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Undertaken at
Session :2016-18
CRM AT MAX PACIFIC CORPORATION
LIMITED
EXECUTIVE SUMMARY
Logistics forms the system that ensures the delivery of the product in the
entire supply pipeline. This includes transportation, packaging, storage and handling
Max Pacific Corporation Limited was started in 1993. It started its business
as a door-to-door service in 1995 with 4 routes, 9 offices, 12 container mounted
vehicles and 20 employees. Max Pacific Corporation Limited Indias Leading
Logistics Company is renowned for its domain expertise and experienced manpower
in the LSCM sector.
The study is descriptive as the objectives and purpose is very clear. A sample
of 100 respondents is drawn from the population based on convenience sampling
method. The data is collected with the help of Specially Designed Questionnaire. The
tools used for analysis are Percentage Analysis and mean score.
The limitations are, the study is limited to the survey is restricted to the
customers of Max Pacific Corporation Limited Pvt ltd and time limit restricts detailed
survey work for this particular topic of research and Some customers have lack of
time, so they may not communicate properly.
From the findings of the study Demographic profile of respondents most of the
respondents annual turnover is more than 25 Lakhs and followed by and in the
service usage behavior and Majority (66%) of the respondents identified the Max
Pacific Corporation Limited through friends And Relatives and (80%) of the
respondents are satisfied with the way of handling goods and (85%) are satisfied in
the 3PL.
Also it reveals that the over all Satisfaction level of customers will recommend to
others and satisfied with the over all services provided with the Max Pacific
Corporation Limited
CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION
ORIGIN OF CRM:
Relationships are the essence of life. It is difficult to think about any society or
organization to survive without relationships. They are the invisible threads which
build a unique bond between individuals and organizations. On the one hand these
bonds may be as strong as iron pillars lasting for life time, whereas on the other hand
they are as delicate as feather which may be broken within no time. Managing
relationships is a very difficult and complex phenomenon. Organizations are realizing
the importance of the vital role played by relationships in achieving and maintaining
the cutting edge at the marketplace.
Long ago Peter F.Drucker had advocated that the purpose of any business is to create
customers. It is the customer, which gives an opportunity to the organization to serve
him or her. The success of any organization primarily depends upon the sustaining the
customer advantage that is retaining the customers for lifetime. Growing complexities
and uncertainties at the market place along with intensifying global competition are
forcing the business organization to invest in building customer relationships. New
and sophisticated marketing tool kits are being designed to attract, satisfy and retain
customers for achieving sustainable competitive advantage.
CRM has recently emerged as a strategic solution to modern business problems. It has
its roots in the age old business philosophy which recognizes that all business
activities must revolve around customers.
The term CRM was first coined in the early eighties by academics at various business
schools. One of the first on the scene was Dr. Jagdish Sheth who was at the Goizeta
Business School at Emory University in Atlanta.
CRM: Customer relationship management as coined by the Gartner Group, it
compasses sales, marketing, customer service, and support applications.
While the CRM term is fairly recent, it grew from a combination of terms like Help
Desk, Customer Support, ERP, Data mining. It evolved because none of the previous
terms could cover the topic well enough and because some of the terms (ERP) have
grown to be met with a great deal of distaste in the mouths of the business world.
CRM DEFINED:
The infrastructure that enables the delineation of and increase in customer value, and
the correct means to motivate valuable customers to remain loyal, to buy back again. -
Jill Dyche, The CRM Handbook, 2000 CRM (Customer Relationship Management):
A strategy (technology-enabled) in response to, and in anticipation of, actual customer
behavior. From a technology perspective, CRM represents the systems and
infrastructure required capturing, analyzing and sharing all facets of the customers
relationship with the enterprise. From a customer care perspective, it represents a
process to measure and allocate organizational resources to those activities that have
the greatest return and impact on profitable customer relationships.
In the early stages of the cycle, the leading supplier has the products or services that
are significantly better than those of its competitors. Customers are happy enough to
obtain them. It gains share and profitability. No matter how the other companies try to
compensate for the product or service weakness by relationship management, they
will lose.
Stage 2: Customer Focus
The high profits earned now attract competition, so several other companies begin
offering a similar product or service. Competition intensifies in the areas of features
and price. Companies try to maintain differentiation through the feature mix and
through branding. In consumer markets advertising expenditure increases
dramatically.
After branding and customer service the suppliers must aim to manage all aspects of
their relationship with customers in a coordinated way. It is now important to
recognize that the diversity in relationships with the customer must be given due
importance.
The relationship marketing approach now has to permeate everything the enterprise
does. Observing customers closely, working directly with them to address their needs
and requirements.
Conventionally, the supplier/buyer interface tends to be fairly limited with the one
real contact on a continuous basis between sales person and person responsible for
purchasing within the customers business. It is an interface between where both
parties seek to maximize the outcome in their favour, and rarely results in a win-win
situation. This type of relationship is given in the figure below. There is a single point
of contact as two triangles that only connect to a single point. It is a relationship that
is easy for competitors to break because it tends to be based on cost rather than
business development.
The alternative approach is shown in the following figure where there are multiple
points of contact between corresponding functions and processes within the buying
and selling companies.
The job of a relationship manager is to coordinate those multiple contacts and to seek
new ways in which further customer value can be created.
1. Zone Of Defection: where customers are extremely hostile and have the
lowest level of satisfaction.
2. Zone Of Indifference: where customers are not sure. They have a medium
level of satisfaction and loyalty towards the company.
