A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT IN GREEN SEA GLASS

MAKING PVT LIMITED AT CHENNAI

CHAPTER I
INTRODUCTION:-
DEFINITION:

CRM (CUSTOMER RELATIONSHIP MANAGEMENT) is a widely-implemented

strategy for managing a company's interactions with customers, clients and sales prospects. It
involves using technology to organize, automate, and synchronize business processes and sales
activities, but also those for marketing, customer service, and technical support. This system is
virtual so anybody can use this system because this system does not require any physical offices
or environment. Owner can communicate and provide services through this system, and also
client can access and track his status and his project status as well as getting further information
about the projects and new systems

The biggest management challenge in the new millennium of liberalization and

globalization for a business is to serve and maintain good relationship with the king the
customer.

In the past producers took their customers for granted, because at that time the customers
were not demanding nor had alternative source of supply or suppliers. But today there is a radical
transformation. The changing business environment is characterized by economic liberalization,
increasing competition, high consumer choice, demanding customer, more emphasis on quality
and value of purchase etc. All these changes have made today’s producer shift from traditional
marketing to modern marketing. Modern marketing calls for more than developing a product,
pricing it, promoting it and making it accessible to target customer. It demands building trust, a
binding force and value added relationship with the customers. The process of developing a
cooperative and collaborative relationship between the buyer and seller is called customer
relationship management shortly called CRM.
CRM (CUSTOMER RELATIONSHIP MANAGEMENT):-
CRM (customer relationship management) is an information industry term for
methodologies, software, and usually Internet capabilities that help an enterprise manage
customer relationships in an organized way. For example, an enterprise might build a
database about its customers that described relationships in sufficient detail so that management,
salespeople, people providing service, and perhaps the customer directly could access
information, match customer needs with product plans and offerings, remind customers of
service requirements, know what other products a customer had purchased, and so forth.
According to one industry view,
CRM consists of
 Helping an enterprise to enable its marketing departments to identify and target their best
customers, manage marketing campaigns and generate quality leads for the sales team.
 Assisting the organization to improve telesales, account, and sales management by
optimizing information shared by multiple employees, and streamlining existing
processes (for example, taking orders using mobile devices)
 Allowing the formation of individualized relationships with customers, with the aim of
improving customer satisfaction and maximizing profits; identifying the most profitable
customers and providing them the highest level of service.
 Providing employees with the information and processes necessary to know their
customers understand and identify customer needs and effectively build relationships
between the company, its customer base, and distribution partners

AIMS OF CRM:-
 The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to
make the customer climb up the ladder of loyalty.
 The company first tries to determine who are likely prospects i.e. the people who have a
strong potential interest in the product and ability to pay for it.
 The company hopes to convert many of its qualified prospect into first time customers
and then to convert those first time customers into repeat customers.
  Then the company tries to convert these repeat customers into clients – they are those
people who buy only from the company in the relevant product categories. The next
challenge for the company is to convert these clients into advocates.
 Advocates are those clients who praise the company and encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the customers
and the clients work actively together to discover ways of getting mutual benefit.
 Thus in CRM the key performance figure is not just current market share but share of life
time value by converting customers into partners. In CRM the company tries to identify
that small percentage (20%) of key account holders whose contribution to the company
revenues is high (80%). So from this point of view, CRM is also known as key account
management.

WHY – CUSTOMER RELATIONSHIP MANAGEMENT

 A satisfied customer in 10 years will bring 100 more customers to the company.
 It costs 7 times more to attract a new customer than to serve an old one.
 20% of the company’s loyal customer’s account for 80% of its revenues. (Pareto’s
principle).
 The chances of selling to an existing customer are 1 in 2; the chances of selling to a new
customer are 1 in 16.

