Professional Documents
Culture Documents
SANGLI
CHAPTER-1
1.1 INTRODUCTION TO STUDY
Every time a customer approaches your business, they arrive with expectations; it may
be related to services offered or new product developments. They have an expectation that
accompanies their interest in your business. What happens next will form an Experience that
shapes their behaviour.
A good experience may increase their loyalty and tendency to purchase again, a poor
experience may transfer their business to their competitor. The ability to recognize this process
and to actively manage it forms the basis for Customer Relationship Management. To build
customer oriented strategy is promise of Customer Relationship Management.
1.
2.
3.
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4.
5.
6.
Pays less attention to competing brands and advertising and is less sensitive to price.
Offers product ideas related to the company.
Costs less to serve old customers than the new customers because transactions are
reutilized.
7.
Acquiring new customers can cost five times more than the costs involved in satisfying
and retaining current customers. It requires a great deal of efforts to induce satisfied
customers to switch away from their current suppliers.
8.
9.
10.
The customer profit rate tends to increase over the life of the retained customer.
Loyal, repeat customers can form a significant competitive advantage for a business in
Thus cost of sale for existing customers is far less than the cost of generating market
awareness, acquiring new customers and establishing a business relationship with them.
Hence identifying potential customers, treating them according to the service level they
deserve, track and record the details of transactions for further reference through supply chain
and other modes of intermediaries, enterprise has to introspect Customer Relationship
Customer relationship management
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Management and set business policies & procedures that are designed to create and grow long
term customer-relationships, which is foundation of competitive advantage, growth and
profitability. Therefore researcher has selected the topic related to Customer Relationship
Management for his study. It was also observed that Customer Relationship Management is the
most neglected activity in many business organizations, which should be given prime attention
for effective management. This requires an in-depth study of the subject entitled. A Study of
Customer Relationship Management with special reference to Payod Industries, Hingangaon,
2)
3)
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4)
4) To design business policies to create and grow long term customer relation.
5) To find exact position of the company in the market.
The scope the study is limited in respect of topical coverage, geographical coverage and
analytical coverage. Topical scope of the study is limited being the researcher has studied
Customer Relationship Management which is one part of marketing process. Again focusing on
one part of the many organizations in Sangli i.e. PayodIndustriesHingangaon, Sangli couldnt
reveal deeper aspects of the study.
There is also. Geographical or regional limitation of the study that the research is concentrated
of the study that the research is concentrated on the Sangli regions and
PayodIndustriesHingangaon, Sangli customers are scattered in the diverse regions. Hence
geographical scope is limited. There is also analytical limitation of the study that by focusing
only on the predetermined objectives the suggested Customer Relationship Management
strategies is given.
1.5Limitations of Study
The researcher does not claim this study to be perfect or even complete in it. Because of
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Customer Relationship Management covers diverse aspects of marketing and IT. The subject is
too vast to give justice within specified time period.
The researcher is also aware that there are some functional limitations of the study. As it was
very difficult to get introduce to this totally unfamiliar industries and the study of Customer
Relationship Management. Because Customer Relationship Management itself is known to
the world from year 2000 and onwards, its early entry in corporate is seen recently. Further to
implement Customer Relationship Management effectively enterprise should have right
leadership, strategy, process and organizational culture. Inspire of the above limitations,
the study throws the light on building effective Customer Relationship Management
strategies to improve customer organization relationships. It is expected that this will surely
pave the way for further scope in researching Customer Relationship Management in broad
perspective
1.6Methodology Adopted
Data for the above study is collected mainly through primary sources and only little
part is collected through secondary data source.
1) Primary data source The data collected for the first time by investigator for executing
the project is called primary data source. It includes interviews, feedbacks, etc. As this project
is based on Customer Relationship Management most of the data collected through this
source Questioner and Internet.
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CHAPTER 2
COMPANY PROFILE
2.1Introduction of company
Name Of Unit :Payod Industries, Higangaon.
Taluka-KavatheMahankal,
District-Sangli
PayodIndustries , Higangaon
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Introduction
Mr DevanandLondhe, born on 12 Aug 1971 in Nangole village of
KavathemahankalTaluka...
Mr.AnupJetia suggested to him to start this business In the year 2008, Mr
DevanandLondhe and Mrs.SnehalLondhe set-up a small scale unit Payod Industries
in the remote village of Hingangaon, situated in drought-prone TalukaKavatheMahankal,
in Sangli District. The duo had envisioned an idea of empowering the rural women folk
through skill enhancement. Involvement in manufacturing of industrial safety products
like gloves has helped in creating a belief of self-reliance and induces confidence among
the rural women involved in this work.
Since last two years the unit has helped in creating employment opportunity for more
than 200 women from Hingangaon.
DevanandLondhe:
Disaster and Development Management Professional
At/post :-Hingangaon, Taluka:- KawatheMahankal, District :- Sangli 416405
Ph no:- 9822191233, 02341 226124
devanandlondhe@yahoo.com
devananlondhe@rediffmail.com
Last 18 years working as a Disaster & Development Management Professional
with National and international organization like UNICEF, USAID, OXFAM GB,
Relief International ( USA) in India and aboard, particularly in Africa, South Asia,
Middle east.
