INDIAN INSTITUTE OF MANAGEMENT

LUCKNOW

AT

Group 1
Ashwini Gupta PGP31075 | N Divya PGP31096 | Vignesh PGP31121 | Akila R PGP31130 |
Musadhiq PGP31389
Objectives of CRM
1. Acquiring new customers: The CRM is about building a high quality knowledge
management platform to stay connected with potential prospects and convert them to
expand customer base. Marketing efforts could be streamlined for increased and faster
conversions.

2. Measure and improve customer satisfaction: Putting systems in place to measure

customer satisfaction through critical KPI’s (like Net promoter score). The CRM should
also continuously work to improve these KPI’s to ensure loyalty of customers. The system
should be proactive both in the online and offline channels.

3. Efficiency improvement of Business: CRM should eliminate redundancies of the

business by estimating the stage of purchasing process each customer is returning to. The
system should then channelize its efforts in order to ensure maximum ROI of its
marketing budget.

4. Enrich and Enhance Support and Sales Team: Enhancing the support and sales team by
using the right talent management software, HR management software and other cloud-
based tools to increase the value of trained employees. CRM should be able to provide a
framework for increasing the customer service skills of existing employees.

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CRM Program at FLIPKART
STRATEGIC CRM
Customer-management orientation

The company realized that huge discounts alone cannot sustain the business and
customer satisfaction and preferences need to be addressed to keep it going. Flipkart has
built itself on the core foundations of reliability, quickness, credibility, variety and quality.

Providing good customer service enables Flipkart to enjoy high levels of customer
satisfaction, generate repeat business and ensure positive word-of-mouth. Hence it has
realized that customer satisfaction will be a key driver of success for such kind of
organization.

OPERATIONAL CRM

Sales Force Automation- Sales Force Automation transforms repetitive and routine
manual processes to automated processes, which helps sales reps operate in a more
efficient manner. For example, applications such as quarterly automated sales reports and
calendaring tools are key elements of sales technology. Sales reps can remain in contact
with distant customers via e-mails and cell phones, thus reducing travel hours. They can
also receive and manage orders from customers in an easy, timely fashion. Addition-ally,
applications like calendaring and routing tables help sales reps reduce downtime and
increase their own production during regular work hours.

Services Automation- To each service instance the ideal configuration of resources

necessary to deliver this service instance, (i.e. information, people, technologies,
organizations) is composed and (to the highest possible degree) executed dynamically and
in real-time.

Vendor Relationship Management- E-environment creation with the architecture of

Internal operations, architecture of inter-organizational operations & technologies

ANALYTICAL CRM
Customer knowledge discovery-

To put in place a recommendation system to gauge intent and help connect them with
products they need or might be interested in an automated manner to up-sell & cross sell
products. They may help users in following ways:

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• Help find: similar products

Ex: Recommendations to buy an apple phone when surfing Samsung phones.

• Help decide

Ex: people who viewed this ended up buying.

• Complete the purchase experience.

Ex: cases for phones, laptop bags etc.

• Excite or wow.

Ex: New Xiaomi phone launch etc.

CUSTOMER DEMOGRAPHIC ANALYSIS & CUSTOMER BEHAVIOR

MODELLING
To better understand and segment the customer and target the right customer by
analyzing demographics for a product and modelling consumer behavior. This could be
done by analyzing the following sources:

1. Bought history

2. Browse history

3. Compare history

4. Bought items

5. Wish list items

6. Rated products

7. Cart additions

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CRM Practices
There are various touch points through which Flipkart tries to interact with the customer.
The data collected through these touch points helps in understanding the customer better
and easily cater to their needs

Some of the channels under CRM at Flipkart are,

 Push Notification
 Email Channel

PUSH NOTIFICATION
There are two types of Push Notification

➔ Inorganic Push
➔ Organic Push

Inorganic Push
This notification is not personalized and is sent to entire Flipkart customer base. Special
teams sit in each category and they design the offers for the notification.

Figure 1: Inorganic Push notification

Organic Push
The app captures all the activity of the customer on the website like his browsing history,
wish-list, cart additions and his orders. Organic push is an automated notification that is
sent to customer based on the above captured data. So it is personalized for each
customer. For example: If there is a drop in price/less stock in an item on which the

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customer has shown interest, the app immediately sends a notification in-order to urge the
customer to make the purchase right away.

Figure 2: Automated Organic Push

Categories can also send special notifications to their affinity base (customers who has
shown interest in a particular category become the category’s affinity customer). This
helps in getting repeat sales from the customer to that specific category.

Limitations
To avoid cluttering the customer’s phone with notifications, there is a cap on the number
of notification that is sent to a customer in-order to provide good customer experience. So
a maximum of 7 notification can be sent to customer in a week (includes both organic and
inorganic notification).

