subway CRM Project

Subway CRM
Project

1.0 Executive Summary: Subway is a sandwich fast food restaurants which has 260 stores in New Zealand. Application of CRM can facilitate the management, CRM project including ICDC model, identify the touch points , Servqual level analysis, Gap Theory analysis, suggestions and recommendations. The CRM strategy properly executed, it will help Subway to better understand the customer and manage customers, improve the ability of its competition ability and development of the Subway. keyword：Subway、CRM、service、Servqual 2.0 IDIC model of Subway
Table 1. IDIC model of Subway
Shareholders
Fred Deluca
Employees
CEO Fred Deluca，more than 260 stores（NZ）
Government
New Zealand goverment, Auckland City Council etc
Action Goroups
Franchised outlet, Customers
Public
Local people, Passengers
Distributors and Retailers
Franchised outlet, Flagship store, Headquarters

Suppliers
Silver Fern Farms Limited–Fairton, Alliance Group Limite, Silver Fern Farms Limited–Finegan etc
Institutions
CEO , department manager, sales personel etc
Competitors
KFC, McDonald, Burger King etc
Consultants
Subway has its own panel
Media and Reviewers
Internet, Face book, TV, Newspaper etc
Analysts
No
Customers
People who likes Subway and does not cook by himself/herself, People who wants to buy or eat Subway.
Partners
Face book, Google, Yahoo etc
Financiers
ANZ, BNZ etc

3.0 Touch Points
With the emergence of new media, such as the Internet, greatly increased the Subway touch points of contact with customers. The main forms are:

(1).Network: including Subway service website, Facebook Subway platform, Wechat Subway platform, etc. Through this contact, Subway and its followers can interact and q&a, anytime and anywhere, convenient and quick, shorten the distance. For followers of Subway, and they can even find almost all of their attention will be connected to the Internet. Nutritional information such as product, suits own Subway menu, expert advice, etc.
(2).Advertising: including television advertising, wall advertising, leaflets, etc. This is a traditional and effective way of propaganda and a wide coverage of positive contact point, can timely to let customers know the latest news of Subway.
(3). Activities and public welfare: the Subway as their corporate positioning, from the outset nutrition Leaders (Leaders in nutrition from the beginning). They have been a champion of healthy eating and therefore made a lot of effort! Subway restaurants are independently owned and care who is proud of their community and active member independent operator franchise. Subway® franchisees and crew members from around the world also active in their local schools, sports and civic associations and are proud to “give back” to the people in the neighborhoods that are near and dear to them. Over the years, the Subway® restaurant family has shown it support for many worthy causes and humanitarian organizations such as the American Red Cross and AmeriCares disaster relief, Habitat, regional United Way campaigns, Little League baseball programs, seasonal blood donation drives and community food banks. [1]
Each year the Subway® brand supports charities and philanthropic organizations through corporate donations and sponsorships to encourage healthy, active lifestyles and help make the world a better place. This method not only help the people in need of help, also adds brand products to the Subway and goodwill degrees, have more social value than normal advertisement.
(4). Face-to-face customer service: this is the most important point of contact, this method can maximize closer to the customer, understand customer. For employees, the Subway has its own service concept and training skills, to close their relationships with customers and achieve the customer as the center. Subway all staff "three seconds smile" and "three minutes" service principles, let customers get the most considerate the fastest service. Three seconds service refers to the guest into the store three seconds, greeting guests smile all front desk staff. Customer order to complete production time no more than 3 minutes. All sandwich scene produced in front of you.
We know that it takes more than just good food to nourish a strong people and build a vibrant community. It starts with taking care of people, the heart and soul of the Subway® experience.

