A QCPD Model Applied to Studying CRM among Global Competitive

A QCPD Model Applied to Studying CRM among Global Competitive
Logistic Service
YANG Li1, PENG Xiaobao2
1. School of Economic and Management, Anhui University of Science&Technology, P.R.China, 232001
2. School of Management, USTC, P.R.China, 230026
[email protected]
Abstract: The customer relations management has been the core question of the international logistics
enterprise development. With analyzing the international logistics' new characteristic, from the logistics
development's new characteristic and the new challenge which it has proposed to our country Enterprise
embarks, we carry on the improvement strategy analysis. The “QCPD evaluation model” is used to
evaluate the logistics service quality. And on the base of the logistics’ new characteristic and the
relational appraisal, the construction customer relations management's dynamic improvement mentality
and the atonement strategy, and comprehensively promotes our country logistics enterprise ability to
deal with the international competition.
Keywords: QCPD Model, CRM, Logistics service quality, Customer loyalty.
1 Introduction
Since the reform opening policy, the logistics has obtained fast and continual development in our
country. Along with our Joining World Trade Organization (WTO) and the physical distribution market’s
gradual opening to the outside world, the transnational physical distribution companies, like Federal
Express (FedEx), the German Postal Service and so on, have been gradually seizing our country's
physical distribution market share. Our country physical distribution enterprise is facing the
unprecedented serious challenge. Meanwhile along with the economic integration, expense
diversification, the trade globalization time's arrival, the customer is getting higher and higher in
delivery service's request. What the enterprise faces is appraising and strengthening CRM the two big
difficult problems, moreover the former is the latter's foundation and prerequisite.
The customer relationship management (CRM) has obtained the widespread attention in the global
scale, the stable customer is the basis of an enterprise’ development, that has already become an
enterprise’s most precious wealth. 50% of the World 500 strong enterprises' CEO has started from the
customer relationship management; this also responds the CRM’s importance from the side. Therefore,
how to enhance the customer’s satisfaction degree, improve the customer relations has already become
the physical distribution enterprise's core question.
At present the customer relationship management has already researched in financial industry,
insurance business, drug industry, security business, manufacturing industry and so on. Overseas already
has done a quite thorough research regarding the physical distribution enterprise's CRM (e.g.: Herd
Edelstein, Building Profitable Customer Relationships with Data Mining), but home only have some
introductive articles, moreover mainly concentrates on the third party physical distribution enterprise
aspect (e.g.: HOU Fa-xin, Customer Relationship Management of the Third Party Logistics Enterprise).
Researches about evaluating the physical distribution enterprise’s CRM is still at the blank stage,
waiting for further development and consummation
2 The International Physical Distribution and Its New Development Characteristic
2.1 International Physical Distribution
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Yang LI
male vice professor doctor innovation technology
Peng Xiaobao male master knowledge management 13866700441 [email protected]
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In 1998, the American Physical distribution Association defined the physical distribution as: It a
supplies chain's part, in order to meet the customer needs, it is a process during which it programs
implements and controls the commodity, the service and the related information from the habitat to the
consumer area to achieve highly efficiency, the low cost flowing and the storage carries. The
international physical distribution is the domestic physical distribution’s extending and further
development, is a transnational, ranger physical distribution extension of the thing flowing. The
international physical distribution is an international trade’s inexorable constituent, the various countries'
inter-trade will be realized finally through the international physical distribution.
，
2.2 International Physical Distribution’s Unceasing Development
The international physical distribution in the situation of the physical distribution quantity expands
unceasingly “the fine physical distribution” presents, simultaneously, at the new times people’s demand
idea has undergone a remarkable change, the international physical distribution tries in solving “the
small batch, the high frequency, the multi-varieties” physical distribution. Since the 21st century, with
the international physical distribution information system and the electron data exchange (EDI) system’s
appearing one after another and moves toward maturely, each big physical distribution enterprise invests
a large amount of money in the physical distribution information system's construction; the physical
distribution, specially the international physical distribution has entered the information time.