EMAIL CHANNEL
Flipkart sends special emails to target customers with offers specially designed for them.
It also helps user to track their orders and register a complaint through this channel. It
sends both transactional and promotional emails.

Providing good customer service enables Flipkart to enjoy high levels of customer
satisfaction, generate repeat business and ensure positive word-of-mouth.

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The customer is informed at every step through e-mail/text when the order has been
confirmed⇾ order summary & shipment details + tracker ⇾ informing customer if order
has been delayed

Figure 3: Transactional Email(Left) and Promotional Email(Right)

SOCIAL MEDIA
Customers can easily reach out to the customer service team through their social media
channels like Facebook, twitter as well as a customer care number. Customer complaints
are quickly addressed and there are transparent return and exchange policies

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 Figure 4: Response to customer request via social media (twitter)

CATALOGUE
Category management teams at Flipkart make sure that each product category under
them are properly listed with necessary filters, proper images and full information required
to make a purchase decision

For each product category, a template is created. This template is filled by the seller. The
software automatically takes information from the template and displays it on the
website/app. So discrepancies can come due to bad template and improper filling by
seller.

CUSTOMER LOYALTY PROGRAMS

Flipkart has a subscription-based service for its customers called Flipkart First. It offers a
host of exclusive benefits and priority features for those signing up. Flipkart is the first e-
commerce site in India to offer such a service to its buyers

Customers who are selected for this service will get same-day guaranteed delivery at a
discounted price. This delivery service is currently available in 10 cities in India. The
customers will also get priority service from Flipkart’s support team. All their orders will be
shipped without any extra charges and with free in-a-day guarantee delivery, which is
otherwise a chargeable service. Besides, Flipkart First gives members a 60-day
replacement policy.

This subscription service is nothing but a ‘customer loyalty program’ modified for e-
commerce

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The company has also introduced Flipkart Assured which is a Quality and Speed
assurance program and a better version of Flipkart First Model. It aims to ensure that high
quality products are delivered within two to four days.

For Sellers
The company also has a loyalty program for its sellers. Sellers will be rated and bracketed
into three categories – gold, silver and bronze – and will be provided benefits such as
discounted shipping fees and quick payments.

CUSTOMER SUPPORT
Flipkart‘s Customer Support team consists of call-center agents who handle in-bound and
outbound calls and also a team that handles e-mail queries. The entire team is based out
of Bangalore and forms a core part of Flipkart‘s 6,000-strong employee base. Flipkart tries
to differentiate itself on superior shopping experience and customer service. So the
company prefers to train its own support staff rather than outsourcing the function to a
BPO agency. At present, a customer calls due to one of the below reasons:

 Sales Assistance
 General Enquiries
 Product/Shipping related enquiry
Flipkart tries to ensure that any order is placed within 6 clicks on the website. There is also
an outbound call-center that performs the following tasks:

 Pro-actively inform customers about any delay in deliveries.

 Pro-actively check the status of refunds or returns.
 Inform the user in case any delivery has not been successful due to the customer
not being present at his address.

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CRM Evaluation Metrics
PUSH NOTIFICATION- Most of the E-commerce websites are preferring to
send push notifications to its customers rather than sending emails as SMS and
push notifications have eight times higher response from consumers compared
to emails

Measures
 Conversion Rate- Units (Cart Addition is used as proxy)/Visits
 Read Rate- Total Reads/Total Recipients
 Drop Ratio- Total Drop/ Target Count
Drop Ratio is due to the velocity/frequency constraints. A customer can
receive only 7 pushes per week. This includes the Automated pushes which
is sent based on Cart Additions, Wishlist and Browse behavior. Any push
which is sent after a customer reaches his/her maximum frequency gets
dropped.
 Read to visit Ratio- Out of the total customers who have clicked on the push
notification, how many customers have ended up on the landing page. It is
calculated as follows,
Total visits(Category)/Total Visits(Flipkart level)

EMAIL - MEASURES
 Open Rate- Open/Reads – determines how good is your subject line
 Unique open rates – unique opens/read rate
 Click to open- clicks/open – determines how good is your offer call out
 Unique click/unique open
 Conversion- how good is the conversion

AFFILIATES
 Click through Rate (CTR) In addition to the type of marketing employed, we
should also always look at how focused the affiliate’s audience really is.
Coupon affiliates, for example, will always register a significantly higher CTR
(35-40%) than comparison shopping affiliates; while generic news portals will
always be yielding lower CTRs than niche blogs (especially when reviews are
involved)

SEM/FLIPKART ADS
FSA (Flipkart Shopper Audience) personas
This feature targets Flipkart audience effectively via defined personas such
as gadget freaks, travelers etc. This allows brands to target these audiences
not just on the Flipkart app but also on other mobile apps through FSA

