Saturday, September 21, 2019

Customer Relationship Management of Lloyds Banking

Customer Relationship Management of Lloyds Banking 1.0 INTRODUCTION This chapter provides the brief introduction of research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the study. 1.1 TOPIC OF THE RESEARCH Customer Relationship Management of Lloyds Banking Group PLC; A Critical Evaluation 1.2 INTRODUCTION TO RESEARCH Peter Drucker said, â€Å"The purpose of a business is to create customers†. Customer Relationship Management can be the single strongest weapon we have as manage to ensure that customers become and remain loyal. Customer Relationship Management, or CRM, is an essential part of modern business management. CRM concerns the relation between the organisation and its customers. Customers are the lifeblood of any company be it a global corporation with thousands of employees and a multi-billion turnover, or a sole trader with a handful of regular customers. CRM is the same in principle for both examples. Globalization and technology improvements have pushed companies into hard competition. In this new era organisations are targeting on managing customer relationships, mainly customer satisfaction, in order to maximize revenues (Constantinos 2003). Today, marketing is not just developing, delivering and selling; it is shifting towards developing and maintaining equally long term relationships with customers (Buttle, 1996). This new business values is called relationship marketing (RM), which has involved significant interest both from marketing academics and practitioners (Gronroos, 1994). The Greek philosopher, Epictetus said that â€Å"what concern me is not the way things are, but rather the way people think things are† (Szwarch, 2005, p.3). The concepts of consumer satisfaction were depending on the thinking of consumer. Research suggests that customer satisfaction, basic concept of relationship marketing, is important in achieving and retaining competitive advantage. Research studies have discovered that retaining current customers is much less expensive than attracting new customers (Desatnick, 1988; Stone et al., 1996; Bitran and Mondschein, 1997; Chattopadhyay, 2001; Massey et al., 2001). The best way to retain customers is to keep them satisfied, a number of studies have shown that customer satisfaction can guide to brand loyalty, repurchases intention and repeat sales (Day, 1984; Swan and Oliver, 1989; Oliver, 1999). Customer retention, in turn, seems to be related to profitability (Oliver, 1999). Relationship marketing is becoming significant in financial services (Zineldin, 1995). If a bank develops and sustains a solid relationship with its customers, its competitors cannot easily replace them and so this relationship provides for a continued competitive advantage (Gilbert, 2003). Moriarty et al. (1983) has suggested relationship concept in the banking sector which states that banks can increase their profits by maximising the profitability of the total customer relationship over time, instead of looking for to get more profit from any single transaction. Perrien et al. (1992) observed severe competitive pressures that forces financial institution to restructure their marketing strategies by developing into long-term relationship with customers. And banking industry purely related to financial services, which needs to create the trust among the people. This research is exploratory in nature and design. The data which is collected is going to be mostly primary data collected from the relevant persons within the bank. The data has gathered from the face to face interviews with the help of structured and semi-structured questionnaire with those persons. The above describe interviews has last 40 (fourty) to 45 (fourty five) minutes (approx). On the other hand the researcher has decided to collect primary data from random interviews of Lloyds Banking Groups customers. Sample size is around 200 customers and of structured questionnaire. But of course this research paper has relied on reviewing the various secondary data available from various researches such as books, magazines, website, previous research and publication etc. The collected data has been analysed by graphs, table and pi chart drawn from Microsoft excel. 1.3 AIM OF THE RESEARCH The aim of the research is to study why CRM is important in bank, how the CRM works in banks and also the effectiveness of Lloyds Banking Group in obtaining long term customer relationship, customer loyalty, and customer satisfaction by the use of CRM. And also suggest feasible recommendations to Lloyds Banking Group to increase the customer satisfaction and market share by the effective use of CRM. 1.4 OBJECTIVES OF THE RESEARCH The followings are the objectives of this research; To study how critically practised in Lloyds Banking Group Analysis the data mining process of Lloyds Banking Group To find out how the bank segments their customers To analysis how the bank retaining their customers To find out how does the bank measure customer Life Time Value To verify the relationship between the customers and the Lloyds Banking Group 1.5 SCOPE OF THE STUDY The scope of the study and research work has limited to Lloyds Banking Group only. This chosen level of aspects has stayed at large in the study so that it can be studied well and analyzed thoroughly to get a deeper understanding. Trying to cover too much ground may lead to a very superficial and confused analysis and may involve long time duration to complete the project work or report. Therefore a specified and narrow down approach with Lloyds Banking Group and an evaluation of its success has comprised with the researc 2.0 LITERATURE REVIEW This chapter contains a review of literature relevant to the research. This literature review deals with, about CRM, the history and goals of an integrated banking CRM, the technological factor of CRM, the process cycle in banks, data warehouse technology, data mining process, how to analysis the data, customer segmentation process, communication strategies of bank to the customers etc. 2.1 CUSTOMER RELATIONSIP MANAGEMENT Existing research states that ‘relationships are the base to the successful development and edition of new business viewpoint, though business have taken care of relationships with their customers for many centuries (Gronroos, 1994). Sheth and Parvathiyar, (1995) said that relationships demand much more than mere transactions. Rather, they symbolize strategic and tactical issues based on a new philosophical move that geared in the direction of long-term organisation survival. According to Storbacka, (1994) relationship marketing got popular in 1990s but it has a long history under different names. In its starting, one-to-one marketing appeared in the mid 1990s, which transformed into Customer Relationship Management. Parvatiyar and Sheth gave a static definition of CRM. â€Å"Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer† (Parvatiyar and Sheth 2000, p.6) â€Å"What criteria determine who â€Å"How can we acquire this customer will be our most profitable in the most efficient and effective customers?† way?† â€Å"How can we increase the â€Å"How can we keep this customer loyalty and the profitability for as long as possible?† Of this customer?† 2.2 THE HISTORY AND GOALS OF AN INTEGRATED BANKING CRM According to Puccinelli (1999) the financial services industry as entering a new era where personal attention is decreasing because the institutions are using technology to replace human contact in many application areas. Sherif, 2002 advocated that, now global changes brought new trends, directions and new ways of doing business, which also brought new challenges and opportunities to financial institutions. In order to complete with newly increasing competitive pressures, financial institutions must recognize the need of balancing their performance by achieving their strategic goals and meeting continues volatile customer needs requirements. Different ways must be analyzed to meet customer needs. Foss said that banks are highly focusing on CRM for the last five years that is expected to continue. According to Peter (1998) and Chablo (1999) the main goals of an effective integrated CRM solution in the banking sector are to enable financial institutes to; a) Widen customer relationship through acquiring new customers, identifying and targeting new segments and expanding in new markets. b) Lengthen the existing relationship developing longer term relationships, increasing perceived value of products and introducing new products and c) Deepen the relationship with customers initiating the cross selling and up selling opportunities, understanding the propensity of different customer segments to purchase and increase sales. The implementation if CRM system in a bank helps the business organisation to obtain a complete picture of their existing customers, design both customer-oriented and market-driven financial products and services, as well as implement extensive and reliable financial marketing research and efficient campaigns, to achieve and enhance customer loyalty and profitability. The above goals can be achieved through the seamless integration of information technology solutions and business objectives at every process of the bank business that affects the customer. 2.3 THE PHASES OF CRM The main phases of CRM are as follows; 1. Customer selection or Segmentation According to Dave Chaffey (2009), customer selection defining the types of customers that a company will market to. It means identifying different groups of customers for which to develop offerings and to target during acquisition, retention and extension. Different ways of segmenting customers by value and by their detailed lifecycle with the customer are reviewed. Many companies are now only proactively marketing to favoured customers. Seth Godin (1999), says â€Å"Focus on share of customer, not market share fire 70 per cent customers and watch your profits go up!† According to Efraim Turban (2008), the most sophisticated segmentation and targeting schemes for extension of customers are often used by banks, which have full customer information and acquire history data as they search for to boost Customer Lifetime Value (CLV) through encouraging increased use of products overtime. The segmentation approach used by banks is based on five main basics which in result are covered on top of each other. The amount of options used, and therefore the complexity of approach, will depend on resources obtainable, opportunities, capabilities and technology afforded by catalog. i. Identify customer lifecycle groups When guests use online services then they basically pass those seven or more stages. The organisations have clear these segments and establish the CRM infrastructure to categories customers in this manner; then they deliver focused messages, whichever by modified web messaging or by e-mails that are triggered routinely because of various rules. First-time guests recognized by a cookie placed on their PC. When guests registered, they are tracked through the residual stages. The customers who have purchased one or more products are one particular important group. The key challenge is for a company to encourage a customer to shift from the first product to the second and then go on. Explicit offers can be try to push customer for further products. In the same way, when customers turn into an inactive then the customer required follow-up. ii. Identify customer profit characteristics This is a conventional segmentation which is based on the nature of customer. For Business 2 Business Companies it includes sex, age and geography. It includes volume of the organisation and the type of sector or application, the organisation operates in. iii. Identify behaviour in response and purchase As shown in 2.2 through analysis of data base when customer progress through the lifecycle, company is capable to build up a detail reaction and buy history which judges the details of frequency, recency, group of product buy and monetary value. This approach is known as ‘RFM (Recency, Frequency, Monetary value) analysis. iv. Identify multi-channel behaviour In spite of of the eagerness of the company for online channels, various customers are chosen for using online channels and others customers are chosen conventional channels. This is, to an extent, be indicated by RFM and response examination since customers with a preference for an online channel is more reactive and make more use online. Customer who likes online channels is focused mostly by online communications such as e-mail, but when customer like conventional channels is focused by conventional communications such as direct mail or phone. This is known as ‘right-channelling. v. Tone and style preference In a same way to channel liking, customers are respond in their own way to various types of message. Some customers like rational application, in that time a detailed e-mail may work best. On the other hand some customers are preferred an emotional appeal. Companies are test for this in customers or conclude it using profit description and response performance and then expand various inventive treatments consequently. 