4. Customers demands for customization are increasing with every passing day.
This has made companies shift their focus from mass production to mass
customization. The present scenario of customers using poorly
implemented multi channel strategies for living upto the expectations of
customers is bringing both customer satisfaction and customer loyalty down
the ladder.
SCOPE OF CRM:
The new CRM approach, whilst recognising these key elements still need to be
addressed, reflects the need to create an integrated cross-functional focus on
marketing - one which emphasizes keeping as well as winning customers. Thus the
focus is shifting from customer acquisition to customer retention and ensuring the
appropriate amounts of time, money and managerial resources are directed at both of
these key tasks. The new CRM paradigm reflects a change from traditional marketing
to what is now being described as customer management.
In many companies there is still confusion as to what CRM is all about. To some it is
about a loyalty scheme, to some it is about a help desk. To others it is about a
relational database for key account management and for others it is about mass
profiling the customer base without undertaking detailed segmentation. Relatively few
organizations have implemented an integrated approach, which addresses all the key
strategic elements of CRM. Only a small number of businesses have a clear idea what
should be done with information technology in order to successfully implement CRM.
To achieve success, businesses need to have the appropriate measurement systems and
marketing metrics in place to ensure their are effective in terms of their use of
customer-focused resources. Over the past two decades businesses have developed
sophisticated approaches to measurement in other functional activities within their
business - in Operations, Finance, IT and Human Resources. However, the Marketing
function may be the last bastion of inadequate and inappropriate metrics
In future marketing will need to create much stronger metrics so that strategies can be
evaluated rigorously.
A recent article by the Harvard Business Review reported that increasing customer
retention rates by 5% increased profits by 25% to 95%! In fact, it determined that
customer retention is the key to increasing profits. The article continued by stating that
quality customer support is one of five primary determinants of loyalty. The number
one reason why customers defect is the perception of poor service.
Effective CRM enables sales reps, service reps, and administrative staff and often,
accounting and executive personnel, to do their job better, faster, and with less wasted
paper and time. Prospects can be followed up quickly, and sales reps have instant
access to the exact data needed for effective closing. Marketing can be analyzed for
workability and improved to create the highest return possible on the marketing
dollar. In service, customers can be handled rapidly, and the exact nature of a problem
can be quickly located and handled.
The right CRM solution enables data to flow easily and quickly within an
organization, and in most cases includes the entire organization. The net result is
higher sales, happier customers and a much improved bottom line. The reduction in
costs due to improved personnel productivity, better sales follow up, improved
marketing and service, and an overall impressive growth in general organizational
efficiency sometimes produces almost immediate economic benefits.
The figures that corporations report of increased profits due to successful CRM
implementations range from 25% to 95%, attributable in many cases to less wasted
time and double work, and better organized schedules and data flows from staff in
every division of the company.
Many people assume CRM is all about technology. That's only part of the
story: CRM is also about the data an organization has and the wealth of
information in that data, and how an organization's people process and
leverage that data. While it is true that certain basic formulas exist for
successful sales and marketing, nevertheless, the variance between different
business models can vary hugely. A guitar manufacturer and a copier
manufacturer do, indeed, share many management points in common, but the
sales cycle, the service cycle, and the customer relationships of each are quite
varied.
The phrase, "know your customer, help your business," certainly applies to marketing
and CRM. Without a doubt, a key component of CRM database analysis and
implementation is marketing. To be effective, one would hope to have marketing that
reaches the right customer with the right message at the right time using the right
medium. But without having the data available regarding one's public and buying
patterns, marketing often becomes a black hole for wasted money.
Regarding service in general, the size of the organization has nothing to do with the
need to give its customers improved service. Although larger corporations do seem to
"get away" with poor service more easily than small to medium-sized businesses,
most of whom are battling stiff competition as the world becomes more automated
and the choices more plentiful, even some of the near monopolies will get the wake-
up call from smaller, more aggressive, more service-oriented companies who may
wind up taking away significant shares of their business.
People love friendly, prompt, and courteous service. It's what keeps customers coming
back year after year. And CRM software does play a significant role in not only
providing timely and effective service, but in doing so at a price that most
organizations can easily afford.
When a service call is handled, the specific problem and its solution can be added to
the database. Next time the same incident occurs the service rep can locate the item
and quickly provide the solution.
CRM software enables you to record each customer service as a Service Work Order,
including detailed records of how the Service Work Order was resolved. The system
provides flexible methods of billing, including by the hour, the month, the year, or by
the Work Order (service incident). Contracts can be written for service or service and
materials. Equipment can be tracked by warranty and serial number. And a flexible
service-scheduling feature enables you to easily add, view, and delete scheduled
service appointments. (For more detailed information about this product, download
the "Service Manager" tutorial and the live "Service Manager" demo.)
Service reps have easy access to sales, warranty, order, billing and inventory
information, enabling them to evaluate data and respond quickly to a customer's
needs.
Benefits
Better manage the complete customer lifecycle across all touch points.
Increase revenues by identifying and leveraging cross-selling opportunities
that are rooted in accurate customer data and solid employee training.
Technology can greatly assist in managing the data required to understand customers
so that appropriate CRM strategies can be adopted. In addition, the use of IT can
enable the necessary data to be collected to determine the economics of customer
acquisition, retention and life-time value.
Given the dramatic effect that improved customer retention can have on business
profitability, organizations need an approach that leads to greater customer loyalty,
enhanced retention and profitability.
