Project Report on CRM Strategies
Project Report on CRM Strategies
Customer is the king, but that doesnt mean you are not. The new rule says body is a king. It is a networking world the society of persons. Customer Relationship Management (CRM) is the latest tools from the information technology repertoire which enables promotes and develops business towards better profitability. A brief introduction to CRM from the managerial perspective may be in order and help us to appreciate its utility for the business organizations. The purpose of business is to create customer. The importance of the customer in a making breaking a business has led to greater introspection, conceptual clarity and evolution of customer relationship management, both as an art and science, and development of appropriate tools and software for enhancing business and prolonging the product and business life cycle. This evolution has been a consumer to a many time (repetitive), long term relationship management and importance of the life time value of the customer. CRM helps to seamlessly integrate the product and service to customer needs in a better, faster and cheaper manner. CRM isnt a tool for electronic data. It has to use as a business strategy to select and manage the most. Valuable customer relationships that give the best results. CRM in thus not a technology but a strategy based on technology. Customer relationships involve responsiveness, retention, refinement reliability and empathy. CRM says customers are business assets. Customer relationship is developing and maintaining relationship between customer and the company. Marketing activity should concentrate to build and enhance such relationship. CRM is the process of acquiring, relating and partnering with selective customers to create superior value for the company and the end customer. Customer relationship Management is defined to be a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer superior value for the company and the customer.: (Actual parvatiyar and Jagadish N Dheth, 2001).The
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Definition implies that creating superior value for the company and the customer starts from the point of acquiring and retaining the customer. THE CRM The customer relation manager must have and do some work before he takes decision for the development of organization. Put himself in his customers shoes. A customer is the boas. Customer is the profit every thing else is over head. Customer is business, business is people, and people are customers. The purpose of your business is to create customers Communicate continuously with you customers Become a customer oriented policies and procedures Customer must be given the bet possible services Listen, listen, and listen to your customers Solve the small problems of your best teachers Try to help the customer in the most possible manner Learn the art of saying NO to customers in a pleasing way Show concern for customers and follow their interviews
All the above qualities should be imbibed in the organizational culture and followed by one and all in the organization.
NEED FOR THE STUDY Customer relationship management currently, a much talked about issue is not a fad, but is very vital for companies in the present highly competitive world. And they are Companies have to increasingly pursue a customer centric
competitive strategy rather than a product centric one. E- Customers demand constant access, immediate response, and a
personalized touch. Focus is shifting form supply chain to demand chain effectiveness. Better understanding and intelligent management of customer
OBJECTIVIES Enable the company to quickly identify, contract, attract and acquire new customers. Obtain a better understanding of the customers their wants and needs Define the appropriate product and service offering Define the appropriate match it to the customers unique needs Manage and optimize a company sales cycle. Identify cross-selling and up-selling opportunities. Increase retention of existing consumers through improved after sales, service and support.
SCOPE OF THE STUDY: This study is limited only to the extent of covering the various customer relationship activities conducted in amaravathi textile and the data gathered from the people in and around martur town. Manage and optimize a company sales cycle. Identify cross-selling and up-selling opportunities. Obtain a better understanding of the customers their wants and needs. Define the appropriate product and service offering
RESEARCH METHODOLOGY The total information required for the study has been collected by using the methodology of categorizing it in two ways, primary data and secondary data. Data collection was made in systematic manner, as follows.
PRIMARY DATA In the due course of the research study the primary data was collected through a structured questionnaire. The questionnaire is the one in which all questions and answers are specified. Here there will be less scope for comments made in the own word of the respondents. SECONDARY DATA The secondary data is collected from various sources available with the organization like Organizational websites, Newspapers and magazines, Organizational literature and Library books. The data is very useful because the companys back ground and its objectives can be known from these courses itself.
LIMITATIONS OF THE STUDY The study was completed in a span of 8 weeks. Based on the objective of the study, great care was taken in the collection of data throughout the study.
The study was limited to the customers relationship management activities held in Amaravathi Textile Company.
The study is being conducted only in the Amaravathi Textile Company and Guntur city.
In-depth analysis was not made due to limited availability of time. The selected sample may or may not represent the entire workforce. The responses obtained as a result of survey may not true Wide area of customers
The time period of the project is just 45 days which is not really sufficient for understanding the real fact behind the study.
INDUSTRY PROFILE
India Textile Industry is one of the leading textile industries in the world. Though was predominantly unorganized industry even a few years back, but the scenario started changing after the economic liberalization of Indian economy in 1991. The opening up of economy gave the much-needed thrust to the Indian textile industry, which has now successfully become one of the largest in the world. India textile industry largely depends upon the textile manufacturing and export. It also plays a major role in the economy of the country. India earns about 27% of its total foreign exchange through textile exports. Further, the textile industry of India also contributes nearly 14% of the total industrial production of the country. It also contributes around 3% to the GDP of the country. India textile industry is also the largest in the country in terms of employment generation. It not only generates jobs in its own industry, but also opens up scopes for the other ancillary sectors. India textile industry currently generates employment to more than 35 million people. It is also estimated that, the industry will generate 12 million new jobs by the year 2010. Various Categories Indian textile industry can be divided into several segments, some of which can be listed as below:
Cotton, Silk & Woolen Textiles Readymade Garments Hand-crafted Textiles & Jute and Coir
The Industry India textile industry is one of the leading in the world. Currently it is estimated to be around US$ 52 billion and is also projected to be around US$ 115 billion by the year 2012. The current domestic market of textile in India is expected to be increased to US$ 60 billion by 2012 from the current US$ 34.6 billion. The textile export of the country was around US$ 19.14 billion in 2006-07, which saw a stiff
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rise to reach US$ 22.13 in 2007-08. The share of exports is also expected to increase from 4% to 7% within 2012. Following are area, production and productivity of cotton in India during the last six decades: Area hectares 56.48 76.78 76.05 78.24 74.39 85.76 87.30 76.67 76.30 87.86 86.77 91.44 94.39 93.73 in lakh Production in lakh bales of 170 Yield kgs 30.62 56.41 47.63 78.60 117.00 140.00 158.00 136.00 179.00 243.00 244.00 280.00 315.00 290.00 hectare 92 124 106 170 267 278 308 302 399 470 478 521 567 526 kgs per
Year 1950-51 1960-61 1970-71 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Though during the year 2008-09, the industry had to face adverse agro-climatic conditions, it succeeded in producing 290 lakh bales of cotton comparing to 315 lakh bales last year, yet managed to retain its position as worlds second highest cotton producer.
STRENGTHS Vast textile production capacity Large pool of skilled and cheap work force Entrepreneurial skills Efficient multi-fiber raw material manufacturing capacity Large domestic market Enormous export potential Very low import content Flexible textile manufacturing systems WEAKNESS Increased global competition in the post 2005 trade regime under WTO Imports of cheap textiles from other Asian neighbors Use of outdated manufacturing technology Poor supply chain management Huge unorganized and decentralized sector High production cost with respect to other Asian competitors
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Cotton Exports from India Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Quantity (in lakh bales of 170 kgs) 16.82 3.50 1.01 0.65 0.60 0.50 0.83 12.11 9.14 47.00 58.00 85.00 89.00 72.00 Value (in Rs./Crores) 1655.00 313.62 86.72 52.15 51.43 44.40 66.31 1089.15 657.34 3951.35 5267.08 8365.98 10520.52 NA
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Cotton Imports from India Year 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 Quantity (in lakh bales of 170 kgs.) Value (Rs./Croress) 0.30 56.42 4.13 497.93 7.87 772.64 22.01 1967.92 22.13 2029.18 25.26 2150.01 17.67 1789.92 7.21 880.10 12.17 1338.04 5.00 695.77 5.53 752.29 6.50 986.33 7.00 1085.32 5.00 NA
Current Facts on India Textile Industry India retained its position as worlds second highest cotton producer. Substantial increase of Minimum Support Prices (MSPs). Cotton exports couldnt pick up owing to disparity in domestic and international cotton prices. Imports of cotton were limited to shortage in supply of Extra Long staple cottons.
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The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the second largest employment generator after agriculture. Textile Industry is providing one of the most basic needs of people and the holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a self-reliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of Processing; it is a major contribution to the country's economy. Its vast potential for creation of employment opportunities in the agricultural, industrial, organized and decentralized sectors & rural and urban areas, particularly for women and the disadvantaged is noteworthy. Although the development of textile sector was earlier taking place in terms of general policies, in recognition of the importance of this sector.
