Description
Most Slovaks today live within the borders of the independent Slovakia
Case Study of Customer Relationship Management in Slovakia
Abstract In today's highly competitive environment, an increasing number of companies have realized the importance of becoming more customer-centric. They invested a large amount of time and resources in a Customer Relationship Management (CRM). However, it is increasingly more difficult for companies to know how to retain an existing customer and even harder getting new one. It is six to seven times more expensive and time consuming to gain a new customer than to keep an existing one. Not only the price is no longer critical, customers are changing their expectations and behaviour. They can easily compare the prices and change the plan from whom to buy at a minimal cost. This puts increasing demands on companies in the area of customer care and customer service. One of the ways to retain customer base and to ensure recurring purchases is adjusting to meet customer's needs, ensuring its satisfaction - customer must be at the heart of company interests. Appropriately selected IT solution of CRM can help them. Despite this fact, the majority of companies still don't use correctly all the possibilities which CRM offering or many implemented CRM projects failed to be successful. The problem is that these companies often do not know why they were not successful. Other companies will make the same mistakes if these failures are not recognized. This paper is focused a brief overview of the current status of CRM in Slovak companies - the base research results. Keywords: Custom Relationship Management, Custom, Company, Research.
1.
INTRODUCTION
History of CRM goes back to the 60-ties when the ability to win and keep customers became one of the key factors of successful business. CRM as a philosophy gained ground in the 80-ties. Since then, it has experienced great development. Situation in the field of CRM copied the development all over the world as well as in Slovakia and other countries of Middle and Eastern Europe. In this period of time, most of the large companies were in the phase of general restructuring which was often connected with consolidation and centralization or organizational units and supporting systems. Enterprises gradually realized the importance of building and sustaining the longterm beneficial relationships with their customers. Significant development of CRM has mainly occurred in the last few years. In a large extent, it is related to the arrival of foreign enterprises that introduced CRM standards. Nowadays, every enterprise that wants to survive on the market, and grow eventually, has to solve the problem of satisfying the individual needs of customers and sustaining the long-term beneficial relationships with them. [1] Adopting CRM brings the knowledge that long-term relationships with customers are among the most important assets of each enterprise providing better profitability, competitive advantages, stabilization of endangered relationships with customers, reaching the customers' satisfaction with the complaints, elimination of negative advertising and sustaining of positive image, reduction of distrust and potential conflicts etc. [2, 3] This paper contributes to better understanding of the CRM problem, mainly in the enterprises in Slovakia.
2.
THEORETICAL BACKGROUND OF THE PROBLEM
Customer relationship management problem is very wide and it is considered one of the elementary means of the enterprise's competitiveness. It reacts to the fact that the main source of all gains and profits are the
customers, not the products. CRM refers to "Customer relationship management" and this abbreviation is often used in the Slovak and Czech literature. However, it may sometimes be confusing. Majority of authors explains this notion as Customer Relationship Management. Part of them understands this abbreviation as Customer Relationship Marketing. Others, who claim that not all customers necessarily want to build a relationship with their supplier, prefer to use only the phrase „Customer Management". [1, 4, 5] Following the aforesaid, it is obvious that CRM is focused on customers. This paper will also use the abbreviation "CRM" in the meaning of Customer Relationship Management. Generally true and respected definition of CRM does not exist. CRM definition is still not quite clear, because it is interpreted in several ways that are different in their point of view. According to the literature, the CRM definition can be specified as follows: V. Chlebovsky [6] defines CRM as an interactive process with goal to reach the optimal balance between the business investment and satisfying the needs of customers. Balance optimum is determined by maximum profit of both sides and assumption of reaching the optimum is creating of long-term partnership relationships with customers. As the most complex definition is considered the approach of J. Dohnal [7] who understands CRM as systematic providing of quality services by means of all available business channels. Others see CRM as a supporting technology, it means communication and software. Others understand CRM as an effort to provide particular information by employees that are in daily contact with customers. [4, 5] Different view over CRM has been brought by H. Wessling. According to H. Wressling [8], CRM means active creation and sustaining of long-term beneficial relationships with customers. Communication with customers is secured by suitable technologies that present the very processes with added value for shareholders and employees of the enterprise. Moreover, H. Wressling underlines the integrative function of CRM as a complex organizational unit superior within the enterprise structure by several departments. He also emphasizes the need to separate the functional definition of CRM from the institutional one. Following Wressling, CRM in its functional meaning presents the customer relationship management characteristic by sequence of interactions. To avoid isolated partial solutions in practice, it is necessary to create institutional structure of CRM in the form of organizational unit which provides planning, management and control of the entire sequence of interactions in the enterprise. Better parts of CRM activities are utilized in the functional way. [4, 5, 8] F. Buttle [9] defines CRM as the core of business strategy that integrates by internal processes, functions and external network for creating and supplying of the values for target customers. It is based on high quality data concerning the customers with the support of information technologies. Following these definitions, it is obvious that CRM is not primary only technological matter - it is not possible to solve it only by using the set of IT supporting tools, implementing of the software or buying the most modern telephone exchange. It is necessary to set the new processes in order to gain confidence in customers and keep the customer or product supply. Moreover, it is keeping of permanent clients; it means keeping the customers and offering the products that these customers need. It is a process that must be completed by every enterprise which wants to be successful on the market. In case that the enterprise does not manage to carry out the aforesaid and if its management does not understand that CRM is firstly the way (strategy) of behaviour towards customers, neither solutions, however good, will help with its implementation and effective functioning. Any methodology, method or technique and tool are good and effective only to the extent to which the person manipulates with them. [1, 5]
3.