Currently associated with Oxfam GB , RedR India ( Register Engineer for Disaster
Relief )as a Public Health Engineering expert
Work as WASH Expert in major disaster response
Gujarat Earthquake
Rajasthan Drought
J&K ( Kargil war displaced peoples ) humanitarian assistance program
South Asia Tsunami
South Asia Flood
Leh-land slide
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African food response
On 2008 established a company called Payod Industries at native village
Hingangaon -Which is creating employment opportunities for rural community of
kawatheMahankalTaluka of sangli, currently 300+ women and youths I are
working from their home which is reducing migration and also happing reverse
migration as well We are manufacturing Various types type of glove and
exporting to Japan, Taiwan, Europe and some well know companies in India like
TATA MOTORS( all plant in India ),TAL-Boeing maintenance plant -Nagpur ,
Honda company Chennai, DAS offshore Mumbai & UAE, Forbes Marshall,
Thermax etc.
This project has appreciated by MonteksinghAlluwalia Deputy Chairman Planning Commission, GOI,
RATAN JI TATA- Former chairman TATA Sons
R.R PATIL Home Ministry GoM
Vinod JI Tawade- Opposition Leader GoM
CII -Office West Zone
M V Ashok -CGM NABARD
RatnakarGaikwad Former Chief Secretary GoM
AMIR KHAN- Film star
Awarded by Best Entrepreneur 2012 Ministry of Industries GoM
Maharashtra Officer forum award 2011
Sangli Icon -2012
YuvaPursakar-Nashik
Entrepreneur of the year 2013 The Karad Urban Bank
Semifinalist for Sankalp 2014 Social Entrepreneurship Awards
Media Coverage
Visual media
Marathi Big Boss- ABP Maza
IBN7-Zindagi Live coming soon
Sahara samaya
NDTV 24X7 & Profit
Print media
Forbes India -17 June 2011
Washington Post New York- April 2011
Singapore time April 2011
Times of India June 2013
Customer relationship management
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2.2History of the company:It is very difficult to build business in ruler area but DayanandLondhe builds their
business in ruler area near Sangli. He started Payodaindustries in Hingangaon where
population is only 5000 and production is hand glows.
He is 41-42 years old in small age he started his own organisation. He has born on
12 Aug. 1971. His father was army man. He had completed his primary education in
zilhaParishad School in Hingangaon and then joins Shri N. T. Sagare high school for
further education. He had passes SSC in 1987 with 65% and then joined ICRE for
Diploma in Civil and ruler engineering in 1991.
th
After passing diploma he was joined as supervisor on one site near Sangola but he
came back within one month. He shared his experience with one of the friend after
listening his friend make bad comment then he had decided that he couldnt go there.
Then he went to Pune and joined another company of topography survey. After some
month he got good opportunity in Nashik. Then he joined that company 2 nd Feb. 1992 but
he is not satisfied with work.
On 9th Sep. 1993 he meets Prasad Sevekari he is also doing Civil surveying work
he started working with him. He worked with him long time while working with him he
got chance to work out of India in year 2005. In this time his financial condition is slowly
growing up. Then he stared to purchase land in his home town.
The main turning point in his life was year 2008 in this year he had purchased 3
hectors land in Hingangaon. After purchasing this land all financial condition goes down
then he think that give this land on rent basis for this purpose he had put advertisement.
One person was replied to this advertisement but he wants this land but not on rent basis.
Finally he decided that to resale this land but at the same time something different happen
in his life.
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At the same time one call was come on his mobile from AnupJetiya. He is also
working in pharmaceuticals and textile field. He is interested to see this land so he had
visited Hingangaon on 17th Jan. Then he asked DevanandLondheWhat you will do in this
land? He replied honestly I am planning to give work to persons who living in
Hingangaon. After his answer AnupJetiya gives him invitation to meet in Mumbai. On
25th Jan 2008 he and his wife meet AnupJetiya. This is the main turning point in his life.
AnupJetiya give important information that Chine supplies hand glows to all
countries. Then he had advised DevanandLondhe to start hand glows manufacturing plant
in his land. After this discussion he visited China to see how the product is manufactured.
After visiting China he decided to start glows manufacturing unit in Hingangaon.
For giving training needs some ladies then he started to visit villages, meet to head of the
village also to womens in village and giving them offer for new job. In earlier time no
one giving response then he announces one new offer that for daily 2 hours learning Rs
20 stiffened. Then more women gives response and on 5th May 2008 he started Payod
Industries in Hingangaon.
Now for giving training he had purchased 50 new machines and also started to
developing new shade for training. In this time he started to manufacture some samples.
At the same time AnupJetiya were going to Japan. He had dispatched some samples with
Anup to show in Japan. Within few days Anup called him and told that his samples are
rejected. He told that glows are not up to the mark. But he is expert in disaster
management he find solution on that he called some expert from Mumbai to give training
to all workers. After doing all home work he send another sample lot in this time
customer accepted but before giving next order customer interested to visit organisation.