Besides acquisition and retention, lifetime value will need to be identified by market
segment and needs to address how to improve it. Clearly improving retention can
have a huge impact on lifetime profitability. The business will also need to consider
how they will get the greatest benefit from their acquisition activities. To facilitate
improved acquisition, retention and lifetime value, companies need to utilize the
appropriate technology tools to assist this process.
Where CRM is well understood as a concept, many board-level managers are still
unclear as to how a particular CRM approach should be cost-effectively implemented
and what technology options should be adopted.
The starting point for introducing or further developing CRM must be determined
from a strategic review of the organizations current position. Companies need to
address four broad issues: what is our core business and how will this evolve in the
future; what form of CRM is appropriate for our business now and in the future; what
IT infrastructure do we have and what do we need to support the future organization
needs; and what vendors and partners do we need to choose?
An organization should first examine its core business and consider how will it evolve
in the future. It then needs to consider the form of CRM that is appropriate for their
business now and in the future and what organization resources does it have to
support the business now and in the future.
Having identified the present and future focus of CRM, the organization then needs to
address the appropriate information architecture to enable their CRM strategy to be
implemented. Stated simply the task is how can we exploit technology for improved
CRM.
To Ensure the success of CRM the following things need to be kept in mind:
Focus on the most pressing goals, such as reducing attrition among your most
valuable customers, or increasing revenue per customer. Only after these goals have
been achieved should the initiative be spread across the enterprise.
The most common complaint from business managers about software development is
that results if they come at all are not available until all the money has been
invested. The greatest complaint from developers is that business managers dont
understand that they cant have results until the software has been built. To maintain
the support of senior management and key investors, achieving a succession of short-
term goals, with measurable results, is crucial in moving forward with the long-term
goal of true relationship marketing.
Call centers
Campaign
Call center telephone sales managing aspects
management
of customer contact
E-commerce
Web-based Content
Field sales
self service management
Retail
Integrate and coordinate multiple customer touch points (e-mail, call center,
direct sales, POS, direct mail, etc.)
The relationship marketing process is usually defined as a series of stages, and there
are many different names given to these stages, depending on the marketing
perspective and the type of business.
Using the relationship marketing approach, you customize programs for individual
consumer groups and the stage of the process they are going through as opposed to
some forms of database marketing where everybody would get virtually the same
promotions, with perhaps a change in offer. The stage in the customer LifeCycle
determines the marketing approach used with the customer.
A simple example of this would be sending new customers a "Welcome Kit", which
might have an incentive to make a second purchase. If 60 days pass and the customer
has not made a second purchase, you would follow up with an e-mailed discount. You
are using customer behavior over time (the customer LifeCycle) to trigger the
marketing approach.
We all know that today, marketing programs must include a measurable customer
understanding in order to be successful. One element that helps quantify our
understanding of customer profitability is Customer Lifetime Value (CLV). If
carefully calculated, and with widespread organizational buy-in, it becomes the first
metric to turn to for all customer marketing and planning.
However the LifeTime Value concept has been misunderstood over the last several
years. It may not be necessary to figure out an absolute LifeTime Value for a customer
or wait "a lifetime" to find out the exact value to use the concept in managing
customer value in order to develop successful marketing campaigns.
Basically, there are three main components to the CLV formula: revenues, customer
tenure and expenses.
5) Equipment Costs and Revenue. The negotiated sales rates form the various
goods vendors changes based on supply, consumer demand and buying ability
of the telecommunications vendor.
6) Service Rates and Rate Plan Structures. Rates change almost monthly for most
carriers.
7) Even the rate plan structures change as soon as you (and the consumers)
understand them.
10) Additionally, most consumers have been affected by one of the consolidations,
mergers, or corporate "buys" that the industry has been witnessing recently. As
a result, consumer brand loyalty is at an all-time low.
The primary objective of the study is to study the customer relationship model Max
Pacific Corporation Limited.
The secondary objectives of the study are:-
To study the satisfaction level of customer of Max Pacific Corporation Limited.
To study and determine the thinking style of customers.
To analyse the feedback of customer using services of Max Pacific Corporation
Limited.
To analyse the strategies followed by Max Pacific Corporation Limited.
The study is conducted at Max Pacific Corporation Limited Pvt. Ltd. The
services provided by Max Pacific Corporation Limited Ltd. The present customers
ORGANIZATIONAL PROFILE
Organizational Profile deals with the history of the organization, its management,
organizational structure, programme profile and market potential, competitive
strengths, future plans and the description of various functional areas.
Max Pacific Corporation Limited was started in 1993. Pawan Jain (Chairman
and Managing Director Max Pacific Corporation Limited), Anil Sayal (General
Manager Max Pacific Corporation Limited). Max Pacific Corporation Limited started
its business as a door-to-door service in 1995 with 4 routes, 9 offices, 12 container
mounted vehicles and 20 employees.Max Pacific Corporation Limited' door-to-door
services include niche products like DoD and To-Payfreight. In 1996 Max Pacific
Corporation Limited opens super hubs at Delhi, Mumbai and Bangalore.Next year
Max Pacific Corporation Limited launches Integrated Logistics Services. Our first
ILS client is NIIT; the first international ILS account is signed with Hilti from Europe.
Spurred on by a surging domestic economy, Max Pacific Corporation Limited extends
its fleet to 250 and number of stations to 290. Max Pacific Corporation Limited
emerges as an independent entity
In1998 Safeair and Safebox are launched, setting a new standard in value
added cargo services.All hubs are connected through web-based software. In 1999
Having grown by over 300% in 4 years without compromising quality, Max Pacific
Corporation Limited is awarded the Golden Peacock Award for quality and innovation
in Logistics Management. In 2000 Pilot run for GPS starts on 28 routes.
