Advantages Accruing To Future Retail Due To CRM: Increased Revenues

ADVANTAGES ACCRUING TO FUTURE RETAIL DUE TO CRM
 Increased Revenues
1. Increase ticket size: As can be seen from the annual report of FY 2016-2017, the average
ticket size has decreased by 11% from around Rs. 1298 to Rs. 1155. This ticket size can be
increased considerably by CRM initiatives as discussed before.
2. New customers: The lure of advantages offered by the new initiatives taken in context of
CRM can lead to a tremendous increase in the acquisition of new customers. Going forward,
we are going to see a consolidation in this segment and the more customers we acquire, the
more advantageous position we will be in.
3. Customer retention: CRM activities are absolutely imperative in today’s fast pacing world to
retain the existing customers. As customer retention increases, it indirectly also leads to an
increase in the ticket size.
 Marketing/ Personal Selling
1. Cross-selling and Upselling: It helps in cross selling of products to our customers. Given the
vast number of products dealt in by Future Group, it might also help in upselling of products
if the customers are willing to spend higher and have higher disposable income.
2. Decreased Marketing costs: If the CRM activities are implemented in an effective manner,
the marketing costs tend to reduce by a considerable amount as customer retention goes
up.
3. It also helps to simplify the marketing and sales processes as it is streamlined.
4. Customer Profiling: Future group has a large base of customers and as a result, customer
profiling becomes very important for direct marketing and it always helps to personally
recognize permanent customers which gives them a feel good factor.
5. Identification of customer buying habits: CRM integrates various processes which helps to
identify the customer habits through advanced algorithms and thus helps serve the
customer better and in a more effective way.
 Better Customer Service
1. Value and Service: CRM helps in providing the customers with what they are looking for and
hence provides a value for money solution. The better service encourages repeat purchases
and helps in customer retention.
2. Helps staff: The staff get to know about the customer habits beforehand and can close the
deal faster.
3. Competing on service: Majority of the products that Future Group deals in are commodity
type or at least have a large number of competitors and as such, going forward, the
competition will not be on the basis of price only but the winner will be the one who
provides a superior service. Call centres also become more efficient due to CRM.
 Better Decision Making: CRM plays a major role in decision making and more or less,
every important initiative or strategy is incomplete without it.
 As per the Economic Times – Nielsen Most Trusted Brand Survey, Future Group gained 13
ranks from the previous year to be ranked 14th among the most trusted brands in the
country.
CHALLENGES IN IMPLEMENTING CRM AT FUTURE GROUP
1. Diversity: Future Group is a colossal organization. It is spread across various geographies
across India and caters to large number of income segments. Understanding the problems
and opportunities across each segment is a challenging task and takes tie before a proper
structure can be put in place.
2. Changing environment: The consumer preferences are changing at apace never seen before
and going forward we expect it to increase only. Therefore, execution of business expansion
and CR activities becomes distorted and plans need to be changed frequently.
3. Tracking Performance: The success due to CRM activities is very difficult to gauge. There are
many factors at play at the same time and one cannot segregate the impact of a single
program. On talking to associates at Future Group, they revealed that collection of
performance data, cost effectiveness measurement and finding profitability of each scheme
was extremely difficult if not impossible.
4. Software transition: The transition to new software was not so easy for the employees. The
employees had to be trained which led to an increased cost outlay. Moreover, it led to delay
in updating product and price information.
5. Ensure loyalty to brand: It has been observed that the majority of the customers are only
attracted and loyal to the rewards offered. Until they become loyal to the brand of the
company, CRM activities will have only temporary impact.
6. Unfamiliarity: The marketing specialists are not familiar with the factors that determine the
choice of loyalty programs.

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ADVANTAGES ACCRUING TO FUTURE RETAIL DUE TO CRM

 Marketing/ Personal Selling

 Better Customer Service

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