The customer visited organisation and he discuss with them. At the same time customer
not given the order he ordered only 400 dozen pairs of hand glows within 2 month. Then
till Dec. 2008 he completed his first order but henot aware about how to send this to
Japan. Finally he send this hand glows to Japan and customer accepted in all respect.
Now the business is actually growing up. The customer had given order of 24000
dozen pairs of hand glows. This one is the first big order. Then in April 2009 he had send
first 12000 dozen pairs of hand glows to Japan. In this time also one problem came
customer wants needle detect report of each packet. For this test needs separate machine.
So all are worked in night and got the report of all packets. After this again this container
was dispatch to Japan. Then the speed and confidence has been increased. At the same
time another customer from Japan ordered one container hand glows every month. So he
started to increase machines and map power. At the same time in Nov. 2011 there was
some recession in business because of sunami in Japan.
In this time he started to find out some customers from India. He had got one
customer from Chennai and Gurgaon. Now in India also Payod industries got place
Customer relationship management
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because in most of the company hand glows are used that manufacture by
Payodindustries.
Now a days 100 machines are given in home and 32 machines are still working in
industry and new 50 machines will come in industry. Till 2014 he is planned to give
machines in 2000 home.
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2.3 Plant layout:-
GENSET
COTTON GLOVE
CHECKING DEPT
OPEN SPACE
STECHING DEPARTMENT
PRESSING DEPT
CUTTING DEPT2
WASTE
MATERIAL
TURNING DEPT
MANAGER
TABLE
CUTTING DEPT-1
Garden
NEEDLE DETECTER
MACHINE
PACKING DEPT
GUEST
ROOM
Recep
tionist
STORE ROOM-1
STORE
ROOM2
CANTEE
N
SECURITY
ROOM
ShindewadiRoad ,Hingangaon.
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CABIN
TOILET
BVDU,IMRDA.SANGLI
Company Name-
: Payod Industries
Mailing Address-
: A/p Hingangaon,
Taluka:-KawatheMahankal,
District: -Sangli, 416405,
Ph No: 02341 226124,
Mob No.9822191233, 95270027007
Email:-payodindustries@yahoo.com ,
devanandlondhe@yahoo.com
270351101192
Date of Issue-
ABIPL9562F
ICICI
Payod Industries
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expert for national & International organizations From
last 4 years, working in textile manufacturing
Vision by- To change socio-economical lives of rural community
creating employment opportunities
Objectives-To create sustainable employment opportunities in
KavatheMahankaltulaka of Sangli district
To design, manufacture various kind of safety
products like cotton, knitted gloves, caps, mask,
aprons, jackets, helmetsetc for domestic and export
market
Target Group-
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Our products -
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Last Five years Business Financial Position:
Financial Year
2011
2012
2013
2014
2015
Profit/Loss
-54155.87
452666.93
631175.58
33741.73
320669.71
Financial Position
800000
600000
Financial Position
400000
200000
0
-200000
At the initial stage company was in loss but since last Four years company covered that
loss & today in 2015 company is in profit with the Rupees 320669.71/Current Buyer
Black Rose Industries, Mumbai
Accent Industries ltd, Kolkata, Chennai, Gudgeon
Midori Osaka, Japan
TATA MOTORS CVBU & CPBU Pimpari ,
TAL-Manufacturing solutions Chinhwad
Proposed Buyer
TATA MOTORS Sanad, Dharwad, Lacknow , Pantanagar, Jamshedpur
Thermax Pune ( Annual contract )
Forbes Marshall Pune
Dealership for Pune
Accent Industries Ltd Kolkata
Products are
Leather glove
Customer relationship management
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Plastic glove
Rubber glove
Special purpose glove
Safety shoes
Jacket
Knee pads
Membership
DICCI ( Dalit Indian chambers commerce &Industries), Pune.
MEDC-(Maharashtra Economic X Development Council)
Supporting person/ organization
Mr AnupJatia
Black Rose Industries Pvt Ltd
144, Mittal Tower, Nariman Point
Mumbai,
Ph No- 022-43337200
Mr BasantGoenka
Accent industries Ltd
Parle, Mumbai
Ph No.022 23462311
Consultant
Adv. Mr.HarshvardhanChougule
Charted Account
1074, Umanarayan Complex
Harbhat Road, Sangli, 416 416
San_harsh555@rediffmail.com
Dr Vilas Kulkarni
Human Resources Consultant
Maharashtra Bank colony,
Dandekarbridge , Pune
Ph No 9822849498
ErVivekKulkarni
Register valuers
Shop No: 3/4 , Regent Plaza, Patil Lane,
College Rd, Nashik-4
Ph No 0235 -2576365, 9823021625
Mr Prasad Sevekari
Planning, documentation consultant,
Customer relationship management
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Mahatma society ,Kothrud, Pune
Ph no 9890299876
Mr Raju Swami
Insurance Advisor
Hingangaon, KawatheMahankal,
Sangli
Ph no-7588628315
Mr ShabbirMotiwala
Production Advisor
Shiwadi, Mumbai
Ph No9869401769
Dr MinakshiThorat
Gender Consultant
Pune
Ph No 9823199365
Industrial Garment Training Centre :
Well equippedIndustrial Skill Training Center running with help of MoRD, GoI, &
IL&FS and Director of Social Welfare, GoM , Walchand College of Engineering under
Community Polytechnic with support of Ministry of Human Resources . skill training
under National Livelihood Mission.