Max Pacific Corporation Limited reaches the 350-destinations mark and the
fleet crosses 1400. Again 2001 Max Pacific Corporation Limited upgrades and
launches a whole lot of features on www.Max Pacific Corporation Limited.com
including e Pod, Virtual Cargo and Privileged Member In the year 2002, 2003 Max
Pacific Corporation Limited was declared India's "Largest Logistics Service Provider"
by Limca Book of Records.
Every day covering over 550 locations through more than 750 routes operating
24 hours a day 365 days a year reaching these locations through its fleet of 3000
vehicles operating on. All Max Pacific Corporation Limited vehicles have all-weather
proof containers for safe transit. Max Pacific Corporation Limited also operates
through Air to locations directly covered by flights and to all other locations on a
multi modal basis.
Mission:
Quality:
HISTORY
1996 Max Pacific Corporation Limited opens super hubs at Delhi, Mumbai
and Bangalore.
1998 Safeair and Safebox are launched, setting a new standard in value
added cargo services.
2001 Max Pacific Corporation Limited upgrades and launches a whole lot
of features on www.Max Pacific Corporation Limited.com
including ePod, Virtual Cargo and Privileged Member.
MANAGEMENT
Mr.Pawan Jain
Mr.Anil Sayal
General Manager of Max Pacific Corporation Limited.
Mrs. Jain
Mr.E Karthik
Head IT
Southern Region.
P.Suresh
Mr.Uday Sharma
R.K Jain
Director - Finance
Mr.N.D Kishore
REGIONAL OFFICER
AREA MANAGER
ASST. MANAGER
R&D Administration
Manager Manager
Executives Executives
EXPRESS
DRAFT-ON-DELIVERY
In the Max Pacific Corporation Limited DOD system pre-alerts are sent to the
consignee to allow reasonable time for the draft to be made, thus meeting the desired
objective of express transit with the amount ready for collection.
14 The company would redeem the value of the loss in the uneventful case of any
shortage or damage to the consignment whilst in the custody of Max Pacific
Corporation Limited, subject to the risk charge having been paid by the sender or the
recipient as per the company policy.
SAFEBOX
The robust design is further reinforced with internal insulation for safety of
your cargo. So you save on packaging cost and for a nominal amount it is ready for
delivery with an auto insurance upto rs. 5000 absolutely free of cost.
SAFEAIR
To ensure that time sensitive cargo reaches the destination through a faster
mode meeting all your requirements for the time definite deliveries. Safeair connects
your cargo through airlines, atos and uses the services for morning and evening flights
to provide a wide variety of connectivety to suit different market cutoffs.
ILM
Max Pacific Corporation Limited works on the value chain concept using a
framework for examining linkages between suppliers, producers, buyers,
intermediaries & end users. Max Pacific Corporation Limited ensures the success of
the entire chain, marrying local knowhow with the best global practices, technology &
perspective
CONSULTING
Max Pacific Corporation Limited offers value added services beyond physical
operations in the form of logistics consultancy covering a wide spectrum of the Indian
economy. The company plays a pivotal role in guiding diverse market segments on
existing and recommended logistics models with various simulation modules to map
transactions using historical data and providing befitting supply chain solutions.
Strength
More than 1000 routes, linked through 41 super hubs & hubs.
Weakness
Max Pacific Corporation Limited was a late entrant to generic cargo business.
Opportunities
Indian retail sector is growing 25% annually creating US$ 175-200 billion by
2016.
Threats
Max Pacific Corporation Limited business model was cloned by several retail
courier operators thus creating threat for Max Pacific Corporation Limited
business.
FUTURE PLANS
The company was planning to strengthen its presence in the air cargo segment
by taking three Boeing-737 cargo aircraft on lease.
Max Pacific Corporation Limited has also placed an order for 380 trucks to
add to its current fleet of 3,000 vehicles.
Marketing department
Dispatch Department
Marketing Department:
It will try and maximize the level of sales by carrying out market research and
promoting the goods or service through a motivated sales team.
Keep a record of all money coming in and going out of the business. They have
responsibility for securing finances for future expansion and paying staff.
System & Administration Department:
GLOBAL SCENARIO:
Logistics is a quite an old concept, it has been becoming very efficient only
after the wave of 1990s globalization. With the advent of intense competition coupled
with globalization and liberalization forced both public and private firms committing
themselves to make available to the customers, the right condition material, at the
right place, at the right time, at the very lowest cost-may be a product or a service.
The government and the private sectors in many developing countries should improve
these areas - or face the large and growing costs of exclusion, said a World Bank
report.
% of revenue
Currently the annual logistics cost of the world is about USD 3.5 trillion. For
any country, the annual logistics cost varies between 9% and 20% of the GDP, the
figure for the US being about 9%. US-based Armstrong & Associates, Inc. tracks the
issues and trends in the world logistics market and in the US logistics market, in
particular, in their annual surveys of top 25 global LSPs.
According to the firm, the global logistics market sizes in 1992, 1996 and
2000 were USD 10 billion, USD 25 billion and USD 56 billion, respectively. In 2003
and 2004, the corresponding figures were USD270 billion and USD 333 billion,
registering high growth rates. Though most of the large LSPs are headquartered in
Europe, the US logistics market is the largest in the world capturing one-third of the
world logistics market. In 2003, it was about USD 80 billion.
