Conceptualizing Customer Relationship Management Model ... - ijcsmr

International Journal of Computer Science and Management Research Vol 2 Issue 1 January 2013
ISSN 2278-733X
Conceptualizing Customer Relationship
Management Model for Educational Institution
(UTM)
Mohammad Osmani 1 ,Hossein Ahmadi 2 , Othman Ibrahim 3 , Mehrbakhsh Nilashi 4
1,2,3,4
Faculty of Computer Science and Information Systems, University Teknologi Malaysia, Johor
Abstract- In today’s competitive marketplace, educational
institutions are who offering courses, a degree, and a wealthy life
for alumni. It is more useful for universities to keep its graduate
students as alumni than serve new students and new supporters
for the university to decrease substantially amount of cost.
Students are buyers who register for courses, apply for
graduation, and create donations as graduate students. These
ongoing transactions are satisfactory to both parties, the longer
the relationship will tolerate, to the profit of every one. Basically,
one extremely useful technique to develop this relationship which
has been approved by many corporations is Customer
Relationship Management (CRM). The aim of this research is to
deliver a better understanding of the utilization of CRM based
IDIC process model for Alumni Liaison Unit to improve
relationship between UTM and its graduated students. In this
regard, this study conducted quantitative method on the basis of
analysis of the statistical data gathered from the distributed
questionnaire to graduate students. The role of this CRM model
is to help organization to understand a one-to-one relationship
with customers and customize product and services to propose
according to their values and needs.
Keywords— Customer Relationship Management (CRM),
University Technology Malaysia (UTM), Alumni Liaison Unit
(ALU), Information Communication Technology (ICT).
I. INTRODUCTION
Knowing your customers better will enable you to serve
them better and keep them loyal forever. This is the main
theme of Customer Relationship Management (CRM) that has
been investigated by many researchers [1-9].Educational
institutions also realized the importance of their operations
and interactions with their customers who include students,
alumni, donors, faculty members, and staff members [10].
Higher education customers are requesting more attention
from the service provided by the Information Communication
Technology (ICT). ICT in this field can play an important role
especially for customer satisfaction in higher education
institutions. Because of this need, many institutions are taking
this opportunity to use technology in achieving their
objectives. One of the most popular strategies that has been
accepted and confirmed by researchers and many
organizations is, Customer Relationship Management (CRM).
CRM helps in automating and improving process, and
contributing towards the management of customer
relationships in the area of recruitment, marketing,
communication management, services and support.
To ensure that the proposed model developed meets the
objective of development, the developed system used the
concept of Customer Relationship Management (CRM)
strategy based on CRM model which has been recognized for
its effectiveness in higher education. However, CRM was
initially applied in the world of information technology [12].
In a university such as University Technology Malaysia
(UTM), satisfying its alumni is essential and one of the
university targets is to continue the communication with them
but without a suitable CRM strategy, it may not be possible.
The approach to CRM concepts will be discussed further in
the literature review.
The emphasis of this research is on the proposed model of
the strategy of Customer Relationship Management (CRM) in
the higher education field. The model will act as an agent of
the supplier, storage, transmission and contain a variety of
current information on its database systems to support
potential more effective customer service delivery. The model
will also improve the communication and interaction system
in the process of establishing a friendly relationship, and
address the concerns with regards to the knowledge about
rights and responsibilities between the customer and
university.
II. PROBLEM STATEMENT
By looking back at the background of problem, the
researcher believes that university is forced to stay relevant in
this competitive era by having a customer-orientated strategy
that concentrates on building effective and enduring
relationships with the local and international UTM Alumni.
Not surprisingly, Information and Communication
Technology (ICT) has a vital responsibility here. For this
reason, studying the field of information technology and
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International Journal of Computer Science and Management Research Vol 2 Issue 1 January 2013
ISSN 2278-733X
management as well as the novelty of this area inspired the
researcher to dissect this problem and look at it from the ICT
position within the framework of business. Thus, the main
the overall goals. The overall goal of this pyramid is to
achieve customer satisfaction which will render a competitive
advantage for an organization. Consequently, to improve
problem identified was
"How Customer Relationship
relationship between a customer and an organization, reaching
Management Model can be cultivated in assisting Alumni
Liaison Unit for improving relationship with UTM Alumni’’
III. CUSTOMER
The C in CRM stands for customer. The critical key is
customer in CRM and this is especially necessary for service
providing organizations such as the Alumni Liaison Unit.
