1.

0 Introduction
In the business environment, understanding our customers better will enable us to service
them in a better way and keep our consumer stay loyalty with forever. This is the main theme
of Customer Relationship Management (CRM). Khalid, Haslina, and Huda, (2011).
According to Injazz J. Chen and Karen Popovich (2003) stated that, Customer relationship
management (CRM) is a formation of people, processes and technology that seeking to know
and understand a companys customers. Besides that, it is also an integrated approach to
managing relationships by targeting on relationship between development and customer
retention. However, successful implementation is elusive to many companies, it is because
most of the company do not understand that CRM requires company-wide, cross-functional,
customer-focused business process re-engineering. Alternative perspectives of CRM are
reviewed and it is concluded that adoption of a strategic perspective is essential for success
In order for a firm to success in build customer value through managed relationships, the
company must engage in a four-step of process which we are call it as IDIC. IDIC which are
identifying customers, differentiating them, interacting with them, and lastly customizing for
them. These steps represent the mechanics of any truly relationship, which by definition
taking into mutuality and customer-specific action. But while the IDIC process show the
mechanics of a relationship, creating a customers trust should be the most crucial objective
of that process. Relationships will not happen anywhere unless in the context of customer
trust. In this paper, we diving in deeper to look at each one of the IDIC element tasks as well
as at the subject of trust itself. (Don Peppers and Martha Rogers, 2011).
In this paper, I will choose Levi Strauss & Co to analysis and investigate how they apply the
CRM strategy for their business to success and how they maintain the customer relationship
with its consumer. Levi Strauss & Co, also known as Levis, is a well- known worldwide
American clothing company which was founded in Year 1873 in California Gold Rus. Levis
brand name was named after the founder, Levi Strauss, a well-respected businessman and
local philanthropist. An historic day of Levis was marked on May 20, 1873, where first blue
jeans is made and invented. For the current business situation of Levis, Levis operate the
business through three geographic regions which is in Americas, Europe and Asia Pacific.
Levis products are now sold in approximately 55,000 retail locations in more than 110
countries (Levi Strauss & Co. Annual Report).

2.0 (Section1) - Literature review

2.1 General Concept of CRM
Customer relationships been increasingly studied in the academic marketing literature (Berry
and Leonard L, 1995). An acute interest in customer relationships are also apparent in
marketing practice and is most evident in company important investments in customer
relationship management (CRM) systems (Reinartz and Kumar 2002). Customer retention
proportion and customer share are included as a crucial metrics in CRM (Hoekstra, Leeflang,
and Wittink 1999). Customer share is refers as the frequency rate of a consumers buying of a
particular category of products or services from supplier to the customers amount purchases
of that category of products or services from all suppliers (Peppers and Rogers 1999).
Companies that successfully implement CRM will reap the rewards in customer loyalty and
long run profitability. However, the definition of understanding CRM is still incomplete and
growing. CRM can be understood as a business philosophy, a business progress, a business
strategies, or a business technological tool. As a business philosophy Reference to researcher
L. Ryals and S. Knox, (2001) stated that "CRM is a relationship orientation, customer
retention and superior value of customer created through the management process ". As a
business strategy "CRM is a customer-focused business strategy that target to enhance
customer satisfaction and loyalty of customer by offering a more responsive and customized
services to each single of customer" A. Croteau and P. Li, (2003).
However, CRM is defined from a balanced perspective by researcher Lun, Jinlin, and
Yingying, 2008, who state that "CRM is the philosophy, policy and coordinating strategy
mediated by a model of technologies information, which aimed s on producing two way
communications with customers so that firms have more closer knowledge of their consumer
needs, wants, and buying behaviour". In addition, one of the latest and holistic definitions of
CRM is the definition by researcher Rababah, H. Mohd, and H. Ibrahim 2010, who suggest
that CRM is the forming of a customer-oriented culture by which a business strategy is
created for obtaining, increasing the profitability of, and maintaining customers, which that is
accessible by an IT application; for achieving mutual advantage for both the organization and
the customers.

2.2 CRM Programme

According to previous researcher Nako (1997) and Bolton et al. (2000), they stated that
loyalty programs positively affect customers choice of company, transaction values, and
immunity to counterarguments, and retention. Besides that, researcher Lewis (2004) and
Taylor and Neslin (2005) have also suggested that the retailers loyalty programs redouble
purchasing and buying. Researcher Kivetz et al. (2006) also found that progress toward a
reward can accelerate customers purchases
To maximize these metrics, firms use relationship marketing instruments (RMIs), such as
loyalty programs and direct mailings (Roberts and Berger 1999). Firms also aim to build
close relationships with customers to increase customers relationship perceptions (CRPs).
Although the impact of these tactics on customer retention has been reported by researcher
Kannan, and Bramlett 2000, there is scepticism about whether such tactics can growth
successfully customer share in consumer markets. Beyond driving repurchase behaviour,
companies are interested in data tracking. Loyalty program features a business model of
program efficiency and a customer model of data-driven intelligence, which enables the firm
to deal with tailored strategies and incentives to appeal to different segments stated by
researcher Humby, Hunt, & Phillips, 2004.
Furthermore, Loyalty programs also a popular marketing tools for developing relationships,
accelerate the usage of product, and support retain customers. Researcher Morgan and Hunt,
1994 define that, a loyalty program as a system that integrated the individualized marketing
actions that aims to increase customers loyalty through personalized relationships that
facilitate the customer purchase behaviour. In general, loyalty program rewards are according
to cumulative of buying and thus may touch upon switching costs. Psychological,
sociological, and relational drivers also may increase customers trust and affective
agreement to a company, and programs may induce feelings of pride about seizing won and
earn something without having to pay the ordinary price.

