Project on Customer Relationship Management And Its Implementation of Big Bazaar and Reliance Mart

Submitted to: Prof. Sunitha Ratnakaram

Submitted by: Tripti Mishra Regd.No.6190 CRM 1

Abstract
CRM is the comprehensive strategy and process of acquiring and retaining customer to create superior value for the companies as well as the customer. CRM implementation differs from organization to organization but there are a few common steps one needs to follow to ensure a successful implementation. There are many factors that could influence the success of CRM implementation. Clear cut objectives are essential and they need to be communicated effectively to the entire organization. Business goals are absolutely essential and need to be clearly defined. Similarly goals of the CRM implementation and how it supports organization goals should also be intimated to employees. A business needs to look for a CRM solution that fits its needs, not the other way around. This step is vitally important and spells success. When choosing a CRM solution every business organization has to ensure that it chooses a CRM solution that fits into the organizations requirements. It is wrong to try and adjust organization requirements to the chosen CRM solution. If this is done organization goals will not be achieved and the CRM process will have disastrous results. In most cases the technology will have less to do with the CRM success. Therefore it is important to focus as much importance on communication training and other aspects as much as the technology involved. It is important to involve management at several levels, focus on communication need and indulge in adequate training of the concerned employees throughout the organization. If these items receive a level of focus comparable to the technical system, CRM implementation stands a better chance of succeeding.

Introduction
My topic for this project is CRM implementation and I have conducted the study on two retail store i.e. Big Bazaar and Reliance Mart 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. It is not enough to have great qualities; we should also have the abilities to manage them. The same concept can also be applied in an organization. For e.g. a company may produce a very high quality products but it wont be able to succeed if it fails to manage or satisfy their customers. According to Harward Business Review an exceptionally satisfied customer is 6 times more likely to buy again as one who is merely satisfied & only 5% increase in customer loyalty can boost profit from 25% to 85%. Thus all these quotes & experts opinion highlights the importance of Customer Relationship Management. Customers are considered to be king of every business enterprise and loyal customers are the backbone of their business. So customer satisfaction is the primary motive of every business which can be attained through effective CRM (Customer Relationship Management) policy.

Meaning of Implementing CRM

Increasing customer is not the ultimate objective of any organization but to retain customer and build long term relationship with them is important. It is only through CRM that a prospect can be turn into customer and then finally into a client. But to achieve these any organization require proper implementation. But at the same time CRM implementation is a challenging task because it ties together many people, process, technologies within the organization which are separate from each other.

IN HOUSE DEVELOPMENT- This means all the strategies, processes are developed and implemented within the organization.

Advantage1. It is tailored made according to organization needs and structure thus is flexible as compared to others. 2. Avoid dependency on others be it software or outsourcing.

Disadvantage 1. It is at the same time expensive 2. And comparatively takes longer time depending on the organisation.

BUY LICENSED CRM SOFTWARE- This is purchasing software and Implementing in organization.

Advantage1. Usually the maximum chance of success. 2. It just need to install and trained the workforce accordingly.

Disadvantage1. Again it is expensive because of many costs as license cost, renewal cost etc associated with it. 2. Adding new software with change is a complex task.

OUTSOURCING A MANAGED SERVICE- This means hiring from outside.

Advantage1. Most of the times lower cost. 2. Can adopt pay- as- you go approach with visible result.

Disadvantage1. for any new requirement needs to contact the company and pay for the development. 2. Also there is a risk of losing CRM solution investment if outsourcing company goes Out of business

Goals of CRM are to provide improved services to the customers and to use customer contact information for contact marketing. Goals of the CRM have also changed with better customer service from 1st generation to 3rd generation. In 1st generation the goals were improve service operation and increase sales efficiency, in 2nd generation reduce cost of interaction, improve customer experiences, and increasing the customer interaction; in 3rd generation cost reduction & revenue growth and competitive advantages. Scope and Objective of this Study 1. This research is done for the purpose of finding CRM implementation in Big Bazaar and Reliance Mart. 2. How CRM implementation helps in building healthy relationship with customers. 3.To get clear figure of decision process in the organization. 4.to know the benefits of CRM implementation to the employees as well as customers.

