CRM For Retail Sector

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Submitted To:- Submitted By:-

Ms. Saniya Bhojwani Prachi Batham


Class:- FBM
• Customer relationship management (CRM) is a comprehensive
strategy to manage a company's interaction with current and
potential customers.

• It aims to establish long lasting and mutual relationship with


customers which will increase Customer value and optimize
profitability

• Various CRM programs have been developed which can


contribute an economic value to the company and gives
Competitive Advantage to improve customerservices.
CRM Market Revenue reached $27.5 B in 2015, up from $23.8 B in 2014 , $36.5 B
in 2017. The analyst forecast the CRM market reaching $46.4 B by 2019
So, Each year there is an increment in the CRM Software Revenue Forecast
1. CUSTOMER SATISFACTION
2. CUSTOMER RETENTION
3. CUSTOMER LOYALTY
4. CUSTOMER COMPILE
INFORMATION
Retailer use CRM concept to the followingreasons:
• To know their customer’s needs & wants in a
customize way _
• By continuously maintaining communication
with customer, retailer can knowtheir changing
demands & can bring innovativeproducts.
• To record Customer purchases
• To deliver the desired products quickly in the
hands of their customer _
• Gives Information regarding P/S or discount
being offered.
• By applying CRM , a retailer can know there
most profitable and less profitablecustomer_
• If there is a strong relationship between a retailer and a customer
then Retailer generates no. of benefits byCRM:
1. Generate Maximum Sales -by repetitive purchase of Loyal
customer
2. Greater sales ensures Maximumprofit level
3. By applying CRM concept , Retailer can ensure Customer
Satisfaction which lead to +WOM _
4. Cross selling- (Technique in which Retailer suggest additional P/S to loyal
customers during a buying process to increase revenue)
5. By using CRM ,Retailer can protect customer in competition i.e.
Loyal customer stay close to retailer even if they don’t get
appropriate P/S
Top satisfaction drivers for building strongrelationships

1. Person-to-Person experience
2. Store experience
3. Marketing and communication
4. Price and value
• CRM is an iterative process that turns customer data into customer loyalty
through different type of activities. Levy and Weitz described CRM in
retailing through a systematic process-
• Customer Database
 Histories of purchases
 Customer contact
 Customer preferences
• Approaches for collecting Information
 Asking for information
 Using frequent shopper card and creditcard
information
• Techniques to analyzeCustomer-
 Data Mining
 Market basket analysis
 Identifying market segments
 Identifying best customers –
 Lifetime value
 Customer PyramidApproach
 RFM analysis( Recency, Frequency,Monetary)
• Retaining the best customer (Customerretention)
 Providing incentives or discounts
 Special customer service
 Personalization
 Informal communication
• Converting good customers into bestcustomers
 Cross selling
 Add-on selling
• Dealing with unprofitable customer
Implementing CRM programs
• Stage 1 – Collecting information
• Stage 2 – Storing information
• Stage 3 – Accessing information
• Stage 4 – Analyzing consumer
behavior
• Stage 5 – Marketing more effectively
• Stage 6 – Enhancing the customer
experience
• Customer Focus
• Weak management
• CRM ProjectManagement
• Team members
• Data & Warehouse Requirements
• More emphasis oncustomer satisfaction
• Moreuse of IT to collect information timely
• Retailer should be flexible to bend its rules &
procedures in the customerfavor
• Retailer need to focus on informal relationships &
communications with customers
• Retailer must know the drivers forcustomer
satisfaction and dissatisfaction
• Retailers need to develop training programs to
understand CRM process and serve customers better
• Products in accordance withcustomer's
mindset.
• Multi-channel CRM
• Smart shopping
• Mobile CRM
• E-mail marketing and CRM
• Mash up CRM
• Social CRM
What s Good about Email Marketing
•Highly targeted
• Immediate
•Measurable
•Reach
•Cost Effective
A mash‐up is a web application
that combines data from more
than one source into a single
integrated view.

Content used in mash‐ups is


typically sourced from a third
party via a Widget or API (web
service).

Minimized application data


management
Reduced development effort

Make CRM SMARTER


•Changes in the Business Environment
• Customers becoming moredemanding
• Markets are saturated
•Databases today are huge:
• More than 1,000,000entities/records/rows
• From 10 to 10,000fields/attributes/variables
• Gigabytes and terabytes
•Databases are growing at an unprecedented rate
•Decisions must be made rapidly and with maximum knowledge
•Extremely large datasets
•Useful knowledge that can improve processes
•Sophisticated data search capability that uses statistical
algorithms to discover patterns and correlations in data.
• CRM today has become the synonym to success in business.
The retailers can effectively achieve it, if they identify the
opportunities to enhance customer value.
• Retailers can personally create programs and develop
products for each individual customer.
• In order, to create a healthy Customer-Retailer bond,
customer satisfaction and loyalty will lead to customer
lifetime value and retention in the long-term relationship
with each other.
• Thus, both will have a profitable and sustainable
achievement at the end of the day.

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