SPECIFYING THE PROBLEMS AND SETTING UP THE HYPOTHESES
Basic mission of CRM strategy is keeping the regular customers through collecting of information about them, their classification and further effective utilization. Utilization of all the tools offered by CRM is not always necessary. There is no point in implementing CRM in the form of call centres or sale automation in enterprises with number of employees up to 10 and only several customers (up to 50). These relationships can be kept individually, eventually by using some other CRM tools. Significance grows in case of great
fluctuation of sellers or when the number of customers exceeds 100, business is done on international markets and customer data are generated in all fields of the enterprise. New seller will have all the necessary data about the customer, or more precisely, the data can be used to keep the existing customer or gaining the new one on the ground of good reference. [4, 5, 10] If these enterprises did not have unified system of customer relationship management, all the gathered information about the customers would disappear and this valuable information could not be used for the benefit of enterprise. Concerning the mentioned fact, the first hypothesis was set up. It will be proved or disapproved in the next part of this article [5]: H1: There is a relation between utilizing of CRM and the size of enterprises. Following the results of CRM theoretical knowledge analysis, it is possible to say that proper understanding of CRM strategy basis is a frequent problem. Majority of employees understand CRM as technology supported by CRM and not as enterprise strategy focused on the customer. On the ground of the aforesaid, the second hypothesis was set up. It will be proved or disapproved in the next part of this article. [5]: H2: There is a relation between the size of enterprises and level of theoretical knowledge on CRM. Based on the problems mentioned above, the goal of this research was set up. It is the „analysis of current status of CRM utilizing in industrial enterprises in Slovakia ". This research can be characterised as quantitative. Research hypotheses were descriptive. Main goal was to gain the exact, objective and verifiable data on the examined problem. [5, 11, 12] 4. METHODOLOGY AND METHODS OF THE RESEARCH
Research was focused mainly on examination of the current state of CRM utilization in industrial enterprises in the Slovak Republic. It was an explorative or more precisely investigative research. Main object of study within this research were industrial enterprises operating in the Slovak Republic regardless of their size. Selected sample was chosen randomly. Considering the time demandingness, the overall amount was set up for the sample of 800 addressed enterprises. Contacting of respondents was carried out in 2011. Questioning method in the form of electronic questionnaire was selected to collect the data. Results of the theoretical knowledge analysis, enterprise websites and their promotional material were used to design the questionnaire. Questionnaire was designed to cover the problem in the most complex way. Questionnaire structure was divided into 2 parts - input (introductory information on securing of respondent's anonymity, instructions, and request for handing in the questionnaire plus thanking) and the main part involving the chronological order of individual questionnaire items and word part. Questionnaire included 10 questions. According to the degree of answers latitude, closed questions were used in this questionnaire. These questions offered in advance one and more possible variations of answers. Then there were partially closed questions which, instead of alternative answers, offered selection with opened ending. Main reason of selecting the closed questions was that it was a quantitative research with relatively high number of respondents. In the questionnaire, the structured answers were used as well as the answers to complete. Moreover, the questionnaire involved one filter question. Goal of this question was to disable the respondents who do not use CRM to complete the questionnaire. In case of this question, the respondents had to state the reason why they do not use CRM strategies. Research examination procedure came out directly from the set goal, which was possible to fulfil only on the ground of detailed and systematic processing of sufficient number of theoretical and practical knowledge in the field of CRM, gained from primary and secondary resources (theses from the field of CRM worked out at the Institute of Industrial Engineering, Management and Quality at the Faculty of Materials Science and Technology in Trnava, studies of analysis and questionnaire surveys carried out at other universities and in the business practice abroad and in Slovakia, studies of domestic and foreign scientific literature, documents, scientific magazines, periodicals, monographs, educational texts, interviews with scientists and professionals from the practice