IMPLEMENTING CRM: THE DECISION PROCESS

Stage wise implementation Purchase and install a complete CRM solution from vendor Decision to implement CRM

yes

Entirely outsource the CRM application process

Implement an enterprise-wide CRM program

In house development NG

VARIOUS ASPECTS OF CRM

CRM includes many aspects which relate directly to one another: Front office operations direct interaction with customers, e.g. face to face Meetings, phone calls, e-mail, online services etc. Back office operations Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, Planning, Marketing, advertising, finance, manufacturing etc.

Research Methodology
Research is a systematic and objective investigation of a subject or a problem in order to discover relevant information or principles. Research methodology is basically the method of how to collect data. The information regarding our research is as follows: Objective of our research: We wanted to understand as well as compare the Customer relationship management followed by the Reliance Mart and Big Bazaar. Type of research: Our research was empirical kind of research since we were dealing .With the behavioral or qualitative aspect of customers and not the quantitative datas. Here we were not supported with any external data nor were adopting any secondary data to do our research. Data collection and analysis: collection, and analysis of the information gathered by interaction with employees and customers and also by observing activities of the employees. For better understanding of CRM in Big Bazaar and Reliance Mart we also had prepared a questionnaire for both customers and managers. Sampling procedure and sample size: persons selected by us were randomly selected and were from different age group,sex and educational background .this diversification was done to measure the different choice and preferences prevailing in customers demographically different

Limitations of our research:

1. Our sample size was composed of only 20 customers which is extremely small sample to represent entire population of customers who visit in these two retail stores.

2. No demographical or psychographic differences was considered before choosing the customers for interview purpose. Many of the policies which were not in force due to smaller market potential their description is also been provided by managers.

Literature Review:
Article 1
By Alok Mishra, Deepti Mishra Customer relationship management (CRM) can help organizations manage customer interactions more effectively to maintain competitiveness in the present economy. As more and more organizations realize the significance of becoming customer-centric in todays competitive era, they adopted CRM as a core business strategy and invested heavily. CRM, an integration of information technology and relationship marketing, provides the infrastructure that facilitates long-term relationship building with customers at an enterprise-wide level. Successful CRM implementation is a complex, expensive and rarely technical projects. This paper presents the successful implementation of CRM from process perspective in a trans-national organization with operations in different segments. This study will aid in understanding transition, constraints and the implementation process of CRM in such organizations.

Article 2
By Michael Meltzer

Many marketers point at the high failure rate of CRM implementations, and blame different factors. Some may be quite valid but Michael Meltzer of AMT shows how companies can succeed with true employee buy-in... Getting the 'people part' right Marketing publications have often pointed at the failure of many organisations to generate significant returns on their technology investments in general - and on their CRM (customer relationship management) initiatives in particular. Investing in strategic CRM means, ultimately, that you are investing in organisational change because you will impact not only the technology that you use, and the processes by which you operate, but also - more importantly - the people you employ. For the necessary changes to be effective and deliver on their expected returns, you cannot afford to ignore your people: getting this part of the CRM equation wrong will guarantee that your whole effort will account to little.

Article 3
By John K. Higgins

Retailers have bought into the CRM concept, but they're not fully implementing their CRM systems. Those who take advantage of customer data collection and analytics, Internet-based customer engagement tools, and the use of

technologies to measure the effectiveness of marketing will be ahead of the game -- as will the technology vendors who serve the retail market.

Cyber Monday may be the most visible symbol of the increasing use of e-commerce technology in the retail sector. On just one day, Nov. 30, consumers operating from home or office computers in the U.S. spent US$887 million on Internet purchases. The spending level amounted to a gain of 5 percent versus Cyber Monday of 2008, and it matched the heaviest online spending day on record, which occurred on Dec. 9, 2008. That level of spending explains why Internet marketing has become such a key component of customer relationship management programs in the U.S. retail trade. However, as important as online marketing is now -- and will become in the future -- it is not the only worthwhile objective for using CRM in the retail sector. U.S. retailers are well aware of the significant benefits of using CRM, and most employ some CRM tools, although the degree of usage varies considerably.

