Chapter 7 - Minicase 2

QVC Moving CRM from TV to the Web

1. Visit the CRM learning center at www.darwinmang.com/learn/crm, and identify some CRM activities not cited in this case that QVC may consider to further increase customer loyalty.

   QVC may need to increase its interaction among its customers, perhaps encouraging the use of chat rooms for customers to talk about their purchases. QVC can also establish web pages where prospective customers can receive information about products being sold. If the information about new products was distributed in advance, this information can create excitement about the products, and increase sales.

2. Enter qvc.com and identify actions that the company does to increase trust in its e-business. Also, look at all customer-service activities. List as many as you can find.

   Trust is built on honesty and on a liberal return policy. See the example described in case itself: A jacket was sent because of the unavailability of a ring, so that some form of present could still be received in time for Christmas.

   Clear instruction on how to purchase and return, good information of what to do and how to contact customer service, where the customer can find QVC are some of the ways that QVC increases trust.

3. What is the advantage of having customer chat live online?

   One advantage is Virtual Marketing. In this approach customers sell each other. That's frequently more effective than sales staff selling.

   Another advantage is rapid awareness of product defects. In the chat room, unhappy or frustrated customers will share this opinion with others.

4. List the advantages of having online vs. Buying over the pone after watching QVC. What are the disadvantages?

   The Internet is faster. The client can buy right now. No other action such as making a phone call and waiting for the order to be taken is involved. It also empowers the customer, ensuring that they find the item that they expected, and lessens the opportunity for mistakes. Also there can be additional information on the product right at the portal, e.g., weight, colors, sizing, etc.

   The disadvantages are the loss of the personal dialogue. The customers interact with their PC, not with a person. On the phone any other questions can be statedimmediately and the answers pursued until all is clear. On the portal, that is more difficult, since the purchaser is typically not able to get answers quickly to questions. In part this may be due to the search feature employed.

5. Enter the chat room and the bulletin board. What is the general mood of the participants? Are they happy with QVC? Why or why not?

   The people in the chat room are mostly happy. They are been taken care of. Their problems are been addressed. Very few issues are not resolved.

6. QVC said that the key for its success is customer trust. Explain why.

   Customers return to buy more products. It is cheaper to service an existing customer well, than it is to acquire a new one.

7. Examine the new metrics that QVC uses to measure customer service. Can the company be successful by ignoring the productivity measures used before?

   The company IS successful. But the productivity measures are not ignored; they are just stated or even measured differently.