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DISSERTATION ON

ROLE OF CRM IN CUSTOMER RETENTION


AND ACQUISITION OF CUSTOMER
Synopsis submitted in partial fulfillment of requirements for
Bachelors of Business Administration
(Financial Services And Marketing)

Mentors Name-

Dr.Vipul Sharma
COURSE COORDINATOR of BBA (FSM)
UPES- Dehradun
Submitted by-Nandini Gupta

SAP ID-500035380
Enrolment Number: R128214016
BBA FINANCIAL SERVICES AND MARKETING
2014-2017
College of Management & Economics Studies, UPES
DECLARATION

I declare that the work embodied in this dissertation, entitled ROLE OF CRM IN
CUSTOMER RETENTION AND ACQUISITION OF CUSTOMER , is the outcome
of my own work. It contains no material previously published or written by another person
nor material which has been accepted for the award of any other degree or diploma of the
university or other institute of higher learning, except where due acknowledgment has been
made in the text.

I declare that the dissertation comprises only of my original work and due acknowledgement has
been made in the text to all other material used.

Signature & Name of Student

NANDINI GUPTA

SAP ID: 500035380

ENROLLMENT NO. R128214016

BBA (FSM)

COLLEGE OF MANAGEMENT AND ECONOMIC STUDIES, UPES


CERTIFICATE

This is to certify that the research work entitled ROLE OF CRM IN CUSTOMER
RETENTION AND ACQUISITION OF CUSTOMERS is the work done by under
my guidance and supervision for the partial fulfillment of the requirement of Int. BBA
College of management and economic studies, University of Petroleum and Energy
Studies, Dehradun.

Signature & Name of Supervisor

Designation

Date
ACKNOWLEDGEMENT

I, Nandini Gupta student of BBA Financial Services and Marketing,6th Semester, College
of Management and Economic Studies, The University of Petroleum and Energy studies
have made this dissertation on ROLE OF CRM IN CUSTOMER RETENTION AND
ACQUISITION OF CUSTOMER

The research has been collected largely from secondary sources of information and the data
has been collected from from different sources like international treaties, websites, books,
commentaries, journals, newspapaers and articles etc.

I would like to thank my mentor Dr.Vipul Sharma for his guidance and support and would
even like to thank my friends for their suggestions.
TABLE OF CONTENT
Executive Summary

1.Introduction
1.1 Customer Relationship Management (CRM)
1.2 Customer Retention
1.3 Principle of the study

2.Objectives of the study


2.1 Title of the study
2.2 Purpose of the study
2.3 Scope of the study

3.Literature Review
3.1 Historical Background
3.2 Components of CRM
3.3 Goals of CRM
3.4 Elements of CRM
3.5 Customer Value
3.6 Customer satisfaction
3.7 Customer Loyalty
3.8 Customer acquisition

4.Research Methodology
4.1 Research Design
4.2 Data Collection

5.Limitations

6.Conclusion

7.References
Executive Summary

The purpose of this study is Effect of Customer Relationship Management process in


Customer Retention. It describes the objectives of Customer Relationship Management
(CRM) in Customer Retention, which is very important for the survival of companies in
today competitive environment.

Today, "CUSTOMERS" are very important factors in companies management with the
power to change their short-term and long-term polices and strategies. Therefore enough
knowledge of environment, expectations of customers and their desires are very important
to find the best solution for facing un-expected behaviors of customers and then behave
in such a way to change the mind of customers in the direction of companies' profit.

It's an art to absorb customers by using different techniques such as CRM in order to
manipulate companies' policies a head of them. CRM can be perfectly defined as a process that
addresses all aspects of identifying customers, creating customer knowledge, building
customer relationships, and shaping their perceptions of the organization and its products.
INTRODUCTION

1.1 Customer Relationship Management (CRM)


"In any business, clients are the most essential part of a fruitful organization and the clients
must be taken care of and oversaw appropriately. Numerous extensive organizations are
putting resources into relationship administration, otherwise called CRM.

CRM helps the organization by demonstrating to them the right systems and
procedures for taking care of a client appropriately. There is client relationship
administration or CRM programming accessible which and no more fundamental level will
give the business staff profitable data about the client contact that will make the client feel
extremely extraordinary, for example, recalling kids' names or birthdays. The entire client
relationship administration or CRM methodology does not depend exclusively on the
establishment of CRM programming yet the hypothesis must begin from the beginning with
the workers first. The workers must be prepared on the client relationship hypothesis to get
the best from the client relationship administration." Relationship implies cooperation must
take between atleast two gathering and a specific level of coherence must be there. The
impacts of connections are reliant upon the real occasions and the subjective approach of
these occasions

Client Relationship Management (CRM) has today turned into a topical territory of intrigue
particularly with the onset of internet business. As CRM is a term utilized as a part of an
expansive way, there is likely a requirement for the showcasing expert to comprehend what it
is, its effect on the association (not simply on the promoting viewpoints), its materialness to
an association and its advantages to clients. There is a need to comprehend that CRM is a
general procedure for the association and not only a business instrument with a transient
introduction. CRM requires a long haul plan, and anything long haul requires a solid
authoritative duty and proper speculation.
CRM is a relationship procedure which an organization can develop with its client
bunches/sections such that it would profit both the client and the organization. The pre-
essentials of any CRM modified are:

An eagerness from both the organization and the client to remain focused on the relationship
which depends on shared advantages. This is required on the grounds that authoritative
procedure changes may must be started in both associations and consequently beat
administration must be persuaded about CRM in both the organizations (if there should arise
an occurrence of business-to-business showcasing setting).

An eagerness with respect to the advertiser to put resources into a framework that can
execute and work CRM. The framework could incorporate online equipment/programming
which could viably outfit the upsides of CRM.

Client Relationship Management (CRM) is to make an upper hand by being the best at
comprehension, conveying, conveying, and creating existing client connections,
notwithstanding making and keeping new clients. CRM, for a few, implies balanced
advertising while for others a call focus. Some call database showcasing as CRM. There are
numerous other people who allude to innovation arrangements as CRM. Assuming this is the
case, what is CRM?A prepare that addresses all parts of distinguishing clients, making client
information, building client connections, and forming their view of the association and its
item. What's more, as indicated by metagroep (2000) "The robotization of on a level plane
incorporated business forms including front office client contact focuses (advertising, deals,
administration and support) by means of different, interconnected conveyance channels".

Shippers and merchants have been rehearsing client relationship for a considerable length of
time. Their business was based on trust. They could modify the items and all parts of
conveyance and installment to suit the prerequisites of their clients. They gave careful
consideration to their clients, to know their tastes and inclinations, and they have kept up
individual contact with the greater part of them..

These relationship arranged practices have changed because of progress in modern


insurgency. Associations has embraced large scale manufacturing, mass correspondence and
mass appropriation to accomplish economies of scale. Makers had begun giving more
concentrate on assembling and proficient operations which help in cutting the cost. Middle
people which incorporates merchants, wholesalers and retailers have taking the
responsibilitiesof warehousing, transportation, dissemination and deal to conclusive clients.
This came about ingreater efficiencies and furthermore encouraged in bringing costs down to
makers yet has made a hole amongst them and clients. This mostly bring about decreasing
direct contact with clients which prompts negative effect on both the association and
additionally clients.

The post-modern time saw the re-development of relationship practices.