4.0 Servqual
Service quality is a complex topic, need to be defined from five aspects: reliability, responsiveness, assurance, empathy, and tangibility. The service quality evaluation was conducted in the process of service delivery. Customers satisfied with the quality of service can be defined as: the perception of accepting service compared with expectations of service. When perception beyond expectation, service is thought to have a special quality, customers will be satisfied; when the service does not meet expectations, is doomed to be unacceptable; when the expectation and perception is consistent, the quality is satisfactory .
The quality of service = perception of service quality- service quality expectations
> 0 is very satisfied
= 0 satisfaction
< 0 not satisfied
The following data can be obtained through investigation
Table 2. Subway service quality survey[2]
Factor
The fast food industry service quality questions
Score of feel
Score of expect
Score of Servqual
Average
Tangibles
Tangibility restaurant layout is good, clean and comfortable dining environment
7.9
7.5
0.4
0.4

Food flyer make beautiful, attractive
7.8
7.7
0.1

Food color, aroma and taste
7.0
6.7
0.3

Staff dress uniform, clean and tidy
6.8
6.0
0.8

Responsiveness
Can quickly provide customers with the service
7.9
5.0
2.0
0.7

Wait for the waiter will tell the customer have to wait long
7.0
7.0
0

Can properly handle the customer complaints and complaints in a timely manner
8.6
8.5
0.1

Reliability
Service system perfect, standardization of service process
8.8
7.3
1.5
1.2

In the process of service few mistakes
8.5
7.1
1.4

According to the promised to provide services
8.6
7.9
0.7

When customers encounter problems try my best to help customers solve problems
7.6
6.4
1.2

Assurance
Employees use civilization terminology, polite
7.8
6.9
0.9
0.45

Employees have affinity, trustworthy
8.4
8.0
0.4

Staff have appropriate knowledge and skills
6.0
6.0
0.0

The customer to provide comfort food and services
8.5
8.0
0.5

Empathy
Customers can easily reached restaurant
8.8
8.0
0.8
0.63

To meet the personalized needs of different customers
9.0
7.5
1.5

In the restaurant feel warm and happy
8.8
7.7
1.1

Customers can often enjoy some preferential activities
8.2
8.5
-0.3

Analysis: the data in the table can be learned that the customer for Subway service quality in reliability, responsiveness, assurance, empathy, and tangibility five aspects are very satisfied, particularly the most satisfactory reliability and responsiveness. Reliability is reliably and accurately fulfill service commitments. To show that the Subway service quality is very good, have a standard service process, and few mistakes. With the Subway "three seconds smile" and "service" three minutes is closely related to law.
Responsiveness refers to help customers and provide services quickly and efficiently. Although the Subway can be quickly with good service quality to provide customers with services, but in "waiting for the waiter will tell the customer need to wait for how long" and "properly handle customer complaints and complaints timely" performance is not outstanding, it needs to strengthen. In terms of Tangibles and Assurance, service quality is also high, high customer satisfaction. That Subway layout in the unified management, restaurant, food production and have good performance in staff training, service quality is very high in these areas. In respect of Empathy, the Subway customers said that they think "customers can often enjoy some preferential activities" is done bad. In fact, relative to other fast food companies, Subway really few most favorable activity or can let customers enjoy preferential activities. But the Subway in Empathy other aspects of the service quality is very high.

5.0 The Gap Theory .

5.1 The mission of Subway
Delight every customer so they want to tell their friends--with great value through fresh, is our way of letting you know we are committed to making a positive impact in all that we do. The Subway® system is committed to providing a variety of great tasting, healthier food choices while reducing our environmental footprint and creating a positive influence in the communities we serve around the world. This is a requirement of Subway has always been, Subway's mission is simple and clear tell us what it want to bring customers products and feelings, clear wording, and highlight the tradition of its green health products.