2. Customer acquisition Processes used to add new customer. According to Turban (2008), customer acquisition refers to marketing activities intended to form relationship with new customers while reducing acquisition cost and targeting high-value customers. Service value and selecting the right path for various customers are essential at this stage and during the lifecycle. The conventional manner to customer acquisition include a marketing manager developing a blend of mass marketing (billboards, magazine advertisements etc.) and direct marketing (mail, telephone, etc.) campaigns based on their knowledge of the particular customer base that was being focussed. Marketing campaign trying to pressure new customers to buy a particular type of diapers, the mass marketing ads might be determined in parenting magazines. The advertisements could also be positioned in more conventional publications whose readership demographics were alike to those of new parents. Customer acquisition is comparatively similar to mass marketing. A marketing manager selects the demographics that they are involved in and after that works with a data vendor to obtain lists of buyers who meet those features. The data vendors have large database holding millions of eventual customers that can be segment based on explicit demographic criteria. The idea of â€Å"similar demographics† has conventionally been an art rather than a science. Usually there are not hard-and-fast systems about whether two groups of buyers share the similar features. Most of the segmentation that took place in conventional direct marketing involves hunches on the division of the marketing professional. 3. Customer retention Dafe Chaffey 2009 said that customer retention refers to the marketing actions taken by a company to keep its current customers. Identifying applicable offerings based on their personal needs and complete position in the customer lifecycle (e.g. purchase value or number) is key. Customer retention strategy aims to keep a high percentage of valuable customers and a customer development strategy aims to boost the value of those retained customer to the organisation. Customer retention is based on customer loyalty. And customer loyalty is the point to which a customer will continue with a specific brand or vendor. Customer acquisition to retain and extend create long-term customer relationship. We need to calculate customer satisfaction, as satisfaction drives loyalty and loyalty drives profitability. This relationship is exposed below; The marketers aim is to push customers up the curve towards the affection zone. But the majority are not in that zone. Marketers must understand to achieve retention,why customers defers or are indifferent. 4. Customer extension This technique is encouraging customers to increase their involvement with a company. According to Turban 2008, customer extension is increasing the range of products that a customer buys from an organisation. Sometime it is referred ‘customer development. Increasing the lifetime value (CLV) of a customer is the main objective of customer extension by encouraging cross-sell. For example a customer of Egg credit card may be offered the loan or a deposit account. There are many of customer extension technique for CRM as follows; Re-sell: same type of products to existing customers-particular vital in some Business 2 Business background as re-buys or modified re-buys. Cross-sell: sell extra products which may be closely related to the original buy. Up-sell: this is mean, selling more expensive products. Reactivation: Customers who have purchased for some time or have lapsed can be encouraged to buy again. Referrals: generating sells from recommendation from existing customers. 2.4 CUSTOMER LIFETIME VALUE MODELLING Customer Lifetime Value (CLV) is also an important theory and practise of CRM. But the calculation of CLV is not straightforward. There are so many company, they do not calculate it. According to Dave Chaffey (2009) â€Å"Lifetime value is the total net benefits that a customer or group of customers will provide a company over their total relationship with the company†. CLV is based on estimating the income and costs related with each customer over a phase of time and then calculating the net present value in present monetary terms using a discount rate value applied over the stage. Efraim Turban (2006) said there is various scale of complexity in calculating LTC. Those are exposed in 2.6. Option 1 is a realistic way or estimated proxy for future LTV, but the true LTV is the future value of the customer at individual level. CLV modelling at a segment level 4 is crucial within marketing since it answers the question; How much can I afford to invest in acquiring a new customer? Lifetime value analysis helps marketers to: Create the true value of a companys customer base Recognize and compare crucial target segment Calculate the effectiveness of another customer retention strategy Plan and calculate investment in customer acquisition programmes Make decisions about product and offers 2.7 gives an example of how LTV can be used to develop a CRM strategy for different customer groups. There are 4 (four) main types of customers are indicated by their present and future value as bronze, silver, gold and platinum. Separate customers groupings (circles) are recognized according to their current value (as indicated by current profitability) and future value as indicated by CLV calculation. Every group will have a customer segmentation based on their demographics. Therefore this is used for customer selection. Within the four main value groupings, there are various strategies are developed for various customer groups. Few bronze customers such as group A and B practically do not have development potential and are usually unprofitable, therefore the objective is to reduce costs in communications and if they do not stay as customers this is acceptable. Some bronze customers like group C may have potential for growth; therefore for group C the strategy is to extend their purchases. Silver customers are focused with customer extension offer and gold customers are extended. Platinum customers are the best customers; therefore the communication is very important with these customers. 2.5 THE TECHNOLOGICAL FACTORS OF CRM According to Davenport and Short, (1990); Porter, (1987) ‘information technology is an enabler to thoroughly redesign business process to achieve improvements in organisational performance. ‘Information Technology help helps a business process by facilitating changes to job practices and establishing new techniques to link a customer with organisations, suppliers and stakeholders (Hammer and Champy, 1993). Eckerson and Watson (2000) advocated that ‘CRM take full advantage of technology to collect and analyze data on customer patters, expand predictive models, interpret customer behaviour, proper respond with communications, and deliver product and service to individual customers. By using technology a company can create a 360 degree view of customers to find out from past interactions to optimize future ones. Peppard (2000) said that ‘the leading factors in CRM development is improvement in network infrastructure, client/server computing, and business intelligence applications. CRM collect, store, maintain and distribute customer knowledge all over the organisation. The effectual management of information has a vital role to play in CRM. In the case of calculating customer lifetime value, consolidated view, product tailoring and service innovation, the information is essential. Along with data warehouses, enterprise resource planning (ERP) system and the internet are the central infrastructures to CRM applications. Fickel (1999) said ‘CRM applications link front office (e.g. marketing, sales and customer service) and back office (e.g. financial, logistics, operations and human resources) functions with the companys customer touch point. A companys touch point is â€Å"all of the communication, human and physical interactions your customers experience during their relationship lifecycle with your organisation. Whether an ad, Web site, sales person, store or office, touch points are important because customers from perceptions of your organisation and brand based on their cumulative experiences† (Source; http://www.imediaconnection.com/content/4508.imc at 16/10/2009 on 15:25) According to Eckerson and Watson (2000), ‘CRM integrated touch points is something like a common view of the customer. A separate information systems controlled these touch points. 2.8 demonstrates the relationship between customer touch point with back and front office operations Peppers and Rogres, (1999) said ‘In many companies, CRM is just a technology solution that extends divide databases and sales force automation tools to link sales and marketing functions in order to develop targeting efforts. On the other hand some organisations consider CRM as a tool that is exclusively designed for one-to-one relationship. According to Goldenberg (2000) ‘CRM is not just a technology applications for sales, marketing and service, but when CRM fully and successfully implemented, customer-driven, a cross-functional, technology-integrated business process management strategy that improves relationships and encompasses the whole organisation. 2.6 DATA WAREHOUSE TECHNOLOGY According to Watson (2000) ‘data warehouse is a tools of information technology management that helps business decision makers to instant access of information of customer data throughout the organisation by combining all database and operational systems like sales and transaction, human resource, inventory, purchasing, financial and marketing system. Data warehouse pull out, clean, convert and manage large volumes of data from various systems and creating a historical record of all customer. Data warehousing technology is the most crucial part of CRM because it makes CRM possible. Shepard et al. (1998) said ‘a better understanding of customer behaviour is possible because data warehousing technology consolidates correlates and convert customer data into customer intelligence. Understanding of customers and their purchase patterns can improve information related to customer service interactions, billing and account status, back orders, product returns, product shipment, and internal operating cost. The capacity of a data warehouse to store hundreds and thousands of gigabytes of data make an analysis feasible as well as immediate. Organisational benefits with a data warehouse are as follows; exact and faster access of information bad and duplicate data eliminate by quality data and filtering customer profiling and retention modelling it calculate total present value and estimate future value of every customer it gives detail report 2.7 DATA MINING TECHNOLOGY Peppers and Rogres, (1999) said that ‘the first analytical step of data mining is to describe the data. Data mining summarize its statistical attributes like standard deviations and means, visually review it by use of charts and graphs and distributes the value of the field in our data. But alone data description can not provide an action plan. We have to build a predictive model based on patterns determined from known results and after that we have to test the model on result outside the original sample. An ideal model should never be confused with reality, but it is useful guide to understanding our businesses. According to Eckerson and Watson (2000) ‘we can use data mining for both classification and regression problems. In first problem we can predict what type something will fall into. In second problems we are predicting a number like probability that a person will respond to an offer. In CRM process, data mining is often used to allocate a score to a particular customer. Data mining is also often using to recognize a set of characteristics, which is called profile. Data mining segments customers in to groups with similar behaviour like purchasing a particular product. 