INDIAN SCENARIO:
Indian Supply Chain and Logistics Industry is more than USD 100 Billion in
size and is the backbone of Indian Economy. Our industry is growing at a rate of 8-
10% annually and has been a crucial contributor in the growth and development of the
Indian economy. In the near future, Traditional Logistics services like Transportation
and Warehousing would continue to growth at a good rate. However, the big ticket
growth would come from the Value Added Logistics services in the near future.
The logistics and warehousing sector in India, till now, has been highly
fragmented and characterised by the presence of numerous unorganised players. A
large number of players have been providing services in individual segments like
transportation, warehousing, packaging etc.
In 2007, organised players accounted for only 6 per cent of the total US$ 100
billion Indian logistics industry However, changing business dynamics and the entry
of global third party logistics players (3PL) has led to the remodelling of the logistics
services in India. From a mere combination of transportation and storage services,
logistics is fast emerging as a strategic function that involves end-to-end solutions that
improve efficiencies.
Indias logistics sector attracted investments worth Rs. 23,200 crore in first
half of 2008, according to a study by AssochamTrade logistics2008. The report said
about 110 logistics parks spread over approximately 3,500 acres at an estimated cost
of $1 bn are expected to be operational and an estimated 45 mn sq ft of warehousing
space with an investment of $500 mn is expected to be developed by various logistics
companies by 2012.
USA 3.85
UK 3.84
Singapore 4.19
India 3.07
China 3.64
Mexico 2.64
The Logistics Performance Index (LPI) indicators provide the in-depth each
country assessment of the logistics gap among countries. As the above graph shows
those LPI scores of different countries and also the performance of developed
countries comparing to the developing nations. Singapore-1stUSA- 9th
China-30th India-39th.
CHAPTER 2
REVIEW OF LITERATURE
Customer Relationship Management (CRM) has become one of the most dynamic
technology topics of the millennium. According to Chen and Popovich (2003), CRM
is not a concept that is really new but rather due to current development and advances
in information and enterprise software technology, it has assumed practical
importance.The root of CRM is relationship marketing, which has the objective of
improving the long-term profitability of customers by moving away from product-
centric marketing.
Bose (2002) noted that CRM was invented because the customers differ in their
preferences and purchasing habits . If all customers were alike, there will be little
need for CRM. As a result, understanding customer drivers and customer profitability,
firms can better tailor their offerings to maximize the overall value of their customer
portfolio (Chen and Popovich) . The attention CRM is currently receiving across
businesses is due to the fact that the marketing environment of today is highly
saturated and more competitive (Chou et al, 2002) . According to Greenberg (2004),
CRM generally is an enterprise-focused endeavor encompassing all departments in a
business . He further explains that, in addition to customer service, CRM would also
include, manufacturing, product testing, assembling as well as purchasing, and billing,
and human resource, marketing, sales and engineering. Chen and Popovich (2003)
argued that CRM is a complicated application which mines customer data, which has
been retrieved from all the touch points of the customer, which then creates and
enable the organization to have complete view of the customers. The result is that
firms are able to uncover and determine the right type of customers and predicting
trend of their future purchases. CRM is also defined as an all embracing approach that
seamlessly integrates sales, customer service, marketing, field support and other
functions that touch customers (Chou et al, 2002) . They further stated that CRM is a
notion regarding how an organization can keep their most profitable customers and at
the same time reduce cost, increase in values of interaction which then leads to high
profits.
The modern customer relationship management concept was shaped and influenced
by the theories of total quality management (Gummesson) and by new technological
paradigms (Zineldin, 2000). There is however, a perceived lack of clarity in the
definition of customer relationship management, although all accepted definitions are
sharing approximately the same basic concepts: customer relationships, customer
management, marketing strategy, customer retention, personalization (Zineldin 2000).
However, while academics debate the subtitles of various definitions, the practitioners
have developed a wealth of applicative papers analyzing the concrete challenges and
opportunities of implementing the systems (Bacuvier et al. 2001). CRM in some firms
is considered as a technology solution, considering of individual databases and sales
force automation tools and sales and marketing functions so as to improve targeting
effort. Peppers and Rogers (1999) argued that other organizations view CRM as a
tool, which has been particularly designed for one-to-one customer communications,
which is the function of sales, call centres or the marketing departments. Accordingly
Frow and Payne (2004) added that CRM stresses two-way communication from the
customer to the supplier to build the customer over time. The two-way
communication has been enhanced greatly by advances in technology particularly the
Internet.
Goldenberg (2000) believes that CRM is not merely technology applications for
marketing, sales and services but rather when it is successfully implemented ; it
enables firms to have cross- functional , customer-driven , technology-integrated
business process management strategy that maximses relationships. Chin et al (2003)
stated that that due to many technological solutions available for CRM automation, it
is often misconstrued as a piece of technology. But they maintained that in recent
times many companies have realized the strategic importance of CRM, and as a result,
it is becoming a business value-effort rather than technology- centric effort.
For customers, CRM offers customization, simplicity and convenience for completing
transactions irrespective of the kind of channel of interaction used (Gulati and Garino,
2000). Many businesses today realize the importance of CRM and its potential to help
them achieve and sustain a competitive edge (Peppard, 2000). This view was further
boosted by Bose (2002) that as a result of changing nature of the global environment
and competition, firms cannot compete favorably with minor advantages and tricks
that can easily be copied by competing firms .The implementation of CRM is an
enabled opportunity to rise above minor advantages with real focus on developing
actual relationships with customers. Firms those are most successful at delivering
what customers want are the more likely to be leaders of the future.
