customer relationship management in retail

1. CRM In Retail Industry
Presented by:
Pooja Choudhry (43-2016)
Radhika Gandotra (45-2016)
Vidhu Arora (65-2016)

2. Earlier, Retailer took Customers for granted
(because at that time customers were not demanding)
But Today, There is a Radical transformation i.e.
changing Business Environment
Now, Customers are more demanding, more knowledgeable
More Emphasis is given on Value & Quality of Purchase
This made Today’s Retailer shift from
Traditional marketing to Modern Marketing
& building strong relationship with their Customers.
Thus, CR becomes an essential tool in Retailing

3. Introduction to CRM
• Customer relationship management (CRM) is a comprehensive
strategy to manage a company's interaction with current and
potential customers.
• It aims to establish long lasting and mutual relationship with
customers which will increase Customer value and optimize
profitability
• Various CRM programs have been developed which can
contribute an economic value to the company and gives
Competitive Advantage to improve customer services.

4. CRM Software Revenue (millions of US dollars)
CRM Market Revenue reached $27.5 B in 2015, up from $23.8 B in 2014 , $36.5 B
in 2017. The analyst forecast the CRM market reaching $46.4 B by 2019
So, Each year there is an increment in the CRM Software Revenue Forecast

5. Aspects for CRM
1. CUSTOMER SATISFACTION
2. CUSTOMER RETENTION
3. CUSTOMER LOYALTY
4. CUSTOMER COMPILE
INFORMATION

6. Necessity of CRM in Retailing
• To know their customer’s needs & wants in a
customize way _
• By continuously maintaining communication
with customer, retailer can know their changing
demands & can bring innovative products.
• To record Customer purchases
• To deliver the desired products quickly in the
hands of their customer _
• Gives Information regarding P/S or discount
being offered.
• By applying CRM , a retailer can know there
most profitable and less profitable customer_
Retailer use CRM concept to the following reasons:

7. HOW RETAILER BENEFITED BY CRM
• If there is a strong relationship between a retailer and a customer
then Retailer generates no. of benefits by CRM:
1. Generate Maximum Sales -by repetitive purchase of Loyal
customer
2. Greater sales ensures Maximum profit level
3. By applying CRM concept , Retailer can ensure Customer
Satisfaction which lead to + WOM_
4. Cross selling- (Technique in which Retailer suggest additional P/S to loyal
customers during a buying process to increase revenue)
5. By using CRM ,Retailer can protect customer in competition i.e.
Loyal customer stay close to retailer even if they don’t get
appropriate P/S

8. In order to satisfy a customer and retain them for
longer period of time,
1. Person-to-Person experience
2. Store experience
3. Marketing and communication
4. Price and value
Top satisfaction drivers for building strong relationships

9. Process of CRM in Retail
• CRM is an iterative process that turns customer data into customer loyalty
through different type of activities. Levy and Weitz described CRM in
retailing through a systematic process -

10. Collecting Customer Data – by constructing a
customer database or Customer data warehouse
• Customer Database
Histories of purchases
Customer contact
Customer preferences
• Approaches for collecting Information
Asking for information
Using frequent shopper card and credit card
information

11. Analyzing Customer Data & Identifying
customer Targets– by analyzing customer
database &using the information retailers develop
programs for building customer loyalty
• Techniques to analyze Customer-
Data Mining
Market basket analysis
Identifying market segments
Identifying best customers –
Lifetime value
Customer Pyramid Approach
RFM analysis( Recency, Frequency, Monetary)

12. Developing CRM programs
• Retaining the best customer (Customer retention)
Providing incentives or discounts
Special customer service
Personalization
Informal communication
• Converting good customers into best customers
Cross selling
Add-on selling
• Dealing with unprofitable customer

13. Implementing CRM programs
• Stage 1 – Collecting information
• Stage 2 – Storing information
• Stage 3 – Accessing information
• Stage 4 – Analyzing consumer
behavior
• Stage 5 – Marketing more effectively
• Stage 6 – Enhancing the customer
experience

14. Reasons for CRM implementation
failure in Retailing
• Customer Focus
• Weak management
• CRM Project Management
• Team members
• Data & Warehouse Requirements

15. Suggestions for successful CRM
implementation in Retailing
• More emphasis on customer satisfaction
• More use of IT to collect information timely
• Retailer should be flexible to bend its rules &
procedures in the customer favor
• Retailer need to focus on informal relationships &
communications with customers
• Retailer must know the drivers for customer
satisfaction and dissatisfaction
• Retailers need to develop training programs to
understand CRM process and serve customers better

17. New Trends in CRM
• Products in accordance with customer's
mindset.
• Multi-channel CRM
• Smart shopping
• Mobile CRM
• E-mail marketing and CRM
• Mash up CRM
• Social CRM

18. Multi‐Channel CRM

19. Mobile CRM

20. What s Good about Email Marketing
•Highly targeted
• Immediate
•Measurable
•Reach
•Cost Effective
Email Marketing and CRM

21. Mash‐ups to CRM
A mash‐up is a web application
that combines data from more
than one source into a single
integrated view.
Content used in mash‐ups is
typically sourced from a third
party via a Widget or API (web
service).
Minimized application data
management
Reduced development effort
Make CRM SMARTER

22. Social CRM

23. Need of CRM
•Changes in the Business Environment
•Customers becoming more demanding
•Markets are saturated
•Databases today are huge:
•More than 1,000,000 entities/records/rows
•From 10 to 10,000 fields/attributes/variables
•Gigabytes and terabytes
•Databases are growing at an unprecedented rate
•Decisions must be made rapidly and with maximum knowledge
•Extremely large datasets
•Useful knowledge that can improve processes
•Sophisticated data search capability that uses statistical
algorithms to discover patterns and correlations in data.

24. Pre CRM vs Post CRM

25. Conclusion
• CRM today has become the synonym to success in business.
The retailers can effectively achieve it, if they identify the
opportunities to enhance customer value.
• Retailers can personally create programs and develop
products for each individual customer.
• In order, to create a healthy Customer-Retailer bond,
customer satisfaction and loyalty will lead to customer lifetime
value and retention in the long-term relationship with each
other.
• Thus, both will have a profitable and sustainable achievement
at the end of the day.