Developing long-term customer relationships
A RM case study

Page 1: Introduction

In recent years, rapid advances in technology have led to the growing importance of information and communications technologies (ICT). Information and communications technologies have provided the means for people and organisations to develop better ways of communicating with each other and working more efficiently. The sectors of the economy which have used ICT extensively have grown more rapidly...
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Page 2: Understanding the needs of the market

It is, of course, impossible to satisfy all customers’ needs with a uniform product or service. Within the total educational market-place, therefore, RM divides its market into three distinct segments - primary schools, secondary schools and further and higher education. Primary schools have highly specialised educational needs and requirements. For several years teachers have been under...
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Page 3: Stakeholders within the market

A number of people are involved in taking decisions about ICT needs and requirements in primary schools. Tight budgets and uncertainties about funding mean that schools have to think carefully about the short and long-term effects of any spending decision. Research carried out by RM identified four groups of stakeholders (people who are affected by the purchasing decision): The Head Teacher...
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Page 4: Creating the product

For the primary market, the computer has to be a curriculum tool. It would be pointless for RM to provide teachers with technology that is hard to understand and irrelevant to educational needs. As a result, and through working with teachers and other stakeholders, RM has concentrated its efforts on developing a user-friendly product - based on standards - which combines hardware sturdy enough for...
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Page 5: Partnership support

It was recognised that schools needed to involve the wider groups of stakeholders in the purchase of the RM Window Box. Teachers required good advice to be able to combine the demands of budgets, parents, governors and extra training for staff. A key step in achieving this was the formation of the RM Window Box Partnership. RM’s Window Box Partnership runs in association with Local Education...
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Page 6: Conclusion

RM achieved its objective of taking the number one position in the primary schools sector. This position has been achieved, not simply through the development of a good product, the RM Window Box, but also through the development of products with customers and not simply for them. This partnership has been based on a relationship designed to revolutionise teaching and learning through the...
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Related: Argos
Case studies in Business Case Studies

  • Edition 10 Identifying customers and meeting their needs

    As a result of carefully reading the Case Study, students should be able to: understand the importance of a mission statement, and know that Argos’ mission statement focuses on giving customers value for money by providing them with a convenient shopping experience, explain why segmentation helps an organisation to identify and meet the needs of customers and understand how frequency of visitors to an Argos store or site is a good way of segmenting customers, know what is meant by a growth strategy and give a brief explanation of how Argos is seeking to grow.