2.3 Relationship Marketing

Relationship Marketing was all about to keeping customers as it is about getting them in the
first place. The goal is to offer a distinct value in chosen markets, supported over time.
Relationship Marketing emphasizes on both customer service and quality and how these can
be operate towards closing the 'quality gap between what are the customers expectation and
what they want to get. The researchers stretch the developing of process and carry out
relationship strategies and in so doing, signal a foundation shift in the marketing practice
embody firstly, the collaboration of external (customer) markets and the secondly was the
coordination within internal (staff) markets in sequence to obtain the marketing mix right.
(Christopher, Payne, and Ballantyne, 1991)
Using Dwyer, Crosby, Evans, and Cowless (1990) introduction of relationship quality;
Schurr, and Ohs (1987) seminal article on relationships; and Hunts and Morgan (1994) the
key mediating variable theory of Relationship Marketing, based on previous research, the
effects of RM on outcomes are causes by factors such as trust, relationship satisfaction,
commitment, and relationship quality. For example such as the researcher Morgan and Hunt
(1994) suggest that trust and commitment are both key to predicting alternate performance,
while others recommend that either trust or commitment alone is the critical relational
construct.
Several researcher have professed relationship marketing a paradigm transform for marketing
theory: We have to recognize that it is a new paradigm, but not just a new model (Grnroos
1996,). However, with the increasing acceptance of the relational concept, few marketing
researchers have listed on the philosophy of science and started to analyse this proposition
more subtly. By using the previous researcher theoretical framework by Thomas Kuhns,
Backhaus (1997) has come out with two essential requirement which must hold if a new
concept is to stand for the point of paradigm shifting in marketing theory: (a) a new paradigm
must overlay all problems and facts in the market field, and (b) new tools and ways for
theoretical analysis must be granted. Relationship marketing might not be involve in
particular exchange constellations (e.g. situations where hit-and-run strategies are even more
advisable) and it draws on pre-existing build and solutions (e.g. customer satisfaction, trust),
rather than creating a new one. Researcher Backhaus thence concludes that relationship
marketing (in spite of its undisputed importance) does not have to meet the required
conditions and another meaning that the paradigm shift for marketing theory does not
represented.

3.0 (Section 2) - Theoretical concepts of IDIC Model

In order for a company to establish and administrate relationships with their valuable
customers, it must engage in a four step process we known as IDIC. The basis of effective
Customer Relationship management is to build on an iterative process of understanding and
customization. Peppers and Rogers (1999), the proponents of one-to-one marketing proposed
the IDIC framework to explain the process of converting existing customers into loyal
customers. Peppers and Rogers (1999) also suggest that a different model that a CRM
strategy should be based on the IDIC view. In Appendix 1.0(IDIC Model Conceptual
Framework), the stages are; Identify, Differentiate, Interact, and Customize whereby, Identify
and Interact are the interactions with the customers, Differentiate and Customize are based on
analysis of customers.
1. Identity: The first stage is requires the company to capture information or knowledge
about customers needs, wants, favour, values, feedbacks and problems. This process is
associated with the information process which contain the information about, toward and
from customers. The relevant information gathered is linked to individual consumers and to
be used for serving them one by one to satisfy their needs and wants. Consequently there will
be results used in expansion a long term advantageous relationship between organization and
customers (Peppers & Rogers. 2001)
2. Differentiate: According to researcher Kotler& Fox1995 stated that, customers need to
differentiate on the basis of their value as well as their needs. The value show customer's
worth to the company-higher the value, more the company would be interested in maintaining
them. Though the best way to appraise the value of the customer is in terms of revenue but
this can become hazardous when the price for serving these customers is higher than their
revenue. Therefore, the ideal of measure customer value would be their dedication towards
profit which might be formidable to measure in numerous cases. Several customers are
pleased with very standard products and services while others have very specific needs to be
fulfil. The customers who with specialized needs can establish occasion for customization.
Differentiation will assist the company tailor it offers to each single customer in order to
reflect their values, needs and wants.
3. Interact: Based on researcher Peppers & Rogers, 2001 mentioned that the objective of
interaction or customer interface is to assemble as much useful information as possible about
the customers targeting more on the valuable customers. These interactions can occur when

the customer is making a transaction, using any others service or even while him or she is
making a complaint feedback. The learning relationship gets wiser with each single customer
interface.
4. Customize: The last step and also one of the most important step as it is based upon all the
information that has been collected and gathered about the customers to offer a real value to
them by customizing some respect of the service related to a product or even great majority
of customizing the product if required. If the customer is offered a product or service on the
foundation of what he or she has indicated during his or her interactions, it will helps in
enhance the ability to suit the product and service to satisfy the needs and wants of this
customer (Peppers & Rogers, 2001).

