A Presentation on Module V: Issues and Challenges in Implementation of CRM

Prepared by Nilesh Sen Manohar Rathore Riddhi Mehta Jesal Kothari Jaydeep Budheliya Shekher Nirmal Amod Hardikar

Submitted to

Prof. Neelam Kshatriya

Topics Covered Overview of Retail CRM Implementation Road Map

CRM Roadblocks (4Ps)

Emerging trends in CRM Evaluating customer retention plan Learning from customer defections Phased development

Rural or Urban, Old OR Young, Malls OR Kirana Shops & So on People from every Nook & Corner needs everything which is available @ Retail Store.

5th Largest in the world.

Accounts 12% of GDP

Traditional to Shopping Malls

Organized retail (8%)

Major PlayersReliance, Tata, Aditya Birla Group, K Raheja Group.

Entry of MNCWalmart,Carrefour,Costco

O V E R V I E w

1995 2003 2006 2007

Emerging
Growth Retail Boom Managing its NO.1 Position

2008
2010

High Retail GOLD Rush

Continued Growth

Customer Retention and Loyalty

High Customer Profitability

Reduced Cost of Sales

Low cost of retaining old customers

Customer Satisfaction

Improved Employee Productivity

Micro Marketing

Business Performance Visibility

Rank 1 2 3 4 5 6 7 8 9 10

Company Wall mart Kroger Target Wal Green Costco The home depot CVS caremark Lowes Bestbuy Safeway

Rank

Company

1
2 3 4 5 6 7 8 9

REI
IKEA Costco Nordstrom J Crew The Gap American Eagle outfitter Anthropologies H&M

10

DSW

Maharashtra

Ahmedabad

Goa

Definition of Customer Retention

Customer Retention is the activity that a selling organization undertakes in order to reduce customer defections.

Facts about CR
Leaky Bucket Theory CRM is part of CR

Customer complaint

Lessening the Defection rate

Cost of acquiring a new customer

Customer satisfacti on V/S CR

Why Customer switch?

Advantages of CR
Zero Customer Defection

Improve profitability

Customer churn Minimised

Customer delight

Customer retention is increasingly becoming more and more important .

Most firms offer loyal customer rewards for their loyalty.

However many rewards program are misunderstood and often wrongly applied.

Customer Retention plans

Customer portfolio analysis, customer retaining mareting mix, reorganisation for Customer retention.

Customer Portfolio Analysis

Purchasing history

Design of a portfolio

Portfolio segment

Reduce defector by 10%

Optimal balance in customer portfolio

Contd..
Customer Categories First time customers Repeat Customer Switched away, then returned Last time (Defectors) Total Actual Sales Target sales (2012) (2013) 28% 25%
40% 10% 60% 5%

22%
100%

10%
100%

Lack of Organisation al Control & Coordination

Lack of Sensitivity

Insufficient linkage between marketing & Operation

Realistic target turnover rates

High Customer expectation

Capturing customers

Educating the Customers

Companies are adopting it

Rewards

Shehker

CRM Implementation Road Map

Implementation Road Map

A CRM Roadmap is a strategic plan that identifies how an organization can meet and exceed its customers' needs. This includes, but is not limited to, assessing how the sales, marketing and service entities work together to: 1. gain insight from their customers (e.g. purchase history, desired products/services), 2. produce valuable offerings/products (e.g. personalized product) and

3. provide the ultimate customer experience (e.g. multiple touchpoints, 360 degree view of the customer).

CRM Road MapHow?

So how do organizations know which CRM capabilities they have, and which they need to realize their strategic goal? Now we will see primary steps (which have been used cross-industry, including financial services, electronics and hightech, consumer products, manufacturing, etc.) to follow when developing a CRM Roadmap.

Step 1: Gain Senior Level Sponsorship

The sponsor for a CRM Roadmap effort must have a vested interest in the project and ideally has P&L responsibility for the group to be impacted. As with any project an organization undertakes that involves significant change to business processes, organizational structures, or roles and responsibilities, the lack of key, influential sponsorship reduces the effectiveness of the project, since there is no driving force for implementation.`

Step 2: Gather Information

It is critical to gain insights of various key stakeholders and decision-makers within the organization.