(a) Rapid propels intechnology,

(b) Intensive rivalry in

(c) Adoption of aggregate quality managementprograms

(d) Growing significance of the administration area

Innovative Advancement

Innovative advancementhave helped advertisers come nearer to their clients. Firms working
in assorted divisions going from bundled merchandise to administrations began utilizing
these advancements to discover their clients, take in more about them, and after that fabricate
more grounded bonds with them through incessant associations and satisfying their needs
and needs as per there inclinations. Innovation additionally empowered requesting and item
utilize relatedservices.

Escalated Competition

In aggressive markets, uncommonly the ones that were developing and seeing moderate or
no development, advertisers thought that it was more gainful to concentrate on their current
clients. Considers have demonstrated that it costs up to 10-12 times more to pull in another
client than to hold a current client. Advertisers now a days have begun concentrating more on
the lifetime estimation of their clients. They are advancing and are not just centered around
pitching items and administrations to their clients. They need that if a client visits them and
buy something he/she ought to visit again in future and turn into an unwavering client
towards that specific association. This has prompted a relationship introduction which makes
chances to strategically pitch items and administrations over the lifetime of the client.

Developing Importance of the Service Sector

As per the sources the administration segment adds to more than two-third of the GDP of
most exceptional economies. In India, the administrations segment adds to more than 50 for
every penny of the economy. One of the element of the administration businesses is the
immediate communication between the advertiser and the purchaser. In administrations, the
supplier is typically required in the generation and in addition conveyance straightforwardly.
For instance, proficient specialist organizations like a specialist or advisor are
straightforwardly required underway and in addition conveyance of their administrations.
Essentially, the clients are straightforwardly required underway in the buy and utilization of
these administrations. These immediate contacts make open doors for better understanding, a
superior valuation for requirements and in addition imperatives and passionate holding all of
which encourage relationship building. Consequently it ought to shock no one when you see
the administration firms spearheading a hefty portion of the client relationship activities.
Firms working in the budgetary administrations, accommodation business, telecom, and
aircrafts are the early adopters and broad clients of CRMpractices.

Appropriation of aggregate Quality Management (TQM) Programs

Add up to quality administration programs help organizations to offer quality items and
administrations to its clients at the most minimal costs conceivable. To empower this
incentivized offer, associations required tolook intimately with their clients. Organizations,
for example, Intel, Xerox, and Toyota framed cozy associations with providers and clients to
hone TQM and they have done well.

Different improvements, for example, an expansion in the quantity of requesting clients,


expanded discontinuity of business sectors, and by and large abnormal state of item quality
constrained business to look for feasible upper hands. An upper hand is economical just
when it is not effortlessly reproduced. One such practical upper hand is the relationship that a
firm creates with itscustomers.

There are distinctive sorts of market. Some of them are clarified beneath:

1. Customer markets It includes existing and forthcoming clients too asintermediaries.

2. Referral markets This market includes existing clients who prescribe to different
prospects, and referral sources or "multipliers, for example, specialists who allude patients to
a healing center or an advisor who suggests a particular ITsolution,

3. Influence markets It includes government, shopper bunches, business press and


monetary experts.
4. Recruitment markets For pulling in the correct workers to theorganization.

5. Supplier markets Involves providers of crude materials, parts, administrations,


etc.,and

6. Internal markets - The association including inward offices andstaff.


DEFINING CRM

As defined above CRM is a process that addresses all aspects of identifying customers,
creating customer knowledge, building customer relationships, and shaping their
perceptions of the organization and its products.

A narrow perspective of customer relationship management is database marketing


emphasizing the promotional aspects of marketing linked to database efforts, Another
view point is to consider CRM only as customer retention in which bond with the
customer is maintained after the sale is done. A more popular approach with recent
application of information technology is to focus on individual or one to one relationship
with customer that integrates database knowledge with a long-term customer retention
and growth strategy.

It is a saying by famous market experts that attracting new customers should be viewed
only as intermediate step in the marketing process. Developing closer relationships with
this customers and turning them into loyal is an equally important aspect of marketing.
Thus, they defined relationship marketing as attracting, maintaining, and, enhancing
customer relationships.

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Figure 1.1 Shift in focus.

Traditional Marketing Focus Provider


Parity
Customer
Product Price Consideratio 11
Customer
n and
Satisfaction
Potentia
Loyalty,
Promotion Place l
and
Purchas
e
Value

Customer Experience Focus Customer


Differential
Marketing Sales
Interactions Interactions

Service Support
Interactions Interactions

BENEFITS OF CRM

Customers are benefited over a period of time:

Examines by the US-based Bain and Company demonstrates that a client turns out to be
more productive with time since when an association holds its client, it gets a bigger share
of the clients wallet at a higher benefit one percent expansion in deal to existing client
increment benefits by 17 for each penny while a similar measure of offer to new client
expanded benefit by just 3 for every penny. This enormous distinctive is clarified by the

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way that for most organizations the cost of procuring the client is high. It costs six to eight
times more to pitch to another client than to pitch to a current one. A similar review
likewise highlighted that an organization can support its benefit up 85 for each penny by
expanding its yearly client maintenance by just 5 percent Similarly, thinks about have
demonstrated that the likelihood of pitching an item to a prospect is 15 for each penny
while it is 50 for every penny to a current client. Along these lines, the time, the exertion
and the expenses of offering are much lower for an existingcustomer.

Customer likelihood is Skewed

An examination of the income and benefit commitment of client base of banks in the US,
Europe and Australia demonstrated the accompanying:

- The best 20 for every penny of the clients add to 150 for each penny of the benefits
while the last 20 for every penny deplete 50 for every penny of the benefits and the rest 60
for each penny just breakeven.

Encounters of Indian associations are on comparable lines. In an expansive open segment


Banks, the main 23 percent of the clients add to 77 for each penny of the incomes. Also,
the main 27 percentcustomers of a main wireless specialist organization adds to 75 for
each penny of the incomes.

The ramifications of such a skew in client productivity and income commitment are
startling for associations, which use to ordinarily treat 'all clients are equivalent'.

Promoting Benefits of CRM

CRM will bit by bit diminish association's reliance on intermittent studies to assemble
information. Gathering of information identified with purchasing and utilization conduct
will be a continuous procedure. Much of the time, the exchange information is
consequently gathered a few times ongoing as in the web based business exchange. This

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rich vault of client data and information refreshed through normal associations and real
client exchanges and buy conduct will help advertisers to create and showcase client
driven productssuccessfully.

Redone advancements based client inclinations and buy examples will significantly
decrease the inefficient use of mass correspondence and even direct mailing. As a
modified advancement are more centered and are based around a more profound
understanding of existing clients, they have a more prominent possibility of
transformation tosales.

Benefit Benefits of CRM

Look into discoveries directed crosswise over ventures as a piece of a Technical


Assistance Research Project (TARP) demonstrate that:

- 95 for each penny of the clients don't try to whine, they simply take their business
somewhere else.

- Most faithful clients set aside opportunity to gripe. This empowers the
item/specialist organization to enhance and guarantee that such slip-up do notrecur in
future.

- 70 for every penny of clients who gripe will work with an organization if the issue
happened is immediately explained by the organization.

Empowers FOR THE GROWTH OF CRM

This tremendous development of premium and interest in CRM over the globe can be
given to the accompanying large scale ecological components:

(a) Emergence to serviceeconomy,

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(b) Emergence of marketeconomy

(c) Global introduction of businesses,and

(d) Aging populace of the monetarily advancedeconomies.

