Electromeech Engineering & Associates

A PROJECT REPORT
ON
CUSTOMER RELATIONSHIP MANAGEMENT IN
B2B MARKET
AT
ELECTROMECH ENGINEERING & ASSOCIATES
( ETA)
A PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF
REQUIREMENT FOR THE DEGREE O F
MASTER OF BUSINESS ADMINISTRATION
(Industry Integrated)
MADURAI KAMARA1 UNIVERSITY, MADURAI
By
VINISHA VASHISTHA
Reg No.: A7754274
Under the guidance of
Mrs.Gunjan Rana
RAI BUSINESS SCHOOL
Mathura road, New DelhI
DEC 2008
Rai Business School

Certification
This is to certify that the project report at
( ETA)
Submitted in Partia !u!iment "! t#e re$uirement !"r
t#e De%ree "!
To
VINISHA VASHISTHA
Under my supervision and guidance and that no part has been submitted for the
award of any other Degree/Diploma/fellowship or similar title or prizes
Faculty Guide
Signature :
Name :MrsGun!an Rana
Signature " Sea# $% t&e #earning 'enter
RAI BUSINESS SCHOOL 2
STUDENT S DECLARATION
I hereby declare that the Project Report conducted at
( ETA)
Under t#e %uidan&e "!
Mr'(Gun)an Rana
Submitted in Partia !u!iment "! t#e re$uirement !"r t#e
De%ree "!
TO
Is my original work and the same has not been submitted for the award of any other
Degree /Diploma/fellowship or other similar titles or prize
Place: VINISHA VASHISTHA
Date: Reg. No. : A7754274
Project Report
At
( ETA)

Submitted by:
VINISHA VASHISTHA
MBA-III(MKU)
Reg. No.-A7754274
Under the guidance of :-
Mr. Mahender Gera
Re%i"na Mana%er*
( ETA)
Sant Na%ar* Ne#ru Pa&e

AC+NO,LEDGEMENT

I -i'# t" e./re'' m0 %ratitude t" ELECTROMECH ENGINEERING 1 ASSOCIATES !"r
%i2in% me an "//"rtunit0 t" be a /art "! t#eir e'teem
"r%ani3ati"n and en#an&e m0 4n"-ed%e b0 %rantin% /ermi''i"n t" d"
'ummer trainin% /r")e&t under t#eir %uidan&e(
I am %rate!u t" Mr(MAHENDER GERA m0 C"m/an0 %uide* !"r #i' in2auabe %uidan&e and
&""/erati"n durin% t#e &"ur'e "! t#e /r")e&t( He /r"2ided me -it# #i' a''i'tan&e and 'u//"rt
-#ene2er needed t#at #a' been in'trumenta in &"m/eti"n "! t#i' /r")e&t(
I -"ud a'" i4e t" t#an4 m0 &areer mana%ement &e #e/ed in t#e a&&"m/i'#ment "! t#i'
-"r4 and "bi%ed !"r #er &"n'i'tent 'u//"rt(
T#e earnin% durin% t#e /r")e&t -a' immen'e 1 in2auabe( Our -"r4 ba'i&a0 in&uded t#e
'tud0 "! &u't"mer reati"n'#i/ mana%ement( T#e /re'ent re/"rt i' an ama%amati"n "! "ur
t#"u%#t' and "ur e!!"rt' t" 'tud0 t#e &u't"mer so that managers may develop better
approaches in dealing with their customers, and form mutually rewarding relationship
in the future.
Fina0 t#r"u%# t#i' a&4n"-ed%ment I -"ud i4e t" e./re'' m0 'in&ere
%ratitude t"-ard' a t#"'e /e"/e -#" #a2e been in'/irati"na and
in'trumenta in dra!tin% t#i' a''i%nment(
TABLE O( CONTENT
A&4n"-ed%ement
Ab'tra&t
5( Intr"du&ti"n
ETA
6( &ient
7( Ob)e&ti2e
8( Met#"d""%0
Primar0 Data
Se&"ndar0 Data
9(
Unit Lin4ed In'uran&e P"i&0
: (Mutua Fund
;( T0/e' "! Mutua Fund
<( ULIP =' Mutua Fund
>( Mutua Fund Ana0'i'
5?( Sur2e0
55( Re&"mmendati"n'
56( Bibi"%ra/#0
57(Anne.ure
ABSTRACT:
Customer Relationship Management (CRM) is a software package that can be used to
collect information and collaborate internally across a corporate organization in order to
improve interaction with customers.