2.8 THE CRM PROCESS CYCLE IN BANKS Pound (2000) said that exploration and alteration process should be done by the banks on basis of customer information captured; this shows the full value of CRM initiatives. Banks set up a closed CRM cycle with the help of an integrated CRM solution, which composed of a set of continuous iterative process. It manages the whole customer related process for bank, analysing customer profile, customer data and life time value, which is helping to making marketing decision and optimizing the execution of marketing campaigns, customer service strategies and sales strategies across various channels during the bank. According to Professor Constantin Zopounidis (2002) CRM process cycle is based on a generic business view. It presents a continuous improvement of value between customers and banks across touch points. The main stages are as follows; Customer data collection Customer data analysis Marketing strategy and action programs Back-office Data External Data Touch-Point Data Pound 2000 said that ‘recent banking data sources are extremely heterogeneous. Geographic information is dispersed due to continual acquisitions, mergers and reorganizations. For example a bank might use web site, ATMs, e-mail, sales, call centres and marketing automation applications that must be integrated in a unified environment of CRM banking. An effective multi-channels customer interface will not be possible without a centrally integrated warehouse driving the entire CRM process cycle. This should be update real time. The historical data should be recorded by it, which is used to create propensity models and customer life time value models to recognize past behaviour and action in order to take future marketing strategy. 2.9 CUSTOMER DATA COLLECTION Kristin Anderson Carol Kerr (2002), said that in banking transaction system data such as (e.g. Checking, Credit, Savings) are frequently organised around accounts, channels, products and other alike transactional concepts. This limits the bank ability on identifying the total relationship and unique customers. An Integrated CRM is a major goal it consolidates these â€Å"information islands† and separate solution, which forms an open cross-bank system from all executives, business area department officers and branch employees, shares the identical customer information. Integrated banking CRM structure can be obtained from this necessary basis of data supply. Operation (contact) sources: Chou, Chou 2000, said the customer communication touch-point (ATM, Branch, Call-Centre, Internet-Banking, Mobile banking, personal contact, etc.) Internal sources: Professor Constantion Zopounidis (2000) said internal sources that are the available information island, data bases and product oriented systems from other banks such as (Cards, Deposits, Investments, and loans etc.), Marketing campaign response, meta-data analysis and reliable data mining results. External Sources: Professor Constanin Zopounidis 2002, said marketing researches that of external sources, infomediaries etc. Providing geo-demographic, psycho-graphic data and lifestyle, these can help to improve customer images 2.11 CUSTOMER DATA ANALYSIS Heygate (1998), said Simple and sophisticated data analysis techniques are required for deriving the valuable customer insight from the data collected in a central customer warehouse. More advance data analytics includes OLAP (Online Analytical Processing) mining techniques and tools, these extracts applicable patterns or trends in the data. According to Lawer (2000), key incorporated customer management insights provided by customer data analysis are customer segmentation/differentiation, concentration and distribution of customers value; share of purchases/profits, analysis of strategies that widen/lengthen/deepen customer relationship. Hawkes 2000, advocated customer data analysis enables the recognition of customers profit and customers preferences for definite bank product and services, indicates the most suitable channels to reach the customers, and assesses the profitability and life time value of every personality. Additionally, Delto 1998 said that the future manners of the consumers can be predicted by analysing their past behaviour. Customer statistics, profit and segmentation are the main amount produced of the analysis stage feeding the marketing strategy planning and completing process. Having easily accessible information to marketing makes the difference between a winning campaign and a failure. 2.12 MARKETING STRATEGY AND PROGRAMES Kristin Anderson and Carol Kerr 2002 advocated captured results and data of customer analysis support marketers to route marketing messages, processes and strategies. True values of data of Lloyd TSB are discovered by tools and process for marketing decision making, marketing decision making and CRM initiatives and campaign are deployed from converted information to customer knowledge. Goal of marketing automation within CRM are which personalise and optimizes each customer contact from planning, execution, monitoring marketing strategies and action programmes. Bryan Foss 2003 said it is critical for bank CRM not only to extract their data source to uncover patterns and insight but also to operationalise the system through the bank performance to turn the customer knowledge into importance creating achievement. Merlin Stone 2003 advocated the grades from advertising and CRM activities and strategies continue the process knowledge acquisition enhancing the on-going assessment of marketing data intelligence, closing the feed-back loop. Hence, the final element of CRM process cycle is the valuation of the results of campaign driven by marketing data intelligence. It is crucial to measure performance and feed result back into the centre customer data warehouse, in order to convey Customer Relationship Management of Lloyds Banking Customer Relationship Management of Lloyds Banking 1.0 INTRODUCTION This chapter provides the brief introduction of research. Furthermore, it also discusses the aims, objectives of the research questions and scope of the study. 1.1 TOPIC OF THE RESEARCH Customer Relationship Management of Lloyds Banking Group PLC; A Critical Evaluation 1.2 INTRODUCTION TO RESEARCH Peter Drucker said, â€Å"The purpose of a business is to create customers†. Customer Relationship Management can be the single strongest weapon we have as manage to ensure that customers become and remain loyal. Customer Relationship Management, or CRM, is an essential part of modern business management. CRM concerns the relation between the organisation and its customers. Customers are the lifeblood of any company be it a global corporation with thousands of employees and a multi-billion turnover, or a sole trader with a handful of regular customers. CRM is the same in principle for both examples. Globalization and technology improvements have pushed companies into hard competition. In this new era organisations are targeting on managing customer relationships, mainly customer satisfaction, in order to maximize revenues (Constantinos 2003). Today, marketing is not just developing, delivering and selling; it is shifting towards developing and maintaining equally long term relationships with customers (Buttle, 1996). This new business values is called relationship marketing (RM), which has involved significant interest both from marketing academics and practitioners (Gronroos, 1994). The Greek philosopher, Epictetus said that â€Å"what concern me is not the way things are, but rather the way people think things are† (Szwarch, 2005, p.3). The concepts of consumer satisfaction were depending on the thinking of consumer. Research suggests that customer satisfaction, basic concept of relationship marketing, is important in achieving and retaining competitive advantage. Research studies have discovered that retaining current customers is much less expensive than attracting new customers (Desatnick, 1988; Stone et al., 1996; Bitran and Mondschein, 1997; Chattopadhyay, 2001; Massey et al., 2001). The best way to retain customers is to keep them satisfied, a number of studies have shown that customer satisfaction can guide to brand loyalty, repurchases intention and repeat sales (Day, 1984; Swan and Oliver, 1989; Oliver, 1999). Customer retention, in turn, seems to be related to profitability (Oliver, 1999). Relationship marketing is becoming significant in financial services (Zineldin, 1995). If a bank develops and sustains a solid relationship with its customers, its competitors cannot easily replace them and so this relationship provides for a continued competitive advantage (Gilbert, 2003). Moriarty et al. (1983) has suggested relationship concept in the banking sector which states that banks can increase their profits by maximising the profitability of the total customer relationship over time, instead of looking for to get more profit from any single transaction. Perrien et al. (1992) observed severe competitive pressures that forces financial institution to restructure their marketing strategies by developing into long-term relationship with customers. And banking industry purely related to financial services, which needs to create the trust among the people. This research is exploratory in nature and design. The data which is collected is going to be mostly primary data collected from the relevant persons within the bank. The data has gathered from the face to face interviews with the help of structured and semi-structured questionnaire with those persons. The above describe interviews has last 40 (fourty) to 45 (fourty five) minutes (approx). On the other hand the researcher has decided to collect primary data from random interviews of Lloyds Banking Groups customers. Sample size is around 200 customers and of structured questionnaire. But of course this research paper has relied on reviewing the various secondary data available from various researches such as books, magazines, website, previous research and publication etc. The collected data has been analysed by graphs, table and pi chart drawn from Microsoft excel. 1.3 AIM OF THE RESEARCH The aim of the research is to study why CRM is important in bank, how the CRM works in banks and also the effectiveness of Lloyds Banking Group in obtaining long term customer relationship, customer loyalty, and customer satisfaction by the use of CRM. And also suggest feasible recommendations to Lloyds Banking Group to increase the customer satisfaction and market share by the effective use of CRM. 1.4 OBJECTIVES OF THE RESEARCH The followings are the objectives of this research; To study how critically practised in Lloyds Banking Group Analysis the data mining process of Lloyds Banking Group To find out how the bank segments their customers To analysis how the bank retaining their customers To find out how does the bank measure customer Life Time Value To verify the relationship between the customers and the Lloyds Banking Group 1.5 SCOPE OF THE STUDY The scope of the study and research work has limited to Lloyds Banking Group only. This chosen level of aspects has stayed at large in the study so that it can be studied well and analyzed thoroughly to get a deeper understanding. Trying to cover too much ground may lead to a very superficial and confused analysis and may involve long time duration to complete the project work or report. Therefore a specified and narrow down approach with Lloyds Banking Group and an evaluation of its success has comprised with the researc 2.0 LITERATURE REVIEW This chapter contains a review of literature relevant to the research. This literature review deals with, about CRM, the history and goals of an integrated banking CRM, the technological factor of CRM, the process cycle in banks, data warehouse technology, data mining process, how to analysis the data, customer segmentation process, communication strategies of bank to the customers etc. 2.1 CUSTOMER RELATIONSIP MANAGEMENT Existing research states that ‘relationships are the base to the successful development and edition of new business viewpoint, though business have taken care of relationships with their customers for many centuries (Gronroos, 1994). Sheth and Parvathiyar, (1995) said that relationships demand much more than mere transactions. Rather, they symbolize strategic and tactical issues based on a new philosophical move that geared in the direction of long-term organisation survival. According to Storbacka, (1994) relationship marketing got popular in 1990s but it has a long history under different names. In its starting, one-to-one marketing appeared in the mid 1990s, which transformed into Customer Relationship Management. Parvatiyar and Sheth gave a static definition of CRM. â€Å"Customer Relationship Management is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer† (Parvatiyar and Sheth 2000, p.6) â€Å"What criteria determine who â€Å"How can we acquire this customer will be our most profitable in the most efficient and effective customers?