5.1 Conclusion
This research studied customer or client relationship marketing (CRM) practices in the Thai petroleum industry. The research focused on PTT Public Company Ltd., the Thai national petroleum production and distribution firm. PTT operates in a number of different petroleum industries in Thailand and in international markets, including exploration and exploitation of natural gas and oil resources, production of petroleum fuels and petrochemicals, and downstream marketing and sales to retail and industrial markets. The research examined the PTT and similar companies could use CRM in order to increase their benefit from their customer base, by increasing sales and profits as well as creating long-term customer relationships and maximizing customer lifetime value.
There were two objectives of the study, including identifying the process of CRM in the petroleum industry and examining the responsibilities of marketing experts within this plan. The objectives were accomplished using qualitative research.
Interviews were conducted with ten members of PTT staff. Of these interviewees, seven worked as marketing or area managers in various industrial sectors PTT sells product into, while three worked in broader financing or marketing and promotion activities.
The literature review of the study established a conceptual framework to understand the process and objectives of CRM, following several previous authors (Buttle & Maklan, 2015; Venkatesan, 2004; Woo & Leelapanyalert, 2014). Interviews were analyzed using thematic analysis.
CRM at the firm includes educational offerings (seminars and information), trips and other incentives, as well as pricing offers, depending on the customer’s needs.
The firm has strong objectives for the CRM program. These objectives included creating long-term relationships with customers, increasing customer loyalty and customer sales.
The ultimate reason for implementing the CRM program was to increase sales and profits
for the firm. The CRM program was also viewed as a way to maintain competitive advantage and to meet customer needs and ensure that they stay loyal. Thus, the CRM program was a way to differentiate the firm in the eyes of the customer. The focus on the customer meant that the CRM program began with a process of learning about the customer and their needs, as well as their value to the firm. However, the firm did not use a specific CRM program for high-value customers, instead emphasizing on individual and social relationships. While premium customers were offered higher levels of incentives (like temple trips and international trips), the program also focused on converting customers in the exploratory stage (initial purchases) into the expansion stage (repeat purchasing and cross-selling), and through to the stable stage (strong satisfaction and loyalty). Participants noted that the program had an estimated 80% to 90% success rate in terms of customer loyalty and other objectives. It was also successful at increasing sales, with one participant estimating a 20% increase in sales from the program.
In conclusion, CRM has been a highly effective strategy for PTT to increase sales and profits and generate customer loyalty. In the long term, this will increase the firm’s competitive advantage as it retains customers and increases their customer lifetime value. Thus, although the program does have some costs, it also has some significant benefits for the firm as well as for customers themselves. While the firm still has to ensure quality service and products and on-time delivery, the CRM program is an important tool for the firm to identify and meet customer needs.
5.2 Managerial implication
The main managerial implication derived from this study is that they should explore the CRM model and see if it would be effective in their business. The case of PTT showed that the firm’s objectives of increasing profits and sales, along with customer satisfaction and loyalty, could be achieved through CRM. It also showed that the program created long-term relationships between the firm and its customers, including social connections between the firms and the area managers supporting them. This has the potential to improve both financial returns to the firm and benefits to customers. By getting to know customers and their needs, PTT’s area managers can improve the firm’s offering to the customers. Although firms need to choose their own objectives and
identify ways to meet them through CRM, PTT’s example shows that CRM is a highly effective strategy for developing and sustaining customer relationships over the long term. Other firms could also benefit from the introduction of CRM strategies, particularly firms that operate in highly competitive industries. These firms may particularly benefit from creating relationships of trust with customers and going to extra lengths to meet their needs.
5.3 Theoretical Implication
There are also some theoretical Implication for future research in this area.
The research showed that there was surprisingly little information about the actual implementation of CRM programs in the firm that were related to the program rather than the underlying software. This means that it is difficult to understand the experience of sales and marketing professionals in their implementation of CRM. This is especially problematic for industries that depend heavily on personal sales like the petroleum industry. One suggestion for future research is studies that focus on CRM in the client- salesperson relationship, particularly in business-to-business (B2B) industries. This type of research could contribute to the existing literature, particularly if it explained or identified variances in real-world implementation of CRM in B2B scenarios. Research into the effectiveness of CRM in B2B settings could also be useful, as this is an area where it was also very difficult to find enough information for the study.