Customer Centricity has been explained as a business strategy where business functions revolve around understanding and satisfying customer needs. MacDonald (2016) terms it as a strategy which means putting the customer first and at the centre of a business that consists of understanding the customer needs, building a relationship with him and retaining him. From the 4 Ps of Management, the focus has changed to ‘get, keep, grow’ – meaning getting customers, retaining them and serving them facilities which help in winning over other customers too. A Customer Strategy focuses on the acquisition of customers, retaining them and increasing revenues from them in the present and in the future (Peppers & Rogers, 2003, p.6). More and more organizations are adopting this strategy as customers guarantee their profitability and survival. Yet there are many obstacles that are encountered in implementing a customer centric strategy (Shah, et al, 2006).
This paper focuses on the Customer Centricity in the UAE traffic department with the aim to make it more effective by offering services that cater to the needs of different customers. The need of a customer centric strategy for effective CRM and achieving customer loyalty has been described by Ballard (2008). Customer Loyalty contributes to customer equity which is the summation of life time value (LTV) of all customers and is affected by his experience with an organization (Peppers & Rogers, p. 312).
The Sharjah traffic Department offer a wide range of services to a variety of customers. However to make the services more effective it must develop a relationship with the customer to get an insight into his behavior which is followed by action. Building a customer relationship in the traffic department is quite a challenging proposal as the functions of the traffic department are sometimes corrective in nature and may present conflicting situations. An attempt is therefore made to distinguish the various sections of department and their functions in order to integrate them using Information Technology to improve CRM.
Business Profile of the Sharjah Traffic department
The Sharjah traffic department executes a variety of functions under different sections such as the vehicle license section, driving license section, fines section, tracking section, and accident section that have a uniform system covering the seven emirates of UAE. The traffic department is mandated to ensure a fast, safe, efficient, accessible and convenient transportation system (UAE Trade & Commercial Office, 2016). To follow the mandate, many states have formed several agencies to ascertain the implementation of set projects. State troopers and highway patrol are such agencies that perform vigilant activities using patrol cars, motorcycles and aircraft. Although the infrastructure is quite expensive, it is rolled out to prevent accidents by persuading drivers to observe traffic rules. Also, the traffic department issues and revokes driving licenses for drivers who habitually violate the traffic rules.
The services offered by the department can be classified into two broad groups – tangible and intangible service. An effective CRM strategy is needed to provide both the tangible and intangible services successfully.
Tangible services. All such services that are measurable may be described as tangible services (Lovelock, 1983). In the traffic department the services covered under this term include registration, renewal, transfer, export, replacement of damaged card, replacement of damaged plate number, deportation of tourist, payment of fine and revealing the ownership or number of a vehicle to authorities, etc. These services are performed by the personnel of specific sections under pre formulated guidelines that delineates the procedures and charges for a particular service.
Intangible services. They are not bound by any measurable standards and are dependent on individual discretion. These are mostly related to providing information to customers and depend on individual needs and personality. This is more challenging as satisfying the customer depends on how tactfully it is handled without referring to specific guidelines. Anderson (2013) depicts polite and caring behavior as walking the ‘Extra Mile’ which makes the customer feel loved and wanted. This requires spontaneous response and is an important element of CRM. It is obvious that this is an important aspect for customer and the traffic department is concentrating on improving the efficiency in processing information and attending to customer needs promptly. However, serving individual needs more effectively depends on the profile of the customers that frequent the traffic department for the process of identification, differentiation and evaluation.
Profile of Customers visiting Traffic department
The traffic department personnel come across customers who are companies or individuals requiring registration and driving license for their vehicles as well as offenders who have been fined or apprehended by the troopers for violating the rules. In each case the customers have to be dealt with using a set of guidelines specifically formulated for the purpose. For this, the peculiar features of each case have to be understood before the relationship management in each case is initiated.
Regular customers. They are the ones, who approach the traffic department for registration and other certificates for newly purchased vehicles, driving license etc. They include corporate sector, Government department and fleet owners. These customers may enquire about procedures and traffic rules and are supplied the necessary information. Renewal of permits, registration and license are the services availed by these customers from time to time. They can be designated as valuable customers to the firm.
Offenders. They are people who violate traffic rules continuously and have been involved in accidents, unlawful parking, speeding, lack of proper permits and drunken driving. The traffic department penalizes these offenders and may revoke their licenses if needed. Offenders constitute both corporate and individual customers.