Development of Service Economy

The development of administration economy is a worldwide marvel. In the US, the


administration area represents more than 75 for every penny of GNP and representatives
80 for each penny of the work drive. The administration part add to 60 70 for every
penny of the GDP of monetarily propelled countries of Western Europe, Canada and
Japan. The expanding commitment of administration part is notlimited to create nations.
Creating economies like China, Indonesia and Thailand utilize around 40 for each penny
of the work drive in the administration division. In the year 2001, the administration
segment added to 48 for each penny of GDP in India, 54 for each penny in Philippines and
33 for every penny in China. The normal yearly development rate of the administrations
amid the time of 1990s was 8 for every penny in India, 9 for every penny in China and 4.1
for each penny in Philippines (Statistical Outline of India, 2002 2003).

Development of Market Economy

Notwithstanding the move towards administration, there is a worldwide development of


the market economy. The power is more to the market as contrast with the controlled
economy. Advertise control was set up everywhere throughout the world including the
US, Europe, USSR, China and India. The1990s saw speeding up in the deregulation of
numerous substantial enterprises including saving money, media communications,
broadcasting and carriers over the world. Accordingly, advertise introduction firms
working seriously focused market now takes choice that was once controlled by the
administration. The concentration have moved from limit creation under control to the

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business sectors. Advertise arranged economy required a client center and supported the
significance ofCRM.

Worldwide Orientation of Businesses

National limits are offering approach to either a borderless world or atleast a territorial
world bringing about the rise of exchanging squares like North American Free Trade
Agreement (NAFTA), European Union and the Association of South East Asian Nations
(ASEAN). Progression of business sectors and exchange ended up being a far more
grounded development motor. It has steered the passage into remote markets. Firms
require more grounded client introduction to have the capacity to tab openings in new
markets while protecting themselves in their home markets.

Client Retention

Previously, many organizations underestimated their clients. They just concentrate on


offering the item that is it, they don't concentrate on building association with their
Customers, regularly did not have any option providers, or alternate supplies were
similarly as poor in a quality and administrations, or the market was developing so quick
that the organization did not stress over completely fulfilling its clients. An organization
could loses 100 clients seven days, however increase another 1000 clients and view its
deals as palatable. Such an organization, working on a " broken pail' hypothesis of
business, trusts that there will dependably be sufficient clients to supplant the abandoning
ones.[Kotler - p. 405]

Client maintenance projects can be a capable apparatus under CRM. Client maintenance is
essential to most organizations in light of the fact that the cost of procuring another client
is far more noteworthy than the cost of keeping up an association with a current
customer.[Ro King 2005]

For some organizations, client gainfulness is skewed such that losing the most productive

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clients has an intense effect.For example,in numerous banks,the beat 30 percent of clients
(when positioned by benefit) can make up 100-150 percent of aggregate client
productivity. Truth is stranger than fiction the last 80% of clients may give no productivity
or, more awful yet, obliterate 50 percent of gainfulness.

Notwithstanding sparing gainful clients, maintenance programs permit organizations to


gather information about their clients. This information can be utilized to better
comprehend, target, market to, and speak with clients or to modify future collaborations
with clients. Maintenance projects can be a moderately economical methods for making
clients feel uncommon, increment their buys and suggest prospects.

Clearly CRM is an essential piece of client maintenance. What can a CRM framework do
and what wouldn't it be able to do as to client maintenance? To begin with, we should
characterize CRM framework. Many firms imagine that when they buy a business compel
computerization framework or a client benefit mechanization framework they have bought
a CRM framework.

Be that as it may, a genuine CRM framework additionally requires the capacity to


accumulate information about clients, store that information in a configuration that is
anything but difficult to get to, dissect the client information, utilize this client data to
advertise or to speak with clients. Ordinarily, this implies a firm will utilize more than one
bit of programming to meet their investigative and operational CRM needs.

Regarding client maintenance, the suitable information catch, get to and investigation
framework empowers a firm to figure out which clients it is most inspired by holding.
Battle administration programming empowers the firm to focus on these clients and deal
with an assortment of offers to urge the clients to stay with the firm.

1. Customer Retention, BehaviourPrediction,

Client Retention

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Client Retention showcasing is a strategically determined approach in light of client
conduct. It's the center action going ahead off camera in Relationship Marketing, Loyalty
Marketing, Database Marketing, Permission Marketing, et cetera. Here's the essential
theory of a maintenance situated advertiser:

A. Past and Current client conduct is best to know Future client conduct: Think about it. By
and large, it is more frequently valid than not genuine, and with regards to activity situated
exercises like making buys and going to sites, the idea truly shinesthrough.

B. Active clients are glad (held) clients; and they get a kick out of the chance to "win."
They get a kick out of the chance to feel they are in charge and savvy about decisions they
make, and they jump at the chance to like their conduct. Advertisers exploit this by offering
advancements of different sorts to motivate shoppers to take part in a conduct and like
doing it.If you need your clients to accomplish something, you need to support them
without a doubt, and if it's something that makes them can rest easy (like they are winning
the purchaser diversion) then will probably do it. Holding clients implies keeping them
dynamic with you and drawing in them consistently in yourbusiness . On the off chance that
you don't, they will disappear and in the end never again be your general clients. Utilizing
different special devices energize this communication of clients with your organization,
regardless of the possibility that you are simply conveying a markdown coupon, bulletin or
birthday card to our clients. The primary trap is to keep them dynamic and glad to the
extent that this would be possible, and to profit doingit. This ought to be the fundamental
focus for any association.

C. Retention promoting is about: Action Reaction Feedback Repeat. Advertising is a


discussion, Marketing with client information is a profoundly developed and important
discussion, however it must be forward and backward between the advertiser and the client,
and you need to LISTEN to what the client is stating to you, what they need, which item
request is high in the market. For instance, suppose you lookat some normal client conduct .
You take a gander at each client who has made no less than 2 buys, and you figure the

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quantity of days between the first and second buys. This number is called "inertness" - the
quantity of days between twocustomer occasions. Maybe you observe it to be 30 days.
Presently, take a gander at your One-Time purchasers. In the event that a client has not
made a moment buy by 30 days after the main buy, the client is not acting like a "normal"
client who is taking dynamic part in the offers of association. The client information is
revealing to you something isn't right, and you ought to respond to it with an advancement
in the most ideal route like by reaching them, sending them rebate or limited time cards, in
short staying in contact with them and demonstrating to them that association really
considerations and needs you. This is a case of the information representing the client; you
need to figure out how tolisten, as listening assumes a more prominent part with regards to
building positive connection with the client.

D. Retention Marketing requires dispensing advertising assets. You need to understand


some advertising exercises and clients will produce higher benefits than others. You can
keep your spending level or psychologist it while expanding deals and benefits on the off
chance that you constantly allot a greater amount of the monetary allowance to
exceptionally productive exercises and far from lower benefit exercises. This doesn't mean
you should"get free" of a few clients or treat thempoorly.

It implies when you have a decision, as you much of the time do in promoting, rather than
spending a similar measure of cash on each client, you spend more on a few and less on
others. It takes cash to profit. Unless you get a tremendous increment in your financial plan,
where will the cash comefrom?

