How Do Automobile Companies Use CRM To Improve Customer Loyalty? A Study Of Volkswagen (2006)

As the cost of acquiring a new customer is five times more than retaining an existing customer, encouraging brand loyalty is an ultimate goal for any business. Customer Relationship Management (CRM) is a newly evolved phenomenon that, if applied correctly, can transform an organisation’s outlook on the customer and improve their loyalty to the brand enormously. Volkswagen is currently Europe’s number one automobile brand and is a globally renowned distributor of motor vehicles. In fact, one in five cars on the road in Europe is a Volkswagen. However, Toyota are emerging as a major threat, and the dominance of Volkswagen is beginning to diminish slowly but surely.

This dissertation seeks to establish what CRM procedures Volkswagen have in place (whether intentional or without actually realising it), with an evaluation of current customer loyalty in the UK among Volkswagen consumers. This was done by using a combination of primary and secondary research, with the primary techniques being focus groups, interviews and questionnaires. The outcome of the research was that Volkswagen has plans to bring in a refined CRM approach to improve customer loyalty rates. The construction of a sophisticated database to record all consumer behaviour is well underway and will bring a tailored approach to each consumer, which is a key indicator of a successful CRM strategy.

However, at the time of the study the organisation was doing very little along the lines of CRM intentionally, although basic models (such as the 4 P’s) grasped certain elements of CRM. The questionnaire results provided sufficient evidence from Volkswagen consumers that loyalty is not as high as you would expect for Europe’s leading automobile supplier.

  • 12,000 words – 56 pages in length
  • Excellent use of models
  • Good analysis of subject area
  • Includes questionnaire and transcripts
  • Ideal for business students

Insight into this Paper
Reasons for Research Topic
Academic Objectives of the Paper
Chapters Overview

Volkswagen Background

Definitions of CRM
Reasons for the Emergence of CRM
The Growth of CRM
CRM in the 21st Century
The Emergence of the Internet – Opportunities and Challenges
The Use of a Database in CRM
The Database and Resulting Analysis
Measuring the Success of the Database
Criticisms of CRM
The Effects of CRM on Customer Loyalty
Loyalty Defined
Positive Aspects of Customer Loyalty
Ways in Which CRM Can Achieve Improved Customer Loyalty
Conclusion of Literature

Case Study Approach
Research Methods
Secondary Research
Primary Research
Quantitative Research – Questionnaires
Pilot Questionnaire
Final Questionnaire
Limitations of Questionnaires
Qualitative Primary Research – Interviews
Limitations of Interviews
Ethical Considerations

Interview A
Analysis of Questions

Focus Group (Interview A)
Interview B
Possible Areas of Future Study and Recommendations


Statement of Learning
Interview A (Focus Group) Transcripts
Interview B Transcripts
Pilot Questionnaire
Covering Letter
Final Questionnaire
Questionnaire Results
Setting the Scene
Validity & Reliability
Case Study
The Likert Approach

Improve Customer Loyalty Through CRM Dissertation
Improve Customer Loyalty Through CRM Dissertation

How To Order

1. Dissertation cost £55 GBP

2. Click the PayPal button

3. Click the “Click Here” button on the PayPal page to submit your credit/debit card payment

4. We will email your chosen dissertation in PDF format within 24 hours