CRM in Retail

8/13/2019 CRM in Retail

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Presented By

Achal Gupta

Anmol Garg

Vivek Jaiswal

Ruchin Goel

Ankit Jain


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Characteristics Highly unorganized and & fragmented industry.

Linkages with the economic growth (22% to GDP and 8%

employment).

Rural and urban divide.

Emergence of multiple retail formats.

Working capital intensive.

Generating employment opportunities.


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Forms of Retailing Convenience stores

Factory/company outlets

Specialty stores Supermarkets

Department stores


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Product Based Segment

Apparels.

Footwear.

Health and Beauty Care Services.

Consumer Durable and Home Appliances.

Furnishing, Utensils, and Furniture Home and Office.

Food and Grocery.

Books, Music and Gifts.


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Kinds of Retailing

Unorganized:

Ownership and management rest with one person.

Accounts for 2/3rdof the retail market.

Normally street markets, counter stores, kiosks and vendors. Organized:

Modern retailing.

Offers variety of products (quality, value for money).

Shopping a memorable experience.


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Indian Customers Time killers: Moves around & covers lot of store; spending

less time; waiting for someone; no intention to buy; Zeroconversion rate.

Focused Fulfillers: Moves quickly to the specific product;

82% conversion rate.

Product Groupies: Have specific notion about the store; will

touch many products, but focus on the target group product;

37%conversion rate.

General Browsers: Cover large area; move slower than timekillers; non-focus interaction with product; 2%conversion

rate.

Pleasure Seekers: Spends long time; easily influenced; 79%

conversion rate.


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Characteristics of Customers

High disposable income.

Price sensitive.

Value for money.

Educated.


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Meaning of Customer Relationship

Management (CRM):

To support these processes, various CRM Software likeSAP, ORACLE Sales force.com etc. are used. Thesesoftware record and store information aboutcustomers, various customer interactions, their

problems etc which can be accessed by employees indifferent departments of the company. Theseinformation are used by the organization to makefuture plans that can satisfy the customer on a better

way and retaining them for a longer period.


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VARIOUS ASPECTS OF CRM

CRM includes many aspects which relate directly toone another:

Front office operationsDirect interaction with

customers, e.g. face to face meetings, phone calls,e-mail, online services etc.

Back office operationsOperations thatultimately affect the activities of the front office

(e.g., billing, maintenance, planning, marketing,advertising, finance, manufacturing etc.)


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CRM POLICY OF RELIANCE MART

CRM policy of reliance mart can be divided into four

major parts, namely;

Customer loyalty

Customer retention

Customer communication

Customer gratification

.


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Customer Loyalty- Reliance Mart

There exists a blanket customer relationship programmecalled the reliance one membership programme for thepurpose of maintaining customer loyalty. The membershipprogramme is a very simple one where a willing customer isrequired to fill a form giving personal information and he gets a

temporary card which will be made permanent after sixmonths.

On each purchase of Rs. 100 the customer gets oneredeemable point on the production of card at billing counter.The collected points can be redeemed in form of discounts onfuture purchases on demand of the customer.

The members of reliance one get the opportunity of taking part andwinning prizes by the way of lucky draws on regular intervals.


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Customer retention policyReliance mart -

implementation Generally each state is regarded as a zone and the offers and discounts in a

zone are not available in other zones. Such policy helps reliance retail tounderstand and capture the local markets better. The products which showimprovement due to offers and discountson them are repeated with theseoffers again so as to retain the sales of the customerswho bought it the lasttime.

Also such the days best offers are constantly announced in the store makingthe regular customers aware about them.

Maintaining a good store ambianceis also a part of customer retention policyof reliance retail. Clean and hygienic environmentwith properly andwellspaced products along with a uniform color themeattracts the existingcustomers to the store again and again.

A fast billing system and good and easy grievance handling systemwhich can be accessed thru customer service desk and company website,ensures that customers feel satisfied with the store management. Lessharassment to customers means better customer retention.


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Customer Gratification

Reliance mart A simple thank you with a smile goes a long way for

the store to keep the customers happy. The specialevents organized by the stores across India are also away to gratify the customers by allowing them to playand win prizes. Gift vouchers and discount couponsare an attraction for the customers and give them thefeel that the store cares about them and their money.


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LimitationCRM implementation

The implementation of the policies brings out certainlimitations in them. Few major ones are as follows

The personal contact numbers of reliance one

members are open to tele marketing calls from variousmarketers as they leak out of the reliance retailsdatabase, causing unnecessary harassment tocustomers.

The customer communication policy is less followedin small towns and cities and is more concentratedtowards the metro cities.


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LimitationCRM implementation

There is a common crm policy for both reliance freshand mart. This should not be the case as both thestores offer different kinds of merchandize andgenerally attract different kinds of customers.

Reliance retail generally delays the processing ofpermanent membership cards to those customers.

Unmanned billing counters create long queues at theopen counters. This creates impatiens in the

customers as they expect faster billing at the storesand do not want to stand with too much of goods heldin their hands while billing


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CRM @ BIG BAZAAR

Database is formed through the issue of future cardand card is of three types silver card, gold card andsakthi card.

Customer profitability analysis (CPA) is done on thebasis of transactions made through the future cards.

Platinum customers (most profitable).

Gold customers (profitable).

Iron customers (low profitability but desirable).Lead customers (unprofitable and undesirable).


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There are four type of analysis done for analysis

of CRM

Periodic Surveys

Customer Loss Rate

Mystery Shoppers Monitor Competitive Performance


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Steps Involved in customer

Satisfaction through Service:Seeing problems from the customers perspective

Managing customers

Communicating effectively through better listening

Analyzinghow customer perceptions are formed

Managing anger and other service behaviors

Dealing with long-term consequences of service

breakdownNegotiating solutions

Generating an action plan for improved on-the-jobeffectiveness


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CUSTOMER COMMUNICATION- Big bazaar

Future group maintains its records of customers by observingtheir purchasing habits & categories them into various groups.

They communicate to the customers through various mediumlike SMS,E-mail, Mobile vans, Print media etc.

Presently they are using oracle software to maintain database.

Recently they have tied up with California based firm

GREENPLUM to provide new software for data warehousing.


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CRM in Retail

Documents

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