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 retargeting. The current targeting is done on the basis of gender and
geography. The reporting metrics are:
 Views - A view is counted when the consumer views your ad.
 Spend - Spend shows the amount that was spent during a specific time
range. This is not the Total allocated budget.
 Actions - When a consumer clicks on your Ad it is counted in as an action.
 Action Rate - Action rate measures how often consumers click an Ad after it's
shown to them. AR=Clicks/Impression
 Engagement Rate - Engagement rate measures consumer’s interaction rate
with the Ad.E.g - Swipe, click etc ER=Engagement/Impressions
 Orders - The number of units sold through an Ad campaigns
 Conversion Rate - Ratio of orders to clicks. Conversion Rate = Total orders/
Total clicks
 Revenue - Gross merchandise value of orders generated through ads
 ROI - Return on investment for the ad campaigns created. Total
Revenue/Total ad spends
 Leads - A lead is calculated when a consumer fills a lead form & explicitly
permits Flipkart to share the information with the Advertiser.
 Lead rate - Lead rate measures frequency of a consumer sharing details
through a lead form post an Ad click. Lead rate=Leads/Clicks

Targetting
Demographic Features
 Location - Geographic location.

 Gender - Based on female or male consumer.

 Age - age group of the consumer.

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Commerce Segments

 Payment mode - Payment mode used by a consumer in his purchase from

Flipkart. E.g. “A consumer who has used netbanking in his purchase
 Payment partner - Banking partner used by a consumer in his purchase from
Flipkart. E.g. “A consumer purchased through SBI”
 Price affinity - This is the price bracket (High, Medium, Low) a consumer likes
to purchase in from Flipkart within a store. E.g. “A consumer who likes to buy
expensive shoes has price affinity as High in the shoes store”
 Brand affinity - List of brands a consumer likes based on his browse or
purchase . E.g. “A consumer who likes a particular brand based on regular
browsing or purchasing products from that brand”
Behavioral Segments
 Store Browsed - Store (category) or sub-store a consumer browsed (visited)
within a particular time frame. E.g. “A consumer who has browsed the shoes
store in the last week.
 Store Purchased - Store (category) or sub-store where a consumer
purchased within a particular time frame. E.g. “A consumer who has ordered
from the shoes store in the last week”
 Add to cart - A store (category) or sub-store from which a consumer has
added a product to his cart within a particular time frame. E.g. “A consumer
who has added a product from the shoes store in his cart in the last week”
 Add to wishlist - A store (category) or sub-store from which a consumer has
added a product to his wishlist within a particular time frame. E.g. “A
consumer who has added a product from the shoes store in his wishlist in the
last week”
 RFM - This is “Recency, Frequency, Monetisation” classification of Flipkart
consumers. This segment's consumers on the basis of
1. How recently they visited
2. How regularly they visit
3. How much do they spend

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Full Funnel Measurement Technique

Full Funnel Measurement is a smart advertising measurement system that

provides an analysis of a consumer’s purchase journey. From awareness,
consideration to purchase, this tool measures the ad uplift at each point. A
unique point to note here is that the treatment and control set is derived from the
Flipkart shopping audience and not a generic database, resulting in accurate and
real time data. The Full Funnel Measurement reporting tool tracks metrics such
as:
 Awareness: Search, Filter, RPPV (Remaining product page views)
 Consideration: QPPV (Qualified product page views), Add to cart, Wishlist
 Purchase: Checkout, Purchase
This provides advertisers with insightful learnings that can be used to
optimize
their ad spends.

Brand Index
Brand Index, a feature that is offered by Flipkart Ads, is an indication of how a
particular brand performs on three funnel indicators – awareness,
consideration and purchase. The Index provides a score for each brand and
the same is available for advertisers to compare their performance
against competing brands in the industry.

SEO
 Customer Engagement
o Bounce Rate- the percentage of visitors to a particular website who navigate
away from the site after viewing only one page
o Daily Pageviews per Visitor- average time on site is a type of visitor report
that provides data on the amount of time (in minutes or seconds) visitors
have spent on your website.

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o Daily Time on Site

 Number of URL Redirects- A URL redirect is a webserver function that sends

a user from one URL to another.
 Top Keywords from Search Engines- Which search keywords send traffic to
this site?

 Upstream Sites- Which sites did people visit immediately before this site?

 Backinks- What sites link to flipkart.com?

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 Similar Websites by Audience Overlap- What sites are related to
flipkart.com?

 Where do visitors go on flipkart.com?

 Audience Demographics- Who visits flipkart.com? How similar is this site's
audience to the general internet population?

 Audience Geography- Where are this site's visitors located?

 Site speed- Is a measurement of how fast the content on your page loads

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