2.3 International Physical Distribution Development Presents New Characteristic
Along with economic globalization’s quickening step, science technology, especially the
information technology, communication's development has caused the current international physical
distribution’s development to present a series of new characteristics:
1) The physical distribution scale and the physical distribution activity's scope has further
expanded, physical distribution enterprise is approaching to harmonious cooperation and coordination
development. Since the 21st century, various professions enterprise's union and merger and acquisition
in the worldwide scale will continue to promote the international logistics’ acceleration to approach to
the global direction, meanwhile the physical distribution globalization’s development trend also will
promote physical distribution enterprises' union and merger and acquisition activity inevitably in various
countries. Through an alliance form will solve the fund shortage and can deal with the market
fluctuation pressure, will enhance enterprises' geography coverage and the "one-stop" working style
service.
2) Delivery service’s superiority and globalization, we can construct personalization services
structure of contract guidance. Delivery service's superiority is an important tendency which the
physical distribution will develop from now on, it must achieve five “Right” service, namely the suitable
product, in the suitable time, the suitable place, by the suitable quantity, the suitable price provide the
customer with high-quality service. Facing the more intense market competition and the rapid change of
the market demand in the 21st century, providing the value-added service which for the customer
consummates and meeting the customer’s increasing complex personalization need has become the
modern physical distribution enterprise survival and the development key.
3) Third party physical distribution has fast developed, and gradually occupied the dominant
position in the physical distribution industry. The third party physical distribution is advantageous in the
enterprise’s concentrating the main page, saving expense, reduction to keep in stock and to promote the
enterprise image.
4) The green physical distribution is physical distribution development’s another tendency. The
green physical distribution refers to reduce the environment pollution, reduce the resources consumption
for the goal, uses advanced physical distribution technology to plan and implement international
physical distribution activity. In the 21st century, the humanity is facing three big crises of the
population inflation, the environmental deterioration, the shortage of resources; therefore the green
physical distribution will receive full the attention.
5) The forth physical distribution develops fast. From local and national scale, the third party
physical distribution enterprise does things in their own way, so they solve in the economic development
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physical distribution bottleneck with difficulty, specially the new physical distribution bottleneck in
electronic commerce; Moreover, the logistics development needs the technical expert and the
management physical distribution expert's impetus, therefore the forth physical distribution arises at the
historic moment.
3 The Physical Distribution’s New Characteristic Presents New Challenge to the
Enterprise Customer Relationship Management
3.1 The Present Situation of Physical Distribution Enterprise Customer Relationship Management
in Our Country
Now under the economic situation, the customer pursues more and more supplies chain's global
integration meet the transnational operation need the Multinational corporation must concentrate the
energy in its core business, so it must more admire the outflow outsourcing. They not only coordinate
exteriorly on the operation stratification, moreover also need to draw support from the outside in the
strategic stratification, to obtain the quicker, the better, and the more inexpensive delivery service.
Because the long-term plan economy impact, our country’s physical distribution enterprise is in the
monopoly condition for a long time, causing the majority of the domestic physical distribution
enterprises to take insufficient attention to CRM, haven’t carried out“ taking the customer as the center”
in the enterprise culture; haven’t realized sharing customer resources in the interior enterprise, causing
the customer to face sometimes is not a complete enterprise, but just the different department that “does
things in their own way”; The enterprise lacks a complete customer message data, thus it’s unable to
have the data mining analysis for the information, enterprise even can’t distinguish the same customer's
different order ,no matter provide a one-to-one personalization delivery service for the customer.
Because the enterprise cannot weigh the customer’s demand correctly and related information, the
enterprise’s decision-making can only be the choice which does base on the perceptual knowledge, and
lacks the scientific nature and continuity. In fact, majority physical distribution enterprises in our
country only restrict on some links of “the later period service” for CRM. In some physical distribution
enterprises, they regard paying a return visit to the customer as an extra service; they are far from the
customer relations management, further from the systematization and the continuity.
