VIETNAM NATIONAL UNIVERSITY, HANOI
SCHOOL OF BUSINESS
NGUYEN THI THANH TU A STUDY ON
CUSTOMER RELATIONSHIP MANAGEMENT OF ILA Major: Business Administration
Code: 60 34 05

MASTER OF BUSINESS ADMINISTRATION THESIS Supervisor: Dr. Tran Doan Kim
Hanoi – 2011
vi

TABLE OF CONTENTS

ACKNOWLEDGEMENT i
ABSTRACT ii
TÓM TẮT iv
TABLE OF CONTENTS vi

3.2 CRM success factors 16
4. Basic model of CRM 17
CHAPTER 2. ANALYSIS AND ASSESMENT ON CUSTOMER
RELATIONSHIP MANAGEMENT AT ILA 31
2.1 About ILA 31
2.1.1 Introduction about ILA 31
2.1.3 ILA principle 32
2.2 Assessment on Customer relationship management in ILA 34
2.2.1 Research method description 34
2.2.2 Description of the Research process 35
2.2.3 The research survey and results 37
2.2.4. Interview result 44
2.2.5 Report research 47
2.2.6. Current loyal programmes 51
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CHAPTER 3 RECOMMENDATIONS TO IMPROVE THE CUSTOMER
RELATIONSHIP MANAGEMENT AT ILA 55
3.1 CRM – Training programme for ILA people – Create a CRM view 55
3.2 Improve Customer relationship software 58
3.2.1 It is not necessary to use complicated solution when simple solution does
58
3.2.2 Employees at all level can collect information 58
3.2.3 Tools should be customer-employee friendly 59
3.2.4 Report data need to be used, use data reported 64
3.3. Applying CRM model in improving CRM in getting, maintain and growing
customers. 66
3.3.1 CRM in getting and growing customers activities 66
3.3.2. CRM in maintaining customers – Building relationships 70
3.3.3 Privacy 76

x

LIST OF TABLES
Table 2.1 Number of Training centres 32
Table 2. 2 Number of responsed questionnaire 36
Table 2.3Tools to get ILA information 41
Table 2.4 Visitors based on programmes 48
Table 2.5 New sales based on programmes 49

1

INTRODUCTION

1. The thesis title
A study on Customer relationship management of ILA
2. The thesis necessity
ILA was established in 2000 in Ho Chi Minh City and opened Training
Centre Hanoi in 2007. After four years of operation, ILA Hanoi has not been
known on a large area. Thus, attracting new students is very difficult without
the help from the marketing department of Head office. Therefore, in order
to stabilize the company‘s revenue, it has become more urgent to make the
existing customers more loyal to ILA.
Thus, it is a necessity to have a suitable system of managing customers to get
the loyalty from the existing customers of ILA, to remain the service quality

collecting questionnaire and directly interview)
5. Type of research
The writer chooses the type of research is analytical because analytical research
often extends the descriptive approach to suggest or explain why or how something
is happening. Reminds about descriptive, descriptive research can be used to
identify and classify the elements or characteristics of the subject. With the
combination of descriptive and analytical research with analytical plays a main role,
the author locates and identifies the different factors (or variables) involved.
Quantitative techniques are most often used to collect, analyze and summarize data.
3

6. Research approach
The author urged to identify the main variable which causes low revenue at ILA
Hanoi. Due to the large range of factors, the author collected facts and figures to
find out specific problems. Quantitative is very supportive.
Although the quantitative is harder to design initially, the writer still apply it
because it brings highly detailed and structures and results can be easily collated
and presented statistically.
To well prediction, the author also use qualitative research. It is more subjects in
nature then quantitative research and involves examining and reflecting on the less
tangible aspects of a research subject.
7. Data sources and Processing
Primary data was collected from questionnaire and interview. Secondary data has
been performed by research of documents, annual/quarterly reports of ILA and
internet sources.
The author conducts this research by collecting both primary and secondary
information. To analyze the operating situation, the author use secondary with
filtering the useful information to have the big picture but supportive detail. This
data is not only for this research, the author has the ambition to use them for our
suggestion with the Board of director because it is from the real situation.