etc.). To reach the expected goal, many different approaches, methods, techniques or tools of scientific research were used. Time, organisational, personal, technical and expense possibilities of research solution were taken into consideration. While working out the problem, the methods for preparation to scientific research were applied (study of scientific literature, working out the literature retrieval, working out the excerpts, their processing and classification, using the literature), as well as the methods of gaining new data (monitoring, document analysis and questionnaire), methods of data processing (quantitative methods, such as methods of setting up the statistical characteristics - Pearson's chi-square test and qualitative methods, such as analysis and synthesis, induction and deduction, comparison and generalisation).Including the methods into the individual phases of the solving process was not constant. Some methods were used in other phases of the problem solving process as well. As additional methods were used graphic presentations, table visualisation and word and number interpretation. Transmission of all gained data was provided through MS Excel and on-line statistic package. Moreover, whole rank of other creative methods, techniques and tools of data file processing were used marginally. [5, 11, 12] 5. TESTING AND EVALUATION OF THE HYPOTHESES
Data gained through the questionnaires were analysed and interpreted using the Pearson's chi-square test of percentage formulation, graphic presentation (column charts) and table formulation with the help of on-line statistic package. Statistical significance of the results was evaluated at the alpha level (?) 0.05. It was the basic descriptive statistics. When using the Pearson's chi-square test, the contingency table was used. Data from this table were filled in the on-line form and the resultant values were generated consequently. Pearson's chi-square test verified if the differences between the real and the expected multitudes are only accidental or they are too high to be considered accidental. It would mean they are statistically significant. Goal of the first hypothesis was to verify the assumption if there is a relation between the size of enterprises and using CRM. Main assumption was that using CRM is preferred mainly by large enterprises with hundreds of customers compared to small enterprises. Finally, the zero hypothesis was set up: H10: There is no relation between using CRM and the size of enterprises. On the contrary to this statement, the alternative hypothesis was set up: H11: There is a relation between using CRM and the size of enterprises. Value of the Pearson's chi-square test at 9 degrees of latitude was 20.54 and reached signification (0.014857) experienced value lower than alpha. It means that the result was statistically significant. Zero hypothesis was dismissed and at the same time, the alternative hypothesis was proved. There is a relation between using CRM and the size of enterprises. Goal of the second hypothesis was to find out if there is a relation between the level of theoretical knowledge on CRM and the size of enterprises. It was assumed that CRM was mistaken in most cases; it was mainly understood as information system and not as the enterprise strategy. This assumption was proved, whereas the majority of respondents considered CRM more as a technical matter or address book of customers with contacts. Statistical testing was carried out in the same way as during the statistical testing of the first hypothesis. Following the aforesaid, the second zero hypothesis was set up: H2 0: There is no relation between the size of enterprises and the correct understanding of the term CRM. On the contrary to this statement, the alternative hypothesis was set up: H21: There is a relation between the size of enterprises and the correct understanding of the term CRM. Value of the Pearson's chi-square test at 15 degrees of latitude was 22.752 and reached signification (0.08954918) experienced value higher than alpha. It means that the result was statistically nonsignificant. In this case, the zero hypothesis was not dismissed and following the results, it was obvious that there is no relation between the level of theoretical knowledge on CRM and the size of enterprises. [5] 6. RESEARCH RESULTS ANALYSIS
Collecting of research data was carried out from 11th of March 2011 to 15th of April 2011. From the total number of addressed enterprises, 93 respondents answered the questionnaire. It means 11.60 % return. In the research participated 30 % of respondents from micro enterprises, 27 % respondents from small
enterprises, 32 % of respondents from middle-sized enterprises and only 11 % of respondents from large enterprises with the number of employees over 250. From the total number of enterprises, only 7.9 % of micro enterprise dealt with the problem. Most frequent reason of not using CRM was the unfamiliarity or the enterprises did not have the reason to deal with the problem. Research results also confirmed the positive development of using CRM in micro enterprises. These results showed that there were also such enterprises which were implementing CRM at the time of the research or they were deciding to implement it in near future. As the greatest advantage of CRM, they considered trouble free running of business processes and more individual contacts with the customers. Their level was characterised mainly as centric and segment (division according to Kop?iva) and under the term CRM they understood the address book of customers with contacts or information system. For better access to information on customers, they mostly used the electronic file. When implementing CRM, the micro enterprises experienced great problems with the absence or insufficient formulation of CRM strategy. They did not deal with performance monitoring and that is why the majority of them could not estimate the satisfaction with CRM system. Unlike the micro enterprises, 40 % of respondents coming