。
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3.2 New Direction of the Physical Distribution Enterprise CRM in Our Country under the
Physical Distribution’s New Characteristic
The customer relations management, as one kind of management idea, is one kind of business
strategy that can, retain more customers, enhance the customer’s satisfaction degree, and full excavate
customer’s potential value from customer’s point. Under the international physical distribution’s new
characteristic, whether or not the enterprise can provide highly effective, comprehensive, personalized
delivery service for the customer, obtains a higher satisfaction degree and the customer loyalty, is an
important standard in weighing the modern physical distribution enterprise’s competitive power
In order to raise the service level, enhances the enterprise’s competitive power, the third party
physical distribution enterprise should take the customer as the center, and realize the customer relations
management from various respects; The third party physical distribution enterprise often entrusts
delivery service to salt merchant to carry out, as for the third party physical distribution enterprise, it
needs to be responsible for carrying on the plan, regulating and supervising in the entire physical
distribution process. The third party physical distribution enterprise takes the customer’s demand as the
main actuation factor for the enterprise operation, passes through “taking the customer as the center”
idea to enterprise's entire operation process, throughout takes the customer’s benefit as the starting point
to save the cost for the customer, raise the efficiency and strive for the time.
4 Implementation Strategy of Physical Distribution Enterprise's Customer
Relations Management in Our Country
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Our country’s Physical distribution Enterprise has a numerous insufficiencies in the customer
relations management, the customer relations management takes as the modern physical distribution
enterprise's competition method and the management system, this requests enterprise must obtain from
the following several spots in the implementation process to guarantee the validity of implementation
1 Adjust the Enterprise’s Manage Idea, Mold a Brand-new Enterprise Culture
In Our country, Majority physical distribution enterprises, the CRM often pauses in oral and
formally, and has not caused it to become the enterprise's core competitiveness. In order to change the
stern condition, the physical distribution enterprise needs to unify the thought that penetrates the
customer relations management's idea into the staff, then it can form a physical distribution enterprise
culture that takes the customer’s demand as the starting point, takes the customer’s benefit as the center,
pays attention to customer’s individuality demand, meanwhile we should strengthen communication and
cooperation between the enterprise and the third party physical distribution, even the fourth side
physical distribution enterprise, and realize the resource sharing and the reasonable disposition to fully
satisfy the customer’s demand.
2) Standard Enterprise Underlying Tissues Construction
When the enterprise designs the CRM system construction, it must carry on reorganization of the
enterprise organizational structure and the operational flow; this is foundation of the CRM effective
implementation. The enterprise must establish organizational structure which take the customer as a
center, understood that the customer, service customer for the goal. Enabling the enterprise to become a
whole, realizes effective cooperation between departments, enhances the grade of service and speed.
Otherwise, the CRM obtains the success with difficulty, the personalized service class in the surface.
3) Establish the Perfect Data Management System
In order to enable the customer service coordination, all the physical distribution enterprise and
customers’ interactive behaviors must through the establishment a vanguard technology support's set of
general system platform to carry on the management, this system platform is the data warehouse. The
data warehouse is the core condition of CRM, it may through the analysis enterprise customer master
data, provide the detailed customer information and the service regulation for the sales personnel, causes
the one-to-one personalized service truly into possible, promotion customer degree of satisfaction and
loyalty.
4) Using the Appropriate Management Tool
The good CRM idea also needs the advanced technology to support and to tap its potential, at
present had many world famous software company, like SAP, Oracle and so on provide the high
performance CRM software product. Regarding the CRM software's choice, the physical distribution
enterprise should act according to its reserve of capable people situation, the floating capital and the
customer information content, then it makes chooses, there are mainly two fundamental modes in the
market, namely custom-made and purchase. For the physical distribution enterprise which has quite
prominent profession characteristic and the quite complex customer data, needs the specialized data
mining tool to be able to fully carry on the analysis, therefore custom-made or profession version CRM
is the good choice.
）
5 Enterprise Customer Relations Dynamic Management and Improvement
5.1 Dynamic Evaluation of Physical Distribution Enterprise's Service
Carries on the objective evaluation to the delivery service quality, the unit process mainly includes
the following several aspects: Establishment scientific and reasonable evaluating indicator system;
Determination evaluation model; Determination evaluating indicator standardized weight index;
Using the quality synthetic evaluation model to carry on the quality synthetic evaluation;
Computation measure results. Here giving a quantitative evaluation model which may operate (see
Figure 1), might establish the second-level target according to each first-level target (it has stipulated
quantitative evaluation actual content), thus evaluated the sub-item and synthesized the result.
