Submitted to

Ashik Imran Khan (AIK)

Department of Management
North South University

Course: MIS 207.7

Final Assignment

Submitted by:
Ishrat Mahjabin 1813454630
 Broad Questions

1. How an organization (e.g. Daraz) can create a strong customer relationship?

Consider CRM software.
- Customer relationship management, also known as CRM is technology enabled
relationship management, which allows organizations such as Daraz to get more
information about the customer, and create a niche profile for the customer. Such
information about the customers are gathered from the customer’s interactions with the
website and their behaviour online. The main idea behind using CRM methods is to
provide each customer with full purchase satisfaction. CRM collects regular data from
the time a customer spends online, and activities such as what products she navigates
through and what items she purchases. The organization then uses these data and analyze
them to get an understanding of the customer’s preference and caters to their needs the
next time the customer visits the website. This allows Daraz to create a strong
relationship with the customer, which will encourage the customer to use Daraz again in
future. There are many ways Daraz can create a strong customer relationship with CRM:
 With all the new e-commerce sites that are being launched each day in
Bangladesh, it is very important for Daraz to make sure their customers stay with
them, and there is no better way to do that than building a strong customer
relation. The better knowledge Daraz has about their customers, the better they
can take care of them. Daraz can have information such as customer’s full name,
telephone number, email address, home address, date of birth and social media
accounts. With all this information at hand, personalized communication is easier
to achieve.
 Segmentation is the best way to categorize the customers into target audiences,
and it can easily be done by CRM. CRM allows Daraz to understand what exactly
a customer is interested in and how to offer it to them. CRM allows them to
separate categories into small focused lists, and this helps to communicate better
with the customers.
 CRM also helps get better customer retention, which can be very useful in
keeping already existing customer’s satisfied. It is less expensive to keep an
 existing customer rather than finding a new one. CRM can help Daraz keep these
customers by sending them messages or emails and not letting them feel
neglected.
 Because of the fact that CRM system has the customer’s previous search histories
and order history, it can help Daraz to track their buying habits and anticipate
when an item will be needed. It can also help them to offer the customers better
offers and maintain great customer service.
 Another great way to create great customer relationship is by protecting their data
privacy. If a customer’s data gets leaked through Daraz, it will be very harmful
for both the customer and Daraz. That’s why CRM can help Daraz with General
Data Protection Regulation (GDPR). And Daraz can also ask for customer’s
affirmation before storing their information or sending them automatic
notifications.
 The last and most important way to ensure good customer relationship is by
ensuring good customer service, which can be done through reliable and speedy
communication with the customers. Daraz can build a good customer service by
answering to customer’s questions and concerns faster. CRM system can help
Daraz by having ready to use templates available for various situations so that the
customer service agents can help customers proficiently.