Introduction
The textile industry is undergoing a major reorientation towards nonclothing applications of textiles, known as technical textiles, which are growing roughly at twice rate of textiles for clothing applications and now account for more than half of total textile production. The processes involved in producing technical textiles require expensive equipments and skilled workers and are, for the moment, concentrated in developed countries. Technical textiles have many applications including bed sheets; filtration and abrasive materials; furniture and healthcare upholstery; thermal protection and blood-absorbing materials; seatbelts; adhesive tape, and multiple other specialized products and applications. The Indian Textile industry has been undergoing a rapid transformation and is in the process of integrating with the world textile trade and industry. This change is being driven by the progressive dismantling of the MFA and the imperative of the recently signed General Agreement Trade & Tariff. In this bold, new scenario, India has to move beyond its role of being a mere quota satisfying country.
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Textile History in India Indian textile enjoys a rich heritage and the origin of textiles in India traces back to the Indus valley Civilization where people used homespun cotton for weaving their clothes. Rigveda, the earliest of the Veda contains the literary information about textiles and it refers to weaving. Ramayana and Mahabharata, the eminent Indian epics depict the existence of wide variety of fabrics in ancient India. These epics refer both to rich and stylized garment worn by the aristocrats and ordinary simple clothes worn by the common people. The contemporary Indian textile not only reflects the splendid past but also cater to the requirements of the modern times. Changes in Emphasis There has been a distinct and positive shift from quality to quality. Earlier Indian textiles were considered cheap and of low quality. The industry was at that time driven by large volumes, which were of paramount importance. The best quality was produced in Europe and Japan. Since then, India has come a long way, emerging as a manufacturer of high quality yarns and fabrics. The leading mills such as Raymonds, Read & Taylor, Aravind mills etc. Improved their quality standards prevailing into the world. Implementation of New Equipment The textile industry has also become a high technology. The textile industry has also become a high technology industry. No body earlier could have concerned that the industry would require top of the line technical skills. Present day textile machinery is fully computerized and needs totally new skills to effectively manage it. New Marketing Trend On the marketing side, there has been a total change , with almost all players in the industry extending their reach to international markets. The impact of these trends on the textile industry is profound. Increasingly any company cannot
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sustain itself only on local market demand or only the exports. One has to look at the global markets in totality. Competition This compulsion to access and compete in international markets has been perhaps one of the saving grace for the industry. Clearly the ability and necessity of meeting global competition head on, has forced the industry to upgrade its technology, product quality, cost structure and marketing skills. Truly, we have learnt more from the competitions than from ourselves. Decentralized sectors Another visible change relates to the scale of operations. Earlier textile mills were generally reasonably large size becomes a non-constraining factor with the advent of power loom sector, which enabled small weavers to make and market their own fabrics in direct competition with large mills. Technocrats Another shift in the industry is regarding entrepreneurship. Technocrats have been able to become possible to have small size spinning, weaving and processing mills. All this was earlier the domain, solely of large businesses. Cost Consciousness The greater competitive pressure have highlighted the need to control cost of every type of whether it be energy, water or labor all of which were earlier taken for granted now every mill is highly cost conscious and industrial engineers keep detailed trace of every cost parameter including energy consumption including energy consumption, waste control, machine efficiency and productivity. No doubt, this will have to be an ongoing exercise. Since cost have to be ruthlessly and persistently brought down.
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Labor intensive industry The textile industry being labor intensive, is slowly migrating from high cost countries, such as the United states, Europe, Japan, Australia, Taiwan and Korea. All these countries were at one time leading textile manufacturers. But with the high labor cost, capacities in these countries are being diverted elsewhere. This is happening even as the developed economies make large investments in better machinery and automatism. Labor cost comparison (Europe & India) Labor Skilled workers Operating personnel Unskilled workers Operating hours per annum Europe Rs/Hour 750 625 500 6750 India Rs/Hour 20.00 12.50 6.25 48.75
Indian Textile Industry has some inherent strength Tradition in Textiles and long operating experience Large and growing domestic market Strong raw material base Production across entire textile value chain Stable, low-risk economy, safe for business growth Easy availability of abundant raw materials like cotton, wool, silk, jute Widely prevalent social customs Variety of distinct local culture Constructive geographic and climatic conditions
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Table showing the Indias Competitiveness with Other Country There is no denying India is competitive enough and will become even more competitive once its infrastructure issues are sorted out. China has probably already reached its peak and further improvements may not be as dramatic, henceforth
countries
vertically integrated India, Pakistan Mexico Turkey ASEAN AGOA Cambodia, Indonesia) countries, Bangladesh cheap labor integrated,Lacks economies of scale and infrastructure support of competitiveness No other cost or locational advantage and Indias degree of
(NAFTA), Proximity to market,Lack China and Indias degree duty and quota free (Vietnam, Cheap labor
Hong Kong, Korea, Trading hubs proximityNo cost advantage, protected Taiwan USA and EU to China Non-quota currently by quotas barriersUS$ 400 bn trade loss likely
likely to prove irritantov to imports Indias world market share in Textile Industry
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The world market share In spite of the Chinese dominance, India has a fair opportunity to grab a substantial stake in the projected garment market share. According to PHD Chamber of Commerce and Industry (PHDCCI), post-MFA, India's market share in the US is expected to go up to 15 per cent from the present 4 per cent. In the EU, the market share increase is expected to be 50 per cent from the current 6 per cent to 9 per cent. The world population is increasing at the rate of 1.8% per annum between 1980 to 2000 while it was 1.4% between 1960 to 1980. Per capita fibres consumption showed an increase of 0.9% between 1980 to 2000 while it was 1.8% between 1960 to 1980. World fiber needs will increase by 2.4% till 2001. The figure for 1960 to 1980 was 3.6%.
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Particulars
UNIT
1960
1980
2000
World population
(BIU)
3.0
4.4
6.2
+1.4
Per capita fibre (KG) usage Fibre billion Population Growth rate in (AVG) need/ (MT)
5.0
6.8
7.7
+1.8
+0.9
15.0
30.0
48.0
+15.0
+18.0
Consumption per year annual increase The above figure an attempt is made to analyse the trends in the world fibre type usage between 1960 to 2000. Natural fibre usage has dropped from 77% in 1960 to 44% in 2000 (projected) while man made non cellulose fibres show an increase from 5% in 1960 to 47% in 2000 (projected). This is a phenomenal increase and is due to mainly advent of polyester its multiple uses and its popularity. As further analysis the man made fibre production shows that in the man made fibre are polyester has increased its share from 42% in 1986 to 55% in 2000 (projected). Nylon, Rayon and Acrylic show a decreasing trend in the percentage. But is absolute terms they registered an increase.
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Indian Textiles targets to achieve by end of the 11th Five year Plan (20072012)
Indias market share in world textiles trade to grow from 3% to 8 % 12 Million additional jobs Investment Rs.150,600 Crore
Textiles Export Target (In Billions) Year ( April March) Target 2009-10 2008-09 2007-08 2006-07 2005-06 2004-05 Textile scenario Developing countries with both textile and clothing capacity may be able to prosper in the new competitive environment after the textile quota regime of quantitative import restrictions under the Multi-Fibre Arrangement (MFA) came to an end on 1st January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing. As a result, the textile industry in developed countries will face intensified competition in both their export and domestic markets. However, the migration of textile capacity will be influenced by objective competitive factors and will be hampered by the presence of distorting domestic measures and weak domestic infrastructure in several developing and least developed countries. India must take 19.73 15.565 15.16 16.31 15.05 13.72 Achievement 19.62* 17.80 13.04 13.16 12.41 10.76
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adequate measures for capturing its market by promote the development in this sector [Link] Broad External changes Industry specific changes 1. Demographic Trends Markets & Marketing 2. Changing taste & preferences .[Link] 3. 4. Fashion Understanding hidden & fresh needs Engineering Invention of new fibre materialsHuman resources motivated by market needs
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COMPANY PROFILE
Amravati Textiles is a leading player in the Indian home textile industry. Our company was established in 1970 in the textile belt of Tamil Nadu, India as a trading unit dealing in hand woven. Today, we manufacture a wide range of machine-made home textiles including woven fabrics, embroidered linen, prints, jacquards and terry towels, that are crafted into stunning products and retail across the globe. Amaravathi shares a 15-year collaboration with the American designer, Joanne Collins of Joanne Collins Design Group and Amaravathi collections are known for vibrant motifs, colours & patterns. Each Amaravathi product reflects the organizations absolute commitment to quality. The 890-strong Amaravathi team is led by CEO, Mr. M. Sivakkannan, and Marketing Director, Mr. S. Permanent. The Amravathi Textiles buyer network stretches across the globe and includes organisations from the United States, Canada, Germany, France, the United Kingdom, Italy, Spain, Norway, Sweden, Denmark, Japan, Australia, New Zealand, Argentina, Chile, Mexico, South Africa and Morocco. Manufacturing The vertically integrated Amaravathi Textiles plant extends over 190,000 sq. ft. State-of-the-art facilities for every stage from spinning to finishing include: An 18,000-spindle spinning facility, with a production capacity of 7 tons/day of combed and carded yarns for weaving and knitting applications. A 72- loom weaving division with diverse functional looms, capable of creating a variety of innovative designs and of weaving wide-width fabrics of up to 330 cm. The latest electronic jacquard looms and terry dobbys are a part of the infrastructure. Processing facility with PLC-controlled cheese dyeing machines for yarn dyeing and soft flow dyeing machines for terry fabric dyeing. A high-tech Reverse Osmosis Plant with multi-effect evaporators has been installed to achieve zero-discharge of process effluents.
