Presented By: Group 7

Mayank Shouche
Mudit Agarwal
Rifat Ahmed
Saurabh Bose
Tushar Shah
Vishal Sharma
 Automobile Industry Brief……………………4
 Need of CRM………………………………….......5-6
 Benefits of CRM………………………………….7-8
 CRM Objectives…………………………………..11
 SAP Best Practices………………………………13
 Automotive Industry Ecosystem…………..17
 Case studies……………………………………..20-26
 Conclusion…………………………………………..28
Customer Relationship Management,
Data Warehousing, Business Intelligence
leads to Broad-based customer value
creation and reinventing the customer.

Subroto
Bagchi
 One of the biggest and oldest industry in the world.
 51 billion cars were produced worldwide in 2009.
 Is very peculiar in its value chain.
 OEM don’t interact with customer directly.
 Traditionally the main customers for OEM are
dealers.
 Dealers are the point of contact between customer
and brand.
 The downstream supply chain works on push based
strategy.
 Consumers are getting increasingly well informed
and enjoy wide choice.
 Automobile purchase is a high involvement
purchase with less frequency.
 Auto companies need to know and understand
their customers.
 To effectively match their products and service
offers with the customers they want to target.
 Information as input to production scheduling and
also product development cycle.
 For channel integration cross all networks.
 Form a closed loop customer and vehicle
interaction cycle.
 Incorporate end customer information and history
into sales processes.
 Need for seamless integration between OEM –
Dealers – Customers.
 Increase revenue and cut costs across the value
chain.
 Formulation of successful marketing strategies for
future growth.
 Retain the customer by increased Brand affiliation
and hence loyalty.
 Understand demand segmentation and convert
pre sales interaction into final purchase.
 More collaboration with dealers – important link
between brand and consumer.
 Enabling collaborative customer centric business.
 Path from ‘push’ manufacturing model towards
built-to-order service philosophy.
 With increasing competition and low margins,
better CRM is turning out to be source of
competitive advantage.
 Better and customized service means reduced
incentives for customer.
 Prospect Sales Cycle
Customers Lost sale
Consideration Brand
Set Enquiry Demo Negotiate Order Delivery Sales CSI

Repurchase
Loyalty
Avoidable Warranty Repair
Defections
Natural Scheduled Services/
Defections Repurchase Inspections
Consideration
After Sales CSI
Sales Retention/ Service/ Owner
Customer
Detection Cycle Cycle
Market Awareness Complaints
Dealer
Vehicle Defection
Recalls
Equity Positioning on Brand
Defection
Finance Contract Repairs
Role of analytical CRM:
• Predictive capability to determine customer behavior to aid product and
service decision making.

• Information regarding customer retention or attrition helps identify

customers worth targeting for retention campaigns.

• Customer segmentation that leverages data to create accurate categories

for use in marketing strategies.

• Market automation that combines analytics with campaign management

functionality to help drive a more effective and efficient marketing
campaign.

• Management decisions.
 • Leading CRM solution provider
 SAP • Povides solutions to optimize sales leads, gain business
insight, improve service, and increase revenues.
 AutoCRM • Clients: Daimler, Mercedez, Ford etc.
• Provide high quality automotive advisory services, tools,
processes and knowledge sets for the global automotive
 Siebel Automotive industry.
 Terrasoft CRM
• Owned by Oracle.
• One of the most successful CRM solutions for larger car
• A leading supplier of integrated CRM solutions, offering
 Autobase dealerships.
•services
Clients: TATA
to companies
Motors, of
Subaru
different
etc. sizes and industries.
••Offers
Established in the year solutions
CRM customized 1988. for 22 industries and
• One of the powerful, easy-to-use automotive CRM
available in 10 languages.
•available to autoMotors,
Clients: Toyota dealers.BMW etc.
•Clients: Ford, Ferrari, GM etc.
SAP Leadership in Automotive Industry

1,600 Automotive 87% coverage within

Customers in 89 Fortune 500
countries companies

SAP Installations

24%
Sales & Service
53% OEM
23% Supplier
Suppliers & Engineering Procurement Manufacturing Sales & Customer Consumer &
Partners Distribution Service Channels
OEM Relationship Management
Collaborative Engineering
Key A/C Management
Time to market
New Product development &
introduction
Lifecycle Data Management
Supplier Collaboration
Strategic Sourcing
Operational Procurement & Inbound logistics
Make to stock/Make to order
Supply to line
Outbound logistics
Enterprise Asset Management
Manufacturing
Sales Order Management
Demand & order scheduling
Order execution & receipt settlement
Customer Service
Warranty Management
Service parts planning
Service parts execution

Enterprise Management & Support

Analytics
Financials
Human Capital Management
Corporate Services
Operations Support
 Industry expertise takes patience & determination.