Customer Reference list.
Mr AnupJatia
Black Rose Industries Pvt Ltd
144, Mittal Tower, Nariman Point
Mumbai,
Ph No- 022-43337200
devanandlondhe@yahoo.com
Mr BasantGoenka
Accent industries Ltd
Parle, Mumbai
Ph No.022 23462311
TATA Motors CVBU
Mr O D Sood
AsstGenl Manager ( MPL&Purchase )
Material planning & Purchase
Tata Motors Limited
Customer relationship management
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Pimpari, Pune 411018
ors27532@tatamotors.com
Ph No -020 66132752
2.5Organization chart:-
Director 1
(Taking help of Consultants)
Director 2
Production
Master
Master
Master
Supervisor
Training
Supervisor
Cutting
Stitching
Worker
s
Turning
Checking
Worker
s
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Pressing
BVDU,IMRDA.SANGLI
CHAPTER 3
THEROTICAL BACKGROUND
3.1 Customer Relationship Management (CRM)
Customer Relationship Management is a business strategy with the outcomes that optimizes
profitability, revenue, and customer satisfaction by organizing around customer segmentation,
fostering customer, customer satisfying behaviours & implanting customer Centric processes.
Customer Relationship Management principally revolves around marketing and begins with a
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deep analysis of Consumers behaviour. It used IT to gather data. Which can be used to develop
information required to create more personal interaction with the customer analysis and
refinement in order to enhance Customers life time Value with the firm (CLV)?
Simply customers Relationship Management can be viewed in a four principle ways firstly it is
a contemporary response to the emergency climate of unprecedented customer churn, waning
brand loyalty and profitable. Secondly, Customer Relationship Management is central to the
task of making an organization customer centric. Thirdly Customer Relationship Management
is the most certain way increase value to the customers and profitable to the practicing
Organizations.
Customer Relationship Management is the IT face of the business process that aim to establish
enduring mutually beneficial relationships with customers order to drive customers relation
value and profitability up (Anton 1999, Brown 2000)
Relationships marketing essentially represent a paradigm shift within marketing away from an
acquisition / transaction focus toward retention / relation focus.
There has been a shift from a transaction to a relationship focus in marketing. Customers
become partners and the firm must long-term commitments to maintaining those relationships
with quality, service & innovation.
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Today, particularly for the companys best 3-Cs, i.e. Co-operation, Communication and
Courtesy (the tone of conversation) has changed from customer acquisition to retention. This
requires a different mindset acquisition to retention. This requires a different mindset and a
different and new set of tools. A good thought experiment for an executive audience is to ask
them how much they spend and / or focus on acquisition versus retention activities. While it is
difficult to perfectly distinguish the two activities the answer is that usually acquisition
dominates retention.
The primary goal of Customer Relationship Management is to build and maintain a base of
committed customers who are profitable for the organization. To achieve this goal, the firm will
focus on the attraction, retention and enhancement of customer relationships.
At this number of relationships grows, the loyal customers themselves will frequently help to
attract new customers with the similar relationship potential.
Loyal Customers not only provide a solid base for the organization, they may represent growth
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potential.
Customer
goals
relationship
marketing
Figure
illustrates the goals of relationship marketing graphically. The overriding goal is to move as
many profitable customers up through the pyramid from being newly attracted customers
through to being highly valued, enhanced customers.
Effective Customers Relationship Management has the ability determine which customers are
more profitable determine what drives that the profit, ability also know which are not profitable
and being able to build the business models, tactics, farming the policies to ensure future
profitability from such customers.
Every Companys game plan includes G-Spot i.e. goals, strategies, plans, adjectives & tactics.
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Goals
Strategy
Plans
Objective
Tactics
Goals - Includes things like profitability, high customer satisfaction & retention.
Strategies - To achieve year goals, you establish strategies such as designing innovative
products focusing on international markets, establishing long term relationship with customers.
Plans - Hiring top product engineers are a plant to achieve innovative product in future.
Objectives - There are measurable goals of each plan like to maintain 60% rate or lower
product return rate less than 20%
Tactics - Tactics are how you will achieve the adjective that are implementation of plans of egg.
To create data warehouse to compile all customers information.
1)
2)
3)
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4)
5)
6)
7)
A satisfied customers in 10 years will bring 100 more customers to company. It costs 7 times
more to attract a new customer than to serve an old one.
Customers Satisfaction
Return Relationship s
Competitive advantage
Number of Consumers
Retention rate
Assessment in measuring Customers value
Impact of sales performance
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Time to serve
20% on the companys loyal customers account for 80% of its revenues (Paretos Principle)
Berry and Pars Raman (1991) propose that customer relationship mgt. Concerns attracting
developing and retaining Customers Relationships.