from small enterprises used CRM. For the majority of them, CRM means only technical matter. Small enterprises frequently experienced very high, globally individualized level so the monitoring of individual needs of each customer in all areas of enterprise operation was provided. To solve the individual problems of customers better, they used advanced complex CRM electronic systems. They stated that trouble free running of business processes and more individual contacts with customers were the greatest contribution. During implementation, they experienced problems with employing the key users by other activities. Moreover, they did not monitor CRM performance as well in spite of the fact that the majority of them were satisfied with the current state. As well as in previous case, 40 % of respondents from middle- sized enterprises used CRM to provide long-term relationship with the customers using the information system. They experienced mainly the centric level which provided enough information on customers and that lead to the united behaviour towards them. Among the information tools, they used complex CRM systems with all basic modules. As a useful advantage of CRM, they considered trouble free running of business processes. When implementing CRM, they experienced great problems with the absence or insufficient formulation of CRM strategy. Middle-sized enterprises also did not monitor CRM performance and they could not identify the satisfaction with the system. Maximum utilization of CRM was reached in large enterprises. More than 70 % of them dealt with the stated problem. Their level was individualized and segmented maximally. As the information tools, they used the programs for contacts administration and time management. Under the term CRM, they understood the information system or customers address book with the contacts. Trouble free running of business processes and more individual contacts with customers were considered the greatest contribution. Setting the strategy during the implementation was considered the greatest problem. They gained the feedback concerning the fruitfulness of system functioning with the help of the financial indexes. Majority of them also could not consider the satisfaction with the overall functioning of CRM. [5] 7. CONCLUSION
Modern trends in the field of customer relationship management bring new ways how to use better the tools to reach high system productivity and improvement of enterprise financial performance. [13] In constantly changing market environment, enterprises have to use modern methods, techniques and ideas of management. At the same time, they need to learn how to implement these to the practice. [14] Implementation of CRM in enterprises should bring positive effect mainly by increasing the number of loyal customers, optimizing cost of sales activity and so increasing the competitive advantage. Increase in value of customers should reflect on the increase of overall profitability of enterprises. Regular evaluation of customer relationships undoubtedly contributes to successful CRM functioning. Following the research results, it is possible to say that the enterprises in Slovakia showed greatest deficiencies in monitoring of their CRM performance. Majority of these enterprises focused on monitoring of financial indexes. On the one hand,
these indexes give the real view of achievements or failures in the past, but on the other hand they do not enable to predict the future. Moreover, majority of enterprises regardless of their size could not estimate the satisfaction with actual functioning of CRM strategy. Research further pointed out that 50 % of micro enterprises used electronic file using MS Office in spite of the fact that this system does not enable documents administration, analytic or statistic tools, or automation of reports. On the ground of the research results, two hypotheses were verified. Test confirmed the validity of the first hypothesis. Its assumption was the existence of relation between the usage of CRM and the size of enterprises. Young enterprises or more precisely the enterprises with smaller number of employees do not have as many customers as the enterprises with higher number of employees and the existing enterprises. Respondents from enterprises pointed out to the fact that CRM is usually mistaken and it is considered only a technical matter. Following the aforesaid, the second hypothesis was dismissed and it is assumed that there is no relation between the theoretical knowledge on the given problem and the size of enterprises in Slovakia. LITERATURE
[1] [2] MIŠÁK, P.: Methodology Proposal for Evaluation of Successful CRM Implementation within Industrial Companies. [Ph.D. Thesis]. Trnava: STU MTF, 2011. p. 122. URDZIKOVÁ, J.: Komplexné a systémové riadenie s?ažností v organizáciách. Ekonomika a spolo?nos?: Scientific Journal of the Faculty of Econimics, Matej Bel University in Banská Bystrica. Vol. 11, No. 1. p. 68--77. ISSN 13357069. [on-line] [2012-03-01]. Available at www: http://casopisy.euke.sk/mtp/clanky/1-2010/mtp1-2010.pdf URDZIKOVÁ, J.; BAB?ANOVÁ, (rod. MOLNÁROVÁ) D.: Customer - the Key to Competitive Advantage. In: Management, Economics and Business Development in the New European Conditions: IV. International Scientific Conference. Brno, 26.