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Cremer's Challenge

ISO Enterprise Informática says that CRM is the way to improve client satisfaction and expand business. The experience at Cremer S.A is an irrefutable proof of such claim.

Cremer S.A is a Brazilian hospital and medical supplier. Their experience has become a case study published by professors Michael D. Hutt and Thomas W. Speh, from Arizona State University and the University of Miami, respectively, in a book called "Business Marketing Management: A Strategic View of Industrial and Organizational Markets." Cremer faced a financial crisis that made it redefine its business model and leave behind its product marketing scheme, which was intermediary-based, to deal directly with end consumers. As a result of this new strategy, in only one year, Cremer's active clients rose from 6,500 to 41,000.

The company could no longer cope with heavy debt, thinning profit margins and lack of credit. Applied Consulting, at the request of Cremer's creditors, carried out a feasibility study of the company and later remodeled its management strategy.

The feasibility study showed positive results: Cremer's brand had a strong presence in the market. The company had quality products and excellent human resources. However, unless it changed its business model, it ran the risk of being pushed out of the market. The subsequent management changes involved both the redefinition of the marketing scheme -leaving commercial representatives behind in order to focus on end consumers-, and an internal reorganization based on a horizontal model. Based on this organizational model, the decisions to implement this new business plan were made by a group of directors acting as a committee.

The new business scheme also implied the incorporation of distribution and logistics centers, a change in the pricing policy, and the implementation of a call center in order to offer direct attention, quick delivery ?less than 24 hours? and a single price, straight from the factory.

The new Cremer started gathering a crowd of operators at a call center, who were supposed to receive a large volume of orders. The company did away with the previous system which consisted of a group of salespeople that only brought a few, large orders into the company. The strategy implied flexible production -daily programming, minimal stocks, and high turnover- and the sale of various out-of-the-box products, which also embraced small orders.

Related
ISO Gesac at Cremer's Call Center
ISO Enterprise Informatica