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CRM Practices in Retail Industry
Presented By:-Aditya SharmaAmeya KarveAnkur AhirKaustubh
ZinzuwadiaMaulik BuddhdevYaseer Khan
What is CRM?
• Information industry
• Methodologies, software & internet capabilities.
• Manage customer relationship.
• Organized and efficient manner.
CRM software for retail
Advantages of CRM
• Increase relationships with clients• Increase of sales• Reduction of sales cycle• Better communication channels• Create detailed profile• New selling opportunities• Provides better customer service
TESCOTESCO
CLOUD ARCHITECTURE
• Software as a Service:
• Platform as a Service:
• Infrastructure as a Service:
Shift in Data storage
• Physical storage devices
• Cloud storage
Background Note• The first store was opened in 1929 in Burnt Oak,
Edgware.• By 1930, around 100 stores were operating under the
Tesco label.• In 1948, the first self-service Tesco store was opened in
St Albans.• Gradually Tesco grew over 400 stores.• In 1960, Tesco began selling clothing, household
goods, fresh foods and groceries.• In 1968, Victor Value came under the company’s fold.• In 1974, Tesco began operating petrol pumps.
Continue…
• In 2001, Tesco acquired a 53% stake in Dunnhumby.
• In 2001, a host of new ranges of food products were launched.
• In May 2002 Launched 1st store in malaysia.• By mid 2003, Company was operating 2291
stores around the world.
Tesco - Pre CRM
• Tesco mass-customized the magazines by sending it to their customers.
• Every magazine had a unique combination of articles, advertisements related to its offerings and third party advertisements.
• Promotional coupons were distributed though this magazines.
Adoption of Strategies• In 1979, company successfully launched a price cutting
campaign named “ Checkout at Tesco”.
• In 1985, Tesco Launched the “ Healthy Eating” initiative which aimed at conveying the nutritional value of the company to the customers.
• In 1990, Tesco came with three new formats stores, Tesco Metro: To serve local community of region,
Tesco Express: Combination of petrol pump & convenience store,
Tesco Extra Store: Hypermarket focused equally on food and non food merchandise.
Reason for adopting CRM
• Inappropriate management• Insufficient customer data• Low level of customer satisfaction• Maximizing the channel sales• Simplify inventory management• Advance reporting• Strengthen workforce management
CRM Software at Tesco
• Software Vendor:-RightNow• Software Name:-Tesco Direct• RightNow was individual indentity when it was
purchased by Tesco.• On December,2011 RightNow was overtaken
by Oracle.• Tesco Direct is the software which was
customized only for Tesco.• Price-90,000 £
TESCO CRM IMPLEMENTATION
• Video to be attached here.
Tesco-Post CRM• 1993-94 - Tesco launched the “First Class Service”.• 1994 - Company launched the “One on Front” scheme to
reduce the time of customers at check-out counters.• Tesco store personnel ensure that if there was more than one
person at any counter will lead to open for the person second in line.
• 1994 - Tesco began tied up with Dunnhumby.• 1995 - Tesco launched the Clubcard Loyalty scheme.• In this way Company started collecting the database of
customers like name, add, dob, e-mail etc.• 2000 - Company tied up with a Safeway Inc to launch an
online grocery shopping services
• With the help of data mining they analyzed the data and classified the customers into four broad categories:1) Premium2) Standard3) Potential4) Uncommitted.
• Customers were categorized along dimensions such as value, convenience, frozen, healthy eating, fresh and kids. • Tesco began giving many special privileges, such as Valet parking and personal attention from store managers to customers.• Instance: “Tescooters” (scooters) were purchased by the thailand customer and it was delivered to their home.• With www.tesco.com company emphasized on E-commerce.• Special cards were created for mothers.• Special attention given to expectant mothers in the form of personal shopping assistants.
• Sales have increased by 52% and still growing at a rate higher than the industry average within 5 years.• Floor space increased by 150%.• In the online space, tesco.com boasts 500,000 transactions weekly, totaling nearly two billion pounds in sales each year.• RightNow will also provide customers and in-store customer service employees with the opportunity to self-serve via Tesco Direct.• RightNow will support Tesco Tech Support’s customer care goal by giving them a single view of its customers enabling them to understand exactly why their customers contact them, helping them to respond accordingly.
• It will also empower agents and employees to respond to queries consistently and help customers to find answers to their questions via the web.
• “SaaS is the simplest and safest way to store the knowledge.• Clubcard holders receive one point for every £1 (1 point for every
£1 ) they spend.• Holders can also get extra points on special offers and receive one
"Green Clubcard Point" for every carrier bag they re-use as part of Tesco's green initiative.
• These can be used to obtain discounted day trips, magazines, hotel breaks, restaurant tokens and other offers.
• 2009-As part of the Clubcard 2 launch, it was announced that, from 17 August, all instore and online purchases would attract double points (2 points per £1).
• 2009/10-Reports indicate that this initiative was successful in increasing the number of active cardholders from 14 million to 15 million in the market year Examples of available brands are Monarch Airlines scheduled flights
• 2014-Tesco launched a new money saving offer for fuel. The Tesco Fuel Save means customers can earn up to 20p off every litre of fuel. For every £50 spent in Tesco Stores or Tesco.com, customers receive 2p off every litre of fuel.