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JUKI lockstitch sewing machines are employed for stitching. A well-equipped laboratory with testing facilities for Light Fastness (MBTF), Colour Fastness, Shrinkage Tolerance, Fabric GSM & Yarn Count. A comprehensive Finishing section, equipped with steam ironing, vacuum packing and metal detection facilities. Amravathi Values
Promptness in execution Transparency in business Integrity in negotiation Innovation that fuels growth
We Care for the Environment Amravathi is committed to conservation of the environment. Our manufacturing facilities comply with stringent environmental norms and are equipped for effluent treatment. The Amaravathi dyeing plant uses reverse osmosis with a multieffect vaporator to qualify as a zero-discharge unit. Contemporary home textiles Home textiles exporter, Amaravathi Textiles, manufactures a vibrant range of table linen, kitchen linen, bed linen & terry towels. The Amaravathi Collections include exclusive prints & weaves, jacquards, embroideries & terry towels, crafted to perfection at Karur in Indias textile belt. Geneva" Diagonal Weave The Amravathi collection includes... Cushion Covers, Throws, Futons, Floor Pillows, Table Cloths, Placemats, Napkins, Table Runners, Terry Towels, Apron Sets, Tea Towels
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Cannes" Floral Jacquard The Amaravathi collection includes... Cushion Covers, Throws, Futons, Floor Pillows, Table Cloths, Placemats, Napkins, Table Runners, Terry Towels, Apron Sets, Tea Towels Roma" Floral Embroidery The Amaravathi collection includes... Cushion Covers, Throws, Futons, Floor Pillows, Table Cloths, Placemats, Napkins, Table Runners, Terry Towels, Apron Sets, Tea Towels
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THEORITICAL FRAME WORK Marketing is indeed an ancient art. It has been practiced in one from or the other since the days of Adam and Eve. Its emergence as a management discipline, however, is of relatively recent origin and within this relatively short period, it as gained a great deal of importance and stature. Marketing gives customers a choice among products. If these products satisfies customers, this can lead to fuller employment, higher incomes, and higher standard of living. Marketing has been gaining importance in all organizations in recent years especially with the advent of globalizations of economic activities. Meaning of Marketing Marketing is a comprehensive term. Marketing includes all resources and a set of activities necessary to direct and facilitate the flow of goods and services from producer to consumer in the process of distribution. The term Marketing as been defined in various ways by different marketing management experts. These definitions can be grouped into two major categories, namely, classical or old definitions and modern definitions. CLASSICAL DEFINTIONS pyle: Marketing comprises both buying and selling activities Clark and Clark: Marketing consists those efforts which effect transfers in the ownership of goods and services from producer to consumers or users. American marketing association: Marketing is the performance of business activities that direct the flow of goods and services from producers to consumers or users. Importance of Marketing: A high level of marketing activities is a pre-requisite for a high level of economic activity.
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According to Drucker marketing is the distinguishing and the unique functions of business. Importance of marketing to the nation and society Importance of marketing to the firm. Importance of marketing to the individuals. Nature and Scope of Marketing Marketing is indeed an ancient art. It has been practiced in one from or the other since the days of Adam and Eve. Its emergence as a management discipline, however, is of relatively recent origin and within this relatively short period, it as gained a great deal of importance and stature. Marketing gives customers a choice among products. If these products satisfies customers, this can lead to fuller employment, higher incomes, and higher standard of living. Marketing has been gaining importance in all organizations in recent years especially with the advent of globalizations of economic activities. Functions of marketing Specialised activities are operations which or performance in the marketing of goods and services are called marketing functions. Marketing function is an act or service by which original product and the final consumers are linked together. The marketing functions are eyes and ears of the business. Marketing functions A) Functions of exchange: Buying Selling Pricing Advertising Sales promotion
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B) Functions of physical supply: Transportation Storage C) Facilitating functions: Financing Risk-raking Marketing information Marketing research Standardization and grading Packaging Branding Marketing- Mix The concept of marketing- mix is an important development in the field of marketing. The determination of marketing- mix is the basis of a sound marketing programme. During the marketing programme process, the marketing strategies to be adopted by a firm are spell out. Four ps: The credit of introducing this concept of Marketing- mix goes to professor [Link] of Harward Business School of America. According to Keely and Lazor, marketing- mix is composed of a large battery of devices which might be employed to induce consumer to buy a particular product.
Product: Product is the thing processing utility. It is the first element. The product mix is the composite of products offered for sale by the firm, over a period of time. It has four components: (1) product line, (2) service after-sale, (3) brand, (4) package.
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Price: price is the value of a product expressed in term of money. There are good many variables effecting the price of a product. they are major of the product, nature of the market, cost of manufacture, cost of marketing, sales polices and methods, channels of distribution and competitors prices.
Place: place of distribution mix stands for the matching arrangement for the smooth flow of goods from the producers to the consumers. These concerned with creation of place time and position utilities. In other words it signifies two things, namely, physical distribution and the channel of distribution.
Promotion: promotion mix is the communication mix which deals with the personal and impersonal persuasive communication about these product or service of the manufacturer. Personal communication relates to face - to - face meeting between the sales force of the firm and the clientele. Impersonal communications include advertising, sales promotion and public relations. The promotion variables worth considering are personal selling, advertising, sales promotion, exhibitions and fairs and public relations.
CUSTOMER RELATIONSHIP MANAGEMENT Customer is the king, but that doesnt mean you are not. The new rule says body is a king. It is a networking world the society of persons. Customer Relationship Management (CRM) is the latest tools from the information technology repertoire which enables promotes and develops business towards better profitability. A brief introduction to CRM from the managerial perspective may be in order and help us to appreciate its utility for the business organizations. The purpose of business is to create customer. The importance of the customer in a making breaking a business has led to greater introspection,
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conceptual clarity and evolution of customer relationship management, both as an art and science, and development of appropriate tools and software for enhancing business and prolonging the product and business life cycle. This evolution has been a consumer to a many time (repetitive), long term relationship management and importance of the life time value of the customer. CRM helps to seamlessly integrate the product and service to customer needs in a better, faster and cheaper manner. CRM isnt a tool for electronic data. It has to use as a business strategy to select and manage the most. Valuable customer relationships that give the best results. CRM in thus not a technology but a strategy based on technology. Customer relationships involve responsiveness, retention, refinement reliability and empathy. CRM says customers are business assets. Customer relationship is developing and maintaining relationship between customer and the company. Marketing activity should concentrate to build and enhance such relationship. CRM is the process of acquiring, relating and partnering with selective customers to create superior value for the company and the end customer. Customer relationship Management is defined to be a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value for the company and the customer superior value for the company and the customer.: (Atual parvatiyar nd Jagadish N Dheth, 2001).The Definition implies that creating superior value for the company and the customer starts from the point of acquiring and retaining the customer.
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THE CRM The customer relation manager must have and do some work before he takes decision for the development of organization. Put himself in his customers shoes. A customer is the boss. Customer is the profit every thing else is over head. Customer is business, business is people, and people are customers. The purpose of your business is to create customers Communicate continuously with you customers Become a customer oriented policies and procedures Customer must be given the bet possible services Listen, listen, and listen to your customers Solve the small problems of your best teachers Try to help the customer in the most possible manner Learn the art of saying NO to customers in a pleasing way Show concern for customers and follow their interviews All the above qualities should be imbibed in the organizational culture and followed by one and all in the organization. If every one is aware of the above and practices them, there is no wonder why the organization will no become the most favored and continue to be the focal point for success in the future also. The concept of CRM is now gaining wide acceptance and is recognized ass a powerful tool for business development and to have and edge over the competitors and account of the universal traits of human behavior People need to have social and interactive relationships. So fast moving organizations believe in their customers. Understand their needs in advance before the customers give the feedback about their particular requirements and design their products matching to such needs.
