Description
Retailing is a distribution channel function, where one organization buys products from supplying firms or manufactures products themselves, and then sells these directly to consumers
Retailing and
CRM
Retailing
“Retailing is a distribution channel function, where one
organization buys products from supplying firms or
manufactures products themselves, and then sells these
directly to consumers.”
Forms of Retailing
? Convenience stores
? Discount stores
? Factory/company outlets
? Specialty stores
? Supermarkets
? Department stores
? Hypermarkets
Characteristics
? Highly unorganized and & fragmented industry.
? Linkages with the economic growth (22% to GDP and 8%
employment).
? Rural and urban divide.
? Emergence of multiple retail formats.
? Long supply chain.
? Working capital intensive.
? Generating employment opportunities.
Product Based Segment
? Apparels.
? Footwear.
? Health and Beauty Care Services.
? Consumer Durable and Home Appliances.
? Furnishing, Utensils, and Furniture Home and Office.
? Food and Grocery.
? Books, Music and Gifts.
Kinds of Retailing
? Unorganized:
? Ownership and management rest with one person.
? Accounts for 2/3
rd
of the retail market.
? Normally street markets, counter stores, kiosks and vendors.
? Organized:
? Modern retailing.
? Offers variety of products (quality, value for money).
? Shopping a memorable experience.
Organized Retail Sector
? Tremendous scope; to grow faster than GDP growth in next
few years.
? Grow at faster CAGR of 21.8% to $ 55 billion, garnering
around 15% of overall retail sales.
? Top organized retail categories by 2015 would be food,
grocery and general merchandise; apparel; durables; food
service; and home improvement.
Factors for Business Growth
? Rising urbanisation.
? Growing consumer class.
? Growing per capita expenditures.
? Economic growth
? Growing spread of „plastic money?.
? Changing face of Indian consumerism – from necessities to
luxuries.
? Rising number of nuclear families.
? Growing female working population.
? Developments in the real estate scenario.
? 50% of country populace under 25 years of age; prime driving
factor for modern retail sector.
“There is only one boss. The Customer!
He can fire everybody in the company,
from the chairman on down, simply by
spending his money somewhere else.”
-Sam Walton, founder of Wal-Mart
Indian Customers
? Time killers: Moves around & covers lot of store; spending
less time; waiting for someone; no intention to buy; Zero
conversion rate.
? Focused Fulfillers: Moves quickly to the specific product;
82% conversion rate.
? Product Groupies: Have specific notion about the store; will
touch many products, but focus on the target group product;
37% conversion rate.
? General Browsers: Cover large area; move slower than time
killers; non-focus interaction with product; 2% conversion
rate.
? Pleasure Seekers: Spends long time; easily influenced;
urgency; 79% conversion rate.
Characteristics of Customers
? High disposable income.
? Price sensitive.
? Value for money.
? Educated.
Major Organizations of the Sector
Name Sales Turnover (cr) Market Cap
Pantaloon Retail 4097.43
Shoppers Stop 1712 3012.03
Trent 716.71 2360.15
Kewal Kiran 236.62 894.86
Brandhouse 737.45 69.15
Koutons 535.55 59.73
Customer Retention-Retail
? Discount pricing.
? Attractive variants of products and services.
? Loyalty programs.
? Offers.
? Attractive service.
Customer Defection-Retail
? Poor servicing.
? Quality issues.
? Few variants.
? Billing/Queuing issues.
? Facility location.
CRM Penetration
? Organized:
? Single-brand retailers operating in state, national, &
international platform.
? Multi-brand retailers operating in state & national platforms.
? How many of them have CRM??
? How many of them are having CRM and using it better and
not using it?
Process Flow
Receiving
the
customer
Enquiring Directing Verifying Billing Escorting
After
sales
servicing
Solution Providers
? Siebel (sales and marketing)
? Integrated Retail Management Consulting Pvt. Ltd. (POS
s/w)
? Biz Technologies(Customer relations).
? Radiant Systems(e-mail marketing)
Operational CRM
? Front office processes.
? Customer interaction added to contact history.
? Retrieval of information.
? Customers can interact with different people or different
contact “channels” in a company over time without having to
repeat the history of their interaction each time.
Customer
Touch
Points
Media
Physic
al
Phone
Wiki
Blog
Email
Snail Mail
Web
Personal
Fax
Source: Elijah Ezendu, CRM
General Areas of Operational CRM
? Sales Force Automation
? Customer Service and Support
? Enterprise Marketing Automation
Key Tasks in Sales Automation
? Tracking Customer Preferences
? Tracking Customer Demographics
? Contact Management
? Quote Management
? Sales Administration
? Sales Forecasting
? Lead Management
? Account Management
? Performance Management
Customer Service and Support
? Automation and Coordination (service requests,
product returns, customer complaints, and enquiries).
? Services and support (contact center, call center, web
portal, or face-to-face interaction at a remote location
in the field).
Enterprise Marketing Automation
? Application of technology to marketing processes.
? Information pertaining to industry trends, macro-
environmental factors and competitors.
? Facilitates appropriate engagement and control of campaign
management, event-based marketing, cluster customer
segmentation, individual customer segmentation.
