besides that, effective communication skills is very important for sales interaction, sales

adaptiveness and sales outcomes (5) Other words, if sales staffs, who have to make a call

to customers daily, lack of skill about communication will make customers do not want to answer their calls

Therefore, lack of effective communication skill via calling to customers can be a problem of this firm

3.2.2 Poor customer relationship management system

With the number of dissatisfied responses from sales rise from October 2018 to December 2018, that’s really important signal that managers have to make attention Indeed, according to Farrell (6), complaint from employees is one of five decisions

discontent employees choose, it can be seen as constructive response intended to benefit itself But it can also be a sign of turnover intention as well

Actually, Mr Huan – general director, shared information about one of the urgent tasks is handling job dissatisfaction from three sales teams in recent time because it may

be related to raise in turnover rate in sales employees and bring negative effect directly to company performance in next quarter Besides that, about relationship between

employees and customers, employee satisfaction impact directly or indirectly to customer satisfaction via external service quality that employee provide, higher employee

satisfaction can contribute in higher customer satisfaction and vice versa (7) Therefore, the dissatisfy employee increase can make increased in customers dissatisfaction

When customers dissatisfy about a product or service of a company, they have three basic reaction to their partners including: keep silence and exit the relationship, complaint about dissatisfaction, or quietly remain a relationship (3) This can be seen as

“opportunity cost” and impact indirectly to company productivity, business effectiveness

If company do not recognize the passive silence from their customers, it can loss these current customers as well as the revenue from them

According to Michael (8), customers relationship management (CRM) adoption and utilization can impact in positive way to sales performance, and efficiency as well as effectiveness of sales However, customers’ relationship management can effect

negatively to organization if the firm cannot implement CRM in the right way Indeed, fail in CRM can create ineffective communication with customers and then lead to the customer dissatisfaction, customer trust and loyalty(9)

Besides that, although customer relationship management can make employees satisfy through this system meets employees’ requirements, in some cases, CRM system can cause some problems, such as the poor customer relationship management can make duplicate in data entry or enter unorganized customer information, these can create

unnecessary tasks and make increase high workload, then create complaint from

employees(10) Other words, inferior CRM system can contribute to employees’

dissatisfaction, so bad CRM system can be seen as a problem of company

to catch up with feedback from internal and external customers CRM sometimes requires employees to do new working action that they have ever tried before In some cases, company train them but employees can not aware, or in other cases, the company

recognize these employees are not suitable for this work Other words, CRM may requires organizations change in their recruitment policies to archive success(10)

Moreover, besides the policies related to recruitment, CRM system requires

combination of people, processes and technology to find out the insight of customers, focus on customers retention and growth in customers relationship (12) CRM system related to customer orientation A sustainable CRM strategy implementation need the training program mandatory about customer loyalty for all staffs (13) So, in order to supply high quality service and get customers satisfaction, employees are managed by many key performances indicators (KPIs) as if they were “standard” , but they are not based on studies or experienced evidence (14) So, inconsistent KPIs can create

employees dissatisfactions because of high pressure in work or low performance base on these KPIs And the job dissatisfaction is actually one of the factors dragging on turnover rate in organization as well

To determine the main problem to prioritize to solve, perspectives from managers and employees are supported as following:

3.2.4 Managers’ perspective

Mr Nguyen Ba Huan, general director of Nhi Long JSC has given that focusing development relationship management is the most important issue When having a strong system with loyalty customers, sales employees will gain more opportunities to get higher revenues and have better performances as well, so it can support to decrease the turnover rate directly in sales department Besides that, when company have a good system of CRM, customers will have more satisfaction and company may get more profit by higher volume products are sold With better finance, company can invest in sales benefits and create employees satisfaction Moreover, through better CRM system, the technology will

be improved and minimize wrong operations in systems, that will make decreased in sales dissatisfaction A company has a good customers relationship management, of course, will have an effective communication with their client, and it will minimize unanswered calls from customers

3.2.5 Employees’ perspective

Sales employees – who are directly related to all symptoms, give the about there recognitions when they are working in Nhi Long company Ms Thao, she is working in sales department in HCM, believes that if company has a good relationship management system, especially CRM internal software, she will save time in processing of collection information from system to make weekly report, and helping her in avoiding high

pressure when using system Plus, Mr Huy and Mr Dat, new sales employees also stated that they agree with the purpose of focusing in customers , however, if company have better CRM system, other better methods to contact with customers will be implemented, customers will accept calls from sales employees From them, customers will get more satisfaction and high pressure in work of sales people will be decreased

Through theories and in-depth interviews with managers and employees, poor customers’ relationship management system is considered as the central problem effect Nhi Long Company at this time.

Poor Customer Relationship Management System (CRM)

Lack of system integration

Entry data duplication

High workload

Increased in dissatisfied responses from sales employees

Job dissatisfaction

Turnover rate increase

High stress pressure

Inconsistent KPIs

Company policies

Unorganized customer information

Take time to pull out right information

Low performance

Lack of sales skill

Ineffective communication with customers

Customer dissatisfaction

Increased in unanswered call from customers

SYMPTOMS

3.3 The importance of main problem

According to J Dyche (15), customer relationship management system (CRM system) requires company understand how to improve customers’ relationship and enterprise

practices through whole program with a lot of processes and organization changes, CRM technology and customers data are considered as parts of this program, with superior

customer relationship make a company differentiation itself And in business-to-business (B2B) field, it is considered that an important aim is optimization the relationship between company and customers Top managers also agree CRM is a critical factor to business success, so if CRM system is inferior, company will not have sustainable development Moreover, there will cause the poor relationship between customers and company, it will make customers ignore company and do not buy products In other aspect, in the situation

of worse customer relationship, the cost for rebuild this relationship is costly So, it will impact directly to profit of company