2. Customer Profitability and ValueModelling:

Firms have been keen on client gainfulness for a long time. In any case, around seven to ten
years prior, client productivity as a quantifiable segment of promoting truly began to
develop for three primary reasons. To start with, we now have the innovation that
empowers usto store a great many information focuses. Second, over the most recent ten
years the complexity in investigation and demonstrating has expanded many folds. These

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models permit us to transform client information into learning. The third impetus is the
push for showcasing to be more responsible. The accentuation on showcasing
measurements has incredibly expanded. An ever increasing number of chiefs are asking
themselves, how would we know we're getting an arrival on our advertising consumption?
Prior to these three changes, organizations focused on productivity just not on a client by-
client premise. The consideration and examination was centered around either item level
gainfulness or on wide client portions. Presently, due to expanded information stockpiling
and diagnostic and displaying capacities, we can bore down to client level detail. Also, as a
result of the requirement for advertising to be more responsible, we know we have to. At an
opportune time, CRM programs basically gathered information at the client level. There is a
tremendous distinction amongst that and changing over CRM-based information into client
gainfulness.

The main central segment for understanding client by client benefit is to know the income
and the expenses for every client. Be that as it may, most organizations' bookkeeping
frameworks don't distribute costs on a client by-client premise. To transform CRM
information into a client productivity display, an organization must change from action
based cost bookkeeping to client based cost bookkeeping. This implies distributing costs by
clients. The second part is to move far from a brand administration center to a client
administration center. In a brand administration display at a bank, for instance, one director
oversees contracts, other financial records, and other Mastercards. The supervisors don't
know how any one client communicates over the whole business. For every item, a client
might be a low esteem client, however he might be extremely significant over the whole
association. However in light of the fact that the brand directors can't know this, they may
under-put resources into the client. On the off chance that the bank took after a client chief
model, in any case, the client's actual esteem would be evident and could be overseen
likewise. It's essential to have the capacity to change the concentration so that brand or
property or departmental chiefs don't oversee clients and their data, yet rather, the focal
association of the organization does. The genuine reason is the
pushformarketingtobemoreaccountable.Thetypicalresponseofamarketingmanagersed to be,
"I will enhance consumer loyalty." Knowing consumer loyalty levels is fine and imperative,

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however it's no sufficiently longer. Presently senior administration needs to know the
arrival on that venture so they can see precisely the amount they ought to spend to enhance
fulfillment. Income originates from clients purchasing items. On the off chance that you can
esteem one client, you can esteem the whole client base of an organization. At that point
you can extend at what rate the organization is getting clients and at what rate they are
clearing out. Consolidating those parts empowers an organization to determine the
anticipated estimation of the client base, which ought to be near the estimation of the firm.
Our exploration demonstrates that client esteem gives a solid intermediary to market
estimation of a few firms. Presidents and senior administration both think about the market
estimation of the firm. Normally advertise esteem is assessed as reduced income. The basic
part in this approach is the projection of future income. What is the reason for anticipating
income?

A typical approach is to use past information for this projection Marketing adopts a base up
strategy. Our commence is that income is an aftereffect of clients purchasing items. In this
way, we can extend income and manufacture a definitive estimation of the organization
from the base up by taking a gander at every client as a building square. Verifiably, when
promoting discussed client productivity, the thought was "How would I offer some benefit
to the clients? How would I make my item more important to the client?" What client
productivity discusses is the other side of client esteem which is the means by which
significant the client is to the organization. So you can consider it two measurements how
would I offer some benefit to the client and how does the client offer some benefit to me?
On the off chance that I don't offer some incentive to the client, he won't purchase anything.
Then again, in the event that he doesn't offer some incentive to me, then would it be a good
idea for me to spend profitable assets on seeking after his business? In promoting, we say
the client is the lord

which we need to offer some incentive to the client. In back, money is above all else
what amount of significant worth do I get from this specific client? Client gainfulness unites
these two measurements? Income is simpler to track since it takes a gander at how much a
client really gives an organization. Client cost is a harder measure to track on the grounds
that most organizations' bookkeeping frameworks were not intended to track client by-client
costs.Unfortunately, this implies obtaining and advertising expenses are assembled together

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and found the middle value of. Gradually, organizations are starting to apportion costs by
clients since they can perceive how often a client uses an ATM or regular customer cards et
cetera

1. ChannelOptimization

Putting the energy of prescient investigation directly under the control of advertisers,
Channel streamlining is an application for crusade improvement and execution. Channel
enhancement utilizes propelled strategies to build the productivity of battles. The application
helps advertisers decide to whom to send offers, which offers to send, when to send them
and which channels to utilize. The goal is to improve client focusing over numerous battles.
Dissimilar to conventional showcasing effort approaches, which concentrate on picking the
best clients for each battle, Channel improvement advances over the whole arrangement of
crusades, and chooses the best one for every client. This client centered approach can bring
about 25 to 50 percent increments in battle income. Prescient examination conveys a critical
potential for standard business procedures, for example, promoting and deals. The most
critical element that will decide the accomplishment of prescient investigation is the
capacity for business clients to send these examination in their everyday exercises and fuse
the outcomes specifically into the moves they are making. Organizations can utilize
different direct channels - standard mail, call focus and the Web - to showcase itsproducts.

Cross-Campaign Optimization - Combining prescient examination and propelled business


rationale, Channel streamlining empowers advertisers to expect how singular clients will
react to particular battles and channels, and figures which crusades will give the best
income. Amid battle creation, clients can perform consider the possibility that investigations
by including business guidelines, for example, particular deals targets or spending
limitations, to instantly observe the effect on crusade costs and incomes. Cross-
ChannelOptimizaChannel enhancement produces crusades for every single outbound
channel, for example, post office based mail, email and the call focus, utilizing prescient
investigation to choose the best channel for every client, from both a client and cost
perspective. The application will naturally choose reinforcement channels when the limit of
a channel is surpassed, to guarantee fruition of the crusade. Requirement of Customer

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Contact Restrictions implements inner contact confinements and connection arrangements,
for example, "don't call" records, guaranteeing that clients are not over reached or reached
through limited channels. These confinements are authorized over all crusades and channels.

Occasion Driven Campaigns - The application screens singular client conduct to recognize
changes or "occasions" that demonstrate a neglected need or potential loss of significant
worth, and afterward chooses the best battle for every specific circumstance. Accordingly,
clients get convenient offers that address their real needs.

Consistent Integration - As a supplement to a current crusade administration framework, it


will empower advertisers to enhance their battle comes about. While the application can
bolster each progression of the crusade administration prepare, it will flawlessly incorporate
with existing effort administration frameworks and procedures, and existing showcasing
databases or information distribution centers.

Advertisers have frequently needed to depend on a hit-or-miss way to deal with crusade
administration, which means offers are regularly focused on too comprehensively, while the
manual way to deal with client choice makes executing various battles complex, tedious and
difficult to get right. Channel enhancement adds a robotized accuracy to client contact that
enhances singular battle viability and scales to extensive client bases and complex, multi-
crusade operations. The application permits advertisers to use their business information and
skill, yet it removes the mystery and hazard from promoting efforts, empowering more
prominent proficiency, adequacy andprofitability.