Examples of questions that help gauge the health of the client's CRM include:
How would you define CRM? What types of customer information is captured/tracked (acquisition/retention costs, churn, cost to serve, etc.)? What information would you like to know about your customers that you currently do not? Done by interviewing Executives, Managers, Marketers, Front line staff

Step 3: Assess Current state and Define Future state Gaps

Through these meetings, we gain an understanding of the client's current CRM capabilities and significant opportunities to improve their customer relationships, and map out findings.

Also important to understand company's future direction (usually between 6 months and 2 years). Then comparison of current state of CRM against best practices within the companies respective industry.

Step 4: Identify Value Opportunities

Value opportunities represent the potential benefits delivered by being more customer-centric. Identify and categorize value opportunities along the lines of people, process and technology.

Example of a "process" value opportunity is improving data capture for all customer contacts across sales functions and touch points (e.g. phone, e-mail, etc.).
"People" value opportunities may involve additional training on service procedures for capturing customer data. "Technology" value opportunities might include developing a data warehouse.

Step 5: Link Value Opportunities to strategic CRM Capabilities

After determination of where the value opportunities lie. Identification of which strategic CRM capabilities are needed. Below is a sample of link between a specific value opportunity and its corresponding strategic CRM capabilities:

Value Opportunity : Improve customer understanding

Strategic CRM Capability: Possess good knowledge of the customer Leverage customer information from the service process Understand customer profitability and cost-toserve.

Step 6: Define CRM Projects and Requirements

Once value opportunities are prioritized, specific CRM projects need to be developed. Defining and executing CRM projects will ensure the company masters the relevant strategic CRM capabilities.

An effective way to define relevant projects is through brainstorming sessions with the client. Samples of the outcome of a session might include:
Understand customer profitability Enhance call center operations by implementing sophisticated touch-point technologies Establish a data warehouse Improve sales force training

Step 7: Develop Business Case

Once the projects and requirements are defined, it is necessary to develop the business case to support or refute the criticality of a specific project. The business case seeks to justify the money investment needed and the ROI. Each business case should include:

Details and costs of required resources (people, technology, training, outsourced resources, etc.), Projected duration of time of each project. Potential benefits
For example, a typical CRM investment ranges from $10 to $25 million (or more) over a three to five year period. The amount is wholly dependent upon how many initiatives have been identified and how extensive those initiatives are. Examples: Marketing Insight initiative Sales force automation initiatives

Step 8: Develop a Roll-out strategy

Developing a roll-out strategy enables organizations to focus their resources, money and time on the most important projects that help them become customer driven. Prioritization and phasing of projects is conducted with the executive team, a process in which they evaluate the results of the business cases, and consider for each project's financial results, duration, level of effort required, and technical impact. Critical Success Factors

A Final Thought...
Achieving success in developing intimate and enduring relationships with customers begins with a holistic consideration of an organization's functions and abilities that affect its consumer's objectives.
Developing a CRM Roadmap therefore, is a continuous process and not just a one-time exercise, because customers' needs and preferences change constantly. The correct strategy can help your organization form deeper relationships with its consumers, and also obtain a competitive advantage in the marketplace.

Amod

Emerging Trends in CRM

1. 2. 3. 4. Near-field Communication Location-based Services Augmented Reality Social Media on Mobile & Social Media as Customer Service Channel 5. Next Generation Mobile Apps

Riddhi

4Ps of CRM Roadblocks

Process Perception Privacy Politics

Process
Companies are slow/unwilling to modify business process to support both customer relationship comfort zone of staff OR customer old way of doing things,tentative responsibilities etc.--Sleepary Scope.

Perception
CRM must be viewed as job enabler not as latest in the series of doctrine to be implemented corporate policies. People are made to believe that they should be able to accomplice the test in less time and purpose new task as well.

Privacy
Understand the quid procque are more lokely to share their personal informationwith the company if they

Politics
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