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C R M DEFINED According to Cap Gemini Ernst & young. A leading management consulting firm, CRM is defined as a companys ability to continuously maximize the value of its customer franchise by effectively allocating scare resources to specific customers segments in those areas viewed as having a significant impact on the profitimpacting behaviors of customers. CRM is a discipline as well as asset of discrete software and technologies which focuses on automating and improving the business process associated with managing customer relationships in the areas of sales, marketing, customer services and support. CRM deals with long term mutually beneficial relationship among consumers, companies and other stakeholders. CRM is a well defined series of functions, skills processes and technologies which together allow companies to more profitable manage customer as tangible assets. CRM is a new technology enabled way to do business that reviews a simple, old fashioned notion: keep pleasing customers and key will help coming back. What is CRM? To day the availability of economic, demographic, life style and psychographic data, decision support systems, the internet make customer relationship management a reality than jut a vision CRM is more than just a set of technologies. It is a process, intended to be repeated to insure ongoing. Continually improving and consistent results. CRM comprises the acquisition and deployment of knowledge about customers to enable a company to sell more of their product / service efficiency. A business strategy is designed to optimize profitability, revenue and customer satisfaction.
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To realign CRM organization must foster behavior and implement process and technologies that support co-coordinated customer interaction throughout all channels. CUSTOMER RELATION SHIP MANAGEMENT
A Management Process of acquiring customers by understanding their Requirement, retaining customers by Fulfilling their requirements more then expectation and attracting New customer specific strategic marketing approaches.
The process invites total commitment on the part of the entire organization in evolving and implementing relationship strategies that would be rewarding to all concerned.
SIGNIFICANCE OF CRM Reduction in customer requirement Cost Generation of more and more loyal customers Expansion of customer Base Reduction in advertisement and other sales promotion Expenses Benefiting customer Selectivity approach Increase in the number of profitable customers Easy introduction of New products Easy business Expansion possibilities Why organization loose their Customers Price Related Reasons Product Related Reasons Services Related Reasons Presales During sales After sales Benefit Related Reasons
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Competitor Related Reasons Personal Reasons Moved away from the market area Role changes in life cycle Anger, disgust distress developed with in the process of the product delivery Sentimental reasons Influence of the members What the customer needs: 1. Product 2. Do not offer me things. 3. Do not offer me Clothes, offer me comfort and the pleasure of walking feet. 4. Do not offer me Book; offer me the benefit of knowledge. 5. Do not offer me Things; offer me ideas, emotion, feeling and benefits. 6. Please do not offer meetings. Concentration on the paying ability of customer Knowledge on Purchase Behavior Pattern Purchase Rejection Postponement Search for Substitutes Differentiation in prices and Quality Standards Focus on Reducing Dissatisfaction Attention of Changing Requirements of Customers Goals Demand
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Limitation Values and Behavior Augmenting Intangible Benefits Effective Listening Counseling Rendered POP atmosphere Expertise Services Offered...etc. Customers in terms of: Who buys How they buy Where they buy How frequently they buy When they buy What is the profile What life cycle they are in What is their perception What is their expectation What are the frequently asked questions? What is their value for money? What is their value for time and so on? A customer is the most important person in any business A customer is not dependent on us we depend on him. A customer is not an interruption of our work; they are the purpose of it. A customer does a favour when he calls but we are not doing him a favour by serving him. In fact, he is doing us a favour by extending an opportunity to serve him.
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A customer is a part of our organization, not an outsider: A customer is not a cold statistics. They are flesh and blood human being with feelings and emotions like our own. A customer is a person who brings us his wants. It is our job to fulfill those wants. A customer is deserving of the most courteous and attentive treatment we can give A customer is the life blood of this and every other business. Why CRM The purpose of CRM is to improve marketing productivity and enhance mutual values by increasing the marketing efficiency, CRM also helps in. Reducing the burden of excessive customer costs. Enhancing marketing effectiveness by carefully selecting customer for various programs. Streamlining order processing and inventory management. Personalizing the market offerings, based on the preference of the customer groups. Building customer loyalty and commitment THE CRM IMPORTANCE Lower cot of marketing Decreased cost of customers Common growth for marketers and customers Customized marketing efforts Improve customer satisfaction Improved employee and customer retention. Strong customer loyalty.
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THE TERM LIFE STYLE The CRM is life cycle begins with the integration of front office system and centralization of customer related data. The benefits of this phase include improved front office efficiency and productivity. The output is a centralized source of all relevant customer data, in this phase; the customer data has to be collected in detail and maintained property. Efficiency / productivity Understanding customer data (decisions) Refined process (impact) THE CRM DEVELOPMENT CYCLE A typical CRM lifecycle undergoes through the following phases. Understanding and differentiate Develop & customize Interact & deliver Acquire & retain. Prioritizing the changes Creating an action plan. Measuring success. CRM CAN BE DEFINED IN FOUR STEPS Customer identification through referrals Customer relationship development Customer satisfaction Customer retention and developing loyalty.
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CRM IMPLEMENTATION The implementation of CRM is a cycle three phases. The phases are i. ii. iii. iv. a. b. c. Assessment Planning Execution Concept of CRM A business philosophy A business strategy A database application
THE BUSINESS PHILOSOPHY The concept of CRM is business philosophy values customer as its fundamental goal and its is the customer who defines a business. It sounds easy but there are many unresolved theoretical issues. a. CRM as a business strategy CRM is a business strategy comprising of Function Processes Procedures Technology Skills which together allow first to profitability manage customers as tangible assets and to offer personalized and will differentiate experiences and to build long run relationship with the customers b. CRM as a database application The concept of CRM is a database application which is likely to be more a reality in the light of new and emerging technologies. A centralized customer data repository is critical foundation to any CRM initiative.
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c. A broad framework for CRM can be sub-divided in to four sub process Customer relationship formation process Relationship management and governance process Relational performance evaluation process d. Why relationship Transitionally, organizations have focused on the first of the Rs of marketing recruit, retain and regain. But today organizations save realized clearly. That it costs exorbitantly high to recruit new customers. That is also costs exorbitantly high to lose a customer . BENEFITS OF CRM The benefits of customer relationship management are considered are abounded. it allows organizations not only to retain customers, but enables more effective marketing, creates intelligent opportunity for cross selling and open up the possibility of rapid introduction of new brands and products. The benefits like cost savings, revenue enhancement, and strategic impact. Increased sale revenues Increased with rate improve since companies can with draw from unlikely or bad deals earlier on in the sales process Increased margins and Improved customer satisfaction ratings Decreased general sales and marketing administration costs Identifying and targeting the most profitable customers and having a deeper knowledge of customers. Getting more marketing or cross selling opportunities. Ability to mange marketing campaigns with clear objectives Increased market share due to customer relationships Decreased marketing and promotion expenses Improved channel efficiency
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Profitable cross selling and up selling opportunities to existing customer. Reduce service expenses with online self service Increased repeat business revenues from customized, personalized customer online experience maximize lifetime profit per customer Increased return on service / support investments Reduced service parts inventory Reduced physical storage space of service parts Increased customers satisfaction and responsiveness Faster response to customer enquires. Increased efficiency through automation. Receiving customer feedback that leads to new and improved products or services. TECHNOLOGY-AN-ENABLER FOR CRM Development in information technology, data warehousing and data mining have made it possible for firms to maintain a one relationship with their customers. CRM is a customer database Top management commitment, personnel motivation, user training and prototyping the system are the other kef factors for successful implementation of CRM concept. a. IMPLEMENTATION: Customer relationship management is accomplishable by following certain guidelines they are: 1. Evaluation and plan 2. Tackling any one competence along will lead to a dysfunctional business. 3. Successful mass customization is crucial to reducing customer acquisition costs and improving the cross- selling capability 4. Channels are delivery mechanisms.
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CRM requires a strategic approach, which encompasses customer information and knowledge generation, and the ability to learn from outstanding practices. b. Customer focus an important ingredient: Being customer focused also means maintaining constant communication and dialogue with the customers. Enlightened organization practice closed loop communication with their customers. Communication must flow both ways, frequently and continuously and be structured in a way that enables the organizations to monitor their performance from the customer perspective. CHALLENGES OF CRM There are critical questions associated with CRM and the 4 Ds Discovery customer Who are ore customers? What does our customer expect from the consumer? What is their value potential? Dialogue relationship What kind of relationship we want? How do we foster the exchange process? What is their value potential? Dialogue / relationship How kind of relationship we want? How do we foster the exchange process? How do we share the controls? Discipline / management Who are we (i.e. the company?) How to organize so that we can move closer to the value of our customers? How to measure and manage performance? How so we increase the capacity to change?