8. CRM and CustomerService

Client administration is the arrangement of work and different assets, with the end goal of
expanding the esteem that purchasers get from their buys and from the procedures paving
the way to the buy. With the rising predominance of the administration division in the
worldwide economy, client benefit has developed in significance, as its effect on people,
family units, firms, and social orders has turned out to be across the board. As a database

25
advertiser, you comprehend that a few clients introduce considerably more noteworthy
benefit potential than others. Be that as it may, in what capacity will you locate those high-
potential clients in a database that contains several information things for each of a great
many clients? The cutting edge idea of client administration has its underlying foundations
in the expert economy of the 1800s, when people and little gatherings of makers contended
to deliver expressions and specialties to take care of open demand. The appearance of large
scale manufacturing in the mid twentieth century, trailed by a blast in the interest for
products after World War II, expanded the energy of providers to the detriment of shoppers,
and in this way diminished the significance of client administration. A move in this adjust
started in the 1970s, as worldwide rivalry expanded, and the strength of western makers was
tested, first by Japan, then by Korea, China and other creating economies. Makers reacted by
enhancing the nature of their items and administrations. The monetary blast of the 1990s
again expanded the energy of providers who, while not totally returning to settle for the
easiest option of administration, could be more specific of which clients to serve, and of
what levels of administration to give. The general nature of client administration - in the
public arena and in particular businesses - will keep on being controlled by the relative
adjust of energy amongst providers and buyers; it will enhance as rivalry turns out to be
more serious, and decrease as competitiondecreases.

Key favorable position

An organization can beat equals just in the event that it can set up a distinction that it can
save. Client administration can be such a distinction. It is extremely hard to control, and in
this manner hard to emulate. It is hard to control in light of its fluctuation. The level of
administration may fluctuate significantly between two suppliers in a similar association. It
might likewise shift starting with one minute then onto the next, even as conveyed by a
similar supplier. The difficultycompounded in multi-unit operations: notwithstanding
changeability inside units, there is additionally fluctuation among units. That is both the test
and the open door. The reliable conveyance of predominant administration requires the
watchful plan and execution of an entire arrangement of exercises that incorporates

26
individuals, capital, innovation, and procedures. The few organizations that can deal with
this framework do emerge, and are searched out. This is the establishment of their practical
upper hand.

Culture

For an association's individuals to convey prevalent administration reliably, they should be


acculturated, i.e. imparted with the qualities, characteristics, examples, and practices related
with an administration culture. The systems of this cultural assimilation incorporate
enrollment, preparing, strengthening, and responsibility, inside the structure of an
association's belief system of administration.

Benefit Ideology

An association's belief system involves its motivation (Why are we here?) and values (What
do we remain for?). Associations prestigious for giving phenomenal client benefit have
regularly characterized their motivation as far as administration to serve their clients, and
to serve their individuals. Their qualities commonly incorporate honesty, dependability,
unwavering quality, moral duty, enterprising nature, ceaseless change, regard, and
consistency.

Enlistment

The test of enlisting and holding qualified client benefit centered workers turns out to be
horrendously clear when one is given a (not all that exceptional) case in which a vast
organization arranges itself inside a little country range. This has been a tradeoff a few
organizations have made with a specific end goal to spare a couple of dollars on land costs.
The trouble comes when representatives are released amid regular down cycles and a similar
ability is sought three or after four months. This model is not perfect and is dangerous, in
this manner organizations wind up using ability oveseas needs longer term.

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Training & Empowerment

Training is focused on enabling personnel to deliver service in manner that is beneficial to


both the organisations customers, and to itself.
Accountability
Whereas outstanding service organisations allow their people to make mistakes and learn
from their failures, there is little or no tolerance for violations of its core service values.
People who do not fit into the culture are removed.
What customers want
Delivering customer service begins with understanding what customers want. And this
understanding begins with the understanding that they do not always know what they
want, or why they want it. Traditional market research assumes that they do. Newer
methods recognize that as much as 95% of our decision making is subconscious.
Common research methods (e.g. surveys and focus groups) more often reveal what
customers think their motivations are, rather than what their motivations truly are. When
respondents do not comprehend their true motivations, they tend to state how they think
they ought to be motivated. Recent progress in neuroscience and in observational
technologies have yielded more reliable, less biased, results. Companies have Interaction
Designers that use User Centred Design methods, among others, to understand what
customers need. They often use Personas to represent the research outcomes, i.e., to
describe the customer they are designing for. Regardless of how they arrived at their
findings, most researchers agree on the factors listed in this table to the right. Suppliers
that meet these requirements are likely to give their customers a satisfactory experience.
In a competitive environment, however, satisfaction may not be enough. To stay in
business, firms must be at least as satisfactory as their competitors. Moreover, firms that
aim to gain profitable growth must increase the number of their customers, while
reducing the cost of customer acquisition. This is particularly true of companies that
compete in mature industries. The objective then is not merely to satisfy customers, but to
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convert them into promoters (customers who recommend a company to others).
Promoters serve to increase a firms clientele, without increasing its cost of acquisition
i.e. with no additional marketing or promotionalexpense. But customers do not
make recommendations lightly. When they make a recommendation, they put their own
reputations on the line. Firms must earn that recommendation through the consistent
delivery of outstanding customer service
Good People
Friendly, helpful,courteous
Empathetic
Knowledgeable, accurate,thorough
Resourceful,empowered
Able to recommendsolutions
Able to anticipateneeds
Efficient
Trustworthy,authentic
Reliable
Responsible
Appropriate appearance anddemeanor
Good Offering
Goodselection
Good quality
Instock
Availabledemos
Clear descriptions &pricing
Competitiveprices
Financing, deferredpayments
Convenience
Convenientlocations
Longhours
Available help, fastservice
ignage that facilitatesself-service

Fastcheckout

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Shipping/delivery
Installation
Phone/websupport
On-siterepair
Hassle-freereturns
Quick resolution ofproblems
Good Environment
Clean
Organized
Safe
Low-pressure
Energy level appropriate toclientele
Benefits of customer service Providers
Higher income (more sales, repeat business, referredbusiness)
Recognition
Personal satisfaction &fulfillment
Lessstress
Higher self-awareness andself-control
Greaterauthenticity
Happier life atwork
Stronger social networks, familyties
Happier life outsidework
Organizations
Quality sales (more add-ons, more servicesales)
More repeatbusiness

More referredbusiness
Fewerreturns
Betterreputation
Higher morale, happieremployees

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Lower employeeturnover
Higher caliber of jobapplicants
Fewercomplaints
Higherproductivity
Better workenvironment
Higher inventoryturnover
Higherprofits
Society
Higher income from individuals andfirms.
Higherproductivity
Stronger families and socialnetworks
Greatercivility

Principle of the study


Client Relationship Management (CRM) is a business approach which perceives the
significance of clients as the main impetus behind the achievement or disappointment of any
business. It empowers the business association to keep up, examine and follow up on the data
which the business recognizes as important to enhance its associations with the client to hold
them for quite a while period, and in this manner upgrade its odds of accomplishment.

Client Relationship Management (CRM) helps organizations enhance the productivity of their
collaborations with clients while in the meantime making the associations seem amicable
through individualization and personalization of administrations like sending sends to them,
reaching them by and by and so on. This administration incorporates Data Mining with the
assistance of which Customer Life Cycle can be overseen well in Acquiring new clients,
expanding estimation of the clients, holding great clients.