There are two elements which make up CRM! one is interaction with the customer
which can be through "nternet or through traditional methods such as the telephone.
The second is for a company to utilize the information gathered from such interaction
to market their products better.
The second element involves using the "nternet or more accurately corporate
intranets so that the information is widely available within the organization. The
software packages which make up CRM thus help a company identity that its
customers are and their spending patterns. CRM along with supply chain
management have become the leading tools of the so#called new economy which is
supposed to have greatly enhanced productivity.
INTRO)UCTION
Resear'& M$ti*ati$n
A multitude of companies today has already identified the need to create a loyal customer base and
acknowledges that maintaining existing customers and extending business with them is significantly less
expensive than acuiring new customers! "mpirical proof of the proliferation of such customer loyalty efforts in
the business world is e!g! provided in the form of loyalty programs# which many companies have installed
during the past years! $y engaging in efforts aimed at creating customer loyalty# which in turn fosters financial
success in monetary terms firms react to increasing competitive challenges!
%ithin research# the investigation of customer loyalty gained importance when the classic marketing
paradigm with its instrumental and transactional orientation proved unsuitable in the context of longer&term
business relationships! 'nstead# the relationship marketing approach# which is specifically concerned with the
study of relational ex&changes# gained importance within research# serving as a conceptual foundation for the
ma(ority of customer loyalty researchers!
RAI BUSINESS SCHOOL )
*he uestion of how loyalty develops has been sub(ect to an abundance of research# leading to an
expansive body of literature on loyalty determinants! *he extant literature exploring different factors and their
constituent effects on loyalty# however# reveals a strong focus on consumer goods and industrial euipment
settings# while industrial services have received relatively little attention so far! 'n addition# the ma(ority of
articles incorporates merely a few potential determinants and thus fails to draw a comprehensive picture of the
mechanisms of customer loyalty formation!
+ust like other businesses# ,"-s service providers .,"- /ontractors0 are faced with increasing competitive
pressure that urges them to concentrate not only on operational business processes# but also on an efficient
and effective customer management! 'n the 12 alone# ,"- /ontractors3 revenues grew from 12&4 35 billion in
5665 to 12&4 )5 billion in 2774 and ,"-s outsourcing expenditures as a fraction of total ,"-s expenditures
are at over 478 and expected to rise even further! 9ne way to meet this challenge of rapid growth and
expansion# according to :angley et al! is to focus on establishing# maintaining# and developing relationships
with customers!
An often proposed driver of ,"-s outsourcing is the need to develop and maintain competitive advantage#
which customers of ,"- /ontractors intend to achieve through concentrating on core competencies and re&
engineering! Another important driver is the ongoing globali;ation# which several authors regard as the most
important challenge that companies are facing! 'n this context# ,"- /ontractors can play an important role as
facilitators of global trade! Along with globali;ation# however# companies that outsource ,"-s activities
increasingly try to consolidate the number of ,"- /ontractors they use globally! *herefore# ,"- /ontractors
do not only have to devise sustain&able growth strategies# but also have to develop intercultural management
competencies# a challenge hardly ad&dressed in ,"- management literature!
%hile intercultural management deals with the influence of culture on management styles in different
countries# it is also arguable whether a one best way management paradigm is applicable even within national
confines! ,"- /ontractors3 customers are extremely diverse and similarly# relationships between ,"-
/ontractors and their customers can be expected to exhibit momentous differences! As such# it is a crucial
management issue for ,"- /ontractors to de&sign their customer loyalty efforts in a manner that accounts for
both cultural context and different relationship characteristics!