Article 4
The Competitive Threat By Marshall Lager

Oracle faces a knotty situation for integrating and supporting its many product lines: Customers are unsure of the future of their CRM implementations and PeopleSoft customers, in particular, are angry. Other vendors, sensing a fat target, have hoisted the Jolly Roger and are seeking to pirate a piece of Oracle's action. So, what's a user to do?

SAP, Oracle's largest direct competitor, is one logical choice. "[Enterprise software] is a two-player game now, Oracle and SAP," says Martin Schneider, enterprise software analyst for The 451 Group. The range of SAP and my SAP applications, which cover the needs of large enterprises and smaller concerns, coupled with the company's comparatively stable reputation, may entice prospects to give more weight to SAP's

solution set. In addition, SAP has its Safe Passage incentive program for existing PeopleSoft and J.D. Edwardss customers to jump ship. So far, at least 29 customers have committed to switching, but that's before considering the fallout from Siebel; Safe Passage was extended to Siebel customers on Oct.17.

Article 5
A Word Is Worth a Thousand Pictures Mine the rich source of customer information that lies buried in recorded calls. By Paul Stock ford

Napoleon said that one picture is worth a thousand words. In the case of real-time speech analytics, one word can be worth a thousand pictures.

So, picture this: Every day, your agents speak to scores of people on the phone. The purposes of the calls vary, but nearly all have some sort of customer service objective. You probably monitor your agents' calls, either a percentage of them for quality or for compliance, or for other reasons. Buried in those recorded calls is a gold mine of information about customers, information that not only could be used to rate agents' performance, but that could be used for sales, operations, or customer service.

Article 6
.By Denis Pombriant

I wonder if ROI will lose its popularity in the new year? It could happen. I have been talking about the end of ROI for a while and I am beginning to see cracks in the facade. Truth be told, focus on ROI is cyclical and usually follows a period of great innovation and uptake of new products--like the Internet bubble. That's what drives my curiosity.

Why are we always so disappointed by the repeated failure to garner good, solid ROI from our software investments? I can think of two reasons. One has to do with expectations and the other with the reality of infrastructure building. Let's start with infrastructure.

Article 7
By Michael Meltzer. Many marketers point at the high failure rate of CRM implementations, and blame different factors. Some may be quite valid but Michael Meltzer of AMT shows how companies can succeed with true employee buy-in... Getting the 'people part' right Marketing publications have often pointed at the failure of many organisations to generate significant returns on their technology investments in general - and on their CRM (customer relationship management) initiatives in particular. Investing in strategic CRM means, ultimately, that you are investing in organisational change because you will impact not only the technology that you use, and the processes by which you operate, but also - more importantly - the people you employ. For the necessary

changes to be effective and deliver on their expected returns, you cannot afford to ignore your people: getting this part of the CRM equation wrong will guarantee that your whole effort will account to little.

Article 8
By Atul Parvatiyar & Jagdish N. Sheth Customer relationship management (CRM) has once again gained prominence amongst academics and practitioners. However, there is a tremendous amount of confusion regarding its domain and meaning. In this paper, the authors explore the conceptual foundations of CRM by examining the literature on relationship marketing and other disciplines that contribute to the knowledge of CRM. A CRM process framework is proposed that builds on other relationship development process models. CRM implementation challenges as well as CRM's potential to become a distinct discipline of marketing are also discussed in this paper.

Findings and Strategy for CRM implementation

Following are some important steps guiding implementation of process of a CRM system: 1. Identifying the problem areas in the customer relationship cycle that are impacting the brand loyalty and affecting the customer satisfaction and chalking down blue print of an effective communication strategy that could yield competitive advantage by redressing the customers apprehensions, concerns and levels of dissatisfaction. 2. Evaluating the kind of CRM data can be used to address to the identified the problem areas in the customer relationship cycle and the value that such information would bring to the business enterprise 3. Formulating a communication plan to realign the organization towards customer centric structure rather than product centric groups