Berry stressed that the attraction of new customers should be viewed only as intermediate step
in the marketing process. Solidifying relationship, transforming indifferent customers into loyal
once and serving customers as clients should also be considered as marketing.
Assuming they have a choice, customers will remain loyal to a firm when receive greater value
relative to what they expect from competing firm. Perceived value is the customers overall a
assessment of the utility of a product based on a perceptions of what received and what is given
Consumers. Is more likely stay in a relationship when the gets (quality, satisfaction, specific
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benefits) exceed the gives (monetary and non-monetary costs). When firms can consistently
deliver value from the customers point of view, clearly the customer benefits and has an
incentive to stay in the relationship.
For example, you may choose to stick with your current bank even when you learn of an
attractive offer at a competing bank because.
(1) You feel comfortable in the relationship. (2) You know what to expect, (3) you have a good
working relationship with your personal banker, and (4) you know youll be taken care of even
if you have an unusual request. Research has uncovered specific types of relational benefits that
customers experience in long term service relationships including confidence benefits, social
benefits, and special treatment benefits.
CONFIDENCE BENEFITS
These benefits comprise feelings of trust of confidence in the provider, along with a sense of
reduce anxiety and comfort in knowing what to Expect.
An excellent example is the case of dual-career families, for whom the decision about who
should care for their children during the workday in one of the most important decisions they
make. Once they have identified and established a satisfying relationship with a good caregiver
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(whether it be an individual, a day care centre, or a preschool) family stress is reduced and the
quality of family life is improved. Should something happen that requires a change in
caregivers, or should the relationship quality deteriorate for any reason, family stress levels
immediately increase. Thus, a stable relationship with a good child care provider is directly
reflected in quality of life.
SOCIAL BENEITS
Over time, customers develop a sense of familiarity and even a social relationship with their
service providers. These ties make it less likely that will switch, even if they learn about a
competitor that might have better quality or a lower price.
In some long-term customer / firm relationships a service provider may actually become part of
the consumers social support system. Less common examples include proprietors of local
retail stores. Less common examples include proprietors of local retail stores who become
central figures in neighbourhood networks; the health club or restaurant manager who knows
her customers personally; the private school principal who knows an entire family and is
special needs. These types of personal relationships can develop for business-to-business
customers as well as for end consumers of services.
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Special treatment includes such things as getting the benefit of the doubt, being given a special
deal or price, getting preferential treatment.
The benefits to an organization of maintaining and developing a loyal customer base are
numerous. They can be linked directly to the firms bottom line. As consumers get to know a
firm and are satisfied with quality of this services relative to that of its competitors, they will
tend to give more of their business to the firm. And as customers mature (a terms of age, life
cycle growth of business), they frequently require more of a particular service.
LOWER COSTS
There are many start up costs associated with attracting new customers. Their include
advertising and other promotion costs, operating costs of setting up accounts and systems, and
time costs of getting to know the customer. Sometimes these initial costs can outweigh the
revenue expected from the new customer in the short term. A prime example occurs in the
insurance industry. Typically the insurer doesnt recover its up front selling costs until the third
or relationship, thus, from a profit point of view there would seem to be gear incentive to keep
new customers once initial investment has made.
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When a product is complex and difficult to evaluate, and there is risk involved in the decision
to the decision to buy it - as is the case with many services - consumers most often look to
others for advice on which providers to consider. Satisfied, loyal customers are likely to
provide a firm with strong word-of-mouth endorsements. This form of advertising can be more
effective than any paid advertising the firm might use, and has the added benefit of reducing
the costs of attracting new customers. Further, customers that show up based on a referral tend
to be better-quality customers (in terms of profitability, likelihood of being loyal) than are
customers who are attracted by price promotions or a new advertising campaign.
3) To create loyalty
This is the process of convincing a customer to stay with the organization at the point they are
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discontinuing service or commencing them to rejoin once they have left.
Of the four categories of campaigns, win back is the most Sensitive, Research indicates that
win - back campaign is 4 - times more likely to succeed if contact is made within the first week
following a defection than if it is made in the fourth week. Selectivity is the other essential
characteristic of a successful win - back campaign.
The targeting of win back campaign is more e difficult because many companies are poor at
defining and identifying lost customers & they have no reliable data base.
Sometimes the relationships ends because of high price or wrong product, so win back can be
initiated when these issues are resolved. Win back is hardest if the customer left due to poor
services, unless the competitor service is even worse.
2) PROSPECTING
Prospecting is the effort to win new, first time customers. A part from the offer itself, the three
most critical elements of a prospecting campaign is segmentation, selectivity & source. It is
essential to develop an effective needs based segmentation modes that allows the organization
to effectively target the offer without this focused approach, the organization either fails to
achieve an adequate acceptance or rate an offer or spends too much on promotions, advertising
& concessionary pricing it is advisable to achieve a 95 % confidence rate before Embarking on
Customer relationship management
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a prospecting effort.
Selectivity is as important to prospective as it is to win back Needs based segment defines what
the customer wants from the organization and the profit based segmentation, defines how
valuable the customer is and helps the organization to decide how much it is willing to spend to
get that customer. Preserving customer credit ratings is one of the techniques that an
organization can use to determine the later.