† way?† â€Å"How can we increase the â€Å"How can we keep this customer loyalty and the profitability for as long as possible?† Of this customer?† 2.2 THE HISTORY AND GOALS OF AN INTEGRATED BANKING CRM According to Puccinelli (1999) the financial services industry as entering a new era where personal attention is decreasing because the institutions are using technology to replace human contact in many application areas. Sherif, 2002 advocated that, now global changes brought new trends, directions and new ways of doing business, which also brought new challenges and opportunities to financial institutions. In order to complete with newly increasing competitive pressures, financial institutions must recognize the need of balancing their performance by achieving their strategic goals and meeting continues volatile customer needs requirements. Different ways must be analyzed to meet customer needs. Foss said that banks are highly focusing on CRM for the last five years that is expected to continue. According to Peter (1998) and Chablo (1999) the main goals of an effective integrated CRM solution in the banking sector are to enable financial institutes to; a) Widen customer relationship through acquiring new customers, identifying and targeting new segments and expanding in new markets. b) Lengthen the existing relationship developing longer term relationships, increasing perceived value of products and introducing new products and c) Deepen the relationship with customers initiating the cross selling and up selling opportunities, understanding the propensity of different customer segments to purchase and increase sales. The implementation if CRM system in a bank helps the business organisation to obtain a complete picture of their existing customers, design both customer-oriented and market-driven financial products and services, as well as implement extensive and reliable financial marketing research and efficient campaigns, to achieve and enhance customer loyalty and profitability. The above goals can be achieved through the seamless integration of information technology solutions and business objectives at every process of the bank business that affects the customer. 2.3 THE PHASES OF CRM The main phases of CRM are as follows; 1. Customer selection or Segmentation According to Dave Chaffey (2009), customer selection defining the types of customers that a company will market to. It means identifying different groups of customers for which to develop offerings and to target during acquisition, retention and extension. Different ways of segmenting customers by value and by their detailed lifecycle with the customer are reviewed. Many companies are now only proactively marketing to favoured customers. Seth Godin (1999), says â€Å"Focus on share of customer, not market share fire 70 per cent customers and watch your profits go up!† According to Efraim Turban (2008), the most sophisticated segmentation and targeting schemes for extension of customers are often used by banks, which have full customer information and acquire history data as they search for to boost Customer Lifetime Value (CLV) through encouraging increased use of products overtime. The segmentation approach used by banks is based on five main basics which in result are covered on top of each other. The amount of options used, and therefore the complexity of approach, will depend on resources obtainable, opportunities, capabilities and technology afforded by catalog. i. Identify customer lifecycle groups When guests use online services then they basically pass those seven or more stages. The organisations have clear these segments and establish the CRM infrastructure to categories customers in this manner; then they deliver focused messages, whichever by modified web messaging or by e-mails that are triggered routinely because of various rules. First-time guests recognized by a cookie placed on their PC. When guests registered, they are tracked through the residual stages. The customers who have purchased one or more products are one particular important group. The key challenge is for a company to encourage a customer to shift from the first product to the second and then go on. Explicit offers can be try to push customer for further products. In the same way, when customers turn into an inactive then the customer required follow-up. ii. Identify customer profit characteristics This is a conventional segmentation which is based on the nature of customer. For Business 2 Business Companies it includes sex, age and geography. It includes volume of the organisation and the type of sector or application, the organisation operates in. iii. Identify behaviour in response and purchase As shown in 2.2 through analysis of data base when customer progress through the lifecycle, company is capable to build up a detail reaction and buy history which judges the details of frequency, recency, group of product buy and monetary value. This approach is known as ‘RFM (Recency, Frequency, Monetary value) analysis. iv. Identify multi-channel behaviour In spite of of the eagerness of the company for online channels, various customers are chosen for using online channels and others customers are chosen conventional channels. This is, to an extent, be indicated by RFM and response examination since customers with a preference for an online channel is more reactive and make more use online. Customer who likes online channels is focused mostly by online communications such as e-mail, but when customer like conventional channels is focused by conventional communications such as direct mail or phone. This is known as ‘right-channelling. v. Tone and style preference In a same way to channel liking, customers are respond in their own way to various types of message. Some customers like rational application, in that time a detailed e-mail may work best. On the other hand some customers are preferred an emotional appeal. Companies are test for this in customers or conclude it using profit description and response performance and then expand various inventive treatments consequently. 2. Customer acquisition Processes used to add new customer. According to Turban (2008), customer acquisition refers to marketing activities intended to form relationship with new customers while reducing acquisition cost and targeting high-value customers. Service value and selecting the right path for various customers are essential at this stage and during the lifecycle. The conventional manner to customer acquisition include a marketing manager developing a blend of mass marketing (billboards, magazine advertisements etc.) and direct marketing (mail, telephone, etc.) campaigns based on their knowledge of the particular customer base that was being focussed. Marketing campaign trying to pressure new customers to buy a particular type of diapers, the mass marketing ads might be determined in parenting magazines. The advertisements could also be positioned in more conventional publications whose readership demographics were alike to those of new parents. Customer acquisition is comparatively similar to mass marketing. A marketing manager selects the demographics that they are involved in and after that works with a data vendor to obtain lists of buyers who meet those features. The data vendors have large database holding millions of eventual customers that can be segment based on explicit demographic criteria. The idea of â€Å"similar demographics† has conventionally been an art rather than a science. Usually there are not hard-and-fast systems about whether two groups of buyers share the similar features. Most of the segmentation that took place in conventional direct marketing involves hunches on the division of the marketing professional. 3. Customer retention Dafe Chaffey 2009 said that customer retention refers to the marketing actions taken by a company to keep its current customers. Identifying applicable offerings based on their personal needs and complete position in the customer lifecycle (e.g. purchase value or number) is key. Customer retention strategy aims to keep a high percentage of valuable customers and a customer development strategy aims to boost the value of those retained customer to the organisation. Customer retention is based on customer loyalty. And customer loyalty is the point to which a customer will continue with a specific brand or vendor. Customer acquisition to retain and extend create long-term customer relationship. We need to calculate customer satisfaction, as satisfaction drives loyalty and loyalty drives profitability. This relationship is exposed below; The marketers aim is to push customers up the curve towards the affection zone. But the majority are not in that zone. Marketers must understand to achieve retention,why customers defers or are indifferent. 4. Customer extension This technique is encouraging customers to increase their involvement with a company. According to Turban 2008, customer extension is increasing the range of products that a customer buys from an organisation. Sometime it is referred ‘customer development. Increasing the lifetime value (CLV) of a customer is the main objective of customer extension by encouraging cross-sell. For example a customer of Egg credit card may be offered the loan or a deposit account. There are many of customer extension technique for CRM as follows; Re-sell: same type of products to existing customers-particular vital in some Business 2 Business background as re-buys or modified re-buys. Cross-sell: sell extra products which may be closely related to the original buy. Up-sell: this is mean, selling more expensive products. Reactivation: Customers who have purchased for some time or have lapsed can be encouraged to buy again. Referrals: generating sells from recommendation from existing customers. 2.4 CUSTOMER LIFETIME VALUE MODELLING Customer Lifetime Value (CLV) is also an important theory and practise of CRM. But the calculation of CLV is not straightforward. There are so many company, they do not calculate it. According to Dave Chaffey (2009) â€Å"Lifetime value is the total net benefits that a customer or group of customers will provide a company over their total relationship with the company†. CLV is based on estimating the income and costs related with each customer over a phase of time and then calculating the net present value in present monetary terms using a discount rate value applied over the stage. Efraim Turban (2006) said there is various scale of complexity in calculating LTC. Those are exposed in 2.6. Option 1 is a realistic way or estimated proxy for future LTV, but the true LTV is the future value of the customer at individual level. CLV modelling at a segment level 4 is crucial within marketing since it answers the question; How much can I afford to invest in acquiring a new customer? Lifetime value analysis helps marketers to: Create the true value of a companys customer base Recognize and compare crucial target segment Calculate the effectiveness of another customer retention strategy Plan and calculate investment in customer acquisition programmes Make decisions about product and offers 2.7 gives an example of how LTV can be used to develop a CRM strategy for different customer groups. There are 4 (four) main types of customers are indicated by their present and future value as bronze, silver, gold and platinum. Separate customers groupings (circles) are recognized according to their current value (as indicated by current profitability) and future value as indicated by CLV calculation. Every group will have a customer segmentation based on their demographics. Therefore this is used for customer selection. Within the four main value groupings, there are various strategies are developed for various customer groups. Few bronze customers such as group A and B practically do not have development potential and are usually unprofitable, therefore the objective is to reduce costs in communications and if they do not stay as customers this is acceptable. Some bronze customers like group C may have potential for growth; therefore for group C the strategy is to extend their purchases. Silver customers are focused with customer extension offer and gold customers are extended. Platinum customers are the best customers; therefore the communication is very important with these customers. 