CRM Practices in Retail Industry

Presented By:-
Aditya Sharma
Ameya Karve
Ankur Ahir
Kaustubh Zinzuwadia
Maulik Buddhdev
Yaseer Khan
What is CRM?
Information industry

Methodologies, software & internet
capabilities.

Manage customer relationship.

Organized and efficient manner.


CRM software for retail

Advantages of CRM
Increase relationships with clients
Increase of sales
Reduction of sales cycle
Better communication channels
Create detailed profile
New selling opportunities
Provides better customer service


TESCO
TESCO
CLOUD ARCHITECTURE
Software as a Service:
Platform as a Service:
Infrastructure as a Service:







Shift in Data storage
Physical storage devices

Cloud storage
Background Note
The first store was opened in 1929 in Burnt Oak,
Edgware.
By 1930, around 100 stores were operating under the
Tesco label.
In 1948, the first self-service Tesco store was opened
in St Albans.
Gradually Tesco grew over 400 stores.
In 1960, Tesco began selling clothing, household
goods, fresh foods and groceries.
In 1968, Victor Value came under the companys fold.
In 1974, Tesco began operating petrol pumps.

Continue
In 2001, Tesco acquired a 53% stake in
Dunnhumby.
In 2001, a host of new ranges of food products
were launched.
In May 2002 Launched 1
st
store in malaysia.
By mid 2003, Company was operating 2291
stores around the world.

Tesco - Pre CRM
Tesco mass-customized the magazines by
sending it to their customers.

Every magazine had a unique combination of
articles, advertisements related to its offerings
and third party advertisements.

Promotional coupons were distributed though
this magazines.



Adoption of Strategies
In 1979, company successfully launched a price cutting
campaign named Checkout at Tesco.

In 1985, Tesco Launched the Healthy Eating initiative
which aimed at conveying the nutritional value of the company
to the customers.

In 1990, Tesco came with three new formats stores,
Tesco Metro: To serve local community of region,
Tesco Express: Combination of petrol pump & convenience
store,
Tesco Extra Store: Hypermarket focused equally on food and
non food merchandise.
Reason for adopting CRM
Inappropriate management
Insufficient customer data
Low level of customer satisfaction
Maximizing the channel sales
Simplify inventory management
Advance reporting
Strengthen workforce management

CRM Software at Tesco
Software Vendor:-RightNow
Software Name:-Tesco Direct
RightNow was individual indentity when it
was purchased by Tesco.
On December,2011 RightNow was overtaken
by Oracle.
Tesco Direct is the software which was
customized only for Tesco.
Price-90,000
TESCO CRM IMPLEMENTATION
Video to be attached here.
Tesco-Post CRM
1993-94 - Tesco launched the First Class Service.
1994 - Company launched the One on Front scheme to
reduce the time of customers at check-out counters.
Tesco store personnel ensure that if there was more than one
person at any counter will lead to open for the person second
in line.
1994 - Tesco began tied up with Dunnhumby.
1995 - Tesco launched the Clubcard Loyalty scheme.
In this way Company started collecting the database of
customers like name, add, dob, e-mail etc.
2000 - Company tied up with a Safeway Inc to launch an
online grocery shopping services

With the help of data mining they analyzed the data and classified the
customers into four broad categories:
1) Premium
2) Standard
3) Potential
4) Uncommitted.

Customers were categorized along dimensions such as value,
convenience, frozen, healthy eating, fresh and kids.
Tesco began giving many special privileges, such as Valet parking
and personal attention from store managers to customers.
Instance: Tescooters (scooters) were purchased by the thailand
customer and it was delivered to their home.
With www.tesco.com company emphasized on E-commerce.
Special cards were created for mothers.
Special attention given to expectant mothers in the form of personal
shopping assistants.
Sales have increased by 52% and still growing at a rate higher than
the industry average within 5 years.
Floor space increased by 150%.
In the online space, tesco.com boasts 500,000 transactions weekly,
totaling nearly two billion pounds in sales each year.
RightNow will also provide customers and in-store customer service
employees with the opportunity to self-serve via Tesco Direct.
RightNow will support Tesco Tech Supports customer care goal by
giving them a single view of its customers enabling them to understand
exactly why their customers contact them, helping them to respond
accordingly.






It will also empower agents and employees to respond to queries
consistently and help customers to find answers to their questions
via the web.
SaaS is the simplest and safest way to store the knowledge.
Clubcard holders receive one point for every 1 (1 point for every
1 ) they spend.
Holders can also get extra points on special offers and receive one
"Green Clubcard Point" for every carrier bag they re-use as part of
Tesco's green initiative.
These can be used to obtain discounted day trips, magazines, hotel
breaks, restaurant tokens and other offers.

2009-As part of the Clubcard 2 launch, it was announced that, from
17 August, all instore and online purchases would attract double
points (2 points per 1).

2009/10-Reports indicate that this initiative was successful in
increasing the number of active cardholders from 14 million to 15
million in the market year Examples of available brands are
Monarch Airlines scheduled flights

2014-Tesco launched a new money saving offer for fuel. The Tesco
Fuel Save means customers can earn up to 20p off every litre of fuel.
For every 50 spent in Tesco Stores or Tesco.com, customers
receive 2p off every litre of fuel.