3) LOYALTY
Loyalty is the category in which it is most difficult to gain accurate measures. The organization
is trying to prevent customers from leaving and uses three essential elements
a) Value based segmentation - It allows the organization to determine how much it is willing to
invest in retaining a customers loyalty.
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b) Needs based segmentation - Once the customer has passed value based segmentation, the
organization can use needs based segmentation to offer a customized loyalty program.
c) Predictive chum models - Using vast amount of demographic data and usage rate available
for the Existing base of customers which helps the forecasting customer attribution Through the
use of advanced data-mining tools, an organization can develop models that identify and
potential customers who can be targeted for the loyalty campaign or offered alternative product.
The purpose is to identifying complementary offering that a customer would like for e.g. A
basic long distance customer could be a co indicates to buy internet access.
Customers need bases segment; usage pattern and reaction to previous contacts / interaction
determine the nature of the offer. Once the competition of the offer is determined and the
contact medium is agreed to, then the organization directly presents that offer to the customer.
Up selling is similar but, the organization offering a complementary product, the organization
offers an enhanced one. E.g. - Replacing an analogy data line with ISDN.
Cross sell / up sell campaigns are important because the customer targeted already has a
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relationship with the organization. They are less likely to see the offer as a commodity and are
thus more willing to pay a premium for it. In financial terms, when a customer accepts a Cross
Sell or Up Sell offer, he begging to become much more profitable.
1) Do you want to increase the number of customer by X - Fold or you want to check the
customer retention rate goes up X-percent to X - 1 %.
3) Do you want to establish the capacity to measure the lifetime value of the customers so you
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can decide how to spend your carefully managed available funds for sales &marketing?
5) Do you want to curtail the pricing Structure to attract & retain the Customers?
6) Increase profitability.
7) Reach Customers with targeted offers in the most cost effective way
8) Do you want to reduce cost per transaction, customer service cost & customers service time.
Customer Relationship Management is not right for every Company, thus it is advisable for the
Company to begin by clearly detaining the business issues & needs and then determine whether
Customer Relationship Management can and should be a part of the solution. Customer
Relationship Management strategies that are clearly linked to business objectives has much
greater likelihood of success.
The costs required to introduce and implement Customer Relationship Management cannot be
Customer relationship management
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overlooked, it deserves prime attention because the system must be remunerative. It must at
least cover its cost.
Involve right customers & implement retention & loyalty programmers. In order to leverage
relationships Customer Relationship Management data warehousing and mining must be
integrated to the goal of right customer identification and their sharp profiling. What is required
is to devise a database that pulls information from every department from sales to customer
support and creates a unified report.
Lifetime value of a customer is a concept or calculation that looks at customers from the point
of view of their lifetime revenue and profitability contributions to a company. This type of
calculation is obviously needed when companies start thinking of building long term
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relationships with their customers. Judy what is the financial value of those long term
relationships?
''If companies knew how much it really costs to lose a customer, they would be able to make
accurate evaluations of investments designed to retain customers. Unfortunately, today's
accounting systems do not capture the value of a loyal customer''. One way of documenting the
dollar value of loyal customers is to estimate the increased value or profits that accrue for each
additional customer who remains loyal to the company rather than defecting to the competition.
This is what Bain & Co. has done for a number of industries, the
Percentage increase in profits when the retention or loyalty rate rises by 5 percentage
points.The increases are dramatic, ranging from 35 to 95 percent. These increases were
calculated by comparing the net present values of the profit screams for the average customer
life at current retention rates with the net present values of the profit streams for the average
customer life at 5 per cent higher retention rates.
A somewhat less complex yet equally convincing approach to understanding the lifetime value
of a customer is simply to multiply out the customer's average dollar purchases over the
average lifetime of the customer in a particular industry. The numbers can soon become very
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large. Tom Peters used this approach to calculate the lifetime value of his small firm as a
customer of Federal Express, as follows:
Tom peters estimated that his 20-person office had approximately $ 1,500 per month in
business with Federal Express. Assuming a 10-year average lifetime for a customer in the
express mail industry, the value of his firm to Federal express becomes:
Going even further, he estimated that in this industry a happy customer will create at least one
new customer via word of mouth:
Thus the value of his company's business for Federal Express was about $ 360.000.
Peters also estimated that the average Federal Express delivery person stops at 40 businesses
the size of his each day:
$ 360,000/ company x 40 companies = $14,000,000 Thus the average employee are Federal
Express is managing a $14,000,000 portfolio of lifetime business for the company.
Any customers are too costly to do business with and have little potential to become profitable,
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even in the long term. While companies may want to treat all customers with superior service,
they find it is neither practical nor profitable to meet (and certainly not to exceed) all customers
expectation. To build and improve upon traditional segmentation companies are now trying to
identify segments-or, more appropriately, tiers of customers that differ in current and / or future
profitability to a firm. This approach goes beyond usage or volume segmentation because it
tracks costs and revenues for segments of customers; thereby it tracks costs and revenues for
segments of customers, thereby capturing their financial worth to companies. After identifying
profitability bands, the firm offers services and service levels in line with the identified
segments. Building a high-loyalty customer base of the right customers increase profits.