2.5 THE TECHNOLOGICAL FACTORS OF CRM According to Davenport and Short, (1990); Porter, (1987) ‘information technology is an enabler to thoroughly redesign business process to achieve improvements in organisational performance. ‘Information Technology help helps a business process by facilitating changes to job practices and establishing new techniques to link a customer with organisations, suppliers and stakeholders (Hammer and Champy, 1993). Eckerson and Watson (2000) advocated that ‘CRM take full advantage of technology to collect and analyze data on customer patters, expand predictive models, interpret customer behaviour, proper respond with communications, and deliver product and service to individual customers. By using technology a company can create a 360 degree view of customers to find out from past interactions to optimize future ones. Peppard (2000) said that ‘the leading factors in CRM development is improvement in network infrastructure, client/server computing, and business intelligence applications. CRM collect, store, maintain and distribute customer knowledge all over the organisation. The effectual management of information has a vital role to play in CRM. In the case of calculating customer lifetime value, consolidated view, product tailoring and service innovation, the information is essential. Along with data warehouses, enterprise resource planning (ERP) system and the internet are the central infrastructures to CRM applications. Fickel (1999) said ‘CRM applications link front office (e.g. marketing, sales and customer service) and back office (e.g. financial, logistics, operations and human resources) functions with the companys customer touch point. A companys touch point is â€Å"all of the communication, human and physical interactions your customers experience during their relationship lifecycle with your organisation. Whether an ad, Web site, sales person, store or office, touch points are important because customers from perceptions of your organisation and brand based on their cumulative experiences† (Source; http://www.imediaconnection.com/content/4508.imc at 16/10/2009 on 15:25) According to Eckerson and Watson (2000), ‘CRM integrated touch points is something like a common view of the customer. A separate information systems controlled these touch points. 2.8 demonstrates the relationship between customer touch point with back and front office operations Peppers and Rogres, (1999) said ‘In many companies, CRM is just a technology solution that extends divide databases and sales force automation tools to link sales and marketing functions in order to develop targeting efforts. On the other hand some organisations consider CRM as a tool that is exclusively designed for one-to-one relationship. According to Goldenberg (2000) ‘CRM is not just a technology applications for sales, marketing and service, but when CRM fully and successfully implemented, customer-driven, a cross-functional, technology-integrated business process management strategy that improves relationships and encompasses the whole organisation. 2.6 DATA WAREHOUSE TECHNOLOGY According to Watson (2000) ‘data warehouse is a tools of information technology management that helps business decision makers to instant access of information of customer data throughout the organisation by combining all database and operational systems like sales and transaction, human resource, inventory, purchasing, financial and marketing system. Data warehouse pull out, clean, convert and manage large volumes of data from various systems and creating a historical record of all customer. Data warehousing technology is the most crucial part of CRM because it makes CRM possible. Shepard et al. (1998) said ‘a better understanding of customer behaviour is possible because data warehousing technology consolidates correlates and convert customer data into customer intelligence. Understanding of customers and their purchase patterns can improve information related to customer service interactions, billing and account status, back orders, product returns, product shipment, and internal operating cost. The capacity of a data warehouse to store hundreds and thousands of gigabytes of data make an analysis feasible as well as immediate. Organisational benefits with a data warehouse are as follows; exact and faster access of information bad and duplicate data eliminate by quality data and filtering customer profiling and retention modelling it calculate total present value and estimate future value of every customer it gives detail report 2.7 DATA MINING TECHNOLOGY Peppers and Rogres, (1999) said that ‘the first analytical step of data mining is to describe the data. Data mining summarize its statistical attributes like standard deviations and means, visually review it by use of charts and graphs and distributes the value of the field in our data. But alone data description can not provide an action plan. We have to build a predictive model based on patterns determined from known results and after that we have to test the model on result outside the original sample. An ideal model should never be confused with reality, but it is useful guide to understanding our businesses. According to Eckerson and Watson (2000) ‘we can use data mining for both classification and regression problems. In first problem we can predict what type something will fall into. In second problems we are predicting a number like probability that a person will respond to an offer. In CRM process, data mining is often used to allocate a score to a particular customer. Data mining is also often using to recognize a set of characteristics, which is called profile. Data mining segments customers in to groups with similar behaviour like purchasing a particular product. 2.8 THE CRM PROCESS CYCLE IN BANKS Pound (2000) said that exploration and alteration process should be done by the banks on basis of customer information captured; this shows the full value of CRM initiatives. Banks set up a closed CRM cycle with the help of an integrated CRM solution, which composed of a set of continuous iterative process. It manages the whole customer related process for bank, analysing customer profile, customer data and life time value, which is helping to making marketing decision and optimizing the execution of marketing campaigns, customer service strategies and sales strategies across various channels during the bank. According to Professor Constantin Zopounidis (2002) CRM process cycle is based on a generic business view. It presents a continuous improvement of value between customers and banks across touch points. The main stages are as follows; Customer data collection Customer data analysis Marketing strategy and action programs Back-office Data External Data Touch-Point Data Pound 2000 said that ‘recent banking data sources are extremely heterogeneous. Geographic information is dispersed due to continual acquisitions, mergers and reorganizations. For example a bank might use web site, ATMs, e-mail, sales, call centres and marketing automation applications that must be integrated in a unified environment of CRM banking. An effective multi-channels customer interface will not be possible without a centrally integrated warehouse driving the entire CRM process cycle. This should be update real time. The historical data should be recorded by it, which is used to create propensity models and customer life time value models to recognize past behaviour and action in order to take future marketing strategy. 2.9 CUSTOMER DATA COLLECTION Kristin Anderson Carol Kerr (2002), said that in banking transaction system data such as (e.g. Checking, Credit, Savings) are frequently organised around accounts, channels, products and other alike transactional concepts. This limits the bank ability on identifying the total relationship and unique customers. An Integrated CRM is a major goal it consolidates these â€Å"information islands† and separate solution, which forms an open cross-bank system from all executives, business area department officers and branch employees, shares the identical customer information. Integrated banking CRM structure can be obtained from this necessary basis of data supply. Operation (contact) sources: Chou, Chou 2000, said the customer communication touch-point (ATM, Branch, Call-Centre, Internet-Banking, Mobile banking, personal contact, etc.) Internal sources: Professor Constantion Zopounidis (2000) said internal sources that are the available information island, data bases and product oriented systems from other banks such as (Cards, Deposits, Investments, and loans etc.), Marketing campaign response, meta-data analysis and reliable data mining results. External Sources: Professor Constanin Zopounidis 2002, said marketing researches that of external sources, infomediaries etc. Providing geo-demographic, psycho-graphic data and lifestyle, these can help to improve customer images 2.11 CUSTOMER DATA ANALYSIS Heygate (1998), said Simple and sophisticated data analysis techniques are required for deriving the valuable customer insight from the data collected in a central customer warehouse. More advance data analytics includes OLAP (Online Analytical Processing) mining techniques and tools, these extracts applicable patterns or trends in the data. According to Lawer (2000), key incorporated customer management insights provided by customer data analysis are customer segmentation/differentiation, concentration and distribution of customers value; share of purchases/profits, analysis of strategies that widen/lengthen/deepen customer relationship. Hawkes 2000, advocated customer data analysis enables the recognition of customers profit and customers preferences for definite bank product and services, indicates the most suitable channels to reach the customers, and assesses the profitability and life time value of every personality. Additionally, Delto 1998 said that the future manners of the consumers can be predicted by analysing their past behaviour. Customer statistics, profit and segmentation are the main amount produced of the analysis stage feeding the marketing strategy planning and completing process. Having easily accessible information to marketing makes the difference between a winning campaign and a failure. 2.12 MARKETING STRATEGY AND PROGRAMES Kristin Anderson and Carol Kerr 2002 advocated captured results and data of customer analysis support marketers to route marketing messages, processes and strategies. True values of data of Lloyd TSB are discovered by tools and process for marketing decision making, marketing decision making and CRM initiatives and campaign are deployed from converted information to customer knowledge. Goal of marketing automation within CRM are which personalise and optimizes each customer contact from planning, execution, monitoring marketing strategies and action programmes. Bryan Foss 2003 said it is critical for bank CRM not only to extract their data source to uncover patterns and insight but also to operationalise the system through the bank performance to turn the customer knowledge into importance creating achievement. Merlin Stone 2003 advocated the grades from advertising and CRM activities and strategies continue the process knowledge acquisition enhancing the on-going assessment of marketing data intelligence, closing the feed-back loop. Hence, the final element of CRM process cycle is the valuation of the results of campaign driven by marketing data intelligence. It is crucial to measure performance and feed result back into the centre customer data warehouse, in order to convey