Corporate customers. They are usually large companies, represented by separate section within the company that keep track of the vehicles owned by them and deal with formalities like registration, renewals, permits etc. Corporate vehicles may be impounded upon during transportation of goods for speeding beyond permitted limits or overloading beyond the level permissible on its axle or for playing loud music. For corporate customers, the penalties charged for violation of traffic rules are remitted by the company. Normally the companies have a competently staffed legal section capable of arguing out the case and seek lower fines and penalties for violators. Unless the vehicle is involved in an accident, the driver is not liable to prosecution.
In case of prosecution, traffic department cooperates with other state agencies like police and justice to furnish necessary information pertaining to the driver and the vehicles. It is necessary that a proper coordination be maintained between the department and the state agencies for effective administration of justice for and against the traffic rules violators.
Private non-corporate customers. The second category of offenders is those customers who can be sub-divided into two groups; citizens and foreigners. These individuals may be aged anywhere between14 years (hardship driving licenses for minors) to old age retirees.
Citizens. UAE Citizens are holders of valid Identity cards issued by their respective states of residence. Traffic officers request for their IDs and Driving licenses upon apprehending them for breaking rules. As citizens are fully familiar with all the routes to their destinations including shortcuts they tend to cross the speed limits.
Cases of driving by youths intoxicated with drugs and drinks after attending late night parties are becoming more frequent. These cases provide enough cause of alarm as they have a greater probability of causing accidents.
Foreigners driving within the jurisdiction of the traffic departments. Foreign citizens are required to obtain a permit allowing them to drive designated types of vehicles within the city if they wish to drive within the jurisdiction of the traffic department. Foreign drivers if accosted by the law enforcement officers from the department may be asked to produce work permit, passport, visa, trading license and a letter from the chamber of commerce and industry. It is evident that interacting with foreign drivers may pose a problem because of language differences.
Government departments. Government servants or ministry officials are accorded privileged facilities like special number plates and sirens by the traffic department who may over look offenses like speeding and ignoring signals. Government officials are not penalized for violations.
Discussion
Customer relation- ship management (CRM) is described as a technology or software solution that helps track data and information about customers to enable better customer service. Evolution of CRM can be traced to the interactive era of 21st century where focusing on customer needs became essential for gaining a competitive advantage (Peppers & Rogers, 2004, p. 4) .A successful and profitable CRM program is not just up gradation of technology but a total integration of technology, process and people (Chen & Popovich, 2003). It does not concern only buying or selling of product or services but also include providing reminders and updates, something that is greatly appreciated by the customer.(Reddick, 2010), claims that CRM has influenced creation of a more efficient and transparent system in Government bodies, a fact that can be adopted by the traffic department. There has to be an effective coordination between front office and back office for implementation of CRM (Xu, et al, 2002). Therefore CRM in UAE traffic department can be implemented only if the law makers and the patrolling officers work in perfect synchronization. At present the average time for processing information for assisting customers has been reduced to merely three minutes. CRM process may be expensive but the Return on Investment (ROI) or return on Customers (ROC) justifies it.
Customer Relationship Management in the Traffic Department
Building CRM with the regular customers. Since these customers approach the department for relevant documents or information, it is considered as a routine job and handled with reference to the rules and policies specified beforehand. However the quality and the processing time of the services can be improved by incorporating some internet enabled systems that will help the customers to (1) Download application forms, (2) upload information required (3) gather information (4) get answers of their queries via e-mail (5) remit fee by e- banking. (Peppers & Rogers, 2004), has described CRM as “personalized e-mail,” and the department can use internet enabled sites and apps to maintain better interaction with the customers by sending them e –mails reminding them of renewals, up gradation of processes and new traffic rules.
Also the concept of Progression of Economic Value presented by Pine & Gilmore (1998), which states that customers have progressed from paying for goods to services and finally to experience offered can be applied here. Apart from offering them an efficient service, giving them a memorable experience will add value to the service.
CRM for offenders of traffic laws. CRM for customers who break rules have to be handled more diplomatically as it entails punishment which is not accepted amiably by the recipients. The traffic department officials have to be trained intensively to handle these situations. They have to get the message across that they have nothing personal against the violators but are acting as per the laws which have been enacted for public safety. These Moments of Truth or interactions during emotional confrontation earn customer trust and loyalty (Beaujean, et al, 2006). If it can be conveyed to the customers that obeying rules and corrective actions are intended to ensure public welfare, a better relationship can be built with more cooperation from both sides.