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CHAPTER 4
DATA ANALYISIS AND INTERPRETATION
1. Known about PayodIndustries.
Respondent
Sr. no.
Options
News Paper
12%
By Reference
28%
Marketing Executive
20%
Telephonic Marketing
10
40%
25
100%
Total
Percentage
40%
28%
20%
12%
Respondant
Interpretation
From above table it shows that out of 25 respondents, 40% respondents says that
Telephonic Marketing, 28% of the respondents says by reference, 20% through Marketing
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Executive, 12% of the respondents says that they know aboutPayodIndustries, Hingangaon
by Paper ad.
Options
Respondents
Percentage
Daily
16
64%
Once a Week
20%
Twice a Month
16%
Once a month
0%
Occasionally
0%
25
100%
Total
(Source Primary Data)
Graphical Representation
Graph No: 4.2
70%
64%
60%
50%
40%
30%
20%
20%
16%
Respondant
10%
0%
0%
0%
Interpretation
From above table it is seen that out of 25 respondents, 64% of the respondents visit
PayodIndustriesDaily, 20% of the respondents visit once in a week, 16% visittwice a month.
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Options
Respondents
Percentage
Yes
23
92%
No
8%
25
100%
Total
(Source Primary Data)
Graphical Representation
92%
90%
80%
70%
60%
50%
Respondant
40%
30%
20%
8%
10%
0%
Yes
No
Interpretation
From above table it is seen that out of 25respondents, 92% of the respondents regularly
purchase the product from PayodIndustries, 8% of the respondents not regularly purchase the
product from PayodIndustries.
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Respondents
6
14
3
2
25
Percentage
24%
56%
12%
8%
100%
Graphical Representation
Graph No. 4.4
56%
60%
50%
40%
30%
Respondant
24%
20%
12%
8%
10%
0%
Interpretation
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From above table itindicate that out of 25 respondents, 56% of respondents
Satisfied,24% of respondents Highly satisfied, 12% of the respondents Dissatisfied and 8%
respondents are Highlydissatisfied with pricing policies of PayodIndustries.5.Supplylead
time of PayodIndustries.
(Source
Data)
Graphical
Sr. No.
Options
Respondents
Percentage
Good
12
48%
Average
10
40%
Poor
12%
25
100%
Total
Representation
Graph No: 4.5
60%
50%
48%
40%
40%
30%
Respondant
20%
12%
10%
0%
Good
Average
Poor
Interpretation
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BVDU,IMRDA.SANGLI
The above table shows the supply lead time of the PayodIndustries. Out of 25
respondents, 48% respondents feel that the supply of product is good, 40% thinks it is
average in PayodIndustries. 20% respondents say poor about it. 6. Proper record keeping.
Sr. No.
1
Options
Yes
Respondents
23
Percentage
92%
No
8%
25
100%
Total
(Source Primary Data)
Graphical Representation
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
92%
Respondant
8%
Yes
No
Interpretation
From above table it is seen that out of 25 respondents, 92% of the respondents says
Yes that means data base kept properly by the company, and8% says No.
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7. Mediumofan order.
Sr. No.
Options
Respondents
Percentage
By Post
0%
Personal Visit
12%
Sales representative
0%
Telephone
16
16%
By Mail
18
72%
25
100%
Total
(Source Primary Data)
Graphical Representation
Graph No: 4.7
12%
16%
72%
By Post
Personal Visit
Sales representive
Telephone
By Mail
Interpretation
From above table it is found that out of 25respondents, 72% respondents use mail to
place an order, 16% respondents use telephone medium12%respondentsthey gives an order
personally.
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Options
Respondents
Percentage
Yes
0%
No
25
100%
25
100%
Total
(Source Primary Data)
Graphical Representation
100%
40%
Respndant
30%
20%
10%
0%
0%
Yes
No
Interpretation
From above table it is found that out of 25 respondents, 100% respondents says that
PayodIndustriesdoest facilitates of online purchasing.
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9. Reason for purchasing.
Sr. No.
Options
Respondents
Percentage
Easy to Reach
4%
Price
28%
14
56%
Social cause
12%
25
100%
Total
(Source Primary Data)
Graphical Representation
Respondant
12%
4%
Easy to reach
28%
Price
Good quality product
Social cause
56%
Interpretation
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From above table it seen that out of 25 respondents, 56% of the respondents
purchasing at Payod Industries because of Good quality product, 28% of the respondents says
because of Price and 12% says Social cause because through this hand gloves making unit
they are providing income source for physically handicapped and disadvantaged class people
of rural area and women.10. Query response.
Sr. No.
Options
Respondents
Percentage
Yes
21
84%
No
12%
Sometimes
4%
25
100%
Total
(Source Primary Data)
Graphical Representation
84%
80%
70%
60%
50%
Respondant
40%
30%
20%
12%
10%
4%
0%
Yes
No
Sometimes
Interpretation
From above table it is seen that out of 25 respondents, 84%respondents says
that PayodIndustriesentertain queries in a proper manner, 12% says No and 4% says
SometimePayodIndustriesentertain queries in a proper manner.