Resear'& g$a#s
As outlined in the preceding section# ,"- /ontractors are confronted with diverse management
challenges that result from continuous growth# globali;ation# and customer diversity! *he aim of the present
study therefore is to identify determinants of customer loyalty in relationships between ,"- /ontractors and
their customers by explicitly considering different characteristics and cultural contexts of such relationships! 'n
this sense# the present research is positioned at the interface of marketing and ,"-s and is intended to
contribute not only to ,"-s research# but also to research in marketing# customer loyalty# and cultural studies!
'n order to address the concept of customer loyalty# it is important to understand the mechanisms
underlying loyalty in the ,"-s outsourcing context! <or this reason# the starting point of the present research
will be the study of %allenburg# who studied customer loyalty within relationships between ,"- /ontractors
and their customers! 9n this basis# factors that can be surmised to determine customer loyalty in such
relationships will be proposed and interdependencies between these factors will be identified! *he resulting
comprehensive explanatory model of customer loyalty will not only provide insights into the constitution of
customer loyalty# but will also serve as the basis for subseuent analyses!
As stated previously# a globali;ing marketplace and the need of ,"- /ontractors to render ,"-
services on an international scale reuires intercultural management competencies! $efore being able to apply
such management techniues# though# a thorough understanding of cultural differences between different
countries is necessary! *he present study will therefore provide a starting point for such analyses by
investigating cultural differences between two important markets for ,"-s outsourcing# the 12A and
=ermany! -articular differences between =ermany and the 12A will be identified and applied to the previously
devised customer loyalty model! As a result# differences between the two countries with respect to the
formation of customer loyalty can be inferred!
<inally# this study will investigate in how far different relationship conditions influence the development
of customer loyalty! <or this purpose# important relationship characteristics will be identified and their
moderating influences on the customer loyalty model will be examined! *his will provide information on the
robustness of the customer loyalty model versus relational contingencies and will suggest if it is necessary to
differentiate customer loyalty efforts accordingly!
Cust$mer Satis%a'ti$n
*he term ,"-s is often misinterpreted to mean transportation! 'n fact# the scope of ,"-s goes well
beyond transportation! ,"-s form the system that ensures the delivery of the product in the entire supply
pipeline! *his includes transportation# packaging# storage and handling methods# and information flow! *he
impact of ,"-s in the ability of a company to satisfy its customers cannot be overstated! All other efforts at
moderni;ation within a company would not bear fruit until the ,"-s system is carefully designed to facilitate
the smooth and efficient flow of goods in the system!
*he topic of ,"-s is relatively new in 'ndia! *here have been some companies that have done work in
this area# but a large number of companies are only now beginning to reali;e the benefits of designing and
managing the entire supply chain! %ith 'ndia (oining the global marketplace# the role of ,"-s assumes greater
importance!
*he industrial policies in 'ndia have prompted manufacturers to build plants in remote# backward areas
due to inexpensive land and tax benefits! *his poses some serious logistical problems! Apart from a poor road
and transportation network# the existing communications system in 'ndia leaves a lot to be desired by any
international standard! 't is in this context that ,"-s has to be considered in 'ndia!
Cust$mer Satis%a'ti$n in + Ste,s
5! "ncourage <ace&to&<ace >ealings
*his is the most daunting and downright scary part of interacting with a customer! 'f you?re not used to
this sort of thing it can be a pretty nerve&wracking experience! @est assured# though# it does get easier over
time! 't?s important to meet your customers face to face at least once or even twice during the course of a
pro(ect!
2! @espond to ,essages -romptly A Beep Cour /lients 'nformed
*his goes without saying really! %e all know how annoying it is to wait days for a response to an email
or phone call! 't might not always be practical to deal with all customers? ueries within the space of a few
hours# but at least email or call them back and let them know you?ve received their message and you?ll contact
them about it as soon as possible! "ven if you?re not able to solve a problem right away# let the customer know
you?re working on it!