②
④
⑤
①
③
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Evaluating item
Pic1: The “QCPD” evaluation model of the logistics service quality
NO
Evaluating indicator and weight index
Service quality
1
5
The appraisal of service quality to satisfies the demand degree (15)
The service should has the scientific and reasonable physical distribution
detail arrangement (10)
The service should have the enough breadth and the depth (15)
The content must reflect the latest international physical distribution
situation (5)
To respond customer demand duly (10)
6
interaction in the process of serves (10)
7
Guidance to customers’ physical distribution choice (5)
8
Physical distribution enterprise's profession authority (5)
9
Customer product’ security (15)
10
Reliability of commodity arrival time (10)
2
Service contents
3
4
Service process
Service
development
Scores
To achieve a fair scientific objective assessment, only have a scientific evaluation method is not
enough, and it called for the establishment of an effective evaluation system, including two aspects: the
fairness of the evaluation process and the rigorous evaluation.
1) To ensure independent evaluation of assessment agencies. First, the appraisal is the independent
movement, but extraneous factor's disturbance, could undertake the legal liability which involve in
appraisal. Next, it must establish a set rigorous, system's evaluation exercise standard and the system.
2) To choice appraisal personnel strictly and realize appraisal rigorous. The part appraisal data is
the subjective judgment of personnel; the inevitable region has the subjectivity. Therefore, when
development evaluation exercise, besides chooses the evaluating indicator as well as the science analysis
method scientifically, choice fair objective high level appraisal personnel, is enhances the grade of
service appraisal confidence level the important guarantee.
5.2 Unqualified Delivery Service’s Improvement, Atonement Customer Relations Flaw
Through to grade of service's dynamic evaluation, the physical distribution enterprise should take
the measures promptly; differently treat disparate measure results of customer relations, especially
important customer dissatisfaction, if processes improper will cause the enterprise to lose the stable
income source, and then influence enterprise's steady progression. Its basic mentality is:
1)
According to the returns ratio and the service volume, we carry on the classification and
important sorting to the customer (table 2).
2)
Service volume
high
Returns ratio
high
low
Star
Golden cow
low
Question mark
Thin dog
2) According to the customers’ discontent and the service process's actual situation, screen-out
some risks which do not have the threat.
3) Carries on processing to the different type's customer relations, and we join the database to carry
on the tracking investigation.
1. Star customer.
This type customer has the high returns ratio and the high service technical progress factor to the
enterprise, it will be the safeguard of the physical distribution enterprise’s future profit, and it will be the
main object which inevitably the competitor will compete. Therefore, the physical distribution enterprise
must provide the best team and the grade of service for the customer, For the customers’ discontent and
criticism which appears in the process of service should bring to highly the attention, and it must be
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given fast and appropriate processing, lets the customer feel star's treatment, enhancing its degree of
satisfaction and the customer loyalty.
2. Golden cow customer
This type's customer has the high returns ratio and the low service technical progress factor to the
enterprise; it is the physical distribution enterprise cash flow important source and the enterprise key
maintenance object. Therefore, the physical distribution enterprise should provide the specialist to be
responsible for this customer, maintains the good customer relations, for any service flaw could obtain
the customer’s prompt reminder and improves. This is advantageous in reducing the customer service
cost, enhancing the income earning and the customer degree of satisfaction.
3. Question mark customer
This type's customer has the high returns ratio and the low service technical progress factor to the
enterprise. Because its service volume grows quickly, its customer development cost is also high, but
because its returns ratio is limited, their cash flow is also low. Therefore it may carry on the necessity
service development to the part question mark customers which was choired, further enhances it to
enterprise's service technical progress factor, and urges it to become physical distribution enterprise's
one “star”, for other question customer to carry on limitedly the customer relations management,
forming the more effective customer relations management system.
4. Thin dog customer
This type's customer has the low returns ratio and the low service technical progress factor to the
enterprise. Generally speaking, this type's customer presses the enterprise to provide the stable cash flow
very much, even its maintenance cost is bigger than the income, is customer which the enterprise may
get rid gradually, is like this also advantageous in the physical distribution enterprise reduces the
operation cost and enhances the star, the golden cow customer grade of service. In the minority situation,
the enterprise possible process to develop diligently into the star customer and the golden cow customer,
but the development cost is huge, moreover the risk is extremely high.
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