What is 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 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. Many organizations turn to CRM software to help them manage their customer relationships. CRM technology is offered on-premise, on-demand or through Software as a Service CRM, depending on the vendor. Recently, mobile CRM and the open source CRM software model have also become more popular.
Customer Relationship Management Strategies
For sustained success, Customer Relationship Management strategy must be aligned with the organization’s mission, purpose and business strategies. CRM strategies are iterative processes; as the organization advances so to will the CRM strategy. If developing successful CRM strategies and objectives were either easy or routine, the implementation failure rate would not be deplorably high (over 50% according to research firm Gartner). This CRMsearch.com channel aggregates research, syndicated content, curated content and original content focused on designing, implementing and sustaining successful CRM strategies.
CRM Software Success is Dependent Upon CRM Strategy Customer Relationship Management isn’t a software application. It’s a business strategy aimed at growing mutually beneficial customer relationships. And interestingly, it’s a strategy that is incurring a lot of transformation. In fact, CRM strategies have evolved from an inside-out, technology focused design intended to manage both customer data and customer facing staff, to an outside-in orientation designed to satisfy and delight customers for mutual objectives. But with that said, CRM strategy remains elusive for many. As we all know, CRM efforts continue to incur unimpressive results, poor ROI and deplorably high failure rates. From my experience, the top contributing factor to CRM software deployments that fail to realize their slated objectives or deliver payback is a lacking strategy, or many times no strategy at all. CRM software enables CRM strategy, and good CRM strategies are both SMART (Specific, Measurable, Actionable, Realistic and Time-bound) and directly linked to the company’s most pressing business strategies. When CRM helps the company advance its business growth goals or top objectives, it gains active and visible executive sponsorship from the top of the organization, becomes integral to the company’s continued evolution and becomes sustainable.
But if there’s no accompanying strategy, CRM software has nothing to enable and instead diverts in an attempt to find other value for any user or stakeholder willing to apply the application for their individual or departmental goals. In this all too common scenario, the CRM application then inadvertently defines the strategic use based on what it can do, not what the company most needs done. And the differences between individual goals and the company’s strategic goals are substantial. From an individual perspective, CRM software may be reviewed and positioned in a way that helps sales people easily enter sales activities or opportunities.
However, from a strategic perspective, these same tasks may be reviewed and planned in the larger context of how to increase a salesperson’s total selling time or improve sales win rates. When reviewing CRM software solely from the end users tactical and operational perspectives, CRM software evaluators compare features and functions in a vacuum, and without clear understanding of how the application can directly contribute to much more empowering goals.
How to Create a CRM Strategy
Creating CRM strategy isn’t easy, but here’s a four step approach to guide your efforts. First, there must first be a compelling business need for change that is recognized throughout the organization. More often than not, the business need is either expressed in pain or opportunity. Second, there should be a clear CRM vision which directly addresses the need for change and articulates a destination. Recognize though that the destination is not a fixed endpoint, but instead an intersection of organizational priorities, guiding principles and measurable objectives which collectively achieve mutually beneficial customer relationships. It is essential that staff understand and buy in to the vision and this framework in order to make the vision a reality. Third, the organization must assess and design its culture and capabilities to deliver upon the vision.
This is where the CRM strategy takes shape. The CRM strategy must be designed with an outside-in customer focus and include an integrated mix of culture, people, business processes and enabling technology. Developing a business case is helpful in prioritizing the activities from a benefits and ROI perspective. This means that benefits must be expressed in measurable value and tied with costs. The business case should also identify the WIIFM (What’s In It For Me) for all CRM stakeholders. Finally, the company should develop a prioritized delivery plan in order to achieve its SMART objectives pursuant to forecasted results. I recommend the plan start small, iterate and be agile in order to support the inevitable learning and adjustments.
Also, the CRM strategy and supporting plan must be led by business leaders and supported by IT staff. When CRM projects are instead led by IT staff, it suggests a lack of strategy and that the primary CRM enablers (the users) are not the champions in achieving the vision. As the great Yogi Berra once said, “if you don’t know where you’re going, you probably won’t get there”. And from a CRM perspective, I’d advise that starting a CRM software implementation without a clear strategy is a lot like boarding the wrong train. You can try running down the corridor in the other direction, but it’s really a futile effort.
Bigbazaar CRM Strategy
Big Bazaar, a part of the Pantaloon Group, is a hypermarket offering a huge array of goods of good quality for all at affordable prices. Big Bazaar with over 50 outlets in different parts of India is present in both the metro cities as well as in the small towns. Big Bazaar has no doubt made a big name in the retail industry of India, moreover shopping here is further made a memorable experience with the varied rates of discounts on products as well as discount vouchers available in a variety of amounts, like INR 2000, INR 3000, INR 4000, INR 5000 and INR 10000 on all Big Bazaar products and accessories.Big Bazaar is a chain of shopping malls in India currently with more then 31 outlets, owned by the Pantaloon Group. The idea was pioneered by entrepreneur Kishore Biyani, the head of Pantaloon Retail India Ltd. The idea from the very beginning was to make Big Bazaar very comfortable for the Indian customer. That was Kishoreji’s strength as a retailer. He had a lot of confidence in what he was doing, even though it defied conventional logic.
