Client relationship marketing practices: a case of petroleum industry in Thailand.

Abstract

This research studies the implementation and process of customer relationship management (CRM) practices at the Thai state petroleum firm, PTT. The study was based on a conceptual framework of CRM based on customer lifetime value (CLV), proposed by Woo and Leelapanyalert (2014). This model proposed a four-stage model of the customer relationship, with different activities taking place at each stage to increase sales and profits, customer loyalty and other positive outcomes. The study used a qualitative research method. Interviews with ten sales area managers and related staff members in different business units of the organization. Findings showed that CRM was considered very important in the company. The emphasis was on learning about customers and meeting customer needs, as well as providing information about the firm’s services. Activities included social activities (such as dining and temple trips) as well as professional development activities (like seminars about the firm’s products). The respondents pointed to benefits like increased customer loyalty and commitment, improved profits and sales, and improved efficiency. The main recommendation derived from this study is that they should explore the CRM model and see if it would be effective in their business. The case of PTT showed that the firm’s objectives of increasing profits and sales, along with customer satisfaction and loyalty, could be achieved through CRM. It also showed that the program created long-term relationships between the firm and its customers, including social connections between the firms and the area managers supporting them.