Customer relationship management at Maruti Suzuki

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  • Customer Relationship Management at Maruti Suzuki Submitted on 20-Feb-2012 Group#08 (Section B) Basu Agarwal (FT12416) Bikram Satapathy (FT12417) Saloni Goel (FT12455) Shruti Mishra (FT12462) Srinivas Dhenuvukonda (FT12467)Great Lakes Institute of Management, Chennai 1
  • Index Page1.0 Introduction 32.0 Various Technologies at Maruti Suzuki 4 Level of CRM3.0 Analytical CRM 5 3.1 Data base 5 3.2. Direct marketing-Data analysis 6 3.3 Cross-selling of various value added services 6 3.4 Customer Retention for Service at dealers, satisfaction, thereby, sales retention for the future 74.0 Operational CRM 8 4.1 Campaign management for promoting the special offers 10 4.2 SX4 Pre-launch Campaign management on MSD CRM 4.0 10 4.3 Insights for Dealer Development Division (DDD) & used car division (TRUE VALUE) 10 4.4 Loyalty card implementation (Auto card) 115.0 Strategic CRM 116.0 Philosophical CRM 127.0 Challenges addressed by MS Dynamics CRM 4.0 148.0 Future challenges of Marutis CRM 14Great Lakes Institute of Management, Chennai 2
  • 1.0 IntroductionMaruti Suzuki is the Indian passenger car market leader for several decades. It has crossed the 10million cumulative domestic sales mark here today. It is the only automobile company in Indiato cross this milestone.The Company, which had rolled out its first car in December 1983, attained 5 million domesticsales in February 2006.The next 5 million domestic sales have been achieved in six years.The 10 millionth vehicles, a Red Swift Vxi, was dispatched to Coimbatore on February 9th, 2012from the Companys Manesar plant.While Maruti 800 and Omni powered sales for almost two decades, the Alto has been Indiasbest-selling car for the last over 7 years. In recent years, the success of WagonR and Swift,among others, has accelerated the Companys progress towards the 10 million mark.Dedicating this milestone to customers, Shinzo Nakanishi, Managing Director and CEO, MarutiSuzuki India Limited, said, "Maruti Suzukis success story is closely linked with the successstory of India in the last two decades. Even as India has grown and transformed, Maruti Suzukihas evolved to meet changing demands. He said, we will continue to drive the growth andevolution of Indias car market. I thank employees, dealers and suppliers for their support andcommitment".Top five Maruti Suzuki models in cumulative sales Models Cumulative Units sold M800 26.36 lakh units Alto + K10 19.08 lakh units Omni 14.37 lakh units Wagon R 11.14 lakh units Swift 6.85 lakh unitsDespite holding strong position in the market, Maruti Suzuki losing market share drasticallydue hyper competition prevailed with the entry of foreign players such as Ford, Chevrolet,Toyota, Honda & Renault etc. With that competition in place, the marketers now had to focuson customer oriented activities to stay in touch and retain them.Also, Maruti used communicates with the dealers and dealers, in turn, the dealers communicatewith the end customers and vice versa. With this, there is lot of widened gap of understandingthe customer needs and wants. With that dissatisfied customers are growing immensely. thereis no proper channelizing system to deploy the customer complaints and then solve them ontime. Diagnosing these dynamic changes in the customer market, Maruti wanted toGreat Lakes Institute of Management, Chennai 3
  • communicate with the existing customers directly and understands the requirements and servethem better. Hence, Maruti had to initiate various customer focused marketing activities suchintroducing Customer Relationship Management (CRM) to retain the customers, acquire newcustomers & increase the customer satisfaction& loyalization. Maruti Suzuki Maruti Suzuki Dealer Dealer Customer CustomerFig 1(a). Traditional Communication Fig 1(b). Direct Communication through CRM2.0. Various technologies at Maruti SuzukiHCL technologies implemented the CRM at Maruti Suzuki. They have implemented MicrosoftDynamics CRM 4.0 in a span of approximately 6 months. Application Technology Suppliers Dealers Management Oracle 9i system Wipro, Oracle ERP Oracle-business suite Wipro, Oracle CRM Microsoft dynamics CRM HCL, Microsoft, SASGreat Lakes Institute of Management, Chennai 4
  • 3.0 Analytical CRM3.1. The data baseThe database is the pre requisite for any kind of data analysis that is done in the analytical CRMmodule. Since Maruti has established network of data centers through dealer transactions andtoll free number-call center data capturing etc. Maruti through various channels.Those are the following. 1) Any Time Maruti- toll free call center (operated by HCL Technologies at Noida). All kinds of queries are logged at (ATM) and the kind of information received into the following areas. a) New sales queries due to campaigning or advertising by Maruti b) Existing customer sales queries/complaints c) Service complaints These databases are automated to get migrated with respective operational CRM software modules from the call Centre. 2) Dealer Management System (DMS), dealer transaction module which is connected through extranet to the central server of Maruti. a) All the queries (sales/service/true value) are logged onto the DMS portal by the channel partners. b) The same data is migrated to the Microsoft dynamics Software at Maruti.The database from these sources is used for need analysis after the data is cleaned using variousdata warehouse/data mining techniques. CTPI MSD DMS server RDBMS SAS platform DW ATM HCL call Centre DA server Fig 2. Customer Database flow for analytical CRMGreat Lakes Institute of Management, Chennai 5
  • 3.2. Direct marketing-Data analysisThe problem with direct marketing is with the fact that success rates of direct marketing arevery low. For example, some survey suggests that national average of catalog sales success ratiois about 2% ! With such success ratio, selling low profit margin products through directmarketing may not be feasible. Analytic methods that can select customers who are more likelyto buy products are needed. The following techniques can be used in selecting customers; Customer profiling Customer segmentation Customer scoring Predictive modelingThese techniques can reduce marketing cost by eliminating customer groups who are unlikely toplace orders. The techniques that are extensively used in Direct Mail Marketing are RFManalysis, clustering loyalty scoring etc.3.3. Cross-selling of various value added servicesCross-selling is to sell other products to existing customers. To increase the success rate, otherproducts tend to be co-products or related products. For example, a customer who bought aSWIFT car will likely to purchase extra accessories, extended warranty and Auto card.The following chart shows customer purchasing behaviors;Cells in red color indicate that there is positive relationship between two products. That is,when customers buy one product, they tend to buy the other product as well. Cells in blue colorGreat Lakes Institute of Management, Chennai 6
  • indicate the opposite. When customers buy one product, they tend to not buy the otherproduct. Brightness of cells indicates the relative strength of rela