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THE GOAL OF CRM The idea of CRM is that it helps business use technology and human resources to gain insight into the behaviors of customers and the value of those customers. If it so workers as hopped, a business can: Provide better customer service Cross sell products more effectively Help sales staff close deals processes Discover new customers Increase customer revenues Responses to campaigns Shipping and fulfillment dates Sales and purchase data Account information Web registration data Service and support records Demographic data Web sales data Discover New customers Response to complaints Make call centers more efficient Improve customer satisfaction and retain customer base. Account Information THE KEY TO SUCCESSFUL CRM IMPLEMENTATION Break your CRM project down into manageable pieces by setting up pilot programs and short-term milestones. Starting with a pilot project that incorporates all the necessary departments and groups that gets projects rolling quickly but is small enough and flexible enough to allow tinkering along the way.
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Make sure your CRM plans include a scaleable architecture framework Dont underestimate how much data you might collect (there will be lots) and make and then store EVERY piece of the data you can, but there is often no reason to store data. Storing useless data wastes time and money. Recognize the individuality of customers and respond appropriately. A CRM system should for example, have built- in-pricing flexibility. a. What causes CRM projects to fail? From the beginning, lack of communication between everyone in the customer relationship chain can lead to an incomplete picture of the customer poor communication can lead to technology being implemented without proper support or buy-in from users. STRATEGIC CRM CRM is about creating a competitive advantage by being the best at understanding communicating, delivering existing customer relationships in addition to creating and keeping new customers The concept of product life cycle is giving way to the customers life cycle. Focusing on developing products that anticipate the future needs of existing customers and creating services that extend existing customer relationships beyond the merely transactional. The customer life cycle will focus on lengthening the life span of the customer with the organization rather than the endurance of a particular product. Customers have changing needs as their lifestyles alter the development and provision of products of services that continuously seek to satisfy those needs is good CRM. Mission statements will being taking the business vision and apply it to the customer base by asking the following questions
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What products and services are we offering now and in the future? In what markets? What customer groups will these products and service appeal to? Which of these are of most value to the organization? In terms of spend? In terms of reliability? In terms of profitability? In terms of growth potential? What additional needs do the most valuable customer groups have? Additional products additional services? What different ways can we be doing business to deliver to our customers better? Relationship strategy framework The relationship frame work presented by means of flow chart which in turn depicts the various determinations that finally influence the service quality and hence relationships. The McKinseys 7s framework has been adopted to establish development of relationship strategies wherein quality is the core issue. a. Strategy b. Shared Values c. Style d. Structure e. Skills and staffing f. Systems
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CRM Strategies The strategic outline for an effective implementation of CRM would be as follows: a. Improving customer knowledge b. Targeted customer contact c. Meaningful marketing d. Strengthening customer base e. Impact analysis THE 10 PRINCIPLES OF CUSTOMER RELATIONSHIP
MANAGEMENT 1. Value segmentation Based on customer needs, preferences, behaviors and economic potential, which provides the basis for resource allocation decision in marketing, sales and service 2. Collaboration The customer is involved in the specification, design and or delivery of a desire result. 3. Institutional memory When a customer interacts which your company, everyone in the enterprise is award of prior interactions, outstanding issues and pending opportunities. 4. Touch point alignment Customers are able to do business with you through multiple channels, which are aligned to customer need and value. 5. Real time information management Employees have real time access to the right information in order to made customer based decisions and resolve issues immediately 6. Closed loop processes Integrated front and back office systems ensure that information and word flow carry though the entire enterprises to their logical conclusion, closing the customer loop and enabling continuous capture.
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7. Customer scorecard Employee performance requirements and measures and designed to drive specific customer behavior 8. Listening posts Forums to facilitate information sharing and learning about your customers that help you to business with them learn from each other and provide valuable customers input to you business. 9. One and done Solving customer needs first time 10. Total experience management Mapping all of the touch points between you and your customers and attempting to deliver a consistent quality experience as perceived by the customer. CREATING NEW CUSTOMERS Na growing, acquisition of new customers is the order of the day./ if the company cannot keep apace with the market growth rate can cannot acquire new customers in tandem with the growth rate, it will fall behind the competition if a company wants to acquire more new customers, it should acquire more new customers it should offer major than competition. Prof. Philip Kotler defined marketing as customer satisfaction. Later on redefined marketing as customer delight and today he means marketing as customer astonishment. His understanding about consumers is very elementary, customers are not looking for satisfaction only and they look for differentiated satisfaction which may be superior to competition. As someone said long back that selling means moving a man from a happy situation to a desired situation and the man may not know that he is taking out his out his wallet and putting some many for that desired destination. Selling is to offer a journey to a customer, who always wants to move to newer destinations to get happier moments and newer experiences. Long back, Indian consumers could only buy either ambassador or fiat car once Maruti-800 came
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consumers moved to a happier deviation, and then moved on to Zen to Esteem, to Baleno for newer driving experience and for newer driving experience and for more happiness and pride. Today, we have a plethora of brands from unlimited MNCs and again this has helped consumers to move inform one experience to newer ones, from one happy situation to a newer happy situation and so on. All hotels, airline companies adopt two pronged strategy they satisfy and them they apply switching barriers. For example, airline companies have point sytem [Link] banks have point system etc., some banks have locking period for home loan. So that consumers cannot swap with other bank period for home loan, so that consumers cannot swap with other banks Customer relationship management primarily marketing tool used by companies to acquire new customers, satisfy them and finally retain them. Through relationship management, companies develop report with the customers and they stay with them for a longer period. RETENTION MEANS REPEAT PURCHASE Once a consumer is retained either through satisfaction mode or through switching barrier mode, he is gong to purchase again, repeat purchase may leas to loyalty and loyal customers bring maximum profit to the companies, loyalty helps companies develop longer customer life time and there by improve companys sales and profits. To make customer buy again and again, companies must go through a continuum of innovation in terms of products development and communication. Every moment consumer should feel that he is moving for a better product and service
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Diagram 4.1.
AMRAVATHI TEXTILES
In order to give thrust to customer services activities in AMARAVATHI, A central CRM cell was constituted at head quarter, marketing along with CRM cell in each region and branch. The very first initiative taken by CRM cell was to adopt well defined customer policy was widely circulated and displayed in all marketing officers of all senior officers of AMARAVATHI. In order to impalement the customer policy, a number of CRM initiates have been implemented by AMARAVATHI. Some of which are as follows: 1) System of obtaining regular customer feedback introduced. 2) Norms adopted for various customer related activates like issue offer litter / delivery order, loading at stockyard and refund etc. 3) For expediting settlement of customer customers quality complaints paper work in processing of quality complaints and provide an efficiency and expeditious mechanism for settlement of quality complaints
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4) System of e-poll from customer queries on AMARAVATHIS portal within 24 hour has been developed and is likely to be. Hoisted shortly. 5) System of customer queries on AMARAVATHIs portal with in 24 hours has been developed and is likely to be hoisted shortly Ministry Of TEXTILES had conducted a customer opinion survey among the company in India through an external agency IMRB business and industrial research division. Approach Customer relation management should be pervasive in all sections of AMARAVATHI Identify parameters which improve customers satisfaction levels Collect feed back in structure way continuously on above parameters Analyze the feed back and make action plan to improve satisfaction levels where CSI score is low Monitor the action plan for implementation Compare the corresponding factors in next survey to confirm compliance. Customer policy for AMARAVATHI. Customer policy for AMARAVATHI formulated as follows Customer policy AMARAVATHI will endeavor to adopt a customer focus approach at all times with transparency. AMARAVATHI will strive meet more than the customer meets and expectation pertaining to products, quality and value for money and satisfaction AMARAVATHI Greatly values its relationship with customer and would make effects as strengthening these relations for mutual benefits Customer Policy launched on AMARAVATHI portal [Link] [Link]
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Laminated board with customer policy prominently displayed in all regions, branches and stockyards and offices of all senior officers at headquarters. CRM INITIATIVES PLANNED DURING 2008-2009 Introduction customer grievance settlement mechanism planned with immediate effect. Aggressive customer contract programme with detailed calendar for 20062007 under preparation. Implementation of e-poll get customer feedback on ling Extension of customer online quality complaints settlement system to the customer Opening of a call center linked with AMARAVATHI TEXTILES and toll free numbers for addressing customers queries Corporate turn to reinforce identify of AMARAVATHI TEXTILES under process. Replies to customer query given by concerned with in 24 hours on on-line Immediately after response the confirmation received by the customer on-line on his E-mail address
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Graph: 1
10 2% 10 0% 8% 0 6% 0 4% 0 2% 0
s c t lt e rn a ti v e n ta th e ile
0 %
y e -c o
INTERPRETATION
Many of the Marketing managers agreed that body language played an important role for the development of effective relationship towards customers, why because customer is the king.