3! $e <riendly and Approachable
A fellow 2ite -ointer once told me that you can hear a smile through the phone! *his is very true! 't?s
very important to be friendly# courteous and to make your clients feel like you?re their friend and you?re there to
help them out! *here will be times when you want to beat your clients over the head repeatedly with a blunt
ob(ect & it happens to all of us! 't?s vital that you keep a clear head# respond to your clients? wishes as best you
can# and at all times remain polite and courteous!
4! Dave a /learly&>efined /ustomer 2ervice -olicy
*his may not be too important when you?re (ust starting out# but a clearly defined customer service
policy is going to save you a lot of time and effort in the long run! 'f a customer has a problem# what should
they doE 'f the first option doesn?t work# then whatE 2hould they contact different people for billing and
technical enuiriesE 'f they?re not satisfied with any aspect of your customer service# who should they tellE
*here?s nothing more annoying for a client than being passed from person to person# or not knowing who to
turn to! ,aking sure they know exactly what to do at each stage of their enuiry should be of utmost
importance! 2o make sure your customer service policy is present on your site && and anywhere else it may be
useful!
5! Attention to >etail .also known as ?*he :ittle Ficeties?0
Dave you ever received a Dappy $irthday email or card from a company you were a client ofE Dave
you ever had a personali;ed sign&up confirmation email for a service that you could tell was typed from
scratchE *hese little niceties can be time consuming and aren?t always cost effective# but remember to do
them!
"ven if it?s as small as sending a Dappy Dolidays email to all your customers# it?s something! 't shows
you careG it shows there are real people on the other end of that screen or telephoneG and most importantly# it
makes the customer feel welcomed# wanted and valued!
6! Anticipate Cour /lient?s Feeds A =o 9ut 9f Cour %ay to Delp *hem 9ut
2ometimes this is easier said than doneH Dowever# achieving this supreme level of understanding with
your clients will do wonders for your working relationship!
7! Donour Cour -romises
't?s possible this is the most important point in this article! *he simple messageI when you promise
something# deliver! /lients don?t like to be disappointed! 2ometimes# something may not get done# or you
might miss a deadline through no fault of your own! -ro(ects can be late# technology can fail and sub&
contractors don?t always deliver on time! 'n this case a uick apology and assurance it?ll be ready A2A-
wouldn?t go a miss!
Cust$mer L$-a#t-
9btaining a thorough understanding of customer loyalty is a prereuisite for the execution of the
research at hand! <or that# the development of customer loyalty research within the framework of relationship
marketing will be presented first# before different customer loyalty concepts will be introduced! <rom these
concepts# a definition of customer loyalty for use in this study will be derived# before both conseuences and
antecedents of customer loyalty will be portrayed!
2ince the beginning of the 5667s# customer loyalty has gained importance both in relationship
marketing research and in business! 'n business# this can be attributed to changing market& and competition&
environments! >ue to a shift from a sellers3 to a buyers3 market and because of an increasing degree of
globali;ation# most industries find themselves confronted with new challenges! 'n a first phase# firms tried to
face these challenges by focusing on their internal processes and organi;ational structures# trying to achieve
cost reductions by concentrating on internal improvements! A second phase of external focus followed# where
firms directed attention to their customers# trying to retain existing ones and to win over new ones .churning0!
2ince Jacuiring new customers is much more expensive than keeping themK! And Jloyal customers are the
bedrock of any businessK! A loyal customer base represents a barrier to entry# a basis for a price premium#
time to respond to competitor innovations# and a bulwark against deleterious price competition! :oyalty is
critical to brand volume# is highly correlated to market share# and can be used as the basis of predicting future
market shareG conseuently# understanding loyalty appears critical to any meaningful analysis of marketing
strategy!
'n marketing research# two trends mark the development of customer loyalty! %hile individual
transactions initially were in the center of marketing research# the focus shifted towards analy;ing relationships
states that the Ltraditional3 marketing concept of the marketing mix with its L4 -s3# developed in the middle of the
last century# had been the established approach until the 5667s! *his approach# how&ever# focuses solely on
transactions# a deficit tackled by the relationship marketing approach! At the core of it is the study of
relationships between buyers and sellers of goods or services# in contrast to merely examining transactions!