BENEFITS OF CUSTOMER RELATIONSHIP MANAGEMENT:-

A Customer Relationship Management system may be chosen because it is thought to provide
the following advantages:
 Quality and efficiency
 Decrease in overall costs Decision support
 Enterprise ability
 Customer Attentions
 Increase profitability
 Improved planning
 Improved product development
CUSTOMER SERVICE

CRM software provides a business with the ability to create, assign and manage requests
made by customers. An example would be Call Centre software which helps to direct a customer
to the agent who can best help them with their current problem. Recognizing that this type of
service is an important factor in attracting and retaining customers, organizations are
increasingly turning to technology to help them improve their clients’ experience while aiming to
increase efficiency and minimize costs. CRM software can also be used to identify and reward
loyal customers who in turn will help customer retention. Even so, a 2009 study revealed that
only 39% of corporate executives believe their employees have the right tools and authority to
solve client problems.

Increase in customer retention Customer satisfaction ratings improved Service calls deflected
from call canter to online forum Reduction in overall customer service costs

MARKETING:

 CRM systems for marketing help the enterprise identify and target potential clients and
generate leads for the sales team. A key marketing capability is tracking and measuring
multichannel campaigns, including email, search, social media, telephone and direct
mail.
 Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively,
Prospect Relationship Management (PRM) solutions offer to track customer behaviour
and nurture them from first contact to sale, often cutting out the active sales process
altogether.
 In a web-focused marketing CRM solution, organizations create and track specific web
activities that help develop the client relationship.
 These activities may include such activities as free downloads, online video content, and
online web presentations Product- or company-related postings Positive product
comments, reviews Visitors following link from social channel to online store’s URL
Visitors referred to website from online friend
SALES:-

SALES FORCE AUTOMATION

(SFA):

 Involves using software to streamline all phases of the sales process, minimizing the
time that sales representatives need to spend on each phase. This allows a business to use
fewer sales representatives to manage their clients.
 At the core of SFA is a contact management system for tracking and recording every
stage in the sales process for each prospective client, from initial contact to final
disposition. Many applications also include insights into opportunities, territories, sales
forecasts and workflow automation.
 More sales lead with expressed interest or need Increase in referrals Reduce cost per
lead acquired Key social influencers identified and engaged (invited to write a blog, for
instance, or otherwise participate in a company’s online community) Overall increase in
online sales and/or online customers High response rate to coupon or promotion offered
on Face book or other social channel Increased purchasing from social channel visitors
vs. regular online visitors

PRODUCT DEVELOPMENT:-

New ideas for future products or services generated via contests or “crowd sourcing,” in
which online groups brainstorm and then vote on best ideas Responses to online surveys to vote
on new product features or upgrades

HORIZONTAL VS. VERTICAL:-

Major CRM vendors offer horizontal CRM solutions. In order to tailor a horizontal CRM
solution, companies may use industry templates to overlay some generic best practices by
industry on top of the horizontal CRM solution.
Horizontal CRM vendors may also rely on value added reseller networks of systems
integrators to build vertical solutions and sell them as 3rd party add-ons or to come in and
customize the solution to fit into a particular scenario.
 Vertical CRM vendors focus on a particular industry. As a general rule of thumb in
CRM, it is ten times more costly to build a vertical solution from a horizontal software program
than it is to find a particular vertical solution that is already tailored to your business model and
industry.

HOW TO INTRODUCE CRM IN THE COMPANY

Four key steps for putting one to one marketing program to work
Step 1: Identify your customers:
To launch a one to one initiative the company must be able to locate and contact a
fair number of customers or at least a substantial portion of its valuable customers. It is
crucial to know the customer details as much as possible, not just their names or address,
but their habits, preferences and so forth.

