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ABSTRACT. This paper uses as its focus the traditional U.K. retail industry at a time when competition from newer channels is increasing. Research into other industry sectors has proven that well planned and executed customer relationship management strategies can increase profitability by improving customer loyalty. Many areas of the retail sector appeared to have neglected the benefits of CRM strategies, and where attempts have been made to implement CRM one or more of the vital constituents - employees, customers and shareholders have been neglected. The true barriers to CRM implementation are often thought to be financial or technological, according to research into other industry sectors. In reality however, financial and technological barriers are less problematic than organisational change, cultural and people barriers. The results of the retail survey carried out by the researchers support their original idea that few sectors of the traditional UK retail industry have implemented CRM strategies, and those that have are still are the early stages in the cycle. The survey questioned retailers on 3 main areas - The Company; IT Strategy and Future Strategy. Results for each for area are presented and change implications are discussed.
INTRODUCTION
The retail industry in the United Kingdom continues to be one of the nation's most important. Traditional retailers are under increasing pressure from other sales channels such as mail order and electronic commerce. Ubiquitous technologies, in particular, the Internet and Internet enabled applications further force a previously unparalleled pace of change. Despite the apparent protestations of retailers that customer relations are important, many in the retail industry demonstrate differences in their ratio of technology spending and organisational culture. The current growth of customer relationship management (CRM) in most industry sectors is being enabled by technology. "Once an art practised by the best salespeople, CRM is a new science, still in its infancy" (Cap Gemini Ernst & Young and International Data Corporation, 1999, p. 7). There is a "relatively high level of corporate awareness" of the benefits of CRM across industry sectors as companies attempt to differentiate themselves from competitors (Cap Gemini Ernst & Young, 1999).
This paper provides insights into the retail industry and available customer relationship management tools, techniques and technologies. This area of study has important implications if the retail...