An often cited and comprehensive definition of relationship marketing is provided J@elationship marketing
refers to all marketing activities directed toward establishing# developing# and maintaining successful relational
exchanges!K *herefore# the relationship marketing approach pro&vides a suitable environment in which
customer loyalty research can be nested!
%hile the development of relationship marketing began in the early 5677s# it was not until the late
56)7s that works from the LFordic 2chool of 2ervices3! 'nitiated a paradigm shift that geared marketing towards
the creation# conservation# and extension of buyer&seller relationships! Although relationship marketing today is
widely accepted among marketing researchers# its promoters do not postulate the replacement of the
transactional approach# but rather (uxtapose the two approaches! <or example# delineates a strategy
continuum# in which different goods reuire different degrees of transaction& and relationship&based marketing
strategies! As a result of the focus on relationships in marketing research# customer loyalty gained importance
within research!
$efore determining which stream the present study can be associated with# however# it is important to
create a clear understanding of different customer loyalty concepts prevalent in research! *his will be
accomplished in the following section!
Cust$mer L$-a#t- C$n'e,ts
@eviewing research# it becomes obvious that the notion of customer loyalty is blurred! At its core#
customer loyalty deals with relationships between suppliers and their customers and can be distinguished from
other loyalty aspects# such as brand loyalty# which refer to a more abstract attachment# such as that towards a
brand! %ithin =erman customer loyalty literature# the notion of customer loyalty is even more faceted#
encompasses both Lcustomer loyalty3 and Lcustomer retention3 distinguishes an active# supplier&focused
component and a passive# customer focused component of customer loyalty!
'n the supplier&focused perspective# customer loyalty is seen as a bundle of measures that aim at
improving relationships with customers! *he supplier is in the center of attention and the customer is only
regarded as the factor at which success of customer loyalty becomes manifest! Dere it becomes clear that this
approach contains a conceptual deficit! 't is the customer who eventually decides on whether customer loyalty
management is successful or not# because all activities undertaken by a supplier can only be geared at
influencing customers to be loyal! A customer&focused perspective therefore has to be added to evaluate the
success of customer loyalty management!
RAI BUSINESS SCHOOL 5)
%ithin the customer&focused perspective# customer loyalty is conceptuali;ed taking into account
customers3 complex characteristics! *hese can either be approached as customers3 directly observable actions
andMor take into account their attitudes and intentions! 2ince customers3 actions are directly influenced by their
attitudes and intentions# it is obvious that these have to be scrutini;ed to understand and manage loyalty! A
third perspective is a synthesis of the former two approaches! *he relationship&focused perspective directly
examines the relationship between suppliers and customers! Accordingly# the ob(ects of study in this
perspective usually are buying behavior in retail contexts and long&term relationships marked by freuent
interaction between suppliers and buyers in industrial contexts!
't is clear that the supplier&focused perspective with its instrumental approach is significantly different
from the other two approaches! >istinguishing the customer& and the relationship&focused perspective#
however# is difficult# because both focus on the customer!
Behaviorist customer loyalty concepts
$ehaviorist concepts of customer loyalty have been at the core of early marketing research and focus
on customers3 observable behavior# as e!g! in purchasing behavior! Accordingly# customer loyalty is
established# when customers demonstrate consistency in their choice of supplier or brand! JDard&coreK loyalty#
when one product alternative is exclusively repurchased and of JreinforcingK loyalty# when customers switch
among brands but repeat&purchase one or more alternatives to a significant extent! 2imilarly# customer loyalty
as Jthe proportion of times a purchaser chooses the same product or service in a specific category compared
to the total number of purchases made by the purchaser in that categoryJ! -egging customer loyalty to
purchasing behavior# however# is very critical# there can be a multitude of factors affecting purchasing
behavior# such as product availability or special deals# which are not grasped by looking at purchases alone! A
main deficit of the behavioristic approach thus is that it does not look at the drivers3 behind purchasing
behavior!