Nowadays, there are various terms used for customers, such as
clients, users, s, purchasers, patrons, associates, subscribers and
members. The important tip is that it should be according to
nature of the organization and the nature of these names is
varied. The issues at hand are: what is actually a customer
Why is customer satisfaction action important to an organization
Gaining insights about Alumni Liaison Unit and studying the
responses of UTM Alumni responds are essentials questions.
the pinnacle of this pyramid (customer satisfaction) is
essential as there should be a good combination of elements of
customer satisfaction related to Customer Relationship
Management (CRM).
IV. THREE CRM PROCESS MODELS
REVIEWS
There is no precise definition for a Customer
Relationship Management strategy. Hence each corporation
can have a specific meaning by its utilization of CRM towards
particular goals. In Table 1 there are three different CRM
process models which have been compared according to
author and their understanding before selecting the most
suitable of ones to be adapted d and enhanced based on the case
study requirements.
V. CASE STUDY APPROACH
A. Customer Satisfaction
Suitable CRM tools provide an easier mode for customers
UTM Alumni Liaison Unit was chosen as case study in
to do business with an organization through flexibility of self-
order to find out relevant market segmentation or UTM
service, ability to get what they need faster or getting target
Alumni’s segmentation and also elements of UTM Alumni
information that is immediately appropriate. Highly satisfied satisfaction for a good Customer relationship management
customers tend to purchase more, cost less for the service, less
(CRM) strategy implementation. The researcher has chosen
price-sensitive and are glad to disseminate the global about the
UTM Alumni Liaison Unit as the case for the preseason that:
organization.
Case studies are used when the researcher intends to support
B. Customer-Centric Centric Strategies CRM Value Cycle (Customer
its own argument with an in-depth analysis of a person, group
Satisfaction)
of people, an organization or a particular project. As the
nature of case study focuses on one aspect of a problem, the
For organization to make a profit and achieve their ROI,
conclusion drawn is not generalized but, rather related to one
conditioned by customer satisfaction, customer loyalty should
particular event. This is not to say that the case study approach
flourish. Customer experience and interaction are the most
is the limited value. On the contrary, it provides an in-depth
important factors in a good customer relationship strategy,
analysis of a specific problem. There are three types of case
whereas data integration & analysis and marketing &
study design: Exploratory case study, Explanatory cases study,
communication are not very imperative to customers [11].
and Descriptive cases study.
It has been found that data integration and analysis,
marketing and communication should not be simply for the
C. Research Methodology
purpose of CRM whereas customer experience is appearing to
This research made utilization of framework as guidance
be a very critical factor in order to satisfy the customer. Hence,
for researcher, which is operational framework. This
the aforementioned discussion has been enhanced by [11] as
framework was run for implementing the whole steps taking
in Figure 1.
throughout this research project. Finally the conceptual
framework which includes stages and information that is
necessary to achieve the CRM strategy process.
D. Operational Framework
The operational framework has been provided containing
each of the steps with clear explanation in how accomplish
each phases of research. It also increases the understanding
about the detail and implementing of the whole steps
thoroughly.
E. Questionnaire
Figure 1.Pyramid Framework of a CRM Value Cycle [11]
A questionnaire is a written list of questions, and the
answers which are recorded by respondents. In a questionnaire
There seems to be a need to develop customer-centric
respondents read the questions, interpret what is expected and
strategy which will assist the firm’s activities to accomplish
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International Journal of Computer Science and Management Research Vol 2 Issue 1 January 2013
ISSN 2278-733X
then write down the answers. One of the ways in which
questionnaire can be administered is the emailed questionnaire;
the most common approach to collecting information is to
send the questionnaire to prospective respondents by email.
Obviously, this approach presupposes that you have access to
their addresses. Questionnaire contained series of questions
which delivered to number of respondents. In this study, 100
questionnaires have been distributed to UTM Alumni. 60 of
the questionnaires were returned to the researcher while other
is still pending to be returned. The aim of these questionnaires
is to understand their perception and potential needs towards
Alumni Liaison Unit. Another purpose is to find out the
current and prospective relationship between alumni and UTM,
and find satisfaction of the service (include ALU information
on the website, ALU medium of communication and ALU
interaction with members) that is provided by UTM to alumni.
questionnaires were returned back to the researcher while
others did not respond. Among the respondents (61.7%), were
international alumni, while the rest meaning that (38.3%),
were local alumni. Table 2, shows the detail of this survey.
