Toronto-based Mercedes-Benz Canada, with a network of 55 dealers, did not know e

Question

Toronto-based Mercedes-Benz Canada, with a network of 55 dealers, did not know enough about its customers. Dealers provided customer data to the company on an ad hoc basis. Mercedes did not force dealers to report this information. There was no real incentive for dealers to share information with the company.

Copy the following questions and respond by writing, at a minimum, one or two well-developed paragraphs for each question.   Be sure to cite the text to support your responses by integrating evidence through quotations, paraphrases, or summaries.

1)How could CRM systems help solve this problem?

2)How could PRM systems help solve this problem?

Explanation / Answer

1. CRM systems may help to capture and aggregate the data at a centralised location at the company's headquarter as it is entered into a dealer's location. The aggregate data will help the company to analyse the customer profiles based on different parameters and come up with a strategy to engage them in most fruitful manner. They can be attracted through loyalty programs, privileges, service coupons, referral benefits, exchange programs, membership to elite social clubs and benefits through partners like retail stores, hotel chains and airlines. The system will enable the company to attract more potential customers as well as retain the existing ones in comparison to older system where the quality of data was dependant on the collector's skills and transmission was not efficient and 100%.

2. PRM system will enable the company to manage its dealers more effectively than before. It will enable the dealers and other partners to have a one point of contact for receiveing information on continuous basis. It will also enable the sales staff of the company to access and manage the leads, deal registrations, sales, grievances etc. It will also reinforce reporting systems on partner success. Due to greater access and control on the partner's activities, it will also help the company to track the market development and work in greater collaboration to ease the channel issues and achieve greater profitability together.

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