• Tesco have recently launched both an iPhone, BlackBerry, Android (operating system) and a Nokia Ovi applications so points can be collected by presenting a barcode on the handset instead of a keyfob or card.
Tesco used the info.Tesco used the information generated by the Clubcards in following ways:
• Pricing• Merchandising• Promotions• Customer Service• Media Effectiveness• Customer Acquisition• Market Research• Customer Communication.
CRM
Reliance RetailReliance Industries Ltd.
"Growth has no limit at Reliance. I keep revising my v
ision.Only when you can d
ream it, you can do it."
Dhirubhai H. AmbaniFounder Chairman Reliance Group December 28, 1932 - July 6, 2002
Different Retail sectors in Reliance
• Reliance Industries Limited• Reliance Fresh• Reliance Trends• Reliance Mart• Reliance Petroleum• Reliance Jewel
Pre CRM at Reliance• Personal contact numbers
• Policy less followed in small towns
• Common policy for Reliance Fresh and Reliance Mart
• Delay in processing of membership cards
• Long queues at billing counters
Measures taken
Inform through SMS Regional policy adopted
Feedback callingMore new technologies adopted
CRM Software at Reliance• Software Vendor:- SAP• Software Name:- MySap, SAP R/3• Software was purchased in 2002 at the cost of
60 lakhs.
• Note – CRM Software for Reliance Communication and Reliance Finances – Clarify eFront Office (Amdocs Company).
SAP in Reliance
• MySap software record and store information about customers, various customer interactions, their problems etc which can be accessed by employees in different departments of the company.
• These information are used by the organization to make future plans that can satisfy the customer on a better way and retaining them for a longer period.
VARIOUS ASPECTSCRM includes many aspects which relate directly toone another:
• Front office operations — Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc.
• Back office operations — Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance, manufacturing etc.)
CRM Policy Of Reliance The customers also get the opportunity of availing four
different kinds of insurance on the payment of a nominal fee.
For example a customer can get an accidental death insurance offers six lakhs on the payment of Rs. 400 only. Other forms of insurances are disability, hospitalization and home insurances.
The members of reliance one get the opportunity of taking part and winning prizes by the way of lucky draws on regular intervals.
CRM Strategy
CRM policy of reliance can be divided into four broad category in every sector:
1) Customer Loyalty2) Customer Retention 3) Customer Communication4) Customer Gratification
Customer LoyaltyVarious measures taken for attraction to drive loyalty:
1) Opportunity of taking part and winning the prizes by the way of lucky draws on regular intervals.2) The point system which provides one point for every100 Rs purchase.
Customer Retention
• This is practiced at the zonal level.• Discounts which prove to be helpful in
generating revenues are repeated in future again.
• Complaint management and grievance handling system at customer service desk which increases the satisfaction.
Customer Communication
• Regular offers are communicated through e-mails and sms to Reliance One members.
• They try and create database while organizing of various special events in the store.
• Festive cards and other occasional cards are regularly sent to Reliance One customers.
• Gift vouchers and discount coupons gives the feeling of “care”.
CRM Creative Concepts
Reliance One Membership
• Customer will get 1% point of his purchase amount .
• Free 50,000 Rs “Accidental Death Insurance”.
• Earning Reliance One points on your all purchase at Reliance retail stores.
• Bonus Reliance One points even on everyday essentials.
• Invites to exclusive events.
CRM Direct Mail Triggers
Home DeliveryInstallation
Home Demo
RepairReplace Service
Exchange
Complaint
Purchase
PurchaseIntent
Customized NewOffers & Events Launches
Resolve
SpecialOccasion
Home Solution Home mapping Apology Offers Win-back Wish CardsProduct Catalog Getting-to-Know Satisfaction Feedback Satisfaction OffersOffers Cross-Sell Feedback
Service SolutionsFeedback
CRM Reward Points : Earn RationaleOption 1
for every
Rs100spend
you get
=1point
=worth
1rupee
Option 2
Recommended
for every you get
Rs100=1spend point
worth= Xrupee
Option 3for varying you get worth
spend X = 1=point
Xrupee
CRM MySAPCRM
Supports customer-related processes from end to end- all customer-related tasks across departments integrating invoicing, shipping, etc.
Provides customer intelligence across the enterprise- customer data for faster and better decision making
Delivers immediate value- Enables you to address strategic priorities
CRM MySAPCRM
CRM MySAPCRM Identifying biz target gaps
CRM MySAPCRM Final campaign effectiveness = 80%
Comparison• Lack of adoption of CRM software by
employees.• Poor communication• Advance reporting• Work force management• Inventory management• Customer Centric view
Difference between TESCO AND RELIANCE
TESCO RELIANCEClubCard RelianceOne
Single day Delivery Irregularity in delivery
Online purchase with dedicated apps Online purchase but no dedicated apps
Hosted Servers No such servers
Valet parking for Club Card holders Generalized FCFS based.
Future Trends in CRM
• Products in accordance with customer’s mindset.
• More action than transaction.• Smart shopping.• International players• Social CRM
THANK YOU