English centers in general. Many new services project might apply the method of
research and the recommendations, the conclusion of the study, from which they
can get useful information before starting new plan.
The frame of reference on the other hand could be interesting for new customers
when they have to find the English centre for their improvement of learning English
process in future.
5

The findings in theory will help both parties to reach the right target in supplying
English training service and being satisfied by service quality.
14. Follow-up
Further study will be taken on improvement of implementation customer
relationship management based on the experience and achievements of using and
perfecting in large range. Other way of study will be analyzing the impact of the
competition of other English centers and require the steps of avoiding and get over
the unexpected impacts.
15. The thesis structure
The thesis is started with the introduction part, followed by the three chapters
and the conclusion part:
Chapter 1: Literature review
Chapter 2: Analysis and assessment on the customer relationship
management in ILA
Chapter 3: Recommendations to improve the customer relationship
management in ILA

Katherine Lemon with Don and Martha in their working paper ―Managing the customer
lifetime value: The role of learning relationships‖ said that learning relationships brings
two benefits:

1
Sheaves, Daphne E. and James G.Barners "The fundamentals of Relationships: An exploration of
the concept to guide marketing implementation". Advances in Services marketing and
management, Vol 5., eds. Teresa A. Swartz, David E. Bowen and Stephen W.Brown, London, JAI
Press Inc.
7

The customer learns more about his own preferences from each experience and
from the firm‘s feedback, and is therefore able to shop, purchase, and handle some
aspect of his life more efficiently and effectively than was possible prior to this
relationship.
The enterprise learns more about its own strengths and weakness from each
interaction and from the customer‘s feedback, and it therefore able to market,
communicate, handle some aspect of its own tactics or strategy more efficiently and
effectively than was possible prior to the relationship
2
.
In conclusion, the root of any relationship is to satisfy the interest of both parties.
Relationship between customers and enterprises is the root of CRM that helps
enterprise increases its value. The reality is that becoming a customer-strategy
enterprise is about using information to gain a competitive advantage and deliver
growth and profit. Enterprises need to decide early on which customers they want to
have relationships with, which they do not, and what type of relationships to
nurture.
1.2 Characterize of relationship
The most important issue for us to consider is how well our own definition of

only involve routine, outbound communications, delivered the same way to every
customer.
Sixth, it is uniqueness. Relationships are constituted with individuals, not with
populations.
Finally, the ultimate requirement and product of a successful, continuing
relationship is trust. Shared values, interdependence, quality communication and no
opportunistic behavior are factors to of main contributors to formation of trust.
1.3 Relationship – value of company
Peter Drucker said, "The purpose of a business is to create customers."
4
Implied in
this words and his work is the importance of keeping those same customers and of
growing the depth of their relationship with company.

4
Peter F.Drucker, "The practice of management", Published by Elsevier Ltd, 2007, p.31
9

In the book Managing customer relationships, 2004, Don Peppers and Martha
Rogers said that: ―The goal of every enterprise is simply to get, keep, and grow
customers‖
5
. According to Michael Treacy and Fred Wiersema (The discipline of
market leaders, 1995), whether a business focuses its efforts on product innovation,
operational efficiency and low price, or customer intimacy, that firm must have
customers. This is true for non-profit as well as for profits, for firms large and
small, for public as well as private enterprise
6

Exhibit 1.1 is the reference about increasing the value of the company through

anticipating and responding to that customer‘s needs is the fastest way to increase
loyalty and make sure that customer is around for a long time. The second part-
increasing the sales yield per every contact-involves predicting a customer‘s needs
and reacting in real time to his actions with personalized, relevant offers.
George, in his book, Market-Driven strategy: Process for creating value, had the
agreement with Don and Martha and released a similar conclusion that ―it is an
enterprise approach to understanding and influencing customer behavior through
meaningful communications to improve customer acquisition, customer retention,
and customer profitability‖
7
.
From those views of Don and Martha, the author came to the statement:
Enterprises determined to build successful and profitable customer relationships
understand that the process of becoming an enterprise focused on building its value
by building customer value begins with: (1) A strategy or an ongoing process that
helps transform the enterprise from a focus on traditional selling or manufacturing
to a customer focus, while increasing revenues and profits; (2) The leadership and
commitment necessary to cascade the thinking and decision-making capability
throughout the organization that puts customer value and relationships first.

7
George S.Day, "Market driven strategy: process for creating value", Published by Free Press,
1999.
11

2. Customer relationship management (CRM)
2.1 Definition of CRM
Customer relationship management has been addressed by many academic
researchers. To some extend, customer relationship management is a widely-
implemented strategy for managing a company‘s interactions with customers,

