Question $6$

$25$ Marks

Study the scenario and complete the questions that follow:

Mike's Restaurant

Allison Mike and his brother Allen ran the best restaurant in Potchefstroom. Many out$-$of$-$towners would visit Potchefstroom and go to Mike's Biscuits, Beef, and Veggies for a good wholesome meal. One thing that Allison and Allen had going for them in a town as active as Potchefstroom was that their restaurant was open $\frac{24}{7}.$ 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 favourite team.

Allison and Allen 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 Allison and Allen desired.

The Mike 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. Allison and Allen hoped that whenever a family decided to go out to eat, the first place that would cross their mind was Mike's Biscuits, Beef, and Veggies.

Joel Johnson was a close friend of the Mike brothers. Joel owned a marketing firm and one of Joel's specialties was customer relationship management $($CRM$).$ One day, Joel heard the brothers talking about ways they could fill the restaurant. Joel interrupted and started asking them about their CRM program. Allison and Allen told Joel they didn't have one. They weren't clear on what exactly a CRM program was. Joel explained that it simply meant building and maintaining profitable long$-$term customer relationships. Joel asked how many customers were return customers. Although they had a lot of people they saw repeatedly in the restaurant, neither Allison nor Allen knew the specific number. Joel then stated the obvious$-$the Mike brothers had to develop and implement a CRM program if they wanted to achieve their dream of non$-$stop business.

Adjusted Source: Wisner et al$.2022.$ Principles of Supply Chain Management: A Balanced Approach. $6^{th}$ Ed$.$ Cengage.

$6\mathrm{.}1$ We know from the case that Allison and Allen have customers from many different segments. They could segment them by sports, business people, regulars, breakfast, lunch, or dinner crowd. Discuss how Joel should explain to the Mike brothers the benefits of segmenting customers by identifying customer relationship management activities.

$(10$ Marks$)$

$6\mathrm{.}2$ Allison is excited about implementing social CRM$.$ Allen is against using social CRM$.$ Share your opinion on this?

$(6$ Marks$)$

$6\mathrm{.}3$ As part of their CRM initiative, Allen 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 it can help as part of the CRM program.

$(9$ Marks$)$

End of Question $6$