-27.5.2006. - Brno: Brno University of Technology, 2006; Brno: CERM, 2006. ISBN 80-7204-454-0. KUBINDOVÁ, K.: Innovation and Customer Relationship Management. [Diploma Thesis]. Masaryk University. Faculty of Economics and Administration, 2009. Supervisor: Alena Klapalová, Ph.D., p. 76. URBAN, P.: Proposals for More Efficient Use of CRM Industrial Companies in Slovakia. [ Bachelor Thesis] Supervisor: Martina Jakábová, Ph.D. - Trnava: MTF STU, 2011. P. 50. CHLEBOVSKÝ, V.: CRM - ?ízení vztah? se zákazníky, 1st. Edition. Brno: Computer Press, 2005. p. 190. ISBN 80-251-0798-1, p. 23. DOHNAL, J.:?ízení vztah? se zákazníky. Procesy, pracovníci, Technologie. Prague: Grada Publishing, 2002. p. 161. ISBN 80-247-0401-3. WESSLING, H.: Aktivní vztah k zákazník?m pomocí CRM. Strategie, praktické p?íklady a scéná?e. Prague: Grada Publishing 2003, p. 196. ISBN 80-247-0569-9. p.16 - 20. BUTTLE, F.: Customers Relationship Management, Concept and Tools. 1st. Edition. Oxford: Elsevier ButterworthHeinemann, 2004. p. 359. ISBN 0-7506-5502-X. TATIERSKY, I.: CRM - nástroj pre zvýšenie efektívnosti riadenia predaja. [on-line] [2012-03-01]. Available at www: http://tatiersky.com/2011/09/03/crm-nastroj-pre-zvysenie-efektivnosti-riadenia-predaja/. KOZEL, R. and col.: Moderní marketingový výzkum. Prague: Grada Publishing, 2005. p. 280. ISBN: 802470966X. p. 63-66 and p. 120. FORET, M.; STÁVKOVÁ, J.: Marketingový výzkum: Jak poznávat své zákazníky. Prague: Grada Publishing, a.s., 2003, p. 159. ISBN 80-247-0385-8. p. 35-39 and p. 54-55. SANIUK, A.; SANIUK S.: Zastosowanie teorii ogranicze ? w zarz?dzaniu zasobami mikro i ma ?ych przedsi?biorstw. Zeszyty Naukowe Uniwersytetu Szczeci?skiego. Ekonomiczne Problemy Us?ug .- 2010, nr 585 (50), p. 355--363: rys.tab.summ. WITKOWSKI, K.: The Innovativeness in Logistics Infrastructure Management of the City for Sustainable Development. Gorzów Wielkoposki, 2012. ISBN 978-83-63134-129, 978-83-63134-242, str. 141 - 159. [on-line] [2012-01-16]. Available at www: http://zgora.academia.edu/KrzysztofWitkowski/Papers/1283491/The_innovativeness_in_logistics_infrastructure_ management_of_the_city_for_Sustainable_Development. HRABLIK CHOVANOVÁ, H.: Moderné prístupy v riadení podnikov - projektové riadenie. In: Trends economics and management. - ISSN 1802-8527. -Vol. II, No. 3 (2008), p. 75-79
[3]
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[14]
[15]
doc_400230105.docx
Most Slovaks today live within the borders of the independent Slovakia
Case Study of Customer Relationship Management in Slovakia
Abstract In today's highly competitive environment, an increasing number of companies have realized the importance of becoming more customer-centric. They invested a large amount of time and resources in a Customer Relationship Management (CRM). However, it is increasingly more difficult for companies to know how to retain an existing customer and even harder getting new one. It is six to seven times more expensive and time consuming to gain a new customer than to keep an existing one. Not only the price is no longer critical, customers are changing their expectations and behaviour. They can easily compare the prices and change the plan from whom to buy at a minimal cost. This puts increasing demands on companies in the area of customer care and customer service. One of the ways to retain customer base and to ensure recurring purchases is adjusting to meet customer's needs, ensuring its satisfaction - customer must be at the heart of company interests. Appropriately selected IT solution of CRM can help them. Despite this fact, the majority of companies still don't use correctly all the possibilities which CRM offering or many implemented CRM projects failed to be successful. The problem is that these companies often do not know why they were not successful. Other companies will make the same mistakes if these failures are not recognized. This paper is focused a brief overview of the current status of CRM in Slovak companies - the base research results. Keywords: Custom Relationship Management, Custom, Company, Research.
1.
INTRODUCTION
History of CRM goes back to the 60-ties when the ability to win and keep customers became one of the key factors of successful business. CRM as a philosophy gained ground in the 80-ties. Since then, it has experienced great development. Situation in the field of CRM copied the development all over the world as well as in Slovakia and other countries of Middle and Eastern Europe. In this period of time, most of the large companies were in the phase of general restructuring which was often connected with consolidation and centralization or organizational units and supporting systems. Enterprises gradually realized the importance of building and sustaining the longterm beneficial relationships with their customers. Significant development of CRM has mainly occurred in the last few years. In a large extent, it is related to the arrival of foreign enterprises that introduced CRM standards. Nowadays, every enterprise that wants to survive on the market, and grow eventually, has to solve the problem of satisfying the individual needs of customers and sustaining the long-term beneficial relationships with them. [1] Adopting CRM brings the knowledge that long-term relationships with customers are among the most important assets of each enterprise providing better profitability, competitive advantages, stabilization of endangered relationships with customers, reaching the customers' satisfaction with the complaints, elimination of negative advertising and sustaining of positive image, reduction of distrust and potential conflicts etc. [2, 3] This paper contributes to better understanding of the CRM problem, mainly in the enterprises in Slovakia.
2.