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11. Time period connected with Payod Industries.
Sr. No.
Options
Respondents Percentage
0-2 Years
24%
2-4 Years
10
40%
36%
25
100%
Total
(Source Primary Data)
Graphical Representation
36%
24%
0-2 years
2-4 years
40%
Interpretation
From above table it shows that out of 25 respondents, 40% of the respondents say that
they are using products of Payod Industries from 2-4 years, 36% of respondents says that they
are using product from more than 4 years and remaining are from 0-2 years.
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12. Customer relationship.
Sr. No.
Options
Respondents
Percentage
Highly satisfied
20%
Satisfied
16
64%
Dissatisfied
12%
Highlydissatisfied
4%
25
100%
Total
(Source Primary Data)
Graphical Representation
70%
60%
50%
40%
64%
30%
20%
10%
20%
12%
0%
Respondant
4%
Interpretation
From above table it seen that out of 25 respondents says, 64% respondents are Satisfied with
customer relationship of company, 20% respondents are highly satisfied, 12% are dissatisfied
and 8% respondents are highly dissatisfied.
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13. Excellent customer service at any point of contact
Sr. No.
Options
Respondents
Percentage
Yes
21
84%
No
0%
Maybe
8%
Not sure
25
100%
Total
(Source Primary Data)
Graphical Representation
90%
84%
80%
70%
60%
50%
Respondant
40%
30%
20%
8%
8%
10%
0%
Yes
0%
No
Maybe
Not sure
Interpretation
From above table it is shows that out of 25 respondents, 84% of the respondents
saythatPayodIndustriesis able to give excellent customer service at any point of contact and
8% respondents says maybe and remaining says not sure.
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14. New product / changes in product awareness.
Sr. No.
Options
Respondents
Percentage
Yes
22
88%
No
4%
Sometimes
8%
25
100%
Total
(Source Primary Data)
Graphical Representation
Respondant
40%
30%
20%
4%
10%
8%
0%
Yes
No
Sometimes
Interpretation
From above table it show that out of 25 respondents, 88% of the respondents says Payod
Industries inform about the new product/changes in the product on time, 8% says Sometimes
and 4% says No.
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Options
Respondents
Percentage
Yes
22
88%
No
4%
Sometimes
8%
25
100%
Total
(Source Primary Data)
Graphical Representation
90%
80%
70%
60%
50%
88%
Respondant
40%
30%
20%
10%
8%
4%
0%
Yes
No
Sometimes
Interpretation
From above table it show that out of 25 respondents, 88% of the
respondentsfeelscompany holds informal/family sort of relations with customers, 8%
respondent feels sometimes and 4% respondents feels not having informal relations.
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Options
Respondents
Percentage
Yes
25
100%
No
0%
25
100%
Total
(Source Primary Data)
Graphical Representation
80%
60%
Respondant
40%
20%
0%
Yes
No
Interpretation
From above table it show that out of 25 respondents, 100% of the respondents says
that company delights customers by giving free gifts at the time of festivals.
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Options
Respondents
Percentage
Yes
23
92%
No
8%
25
100%
Total
(Source Primary Data)
Graphical Representation
Repondant
92%
30%
20%
10%
8%
0%
Yes
No
Interpretation
From above table it show that out of 25 respondents, 92% of the respondents says that
company ever supported to customer financially and 8% says no.
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Options
Respondents
Percentage
Yes
24%
No
19
76%
25
100%
Total
(Source Primary Data)
Graphical Representation
Respondant
30%
20%
10%
0%
Yes
No
Interpretation
From above table itshow that out of 25 respondents, 76% of the respondents says that
customers are not satisfy with availability of product at exhibition or company is not
displaying their products at exhibition. This will help them to promot their hand gloves
nationally.
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CHAPTER 5
FINDING
1. Researcher found that Payod Industries involved in Corporate Social Responsibility
(CSR) activity and manufacturing hand gloves with the vision Society & we grow
together.
2. As per the customer requirement company providing require quality hand gloves at
affordable prices and within stipulated delivery schedule.
3. Researcher found that most of the customers are buying their hand gloves from more
than two years.
4. Researcher found that customers of Payod Industries are given first priority terms
relationship building.
5. Researcher found that customers of Payod Industries are confident enough in terms of
service quality.
6. Researcher found that Payod Industries follows good CRM practices like awareness
of product.
7. Researcher found that the customers of Payod Industries having trust and loyalty on
their products.
8. Researcher found that Payod Industries offering personal benefits with their
customers consider them as partner.
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SUGGESTIONS
1. To increase the customer base Payod Industries may go for online selling of hand
gloves through their web portal.
2. To enhance customer relationship company may arrange customer meet/ buyer seller
meet.
3. Company may also go for exclusive outlets for product sale, if possible.
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CONCLUSION
Payod Industries where business meets social change is fulfilling dual objective of
business like earning profit and social cause by providing employment as well as
entrepreneur opportunity for rural women.
Payod Industries satisfy both international and domestic customers need
implementing proper customer relationship strategies to sustain in long run.
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