International Referred Research Journal,May,2011,ISSN-0975-3486,RNI: RAJBIL 2009/30097,VOL-II*ISSUE 20

Research PaperCommerce

A STUDY OF CUSTOMER RELATIONSHIP MANAGEMENT (CRM) STRATEGY RETAIL SECTOR IN INDIA

May, 2011

* Dr. Rajesh Kesari ** Abhishek Kumar Srivastva

* Director & Head, Faculty of Mangt. & Comm, N. G. Bharati University, Kotwa - Jamunipur, Dubawal, Allahabad, ** Research Scholar, Nehru Gram Bharati Uni versity, Kotwa - Jamunipur, Dubawal, Allahabad,

A B S T R A C T
Retail is Indias largest industry accounting for over 10% of the Countrys GDP and arround 8% of the employment. It is one of the most dynamic and fast paced industries with several players entering the market. CRM refers to being in touch with the customer. As the market moves from a sellers market to a buyers market, the business culture shifts to a customer focus approach. This paradizm shift necessitates acquisition, enhancement and retention of customer. Retaining a customer is more cost-effective for the organization than acquiring a new one. Key-words : CRM (Customer Relationship Management), Customer loyality, Customer behaviour, Customer satisfaction.

Introduction The organized retail industry is significantly influenced by the recent developments in retail technology. The introduction & development of various softwares and modules have enabled retailers to collect deversified nature of information regarding their customers. It has simplified the task of retailers to conduct various relationship -marketing schemes. Marketing concept CRM is a powerful functional area of marketing management. It is therefore desirable that one should have a relook at the concept of marketing in same of its evolutionary phases with the change in focus from products to relationship during the past 50 years. Meaning of CRM CRM is about organising information The phone calls, the e-mails, all interactions- for strong sales and customer care. CRM is an information industry term for methodologies, software and usually. Internet capabilities that help on enterprise manage customer relationship in an organized and effcient manner. CRM is a business strategy that attempts to ensure every customer interaction (whether for sales or services) is appropriate, relevant and consistent regardless of the communication channel. Process of CRM :- CRM processes that help identify and target their best customers, generale quality sales, leads and plan and implement marketing compaigns with clear goals and objectives. CRM systems are useful in that addresses, phone numbers, call records and purchase history and more. The concentration of CRM is primarily on people and focus on alignment & remodeling of retailers strategy towards enhenced customer value. It always emphasize on building of bond between customers and retailers right from the first interaction.
R E S E A R C H A N A L Y S I S

Know Who Cutomer are

your

Keep Learning about customers and their changing behaviour

Know what they want

Given them shipping experience they want

Give them the merchandise they want

Process of CRM

Benefits of CRM The rise of loyalty programs, mail order and the internet has popularized the concept of CRM. It provides retailer with real access to consumer data base. Some of the important benefits of CRM technology are:(i). Ensure better direct marketing efforts. (ii). Provide relevant product and service related data on real time basis. (iii). Analyze customer purchase data to identify various groups of customers. (iv). Help minimize customer defection rate. (v).Measure customer satisfaction level.(vi). Provide database to develop various relationship marketing strategies like incentives. Improve in CRM (1). Analyse business processes (2). Give your business a web presence promote your website. (3). CRM consulting and implementation. (4). Analyse customer behaviour and target the right customers. (5).Improve sales effciency and com-munication. (6). Provide a better service to customers. (7). Full training for all staff levels. (8). Suppoprt packages for all budgets. (9). Customer insight & customer resource optimiztion. (10.
A N D E V A L U A T I O N

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International Referred Research Journal,May,2011,ISSN-0975-3486, RNI: RAJBIL 2009/30097, VOL-II *ISSUE 20

Use of technology in CRM & Customer probitability. Case Study CRM : Let the music play The Company - Vera music stores Vera music stores was launched in 2001 as a specialty store selling Bollywood film music. But with the demand from the customers, it started selling electronic gadgets, such as i-pods, digital Cameras, digital watches, electronic toys and music players. The company was launched by Lalchand Group of Mumbai. Within a short period of two years, it established a large flagship store in Andheri (E), Mumbai and arround 20 more stores in Mumbai to meet the ever-increasing demand from youngsters, the comany has arround 120 employees across all the stores including the central store. The Problem Retailing of consumer-durable goods requires strong after-sales service. Delivering excllent customer service is an essential part of maintaining a strong retail brand for vera music stores one of the countrys leading entertainment stores, customer service is a crucial component of success. The Solution Vera music stores was new to CRM products at its repair centre. Therefore it decided in favour of the product only after seeing a demo. The company choose a solution based on Microsoft Dynamics CRM. According to the companys IT Manager, The product met most of the requirements of the retailers after sales service for electronic gadgets. Benefits The solution was installed on five machines with a central server. Five employees at a time could use the solution for maintaning post-sales service. The solution helped reduce their workload by making it easier to deal with repairs. Strategy in Retail Sector in India CRM is a business strategy, it would evolve difterently at different enterprises depending on what strategy is developed. CRM is not just about the technology. Process thinking cause firms to expand their thinking to strategy, tactics and skills set as well. the second step is to under

Strate-

CRM

Skills Figure Strategies-Skills-Technology-Tactics-Process (Five broad areas of CRM)

stand that CRM is a highly complex interplay of these five areas. The rest of the picture becomes clear when enterprises realize that these five areas are all interconnected i.e., technology can drive strategy; Processes impact skill sets; tactics can be developed to utilize technology. As such, the interplay of the five areas will be inerative process. The retailing industry has been present in our country through history and is considered as one of the largest sectors in the Indian Economy, contributing to arround 10% to the GDP and employing arround 8% of the total population. As per F & R Research India retail Report 2007 organized retailing in India account for 4.6% (Rs. 55,000 Crores or $12.4 Billion) of Rs. 1,20,000 Crores of $ 270 Billion retail market with an expected 40% plus annual growth rate, and is expected to grow to Rs. 2,00,000 Crores i.e. $ 45 Billion by 2010. Total retail market in India currently stands at USD 350 billion in 2007-08 and estimated to at fain U.S.D. 573 billion by 2012-13. Organized retail industry accounts for only 5.5% of total retail industry and expected to reach 10% by 2012. Conclusion CRM entails all aspects of interaction a company has with its costomer, whether it is sales or service related,it starts with the foundation of relationship marketing. CRM is a systematic approach towards using information and ongoing dialogue to built long lasting mutually beneificial customer relationship. CRM requires a cultural change with organizations. Its an ongoing business process and will create sustainable competitive advantage.

R E F E R E N C E
1. Philip Kotler - Markeing Management, Prentice hall, USA-13th Edition, Page 128-129. 2. Girdhar Joshi - Information Technology for Retail, Oxford University Press, New Delhi, Page - 306. 3. P.K. Agrwal & N.C. Bansal - Retail Management, Pragati Prakashan, Page 138.4. David Gilbert - Retail Marketing Management, Prentice hall,New York, Page - 39-42.5. Gibson G. Vedamani - Retail Management, JAICO Publishing House - New Delhi - Page - 143.6. www.crmlday.com/crm-retail 7. Business world 8. Business Economy

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