5.2 Need to strengthen the image
Corporate image refers to the people by the signs of the enterprise, and set up the overall impression of the enterprise, is the core of enterprise culture construction. Although the Subway has a clear mission, and has been sticking to its mission, the Subway has been developing smoothly, but Subway lacks a strong image, although the Subway has been claimed that they are going to give people more healthy diet. By contrast, found that most people associate to KFC, there will be a clear remember KFC sign, KFC, the old man face red and white alternate with, hamburgers, French fries, coke and unity of tables and chairs. When they think of Subway, can only think of Subway sign is green, white and yellow and white. But remember not too clear, sandwiches, unlimited refills, and only some people clearly know Subway restaurant is to provide a healthy diet. By Subway legend--Jared successful weight loss, in other countries outside the United States, such as New Zealand, his popularity is not high.
It is very bad for Subway, if you can't let more people know that their mission is a health food. Customers in multiple fast food to make a choice, not more with it. It is also bad for customers, customers don't have a clear image of an enterprise when they choose will be very difficult, and will be always in doubt.
Subway should strengthen the construction of its image in the advertisement, tell people there is green, healthy diet, not only tell people monopoly Subway sandwich! Subway should also spend more money on advertising, because compared with other fast food restaurants, Subway advertising is too little, so much so that many people know about it is not enough. Subway can also tell people on its paper napkins and food packaging it is healthy, not just printed on Subway. Subway should also have the image of a belongs to own healthy and lively, like Disney's Mickey Mouse, so that the image of thorough popular feeling, can better set up the enterprise image.

5.3 Segmentation of Subway
Subway from entrepreneurial start business only sandwiches, although it is a fast food restaurant, but the Subway to advocate a healthy diet. Because the Subway for their own simple clear positioning, belongs to the popular type of food, can make almost all the people to eat . And customers can DIY, choose oneself to like bread, ingredients and sauces, almost can satisfy everyone's taste, so its market segmentation of customers don't need to do too much.

5.4 Staff training and loyalty
Subway attach importance to the cultivation of the employees, they think that talent is the most precious assets of Subway . People are our greatest asset.We continually challenge each other to succeed through teamwork, against shared goals & benchmarks, and to be accountable for our actions. We require all employees throughout the Subway® system adhere to ethical principles and employment standards to ensure that all workers at our corporate headquarters, regional offices, are valued, treated fairly and with respect.
We value the cultural richness and breadth of ideas resulting from the diversity that is fostered in who we are and what we do. We are dedicated to building strong business relationships through open communication, respect and by with each other as well as by serving our customers and our neighborhoods; much like we do within our own families.
The Subway employee training fully, from its "three seconds smile" and "service" three minutes law can be embodied.They warm service and skilled work skills, often a very good impression to the customer, at the same time, it saves time, brings additional value for the enterprise .
Subway has the most branches as fast food brand, with perfect service personnel training system. Most Subway employees believe that their work environment such as in a family, is harmonious, loyalty to the enterprise is very high. Will from time to time and in different parts of the Subway store events, increase staff loyalty.

5.5 Products and services
Although the Subway has been selling sandwiches, but still attaches great importance to product upgrade and the change of the package, so as to adapt to the needs of different age and different countries customers . And in different regions according to different situation of promotional activities . In New Zealand, for example: the Subway in the current in the summer of New Zealand launched a new promotion -- chicken subs . [3]
Due to the New Zealand communication services more perfect, customers can also be online or on the phone to order a meal, but in some other communication services imperfect country, it may be not enough.
Although is a fast food restaurant, but the Subway and KFC, McDonald's and pizza hut from major competitors products have substaintial distinction, there is no the same products of the competition. As a Subway stores heavier, have always is famous for its first-class service and unified management, has the absolute competitive!

5.6 Price
As a popular global low-fat sandwiches, this price is OK. Subway does not need to rise the price, both in terms of cost, or from the point of sales, the price is just right. In fact, for the people, as long as good, price doesn't matter if they are a little bit expensive. Subway to grasp very well.

5.7 Channels
If you want to know, Subway, there will be many channels can help you. Such as: network, TV, newspaper, leaflets, billboards, radio and so on. Due to the development of communication technology, has been change in the number of users, nature is networks have TV is the best communication channel, is also the fastest know Subway channels. Of course, the Subway, you recommend your friends to compare its sandwich is very delicious.