 You cannot buy yourself into industry leadership.

 Continuous customer contact & projects are key to

development of organization’s solutions.

 Continuous enhancement of the solution is the key

to success.
Supplier-
Tier 2
Distributors
Supplier-
Tier 1
Dealers
Supplier-
Tier 2

Customers

Engineering
Supplier F&I
Service Industrial
Suppliers Aftermarket
 Supplier- Tier 2
Supplier- Tier 1
Supplier- Tier 2

Distributor/
3PL
Supplier – OEM Collaboration
Scheduling agreement processes with Forecast delivery schedule
Summarized JIT call & sequence JIT call
Self billing process management & Super Session
Warehouse management, Handling unit management, Packing &
quality management
OEM & supplier collaboration on Engineering Change Management
External Service Provider/Logistics Service Provider Management
Scheduling with Consignment Store
Aftermarket Service & Warranty
Management
Warranty processing with pre-crediting & post-crediting
Recall & warranty processing
Warranty processing with authorization
Service parts order fulfillment Dealer
Vehicle Management
Make-to-order process in VMS with/of vehicle configuration
Vehicle Management System integration with CRM
Customer

Industrial
Service Supplier
Aftermarket
 Case Study
MARUTI SUZUKI CRM
HERO HONDA CRM Initiative
Maruti created a landmark in CRM by launching a
website for its customer in 1998

Maruti is investing a lot of money and effort in building

customer loyalty programmes:
Maruti has aided customers by providing
•them
Round the clock services in most of the cities
Maruti Auto Card
the facility to bring their vehicle to a
•Maruti
A computerized
has call customer
monitoring system
“Maruti TruemadeValue”the experience
outlet and exchange it for
Maruti
dispatches
hassle
a new car,
Maruti free
has
aTrue
byandmobileValue
helped
paying
proper
MOS Outlet
vans
building They
difference.
customers
to the
customer
are
complain
customers
Maruti
satisfaction
offered
handling
atby
loyalty
cell
the
Call earliest. different revenue
Center
developing
discounts
under the in return.
CRM This helps
department. The
•stream
All MOS vans
in the are
formMUL managed
of Maruti by qualified
Insurance
them retain
CIC will help rapidly build and an
Maruti
Maruti
Maruti Finance Road
Authorized services
Dealers/MASS
customers pool of over 3 million Maruti
information
technicians
who are trained by Maruti in problem
Availability
owners as
diagnosis well as ofof easy
that finance
its prospective.
A product by Maruti Suzuki in collaboration with Citibank and Indian
Oil Corporation, launched on April 19 2006 in 36 cities across India for
new as well as existing customers of Maruti car.

Reason of being called a

LOYALTY- CUM-REWARD PROGRAM

Sell Maruti
Retain old and Provide special Create edge
accessories,
make new privileges and over its
finance,
customers benefits competitors
insurance

Value of 1 Auto Point earned: Re. 1.00/-

 Hero Honda has been the biggest motorbike
manufacturing company but still it was lacking in
customer relations.
 Vijay Sethi, company’s CIO, developed the already
existing Hero Honda passport program to evolve it
into a much sophisticated and efficient, the
GOODLIFE program.
• Most of the customer’s
don’t associate old economy
motorbike manufacturer’s to
new age strategies. • Sharpen the image of
hero honda as a modern
• Focus was on making company.
durability and reliability.
• Introduced transparency
GOODLIFE
•Company was doing great to customers, dealers and
in sales and service but a the company.
little in customer relation.
• Increased customer
• Already manufacturing coverage
the highest no. of bikes. So
the next level should be
developing customer
relation
 Direct connectivity to customer through
personalized channels.
 Real time interaction with vehicles for fault
detection.
 Automatic appointment with service provider
on detection of fault.
 Customers will be able to buy exactly what
they want.
 Configure the car in terms of color,
transmission, and other features.
 Auto industry is finally catching up with the
changing face of customer interaction-largely for
its own survival.

 High competition makes profit margin very less in

small car Industry, so CRM helps reducing
marketing cost and increasing brand equity.