Benefits of CRM
According to Chen and Popovich (2003), CRM applications have the ability to deliver
repositories of customer data at a much smaller cost than old network technologies.
Throughout an organization, CRM systems can accumulate, store, maintain, and
distribute customer knowledge. Peppard (2000) noted that effective management of
information has a very important role to play in CRM because it can be used to for
product tailoring, service innovation; consolidate views of customers, and for
calculating customer lifetime value.
CRM systems assists companies evaluate customer loyalty and profitability based on
repeat purchases, the amount spent, and longevity. Bull (2003) added CRM makes it
practicable for companies to find unprofitable customers that other companies have
abandoned. This position is supported by Galbreth and Rogers (1999) that CRM helps
a business organization to fully understand which customers are worthwhile to
acquire , which to keep, which have untapped potential, which are strategic, which are
important , profitable and which should be abandoned.
Greenberg emphasized that CRM can increase the true economic worth of business by
improving the total lifetime value of the customer , adding that successful CRM
strategies encourage customers to buy more products, stay loyal for longer periods
and communicate effectively with a company. CRM can also ensure customer
satisfaction through allocation, scheduling and dispatching the right people, with the
right parts, at the right time (Chou et al., 2002).
According to Swift (2001), companies can gain many benefits from CRM
implementation. He states that the benefits are commonly found in one of these areas:
Curry and Kkolou (2004) refer to the major benefits and reasons for adoption of CRM
which include: customers from the competition will come prefer the organization; a
simplified, customer focused internal organization will simplify the infrastructure,
shrinking the work flow and eliminating non-productive information flow; and profits
will increase from satisfied customers which will lead to more compact & focused
company.
There are some companies that adopt CRM systems just because it is the most
advanced technology and they think they should have it since their competitors have it
(Chou et al, 2002), Some statistics that motivate this behavior are resumed as follows:
Like any other new function, CRM too has its own drawbacks and challenges. Any
organization that seeks to implement CRM may focus on value creation and on a
continuous stream of profits. They will give up their myopic fix that CRM is the fixed
responsibility of marketing or IT department. The firms will realize that in order for
CRM to contribute to corporate renaissance, the CRM responsibility must rise to the
level of CEO. CRM will be more strategy driven, and thus be able to concentrate on
what customer expects from relationships. The final take for the CEOs will be that
CRM is and can be a vehicle for cultural integration in the organization. In short, a
true CRM encourages a relationship view of the world that goes beyond the
customers, includes multi members and facilitates corporate renaissance.
Two trends have brought CRM to the forefront, explains Boston University professor
Tom Davenport, who directs Andersen consultings Institute for Strategic Change.
First, as global competition has increased and products have become harder to
differentiate, companies have begun moving from a product-centric view of the
world to a customer-centric one, says Davenport. Second, technology has ripened to
the point where it is possible to put customer ability to manage the complex
information about customers, because information was stored in 20 different
systems, says Davenport. But as network and Internet technology has matured, CRM
software has found its place in the world. Many companies are turning to customer-
relationship management systems to better understand customer wants and needs.
CRM applications, often used in combination with data warehousing, E-commerce
applications, and call centers, allow companies to gather and access information about
customers buying histories, preferences, complaints, and other data so they can better
anticipate what customers will want. The goal is to instill greater customer loyalty.
Types/Variations of CRM:
Types of CRM can be broadly understood by looking at the two different ways of
categorization. These two types of categorization are as follows:
Such Proactive CRM practicing companies are generally those which increase the
level of personalization and practice one to one marketing as shown below:
There are various ways through which a customer can approach the business. This
interaction is direct with company and its employees. The junction where this
interaction happens is called touch point. Usually transactions like sale, payment,
information seeking, queries, suggestions, and complaints happen at these operational
touch points. That is why it is also called front office CRM.
Collaborative CRM:
Jill Dyche defines Collaborative CRM as a specific functionality that enables a two
way communication between a company and its customers through a variety of
channels to facilitate and improve the quality of customer interaction.( Dyche 2002)
The essence of collaborative CRM is to manage partners of the firm. These could be
channels, agents and other business stakeholders but not direct customers. The focus
is on maintaining relations with partners to facilitate coordination in business.
Analytical CRM:
Also known as back office or strategic CRM. This type of CRM is characterized by
presence of designations like business analysts. The objective of analytical CRM is to
find out various taste, preferences, and activities of the customers so as to customize
solutions for them. The basis of this data is captured customer interactions at various
touch points. Extensive use of MIS and technology is done in Analytical CRM.
The ability of the customers to take care of themselves through online or the firms
being able to take care of its customers through internet outlines the basic difference
between CRM & e CRM. As far as concept, methodology and process are concerned
there is hardly any difference between CRM & e CRM. But there is lot of difference
when it comes to execution as the communication media is different.
eCRM is the customer facing internet portion of the CRM. It contains capabilities like
self service knowledge bases, automated email response system, personalization of
web contents and online pricing. Though eCRM increases efficiency by way of
reducing cost, an increased dependence only one CRM can backfire.A dissatisfied
customer wanting to meet an employee of the company, might get frustrated in an e
CRM setup. Therefore, it is prudent to have a mix of web and traditional channels in
CRM.
Ever changing customer interaction channel that constantly keep companies on its
toes. Various web applications have to keep itself abreast with the changing needs of
the customers. This drives eCRM .
The declining cost of internet has increased affordability and accessibility. The speed
and convenience of internet has further added to growth of eCRM .
