Customer Relationship Management (CRM) strategies are used to develop strong customer relationships by learning about customer needs and behaviors. CRM involves identifying customers, differentiating them based on value and needs, interacting with them through various channels, and customizing the business's behavior to meet individual customer needs. Effective CRM requires collecting customer data, storing it in a data warehouse, mining the data for insights, and performing market basket analysis to understand purchasing patterns and relationships. While CRM can increase sales, enhance relationships, and improve customer service, it also requires high costs, ongoing maintenance, training, and may not be feasible for small companies. The key to any business is satisfying customers.
5. RETAIL OVERVIEW
• 5th largest in the world
• Accounts 35% of GDP
• Organized retail 4%.
• Traditional to Shopping malls.
• Major Players-
• Reliance
• Aditya group; Tata etc.
6. WHAT IS CRM ?
• CRM is a strategy
_used to learn more about customer’s need &
behaviors.
_in order to develop strong
relationships with them.
8. STEPS TO INTRODUCE CRM
IDENTIFY YOUR
CUSTOMERS
DIFFERNTIATING YOUR
CUSTOMERS
INTERACTING WITH THE
CUSTOMERS
CUSTOMIZE YOUR
ENTERPRISE’S
BEHAVIOUR
STEPS
9. STEP 1:IDENTIFY YOUR CUSTOMER
First & Foremost step is to identify the customer.
It is crucial to know the customers details as
much as possible, their names,address,habits,
prefrences & so on……
10. STEP 2: DIFFERENTIATING YOUR CUSTOMERS
Customers are different in two principal
ways,they represent different levels of value &
have different needs…
1)Value.
2)needs.
11. STEP 3: INTERACTING WITH CUSTOMER
• Interaction is also crucial component of a
successful CRM initiative.
• Customer interact in many different ways with
many different areas of organisation…
12. STEP 4: CUSTOMIZE YOUR ENTERPRISE’S BEHAVIOR.
• Ultimately to lock a customer into a
relationship a company must adapt some
aspect of its behavior to meet customer’s
needs individually….
15. Customer Relationship Management
LOYALITY PROGRAMMAS
Loyal customers are the source of most profits
Less price sensitive
More purchases per customer – higher share-of-requirements
16. Customer Relationship Management
RETAIL CUSTOMER DATA
Customer Relationship
Management (CRM) is enabled
by the gathering and
warehousing of consumer data
Retailers gather customer data
from:
Frequent shopper or
shopper loyalty cards
Store credit cards
Identifiable tender
17. Customer Relationship Management
RETAIL CUSTOMER DATA
Retail customer databases are
organized collections of data about
individual consumers including:
Geographic
Demographic
Behavioral data
Purchase histories
Appended behaviors
Databases may enable retailers to gain a competitive
advantage
18. #
# NAME GENDER COUNTRY AGE TP/6M AMOU
NT
1201 JOHN M USA 24 9 1200
1202 HENRY M USA 32 3 400
1203 DAVID M HONG KONG 21 8 900
1204 EDDY M USA 53 1 500
1205 RIYA F USA 23 6 650
19. Customer Relationship Management
DATA WAREHOUSHING
Data warehousing is the coordinated and periodic
copying of data from various sources, both inside and
outside the enterprise, into an environment ready for
analytical and informational processing
Wal-Mart makes good use of its data warehouse. It
should. Experts estimate that it is second in size to
that of the U.S. government
20. Customer Relationship Management
DATA MINING
Data mining is the process by which insights are derived
from vast amounts of data, such as that contained in a
data warehouse.
Statistical algorithms are applied to customer data to
identify merchandise buying patterns and relationships.
21. Customer Relationship Management
MARKET BASKET ANALYSIS
A market-basket analysis is uses data mining
techniques to determine what predominant categories
individual consumers are buying.
Based on these analyses, Wal-Mart has changed the
traditional locations of several items:
Since bananas are the most common item in America’s
grocery carts, they sell bananas next to corn flakes (to help
sell more cereal) as well as in the produce section.
Kleenex tissues are in the paper-goods aisle and also
positioned among the cough and cold medicines.
Measuring spoons are in housewares and also hanging
next to Crisco shortening.
24. FACTS
• A Satisfied Customer will bring 100 more
Customers to the company.
• It Costs 7 Time more to attract a new
customer than to severe an old one.
• 20% of the company’s account for 80% of its
revenue.
• The Chances of selling to an existing
Customer are 1 in 2,the chances of selling to a
new customer are 1 in 16….
25. AS EVERY COIN HAS TWO SIDES….
CRM TOO HAS PRO’S & CON’S……
26. ADVANTAGES &DISADVANTAGES
Advantages
• Enhance relationship..
• Increase of Sales.
• New Selling
Opportunities.
• Provide better customer
Service.
• Create Detailed Profile.
Disadvantages
• High costs.
• Small Companies-Not
Possible.
• Requires Continuous
Maintenance ,Updation
of Information.
• Training cost increase.