Corporate customers may be involved in road safety seminars and requested to arrange discussions in their organization to build awareness about traffic laws. Most of the private companies enjoy high quality of the services which are flexible, prompt and more efficient. A special branch for corporate customers is established which facilitates quick and quality service which not only contributes towards CRM of these customers but proves to be more effective in delivering the services. Active participation in seminars on following traffic rules involving role playing can give the participants an Immersive Customer Experience described by Pine & Gilmore (1998). Corporate customers or fleet owners are the Most Valuable Customers (MVC) for the traffic department followed by regular customers, because they generate maximum volume of revenue in the form of registration and permit charges as well as fines for overloading or violating rules. Therefore corporate customers are given some additional facilities under separate section for their retention.
Juvenile offenders are more likely to fight law officers when arrested and threaten interference from powerful people who they claim to be relatives. However, they are also the easiest to reform with good advice and light penalties. All they need is the reassurance that these aberrations are sheer results of bad company and not perpetual misbehavior. They may be deterred from a tendency to violate laws through social inclusion and engagement of marginalized youth (Barn, & Barn 2010).
Handling customers from different cultures and backgrounds. As discussed earlier, the traffic department confronts customers of diverse cultures and backgrounds belonging to more than 120 countries. It may be noted that the body language and choice of words are different for the customers. There are substantial evidences from researches that cultural differences and languages act as impediments to counseling (Sue & Sue 1977). To enhance their skills to handle the diverse customers from different cultures, officers from the traffic department are trained in managing public expectations, body language, work and personal life-related pressure and multiple languages. An officer must comprehend more than a single language to enable him or her serve customers of different Nationalities.
In some cases, traffic officers come across customers who need interpreters to translate the instructions or messages the officers from the traffic department are trying to convey to them. In order to deal with the language problem it is being recommended that officers conversant with different languages within UAE be employed in the department.
Finally, officers from the traffic department must attend and qualify in first aid administration for them to attend to accident victims during work. This would prevent possible deaths from the accident and enhance their image among customers. Using the building blocks of interaction, trust, confidentiality and satisfaction a better relationship with customers can be achieved. The concept of a learning organization (Senge, 2006) where leaders teach about the changing work culture to the employees and encourage their participation in implementation of change has a great significance for CRM. Employees are the Internal Customers of an organization and their satisfaction is mandatory for the employee support and collaboration needed for building a customer friendly image. Boyle (2005) cites the example of Wegman, a grocery store in Rochester to emphasis the importance of employee satisfaction for organizational success.
Use of Social Media in CRM
In the current environment, social media for interaction with customers, also known as social CRM play a significant role in enhancing customer engagement (Heller Baird, & Parasnis, 2011). Social media are internet enabled sites and apps frequented by the public. There have been evidences that confirm the fact that applying social CRM in customer service has a great impact on customer satisfaction and loyalty (Modoran, 2015). The most popular among these are twitter, Face book, Instagram, whatsapp messenger, linkedin etc. The traffic department can maintain their continuous presence online and can be available immediately when contacted through their app in case of an emergency.
There are various ways in which the traffic department can be in touch with their customers by using social media and make CRM more effective. Cross functional integration – especially between marketing and information technology can enable CRM in service organizations to a large extent (Ryals & Knox, 2001). By creating their own page or sites in the media they can build awareness about rules among the customers. They can use their page to inform the customers about any changes, the new applications used for simplifying the process and answering FAQs. Traffic department apps can be used for applying for registration or license, reporting about accidents or thefts, violation of traffic rules or any other emergency. Internet enabled data base can be used to identify absconding offenders by the department and gather information in case of accidents. To summarize, social media can be used to create and promote ads, interact and build a common community where experiences can be exchanged.
Pitfalls of social CRM have been presented by Malthouse, et al; (2013) as the organizational inability to control spreading of unwanted messages by social media, lack of manpower and data security. However, social CRM capability can be magnified if coupled with customer centric strategies (Trainor, et al, 2014).
Conclusion
It can be inferred from the above discussion that traffic department in Sharjah must implement a thorough makeover from the image of a law enforcing body to that of a service oriented body to perform more effectively in UAE. The traffic department is responsible for managing the traffic system efficiently by reducing the number of accidents caused by violations of traffic rules, coordinating and systematically maintaining a steady flow of traffic without congestions and interruptions. It is obvious that this is a very challenging job that needs mental balance and cannot be performed effectively unless the customers follow the rules. This can be achieved only through building a system that is centered round the customer. The entire process of customer centricity needs identifying the customers, their evaluation and significance and the service offered to them for effectively managing a harmonious relationship with them. Reinartz, et al, (2004) have established that effects of CRM can be measured in performances by registering a tangible improvement in involvement and feedback from customers.
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