The companies have realized that there is need to customize. The customers are not
interested in mass mails.
The realization among companies that retention is more economical & feasible than
new customer acquistion.
Past Survey-Facts
Past research has shown that consumers were reluctant to complain about poor
professional service, such as education, but the same consumers are becoming
increasingly more value conscious. There is mounting pressure from the customers of
higher education, i.e.; students, parents, alumni and employers, to close the widening
gap between their expectations of institutional performance and the actual
performance (Brigham, 1994; Gronhaug and Arndt, 1980; Quelch and Ash, 1981).
This indicates how important it is for institutions of higher learning to actively
monitor the quality of their services and commit to continuous improvements in an
effort to respond to the needs of the institutional constituencies.
Service is an intangible activity that is the main objective of transaction that serve to
meet the needs of customers. Service quality is an ability of an organization to meet or
exceed customer expectations. Since education service has very particularly
characteristics, the 'SERVQUAL' model can be adapted according to the most
important determining factors: Reliability, Tangibility, Responsiveness, Assurance and
Empathy as proposed by 'Parasuraman', Zeithmal and Berry (1985).In this
competitive market, satisfaction with services may make the difference (Parasuraman,
Zeithmal and Berry 1996).
If we discuss about Pune city, the following points are highlighted, which require
management colleges to focus on CRM.
More number of institutes vying for less number of students
Creating a long term relationship with students is a win - win for both
RESEARCH METHODOLOGY
RESEARCH DESIGN
Research methodology means the method carried out to study the problem. It shows
the type of the sample design used, its size and the procedure used to dew sample. The
extent of precision achieved and the method used for handling any special problem
during the course of the study.
DATA SOURCES
Secondary Data
The first part is a study of adventure company, The Max Pacific Corporation Limited
using secondary data sources.
This secondary information has been sourced from the internet and from business
related magazines and newspapers. This refers to information that has been collected
earlier by someone else . often this include printed or published reports, new items
and industry or trade statistics ,etc.
This also includes internal documents like invoices, sales reports, payment history of
customers and dispatch records.
The secondary information has been collected from the past record books of the
organization and also from Internet Websites.
Primary Data
The second part of the study has been done using an exploratory research process and
a structured questionnaire was developed for this purpose. For the collection of
primary data this was the only method used. The reason I used this method is
because a need was felt for the free influx of information about the products. Also this
method allowed the use of skills gained in class. Primary Data is the collected directly
from the market place i.e customers , traders , suppliers are often the major sources .
These are often reliable data sources and help in overcoming the limitations of
secondary data , this data is collected afresh and or the first time and thus happens to
be original in character.
Open Ended: - Allows respondents to answer in their own words & are difficult to
Interpret and Tabulate.
Close Ended: - A closed-ended question has the respondent pick an answer from a
given number of options.
Dichotomous Questions
Multiple Choice Questions Where respondent is offered more than two choices. This
is done to know the choice of the customers regarding different matters.
SAMPLE DESIGN
The population considered for the purpose of the survey was people residing in Delhi
and the National Capital Region (NCR).
Sample Extent
North Delhi
Time Frame
8 weeks
Since the information required was not of a very technical nature and also looking at
the scope of the project and the extent of the target segment, the sampling technique
employed was Convenience Sampling. I administered the questionnaires.
Sample Size
Sample size has been restricted to 100 respondents. This was done keeping in mind
the time constraints and the fact that I felt that this number would be enough to serve
the information needs required to show the trends.
CHAPTER 4
no
yes
0 10 20 30 40 50 60 70 80
INTERPRETATION
From the above table it is clear that about 68% people know about the services of
Max Pacific Corporation Limited and 32% dont know about it.
Q2. Have you ever utilize the services of Max Pacific Corporation Limited?
YES 60 NO 40
70
60
50
40
30
20
10
yes no
INTERPRETATION
From the above table 60% people have utilise the services and 40% didnt services
even after knowing about the functioning of Max Pacific Corporation Limited.
Q3. How often do MAX PACIFIC CORPORATION LIMITED services exceed
your expectations?
ALWAYS 66
SOMETIMES 30
NEVER 4
70
60
50
ALWAYS SOMETIME
40
NEVER
30
20
10
INTERPRETATION
From the above table it is clear that services of Max Pacific Corporation Limited
exceeds always 66% customers expectation, 30% believes it sometimes exceed, 4%
believes never.
Q4. How would you rate the Office Assistants behavior on the scale of five?
5 4 3 2 1
10 60 10 10 10
5 4
3 2
INTERPRETATION
Out of 100 customer, 10customer have given the 5 marks to Office Assistant behavior
while 60 has given 4 marks,10 has given 3 marks,10 has given 2 & 10 has given 1.
Q5. Do you find the Layout of MAX PACIFIC CORPORATION LIMITED
helpful in Service Experience?
YES 80
NO 12
CANT SAY 8
80
70
60
50
40
30
CAN'T SAY
20
YES NO
10
NO
YES
CAN'T SAY
0
INTERPRETATION
Out of 100 customers ,80% have told that they like the layout of The Max Pacific
Corporation Limited while 12% told that they do not like very much and 8% cant
say.
Q6. What do you like most about MAX PACIFIC CORPORATION
LIMITED?
CREDIT FACILITY 60
TRANSPORTATION FACILITY 40
CREDIT FACILITY
TRANSPORTATION FACILITY
INTERPRETATION
Out of 100 Customer, 60 customers like the credit facility & 40 customers like
transportation facilities.
