CRM in Retail

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Himesh V Midhun Charles Renjith C.R Vineeth V 5/5/12

What is Retailing ?
Retailing is a distribution channel function, where one organization buys products from supplying firms or manufactures products themselves, and then sells these directly to consumers.

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Forms of Retailing

Convenience stores Discount stores Factory/company outlets Specialty stores Supermarkets Department stores Hypermarkets
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Characteristics

Highly unorganized and & fragmented industry. Linkages with the economic growth. Rural and urban divide. Emergence of multiple retail formats. Long supply chain. Working capital intensive. Generating employment opportunities.
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Segment based on products

Clothing ,Textiles, and Fashion Accessories 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 2/3rd of the retail market. Normally street markets, counter stores, kiosks and vendors. Modern retailing. Offers variety of products (quality, value for money). Shopping a memorable experience.

Organized:

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Organized Retail Sector

Tremendous scope; to grow faster than GDP growth in next few years. Grow at faster CAGR of 21.8% to $ 55 billion, garnering around 15% of overall retail sales. Top organized retail categories by 2015 would be food, grocery and general merchandise; apparel; durables; food service; and home improvement.
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Factors for Business Growth

Rising urbanisation. Growing consumer class. Growing per capita expenditures. Baby Boomer effect. Growing spread of plastic money. Changing face of Indian consumerism from necessities to luxuries. Rising number of nuclear families.
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Growing female working population.

Indian Customers

Female working population. Families. Individuals. Middle to high end customers.

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Characteristics of Customers

High disposable income. Price sensitive. Value for money. Educated.

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Customer Life Cycle

Acquisition

Conversio n

Reach

Loyalty

Retention

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By - Atul Purohit

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Major Organizations of the Sector

Reliance Fresh Spencer Big Bazaar Star Bazaar More Shoppers Stop

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Customer Retention-Retail

Discount pricing. Attractive variants of products and services. Loyalty programs. Offers. Attractive service.

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Customer Defection-Retail

Poor servicing. Poor quality products. Low variants. Billing/Queuing issues.

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CRM Penetration

Sales. Marketing & analysis. Business analysis and planning. Measurement and planning. Retail services. E-services. Call center services. Field services.
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Partner relationship.

Customer facing Process

Receiving the customer. Enquiring. Directing. Verifying. Billing. Escorting After sales servicing
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Process Flow

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Operational CRM

Front office processes. Customer interaction added to contact history. Retrieval of information. Customers can interact with different people or different contact channels in a company over time without having to repeat the history of their interaction each time.

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Source: Elijah Ezendu, CRM

General Areas of Operational CRM

Sales Force Automation Customer Service and Support Enterprise Marketing Automation

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Key Tasks in Sales Automation

Sales Administration Sales Forecasting Lead Management Account Management Performance Management Tracking Customer Preferences Tracking Customer Demographics Contact Management Quote Management

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Customer Service and Support

Automation and Coordination (service requests, product returns, customer complaints, and enquiries). Services and support through contact center, call center, web portal, or face-to-face interaction at a remote location in the field.

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Enterprise Marketing Automation

Application of technology to marketing processes. Information pertaining to industry trends, macro-environmental factors and competitors. Facilitates appropriate engagement and control of campaign management, event-based marketing, cluster customer segmentation, individual customer segmentation. Increasing marketing efficiency.
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Analytical CRM

Analyses customer data. Design and execution of targeted marketing & specific customer campaigns. Optimize marketing effectiveness. Analysis of customer behavior to aid product and service decision making. Management decisions. Prediction of the probability of customer defection.

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Applications of Analytical CRM

Financial Forecasting. Programme Evaluation. Price Optimization. Customer Satisfaction Evaluation. Customer Satisfaction Growth. Product Development. Fraud Detection. Risk Management. Contact Optimization. Sales Coverage Optimization.

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Impact of Analytical CRM

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Relationship Between Operational and Analytical CRM

Customer Touch Points Customer Data Back Office

Practice Strategy

Process Data

Operation al CRM

New Strategy

Analytical CRM

Source: Siddiqi, Akhgar & Wise, Framework for Implementation of CRM 5/5/12 Strategy in Retail Sector

Solution Providers

Siebel Integrated Retail Management Consulting Pvt. Ltd. S & S Tech World. V.O.I.P Solutions Arinal Info Systems Pvt. Ltd

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Security and Privacy-Issues

Customer data is lost or stolen. Employee access/limit issues. Hacking.

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Security and Privacy-solutions

Encryption of sensitive data. Providing the security foundation for critical data and applications. Protects critical data from both internal and external threats.
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KPIs in CRM

Compelling product & service offerings. Create and manage customer loyalty program. Improved customer service. Real-time info across departments and systems.
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Case Study-Landmark

Scale up existing loyalty program. Ability to earn loyalty points anywhere and burn it anywhere. Different group companies had their own pointof-sale systems. Collecting CRM data on a daily basis from locations; did not have dedicated IT personnel. Web-based module that connects to a POS database and transfer data to a central Oracle 5/5/12 database.

Contd.

Some group companies had POS systems with other databases.

Small application on each POS containing sales data and would be uploaded through a Web program to a central server.

Group loyalty program cards were issued with barcodes since scanners were already available 5/5/12

Contd.

Rs 20-lakh project, in November 2008. Java/Oracle Platform Launched in March 2009. Well received and achieved ROI soon.
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Thank you!
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