Step 2: Differentiating your customers

Customers are different in two principal ways; they represent different levels of value
and have different needs. Once the company identifies its customers differentiating them
will help the company to focus its efforts to gain the most advantage with the most
valuable customers.
Step 3: Interacting with the customer
Interaction is also a crucial component of a successful CRM initiative. It is
important to remember that interaction just not occur through marketing and sales
channels, customer interact in many different ways with many different areas of the
organization so to foster relationship all the areas of the organization must be accessible
to the customer.
Step 4: Customize your enterprise’s behaviour
Ultimately to lock a customer into a relationship a company must adapt some
aspect of its behaviour to meet customer’s individually expressed needs this might mean
mass customizing a manufactured product or it might involve tailoring some aspect of the
service surrounding the product.
CHALLENGES:-
 Successful development, implementation, use and support of customer relationship
management systems can provide a significant advantage to the user, but often there are
obstacles that obstruct the user from using the system to its full potential
 Instances of a CRM attempting to contain a large, complex group of data can become
cumbersome and difficult to understand for ill-trained users.
 The lack of senior management sponsorship can also hinder the success of a new CRM
system.
 Stakeholders must be identified early in the process and a full commitment is needed .

CONCEPTUALIZATION:-
 A firm in glass industry has to maintain good relations with its customers.
 They have to retain the customers for a long time to avail the benefit of their relations.
 The customer relationship management is one of the effective tools to identify, establish
and maintain relationship with the customers.

OBJECTIVE OF THE STUDY:-

 This step is also research problem. Problem definition is the most critical part of the
research process. Research problem definition involves specifying the information
needed by management.
 To study the awareness of GREEN SEA GLASS MAKING PVT LIMITED AT
CHENNAI
 To find out the level of customer satisfaction with the offers, discount and services
offered by GREEN SEA GLASS MAKING PVT LIMITED AT CHENNAI
 To study the current practices of CRM IN GREEN SEA GLASS MAKING PVT
LIMITED AT CHENNAI
 To find out the impact of CRM on the profitability of the organization.
 To study the factors affecting the CRM practices.
 To study the role of information technology in CRM
SIGNIFICANCE OF THE STUDY:-
The CRM (customer relationship management) is an integrated effort to strengthen the network
of relationship for the mutual benefit of both the parties. The biggest management challenge in
the new millennium of liberalization and globalization for a business is to maintain good
relationship with the king – the customer. This study is of great significance because
A 5% increase in the customer retention will increase the profit up to 125%.
 It costs seven times more to attract a new customer than to serve an old one.
 20% of the company’s loyal customer’s account for the 80% of its revenues.
 To study on customer relationship management would enable the researcher to know
about the CRM practices adopted in the automobile industry.

NEED OF THE STUDY

In today’s intensely competitive, rapidly changing & highly complex business

environment characterized by diminishing customer loyalty, the need to be market focused &
customer centric is more critical than any other time in past. Firms use technology as a key tool
to enhance the information flow within their business units, helping their employees better
understand the ever changing and increasing need and wants of their customers.

It is certain that the internet will continue to change the ways customers and
organizations interact with one another in terms of speed and ease. This fact requires that the
integration of internet technology into CRM activities occur at all levels throughout the
organization.

Thus, it would be wrong to say that keeping its customer satisfied is in the best interests
of the organizations. The purpose of this study is to bring insight and deeper understanding into
the objectives, strategies and the expected benefits of CRM initiatives by the organization.

LIMITATION OF THE STDUY

 Selection of the people who are under consideration as sample for the study may not
be the best sample selected.
 Sample size was limited due to the limited period allocated for the survey.
  The selection of people to cover the various types of commodity trading ranging from
agro products to energy and metals likegold and silver was tedious and time consuming.
 Getting accurate responses from the respondents due to
theirinherent Problems, personality traits and mood fluctuations was a very difficult task.
 Some respondents had to be re-contacted as per their convenience of time.
 Some of the area in which the survey is carried out was very un–hygienic and
overcrowded.
 Some data of customer is not proper. Like their contact number& address.