Q7. Do you think that MAX PACIFIC CORPORATION LIMITED follow the
ethical Mktg. Practices like right pricing and right quality?
YES 60
NO 30
CANT SAY 10
can't say
no
yes
0 10 20 30 40 50 60
INTERPRETATION
Out of 100 customer, 60 customers have told that Max Pacific Corporation Limited
following the ethical marketing practices,30 say no and 10 say cant say
Q8. How would you rate themesetting display of Max Pacific Corporation
Limited in comparison to other?
Excellent 15
Good 55
So-so 20
Bad 5
Worst 5
60
50
40
30
20
10
NT
LLE O D
CE GO -S
O
EX SO
D
BA ST
OR
W
INTERPRETATION
Out of 100 customers, 15% customers said that MAX PACIFIC CORPORATION
LIMITED theme is excellent while 55% customers said that it is good,20% customers
said that it is so-so,5% said it is bad & 5% said it is bad.
Q9. Which medium of communication created more customer awareness?
Newspaper 40
Radio Jingle 10
Advertising 25
Banner 25
Advertising
Banner
Radio jingle
Newspaper
0 5 10 15 20 25 30 35 40
INTERPRETATION
Out of 100 retailer,40% has told that they use Newspaper as their main tool for
promotional, 10 % said radio jingle, 25% said it was banners & 25% said advertising.
Q10. Which is best method of analyzing customer satisfaction?
Feedback 45
No. of Repeat Purchase 30
Interaction of Manager With The 25
Customer
FEEDBACK
NO. OF REPEAT
PURCHASE
INTERACTION OF
MANAGER WITH
THE CUSTOMER
0 5 10 15 20 25 30 35 40 45
INTERPRETATION
Out of 100 respondents, 45% have told that analyzing the customer satisfaction
through the feedback of customer, 30% said that no. of repeat purchase, 15% said
interaction of manager, 10% said it is with customer.
Q11. Compared to other companies would you say that services provided by
Max Pacific Corporation Limited is?
Much Better 10
Somewhat Better 4
About The Same 3
Somewhat Worse 3
Much Worse 0
50
45
40
35
MUCH BETTER
30 SOMEWHAT BETTER
SOMEWHAT WORSE
20
MUCH WORSE
15
10
INTERPRETATION
Out of 100 respondents, 35% said services of MAX PACIFIC CORPORATION
LIMITED are much better than others,45% said somewhat better,10% said about the
same,8% said samewhat worse,25 said much worse.
Q12. Which area does The Max Pacific Corporation Limited need to improve
its services?
THEME SETTING 60
TRANSPORTATION 40
fields
theme setting
transportation
facility
INTERPRETATION
From the above graph we can see that 60% people think that The MAX PACIFIC
CORPORATION LIMITED should improve its theme setting and 40% feels
transportation facility
CHAPTER 5
DATA INTERPRETATION
From the above table it is clear that about 68% people know about the services
of Max Pacific Corporation Limited and 32% dont know about it.
From the above table 60% people have utilise the services and 40% didnt
services even after knowing about the functioning of Max Pacific Corporation
Limited.
From the above table it is clear that services of Max Pacific Corporation
Limited exceeds always 66% customers expectation, 30% believes it
sometimes exceed, 4% believes never.
Out of 100 customer, 10customer have given the 5 marks to Office Assistant
behavior while 60 has given 4 marks,10 has given 3 marks,10 has given 2 &
10 has given 1.
Out of 100 customers ,80% have told that they like the layout of The Max
Pacific Corporation Limited while 12% told that they do not like very much
and 8% cant say.
Out of 100 Customer, 60 customers like the credit facility & 40 customers like
transportation facilities.
Out of 100 customer, 60 customers have told that Max Pacific Corporation
Limited following the ethical marketing practices,30 say no and 10 say cant
say
Out of 100 customers, 15% customers said that Max Pacific Corporation
Limited theme is excellent while 55% customers said that it is good,20%
customers said that it is so-so,5% said it is bad & 5% said it is bad.
Out of 100 retailer,40% has told that they use Newspaper as their main tool
for promotional, 10 % said radio jingle, 25% said it was banners & 25% said
advertising.
Out of 100 respondents, 45% have told that analyzing the customer
satisfaction through the feedback of customer, 30% said that no. of repeat
purchase, 15% said interaction of manager, 10% said it is with customer.
From the above graph we can see that 60% people think that The Max Pacific
Corporation Limited should improve its theme setting and 40% feels
transportation facility
CHAPTER 6
6.2 Suggestions
1) Convert your customers into publicity agents. Develop an incentive for them
to tell associates and friends about the value of your quality and services. An
endorsement from them is more effective than any amount of advertising - and
it is much cheaper.
2) Surprise your customers with unexpected value. If you sell services, get into
the habit of doing something extra for every customer or client reasonable
charging for it.
3) Reward them each time they refer someone who becomes a customer. Your
reward can be as simple as a credit toward their next order from you.
5) Visual Merchandising: it is often seen that the people come to the office to
browse rather than buy.
QUESTIONNAIRE
QUESTIONAIRE
NAME_____________________
ADDRESS___________________
Q9. With the help of which medium you were able to find MAX
PACIFIC CORPORATION LIMITED?
NEWSPAPER RADIO BROCHER
ADVERTISISNG
Book Reference:
Websites:
iii) http://www.indexuae.com/Top/Business_and_Economy/Services/Logistics
iv) http://www.lintasfreight.com/
v) www.yahooanswers.com