52
ll
o f
T o ta l
2) The Satisfaction provided to the Customers of AMARAVATHI by Alternatives Quality Good Servicing & relation Reasonable price All of them Total No. of Respondents 25 25 Percentage of respondents 100% 100%
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Graph: 2
10 2% 10 0% 8% 0 6% 0 4% 0 2% 0 0 % Qa u lity Go od S r ic g& ev in r la n e tio R a o a le es nb pic r e A o th m ll f e
INTERPRETATION:
All the Marketing managers opinion that in order to provide satisfaction to customers, Every market manager must serve the customer with his entire mind by soul and with all his body.
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3) The way of maintaining relationship towards a particular customer to whom the manager does not like to speak is. Alternatives Harshly Friendly Pretending to be friendly None of the above Total No. of respondents 22 03 25 Percentage of respondents 88% 12% 100%
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Graph: 3
10 0% 9% 0 8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Hr h as ly Fie d r n ly Pe n in r te d g tob e fr n ly ie d N n o th oe f e a oe bv
INTERPRETATION:
Marketing managers opinion that by having good friendship with customers they improved relationship toward customers, they believe customer is ultimate
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4) The kind of relation the marketing Manager maintain with the customers? Alternatives Parent Manager and customer Friendly Acceding Total 05 20 25 No. of respondents Percentage of respondents 20% 80% 100%
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Graph: 4
9% 0 8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Pr n a t e M ae a gr n ad n c so e ut m r Fed r nl i y Ac d g c ei n
INTERPRETATION:
The majority of marketing managers strongly agreed that based on customers behavior only they selected and maintained relation which customers.
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5) Do you maintain the same relation with the same and old customers? Alternatives Yes No No idea Cant say Total 23 02 25 No. of respondents Percentage of respondents 92% 08% 100%
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Graph: 5
10 0% 9% 0 8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ys e N o N id a o e Cn s y a t a
INTERPRETATION:
Many of the Marketing managers opinion that they maintained same relation towards new and old customers, With out relation there is no development in everything.
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6) How does marketing manager identify himself in present market field? Alternatives No. of respondents Customer response 03 towards you Customer behavior 02 03 17 25 Percentage of respondents 12% 08% 12% 68% 100%
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Graph: 6
10 2% 10 0% 8% 0 6% 0 4% 0 towards you towards you satisfaction 2% 0 Customer response 0 %
Customer
Customer
All the
behavior
above
INTERPRETATION:
Most of the market managers know themselves in market field through customers attitudes towards them. Knowing thyself is the best work in the world.
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Total
7) How do you develop relation with the customer? Alternatives Through motivation Through service Through communication All of the Total No. of respondents 25 25 Percentage of respondents 100% 100%
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Graph: 7
10 2% 10 0% 8% 0 6% 0
ic e ti o n u n ic a
v a ti
2% 0 0 %
T h ro u g h
o n
4% 0
e rv
o ti
h ro u g h
o m
INTERPRETATION:
Marketing managers opinion that by providing good service to the customers they developed their relationship, Customer is every thing for the business.
T h ro u g h
64
ll
o f
th e
8) How do you promote the products to the customers who is not willing to buy Alternatives Maintaining good relation Motivation Grater discounts All of them Total No. of respondents 02 01 01 21 25 Percentage of respondents 08% 04% 04% 84% 100%
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Graph: 8
9% 0 8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 %
o o d g
ti o n
Sr s eie 1
o u n ts
re
la
o n
o ti v a ti
d is c
a ti n
te
INTERPRETATION:
Most of the marketing managers promote the products by practicing technical skill in day to day work life.
a ri n
G ra
66
ll
o f
th e
9) An Effective Marketing Manager must have the following. Alternatives Communication Understanding Relation and service All of them Total No. of respondents 25 25 Percentage of respondents 100% 100%
67
Graph: 9
10 2% 10 0% 8% 0 6% 0
rv ic e o n ta n d in g
4% 0 2% 0 0 %
m m n ic a ti s e
d e rs
n d
la ti o
C o
U n
INTERPRETATION:
Marketing managers say the marketing Manager must be very good at interpersonal relation.
R e
68
ll
o f
th e
10) How do you control stress while in dealing with the customers? Alternatives Friendly talk Requesting to wait Drinking water Based on time Total No. of respondents 11 05 04 05 25 Percentage of respondents 44% 20% 16% 20% 100%
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Graph: 10
5% 0 4% 5 4% 0 3% 5 3% 0 2% 5 2% 0 1% 5 1% 0 5 % 0 % Fie d r n ly ta lk R q e tin eus g towit a D k g r in in wte a r B s do ae n tim e
INTERPRETATION:
Many of the Marketing managers opinion that until they over come stress they did not start interaction with customers. it is good to have healthy mind to maintain relation.
70
11) What most satisfies the Mktg. Manager? Alternatives No. of respondents Percentage of respondents
06 04 07 08 25
71
Graph: 11
10 2% 10 0% 8% 0 6% 0 4% 0 0 %
P c ti fa o n o ti o n e n ts ts
2% 0
a ti s
In c re m
ro m
INTERPRETATION:
So many marketing managers agreed that they satisfied themselves by proving good services to the customers.
C u
s to m
e r
72
T o ta l
ro fi
12) The Kind of status does the marketing manager maintain when he meets the customer. Alternatives Manager Servant Friend According to time Total 03 05 08 09 25 No. of respondents Percentage of respondents 12% 20% 32% 36% 100%
73
Graph: 12
4% 0 3% 5 3% 0 2% 5 2% 0 1% 5 1% 0 5 % 0 % Mn g r aae Sr a t ev n Fie d r n A c r in c od g totim e
INTERPRETATION:
By knowing customer behavior only many of the marketing managers maintain relation with them.
74
13) Do Customer Relationship Manager Has a Plan to Develop Customer Relation Alternatives Yes No No idea Cant say Total 20 02 03 25 No. of respondents Percentage of respondents 80% 08% 12% 100%
75
Graph: 13
9% 0 8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ys e N o Ni e oda C sy at a n
INTERPRETATION
Every manager should have a plan to improve their relation towards a customer. With out plan they achieve nothing.
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14) The Customer Relationship Management takes from others help for developing a relation towards a customer. Alternatives Yes No No Idea Cant say Total 25 25 No. of respondents Percentage of respondents 100 100
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Graph: 14
10 2 10 0 8 0 6 0 4 0 2 0 0 Ys e N o NIe oda Cn s y a t a
INTERPRETATION:
Every Marketing manger wants to take help from others for development of customer relationship.
78
15) How do you rate the AMARAVATHI in helping maintain Relation with customer? Alternatives Yes No No idea Cant Say Total No. of respondents 25 25 Percentage of respondents 100% 100
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Graph: 15
10 2% 10 0% 8% 0 6% 0 4% 0 2% 0 0 % Ys e N o N ie o da Cn Sy a a t
INTERPRETATION:
The brand name of the AMARAVATHI helps to the marketing managers to make effective relation with customers. It is the duty of the marketing manager to create good brand name for the organization.
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16). What Manager the Customer Relation Development Programmers Are Helpful to the Marketing Managers in Solving Customers complaints Alternatives Excellent Good Fair Poor Total No. of respondents 23 02 25 Percentage of respondents 92% 08% 100%
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Graph: 16
10 0% 9% 0 8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ec lle t xe n Go od F ir a Po or
INTERPRETATION:
Many of the marketing managers strongly believed that the customer relation development programs were very much useful.
82
17)
What
Alternates
the
Customers
towards
the
Products
of
AMARAVATHI? Alternatives No. of respondents Quality Products Advertisement Good relations & 01 Services All of them Total 24 25 Percentage of respondents 04% 96% 100%
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Graph: 17
10 2% 10 0% 8% 0 6% 0
rv ic
Sr s eie 1
e s u c ts e n t
4% 0 2% 0 0 %
P S e
s e m
ro d
o n s
rt i
d v e
lit
re la ti
Q u a
INTERPRETATION:
Many f the Marketing managers want to attract the customers with their quality products and service.
G o o
84
ll
o f
th e
&
18) The way of giving price Reduction and Discounts to the Customers. Alternatives Brand Total Variety Cost Wise Total 08 12 02 03 25 No. of respondents Percentage of respondents 32% 48% 08% 12% 100%
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Graph: 18
6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ba d rn T ta o l V r ty aie Cs W e o t is
INTERPRETATION:
Many of the marketing managers give price reduction based on the customer order level.