Valid
Table 2.
Frequency %
UTM Alumni Type
Valid
%
Cumulative
%
International
alumni
37 61.7 61.7 61.7
Local alumni 23 38.3 38.3 100.0
Total 60 100 100.0
Table 1.
Comparison between the CRM Process Models
CRM Mover/
Authors
Elements of Model Process Phases Objectives of Model
CRM Adoption Model [14]
CRM Process Model [13]
IDIC Process Model [2]
-Relationship marketing,
-Appropriate organizational
structure,
-Data Initialization,
-leverage of data warehouse,
-Developing customer strategy,
-Set customer objectives,
-Assess organization readiness,
-Align organization behind
goals,
-Execute CRM,
-Measure program effectiveness,
-Identification,
-Differentiation,
-Customization,
-Interaction,
Consist of four
phases
Consist of Six
phases
Consist of Four
phases
Relationship making for
CRM
Automation process
services and
consultation
Achieve customers’
satisfaction and loyalty
through establishing longterm
relationship
VI. THE QUESTIONNAIRE FINDING
Questionnaire were set to find out the kind of current and
prospective relationship between Alumni Liaison Unit and its
members, alumni’s segmentation to improve alumni’s needs
and elements of UTM Alumni satisfaction related to CRM.
100 questionnaires were distributed to UTM Alumni from
various places as respondents. 60 of these questionnaires were
returned back to the researcher while others did not respond.
Among the respondents (61.7%), were international alumni,
while the rest meaning that (38.3%), were local alumni. Table
2, shows the detail of this survey.
Questionnaire were set to find out the kind of
current and prospective relationship between Alumni Liaison
Unit and its members, alumni’s segmentation to improve
alumni’s needs and elements of UTM Alumni satisfaction
related to CRM. 100 questionnaires were distributed to UTM
Alumni from various places as respondents. 60 of these
Analysis from the questionnaire in this survey (Table 3)
demonstrated that about (28.33%) of respondents are still in
touch with UTM Alumni Liaison Unit, whereas the others
(71.67%) that returned, showed that they are not in touch with
UTM Alumni Liaison Unit.
Valid
Table 3 . UTM Current Relationship with alumni
Frequency
Q7PartA
Percent
Valid
Percent
No 43 71.7 71.7 71.7
Yes 17 28.3 28.3 100.0
Total 60 100.0 100.0
Cumulative
Percent
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International Journal of Computer Science and Management Research Vol 2 Issue 1 January 2013
ISSN 2278-733X
As it can be seen in (Table 4), in this survey the majority of
participants are undergraduate with (63.3%), while the
participants for postgraduate are (36.7%).
Valid
Table 4 . Kind of UTM Alumni
Frequency
Precent
Valid (%)
Cumulative (%)
Postgraduate 22 36.7 36.7 36.7
Undergraduat
e
38 63.3 63.3 100
Total 60 100 100.0
F. Suggestion for Alumni Liaison Unit Medium of
Communication
Based on the result of the questionnaire from respondents
(Table 5), most of the percentages (35%) of alumni members
offered that Alumni Liaison Unit medium of communication
should be based on website. The (28.33%) agreed with email
as the second suggestion for medium of communication. The
(16.67%) of respondents wanted face book, (11.67%) agreed
with the post, while the minority of the respondents (8.33%)
suggested call center as the medium of communication for
Alumni Liaison Unit. By observing the result of this
questionnaire the researcher can conclude that Alumni Liaison
Unit for improving the relationship with its members and
increase their satisfaction should add more effort on CRM
strategy towards the adaptation of its behavior on website as
the medium of communication.
Table 5 .Suggestion for ALU Medium of Communication
Frequency
%
Valid %
Cumulative
%
members. (23.33%) of respondents agreed and (18.33%)
preferred to state of neutral. On the other side (15%) disagreed
and (8.33%) strongly disagreed to suggest for Alumni Liaison
Unit to provide services based on alumni’s requirement. This
can be concluded by the researcher that the majority has
agreed for the customization of service. Therefore Alumni
Liaison Unit should give a consideration on this issue of
customization of service that they give to alumni members.