Tesco have recently launched both an iPhone, BlackBerry, Android
(operating system) and a Nokia Ovi applications so points can be
collected by presenting a barcode on the handset instead of a keyfob
or card.
Tesco used the info.
Tesco used the information generated by the Clubcards in
following ways:

Pricing
Merchandising
Promotions
Customer Service
Media Effectiveness
Customer Acquisition
Market Research
Customer Communication.


CRM

Reliance Retail

Reliance Industries Ltd.

"Growth has no limit
at Reliance.
I keep revising my
vision.
Only when you can
dream it,
you can do it."
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002
Different Retail sectors in Reliance
Reliance Industries Limited
Reliance Fresh
Reliance Trends
Reliance Mart
Reliance Petroleum
Reliance Jewel

Pre CRM at Reliance
Personal contact numbers

Policy less followed in small towns

Common policy for Reliance Fresh and
Reliance Mart

Delay in processing of membership cards

Long queues at billing counters
Measures taken
Inform through
SMS
Regional policy
adopted
Feedback
calling
More new
technologies
adopted
CRM Software at Reliance
Software Vendor:- SAP
Software Name:- MySap, SAP R/3
Software was purchased in 2002 at the cost of
60 lakhs.

Note CRM Software for Reliance
Communication and Reliance Finances
Clarify eFront Office (Amdocs Company).

SAP in Reliance

MySap software record and store information
about customers, various customer interactions,
their problems etc which can be accessed by
employees in different departments of the
company.

These information are used by the organization
to make future plans that can satisfy the
customer on a better way and retaining them
for a longer period.

VARIOUS ASPECTS

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.)
CRM Policy Of Reliance
The customers also get the opportunity of availing four
different kinds of insurance on the payment of a nominal fee.

For example a customer can get an accidental death insurance
offers six lakhs on the payment of Rs. 400 only. Other forms
of insurances are disability, hospitalization and home
insurances.

The members of reliance one get the opportunity of taking part
and winning prizes by the way of lucky draws on regular
intervals.

CRM Strategy
CRM policy of reliance can be divided into four
broad category in every sector:

1) Customer Loyalty
2) Customer Retention
3) Customer Communication
4) Customer Gratification
Customer Loyalty

Various measures taken for attraction to drive
loyalty:

1) Opportunity of taking part and winning the
prizes by the way of lucky draws on regular
intervals.
2) The point system which provides one point
for every100 Rs purchase.

Customer Retention
This is practiced at the zonal level.
Discounts which prove to be helpful in
generating revenues are repeated in future
again.
Complaint management and grievance
handling system at customer service desk
which increases the satisfaction.
Customer Communication
Regular offers are communicated through e-
mails and sms to Reliance One members.
They try and create database while organizing
of various special events in the store.
Festive cards and other occasional cards are
regularly sent to Reliance One customers.
Gift vouchers and discount coupons gives the
feeling of care.

CRM Creative Concepts

Reliance One Membership
Customer will get 1% point
of his purchase amount .
Free 50,000 Rs Accidental
Death Insurance.
Earning Reliance One
points on your all purchase
at Reliance retail stores.
Bonus Reliance One points
even on everyday essentials.
Invites to exclusive events.
CRM Direct Mail Triggers

Home Delivery
Installation
Home Demo

Repair
Replace Service

Exchange

Complaint

Purchase

Purchase

Intent

Customized New

Offers & Events Launches

Resolve

Special

Occasion

Home Solution

Home mapping

Apology

Offers

Win-back

Wish Cards
Product Catalog

Getting-to-Know

Satisfaction Feedback

Satisfaction

Offers
Offers

Cross-Sell

Feedback

Service Solutions

Feedback

CRM Reward Points : Earn Rationale

Option 1

for every

Rs100

spend

you get

=1

point

=

worth

1

rupee

Option 2

Recommended

for every you get

Rs100 =1

spend point

worth

= X

rupee

Option 3

for varying

you get

worth

spend

X =

1=

point

X

rupee

CRM MySAPCRM

Supports customer-related processes from end to end
- all customer-related tasks across departments integrating invoicing, shipping, etc.

Provides customer intelligence across the enterprise
- customer data for faster and better decision making

Delivers immediate value
- Enables you to address strategic priorities

CRM MySAPCRM

CRM MySAPCRM

Identifying biz target gaps

CRM MySAPCRM Final campaign effectiveness = 80%

Comparison
Lack of adoption of CRM software by
employees.
Poor communication
Advance reporting
Work force management
Inventory management
Customer Centric view



Difference between TESCO AND RELIANCE

TESCO RELIANCE
ClubCard RelianceOne
Single day Delivery Irregularity in delivery
Online purchase with dedicated apps Online purchase but no dedicated apps
Hosted Servers No such servers
Valet parking for Club Card holders

Generalized FCFS based.

Future Trends in CRM
Products in accordance with customers
mindset.
More action than transaction.
Smart shopping.
International players
Social CRM


THANK YOU