Friday, September 20, 2019

The secret of Kentucky Fried Chicken (KFC) success

The secret of Kentucky Fried Chicken (KFC) success The secret of Kentucky Fried Chicken (KFC) success Kentucky Fried Chicken (KFC) is a very well known restaurant in the world. It is rated at number 60 as the world most well known brand by BusinessWeek (McDonalds at number 9 and Nescafe, 23). Its history spans almost 80 years when it started at Corbin (Kentucky-USA), in the 1930s. During this period the United States was under The Great Depression with almost 25% unemployment rate. The hard time was probably one of the biggest factor in forcing Harland Sanders (The Colonel) to start experimenting with various mix of spices and herbs, trying to get the best formula for his recipe. (If we still remember the Asian Economic Crash 1997-2002, one of the last remaining business that kept going during the recession was the food industry). By 1939, the recipe was already perfected and the Colonel had expanded his restaurant to accomodate 142 seats. This was a fairy large restaurant, the size is equivalent to several tennis courts. However there was one problem. The WAITING time! It took almost 30 minutes for the chicken to properly cooked. Turn the gas bigger and you risk of having the chicken cooked on the outside but still red with blood inside. Saved by the Pressure Cooker Thanks to technology, in 1939 pressure cooker was introduced. Pressure cooker allow liquid to boils at higher temperature. Water for example normally boils at 100 degree Celcius, but with a pressure cooker the sealed lid doesnt allow air or liquid to escape and enable water to boils higher at 125 celcius. This significantly shortened the time for cooking and as an added advantage, the nutrients (hence the taste) are retained making the food more delicious. Since the boiling point is much higher, this would also kill more germs and make the food last longer. It should be noted that The Colonel spotted the pressure cooking technique just weeks after it was introduced. This means he was always looking for ways to improve the taste and the time it takes to cook the famous kentucky fried chicken. Time means money Every minutes saved means less time waiting and more satisfaction to the customers. This would also encourage a first time buyer to become repeat customers. The Colonel is also a smart guy. He can read the writing on the wall. By early 1950s, he probably heard rumours that an Interstate Highway is going to be built BYPASSING his town. This could have a devastating effect on his business. He is now probably under serious dilemma. When the Interstate was finally opened in 1955, it caused a huge diversion of traffic away from his town. Owning a big percentage in a small town VS Owning a small percentage in a large country. Seeing an end to his business, the Colonel auctioned off his operations. Confident with the quality of his fried chicken, the Colonel started travelling from town to town franchising his recipe. He visited countless restaurants, promoting his recipe by cooking fried chickens for the owner and the workers. The first franchise was awarded to Pete Harman of Salt Lake City. A handshake agreement stipulates a payment of a nickel to the Colonel for each chicken sold. This is one of the real strength of the franchise system. It provides a stream of money albeit the sum is initially very small. Building a franchise network is like building a pipe for money to flow to you. In the beginning, the cost is huge because you have to set the infrastructure, digging the earth, linking pipes, bypassing obstacles etc. In the beginning the volume of water flow (money) in your pipe is also dismal. After a few years of hard work, the effort will start to bear fruits. A penny here, a penny there, ten pennies from this town, a hundred pennies from that city, a thousand pennies from this district, ten thousand pennies from that state and it happen EVERY DAY! Before long it started to make a huge impact on your income. The KFC secret recipe: Does it matter? It is an open secret that the KFC is made of a mix of 11 herbs spices. Using modern spectrometer, we can blast the Colonel spice with X-ray photoelectron or burn them with a specially designed gas and study the result. With a database of results made with similar technique using all spices herbs known to mankind, it would take just weeks before we could identified the exact names and percentage of those 11 spices. However, DOES IT MATTER Does it really matter to know the exact names and compositions of those spices? An average businessman would think the secret recipe is so valuable and willing to pay millions for a copy of it. A genius businessman would not pay even a penny!! It is the franchise system, not the spice recipe. Have you been to a night market (pasar malam) and tried the fried chickens sold by the hawkers? Have you ever been to a small restaurant or a foodstall and found out that the fried chicken was so crispy and delicious Then you were wondering why this small time businessman did not make a fortune out of his secret recipe! The next time you visited the restaurant again, did you notice that:- sometimes there was nobody to take orders sometimes it was closed without properly giving a notice in advance sometimes the table was in a mess and nobody to clean even after 5 minutes you were seated sometimes the sink was dirty and choke full with food residual. sometimes the fried chicken was overcooked, and at other times it was undercooked. sometimes the fried chicken was too hot and at other times it was not so spicy. What is the point? The secret recipe represent only a small percentage of the success of the KFC franchise. If I were to give a percent, it may not represent more than 20% of the total success. THE SUCCESS IS DUE TO THE FRANCHISE SYSTEM!! In a franchise system, everything is documented and there are strict rules for running the business. For example: The chicken must be cooked in a pressure cooker and left for 15 minutes The size of each of the chicken parts must at least 8 cm wide and weight 300 grams The chicken must be marinated overnight The age of the chicken when they were slaughtered must be between 60-70 days The minimum size of the restaurant must be 2460 feet The color of the logo, the chair and the table must be yellow and the floor is dark grey. The toilet must be cleaned every 3 hours. The sink must be cleaned every 30 minutes The windows must be cleaned every morning Food left unsold after 15 minutes must be discarded. The worker must wear company-shirt and trousers. No jeans, corduroy or leather. 5% of gross earning must be used for local advertisement 1% of gross earning must be used for national level advertisement 3% must be used for RD to develop new recipes local brand. The food must also be offered in discounted packages (e.g 2 chicken, 1 fries, 1 glass of pepsi) The food can be ordered seperately / ala carte but no discount applies. The restaurant must have air-condition. This long list of standard operating procedures is actually the key to the success of the franchise. The long list is actually an accumulated wisdom and know-how the franchise system have developed after a few decades of operation. Finally we found the holy grail!! THE SECRET RECIPE of KFC SUCCESS IS ACTUALLY THE WHOLE FRANCHISE SYSTEM!!