The fundamental strides of Data Mining for powerful CRM are:

1. Define Business Problem

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2. Build Marketing Database

3. Explore Data

4. Prepare information for displaying

5. Build Model

6. Deploy model and results

The organization can then utilize the data to find out about the conduct of theircustomers and
enhance the way it does a business after legitimately investigating. It can take a gander at
repeating protests from numerous clients to take care of an issue which would somehow run
unchecked with a typical configurations and administration arrangement of the organization.
The issue ought to be shut as ahead of schedule as could reasonably be expected. Doing this
assembles organization picture as well as manufactures a positive connection with its clients.

Goal of the review

The fundamental goal of this review is to discover successful answer for the Customer
Relationship Management and likewise increment the validity and productivity of the
organization. This review is more identified with buyer conduct and observation about the
offices and accommodation gave by the organization, Customer Satisfaction is underscored in
this administration.

Covering diverse methods for CRM methodologies

Identifying keys for powerful CRM

To analyze methods received by a few organizations for powerful CRM

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To comprehend the difficulties and effect confronted by organizations amid CRM.

Helping a venture to empower its promoting offices to recognize and focus on their
best clients, oversee showcasing efforts with clear objectives and destinations, and produce
quality leads for the business group.

Assisting the association to enhance telesales, record, and deals administration by


advancing data shared by numerous workers, and streamlining existing procedures (for
instance, taking requests utilizing cell phones)

Allowing the arrangement of individualized associations with clients, with the point of
enhancing consumer loyalty and expanding benefits; recognizing the most gainful clients and
giving them the largest amount of administration.

Providing workers with the data and procedures important to know their clients,
comprehend their necessities, and successfully assemble connections between the
organization, its client base, and circulation accomplices.

2.2 Purpose of the review

The Purpose of the venture is to investigate Effective Customer Relationship Management and
for that we need to comprehend current CRM System and Services gave from any organization
and its impact on Customer Needs, Satisfaction Level, their reaction and feelings. The target
of this review is to break down existing consumer loyalty as those clients help in making new
clients regarding the execution, deals endeavors and deals benefit later on.

Poll which has been readied depends on the current administrations and the fulfillment level of
the current clients and their involvement in the market which incorporates questions like
Name, Age, Gender, Income, Investment Frequency, input about administrations which they
are given like compliance, calls, proposals, arrangements. On a normal every one of the clients
are content with the organization and anticipate the development of it and the greater part of

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them are occupied with building a positive relationship ahead.

2.3 Scope of the review

This review will help an organization to get its own particular Customer Relationship
Management framework reflect well and it will get all the essential things that an organization
ought to take after to manufacture a sound association with their current and new clients and
appropriately make them faithful and hold them durable and furthermore to persuade new
clients to be served. Extensions can be expressed in few focuses as takes after.

Maintain current / existing customers.


Achieve new potential customers.
Retain all the customers.
Profitability Increment
Reputation and credibility Increment, etc.

Literature Review

3.1 Historical Background

Client relationship administration (CRM), an idea that has been around since the mid 90s, has its
foundations in the innovation of offers computerization and call focus operations. Around then, it was
felt that consolidating the client information from the field (deals) with the call focus cooperations
would bring about more educated communications with the client. The idea resounded with client
associations and soon mergers and acquisitions made a large group of programming merchants all
asserting to have an incorporated arrangement of capacities that ended up plainly known as CRM.

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On a parallel track, Internet-based instruments, for example, web based business, Internet showcasing,
personalization, and self improvement were developing. These items contended outside of the CRM
circle because of the originality of the innovation, and they were alluded to as e-business. At the point
when the ideas of CRM and e-business merged together there was a brief time of e-franticness where
merchants discussed e-CRM and e-everything. There are still remnants of this move in the business,
for example, basically utilizing e-business to enhance merchants and alluding to it as accomplice
relationship administration (PRM) or giving apparatuses to representatives and alluding to it as worker
relationship administration (ERM).

On alternate hands, CRM can be characterized as a procedure or approach used to take in more about
clients needs and practices keeping in mind the end goal to oversee and create more grounded
connections in a sorted out path with them.

Parts of CRM:

1. Contact an Account Management

Applicable information for client profile is caught with the assistance of the product accessible. Vital
data is caught from imminent clients about them, their taste and inclinations, their experience and so
forth. CRM framework stores information in like manner client database. The information is utilized
for deals, advertising, administrations and different applications and this information will help in future
for holding and making new clients.

2. Deals

Deals prepare administration takes after a redid deals strategy with particular deals approaches and
systems. Deals exercises incorporate - Product data, Product arrangement, deals outline and deals cite
era. CRM additionally give the historical backdrop of client record so that the business call can be
booked as needs be and help in knowing which client has gone to us the most or we can state visit
purchaser.

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3. Promoting and satisfaction

CRM helps the experts in item promoting, target showcasing, relationship advertising and crusade
management.CRM likewise helps in client maintenance, knowing their purchasing conduct,
channeloptimization, personalization. Client reaction and solicitations can be immediately planned and
consequently deals contacts.

4. Client Service and support

CRM framework gives benefit agents sufficient access to client database. It additionally makes, allot
and deal with the administration asks for by clients. Calling organization is intended to course client
calls to particular chaperons according to the aptitudes and expert to deal with uncommon cases. Help
work area framework is created to help client benefit agent to help clients who confront issues with
item or administration to determine it. Online Self Service implies help client to get to customized data
at organization site.

5. Maintenance and reliability programs

The essential target of CRM is to improve and streamline client maintenance and faithfulness. CRM
frameworks are additionally helpful in deciding most steadfast and gainful clients and reward.

3.3 Goals of CRM

Organizations can increase numerous objectives from CRM:

1. Bring down cost of enlisting clients:

The cost for enlisting clients will diminish since there are reserve funds to be made on showcasing,
mailing, contact, development, satisfaction, administrations, et cetera.

2. No compelling reason to enroll such a large number of clients to protect an unfaltering volume of

36
business:

The quantity of long haul clients will increment and thus the requirement for enlisting numerous new
clients diminishes.

3. Lessened expenses of offers:

The expenses in regards to offering are lessened inferable from that current clients are typically more
responsive. What's more, with better information of channels and wholesalers the connections turn out
to be more powerful, and in addition that expenses for showcasing efforts is diminished.

4. Higher client gainfulness:

The client gainfulness will get higher since the client wallet-share increments, there are increments in
up-offering, strategically pitching and follow-up deals, and more referrals accompanies higher
consumer loyalty among existing clients.

5. Expanded client maintenance and faithfulness:

The client maintenance increments since clients remain longer, purchase progressively and purchase
all the more much of the time. The client does likewise more regularly take activities, which increment
the jumping relationship, and subsequently the client steadfastness increments also.

6. Assessment of client gainfulness:

The organization will become more acquainted with which client are gainful, the ones who never may
end up plainly productive, and which ones that may be beneficial later on. This is imperative since the
way to accomplishment in any business is to concentrate on obtaining clients who create benefit, and
once you have discovered them, never let them go

Client Value :

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Amid the most recent decade, there has been developing enthusiasm for the esteem build among both
promoting specialists and experts. In 1991, a mainstream business magazine depicted client esteem as
the "new showcasing craziness" (Business Week, "esteem advertise" 45-60; 1991). After six years, the
Marketing Science Institute perceived esteem and related issues as an exploration need. From that
point forward, a few universal meetings and classes have given more extensive consideration regarding
this territory of research.[Andreas Eggert and Wolfgang Ulaga - P. 1]

Client esteem, in any case, is a long way from being another idea to the promoting discipline. In spite
of the fact that it didn't draw in much unequivocal consideration until it turned into a watchword in the
1990s, esteem has dependably been "the principal reason for all advertising movement". The esteem
idea is firmly connected to the trade hypothesis of showcasing. As per this view, willful market trade is
a key constituent of the train. Since deliberate market trade just takes places when all gatherings
included hope to be in an ideal situation after the trade, saw esteem is at the center of
marketing.[Andreas Eggert and Wolfgang Ulaga - P. 27]

3.6 Customer fulfillment

Measuring consumer loyalty has turned out to be progressively well known over the most recent two
decades and today speaks to a critical wellspring of income for statistical surveying firms. The
fulfillment develop has picked up a vital part in the showcasing writing. It is generally acknowledged
among analysts as a solid indicator for behavioralvariables, for example, repurchase aims, informal, or
dedication.