5.8 Authentic taste and unlimited refilled
Subway can be in the fast food industry development, in addition to its first-class service, unified set up and manage, the most important of all is the pure taste, insist to use fresh food as possible, making major! This conforms to the demand for food has always been: a delicious, safe and healthy. Unlimited refill is a kind of American spirit, Subway brought this spirit to conquer all it. All the customers like this way, it can make them believe that they have more to choose in the Subway. Although they may only have a drink. But it's true that Subway gives them more choice, because you can drink coke and then drink a glass of Sprite. Although were probably drink a 700 ml beverage, in Subway, you can taste the different flavors of drinks, but this is impossible in KFC and McDonald's. Subway should continue to adhere to its authentic taste and the spirit of unlimited refilled, bring more delicious experience for customers, and free choice.

6.0 Suggestions and Recommendations

6.1 Suggestions

6.1.1 Customer relationships
Because you can choose your own ingredients make sandwiches, but numerous choice, many people hesitate when choice unconsciously. When this time, the service personnel should be timely recommend the best option for the customer, or guide customers to choose quickly, can increase the service personnel of communication with customers. Now smart phones, all kinds of communication software but also emerge in endlessly. Subway can choose on the software platform for propaganda and communication with customers, to update the product information and promotional activities, access to the customer's evaluation, a question even questionnaire, etc. This way is very popular with young people, can attract more young customers for Subway become the loyal customers.

6.1.2 Service delivery system
Subway, Subcard support cash and bank card payment, but few understand Subcard, also very few people use Subcard pays. Subway should intensify propaganda and use of Subcard told customers use Subcard special and they can bring convenience, as well as Subcard can discounts and benefits for them. This will increase the customer's brand sense of belonging, the Subway has a large number of long-term and stable customers. Although the customer can order online or mobile phone, but they can't use online or mobile payment, this is one thing to let a person very depressed. Online payment and the trend of mobile payment is now Internet life, is the trend of The Times, Subway should conform to the trend, the development and utilization of this convenient way of payment. Subway can also and different communication carriers, such as Vodafone, use fee paid directly. In New Zealand, most people will have a bus and a train and Subway can pass and the transport carriers, allows customers to use public transportation card and the train in the Subway.

6.1.3 Service quality
Service personnel will find a lot of problems in the process of service, the Subway need to found the problem employees a chance, they found the problem, and solve it. Different areas of the store service representatives should open a party every quarter, found the problem summary and share, avoid similar problems from happening again in other shops, improve service quality. Subway can also regularly staff appraisal, reward for excellent employees, encourage employees to more serious service, improve service quality.

6.1.4 Perceived gaps
Although their DIY a sandwich very romantic, but there are a lot of people don't like such a choice. They think this is a waste of time, and with their own tastes delicious. So I suggest Subway more classical collocation solution for customers to choose, can not only saves the time of customers and service personnel, can attract more customers, because they have more better choice! For the first time consumption for customers, although their DIY is very novel, but also not embarrassed, because they don't know how to choose. So Subway should create simple and clear diagram, where customers convenient see, service personnel also need a bit more enthusiasm and careful guidance these initial purchase customers, help them to choose, rather than simply waiting for customers to choose, in order to avoid customer's doubts and embarrassed. Compared with other fast food restaurants, Subway rarely distributed leaflets and give discount coupons, the Subway in virtually lost a lot of customers. Subway should put some ads in a variety of media and platforms, tell more people to its information and distribute more flyer and coupon, the customers are informed of the latest activities and preferential, attract more customers.