THEORETICAL BACKGROUND OF THE PROBLEM
Customer relationship management problem is very wide and it is considered one of the elementary means of the enterprise's competitiveness. It reacts to the fact that the main source of all gains and profits are the
customers, not the products. CRM refers to "Customer relationship management" and this abbreviation is often used in the Slovak and Czech literature. However, it may sometimes be confusing. Majority of authors explains this notion as Customer Relationship Management. Part of them understands this abbreviation as Customer Relationship Marketing. Others, who claim that not all customers necessarily want to build a relationship with their supplier, prefer to use only the phrase „Customer Management". [1, 4, 5] Following the aforesaid, it is obvious that CRM is focused on customers. This paper will also use the abbreviation "CRM" in the meaning of Customer Relationship Management. Generally true and respected definition of CRM does not exist. CRM definition is still not quite clear, because it is interpreted in several ways that are different in their point of view. According to the literature, the CRM definition can be specified as follows: V. Chlebovsky [6] defines CRM as an interactive process with goal to reach the optimal balance between the business investment and satisfying the needs of customers. Balance optimum is determined by maximum profit of both sides and assumption of reaching the optimum is creating of long-term partnership relationships with customers. As the most complex definition is considered the approach of J. Dohnal [7] who understands CRM as systematic providing of quality services by means of all available business channels. Others see CRM as a supporting technology, it means communication and software. Others understand CRM as an effort to provide particular information by employees that are in daily contact with customers. [4, 5] Different view over CRM has been brought by H. Wessling. According to H. Wressling [8], CRM means active creation and sustaining of long-term beneficial relationships with customers. Communication with customers is secured by suitable technologies that present the very processes with added value for shareholders and employees of the enterprise. Moreover, H. Wressling underlines the integrative function of CRM as a complex organizational unit superior within the enterprise structure by several departments. He also emphasizes the need to separate the functional definition of CRM from the institutional one. Following Wressling, CRM in its functional meaning presents the customer relationship management characteristic by sequence of interactions. To avoid isolated partial solutions in practice, it is necessary to create institutional structure of CRM in the form of organizational unit which provides planning, management and control of the entire sequence of interactions in the enterprise. Better parts of CRM activities are utilized in the functional way. [4, 5, 8] F. Buttle [9] defines CRM as the core of business strategy that integrates by internal processes, functions and external network for creating and supplying of the values for target customers. It is based on high quality data concerning the customers with the support of information technologies. Following these definitions, it is obvious that CRM is not primary only technological matter - it is not possible to solve it only by using the set of IT supporting tools, implementing of the software or buying the most modern telephone exchange. It is necessary to set the new processes in order to gain confidence in customers and keep the customer or product supply. Moreover, it is keeping of permanent clients; it means keeping the customers and offering the products that these customers need. It is a process that must be completed by every enterprise which wants to be successful on the market. In case that the enterprise does not manage to carry out the aforesaid and if its management does not understand that CRM is firstly the way (strategy) of behaviour towards customers, neither solutions, however good, will help with its implementation and effective functioning. Any methodology, method or technique and tool are good and effective only to the extent to which the person manipulates with them. [1, 5]
3.
SPECIFYING THE PROBLEMS AND SETTING UP THE HYPOTHESES
Basic mission of CRM strategy is keeping the regular customers through collecting of information about them, their classification and further effective utilization. Utilization of all the tools offered by CRM is not always necessary. There is no point in implementing CRM in the form of call centres or sale automation in enterprises with number of employees up to 10 and only several customers (up to 50). These relationships can be kept individually, eventually by using some other CRM tools. Significance grows in case of great
fluctuation of sellers or when the number of customers exceeds 100, business is done on international markets and customer data are generated in all fields of the enterprise. New seller will have all the necessary data about the customer, or more precisely, the data can be used to keep the existing customer or gaining the new one on the ground of good reference. [4, 5, 10] If these enterprises did not have unified system of customer relationship management, all the gathered information about the customers would disappear and this valuable information could not be used for the benefit of enterprise. Concerning the mentioned fact, the first hypothesis was set up. It will be proved or disapproved in the next part of this article [5]: H1: There is a relation between utilizing of CRM and the size of enterprises. Following the results of CRM theoretical knowledge analysis, it is possible to say that proper understanding of CRM strategy basis is a frequent problem. Majority of employees understand CRM as technology supported by CRM and not as enterprise strategy focused on the customer. On the ground of the aforesaid, the second hypothesis was set up. It will be proved or disapproved in the next part of this article. [5]: H2: There is a relation between the size of enterprises and level of theoretical knowledge on CRM. Based on the problems mentioned above, the goal of this research was set up. It is the „analysis of current status of CRM utilizing in industrial enterprises in Slovakia ". This research can be characterised as quantitative. Research hypotheses were descriptive. Main goal was to gain the exact, objective and verifiable data on the examined problem. [5, 11, 12] 4. METHODOLOGY AND METHODS OF THE RESEARCH