Thursday, September 19, 2019

Abstinence-Only vs. Comprehensive Sex Education Essay -- Sex Education

Since the HIV/AIDS epidemic began in the U.S. in the early 1980s the issue of sex education for American youth has had the attention of the nation. There are about 400,000 teen births every year in the U.S, with about 9 billion in associated public costs. STI contraction in general, as well as teen pregnancy, have put the subject even more so on the forefront of the nation’s leading issues. The approach and method for proper and effective sex education has been hotly debated. Some believe that teaching abstinence-only until marriage is the best method while others believe that a more comprehensive approach, which includes abstinence promotion as well as contraceptive information, is necessary. Abstinence-only program curriculums disregard medical ethics and scientific accuracy, and have been empirically proven to be ineffective; therefore, comprehensive sex education programs which are medically accurate, science-based and empirically proven should be the standard method of se x education for students/children in the U.S. The primary argument which most advocates for abstinence only education have is that sex before marriage is immoral, not appropriate and that abstinence is the only completely effective method of preventing teen pregnancy and STI contraction. These advocates also emphasize that condoms are not a sure-fire way of preventing pregnancy and STI contraction. Many of the proponents for abstinence-only education believe that educating youth with information concerning sex and contraception will embolden them to become to begin or increase sexual activity. Such advocates accredit the lowering of teenage pregnancy to abstinence only education (Collins, Alagira, and Summers 12-13). Some abstinence-only proponents also de... ...y Practitioner 84.6 (2011): 6. Academic OneFile. Web. 4 Apr. 2012. Sonfield, Adam. "Sex Education Remains Active Battleground." Contraceptive Technology Update 1 Mar. 2012. Academic OneFile. Web. 4 Apr. 2012. "Teen Pregnancy Prevention Focusing on Evidence: Ineffective Abstinence-Only Lessons Being Replaced with Science." The Nation's Health Apr. 2010: 1+. Academic OneFile. Web. 4 Apr. 2012. Thomas, . "Abstinence-Only Sex Education Statistics - Final Nail in the Coffin." Open Education: Free Education for All. N.p., 5 Jan 2009. Web. 4 Apr. 2012 "US Government Should Stop Funding Abstinence-Only Education: Virginity Pledge Ineffective." Reproductive Health Matters Nov. 2009: 223. Academic OneFile. Web. 4 Apr. 2012. "Washington Watch: Advocates Seek Support for 'Real' Sex Education." Contraceptive Technology Update 1 June 2009. Academic OneFile. Web. 4 Apr. 2012.

Wednesday, September 18, 2019

Essay --

In the world of animals, those at the top of a dominance hierarchy are more beneficial than low-ranking animals1. However, the costs associated with being at the top of a hierarchy remain controversial1. Different studies reported contradictory findings on whether dominant or subordinate animals experienced greater stress levels2-3. Furthermore, Sapolsky4-5 suggested that hierarchy stability could potentially influence the stress levels experienced by high-ranking olive baboons. Given the results from previous literatures, Gesquiere et al.1 created a research question asking how do male savannah baboons (Papio cynocephalus) respond to rank-related stress during stable and unstable hierarchy? They hypothesized that high-ranking males would exhibit higher levels of testosterone and glucocorticoid only when a hierarchy was unstable1. From this hypothesis, they predicted that during the month with unstable hierarchy, the high-ranking male savannah baboons would exhibit greater fecal testosterone (fT) and fecal glucocorticoid (fGC) levels than other males within the hierarchy; however, such phenomenon would not be observed during the month with a stable hierarchy1. To test this prediction, they conducted a long-term study on wild savannah baboons in Amboseli, Kenya1. Over a 9-year period, ecological, behavioral and physiological data including fT and fGC were collected monthly from 125 adult males1. General linear mixed models (GLMMs) were used to predict the de pendent variables, fT and fGC, based on predictor variables including individual rank, hierarchy stability, and an interaction between the two1. Gesquiere et al.1 defined a stable hierarchy as the month when the males with the highest 3 ranking were the same as those in the p... ...nction9. However, a parasitic load in an individual was not only associated the individual immune function but also with how likely it is exposed to the infectious agents9. Hence, parasitic load would not be an accurate indicator of individual immune function9. In contrast, leukocyte count, which was used in another study to investigate immune function, could serve as a better indicator than parasitic load10. In conclusion, going beyond the study conducted by Gesquiere et al., the proposed experiment is significant because it can provide more insights into whether or not suppressed immune function is another potential cost for being at the top of the dominance hierarchy. Also, using leukocyte count as an indicator of immune function instead of parasitic load, the proposed experiment can further elucidate the contradicting findings reported by different literatures. Essay -- In the world of animals, those at the top of a dominance hierarchy are more beneficial than low-ranking animals1. However, the costs associated with being at the top of a hierarchy remain controversial1. Different studies reported contradictory findings on whether dominant or subordinate animals experienced greater stress levels2-3. Furthermore, Sapolsky4-5 suggested that hierarchy stability could potentially influence the stress levels experienced by high-ranking olive baboons. Given the results from previous literatures, Gesquiere et al.1 created a research question asking how do male savannah baboons (Papio cynocephalus) respond to rank-related stress during stable and unstable hierarchy? They hypothesized that high-ranking males would exhibit higher levels of testosterone and glucocorticoid only when a hierarchy was unstable1. From this hypothesis, they predicted that during the month with unstable hierarchy, the high-ranking male savannah baboons would exhibit greater fecal testosterone (fT) and fecal glucocorticoid (fGC) levels than other males within the hierarchy; however, such phenomenon would not be observed during the month with a stable hierarchy1. To test this prediction, they conducted a long-term study on wild savannah baboons in Amboseli, Kenya1. Over a 9-year period, ecological, behavioral and physiological data including fT and fGC were collected monthly from 125 adult males1. General linear mixed models (GLMMs) were used to predict the de pendent variables, fT and fGC, based on predictor variables including individual rank, hierarchy stability, and an interaction between the two1. Gesquiere et al.1 defined a stable hierarchy as the month when the males with the highest 3 ranking were the same as those in the p... ...nction9. However, a parasitic load in an individual was not only associated the individual immune function but also with how likely it is exposed to the infectious agents9. Hence, parasitic load would not be an accurate indicator of individual immune function9. In contrast, leukocyte count, which was used in another study to investigate immune function, could serve as a better indicator than parasitic load10. In conclusion, going beyond the study conducted by Gesquiere et al., the proposed experiment is significant because it can provide more insights into whether or not suppressed immune function is another potential cost for being at the top of the dominance hierarchy. Also, using leukocyte count as an indicator of immune function instead of parasitic load, the proposed experiment can further elucidate the contradicting findings reported by different literatures.

Tuesday, September 17, 2019

Death of a Salesman (Bernard)

In ‘Death of a Salesman’ written by Arthur Miller, Bernard is shown as a tremendously memorable character. Throughout the play, his contradictions to Biff, poor judgments of him and his parent- like personality are well presented. By using the character, Miller tries to convey the moral messages and develops an attention grabbing plot First, Bernard’s contradictory character compared to Biff, makes him memorable. Bernard is literally everything that Biff is not. Biff is a high school football star while Bernard is just an ordinary and unpopular student.Biff is more likely to be immoral while Bernard truly worries and being realistic about him. For instance, Bernard says ‘Listen, Biff, I heard Mr. Birnbaum say that if you don’t start studyin’ math he’s gonna flunk you, and you won’t graduate. I heard him! ’ The quote shows Bernard is very aware of Biffs’ gloomy future and also somehow predicts substantially different futures of those two characters. The audiences may feel a sense of relief toward Bernard as he is the only one, who actually shows the real world and eventually becomes successful than any other characters in the play.By using the character Bernard, Miller tries to convey the message of success has got nothing to do with the glorious past. In fact, Biff fails to seek his own career and live a life that is totally opposing to Willy’s expectations. Furthermore, the fact that Bernard was one of the underdogs makes the character memorable. In the play, most of characters did not expect Bernard to be prosperous and used to mock him with his sophisticated outlooks. A good illustration of this is when Willy says ‘That’s just what I mean.Bernard can get the best marks in school, y’understand, but when he gets out in the business world, y’understand, you are going to be five times ahead of him. ’ It clearly shows Willy’s pessimistic opinions to Bernard’s future. The phrase ‘five times ahead’ also portrays Bernard is treated as a sort of failure which is the most unlikely word to describe his future career. Mockeries about Bernard continue with other characters. For example, as he tries to find Biff and teach him some math, Happy tauntingly says ‘Let’s box, Bernard! ’ He makes fun of Bernard by looking his overly academic attitude.Audiences feel a sense of sympathy toward Bernard due to harsh judgments on him. However as the play continues, they soon find out that Bernard is the only character who achieved triumph in the play. By using Bernard’s underrated pasts, Miller highlights the insignificance of judging and prejudice. Willy’s huge astonishments to sophisticated Bernard also supports Miller’s message. Lastly, Bernard’s realistic characteristics make him memorable. In the play, he is one of the few solid people. Unlikely to unstable Willy, Bernard app roach the world in a more realistic way.For example, he says ‘â€Å"Just because he printed University of Virginia on his sneakers doesn’t mean they’ve got to graduate him. Uncle Willy! The quote portrays Bernard’s sensible characteristics which attempts Biff to choose the right path. By mentioning ‘Uncle Willy! ’ Bernard also tries to change Willy’s ignorant attitude towards poor academic achievements of his son as well as his impracticable definition of success. His humble characteristics and giving some realistic advices to Willy also differentiate him from other characters. For instance, Bernard replies ‘How are you?Good to see you. ’ as Willy enters his office. It strongly contrasts with Howard ruthless treatments that Willy has received. The audiences probably feel impressed to Bernard’s warm and sensible personality. Those personalities technically make Bernard to perform a parental role instead of overly ide alistic Willy who just expects unrealistic dreams to happen. To conclude, Miller’s wide use of Bernard make the character very significant and memorable, Miller also use this character to convey his moral messages of success and judgments to audiences.