Big bazaar is not just another hypermarket. It caters to every need of your family. Where Big Bazaar scores over other stores is its value for money proposition for the Indian customers. At Big Bazaar, you will definitely get the best products at the best prices – that’s what they guarantee. With the ever increasing array of private labels, it has opened the doors into the world of fashion and general merchandise including home furnishings, utensils, crockery, cutlery, sports goods and much more at prices that will surprise you. And this is just the beginning. Big Bazaar plans to add much more to complete their customers shopping experience.If one looks at Indian bazaars, mandis, melas, they are environments created by traders to give shoppers a sense of moment, of event, of place. They provide an inclusive environment where men and women from all castes, creeds and classes can come and shop at the same place.
The founders of Big Bazaar were from the beginning very clear that they had to reflect the look and feel of Indian bazaars at their modern outlets, so that no customer would feel intimidated with the surroundings.In India most of us are not prepared for the consumerism that is setting in this country. We underestimate how many people are going to fly and that s why our airports get crowded. We underestimate how many people will speak on the phone for how many billions of minutes and therefore our cell phone networks are always congested. But the minds responsible for the huge success of Big Bazaar have captured and understood the force of consumerism that is unfolding.Big Bazaar’s all over India attract a few thousand customers on any regular day, and a lot more if they are offering something extra on each buy, which they normally are! And the sales force at Big Bazaar along with the executives is prepared for them.
Database of Customers
Big Bazaar is huge hypermarket in which every day 1000 of people come to visit it and make purchase from the Big Bazaar, so it is difficult for Big Bazaar to maintain database of regular customer. Loyalty Program in Big Bazaar According to Kishore Biyani, the big brain behind Big Bazaar, price, quality or services are the only way to retain customers in retail. The repeat customers spend more than the average customers and need to be encouraged to come back. That’s why the stores have started offering special discounts to customers who join their loyalty card programme. Lifestyle, for instance, has a loyalty programme called `The Inner Circle’, while Pantaloons offers a`Green Card’.
Rewards programmes, Westside have `Club West’ and `First Citizen’ from Shopper’s Stop to woo the customer.Firstly, Citizen Citibank Card and ICICI Bank had tie-up with Big Bazaar. The ICICI Credit Card EDC terminals were setup in Big Bazaar. The company woos the customers to subscribe for Future Credit Card. The Future card is a loyalty cum Credit card of Future Holdings and You will get the full benefit of this card if and only if the card is used in any of the Future Group outlets like Big bazaar, and that too if swiped in an ICICI bank EDC machines in the outlet cash counter. Different schemes
Exchange offer :A new offer came in from Big Bazaar (Established retail chain in India), to exchange your old goods for coupons which one can reimburse with goods. Sabse Sasta Din 26th January and 15th August :On the Republic Day and independent day have special offer for ordinary Indians with Big Bazaar’s mega sales festival, ‘Sabsa Sasta Din’. No event before had influenced a day’s routine of thousands of people in different parts of the country like this sales festival. Wednesday Bazaar :Big Bazaar has introduced a Wednesday Bazaar concept called “Hafte Ka Sabse Sasta Din”. The aim, according to the chain, is “to give homemakers the power to save the most and even the stores in the city don a fresh look to make customers feel that it is their day”.
The Wednesday Bazaar also offers clothes, accessories and fashion jewellery and personal care products. Monthly Bachat Bazaar :Big bazaar has scheme of ‘Monthly Bachat Bazaar’ at the starting of every month, its start from date 1 to 8, its the time when most of the working people get their salaries, so big bazaar take good advantage of garbing these salary by giving this scheme. This offer is on food and beverages .most of working people buys food and beverages for whole month during these days.
Special offer before college or school start: Big Bazaar provide special offer when there is time of starting schools, give special offer or discount on stationery items and for college going students provide special offer on apparel like jeans, t – shirt etc., on foot ware, bags etc., In Big bazaar in store offer on different product is going on the whole year. Sampling of new product :Big Bazaar arranges a sampling stall for a new product coming into market to introduce. Customers can test those new items on free of cost and if they like it then make purchase of it. In short customers can trail a new product. Big bazaar has tie up with those products so that this can be possible. Big Bazaar has provided sampling for Nescafe, nimbooz 7 up a new product of PepsiCo, act to pop corn etc.
Big Bazaar provides a wide range of services to its customers like Trial rooms, elevators, car parking, security, baggage counter, trolleys, gift rapping, free call in case of emergency, for electronics item provide free home – delivery, wheel chair is provided at the entrance of the Big Bazaar, stretcher, in any case a mother wanted to feed her infant child or little child there is mother room to feed the child, water so that one could shop easily. They even provide them with after sale services in case of buying electronic items. One of the major services provided by them is one stop shop as one could get a whole range of items under one shop and at the most reasonable price. They always have their outlets in such a location where it is easy to commute.
Big Bazaar provides a customer help desk at entrance of the shop, where customer can get all the necessary information of any new scheme or offer going on. Customer desk is for helping and guiding the customers. Customer desk help have complaint or suggestion box in which customer can write their suggestion and complaint regarding service, product etc Big Bazaar provides toll free number for customer care + (91) (22) 40 – 490 – 490 and email id: – [email protected] through which customers can give their complaints and suggestion. A complaint of any customer can be solved within 24 hrs by a person who handle complaints if he is not able to solve it within 24 hrs then he try to convince that customer, that it would be solve within few hours or days. If that fellow is not at all able to solve the problem of the customer then it goes to zonal office.
Employee and sales person relationship with a customer: They have also given major emphasis to convince for customers in which layout has played a major role. The layout of the store is so effective that customers find their way out of what they want. Big Bazaar provides good employee service i.e their salesmen are always ready to provide help. Employee service is often neglected as part of good retail marketing but customer and employee interaction can be used as the significant tool for retail marketing.