Research was focused mainly on examination of the current state of CRM utilization in industrial enterprises in the Slovak Republic. It was an explorative or more precisely investigative research. Main object of study within this research were industrial enterprises operating in the Slovak Republic regardless of their size. Selected sample was chosen randomly. Considering the time demandingness, the overall amount was set up for the sample of 800 addressed enterprises. Contacting of respondents was carried out in 2011. Questioning method in the form of electronic questionnaire was selected to collect the data. Results of the theoretical knowledge analysis, enterprise websites and their promotional material were used to design the questionnaire. Questionnaire was designed to cover the problem in the most complex way. Questionnaire structure was divided into 2 parts - input (introductory information on securing of respondent's anonymity, instructions, and request for handing in the questionnaire plus thanking) and the main part involving the chronological order of individual questionnaire items and word part. Questionnaire included 10 questions. According to the degree of answers latitude, closed questions were used in this questionnaire. These questions offered in advance one and more possible variations of answers. Then there were partially closed questions which, instead of alternative answers, offered selection with opened ending. Main reason of selecting the closed questions was that it was a quantitative research with relatively high number of respondents. In the questionnaire, the structured answers were used as well as the answers to complete. Moreover, the questionnaire involved one filter question. Goal of this question was to disable the respondents who do not use CRM to complete the questionnaire. In case of this question, the respondents had to state the reason why they do not use CRM strategies. Research examination procedure came out directly from the set goal, which was possible to fulfil only on the ground of detailed and systematic processing of sufficient number of theoretical and practical knowledge in the field of CRM, gained from primary and secondary resources (theses from the field of CRM worked out at the Institute of Industrial Engineering, Management and Quality at the Faculty of Materials Science and Technology in Trnava, studies of analysis and questionnaire surveys carried out at other universities and in the business practice abroad and in Slovakia, studies of domestic and foreign scientific literature, documents, scientific magazines, periodicals, monographs, educational texts, interviews with scientists and professionals from the practice
etc.). To reach the expected goal, many different approaches, methods, techniques or tools of scientific research were used. Time, organisational, personal, technical and expense possibilities of research solution were taken into consideration. While working out the problem, the methods for preparation to scientific research were applied (study of scientific literature, working out the literature retrieval, working out the excerpts, their processing and classification, using the literature), as well as the methods of gaining new data (monitoring, document analysis and questionnaire), methods of data processing (quantitative methods, such as methods of setting up the statistical characteristics - Pearson's chi-square test and qualitative methods, such as analysis and synthesis, induction and deduction, comparison and generalisation).Including the methods into the individual phases of the solving process was not constant. Some methods were used in other phases of the problem solving process as well. As additional methods were used graphic presentations, table visualisation and word and number interpretation. Transmission of all gained data was provided through MS Excel and on-line statistic package. Moreover, whole rank of other creative methods, techniques and tools of data file processing were used marginally. [5, 11, 12] 5. TESTING AND EVALUATION OF THE HYPOTHESES
Data gained through the questionnaires were analysed and interpreted using the Pearson's chi-square test of percentage formulation, graphic presentation (column charts) and table formulation with the help of on-line statistic package. Statistical significance of the results was evaluated at the alpha level (?) 0.05. It was the basic descriptive statistics. When using the Pearson's chi-square test, the contingency table was used. Data from this table were filled in the on-line form and the resultant values were generated consequently. Pearson's chi-square test verified if the differences between the real and the expected multitudes are only accidental or they are too high to be considered accidental. It would mean they are statistically significant. Goal of the first hypothesis was to verify the assumption if there is a relation between the size of enterprises and using CRM. Main assumption was that using CRM is preferred mainly by large enterprises with hundreds of customers compared to small enterprises. Finally, the zero hypothesis was set up: H10: There is no relation between using CRM and the size of enterprises. On the contrary to this statement, the alternative hypothesis was set up: H11: There is a relation between using CRM and the size of enterprises. Value of the Pearson's chi-square test at 9 degrees of latitude was 20.54 and reached signification (0.014857) experienced value lower than alpha. It means that the result was statistically significant. Zero hypothesis was dismissed and at the same time, the alternative hypothesis was proved. There is a relation between using CRM and the size of enterprises. Goal of the second hypothesis was to find out if there is a relation between the level of theoretical knowledge on CRM and the size of enterprises. It was assumed that CRM was mistaken in most cases; it was mainly understood as information system and not as the enterprise strategy. This assumption was proved, whereas the majority of respondents considered CRM more as a technical matter or address book of customers with contacts. Statistical testing was carried out in the same way as during the statistical testing of the first hypothesis. Following the aforesaid, the second zero hypothesis was set up: H2 0: There is no relation between the size of enterprises and the correct understanding of the term CRM. On the contrary to this statement, the alternative hypothesis was set up: H21: There is a relation between the size of enterprises and the correct understanding of the term CRM. Value of the Pearson's chi-square test at 15 degrees of latitude was 22.752 and reached signification (0.08954918) experienced value higher than alpha. It means that the result was statistically nonsignificant. In this case, the zero hypothesis was not dismissed and following the results, it was obvious that there is no relation between the level of theoretical knowledge on CRM and the size of enterprises. [5] 6. RESEARCH RESULTS ANALYSIS