6.1.5 Service recovery strategies
First, to explain to the customer service mistakes in time. Service failure happens, customers will be on the service failure reasons of the subjective inference, normally the customer would not have their own reasons, and corporate responsibility entirely to blame. Enterprises should be timely and reasonable explain the reason for the failure, make customer given individual factors, external factors or employees avoid customer subjectively to blame for the failure cause enterprise as a whole, this will be conducive to maintaining corporate image and reduce the cost of service recovery.
Second, training and authorization to frontline staff and effective service recovery. Service failure happened, whatever the customer to the service failure attribution, considering the timeliness of service recovery will affect the procedural fairness perceptions of customer, enterprise must in the first place to solve the failure problems. So the enterprise should pay attention to training and authorization to the frontline staff in order to make them have the ability to service recovery and timely solve the problem of service failures, such as: give discounts or free of charge, after the occurrence of disputes of the parties to replace and compensation to customers.
Third, understand customer expectations, earnestly implement the appropriate compensation. Including the apology, discount, free coupons, such as a variety of ways, understand customer expectations, make customers to participate in remedial decision-making process and in a timely manner to give proper compensation mode, make compensation match the level of customer expectations, customers can effectively eliminate the discontent, to regain customer loyalty.
Fourth, with sincere attitude in the face of the customer. To deal with the process of service failures, customers want to be honest, attentive and treated politely. Service personnel should be expressed sympathy and concern to customers, understanding customer's disappointment and anger said, this will make customers feel enterprise is sensitive to his situation and care, help customers obtain the good interactive fairness perceptions. [4]
Fifth, the enterprise should pay attention to training with good relationship quality between customer and maintenance. Recent research has shown that giving an informed choice to customers can be an effective pre-emptive strategy to offset the damaging effects of service failure. The principle behind this strategy is that customers given an informed choice have increased feelings of self-attributions, share the responsibility for the service failure, feel more regret and stay more loyal.[5]

6.2 Recommendations
Subway is a global chain of large companies, business is numerous, the customer is multifarious, I recommend using Salesforce CRM software. Salesforce.com Inc. is a global cloud computing company headquartered in San Francisco, California. [6]CRM software of its most famous, ranked first in the world, can maximum limit satisfy the customer different needs. [7]

6.2.1 The cost of reasonable
Salesforce operation mode can be summarized as simply "the function of the network service is used to implement ERP software, software users only need to pay a small monthly fee, spending to save large amount of purchase". Different from traditional software business model, Salesforce customers don't need to buy the software CD, also do not need to pay handsomely for future upgrades. Once bought the right to use the Salesforce, the user can update regularly, and through the network to provide, do not need to install the program, and therefore do not need to please specialist maintenance, there is less spent on information equipment budget.[8]For Subway company need long-term use of CRM software, it is a good choice, take reasonable money can buy value service.

6.2.2 Nicely integrated Social CRM functionality
With the growth of social media, it is increasingly important to gain insight into what customers are talking about on Twitter, Facebook, Google+, and LinkedIn. Salesforce is by far one of the leaders in providing tools within its CRM application for you to get into this data. You can monitor and respond to conversations that are relevant to your organization, gain insight into your accounts and contacts’ activity streams from Twitter and Facebook, and create leads from posts and comments. [9]That is in keeping with the demand for the development of Subway, the Subway is need to improve on the network marketing and management, the CRM software can be very good to solve these problems, at the same time to strengthen communication with customers.

6.2.3 Real-time data access on mobile devices
You can get instant business information anytime, anywhere through an iPhone, BlackBerry, or Windows Phone. You are able to edit and customize almost every field, module, and object in Sales Cloud. Take a call with a contact and log the call as a record directly to the contact’s record, have leads routed automatically to your device as they come in, pull up account information prior to a meeting, and assign tasks to colleagues -- all from your mobile device. It is very convenient for the managers of one thing, but also meet the needs of the future development trend.

6.2.4 Companywide collaboration through Chatter
Built into the CRM application is an enterprise-level, real-time social networking tool called Chatter. This collaboration tool uses the same tools from social media to help organizations collaborate and empower all departments, from sales to service to marketing, to get more done faster. Chatter increases an organization’s productivity by sharing answers, ideas, files, and more. You can follow people or business data, such as records, documents, and analytics, within your organization and get real-time activity feeds to track each of these items.

