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1. Retailing and CRM
2. RetailingRetailing is a distribution channel function, where
oneorganization buys products from supplying firms ormanufactures
products themselves, and then sells thesedirectly to
consumers.
3. Forms of Retailing Convenience stores Discount stores
Factory/company outlets Specialty stores Supermarkets Department
stores Hypermarkets
4. 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. Long supply chain. Working capital intensive. Generating
employment opportunities.
5. 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.
6. 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.
Organized: Modern retailing. Offers variety of products (quality,
value for money). Shopping a memorable experience.
7. 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.
8. Factors for Business Growth Rising urbanisation. Growing
consumer class. Growing per capita expenditures. Economic growth
Growing spread of plastic money. Changing face of Indian
consumerism from necessities to luxuries. Rising number of nuclear
families. Growing female working population. Developments in the
real estate scenario. 50% of country populace under 25 years of
age; prime driving factor for modern retail sector.
9. There is only one boss. The Customer!He can fire everybody
in the company, from the chairman on down, simply by spending his
money somewhere else. -Sam Walton, founder of Wal-Mart
10. Indian Customers Time killers: Moves around & covers
lot of store; spending less time; waiting for someone; no intention
to buy; Zero conversion 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 time killers;
non-focus interaction with product; 2% conversion rate. Pleasure
Seekers: Spends long time; easily influenced; urgency; 79%
conversion rate.
11. Characteristics of Customers High disposable income. Price
sensitive. Value for money. Educated.
12. Major Organizations of the SectorName Sales Turnover (cr)
Market CapPantaloon Retail 4097.43Shoppers Stop 1712 3012.03Trent
716.71 2360.15Kewal Kiran 236.62 894.86Brandhouse 737.45
69.15Koutons 535.55 59.73
13. Customer Retention-Retail Discount pricing. Attractive
variants of products and services. Loyalty programs. Offers.
Attractive service.
15. CRM Penetration Organized: Single-brand retailers operating
in state, national, & international platform. Multi-brand
retailers operating in state & national platforms. How many of
them have CRM?? How many of them are having CRM and using it better
and not using it?
16. Process FlowReceiving After the Enquiring Directing
Verifying Billing Escorting salescustomer servicing
18. 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.
19. Blog Wiki Email Phone Snail Mail Physic Web al Personal
CustomerMedia Touch Fax Points Source: Elijah Ezendu, CRM
20. General Areas of Operational CRM Sales Force Automation
Customer Service and Support Enterprise Marketing Automation
22. Customer Service and Support Automation and Coordination
(service requests, product returns, customer complaints, and
enquiries). Services and support (contact center, call center, web
portal, or face-to-face interaction at a remote location in the
field).
23. 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.
24. 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.
26. Impact of Analytical CRM Customer Customer Customer
Acquisition Retention Information Cross-Selling Retain Offer key
Up-Selling current information to customers customers
effectively
27. Relationship Between Operational and Analytical CRM
Customer Touch Points Customer Data Back Office Practice Process
Strategy Data Operationa Analytical l New Strategy CRM CRMSource:
Siddiqi, Akhgar & Wise, Framework for Implementation of CRM
Strategy in Retail Sector
28. Security and Privacy-Issues Customer data being lost or
stolen. Employee access issues. Hacking. Misuse of data.
29. 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.
30. KPIs for CRM Compelling product & service offerings.
Create and manage customer loyalty programs. Improved customer
service. Real-time info across departments and systems. Advanced
security of client data. Customer lifetime purchase value. Customer
purchase value.
31. Future Trends in CRM Products in accordance with customers
mindset. More action than transaction. Smart shopping.
International players. Social CRM
32. Case Study-Landmark Scale up existing loyalty program.
Ability to earn loyalty points anywhere and burn it anywhere.
Different group companies had their own point-of-sale systems.
Collecting CRM data on a daily basis from different locations; did
not have dedicated IT personnel. Web-based module that connects to
a POS database and transfer data to a central Oracle database.
33. 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.
34. Contd. Rs 20-lakh project, in November 2008. Java/Oracle
Platform. Launched in March 2009. Well received and achieved ROI
soon.