Consumer loyalty research is chiefly impacted by the disconfirmation worldview. This worldview
states that the client's sentiment fulfillment is a consequence of an examination procedure between saw
execution and at least one correlation standard, for example, desires. The client is fulfilled when he/she
feels that the item's execution is equivalent to what was normal (affirming). In the event that the item's
execution surpasses desires, the client is extremely fulfilled (emphatically disconfirming), on the off
chance that it stays beneath desires, the client will be disappointed (adversely disconfirming).[7]

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3.7 Customer Loyalty

The meaning of dedication is the point at which your client is reliable to your business and item mark.
They will return over and over, to work with you, notwithstanding when you might not have the best
item, cost or conveyance benefit.

Devotion is the aftereffect of creating past constructive encounters with an individual and having that
individual return back to you different circumstances because of these encounters. On the off chance
that you can perceive the one of a kind circumstance of your client anytime, similar to their present
business condition, buy history or quickness of buys, these little snippets of data can be utilized to
profit your business. Measuring the viability of your customer's history against dedication is an
obligation regarding devices like CRM frameworks. These apparatuses help measuring these activities,
move your customers to buy more, acquaint them with different items you may convey and have those
customers utilize verbal exchange to help advance your business. It has been demonstrated that
awesome administration is still what persuades customers to wind up noticeably faithful to the
associations they manage. On the off chance that they are accepting poor administration and disregard
from you towards their necessities, your organization will have a transient association with them. This
negative activity additionally will spread by listening in on others' conversations and could hurt your
business increasingly that you ever envision.

3.8 Customer procurement

Client procurement is "The way toward recognizing, drawing nearer, and growing new client
connections". Information Discovery strategies can be extremely helpful in the recognizable proof of
possibly beneficial and faithful new clients. Getting the correct clients is the initial phase in Customer
Relationship Management." Or it can be just characterized as "Strategies used to increase new clients".
(sharp 2003).[9]

The part and relative significance of client procurement differs impressively as indicated by an
organization's particular circumstance. For instance, another market contestant will be basically
concentrate on client obtaining, while a built up big business will be more worried with client

39
maintenance. The client's procurement procedure is ordinarily worried with issues, for example,

Acquiring clients at a lower cost

Acquiring more clients

Acquiring more appealing clients

Acquiring clients using new channels.

The beginning stages in understanding clients esteem from the point of view of the provider
association is to decide the current client procurement cost inside the real channel utilized by the
organization and to recognize how these costs.

4.Research Methodology

4.1 Research Design


"Research design is the plan and structure of investigation so conceived as to obtain answers to
reach questions. The plan is the overall scheme or program of the research. It includes an outline
of what the investigator will do from writing hypotheses and their operational implications to
the final analysis of data. A research design expresses both the structure of the research problem
and the plan of investigation used to obtain empirical evidence on relations of the problem".
[Cooper & Schindler - P. 146]

In fact, the choice of research design must be appropriate to the subject under investigation.

40
"A good research design will ensure that the information collected will be consistent with the
objectives of the study and that the procedures regarding data collection is accurate and
efficient." [Petra Persson - P. 65]

Research design means adopting that type technique of research which is most suited for the
research and study of the problem. For the study and the research of the problem proper material
has to be selected and collected for the investigation.

"A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure."
- Jahoda, deutish. Cook.

The study conducted here is exploratory cum descriptive.

4.2 Data Collection


When the research problem has been defined and the type of research has been selected, it is
time to decide which technique for collection of data should be applied.

"The data collected can be classified as primary versus secondary data. Primary data is gathered
and assembled specifically for the research project in hand. Secondary data has already been
collected for purposed other than the problem at hand. Secondary data is often found inside the
company, in the library on the Internet and it can be collected quickly." [Petra Persson - P. 69]

In qualitative research, there are different instruments for data collection such as interview,
recorded observations like focus groups, texts and documents, multi-media or public domain
sources, policy manuals and photographs.

In this research, secondary data will be used and all qualitative research about CRM systems and
relevant subjects such as customer satisfaction and customer retention will be collected from
public documents which can be categorized as follows:
Reliable books, articles and scientific findings.

41
Documentation: documentary information including related books, articles, scientific
written reports, formal studies, progress reports, proposals.
Archival Records: including survey data previous collected, organizational records, and
personal records.
Internet websites and available online libraries that include information about CRM
system and its role in customer satisfaction and customer retention.

Nature of Research
In this project report I have undertaken qualitative type of study.

Type of the Questions


The questions in the questionnaire asked to the visiting customers, are Straight Forward and
Limited Probing, close ended.

Sampling Technique
The sampling technique is simple random technique as in simple Random sampling, each unit of
the population has an equal probability of inclusion in the sample. In survey, each respondent
have equal opportunity to be selected and the data i.e to be collected,was from customers .

Sample size
The sample size is of more than 50 people

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DATA INTERPRETATION AND ANALYSIS

Q.1 Please state how many times you visit the same shop/ organization in a month?

frequency of visiting

2 times
3-5 times
6-10 times
10+ times

In the above question it was found that there are only 3 people who only visit 2 times to the same shop
in a month due to few reasons. 7 people said they visit at least 3-5 times in a month to the same
organization for purchasing. 29 people said that they visit at least 6-10 times in a month to the same
shop they like because of their service and attractive offers. And only 9 people said that they visit 10
times the same shop for purchasing mainly they are housewife who do shopping for their home on
regular basis.

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Q.2 Please rate the helpfulness and friendliness of the staff over their out of 5

rating
30

25

20

15
rating

10

0
1 2 3 4 5

According to this it was found that only one person was there who gave 1 out of 5 because of the poor
customer service. Maximum people have given 3 and 4 rating to their organization from where they
shop regularly as they think that the helpfulness and friendliness of the staff over there is good. Only
one person has given 5 out of 5 and he is totally satisfied with the service his organization is offering.

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Q.3 How would you rate the customer care service if you have taken any help out of 5.

rating

1
2
3
4
5

Maximum people have rated 3-4 to the customer service as there issues were solved within time and
were happy about the way there issue were solved. Only 3 people have given 2 out of 5 because there
issues were not solved properly and the problem is emerging regularly.

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Q.4 Please rate the pricing system of the products of the company you shop the most.

pricing

bad
average
high priced
very high priced

Maximum people said that the product of the organization where they visit regularly are high priced but
they also said that the quality of the product and the service they offer are up to the mark thats why
they are charging high prices. 11 people said that the pricing of the organization they visit regularly are
average price I.e a normal person can also purchase easily . Only 1 said that very high priced according
to their service and quality price of the product is very high.