6.2.5 Easy customization
You don’t have to be a programmer to customize Sales Cloud to fit your business needs. You can customize tabs, fields, and the interface and create formula-driven fields effortlessly with the help guide. Most impressively, you can utilize a point-and-click app builder to build your own application. You can even publish custom apps to Salesforce’s marketplace, AppExchange, to be shared with other users.

6.2.6 Salesforce to cloud services
Salesforce on the application of cloud computing can be said to be the pioneer of IT industry, its not only for our company provides a simpler and cheaper data and software services, more represents a kind of used for the spirit of innovation, dare to practice. [10]It not only can the independent design applications to meet the special needs, also can draw lessons from the existing custom application by modifying meet those requirements, at the same time perfect integration path will not affect the normal operation of the other systems within the enterprise, ensure that each system play to their respective functions, supplement each other, common service for enterprise production operation .

6.3 Privacy and ethics issues
Customers to provide personal information, the purpose is to hope that the enterprise really understand their needs, to provide more convenient. Here, however, there may be some privacy and ethical issues . [11]

6.3.1 Permissions and limit
Subway customers in the use of online services, fill out the phone number and email, web page no obvious hints, information about customers to fill out the authority to use and limitations, whether in all levels of employees can refer to the information, whether all level employees can use this information, no significant, and there is no legal guarantee, will these information leakage. It is very dangerous for customer privacy. With the development of information technology, the enterprise to gain more customers, through the network, telephone and other channels, widely collect customer information, to advertising. A large number of promotional telephone, SMS spam and junk mail serious violation to the customer's personal privacy. If cannot confirm customer about the safety of these data, it is likely to happen privacy leaks. And in the event of privacy leaks, the customer will not have strong basis to solve this matter, Subway will be customers think there are suspected of deliberately avoid responsibility, it is a disadvantage for customers and Subway.

6.3.2 Questionnaire and personal information
Subway will not be a questionnaire survey was conducted on a regular basis, the content involves the be fond of of customers, and customers of some of the personal information, Subway in the questionnaire, no prompt the questionnaire and final treatment way going, also didn't mention that these questionnaires will be made public. This is a very important privacy and ethical issues.After all, not all customers want to let others know whether he has multiple, rely on the Subway to reduce how much jins weight, how like Subway, or if you choose to eat Subway in order to lose weight. If these information leakage, maybe some weight loss products manufacturing chamber of commerce is happy to give this attention weight customer send junk mail and telephone harassment.

6.3.3 Subcard and security services
Although Subcard enjoy services and products for customers to buy has brought great convenience. However, customers in the use of card, service personnel will see some personal information, customer service personnel will these information leakage, is a great privacy security issues. And the loss of the card, stored inside tip made no personal information will leak.
Subway has 260 stores in New Zealand, many employees and customers quantity is huge. As a modern enterprise, it is necessary to use computer to manage, its safety performance is also facing a huge test, if in the event of information leakage, there will be thousands and thousands of customers received threats to privacy.

References
[1]http://www.Subway.com
[2]The Empirical research of service quality fast food industry impact on customer loyalty. Author: Zhou Wenhui、Gao Ming
[3]http://www.Subway.co.nz/
[4]Service recovery strategies and procedures discussed. Author: Zhan Xiaoyi
[5]Title：Service recovery and pre-emptive strategies for service failure: both lead to customer satisfaction and loyalty, but for different reasons.
Authors: Cranage, D. A.; Mattila, A. S.
[6]http://en.wikipedia.org/wiki/Salesforce.com
[7]http://crm-software-review.toptenreviews.com
[8]Salesforce business model analysis. Author: Rao Yajie
[9]http://www.reviews.com/crm-software
[10]http://www.salesforce.com/company/
[11]Customer relationship management data privacy issues can not be ignored.
Author :Du Juan、Ma Xijun