CHAPTER II

REVIEW OF LITERATURE

REVIEW OF LITERATURE

1. CRM identifies new opportunities for organizational expansion and improvement of

student customers‟ value, satisfaction, and retention (Grant & Anderson, 2002).
2. “The business approach of [CRM] uses the latest information technologies to maintain
intense communication with customers, as well as to gather and utilize data regarding
their needs and desires” (Schermerhorn, 2008).
3. CRM is the process of learning as much as possible about customers and doing
everything you can to satisfy them – or even exceed their expectations – with goods and
services over time” (Nickels ,2008).
4. Finally, customer relationship management is an information technology system that
gathers and utilizes customer information for the organization so that the organization
may anticipate customer wants, need, and desires and thereby building lasting customer
business relationships (Schermerhorn, 2008).
5. CRM is a strategy that uses information, including the wants and needs of the customers,
to establish rapport with the customers and engender a dedicated, stronger relationship
with individual customers and into long term business partnerships and vendor/business
relationships (Dickie, 1998).
6. Fathy (1999) commented: CRM is all about understanding the customers‟ needs and
leveraging this knowledge to increase sales and improve service. CRM blurs the
boundaries between sales and service, and unifies a company’s activities around the
customer. The overarching goal is to increase customer share and customer retention
through customer satisfaction. In other words CRM is the strategic concept that can
provide the strategic to help the enterprises, and the objective of CRM can be analyzed in
three aspects that are improvement of efficiency, development of market and customer
retention.
7. (Shao and Yu ,2004) The use of CRM can result in a wide range of benefits for a
business such as; value enhancement, improved effectiveness, innovation, and service
improvement. Potential goals for CRM are to increase customer retention and loyalty,
achieve higher customer profitability, create value for the customer, customize products
and services, have lower process, and provide higher quality products and services (Kim,
Suh, Hwang,, 2003).
8. The way organizations approach their customers is changing over time. A rough
distinction in business approaches can be made between product orientation and customer
orientation. Being customer oriented is becoming of more interest by organizations,
because these organizations are able to improve their customer relationships. Thereby
they create more loyal and satisfied customers which results in better organizational
results in the short term and long term (Chen &Popovich, 2003)
9. .Organizations develop relationship management programs to improve relationships with
their customers (Campbell, 2003), for example by using relationship marketing
instruments as loyalty programs and direct mailings (Verhoef, 2003).
10. To execute those programs successfully, internal organizational factors need to be
involved and adapted (e.g. Keramati et al, 2010; Zablah et al, 2004; Lindgreen et al,
2006).
11. CRM means the creation of a long-term, mutually beneficial business relationship
between an organization and its customers, where the organization may intimately know
and serve every customer in addition to understanding and anticipating the wants and
needs of current and future customers. Some advantages that appear from effective CRM
are improved possibilities to target profitable customers, integrated offerings across
 channels, personalized marketing messages, increased profits and improved customer
relationships (Richard & Jones, 2008; Ko et al, 2008).
12. The benefits of customer relationship management can be divided into two groups.
Firstly, it increases the company’s knowledge level over their client and provides
understanding of why the purchase was made. Secondly, customer relationship
management enhances the efficiency and effectiveness of sales and marketing, which in
return increases the overall profitability of marketing. However, increasing the efficiency
of sales and marketing does not happen by itself but with determined customer-oriented
operation model and process development
13. (Mäntyneva ,2001) The modern day economic situation cannot be approached with brute
strength because of technology advancement and wide adoption by the masses.
Organizations are therefore required to maximize the value of their customer base by
adopting enabling technologies that will streamline business processes and leverage every
customer interaction in order to maximize revenue opportunities and improve customer
loyalty.
14. For many organizations CRM became popular to overcome issues of increased
competition, expanding markets and increasing customer expectations (Richard &
Jones, 2008). Better serving the customer improves long-term customer loyalty,
satisfaction and retention (Chen and Popovich, 2003; Chang, 2007).
15. Customer relationship life cycle Customer relationship develops over time when the
customer is committed to using the supplier’s services and the supplier sustains the
commitment. As the relationship develops, changes in the way both parties relate to each
other occur, as well as changes in marketing tactics.
16. (Ylikoski ,2000) The life cycle of customer relationship can be divided into four phases:
obtaining, capturing, increasing and maintaining the relationship. Each phase has their
individual attributes, which are to be kept in mind when planning practices and objectives
of the relationship.
17. (Mäntyneva ,2001) After the client has been captured in some form, it is easier for the
supplier to base the marketing on the past purchases as well as other possible information
obtained from the client about their business. The account managers are expected to
approach the client to find out whether there are any needs that the supplier could help
 with and attempt to focus on marketing their products or services accordingly. As the
relationship develops further, it is continuously more and more important to meet the
customer’s needs and wishes, and to personalize the marketing for the specific client. In
the third phase, the supplier should already be in good position with the client to be able
to do that. There are financial profits to be gained from long-term relationships with
customers, however, even a loyal customer is not necessarily a profitable customer
immediately due to the resources that are used to capture client and increase the
relationship.
18. The cost to manage the customer relationship decreases over time when the supplier has
more information about the client and is able to serve the client more efficiently based on
that information. A loyal, satisfied client is also often more willing to pay the price of the
quality services they receive. (Ylikoski,2000)

