MRKT 395 - ZARA\'s CRM PDF

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ZARA's CRM...

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1 ZARA

MRKT 395: Managing Customer Relationship

2 Zara's Mission, Vision and Goals

Zara is a company that was launched in 1975; it is a subsidiary of the Spanish group Inditex, representing nearly 75% of the activity. Mission statement: 'Give customers what they want and get it to them faster than anyone else' (Farfan, 2019). The mission statement shows that customer satisfaction is the topmost priority. "Give customers what they want," Most fashion brands tend to create/launch a new collection every year and let customers adapt to their will; Zara's has chosen a different strategy. Their various shops worldwide carefully note what their customers request and fast at produce to deliver to them, this leads us to the second point in the mission statement. "and get it to them faster than anyone else." This part of the mission statement is what made Zara the leader of fast fashion. The brand can make any highly requested clothing available in stores in as little as a month because of its short supply chain. Most of Zara production sites are close to retail locations. Vision Statement: "Through Zara's business model, we aim to contribute to the sustainable development of society and that of the environment with which we interact" (Farfan, 2019). Zara's vision statement focuses on having a sustainable business that is respectful to the environment and human beings. A very important factor in the light of growing pressure from consumers that want companies to treat their workers right and pay them fairly. Added to that, consumers are also increasingly environmentally conscious. That's why Zara firmly states their efforts of being a sustainable company. Goals: Bringing attractive and responsible fashion, as well as improve the customer's experience, are Zara's priorities("Zara - inditex.com", 2021).

3 Zara's CRM Customer relationship management is the business processes and supporting technologies that support the key activities of targeting, acquiring, retaining, understanding and collaborating with customers (Band, 2013). Zara heavily uses and relies on its CRM to meet its goals and keep them staying ahead in the industry; Zara's CRM revolves around three blocs. Supply Chain Procurement plays a vital role in delivering products continuously and inventory management. Zara can keep the lead because of its ability to provide the products that its customer wants quickly; the company can achieve that by including CRM to its supply chain. The supply chain integrated with CRM used to make the database of customer information and collect valuable data that shows customers' current needs and wants. CRM integration in the supply chain leads to forecasting customer behaviour and retaining customers by analyzing the likelihood of customer purchases. It can be used to run sales promotions to any specific customer group. An important note to Zara's integration is that it can be done because of its "in house production". Technology Another key element to Zara's success is that it relies heavily on technology. Technology, and especially the technology-enabled by the Internet, has had enormous repercussions for CRM (customer relationship management) (saylordot.org, n.d). I t took Zara longer to enter the online

channel than other retailers, but it designed a unique, high-quality online customer experience. Here are some ways that Zara is using technology: 

Card Programs - Zara has included in its app card programs like QR codes and NFC. This program allows customers to use the app to scan products to get information such as sizes, colours and prices.

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AI shopping experience - Zara's retail website allows a customer to discover new or similar options. When they click on a product, a pop up opens showing available options similar in pattern, size, colour.

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Sizing Tool – based on data analytics, the website and app is equipped with a sizing tool labelled "what's my size?" to assist customers with picking the right clothing size. The tool asks the customer for information coupled with previous purchase information; the tool makes a size recommendation.

Collaborative CRM Collaborative CRM consists of communication and coordination between the various distribution channels and customers to improve profitability while building customer loyalty. Collaborative customer relationship management also offers integrations with other applications, ensuring you can aggregate information from different channels and move smoothly between them (Sirk, n.d.). Zara has an integrated system that updates in real-time, they have a common database that supports all applications. Personal Experience To be a customer-centric company that delivers outstanding experiences, you must emphasize customer needs and expectations from the moment a product is first conceived (Insight, 2015). Zara is a brand that is known to be very customer-centric and uses technology to deliver; let's take the example of the black dress I purchased from Zara. The black dress was not available online in my size, but the app offers the ability to check for availability in store. First, you choose the size you are looking for, and then you put in a location that could be town, zip code or street, then the app searches for the nearest store that has your clothing size. Zara used technology to assist with my shopping. In this case, electronic customer relationship

5 management (e-CRM) uses technology in a number of ways to cement CRM into how organizations conduct themselves (2012books.lardbucket.org, n.d). The app was successful in finding my size, but at another store far from the closest store to me, but not worry in the Zara app, I had the option to have that store ship the dress to the nearest store so I could pick it up at my convenience and pay at pick up. The whole process was convenient and didn't require me to interact with a Zara staff. Savvy organizations can also provide tools to customers to drive their business, passing on tasks to customers that might ordinarily have been performed by the organization(2012books.lardbucket.org, n.d).

6 References

Farfan, B. (2019). Top Department Store Mission Statements. The Balance Small Business. Retrieved 13 July 2021, from https://www.thebalancesmb.com/department-store-missionstatements-4068552. Zara - inditex.com. Inditex.com. (2021). Retrieved 13 July 2021, from https://www.inditex.com/about-us/our-brands/zara. Band, W. (2013). Learn.umgc.edu. Retrieved 13 July 2021, from https://learn.umgc.edu/d2l/le/content/579064/viewContent/21875728/View. Technology and Customer Relationship Management. Saylordotorg.github.io. Retrieved 13 July 2021, from https://saylordotorg.github.io/text_emarketing-the-essential-guide-to-onlinemarketing/s20-05-technology-and-customer-relati.html. Sirk, C. What Is Collaborative CRM? Definition, Uses & Tools. CRM.org. Retrieved 13 July 2021, from https://crm.org/crmland/collaborative-crm. To Be Truly Customer-Centric, Companies Must Think Round. Learn.umgc.edu. (2015). Retrieved 13 July 2021, from https://learn.umgc.edu/d2l/le/content/579064/viewContent/21875756/View. Why Electronic Customer Relationship Management?. 2012books.lardbucket.org. Retrieved 13 July 2021, from https://2012books.lardbucket.org/books/online-marketing-essentials/s2002-why-electronic-customer-relati.html....