86
19) How do the Mktg. the products of AMARAVATHI Alternatives Quality Service Communication Constant touch All of them Total No. of respondents 25 25 Percentage of respondents 100% 100%
87
Graph: 20
10 2% 10 0% 8% 0 6% 0 4% 0 2% 0
o n u ch ic e m A ll o f th e
0 %
S
n ic a ti
e rv
Q u a
m m
INTERPRETATION:
All the marketing managers create life long customers through quality relation and service.
C o
C o
n st a n
lit
to
88
20) Are they getting information from the Customers for the Development of the Organization? Alternatives Yes No No idea Cant say Total No. of respondents 22 03 25 Percentage of respondents 88% 12% 100%
89
Graph: 20
10 0% 9% 0 8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ys e N o N id a o e Cn s y a t a
INTERPRETATION:
Many of the marketing managers get relevant information from customers, based on that information only they have taken decisions.
90
CUSTOMER POINT OF VIEWS 1) Customer Relationship Management starts Alternatives Communication Talkative person Friendly All of them Total No. of respondents 04 01 02 18 25 Percentage of respondents 16% 04% 08% 72% 100%
Graph: 1
8% 0 7% 0 6% 0 5% 0 4% 0 2% 0 1% 0 0 %
m m s o n
3% 0
n ic a ti o n
p e r
d ly
a ti v
ri e n
a lk
C o
INTERPRETATION: Many of the customers opinion that those who have communication skills and good interpersonal skills are more important for the effective manager.
91
ll
o f
th e
2) Are the customers satisfied with the CRM Activities of AMARAVATHI? Alternatives Totally Satisfied Not Satisfied Cant Say Total No. of respondents 10 34 2 4 50 Percentage of respondents 20% 68% 04% 08% 100%
Graph: 2
8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % T ta o lly S tisie a f d Nt o S tisie a f d Cn S y a t a
INTERPRETATION: From the above conclusion of information, we can draw that 88% of respondents felt that they satisfied with customer relationship activities of AMARAVATHI. Whenever there is a positive dimension, definitely there is negative dimension also. So on the other hand remaining 12% of respondents were not satisfied. So AMARAVATHI has to improve its activities in a manner to reach each and every customer
92
3) Do the customer relation manager understanding the need of the customers. Alternatives Strongly agree Agree Disagree Cant Total No. of respondents 16 24 4 6 50 Percentage of respondents 32% 48% 08% 12% 100%
Graph: 3
6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % S og t n ly r ar e ge Ar e ge D ar e is ge Cn a t
INTERPRETATION: From the above information 80% of respondents felt that customer relation manager understanding the needs of them and also treats well. The rest of them i.e., 20% felt that manager was not understand the needs of the customer. Most of customers have positive opinion on customer relation manager of AMARAVATHI. So AMARAVATHI has to train their managers to understand the needs of the customers
93
4) What Fulfill the Customers Satisfaction? Alternatives Quality Price Customer relation & service All of them Total No. of respondents 7 7 25 11 50 Percentage of respondents 14% 14% 50% 22% 100
Graph: 4
10 2% 10 0% 8% 0 6% 0 4% 0 2% 0 0 % Qa y ulit P e r ic Cso e ut m r r la n et & io s r ic e e v A ot e ll f hm
INTERPRETATION: From the above information most of the customers ie 50% felt that, customer relation and service can give them satisfaction. The remaining 14% felt that, the price and quality can give them satisfaction. The other 22% of respondents felt that; quality, price, customer relation and service give them satisfaction. So the AMARAVATHI has to maintain a proper relation and provide good services to the customers.
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5) Who are the Effective Marketing Managers? Alternatives One who understands One who satisfies Both A& B Cant say Total No. of respondents 24 01 25 Percentage of respondents 96% 04% 100%
Graph: 5
10 2% 10 0% 8% 0 6% 0 4% 0 0 %
ta n fi e s
2% 0
d s
e rs
ti s
&
s a
u n d
o th
h o
h o
INTERPRETATION:
According to so many customers the effective marketing manager is the one who understands and satisfied the need of the customer.
O n e
O n e
95
C a
n t
a y
7) Are You Aware of customer Relationship Management Cell in AMARAVATHI Alternatives Yes No No idea Cant say Total 24 22 04 50 No. of respondents Percentage of respondents 48% 44% 08% 100%
Graph: 7
6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ys e N o N id a o e Cn s y a t a
INTERPRETATION: From the above information, we can draw that 48% of the respondents were knew about CRM CELL in AMARAVATHI. And the remaining 52% of respondents were not aware of this CELL. Most of the customers were not aware of the CRM Cell. So AMARAVATHI has to take actions to make customers aware of this cell.
96
7) What motivate you is be a loyal customer of AMARAVATHI Alternatives Quality Price Customer Relation & service All of them Total No. of respondents 6 4 35 5 50 12% 8% 70% 10% 100% Percentage of respondents
Graph: 7
10 2% 10 0% 8% 0 6% 0 4% 0 2% 0 0 % Qa u lity P rice C sto e u mr R la n& e tio s rv e e ic A o th m ll f e
INTERPRETATION: From the above information, 70% of customers felt that, they became loyal because of customer relation and service provide by AMARAVATHI. The other 20% said that they became loyal because of prices and quality. And the remaining customers said that because of price, quality, customer relation and services made them loyal to AMARAVATHI.
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8) Do you think the Marketing Mangers of AMARAVATHI Work to improve Their Relationship with Customers? Alternatives Yes No No idea Cant say Total 36 10 04 50 No. of respondents Percentage of respondents 72% 20% 08% 100%
Graph: 8
8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 Ys e N o N id a o e Cn s y a t a
INTERPRETATION: From the above information 72% of the customers felt that marketing manager of AMARAVATHI was working properly to improve relationship with them. And the remaining 28% of customers felt that the manager had no intention to build relation with customers. So AMARAVATHI has to give proper training to the managers in order to build good relation with customers
98
9) How do the customers consider the relation with the CRM? Alternatives As family member As friend As manger Cant say Total No. of respondents 02 16 07 -25 Percentage of respondents 08 64 28 100
Graph: 9
7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 A fm s a ily mme e br A fr n s ie d A mn e s agr Cn s y a t a
INTERPRETATION:
Many of the responders consider the market manager as a friend a good way of way of relation with customers
99
No. of respondents 06 20 20 04 50
Graph: 10
4 5 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 Ec let xe n l Gd o o Fi a r Po or
INTERPRETATION From the above information, 92% of respondents felt that the prices offered by the AMARAVATHI were reasonable. Where as the remaining 8% of respondents felt that, the prices were reasonable. From this data it is very clear that the quality of AMARAVATHIs products were good so price is not consider here. Neglisable % of respondents felt that prices were not reasonable. So AMARAVATHI has to do small changes in pricing policies in order to attract all type of customers
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No. of respondents 22 10 14 4 50
Graph: 11
5% 0 4% 5 4% 0 3% 5 3% 0 2% 5 2% 0 1% 5 1% 0 5 % 0 % Ec lle t xe n Go od F ir a Po or
INTERPRETATION: From the above information 64% of respondents have a very positive behavior towards pre-sale services. But on the other hand 36% are not in a positive dimension as a result the company is only capable to pull 64% of customers as a whole and loosing 36% which indicates that the company has to work more on pre-sale services as it is the primary activity to create customers
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12)Where do you think the Stock yard should be? Alternatives Out side the company Satisfied with the present location Total No. of respondents 16 34 50 Percentage of respondents 32% 68% 100%
Graph: 12
8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % O s eh P n u i te l t t d a Stse w t e a f d i hh i i t p s nl cto r et oa n e i
INTERPRETATION: From above data 68% of respondents satisfied with the present location of stockyard of AMARAVATHI. The rest of them felt that the stock yard should be out side of the company. Most of the customers felt that, when stock yard is inside the company the product loading process become very easy and incase if they find any problem, there is a chance to intimate immediately to management. When it is out side of company there may be no proper execution on the stockyard
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13) Do you get all the products you need at the stock yard? Alternatives Yes No Total No. of respondents 18 32 50 Percentage of respondents 36% 64% 100%
Graph: 13
7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ys e N o
INTERPRETATION: From the above data 64% of customers never got all products they needed from stock yard. The rest of 36% customers felt that they got all products at stock yard. So AMARAVATHI has to check out the stock yard whether it has all Products or not
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14) Do you need any Knowledge / Education about the product for maintenance of its quality in the process of storage and handling? Alternatives Yes No Total No. of respondents 28 22 50 Percentage of respondents 56% 44% 100%
Graph: 14
6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ys e N o
INTERPRETATION: From the above information 56% of respondents strongly agreed that they need knowledge about product for maintaining of its quality in process of storage & handling and rest of 44% were not required any knowledge regarding the storage and handling of products
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15) Are you satisfied with the complaint resolution process? Alternatives Yes No Total No. of respondents 12 38 50 Percentage of respondents 24% 76% 100%
Graph: 15
8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % Ys e N o
INTERPRETATION: From the above information 76% of the customers are not happy with the complaint resolution process. Only 24% are satisfied with the compliant resolution process Compliant resolution process is the most crucial one in the customer retention process. Due to lack of CRM software the complaint resolution process is not up to the mark. So AMARAVATHI has to take certain precautions to solve the problems of customers.