Monday, September 16, 2019

Bacteria

Bacteria ? small prokaryotic microorganisms that can be found everywhere ? can cause disease. This may seem like basic knowledge today, but it was not in the past. In the 19th century, the spread of disease was believed to be either inherited, due to lifestyle choices, or a result of environmental factors; water and air-borne infections were not generally accepted, which was, in reality, the cause of a significant amount of diseases during that time period. In addition, their treatments were largely based on the change of location to an area with cleaner air along with the removal of the disease through blood, vomit, and feces. (Marsh, 2016) These beliefs started to disappear when scientists and physicians such as Robert Koch began to undergo breakthroughs. Koch had a significant number of discoveries that helped create and develop what we now call bacteriology such as discovering the bacteria responsible for anthrax, tuberculosis, and cholera. (Nobel Media AB, 2014) In fact, he is even considered the father of bacteriology. Without the research conducted and discoveries made by Robert Koch, the field of bacteriology would not be nearly as advanced and evolved as it is today. Robert Koch, born on December 11, 1843 in Clausthal, Germany, showed great intelligence throughout his life, even during its first few years; he taught himself to read by the age of five through newspapers and showed interest in biology in high school, foreshadowing the significant contributions he would go on to make in the field. (Nobel Media AB, 2014) Koch attended the University of GÃ ¶ttingen to study medicine during which he was influenced by the view of his anatomy professor, Jacob Henle, that infectious diseases were caused by living parasitic organisms which was published in 1840. (Nobel Media AB, 2014) This led to him developing a strong interest in pathology and infectious diseases as a medical student. (Famous Scientists, n.d.) Following him receiving his M.D. in 1866, Koch went to Berlin to study chemistry under Virchow and then worked in the General Hospital at Hamburg in general practice. (Nobel Media AB, 2014) Later on, he settled in the Province of Posen where he passed the District Medical Officer's Examination. (Nobel Media AB, 2014) After serving as a field surgeon in the Franco-Prussian War in 1870, he served as the District Medical Officer in Wollstein from 1872 to 1880. (Nobel Media AB, 2014) As the District Medical Officer, he built a small laboratory that contained a microscope, a microtome, and a homemade incubator in which he began his study of algae and then pathogenic organisms. (Stevenson, 1998) The beliefs of the early 19th century, such as those mentioned previously, were all about to change. The germ theory was being developed by Louis Pasteur (Brought to Life, n.d.) who had shifted from studying fermentation to studying disease. (Ullmann, n.d.) However, the role of bacteria in contagious disease was uncertain, which is where Koch decided to begin his research. (Brought to Life, n.d.) Robert Koch made significant discoveries regarding the cause of three diseases that were prevalent at the time: anthrax, tuberculosis, and cholera. His study of anthrax began when he noticed many of the farm animals in the Wollstein district, where he worked, were being infected by anthrax. (Nobel Media AB, 2014) The bacteria Bacillus anthracis had already been discovered, but Koch scientifically proved it was the cause of anthrax. (Nobel Media AB, 2014) He did this by infecting mice with the bacteria and observing it had contracted anthrax and had even passed it to other mice (Brought to Life, n.d.) In addition, while studying anthrax, Koch discovered the anthrax life cycle by growing cultures on an ox eye. The life cycle showed how the bacteria can turn into spores that can survive harsh conditions and then redevelop into the disease-causing bacteria years later. (Stevenson, 1998) Along with the anthrax research, Koch discovered the tubercle bacillus responsible for causing tuberculosis, Mycobacterium tuberculosis, and the method for growing pure cultures of it. (Nobel Media AB, 2014) He did this by developing and altering his method of staining to find a more efficient way to view samples. (Stevenson, 1998) The last disease Koch studied was cholera, and he discovered the vibrio that causes the disease, Vibrio cholerae, in Egypt where he was sent to observe the outbreak of the disease. (Nobel Media AB, 2014) The discovery of these bacteria had an immense impact on the medical field. First, the discovery of the cause for anthrax, tuberculosis, and cholera led to the development of their vaccines, for had scientists not known for sure what caused those diseases, they would not have been able to develop the preventative measures. Also, Koch's work and research with anthrax produced the first definite piece of proof of the causal relationship between a specific microorganism and a specific disease, providing the basis of Koch's postulates. (Stevenson, 1998) He developed Koch's postulates which are four standards that must be met in order to determine the cause of an infectious disease ? another way he impacted the medical field. (Famous Scientists, n.d.) It was very useful because it was, and still is, a universal method for testing whether a specific bacterium causes a particular disease which also helped him discover the cause behind tuberculosis. (Hodkinson, 2015) It was for his work with tuberculosis that Robert Koch received a Nobel prize in 1905 in physiology or medicine. (Brought to Life, n.d.) This research conducted by Koch successfully provided proof for the germ theory, strengthening the understanding of disease. Without the work done by Koch to determine the bacteria that cause these diseases, many deadly diseases may have still been around decades after they should have been eradicated, for it was largely due to him that other scientists went on to figure out the causes of various other diseases.(Brought to Life, n.d.) While finding and determining the cause of these diseases, Robert Koch discovered more efficient methods for viewing bacteria. One of the methods is the process of heat fixing. In his paper published in 1877, Koch described his technique of preparing a thin layer of bacteria on a glass slide and fixing them by passing the slide over a flame, exposing it to gentle heat. (Stevenson, 1998) Moreover, Koch and his team developed methods of staining bacteria to improve its visibility under a microscope. (Brought to Life, n.d.) Along with that, he created a solid substance on which to grow bacteria. He reached the final product by first evaluating coagulated egg albumen, starch paste, and a clean slice of potato and then deciding on a broth solidified using gelatin or agar. (Nobel Media AB, 2014) These procedures greatly impacted bacteriology, providing scientists with more efficient ways to carefully study bacteria under a microscope and in the pure form. The processes of heat fixing and staining allowed Koch himself to discover the tubercle bacillus and have enabled scientists after that to make remarkable breakthroughs and discoveries. The creation of the solid medium using gelatin was an extraordinary achievement; it made it possible to isolate bacterial colonies. This was crucial during the research conducted, for pure cultures were necessary in order to isolate the bacteria and definitively carry out experiments. The development of all these procedures assisted Koch himself in his discoveries along with other scientists and physicians later on. Robert Koch, with the help of methods he developed including heat fixing, staining, and isolating colonies on a hard medium, successfully determined and proved the bacteria that cause anthrax, tuberculosis, and cholera. All the discoveries and achievements have had a great impact in medicine, especially in bacteriology which is what it is today due to the work of Robert Koch.

Sunday, September 15, 2019

Analysis of Literary Devices of Jane Eyre

Analysis of the Theme of Jane Eyre and its Literary Devices Jane Eyre is an outstanding and meaningful novel which was written by Charlotte Bronte who didn’t have a fascinating appearance, a perfect figure and a glorious family and who had the similar fate with the heroine of the novel. The essay is focused on the first chapter, life at Gateshead, in which it tells us the little Jane Eyre’s miserable and menial life at Gateshead and that her cousins and Mrs. Reed treat her badly. In this chapter, the author intends to show us Jane Eyre’s resistance toward their torture and scolds. In order to demonstrate the motif, the author uses some gothic characters and depicts evil images of persons who bully Jane Eyre. Firstly, many gothic elements are adopted in this chapter in order to set the fundamental tone and manifest what a cruel and miserable life little Jane Eyre leads. It uses many delicate and horrified words to depict the weather, the season and some other things concerning the environment. Not only does it makes us feel that it’s really bad weather, but also we can feel Jane’s emotions and feelings at that time, upset, hopeless and so on, which will incite her resistant power. Secondly, Bronte is an expert in depicting characters’ images. We can find many vivid figures in front of us via reading the chapter. Take Jane’s cousin, John, as an example. From the novel, we can see that John’s mother spoils and dotes on him and she satisfies his demands no matter how ridiculous they are. Because of those, he shapes a naughty, arrogant and capricious personality. Jane is a poor girl whose parents are dead, so she has to live with her aunt. John always teases and bullies her, for she is a fragile and obedient stranger in his eyes. And what is much worse is that his mother always gives a cold shoulder to little Jane. As time goes by, John’s maleficences become more and more violent. One day, little Jane can’t stand it and she resists. She says: â€Å" you are like a murderer, you are like a slave-driver, you are like the Roman emperors. † It uses metaphor and parallelism to depict a vivid figure of John in front us. Figures of speech made the image brighter and clearer. Third, the setting of the chapter is dark, miserable and depressive. At the beginning of the chapter, a cold, dark and rainy evening was presented in front of us, which give readers a depressive impression. The description sets the basic tone of the chapter and implicates the terrible environment in which little Jane live. In this chapter, the author intends to present Jane’s resistance to life to readers. Its dark, cold and miserable setting implicates Jane’s poor living condition and her fragile emotion, which hide the foreshadowing of her resistance. Also gothic elements employed in the chapter deepen the theme. And depictions of each character promote the development of the theme.