Another disadvantage of behavioristic customer loyalty concepts is their ex&post approach! %hen
loyalty is only expressed through purchases# information on customers3 actual loyalty status in between
purchases is not available! /onseuently# decreasing loyalty is only recogni;ed after it manifests itself through
changed purchasing behavior! 9nly in relationships with freuent interaction can a supplier integrate further
aspects# such as complaints# into customer loyalty management! *he reason# why behavioristic concepts may
still be valuable# is because the measurement of customer loyalty in this approach does not necessitate
involvement by the customer! *he assessment of attitudes and intentions would always imply customers3
cooperation through participation in surveys! $y simply recording purchases# e!g! through delivery records in
the industrial context or customer cards in a consumer contextG the assessment of customer loyalty poses little
difficulty! -articularly in areas# where most purchases can be easily ascribed to individual customers# as is the
case with mail&ordering or book&stores on the internet# the behavioristic approach is useful for identifying
different customer groups and their characteristics! 2uch firms# however# can only assess purchases of their
own products# while purchases of competing products go unnoticed! <irms can therefore neither draw
conclusions about relative changes of purchasing behaviors# nor evaluate their comparative market position!
Neo-behaviorist customer loyalty concepts
*hese narrow technical definitions do not adeuately capture the richness and depth of the loyalty
construct implicit in a relational framework!K /onseuently# neo&behavioristic customer loyalty concepts start at
the shortcomings of the behavioristic approach by examining the causes of loyalty! As early as 5666# >ay
concluded that Jloyalty should be evaluated with both attitudinal and behavioral criteriaK otherwise accidental
repeat&purchases# merely resulting from situational exigencies# would be regarded as indicators of loyalty!
*here is no agreement# however# on the uestion# whether attitudes are part of customer loyalty or merely an
antecedent of it! 2ome authors propose that only positive attitude can lead to Ltrue3 customer loyalty! 'f attitude
then is a necessary prereuisite of customer loyalty# some drivers of loyalty cannot be explained! *ransaction
cost theory# for instance# provides the concept of asset specificity! @elationship&specific investments create
economic switching barriers and therefore increase customer loyalty! Dowever# the mere repeat purchase of
goods or services for reasons of economic constraints would not ualify as loyalty# as positive attitudes are not
involved! 'n order to avoid the outlined problem# it is useful to abstain from defining positive attitude to be a
necessary antecedent of loyalty! 'nstead# researchers usually consider intentions and observable behavior to
be the constituting elements of customer loyalty!
)eterminants $% Cust$mer L$-a#t-
'n order to be able to gear marketing activities towards the creation of customer loyalty# its determinants
and their precise effects have to be known! Accordingly# many researchers have investigated this topic! 'n
order to gain an overview of the determinants identified in these works# they can be structured in three
dimensionsI
./0 /ompany&related determinants refer to the supplier itself or to the goods or services offered! 't is
a prereuisite for the existence of customer loyalty that the offered goods or services create utility for the
customer and that they are available! 'n this respect# an assessment is usually performed by examining
uality! 'n order to evaluate the price&performance ratio# customers will pay attention to prices!
/ustomer loyalty will also be influenced by the reputation a company has and ultimately by customer loyalty
programs offered!
.20 @elationship&related determinants play a significant role in long&term relationships! <actors
regarding the interaction between supplier and customer# such as relationship uality# previous
experiences# and trust are important! /ommitment# which provides evidence of emotional closeness and
moral or normative feelings of obligation# takes a central role in relationships! 2pecificity and
dependence can lead to economic# psychological and social switching barriers!
.10 /ustomer&related determinants are mainly influenced by customers3 characteristics! 'n this
respect# affect and involvement# and conseuently also the importance of the good or service to the
customer# are important! 'n addition to the above delineated areas# the effects of the market environment
and competition are researched# as is the link between satisfaction and loyalty# which plays an
important role in the research of customer loyalty and is often placed in one of the three dimensions!
Dowever# as most other determinants influence satisfaction# it cannot be clearly separated and should
therefore be listed as a distinct category!