According to theories and perspective in organization, customers choose to unanswered call from sales man is one of behaviors of customers when they dissatisfy about something from company It also stemmed from sales man lacking communication skills or from company’s management system In details, sales employees of Nhi Long Company depend mainly on company management activities when most of situation handling and answer to customers are trained and requires follow regulatory compliance Besides that, these sales members who contact with current customers have a certain level of communication skills, and they also can contact with customers in a certain of time until last quarter in 2018 And the application for sending automatically so many messages or call from company CRM system is not a good method for supporting sales employees in customers retention It is difficult to see the lack of sales skills is a main problem for this organization In other aspect, CRM system of organization can impact directly on customer’s satisfaction when it focus on customers, and sending automatically to all current customers With the data are imported by employees, and organized subjective to organization, this CRM system can

method of sending the same contain information with a same programmed style, it cannot reflect the different distinct style of each sales employee, or it also cannot make customers satisfy when they not meet their requirements as well With problem from the CRM

system, company also can make sales man dissatisfy and lead to they cannot communicate effectively with their current customers To be more in details related to CRM system limitations, sales employees can suffer high workload because of data duplication or

unorganized data as employee comments and theory findings It also make sales staff get more difficulties in meet KPIs requirements All are led to employee dissatisfaction,

customer’s satisfaction and increase in turnover rate

A good CRM system can support so many jobs for sales employees, however, the bad one will be contrasted It will make employee feel boring and do not believe in

organization and their capacity And they can choose to quit their job This will impact indirectly to the profit of a company when turnover rate costly and productivity decreased

To sum up, the poor CRM system is an important and main problem of a company, this problem should be solve as soon as possible to maintain customers and employees

4 Causes Validation

4.1 Potential causes exploration

Based on literature reviews and information are analyzed in previous parts, some

potential causes of main problem are explored as below:

4.1.1 Ineffective training program

It is the fact that, one of main sources to have competitive advantage today is customer relationship, and employees play an important role to contribute good relationship with customers, having customer intimacy through providing good customer’s services

training program can cause poor CRM system when it can make employees do not know clearly about the meaning of some CRM activities Employees can dissatisfy about their job because of their own misunderstand In addition, quality and quantity data is a factor contribute to support or barrier for a CRM system Almost data entry to system is made by employees, and if employees are trained unclearly, data problems may happen and create CRM system mistake(16) Consequently, inefficient training program can cause poor CRM system

4.1.2 CRM tool function limitation

Lack of measuring key customers performance can make organization get difficulties to provide best services or products for all customers Moreover, customer relationship

management focuses on customer orientation, so an important thing that company need to make attention is understand customer requirements before implementing a CRM system Undoubtedly, customers with different segments can have different insights and

expectations If company is not clear on evaluating customers, organizations cannot

understand customer needs and it can create customer dissatisfactions In contrast,

understand distinct characteristic of each customers segments can support company have good approach to Besides, some studies findings showed that customer dissatisfaction related to customer retention and customer retention impact on business profitability(16) Other aspect of customer segment measurement is it impact on key performance

indicators (KPIs) Measuring unnecessary things is considered worst activities itself and waste of company resources KPIs is one of decisions for measuring effectiveness of CRM implementation So, many organizations need to build a system of standard measurement with appropriate KPIs

Consequently, CRM functional tool limitation about classify target customers can be a cause of a poor customer relationship management system

4.1.3 Functional managers cooperation limitation

CRM need a cross-functional activities between different departments to ensure create value to company customers However, in some cases, customer relationship management implementation influence favors of some departments, so these managers become reluctant and unwilling to cooperate with other departments in CRM activities And when people who do not want to do some things, it is difficult to have a good result from their activities Top managers like director, CEO, or CRM managers need to transform clearly about

benefits of whole organization for these manages aware of meaning CRM activities

In others words, cooperation between functional managers can be a cause of poor CRM system implementation in organization

Poor Customer Relationship Management System (CRM)

Entry data duplication

High workload

Increased in dissatisfied responses from sales employees

Job dissatisfaction

Turnover rate increase

Inconsistent KPIs

Take time to pull out right information

Ineffective communication with customers

Customer dissatisfaction

Increased in unanswered call from customers

4.2 Validating causes

Based on using depth interviews method, employees believe that training program is important to improve customer relationship as well as decrease high workload in current situation To be more details, Ms Truc says she has to face with five KPIs daily, monthly and yearly, all KPIs company assigned for sales is difficult to achieve at the same time as requirements, although company also have training documents to guide some ways for sales employees The training system contains so much information from all departments that she does need It make she gets difficult to find out the necessary information And, when company changes methods of contacting with customers, the training programs need

to change to suitable for new situations It will help in improving communication between customers and employees

According to Mr Dat, he claims that company manages information and activities via internal system And company training system for sales employees is a mess with new information that are not approved for application, information that has been applying, and unnecessary information for sales It can make new sales confuse information when they contact with customers, leading to the customer dissatisfaction In term of training

program, Ms Thao shows that there are so many information in online training system that she misunderstand after reading, but she does not recognized her misunderstand until she gets mistakes involved in For example, when make a new order purchase for her

customers in case of using coupon, she used to discount directly in the field of discount in system and take note below in the purchase with coupon number, however, the right way to enter orders with coupon required employees to enter coupon verify and fulfil coupon code

to a coupon field before, this misunderstand and wrong way to make orders occurs during 3 months and make company get difficulties to collect all orders that using coupons from system And she shares that she lack of confidence when just be trained mainly via an internal website