Collecting of research data was carried out from 11th of March 2011 to 15th of April 2011. From the total number of addressed enterprises, 93 respondents answered the questionnaire. It means 11.60 % return. In the research participated 30 % of respondents from micro enterprises, 27 % respondents from small
enterprises, 32 % of respondents from middle-sized enterprises and only 11 % of respondents from large enterprises with the number of employees over 250. From the total number of enterprises, only 7.9 % of micro enterprise dealt with the problem. Most frequent reason of not using CRM was the unfamiliarity or the enterprises did not have the reason to deal with the problem. Research results also confirmed the positive development of using CRM in micro enterprises. These results showed that there were also such enterprises which were implementing CRM at the time of the research or they were deciding to implement it in near future. As the greatest advantage of CRM, they considered trouble free running of business processes and more individual contacts with the customers. Their level was characterised mainly as centric and segment (division according to Kop?iva) and under the term CRM they understood the address book of customers with contacts or information system. For better access to information on customers, they mostly used the electronic file. When implementing CRM, the micro enterprises experienced great problems with the absence or insufficient formulation of CRM strategy. They did not deal with performance monitoring and that is why the majority of them could not estimate the satisfaction with CRM system. Unlike the micro enterprises, 40 % of respondents coming from small enterprises used CRM. For the majority of them, CRM means only technical matter. Small enterprises frequently experienced very high, globally individualized level so the monitoring of individual needs of each customer in all areas of enterprise operation was provided. To solve the individual problems of customers better, they used advanced complex CRM electronic systems. They stated that trouble free running of business processes and more individual contacts with customers were the greatest contribution. During implementation, they experienced problems with employing the key users by other activities. Moreover, they did not monitor CRM performance as well in spite of the fact that the majority of them were satisfied with the current state. As well as in previous case, 40 % of respondents from middle- sized enterprises used CRM to provide long-term relationship with the customers using the information system. They experienced mainly the centric level which provided enough information on customers and that lead to the united behaviour towards them. Among the information tools, they used complex CRM systems with all basic modules. As a useful advantage of CRM, they considered trouble free running of business processes. When implementing CRM, they experienced great problems with the absence or insufficient formulation of CRM strategy. Middle-sized enterprises also did not monitor CRM performance and they could not identify the satisfaction with the system. Maximum utilization of CRM was reached in large enterprises. More than 70 % of them dealt with the stated problem. Their level was individualized and segmented maximally. As the information tools, they used the programs for contacts administration and time management. Under the term CRM, they understood the information system or customers address book with the contacts. Trouble free running of business processes and more individual contacts with customers were considered the greatest contribution. Setting the strategy during the implementation was considered the greatest problem. They gained the feedback concerning the fruitfulness of system functioning with the help of the financial indexes. Majority of them also could not consider the satisfaction with the overall functioning of CRM. [5] 7. CONCLUSION
Modern trends in the field of customer relationship management bring new ways how to use better the tools to reach high system productivity and improvement of enterprise financial performance. [13] In constantly changing market environment, enterprises have to use modern methods, techniques and ideas of management. At the same time, they need to learn how to implement these to the practice. [14] Implementation of CRM in enterprises should bring positive effect mainly by increasing the number of loyal customers, optimizing cost of sales activity and so increasing the competitive advantage. Increase in value of customers should reflect on the increase of overall profitability of enterprises. Regular evaluation of customer relationships undoubtedly contributes to successful CRM functioning. Following the research results, it is possible to say that the enterprises in Slovakia showed greatest deficiencies in monitoring of their CRM performance. Majority of these enterprises focused on monitoring of financial indexes. On the one hand,
these indexes give the real view of achievements or failures in the past, but on the other hand they do not enable to predict the future. Moreover, majority of enterprises regardless of their size could not estimate the satisfaction with actual functioning of CRM strategy. Research further pointed out that 50 % of micro enterprises used electronic file using MS Office in spite of the fact that this system does not enable documents administration, analytic or statistic tools, or automation of reports. On the ground of the research results, two hypotheses were verified. Test confirmed the validity of the first hypothesis. Its assumption was the existence of relation between the usage of CRM and the size of enterprises. Young enterprises or more precisely the enterprises with smaller number of employees do not have as many customers as the enterprises with higher number of employees and the existing enterprises. Respondents from enterprises pointed out to the fact that CRM is usually mistaken and it is considered only a technical matter. Following the aforesaid, the second hypothesis was dismissed and it is assumed that there is no relation between the theoretical knowledge on the given problem and the size of enterprises in Slovakia. LITERATURE
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