CHAPTER III
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research methodology is away to systematically solve research problem. In it we study
the various steps that are generally adopted by researcher in studying his research problem along
with logic behind them. It is necessary for a researcher to know not only the research
method/techniques but also the methodology.
A research design is simply a plan for study in collecting and analysing the data. It helps
the researcher to conduct the study in an economical method and relevant to the problem.
Research methodology is a systematic way to solve a research problem. The methodology should
combine economy with efficiency.

STEPS OF RESEARCH
TYPES OF THE RESEARCH:

It is a Descriptive Research and the main objective of Descriptive Research is to learn

about who, what, when and how. It includes study and fact finding inquiries of different kinds.
Thus the major purpose of descriptive research is the description of the state of affairs, as it
exists at present.

It also include Exploratory Research as we are focusing on the what are the recent trends
in the CRM activities in the automobile dealers and what are their consequences.

RESEARCH DESIGN
Research design involves defining the research problem, determining how to collect the
data and from whom, establishing the way the data will be analyzed estimating costs and the
preparation of the research approach. For this study, descriptive research was selected.

COLLECTION OF DATA
 Primary data
 Secondary data

SAMPLE SIZE

The survey is conducted on 100 people who are selected randomly from within the
GREEN SEA GLASS MAKING PVT LIMITED AT CHENNAI
SAMPLING METHOD

Sampling method used was simple random sampling. The information was collected from
respondents who were selected randomly.

DATA COLLECTION TOOLS

PRIMARY DATA

Questionnaires are the basis of collection of primary data. The questionnaire was
distributed to students and information was obtained. In addition to the questionnaire personal
interaction with students during market survey were made in order to understand their problems,
knowledge towards the program, their preferences and other useful information.
SECONDARY DATA

Some of the data were collected from the existing sources of information which were
assessed due to availability of various other forms of data and information. These data served as
the secondary data for the researcher. The sources of data were company websites. Theoretical
information from significant text book was also used.

QUESTIONNAIRE DESIGN

Structured undisguised questionnaire was used in designing the questionnaire to collect the data
from the respondents.

STATISTICAL DESIGN

The data collected has been tabulated and each respondent is categorized according to the data
given and percentage is worked out of each group of data. The statistical tools used were tables,
bar graphs and percent

RESEARCH APPROACHES:
Primary data can be collected in five main ways: through Observation, focus groups,
surveys, behavioural data, and experiments.

RESEARCH INSTRUMENTS:-
Marketing researchers have a choice of three main research Instruments in collecting
primary data:

QUESTIONNAIRES:
A questionnaire consists of questions presented to respondents for their answers. Because
of its flexibility, the questionnaire is by far the most common Instrument used to collect primary
data. Questions can be open-ended or closed-Ended
RESEARCH TOOLS OF ANALYSIS

Analytical techniques are used to obtain findings and arrange information in a logical
sequence from the data collected. After tabulation of the data, researcher used the following
quantitative techniques

1. Percentage Analysis

The data that is obtained is from the questionnaire is analyzed through percentage
analysis. The results are shown on the percentage basis.

