Application of Customer Relationship Management in Chinese Retail Industry : Case: Lianhua Supermarket

Abstract

As the most dynamic retail form, the chain supermarket has maintained rapid development in the the early 21st century. However, the market of chain supermarket is approaching saturation level and an increasing homogenization also causes fiercer competition. Therefore, how to survive and develop in a growing competitive environment has become a serious problem for retail industry. and customer relationship management for retail business also come into being.

Customer relationship management originated from the theory of relationship marketing, which aimed to support enterprises to identify the most valued clients and maintain long-term customer relationship. The objective of the thesis is to explore the existing practical problems when implementing customer relationship management for Chinese retail industry. Through a research on the case company, Lianhua supermarket, the thesis intends to propose suggestions concerning how to improve customer satisfaction and loyalty in future competitive market.

It might exist several problems of Lianhua supermarket, such as inaccurate marketing positions as well as vague target customers. However, the research result has indicated the potential valued customer group based on the analysis of demographic variables. Additionally, the implementation of membership system could also enable to contribute the increase of loyal customers.