Presented By Achal Gupta Anmol Garg Vivek Jaiswal Ruchin Goel Ankit Jain

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

Characteristics
Highly unorganized and & fragmented industry.

Linkages with the economic growth (22% to GDP and 8%

employment).
Rural and urban divide. Emergence of multiple retail formats. Working capital intensive. Generating employment opportunities.

Forms of Retailing
Convenience stores
Factory/company outlets Specialty stores Supermarkets Department stores

Product Based Segment

Apparels. Footwear. Health and Beauty Care Services. Consumer Durable and Home Appliances. Furnishing, Utensils, and Furniture Home and Office. Food and Grocery. Books, Music and Gifts.

Kinds of Retailing
Unorganized: Ownership and management rest with one person. Accounts for 2/3rd of the retail market. Normally street markets, counter stores, kiosks and vendors. Organized: Modern retailing. Offers variety of products (quality, value for money). Shopping a memorable experience.

Indian Customers
Time killers: Moves around & covers lot of store; spending

less time; waiting for someone; no intention to buy; Zero conversion rate. Focused Fulfillers: Moves quickly to the specific product; 82% conversion rate. Product Groupies: Have specific notion about the store; will touch many products, but focus on the target group product; 37% conversion rate. General Browsers: Cover large area; move slower than time killers; non-focus interaction with product; 2% conversion rate. Pleasure Seekers: Spends long time; easily influenced; 79% conversion rate.

Characteristics of Customers
High disposable income. Price sensitive. Value for money. Educated.

Meaning of Customer Relationship Management (CRM):

To support these processes, various CRM Software like

SAP, ORACLE Sales force.com etc. are used. These 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 ASPECTS OF CRM

CRM includes many aspects which relate directly to

one 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 MART

CRM policy of reliance mart can be divided into four

major parts, namely; Customer loyalty Customer retention Customer communication Customer gratification .

Customer Loyalty- Reliance Mart

There exists a blanket customer relationship programme

called the reliance one membership programme for the purpose of maintaining customer loyalty. The membership programme is a very simple one where a willing customer is required to fill a form giving personal information and he gets a temporary card which will be made permanent after six months. On each purchase of Rs. 100 the customer gets one redeemable point on the production of card at billing counter. The collected points can be redeemed in form of discounts on future purchases on demand of the customer.
The members of reliance one get the opportunity of taking part and

winning prizes by the way of lucky draws on regular intervals.

Customer retention policy Reliance mart implementation

Generally each state is regarded as a zone and the offers and discounts in a zone are not available in other zones. Such policy helps reliance retail to understand and capture the local markets better. The products which show improvement due to offers and discounts on them are repeated with these offers again so as to retain the sales of the customers who bought it the last time. Also such the days best offers are constantly announced in the store making the regular customers aware about them. Maintaining a good store ambiance is also a part of customer retention policy of reliance retail. Clean and hygienic environment with properly and well spaced products along with a uniform color theme attracts the existing customers to the store again and again. A fast billing system and good and easy grievance handling system which can be accessed thru customer service desk and company website, ensures that customers feel satisfied with the store management. Less harassment to customers means better customer retention.

Customer communication Reliance mart

Communication to existing customers takes the form

of sms and e-mails, generally sent to reliance one members Another source of customer database is the information collected during the organizing of special events in the stores. Customers participating in such events provide their contact information which are also used in form of database for communication purposes. Thank you and festive cards on special occasions are an innovative way of communicating with the customers. Trained salespersons make customer gratification very easy.

Customer Gratification Reliance mart

A simple thank you with a smile goes a long way for

the store to keep the customers happy. The special events organized by the stores across India are also a way to gratify the customers by allowing them to play and win prizes. Gift vouchers and discount coupons are an attraction for the customers and give them the feel that the store cares about them and their money.

Limitation CRM implementation

The implementation of the policies brings out certain limitations in them. Few major ones are as follows The personal contact numbers of reliance one members are open to tele marketing calls from various marketers as they leak out of the reliance retails database, causing unnecessary harassment to customers. The customer communication policy is less followed in small towns and cities and is more concentrated towards the metro cities.

Limitation CRM implementation

There is a common crm policy for both reliance fresh

and mart. This should not be the case as both the stores offer different kinds of merchandize and generally attract different kinds of customers. Reliance retail generally delays the processing of permanent membership cards to those customers. Unmanned billing counters create long queues at the open counters. This creates impatiens in the customers as they expect faster billing at the stores and do not want to stand with too much of goods held in their hands while billing

CRM @ BIG BAZAAR

Database is formed through the issue of future card

and card is of three types silver card, gold card and sakthi card. Customer profitability analysis (CPA) is done on the basis of transactions made through the future cards. Platinum customers (most profitable). Gold customers (profitable). Iron customers (low profitability but desirable). Lead customers (unprofitable and undesirable).

There are four type of analysis done for analysis of CRM

Periodic Surveys
Customer Loss Rate Mystery Shoppers

Monitor Competitive Performance

Steps Involved in customer Satisfaction through Service:

Seeing problems from the customers perspective Managing customers Communicating effectively through better listening Analyzing how customer perceptions are formed Managing anger and other service behaviors Dealing with long-term consequences of service

breakdown Negotiating solutions Generating an action plan for improved on-the-job effectiveness

CUSTOMER COMMUNICATION- Big bazaar

Future group maintains its records of customers by observing

their purchasing habits & categories them into various groups.

They communicate to the customers through various medium

like SMS,E-mail, Mobile vans, Print media etc.

Presently they are using oracle software to maintain database.
Recently they have tied up with California based firm

GREENPLUM to provide new software for data warehousing.