INTRODUCTION
Customer Relationship Management (CRM) is a strategy that enables businesses to
build and maintain strong relationships with their customers through the use of
technology and data analysis. The aim of CRM is to provide a consistent and
personalized customer experience across all touchpoints, from marketing and sales
to customer service and support.
CRM involves collecting and analysing data on customer behaviour, preferences,
and interactions with the business. This data can be used to inform marketing and
sales strategies, personalize communication with customers, and tailor offerings and
promotions to individual customers. The following essay will only be limited to Race
formular and steps in the steps of the CRM planning process
QUESTION 1 Send a surprise online gift shop and florist is a sole director-
owned private company. Discuss, with the use of practical examples, how the
owner can practically apply the RACE formula to accomplish the task of
building relationships with investors (8 marks for practical application). [8]
Send a Surprise is an online gift shop and florist that caters to both corporate and
general consumers. To ensure continuity in this business, building relationships with
investors is crucial. This can be accomplished by following the RACE (Research,
Analysis, Communication, and Evaluation) formula.
Research
To build relationships with investors, the first step is research. The owner of Send a
Surprise needs to research what types of investors have put money into the
business and understand their needs and perspectives. The owner could attend
investment conferences, network with other investors, and follow online forums
within the industry. This research will enable the owner to know what types of
information they would like to have and how the company can meet their needs.
Analysis (and Action)
1
, Once the owner has the research data, the next step is to analyze it and determine
the best course of action. The owner needs to examine the needs and responses of
the investors and incorporate them into the company's communication strategy. The
owner can create an email list of investors and send them regular updates on the
company's progress, including financial reports and new product launches. Through
these reports, investors can see how their investments are being put to good use,
and their feedback can be incorporated and implemented in the business.
Communication
The third step in the RACE formula is communication. The owner needs to create
messages that are targeted towards the investors, as well as integrated with the
business activities. The owner needs to use media that reach the targeted investors
such as the internet and financial media. The owner can create an investor relations
tab on the website that provides reports on the company's performance and
projections. This transparency will assist in building trust with the investors and
encourage investment and reinvestment.
Evaluation
The last step in the RACE formula is evaluation. Evaluation is necessary to
determine whether a specific medium actually reaches the target audience and the
quality of communication with the market. Feedback from investors must be
considered, evaluated, and implemented correctly. The quality of the relationship
that existed at the time investors sold their shares must be evaluated. This is
important information for the business to know since the investors' needs at the time
would have determined when the shares were sold.
Practical Application
The owner of Send a Surprise can practically apply the RACE formula by attending
investor conferences in South Africa and networking with other investors. By doing
so, the owner can understand the investors' needs and perspectives and incorporate
them into the communication strategy, creating messages that meet the investors'
needs and integrating them with the company's activities. The owner can create an
2
Customer Relationship Management (CRM) is a strategy that enables businesses to
build and maintain strong relationships with their customers through the use of
technology and data analysis. The aim of CRM is to provide a consistent and
personalized customer experience across all touchpoints, from marketing and sales
to customer service and support.
CRM involves collecting and analysing data on customer behaviour, preferences,
and interactions with the business. This data can be used to inform marketing and
sales strategies, personalize communication with customers, and tailor offerings and
promotions to individual customers. The following essay will only be limited to Race
formular and steps in the steps of the CRM planning process
QUESTION 1 Send a surprise online gift shop and florist is a sole director-
owned private company. Discuss, with the use of practical examples, how the
owner can practically apply the RACE formula to accomplish the task of
building relationships with investors (8 marks for practical application). [8]
Send a Surprise is an online gift shop and florist that caters to both corporate and
general consumers. To ensure continuity in this business, building relationships with
investors is crucial. This can be accomplished by following the RACE (Research,
Analysis, Communication, and Evaluation) formula.
Research
To build relationships with investors, the first step is research. The owner of Send a
Surprise needs to research what types of investors have put money into the
business and understand their needs and perspectives. The owner could attend
investment conferences, network with other investors, and follow online forums
within the industry. This research will enable the owner to know what types of
information they would like to have and how the company can meet their needs.
Analysis (and Action)
1
, Once the owner has the research data, the next step is to analyze it and determine
the best course of action. The owner needs to examine the needs and responses of
the investors and incorporate them into the company's communication strategy. The
owner can create an email list of investors and send them regular updates on the
company's progress, including financial reports and new product launches. Through
these reports, investors can see how their investments are being put to good use,
and their feedback can be incorporated and implemented in the business.
Communication
The third step in the RACE formula is communication. The owner needs to create
messages that are targeted towards the investors, as well as integrated with the
business activities. The owner needs to use media that reach the targeted investors
such as the internet and financial media. The owner can create an investor relations
tab on the website that provides reports on the company's performance and
projections. This transparency will assist in building trust with the investors and
encourage investment and reinvestment.
Evaluation
The last step in the RACE formula is evaluation. Evaluation is necessary to
determine whether a specific medium actually reaches the target audience and the
quality of communication with the market. Feedback from investors must be
considered, evaluated, and implemented correctly. The quality of the relationship
that existed at the time investors sold their shares must be evaluated. This is
important information for the business to know since the investors' needs at the time
would have determined when the shares were sold.
Practical Application
The owner of Send a Surprise can practically apply the RACE formula by attending
investor conferences in South Africa and networking with other investors. By doing
so, the owner can understand the investors' needs and perspectives and incorporate
them into the communication strategy, creating messages that meet the investors'
needs and integrating them with the company's activities. The owner can create an
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