Valid
Table 6 .
Need for Customization towards Service
Frequency
%
Valid %
Cumulative %
Agree 14 23.3 23.3 23.3
Disagree 9 15 15.0 38.3
Neutral 11 18.3 18.3 56.7
Strongly Agree 21 35 35.0 91.7
Strongly
Disagree
5 8.3 8.3 100.0
Total 60 100.0 100.0
H. Need for Interaction based on Alumni’s Requirement
From the result which shows in Table 7 (43.33%) of the
alumni members agreed with the suggestion of Alumni
Liaison Unit should use CRM strategy for interacting with
alumni members with respect to their requirements toward the
Alumni organization. The (23.33%) of respondents preferred
to state of neutral and (13.33%) strongly agreed, whereas
(11.67%) and (8.33%) are respectively disagreed and strongly
disagreed who said no to the suggestion. Conclusion from the
researcher based on the result presented that Alumni Liaison
Unit should use CRM strategy for special interaction with
their members in respect to their requirements toward the
Alumni organization.
Table 7. Need for Interaction
Valid
Call Center 5 8.3 8.3 8.3
Email 17 28.3 28.3 36.7
Face book 10 16.7 16.7 53.3
Post 7 11.7 11.7 65.0
Website 21 35.0 35.0 100.0
Total 60 100.0 100.0
G. Need for Customization towards Service based on
Alumni’s Requirement
Table 6, shows that (35%) of alumni members
strongly agreed to suggest that Alumni organization should
deliver their services based on alumni’s requirements which is
based on the differentiation of different level of alumni
Valid
Cumulative
%
Valid %
%
Frequency
Agree 26 43.3 43.3 43.3
Disagree 7 11.7 11.7 55.0
Neutral 14 23.3 23.3 78.3
Strongly Agree 8 13.3 13.3 91.7
Strongly Disagree 5 8.3 8.3 100.0
Total 60 100.0 100.0
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International Journal of Computer Science and Management Research Vol 2 Issue 1 January 2013
ISSN 2278-733X
VII. MODEL DESIGN
The model designed bases on CRM lifecycle as illustrated
in Figure 1 which adapted from [11]. The model which
consists of four phases, further enhanced with more steps and
detail steps for each Phase; as it can be seen in Figure 2, Phase
1 is to identify the alumni member’s requirements. This let
alumni to feel that organization know them and betters the
relationship that in between them. Phase 2 is differentiation
which divided into, differentiation by value and by
requirements. Phase 3 is the customization based on member’s
value and requirements. Phase 4 is where organization
delivers the benefit to these targeted members, is the
Interaction phase. It also consists of two phases, alumni
interaction by their value and by their requirements
throughout the implementation of CRM strategy model.
Literature review and analysis phase of research as
described in Chapter two early. The model designed bases on
CRM lifecycle as illustrated in Figure 1 which adapted from
[11]. The model which consists of four phases, further
enhanced with more steps and detail steps for each Phase; as it
can be seen in Figure 2, Phase 1 is to identify the alumni
member’s requirements. This let alumni to feel that
organization know them and betters the relationship that in
between them. Phase 2 is differentiation which divided into,
differentiation by value and by requirements. Phase 3 is the
customization based on member’s value and requirements.
Phase 4 is where organization delivers the benefit to these
targeted members, is the Interaction phase. It also consists of
two phases, alumni interaction by their value and by their
requirements throughout the implementation of CRM strategy
model.
Figure 2.
New CRM Strategy Model
VIII.
CONCLUSION
there already exit a path or form of university-company
collaboration. With this path and agreement in place, UTM
Alumni can get easy access to organizations.
Based on the constraints and challenges the researcher
encountered when carrying out this thesis, the researcher
seeks to recommend that the faculty or institution through its
Research and Development unit liaises with various
companies located within the city where the institution is
situated. So that will be easy for UTM Alumni mainly the
international alumni to get across the organizations because
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International Journal of Computer Science and Management Research Vol 2 Issue 1 January 2013
ISSN 2278-733X
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Mohammad Osmani et.al. 1308 www.ijcsmr.org