4. Selecting

the

appropriate

technology

platform,

and

evaluating

the

cost

of

implementation including the software procurement, installation and training activities. 5. Assessing the ROI (Return on Investment) and determining the benefits of the CRM implementation vis a vis the investment involved 6. Planning and implementing the incentive schemes to ensure the users are encouraged and keep enthused to participate in the CRM initiatives 7. Measuring and monitoring impact of the CRM initiatives 8. Controlling and monitoring the participation by the key personnel in the CRM initiative 9. Putting the measurement systems including the generation of the statistical inferences in place to keep track of the improvement in customer profitability with the CRM initiative

SURVEY DONE ON CUSTOMERS OF BIG BAZAAR AND RELIANCE MART

1.Sales Persons Assistance: This refers to the extent of help an individual gets
from the sales person present in the store in choosing a particular product or in case of any query. There can be two instances i.e. inadequate help or excess help. Inadequate help is a very case because most of the time sales person is there to solve our queries. Instances of excess help can arise which makes the customer feel that the person is interfering in his decision or pushing the product to him

15% 35% big bazaar reliance mart not specified 50%

50% people preferred the sales person assistance of reliance mart and only 35% preferred Big Bazaar in this respect. 15% people were neutral that means they thought it to be the same in both the stores or they didnt need any such help from the sales person. 2. Expectation Fulfillment: Every customer has certain expectations when he visits a store. This expectation will vary from person to person. It can be getting a particular brand of product or particular quantity or variant of the product.

45% 55%

big bazaar reliance mart not specific

55% people felt that their expectations are more fulfilled at Big Bazaar while 45% preferred Reliance Mart. This may be because of greater product depth at Big Bazaar than in Reliance Mart.

3.) Discounts & Offers: These are announced from time to time to lure customers
to buy

40%

big bazaar reliance mart 60% not specific

4) Product Arrangement: This basically means the sequence or order in which different varieties, brands or segments of products are arranged so that customers feel at ease in selecting the product of his/her choice.

45% 55%

big bazaar reliance mart not specific

More 60% people preferred the Discounts & Offers of Big Bazaar while only 40% preferred that of Reliance Mart. This may be because more people are aware of the discounts offered by Big Bazaar due to their huge advertisements. 55% people preferred the product arrangement of Reliance Mart while 45% preferred that of Big Bazaar. This is because Big Bazaar has large space due to which products are more fragmented or scattered on the contrary Reliance Mart has smaller space in which products are more logically arranged. Also it has more space between the shelves which provide ease of walking to customers and they think less space means less energy wastage.

5) Accessibility: it refers to the r reach of the store to the customers

11%

big bazaar 50% 39% reliance mart not specific

50% people preferred Big Bazaar, 39% Reliance Mart & 11% were neutral that means accessibility doesnt matter to them. Majority likes Big Bazaar because it is situated in the main city while Reliance Mart is located at a very posh area which is very far from the main city.

6) Preference: it refers to the preference of the customer regarding making a choice

35% big bazaar reliance mart 65%

on the whole 65% people prefer shopping at Big Bazaar and 35% people preferred to do shopping at Reliance Mart. This may be because of any of the above mentioned reasons

CONCLUSION
Transformation by integrating customer facing front-end with back-end systems and Partners and suppliers. This will effectively help in generating better filtered data source from feedbacks received. Also the feedbacks will be dealt with in a much more careful and professional way. Growth of CRM facilitated by growth of IT.In this age of Information Technology an effective IT planning on the CRM can help the organization earn a lot of repute. New database solutions. This will help to filter and clean the raw data received from feedbacks more efficiently. Mutual benefits through CRM The stores and their customers can mutually benefit through the application of CRM. So at this era of customer:, the companies should project themselves as customers oriented as possible to help them benefit in a long term survival plan. Enhancing the shopping solutions. This is the age of innovation. Especially in Indian markets, low cost innovation is the ultimate tool to win the battle for the companies. Thus, the companies need to be innovative with their ideas and always try to deliver the customer with some added value for their purchase.

BIBLOGRAPHY
WWW.GOOGLE.COM WWW.CRMINFOLINE.COM WWW.CRMSOFTWAREBLOG.COM WWW.DYNAMICCRMTRICKBAG.COM WWW.WIKIPEDIA.COM WWW.CRMREVIEWS.COM

Customer Relationship Management-Ed Peelen CRM Magazine