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Q.5 If the product purchased by you, requires home delivery, then was it delivery fast?

time taken

YES
took a little extra time
poor delivery

According to this it was scene that many people were not satisfied by the fast home delivery option
given by the organizations as its not fast. More than 50% people said that it took a little extra time for
home delivery of the product. 16 people said that yes it was good and only 3 people were totally
dissatisfied with the home delivery service.

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Q.6 After receiving recommendation, have any of your, relative visited that company to become its
customer at least once?

yes
become regular customer
visited at least once
no

Most people said that after receiving their recommendation most of them become the regular customer
of that organization too. 8 customer said that after their recommendation to family or friend they have
visited that organization or place at least once. 10 people have contributed in that organization through
purchasing and become a part of it.

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Q.7 Please rate the overall satisfaction with the quality of service provided by the organization which
you visit the most.

OVERALL QUALITY

VERY DISSATISFIED
SOMEWHAT DISSATISFIED
NEUTRAL
SOMEWHAT SATISFIED
SATISFIED

Most of the people said that the overall quality of service by the organization are neutral i. e not below
average not too good. 6 people said that they were somewhat satisfied and 6 people said that they were
totally satisfied with the service of the organization they visit the most. 6 people said that they were
totally dissatisfied with the service offered and only 1 candidate is there who is totally dissatisfied with
the service, the quality of product and he has never visited that organization after that.

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Q.8 will you be becoming a loyal customer to that particular company which you prefer the most?

LOYALTY

yes
no

If no:

reason behind no

dont care about customer


price are too high
quality of service is not good
attractive offer are not there

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42 people said that they will become loyal customer towards the company they prefer the most.

Remaining people said no and the reason behind that was the company do not care about their
customer and not in contact. Prices of the product are too high, quality of service is not up to the mark,
they do not offer attractive offers which other companies do.

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Limitations

1. Many consultants, vendors, and analysts today define CRM in terms of being a customer-
centric business strategy that is enabled by a set ofapplicationsthat support customer-facing functions
and management decision making. That may capture the essence of what CRM is, but while it
does not concentrate on the extra expenses occurring on Companys A/c due to increment in
expenses in serving customers all the ways and Return on investment means consideration may not
be more than expected. Customer may not give that much business transactions which is estimated
or expected.
2. It needs specific staffs to handle all the tasks of Customer Relationship Management
because the data that is feed in system cannot be handled merely by Relationship Managers who
has to make new customers and take care of their dealings and also to accomplish their additional
responsibilities.
3. Time constraint is unavoidable limitation of the study.
4. Financial problem is also there, in completing project in a proper way.
5. Inadequate disclosure of information is also the problem.
6. Ristriction to sample size of more than 100 people.
7. Itsdifficult to get customers time and view for specific questions.
8. Skill of Interviewer effects the filling of questionnaire.He might not be able to explain the
exact meaning og question in the questionnaire.

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Conclusion

The goal of this research was to study the impact of Customer Relationship Management
systems and practices on today's Customer Retention endeavor. CRM has been a key element of
the modern marketing in recent years. All around the world companies in different sizes have
been trying to utilize CRM systems to help them with their competitive businesses. On the other
hand because of vigorous competition, not only acquiring new customers is becoming difficult
but also holding existing customers is a quite challenging task.

According to this study it can be said that it is a lot cheaper to keep existing customers happy
than to attract new ones. But maintaining relation with existing customers in level that
constantly encourage them to stay with a company is a dynamic and meticulous job. That is why
computerized CRM system can play a critical role in success of a company. But the way that
CRM systems are used can make substantial different on the outcome. Along with sales and
marketing, all the other departments of a business should be involved with CRM processes. A
new emerging approach that recently has been attracting corporations is Customer Value
Management. Their goal is to identify the value that can be delivered to customers along with
their products through their supportive processes and services. The CVM methodology
incorporates a key concept from CRM, namely that success comes from focusing on,
understanding and serving targeted customers or groups of customers.

For a successful relationship it is up to the company to perform Customer's profitability


analysis. If a customer is not doing well with presented products or services, there is an
opportunity for us to find a better solution for that customer before losing it to competitors.

One of the other important according to this research was; a fundamental principle of CRM is
that all customers are not the same. CRM is based on the idea of treating different customers
differently. Another words, it is not possible to attract and retain all customers with the same
policy and treatment. Companies have to discover the differences and adjust their accordingly.

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Research conclusion:
Through this research we conclude that CRM plays a very important role. If the customer is satisfied
with the service of yours then he will become toward you, if not then you are not successful in attractive
customers and satisfying them to the best. So, proper customer relationship ,management should be
there in order to retain our existing customer and attracting the new one.

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References:

[1]CRM web site - Definition of CRM http://www.craftsman-logos.co.uk

[2]http://www.accenture.com/us-en/landing-pages/industry/communications/insights/Pages/crm-
analytics.aspx

[3]http://www.helium.com/items/1036630-what-is-customer-relationship-management

[4]http://www.sooperarticles.com/business-articles/basic-steps-data-mining-crms-99698.html

[5]http://www.ism.co.at/analyses/CRM/CRM_Background.html

[6]http://www2.technologyevaluation.com/es/Research/ResearchHighlights/Crm/2004/11/research_n
otes

[7]http://www.emeraldinsight.com/journals.htm/journals.htm

[8]http://www.salesboom.com/whitepapers/crm_whitepaper_customer_satisfaction_customer_lo
yalty.html

[9]Sharp, D.E. (2003) "Customer Relationship Management Systems Handbook".NY: Auerbach,


Publications, CRC Press Company.

[10]books.google.co.in/books?isbn=1136400176 Handbook of crm p-140 Adrian Payne

"Answer" Web site - http://www.answers.com/topic/methodology

"Analytical CRM" -Copyright 2001 SAP AG. All rights reserved.

http://www.sap.com/solutions/business-suite/crm/pdf/AnalyticalCRM_50046585.pdf

http://www.saleslobby.com/Mag/0601/FERK.asp

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tactic#.UST4b_KOHEw

http://www.jstor.org/discover/10.2307/30166567?uid=3738256&uid=2&uid=4&sid=21101846388

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http://articles.economictimes.indiatimes.com/2009-09-09/news/27633588_1_crm-customer-
relationship-management-brand-loyalty

http://www.jstor.org/discover/10.2307/30166559?uid=3738256&uid=2&uid=4&sid=21101846388
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http://articles.economictimes.indiatimes.com/2003-02-06/news/27552350_1_crm-software-
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http://articles.economictimes.indiatimes.com/2005-05-12/news/27494840_1_crm-software-
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http://www.jstor.org/discover/10.2307/30040548?uid=3738256&uid=2&uid=4&sid=21101846388
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Philip Kotler, Gary Armstrong, John Saunders, Veronica Wong "Principle of Marketing" - 3rd
European edition 2001.Published by: Financial Times & Prentice Hall.Chapter 11_ page 405

Ro King - 2005 "Customer Retention Programs". By Ro King, Executive Vice President, Quaero,
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Petra Persson"Customer Relationship Management and How a CRM system can be used in the sales
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Adrin Payne (professor) "Developing a Strategic Approach to CRM. Key issues in creating a
customer centric postal.Key issues in creating a customer centric Key issues in creating a
customer centric postal". Nov. 2001 - p. 7-9. Cranfield School of Management -
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