? Increasing marketing efficiency.
Analytical CRM
? Analyses customer data.
? Design and execution of targeted marketing & specific
customer campaigns.
? Optimize marketing effectiveness.
? Analysis of customer behavior to aid product and service
decision making.
? Management decisions.
? Prediction of the probability of customer defection.
Applications of Analytical CRM
? Campaign management and analysis.
? Customer segmentation.
? Customer satisfaction measurement.
? Sales Coverage Optimization.
? Financial Forecasting.
? Program Evaluation.
? Price Optimization.
? Customer Satisfaction Growth.
? Product Development.
? Fraud Detection.
? Risk Management.
? Contact Optimization.
Impact of Analytical CRM
Customer
Acquisition
• Cross-Selling
• Up-Selling
Customer
Retention
• Retain
current
customers
Customer
Information
• Offer key
information to
customers
effectively
Relationship Between Operational and Analytical CRM
Practice
Strategy
Customer Data
New Strategy
Operationa
l
CRM
Process
Data
Analytical
CRM
Source: Siddiqi, Akhgar & Wise, Framework for Implementation of CRM Strategy in Retail Sector
Customer Touch Points
Back Office
Security and Privacy-Issues
? Customer data being lost or stolen.
? Employee access issues.
? Hacking.
? Misuse of data.
Security and Privacy-Solutions
? Encryption of sensitive data.
? Providing the security foundation for critical data and
applications.
? Protects critical data from both internal and external threats.
KPIs for CRM
? Compelling product & service offerings.
? Create and manage customer loyalty programs.
? Improved customer service.
? Real-time info across departments and systems.
? Advanced security of client data.
? Customer lifetime purchase value.
? Customer purchase value.
Future Trends in CRM
? Products in accordance with customer?s mindset.
? More action than transaction.
? Smart shopping.
? International players.
? Social CRM
Case Study-Landmark
? Scale up existing loyalty program.
? Ability to earn loyalty points anywhere and burn it anywhere.
? Different group companies had their own point-of-sale systems.
? Collecting CRM data on a daily basis from different locations; did
not have dedicated IT personnel.
? Web-based module that connects to a POS database and transfer
data to a central Oracle database.
Contd.
? Some group companies had POS systems with other databases.
? Small application on each POS containing sales data and would
be uploaded through a Web program to a central server.
? Group loyalty program cards were issued with barcodes.
Contd.
? Rs 20-lakh project, in November 2008.
? Java/Oracle Platform.
? Launched in March 2009.
? Well received and achieved ROI soon.
Thank you!
doc_719330432.pptx
Retailing is a distribution channel function, where one organization buys products from supplying firms or manufactures products themselves, and then sells these directly to consumers
Retailing and
CRM
Retailing
“Retailing is a distribution channel function, where one
organization buys products from supplying firms or
manufactures products themselves, and then sells these
directly to consumers.”
Forms of Retailing
? Convenience stores
? Discount stores
? Factory/company outlets
? Specialty stores
? Supermarkets
? Department stores
? Hypermarkets
Characteristics
? Highly unorganized and & fragmented industry.
? Linkages with the economic growth (22% to GDP and 8%
employment).
? Rural and urban divide.
? Emergence of multiple retail formats.
? Long supply chain.
? Working capital intensive.
? Generating employment opportunities.
Product Based Segment
? Apparels.
? Footwear.
? Health and Beauty Care Services.
? Consumer Durable and Home Appliances.
? Furnishing, Utensils, and Furniture Home and Office.
? Food and Grocery.
? Books, Music and Gifts.
Kinds of Retailing
? Unorganized:
? Ownership and management rest with one person.
? Accounts for 2/3
rd
of the retail market.
? Normally street markets, counter stores, kiosks and vendors.
? Organized:
? Modern retailing.
? Offers variety of products (quality, value for money).
? Shopping a memorable experience.
Organized Retail Sector
? Tremendous scope; to grow faster than GDP growth in next
few years.
? Grow at faster CAGR of 21.8% to $ 55 billion, garnering
around 15% of overall retail sales.
? Top organized retail categories by 2015 would be food,
grocery and general merchandise; apparel; durables; food
service; and home improvement.
Factors for Business Growth
? Rising urbanisation.
? Growing consumer class.
? Growing per capita expenditures.
? Economic growth
? Growing spread of „plastic money?.
? Changing face of Indian consumerism – from necessities to
luxuries.
? Rising number of nuclear families.
? Growing female working population.
? Developments in the real estate scenario.
? 50% of country populace under 25 years of age; prime driving
factor for modern retail sector.
“There is only one boss. The Customer!
He can fire everybody in the company,
from the chairman on down, simply by
spending his money somewhere else.”
-Sam Walton, founder of Wal-Mart
Indian Customers
? Time killers: Moves around & covers lot of store; spending
less time; waiting for someone; no intention to buy; Zero
conversion rate.
? Focused Fulfillers: Moves quickly to the specific product;
82% conversion rate.
? Product Groupies: Have specific notion about the store; will
touch many products, but focus on the target group product;
37% conversion rate.