2. How an organization (e.g. Daraz) might use the funnel model in an online setting.
Explain with example.
- A funnel model is a strategy to create a structure and determine how to persuade a
customer to be interested in your website’s products and end up purchasing them. It is a
consumer-focused marketing strategy that demonstrates a customer’s journey from being
informed about a product and then purchasing the product. Daraz can use funnel model
and attract more customers through various ads, emails, popups and more. There are
certain steps that Daraz can use to make use of the funnel model on their website:
 Their first step has to be attracting customers through various ads about their
products, and their sales and offers. Customers could be on the lookout for their
 desired products, and while doing so, they could just stumble upon Daraz’s
website. Daraz’s website has to be informative enough to make the customer’s
aware about the website and their services. Hundreds and thousands of people
may click on their ads, and Daraz has to make these ads intriguing enough to
capture their attentions so that they can look in to their website more.
 Their second step would be to capture customer’s attention. They have already
piqued the customer’s interest by the ads. Now they have to make sure they can
hold on to that interest. They can do that by having pop ups on their websites that
ask the customers if they need any help or did they find what they were looking
for. They can also do such through their social media engagements, email
marketing and more. They can also show off their products and offers on these
products by which customers can compare them with other e-commerce sites.
 In this step, the customer evaluates their options and makes a decision on whether
to purchase products from their website or not. This is where Daraz can persuade
their customers to purchase from them. They can have product benefits mentioned
next to their products, and also mention their own superior service as a website,
such as same day delivery and more. This creates more desire for the customer
because they can imagine the extra benefits they will be receiving alongside the
products.
 In this process, the customer has decided to purchase from Daraz and goes ahead
with the transaction. In this process, Daraz has to make sure the customer faces no
problems and their transaction goes smoothly. They want to make sure that there
is no problem with currency exchange, or shipping charges and their payment
options are flexible. The customer then makes their purchase with Daraz.
 This is the last process of the funnel model. By far, Daraz has made sure to make
shopping as comfortable for the customer as possible and the customer had a
made a purchase. In this process, the customer has been very satisfied with
Daraz’s customer service so far and decides to purchase more things from Daraz
in future. Daraz has gotten themselves another loyal customer through the funnel
process.
4. Explain how an organization (e.g. Daraz) will segment its customers?
- Customer segmentation is a process where customers of an organization get divided into
various groups based on similar characteristics, and each of these groups get marketed
differently and effectively. These segmented groups are shown offers and products that
they could be interested in, and the e-commerce sites cater to their needs by
understanding how they were segmented. For such a large and segmented company like
Daraz, it is very important for them to be able to segment their customers and make sure
these customers get their optimal shopping experience. There are many ways Daraz can
segment their customers:
 Daraz can segment their customers based on their behavior. Daraz can collect the
data from their customer’s usage on the website, and segment them into groups
using behavioral patterns. These people can be segmented into customers who are
 browsers, buyers and shoppers. Browsers are those customers that are not very
serious about purchasing anything and kind of just browsing through the website.
These browsers can be persuaded into buying something by offering them
something that might catch their eyes and pique their interest. This might prompt
them to stay and buy from the website. Buyers are those customers who have very
specific things they need to buy. Daraz can help these customers by keeping a
track of their items in their shopping carts and keep bringing them to pages of
items they have purchased before. Daraz can also help them by directing them to
page of the item they searched for in the search box. The last of these categories is
shoppers. Shoppers are the customers that are looking for specific items, and they
truly are motivated to buy these items. They could be clicking around for more
information on the item they want to purchase. Daraz can help them by having a
thorough product details in the description. They can also enable the comments
for the product so that customers who have used it before can leave reviews.
Daraz can also help them by providing comparison tools, so that they can
compare and contrast the prices and quality of the item with other similar items.
 Daraz can also segment customers based on their demographics. These customers
can be segregated into groups based on their age, gender and locations. Customers
generally purchase products that they need for personal uses, and by observing
these orders, Daraz can segment them into groups. Daraz has to take notes of the
customer’s interests and what items they scrolling through, and offer them similar
items in their next visit. They can offer these customers products according to
their gender and age and location, and that way they won’t have to waste their
campaigning budget and will actually see a boost in their sales.
 Short questions

2. Compare various payment methods within the context of an organization (e.g.

Daraz).
- Daraz is arguably the largest e-commerce business in Bangladesh right now, and it is
very important for them to be equipped with all kinds of online transactions. Online
payment transactions are very safe, fast and convenient. Daraz needs to be very flexible
with different types of online payment options. These options include payments made by
debit and credit cards, scrip or gift cards, electronic transfers, cheques and payment cards.
The most common and widely used payment type is payment through credit cards, such
as VISA and mastercards, and debir cards. They are used by everyone and probably by
the majority of users of Daraz, because they are very safe for the consumers and have
customer protection. Charge cards such as American express are also used, and retailers
such as Daraz can offer consumers their own charge cards. Single-use cards can be also
used in the same manner. The advantages with these payment cards are that Daraz
doesn’t have to worry about the currency conversion or chances of fraud from the
customers. But the only disadvantage with payment cards is that Daraz has to pay fee per
transaction and also have to pay monthly processing fees. Daraz could have their own gift
cards for their customers like many businesses do, but then these cards cannot be
exchanged for cash and there is a cost of producing and advertising the cards. Daraz can
also have payments made by electronic apps such as bKash or Rocket, which are very
convenient. They are easier for refunding a customer, or useful for Daraz in case a
customer has to be contacted or tracked down.