.
I totally agree with two authors that CRM need to be comprehensive way because it
does not belong to sales and marketing or the customer service group. CRM must be
a way of doing business that touches all areas. The fact of the matter is that it costs a
company dramatically less to retain and grow an existing client, than it does to court
new ones. Customer relationship management is a business philosophy, describing a
strategy which places the customer at the heart of an organisation‘s processes,
activities and culture. While businesses will continue to expand their client base,
they must also focus on keeping and growing their best clients. Increasing ‗share of
customer‘ – in other words, the amount of business which each good client gives to
you – becomes as important as increasing market share. CRM can develop better
communication channels, collect vital data, like customer details and purchasing
histories; create detailed profiles such as customer preferences, deliver instant,
company-wide access to customer histories, identify new selling opportunities.
2.2The use of CRM during times
According to Lucy P. Roberts, CRM is one of those magnificent concepts that
swept the business world in the 1990's with the promise of forever changing the
way businesses small and large interacted with their customer bases
9
.
The 1980's saw the emergence of database marketing, which was simply a catch
phrase to define the practice of setting up customer service groups to speak
individually to all of a company's customers. In the case of larger, key clients it was

8
Don Peppers and Martha Rogers, "Managing customer relationships: A strategic frame work",
Published by John Wiley & Sons, Inc., Hoboken, New Jersy, 2004
9
Lucy P. Roberts, article on the "The History of CRM", Evaluseek Publishing
13

3.1 Benefit of CRM
CRM today is about using information technology systems to capture and track
your customers' needs. And CRM today is about integrating that intelligence into all
parts of the organization so everyone knows much about your customers: data
turned into information and information turned into customer-satisfying action. If
customer relationships are the heart of business success, then CRM is the valve the
pumps a company's life blood. As such, CRM is best suited to help businesses use
people, processes, and technology to gain insight into the behaviour and value of
customers. This insight allows for improved customer service, increased call centre
efficiency, added cross-sell and up sell opportunities, improved close rates,
streamlined sales and marketing processes, improved customer profiling and
targeting, reduced costs, and increased share of customer and overall profitability.
The impetus for this interest in CRM came from Reichheld, who demonstrated
dramatic increase in profits from small increases in customer retention rates.
Reichheld showed the dramatic increase in profits from small increases in customer
retention rates, " His studies showed that as little as a 5% increase in retention had
impacts as high as 95% on the net present value delivered by customers. Other
studies done by consultants such as McKinsey have shown that repeat customers
generate over twice as much gross income as new customers.
From some theories of authors, benefit of CRM can be divided into each party‘s
sake as below:
For business:
Implementing a customer relationship management (CRM) solution might involve
considerable time and expense. However, there are many potential benefits.
(1) A major benefit can be the development of better relations with existing
customers, which can lead to:
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- Increased sales through better timing by anticipating needs based on historic
trends

enterprises, customers know more clearly about enterprise and are served
attentively. They are cared from tiny things such as birthday, interests, demands,
etc.
For managers:
Managers need to modify business processes based on the customer's needs and
adopt computer services that enable the CRM strategy. CRM provides managers
variety of effectively supporting tools such as statistic analyze and assess business
situation in fastest way. Enterprises discover threats, hidden risks to give out timely
solutions. CRM also helps manager to evaluate job performance of employees.
For employees:
CRM allows staff to manage time and work effectively, helps them understand
customers‘ information to contact and take care customers and make reputation for
company and make customers retention.
3.2 CRM success factors
According to Kristin Anderson and Carol Kerr, Customer relationship management,
2002
10
, while clear intention fuels the power of CRM, there are several other
success factors to consider.
- Employees at all levels and all areas accurately collect information for the CRM
system.
Employees are most likely to comply appropriately with your CRM system when
they understand what information is to be captured and why it is important. They

10
Kristin Anderson and Carol Kerr, "Customer relationship management", McGraw-Hill, 2002
17

are also more likely to trust and use CRM data when they know how and why it was
collected.

Analyses of the database
Given the analyses, decisions about which customers to target
Tools for targeting the customers
How to build relationships with the targeted customers
Privacy issues
Metrics for measuring the success of the CRM program
Exhibit 1.2. Model of CRM
Step 1: Creating a Customer Database
A necessary first step to a complete CRM solution is the construction of a
customer database or information file. The task will involve seeking historical
customer contact data from internal sources such as accounting and customer
service. Ideally, the database should contain information about the following:
 Transactions: This should include a complete purchase history with
accompanying details (price paid, delivery date)
 Customer contacts: There is an increasing number of customer contact points
from multiple channels and contexts. This should include sales calls and
service requests, any customer- or company-initiated contact.
 Descriptive information: This is for segmentation and other data analysis
purposes.
 Response to marketing stimuli: This part of the information file should
contain the customer responded to a direct marketing initiative, a sales
contact, or any other direct contact.
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 The data should also be over time.
Companies have traditionally used a variety of methods to construct their
databases. For example, telecom companies built customer records from e-mails,
direct mail, telemarketing, and other customer contacts, with descriptive
information by department, division, and location; tour companies developed agents
to enlist the assistance of travel agents in building the database; some shops offer a