? General Browsers: Cover large area; move slower than time
killers; non-focus interaction with product; 2% conversion
rate.
? Pleasure Seekers: Spends long time; easily influenced;
urgency; 79% conversion rate.
Characteristics of Customers
? High disposable income.
? Price sensitive.
? Value for money.
? Educated.
Major Organizations of the Sector
Name Sales Turnover (cr) Market Cap
Pantaloon Retail 4097.43
Shoppers Stop 1712 3012.03
Trent 716.71 2360.15
Kewal Kiran 236.62 894.86
Brandhouse 737.45 69.15
Koutons 535.55 59.73
Customer Retention-Retail
? Discount pricing.
? Attractive variants of products and services.
? Loyalty programs.
? Offers.
? Attractive service.
Customer Defection-Retail
? Poor servicing.
? Quality issues.
? Few variants.
? Billing/Queuing issues.
? Facility location.
CRM Penetration
? Organized:
? Single-brand retailers operating in state, national, &
international platform.
? Multi-brand retailers operating in state & national platforms.
? How many of them have CRM??
? How many of them are having CRM and using it better and
not using it?
Process Flow
Receiving
the
customer
Enquiring Directing Verifying Billing Escorting
After
sales
servicing
Solution Providers
? Siebel (sales and marketing)
? Integrated Retail Management Consulting Pvt. Ltd. (POS
s/w)
? Biz Technologies(Customer relations).
? Radiant Systems(e-mail marketing)
Operational CRM
? Front office processes.
? Customer interaction added to contact history.
? Retrieval of information.
? Customers can interact with different people or different
contact “channels” in a company over time without having to
repeat the history of their interaction each time.
Customer
Touch
Points
Media
Physic
al
Phone
Wiki
Blog
Snail Mail
Web
Personal
Fax
Source: Elijah Ezendu, CRM
General Areas of Operational CRM
? Sales Force Automation
? Customer Service and Support
? Enterprise Marketing Automation
Key Tasks in Sales Automation
? Tracking Customer Preferences
? Tracking Customer Demographics
? Contact Management
? Quote Management
? Sales Administration
? Sales Forecasting
? Lead Management
? Account Management
? Performance Management
Customer Service and Support
? Automation and Coordination (service requests,
product returns, customer complaints, and enquiries).
? Services and support (contact center, call center, web
portal, or face-to-face interaction at a remote location
in the field).
Enterprise Marketing Automation
? Application of technology to marketing processes.
? Information pertaining to industry trends, macro-
environmental factors and competitors.
? Facilitates appropriate engagement and control of campaign
management, event-based marketing, cluster customer
segmentation, individual customer segmentation.
? Increasing marketing efficiency.
Analytical CRM
? Analyses customer data.
? Design and execution of targeted marketing & specific
customer campaigns.
? Optimize marketing effectiveness.
? Analysis of customer behavior to aid product and service
decision making.
? Management decisions.
? Prediction of the probability of customer defection.
Applications of Analytical CRM
? Campaign management and analysis.
? Customer segmentation.
? Customer satisfaction measurement.
? Sales Coverage Optimization.
? Financial Forecasting.
? Program Evaluation.
? Price Optimization.
? Customer Satisfaction Growth.
? Product Development.
? Fraud Detection.
? Risk Management.
? Contact Optimization.
Impact of Analytical CRM
Customer
Acquisition
• Cross-Selling
• Up-Selling
Customer
Retention
• Retain
current
customers
Customer
Information
• Offer key
information to
customers
effectively
Relationship Between Operational and Analytical CRM
Practice
Strategy
Customer Data
New Strategy
Operationa
l
CRM
Process
Data
Analytical
CRM
Source: Siddiqi, Akhgar & Wise, Framework for Implementation of CRM Strategy in Retail Sector
Customer Touch Points
Back Office
Security and Privacy-Issues
? Customer data being lost or stolen.
? Employee access issues.
? Hacking.
? Misuse of data.
Security and Privacy-Solutions
? Encryption of sensitive data.
? Providing the security foundation for critical data and
applications.
? Protects critical data from both internal and external threats.
KPIs for CRM
? Compelling product & service offerings.
? Create and manage customer loyalty programs.
? Improved customer service.
? Real-time info across departments and systems.
? Advanced security of client data.
? Customer lifetime purchase value.
? Customer purchase value.
Future Trends in CRM
? Products in accordance with customer?s mindset.
? More action than transaction.
? Smart shopping.
? International players.
? Social CRM
Case Study-Landmark
? Scale up existing loyalty program.
? Ability to earn loyalty points anywhere and burn it anywhere.
? Different group companies had their own point-of-sale systems.
? Collecting CRM data on a daily basis from different locations; did
not have dedicated IT personnel.
? Web-based module that connects to a POS database and transfer
data to a central Oracle database.
Contd.
? Some group companies had POS systems with other databases.
? Small application on each POS containing sales data and would
be uploaded through a Web program to a central server.
? Group loyalty program cards were issued with barcodes.
Contd.
? Rs 20-lakh project, in November 2008.
? Java/Oracle Platform.
? Launched in March 2009.
? Well received and achieved ROI soon.
Thank you!
doc_719330432.pptx