2. Graphs

Graphical representations are used to show the results in simple form. The graphs are
prepared on the basis of data that is received from the percentage analysis

3. Chi – Square Test

The research methodology tool chi – square test is being taken as a tool in order to bring
out the final result by analyzing the factors. The end result for the study is being derived from the
using this research tool.

Chi square test is an important non parametric test and as such no test is necessary in
respect of the population. We require only the degree of freedom (implicitly of the course the
size of the sample) for using this test. As anon parametric test chi square can be used (i) as a test
of goodness to fit and (ii) as a test of independence. Since there searcher used test of
independence only the details about the independence is given below

TEST OF INDEPENDENCE

The 2 test is used to test whether there is a significant difference between the observed
number of responses in each category and the expected number of responses for such category
under the assumption of null hypothesis. It enables us to explain whether or not two attributes are
associated with each other.
 In order that we may apply the chi-square test either as a test to judge the significance of
association between attributes, it is necessary that the observed as well as theoretical distribution
must be adjusted to give the same total frequency as we find in case of observed distribution.

Karl Pearson developed test for testing the significance of discrepancy between
experimental values and the theoretical values obtained under some theory of hypothesis. This
is known as test of goodness of fit. Karl Pearson proved that the statistics is used to test whether
difference between observed and expected frequencies are frequent.

A STUDY ON CUSTOMER RELATIONSHIP MANAGEMENT GREEN SEA GLASS

MAKING PVT LTD AT CHENNAI

QUESTIONARIES

1. Name

2. Age of the respondent

a) 18-25
b) 26-30
c) 31-40 ]
d) Above 40

3. Occupation
a) Student
b) Service
c) Business

4. Sex-
a) Male
b) Female
5.Annual Income-
a) < 100000
b) 100000 – 150000
c) 150000 – 200000
d) 200000 – 250000
e) 250000 – 300000
f) >300000

6. Through ongoing dialogue, we work with individual key customer to customize our offerings

a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree

7. Your organization provides customized services and products to our key customers

a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
8. Will people in my organization treat key customers with great care.
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
9. My organization makes an effort to find out what our key customer needs 45
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
10. When my organization finds that customers would like to modify a product/ service, the
departments makes coordinated efforts to do so

a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
11. Customers centric performance standards are established and monitored at all customer
touch points

f) Strongly Agree
g) Agree
h) Neutral
i) Strongly disagree
j) disagree
12. My organization has the sales and marketing expertise and resources to succeed incrm
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
13. Our employee training programs are designed to develop the skills required for acquiring and
deepening customer relationship
a) Strongly Agree
 b) Agree
c) Neutral
d) Strongly disagree
e) disagree
14. My organization has established clear business goals related to customer acquisition,
development, retention and reactivation
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
15. My organization commits time and resources in managing customer relationship 4
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
16. Employee performance is measured and rewarded based on meeting customer needs and on
successfully serving the customers

a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
17. Our organization structure is meticulously designed4
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
18. My organization has the right personnel to provide technical support for the utilization of
in building customer relationships
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree

19. My organization has the right software to serve our customers

a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
20. Organization has the right hardware to serve our customers
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree

21. Individual customer information is available at every point of contact

a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree
22. My organization maintains a comprehensive database of our customers
a) Strongly Agree
b) Agree
 c) Neutral
d) Strongly disagree
e) disagree

23. Customers can expect exactly when services will be performed 4ustomers can expect
That my organizations employees respond to their requests promptly
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree

24. My organizations employees are willing to help customers in a responsive manner

a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree

25. My organization fully understands the needs of our key customers via knowledge learning
a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree

26. My organization provides channels to enable ongoing two-way communication with our key
customers and us
a) Strongly Agree
b) Agree
 c) Neutral
d) Strongly disagree
e) disagree

27. Customers can expect prompt service from employees of my organization

a) Strongly Agree
b) Agree
c) Neutral
d) Strongly disagree
e) disagree