• Bob Burley and his brother Buford ran the best restaurant in Dallas, Texas. Many out-of-towners would visit Dallas and go to Burley’s Biscuits, Beef, and Veggies for a good wholesome meal. One thing that Bob and Buford had going for them in a town as active as Dallas was that their restaurant was open 24/7. This was especially important for all the big game days. No matter what the professional sport was, thousands flocked to the city to watch their favorite team.

  Bob and Buford were living high on the hog, but they weren’t the type to take anything for granted. They knew they had the best food in the area and the service was second to none. However, in-between major sports events and other activities such as concerts, the restaurant wasn’t always filled to capacity. A full restaurant with people wanting and waiting to get in was what Bob and Buford desired.

  The Burley brothers discussed what to do at great length. There had to be some way to entice people out of their homes and into the restaurant every day of the week. Bob and Buford hoped that whenever a family decided to go out to eat the first place that would cross their mind was Burley’s Biscuits, Beef, and Veggies.

  Jose Sanchez was a close friend of the Burley brothers. Jose owned a marketing firm and one of Jose’s specialties was customer relationship management (CRM). One day, Jose heard the brothers talking about ways they could fill the restaurant. Jose interrupted and starting asking them about their CRM program. Bob and Buford told Jose they didn’t have one. They weren’t clear on what exactly a CRM program was. Jose explained that it simply meant building and maintaining profitable long-term customer relationships. Jose asked how many customers were return customers. Although they had a lot of people they saw over and over again in the restaurant, neither Bob nor Buford knew the specific number. Jose then stated the obvious—the Burley brothers had to develop and implement a CRM program if they wanted to achieve their dream of nonstop business.

Discussion Questions

1. We know from the case that Bob and Buford have customers from many different segments. They could segment them by sports, business people, regulars, breakfast, lunch, or dinner crowd. How should Jose explain to the Burleys the advantages of segmenting customers? What types of customer relationship management activities should they implement that would drive business to the restaurant? Explain how those CRM activities would help.

2. Bob is excited about implementing social CRM. Buford is against using social CRM. Who do you agree with and why?

3. As part of their CRM initiative, Buford wants to utilize the “Seven Rs Rule.” Can this truly be part of their CRM program or is it just a nice sounding “slogan”? Explain whether or not it can help as part of the CRM program.