4.0 (Section 3) - Application of IDIC Model by Levi Strauss & Co.

In the first stage for IDIC models which is to identify customers. Levi Strauss & Co
identified their customers when the customers register themselves become one of the
members of Levis Loop Membership Program by making any purchase at any Levi Strauss
& Co Stores and sign-up at the store. Their personal information will be recorded and process
it into company database safely. By the membership registration, Levi Strauss & Co will be
able to identify their customers, Levi Strauss & Co will also have the ability to more
understand what are their customer purchasing pattern and therefore Levi Strauss & Co able
to get more creation of ideas to serve their precious customers in a much more better way. .
(Levi Strauss & Co, 2016)
Furthermore, the second stage is to differentiate customers. For Levi Strauss & Co, they
different their customer through the membership customer who are done registered in
Levis Loop Membership Program and non-membership customer who do not have register
to the Levis Loop Membership Program. Levi Strauss & Co will have provide special
privileges such as sneak previews, special offers, exclusive invites and Levis merchandise
just only for Levis Loop Membership. But for non-member, the benefit will much for
lesser compare to membership consumer. For example, Levi Strauss & Co will have seasonal
sales promotion for all the customer included membership and no membership customer.
(Levi Strauss & Co, 2016)
The third stage will be interact with customers. Levi Strauss & Co interact with their
customers by community pages through social media such as Facebook, Twitter and
LinkedIn. Levi Strauss & Co will publish the latest news about their product release and also
their latest sales promotion so that the customer will grab the first hand news. Furthermore,
official website of Levi Strauss & Co are also provide feedback form which it provide a
portal to let their consumer to provide complaint and feedback toward their product and
service. Other than that, Levi Strauss & Co also had developed they very own mobile apps
for mobile devices which are called Live in Levis. Live in Levis are available free of
charge for everyone which included membership and non-membership. Live in Levis
provide the function such as latest offers, sales promotion and social community for the user
which they could access to get the latest news Levis product and services. Which it bring
even closer the relationship between the consumer and the company. . (Levi Strauss & Co,
2016)

The last and the final stage is customizing customer. For Levi Strauss & Co, the have a
service called The Levis Tailor Shop which it provide their customer an exclusive services
that everyone can have their personal own style of jeans and cloth. Through The Levis
Tailor Shop, the tailor will giving a hand and assist their customer on how to customize their
very own jean and cloth in order to fulfil the fashion needs and wants of the customers . It
definitely bring the customer to a whole new level of purchasing experience to with Levi
Strauss & Co. (The Levis Tailor Shop, 2016)

5.0 Conclusion
As a conclusion, we have known that managing a good relationship with customer is the core
objective of company. Customer relationship management (CRM) is very important for each
company in order to survive and gaining profit in long term in the business industry. This is
due to the customers are the one who will contribute to the company profits; therefore it is
necessary for a company to have at least one good and effective CRM programs. But
different research and author will have different perception and also opinion towards each of
the CRM model. There are number of CRM models are developed to manage customers.
CRM models are helpful to understand the concept of CRM and regulate the modern concept
of CRM. The model of CRM included IDIC Model, QCI Model and CRM Value Chain
Model. Each respective model have different function and ways in assist a company to
maintain and improve the relationship between company and customer.
In this assignment, IDIC that applied on it and has explained how an organization can
manage and increase their interaction with their customers in an effective and convenient
way. The model also explained how an organization can use knowledge based system to
estimate their customers interactions with them. Therefore, the interaction between Levi
Strauss & Co and customer is one of the essential parts in business process. Using the IDIC
model would enhance and retain a good interaction between Levi Strauss & Co and customer.
Besides that, Levi Strauss & Co believe that enhancing the IDIC model with comprehensive
and coherent guidance can effectively be the key ingredient in the context of satisfaction and
loyalty by establishing and improving long-term relationship. Furthermore, the elements of
IDIC model have been adapted, applied and then enhanced across the organization and the
justification of each element expounded through the following stages. From the first stages,
Levi Strauss & Co using the loyalty program call Levis Loop Membership Program to
collect their consumer detail information in order identify their customer purchase behaviour.
After that, in the second stages, Levi Strauss & Co differentiate their customer into
membership customer and non-membership customer identify the different needs of
customers. In the third stages, which Levi Strauss & Co by using social media and mobile
apps to forming an interactions between an organization with its customers with respect to
their production and service. Lastly, Levi Strauss & Co customization of service given to
customers by using the needed knowledge of each customer through The Levis Tailor Shop
in order to improve the relationship between company and customer and also develop a
strong relationship with potential Levi Strauss & Co customer.

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7.0 Appendix

Appendix 1.0 IDIC Model Conceptual Framework (Source: Siddiqi. J. Babak. A. Wise. T.
2002)