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16) With in how many days do you expect the complaints to be resolved? Alternatives 5 Days 10 Days 15 Days 20 Days Total No. of respondents 42 8 0 0 50 Percentage of respondents 84% 16% 0% 0% 100%
Graph: 16
9% 0 8% 0 7% 0 6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % 5 as Dy 1 Dy 0 as 1 Dy 5 as 2 Dy 0 as
INTERPRETATION: Any customer always needs their complaint to be resolved as early as possible. From the above information, 84% of the customers felt that complaints need to be resolved as early as possible probably within 5 days. So AMARAVATHI has to solve the complaints as early as posible
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17) Time taken from the enquiry stage to conformation stage Alternatives 1-3 hrs 3-6hrs >6hrs Total No. of respondents 28 14 8 50 Percentage of respondents 56% 28% 16% 100%
Graph: 17
6% 0 5% 0 4% 0 3% 0 2% 0 1% 0 0 % 1 hs -3 r 36 rs -h >h 6 rs
INTERPRETATION: From the above information 56% of the customers always had the transaction completed with in 3hrs. Remaining customers had to wait more than 3 hours for their transaction to be completed. Many of the customers are happy with the transaction time which they had completed with in 3 hours. But the company can also concentrate on customers who are waiting for more than 6 hrs. And also take actions to reduce this time
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FINDINGS
According to the opinion of various respondents in Amaravathi. It was found that majority of employees Amaravathi Textiles Company. As well all know that human wants are unlimited. There do few employees who expressed. Their dissatisfaction with the various customer relationship management practices exists in Amaravathi Textiles Company Limited. The overall CRM situation is very cordial The absenteeism has considerably. Reduced 1% a day because of various measures taken by the management The safety measures and CRM measures taken by the management All the employees of the organization are satisfied with the CRM procedures and working conditions. The superior and subordinate relations with customers are formal and cordial Management attitude is positive towards. The settlement of grievances, because all the grievances are settled at the initial stages. Political application and inter-union-rivalry are the main cause for the disputes between trade unions
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SUGGESTIONS
Expand plant capacity to 6.3 Mt by 2009-10, with the mission to expand further in subsequent phases as per the corporate plan.
Be proactive in conserving environment, maintaining high levels of safety and addressing social concerns Personnel attention towards customer requirements without software facility Need to take the fixed model to follow the same according to the time being conditional terms
The AMARAVATHI doesnt use any type of CRM software to fulfill the CRM terms& norms. AMARAVATHI need to have software to fulfill their customers requirements
Software brings the high involvement procedure from top management to customers level. It needs develop in high frequency of implications according to needs and technological changes. It will be more useful technically with the introduction of CRM software
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CONCLUSION
In this chapter we present the conclusion of my research. The goal or this research was to study the customer relationship management systems and practices on todays customer retention endeavor; CRM has been a key element of the modern marketing in recent years. All around the world companies in different sizes have been trying to utilize CRM systems to help them with their competitive business. On the other hand because of vigorous competition not only acquiring new customers is becoming difficult but also holding existing customers is a quite challenging task During our research we learned that it is a lot cheaper to keep existing customer in level that constantly encourage them to stay with a company is a dynamic and meticulous job. That is why computerized CRM system can play a critical role in success of a company. But the way that CRM systems are used can make substantial different on the out come. Along with sales and marketing, all the other departments of a business should be involved in CRM processes. A new emerging approach that recently has been attracting corporations is customer value management. Their goal is to identify value that can be delivered to the customer along with their products through their supportive processes and services. For a successful relationship it is up to the company to performs customers profitability analysis. As a result this analysis, if a customer is not doing well with presented products or services, there is an opportunity for us to find a better solution for that customer before loosing it to competitors. One of the other important facts I learned in this research was; a fundamental principle of CRM is that all customers are not same. Another words, it is not possible to attract and retain all customers with the same policy and treatment. And also I found that AMARAVATHI has been providing proper customer service in order to retain them for a long period.
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QUESTIONER
1. The Marketing Managers of AMARAVATHI Starts Relation with Customers a) Smile b) Eye contact a) Quality products c) Reasonable price c) words d) all of them 2. The satisfaction provided to the Customers of AMARAVATHI by b) good servicing and relation d) all of them relationship towards a particular customer to b) Friendly d) none of the above
3. The way of maintaining a) Harshly c) Pretending to be friendly a) Parent and child c) Friendly a) Yes b) No
4. The kind of relation the marketing Manager maintain with the customers. b) Manager and Customer d) According to time c) Cant say d) No idea
5. Do you maintain the same relation with the same and old customers? 6. How does marketing manager identify himself in present market field? a) Customers response towards you c) Customer satisfaction a) Through Motivation b) customer behavior towards you d) All of the above b) through Service
7. How do you develop relation with the customer? c) Through Communication d) All of them 8. How do you promote the products to the customers who are not willing to buy? a) Maintaining good relations b) Motivation c) Greater Discount a) Communication d) All of them b) Understanding 9. An Effective Marketing Manager must have the following. c) Relation and Service d) All of them 10. How do you control stress while in dealing with the customers?
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c) Cant say
d) No idea
13. How do you Rate the Brand AMARAVATHI in helping Maintain Relation
with Customers.
a)
Excellent
b) Good
c) Fair d) Poor
14. DO AMARAVATHI Provide Any Training Class to Develop relation with Customer a) Yes b) No c) Cant say d) No idea Are 15. In what manner the customer relation development programmers helpful to the marketing managers in solving customers Complaints? a) Excellent b) Good c) Fair d) Poor 16. What attracts the Customers towards the Products of AMARAVATHI? a) Quality products b) Advertisements c) Good Relations and Services d) All of them 17. The way of giving price Reduction and Discounts to the Customers. a) Based on order level b) Based on Customer behavior c) Based on Relation d) None 18. How does the [Link] explain the products of AMARAVATHI? a) Brand b) Quality c) Variety d) Cost wise 19. Are the marketing managers getting information from the Customers for the Development of the Organization? a) Yes b) No c) Cant say d) No idea 20. How the media is helpful to maintain better relation with customers? a) Excellent b) Good c) Average
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d) Poor
Questions for Customers: 1. Are YOU satisfied with the CRM activities of AMARAVATHI? a) Totally satisfied b) Satisfied c) Not satisfied Customers? a) Strongly agree c) Disagree a) Quality b) Agree d) Cant Say b) Price d) cant say 2. Do the customer relation manager understanding the need of the
3. What Fulfills the Customers Satisfaction? b) Customer Relation and Service d) All of them 4. Do You Aware of customer Relationship Management Cell in AMARAVATHI a) Yes b) No c) Cant say d) No idea 5. What motivates you to be a loyal customer of AMARAVATHI? a) Quality b) Price c) Customer Relations & Service d) All of them 6. Do you think the Marketing Mangers of AMARAVATHI Work to improve Their Relationship with Customers? a) Yes Manager? a) As a family member c) As a manager a) Excellent c) Fair a) Excellent c) Fair b) good d) Poor b) good d) Poor b) As a friend d) cant say b) No c) Cant say d) No idea 7. How do the customers consider the relation with the Customer Relation
11. Do you want to give any suggestions to the customer relation managers c) Cant say d) No Idea
12. Do you buy the products without having any relation with Marketing manager of AMARAVATHI? a) Yes b) No c) Cant say d) No idea 13. What does customer except from the marketing manager of AMARAVATHI? a) Good Service c) Price to be Resolved? a) Less than 5 Days c) Less than 15 Days b) Less than 10 Days d) Above 15 days b) Quality Products d) all of them
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Text Books: Marketing management Customer relationship management Consumer Behavior Consumer Behavior Kazmi Hawkins Philip Kotler L.G. Schiff man
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