3. Compare among an open loop and a closed loop transaction processing system
within the context of an organization (e.g. Daraz).
- Since Daraz is one of the leading e-business organizations of Bangladesh, their customers
use various methods of payments systems. Open loop and closed loop transaction
processes are different types of payment cards and they are both being used for e-
commerce sites every day. A closed loop payment card is which can be used only from a
specific organization, and the merchant will pay Daraz directly. Closed loop cards do not
 use any intermediaries and payments are directly made. These payment cards include
American express and Discover cards. An open loop payment card on the other hand is
much more frequently used and they can be used for multiple organizations. Open loop
payment cards are usually issued by financial organizations and three or more parties
work to process the transaction, usually done by intermediary banks which is the third
party. These payment cards include VISA, MasterCard and Discover. Their payments are
more complex, but also adaptable. For an organization like Daraz, closed loop system is
much more beneficial. The closed loop payment card’s payment methods are much
simpler than open loop payment cards, because closed loop cards work for only one
location. Closed loop payments are also more accessible and even Daraz can offer their
own payment card.

4. Explain the Total Cost of Ownership (TCO) for implementing an E-business system (e.g.
NSU Attendance software).
- Total cost of ownership is a financial estimate which helps buyers and owners determine
the direct and indirect costs of products and systems. It is the purchase price of an asset
and its cost of operation. We have learned that TCO includes all costs associated with an
activity. So if we were to explain the total cost of ownership for an e-business such as
NSU attendance software, we would have to include all the costs that are associated with
this operation. Any standard e-business TCO includes these core activities such as
employee salaries and benefits, site design, site maintenance, hardware and software
costs and design work. The most important activity is the employee’s salaries, which
must be included. These employees will be needing specific tools to create the attendance
system, and NSU will have to include the costs of these tools in the TCO. There will also
be cost behind the outsourcing design. There will be an employee in charge to ensure the
e-business stays stable and well maintained. There will also have to be employees
working on consumer’s troubles and concerns, such as a student’s attendance not
updating or a teacher not being able to manually take attendance. NSU has to keep these
extra costs included in the TCO. And also they will either have to hire more employees
for these extra operations, or has to increase the pay checks for the existing employees.
 The e-business will also need to be periodically tested for maintenance and improvement,
so there will be an additional cost there which will have to be added in TCO. To
implement an e-business like NSU’s attendance system, every cost from the beginning
till the ending in the creation of it has to be included in the total cost of ownership.

5. Explain various methods for reducing Credit Cards fraud within the context of an
organization (e.g. Daraz).
- In order to maintain a good relationship with their customers and have the consumers
trust them as an organization, Daraz has to make sure their customers don’t face any sort
of embezzlement or fishing through their website. Hackers usually send customers
messages that seem harmless and try to obtain the user’s personal information through
that and get access to their credit cards. To avoid such mishaps, Daraz can take many
steps. They could educate their customers more about such incidents in details through
text messages or emails. They could also have pop-up ads on their website or an ad on
their home page reminding customers about these, so that customers get a reminder as
soon as they open Daraz’s website. They could also educate them more on how to
identify the incorrect message source. Daraz could also change their protocols and get
legal help. They can work with the law or consulting firms that work specialize in anti-
phishing work. They also could have better control over their website so that such
phishing doesn’t occur. They could monitor their website and online chat rooms more
carefully. They should also monitor newsgroups, video conference or any other media
used by these criminals.

6. Explain why the Auction sites are not popular in Bangladesh?

- Bangladesh is still not very familiar with e-commerce sites in general. We have only
recently started putting our trust into e-businesses because of how efficient and
convenient they are. But auctioning is a little trickier of a process than regular online
businesses. There are a lot of risks of losing money and product for both the buyers and
sellers. In regular auctioning, an auctioneer arranges the auction, the bidder bids his price
and the highest price wins. But doing this online can be very unfair. There could be
unfairness from either sides, doesn’t matter whether it’s seller or buyer. In Bangladesh,
people like to observe an item before purchasing it, and prefer to purchase it from actual
businesses (B2C), but on auction sites it is not possible because on auction sites, the
sellers are also customers (C2C). customers also don’t prefer to use auction sites for
anything precious or expensive. There are a lot of chances of scamming in online
auctions. Customers could be sent a product that is faulty, or not the exact product that
was discussed to be auctioned. Sellers could ship the item and not receive the money
from the buyer, and buyers could make a payment and never receive the item. It is much
harder to track down the buyer or seller in case one of them gets scammed, which makes
it almost impossible to get any refunds. These are some of the many reasons why auction
sites are not popular in Bangladesh.