O*er*ie2
,"-s market is all set to experience a period of explosive organic growth# (udging by independent
market analyst >atamonitor?s latest research! *he >atamonitor report# N'ndia ,"-s 9utlook 2777#N predicts
high double&digit growth rates for both outsourced and contract ,"-s in 'ndia!

%ith 'ndia?s gross domestic profit .=>-0 growing at over 68 per year and the manufacturing sector
en(oying double digit growth rates# the 'ndian ,"-s industry is at an inflection point# and is expected to reach a
market si;e of over 4525 billion in year 2757!
2trong growth enablers exist in 'ndia today in the form of over 4377 billion worth of infrastructure
investments# phased introduction of value&added&tax .OA*0# and development of organi;ed retail and agri&
processing industries! 'n addition# strong foreign direct investment inflows .<>'0 in automotive# capital goods#
electronics# retail# and telecom will lead to increased market opportunities for providers of 3-: in 'ndia!N

Dowever# as a result of the under&developed trade and ,"-s infrastructure# the ,"-s cost of the
'ndian economy is over 538 of =>-# compared to less than 578 of =>- in almost the entire %estern "urope
and Forth America!

As leading manufacturers realign their global portfolios of manufacturing locations# 'ndia will have to
work on such systemic inefficiencies# in order to attract and retain long&term real investments!
COMPANY COMPANY
PPROFILE

"ncorporated in $%%&, ETA Engineering undertakes '()C pro*ects +lectro#mechanical pro*ects , services (+M-.) and Mechanical
+lectrical and -lumbing (M+-) work including /M. "nternal +lectrification and .ub#station 0orks meeting "nternational .tandards. ETA
has two manufacturing plants with capacity to manufacture a wide range of 1ucted .plit Chillers , )ir 'andling 2nits. ETA
is a subsidiary of +lectromechanical Technical )ssociates 3td Mauritius owned by +mirates Trading )gency 33C 1ubai
which is part of 1ubai#based industrial conglomerate the +T) 4roup which includes the +T)#).C56 4roup of companies and the +T)#
.tar 4roup of companies.
ETA ASCON, Dubai is a multi#faceted group having a turnover in e7cess of 2.1 .i7 /illion with diverse areas of e7pertise in activities
such as /uilders , Constructions +ngineering 8 +lectromechanical , +levator 0orks )dvanced 9ire 9ighting .hipping , Trading 'igh
(oltage transmission 1esalination -owder coating Retail , 3eisure /usiness Tours , Travels 9acilities Management )utomobiles
+nvironment Manufacturing etc.
ETA Engineering Pvt. Lt. is a Company registered in "ndia having it:s registered office in C!ennai and /ranch offices at A!"eaba,
#enga$uru, #!%&a$, C!anigar!, C!ennai, De$!i, H'eraba, (ai&ur, )%*!i, )%$+ata, Mu"bai, M',%re & Pune.

ETA Engineering has state#of#art Manufacturing 9acilities at .riperumbudur &; <ms outside Chennai city , -ondicherry.
The Company manufactures , markets full range of )ir#conditioning products including )ir#Cooled , 0ater cooled .croll Chillers )ir
'andling 2nits 9an Coil 2nits 1ucted .plits 9loor Mounted -ackaged 2nitary type .elf Contained -ackaged )ir conditioners 1C#
"nverter , 1igital (R9 ((ariable Refrigerant 9low) Cassettes 'igh#wall .plits , 0indow )ir conditioners. These are ideally suitable for
installation in applications such as /ank 'ospitals 5ffice premises .hopping = Commercial Comple7es Restaurants Retails outlets
The Company has been consistently driven by belief in 4lobal >uality .tandard as a norm.
0e thrive for raising the >uality .tandard in all our 5perations be it -ro*ects -roducts .ervices , Manufacturing.
ETA Engineering is the only "ndian Manufacturer of )ir 'andling 2nits to achieve prestigious Eur%vent Certification. "t is also 5ne of
the ? Companies 4lobally to achieve -L A**reitati%n for it:s )'2:s. "t produces Cooling , 'eating Coils which are ARI Certi.ie. The
entire Range of 1ucted .plits is CE Certi.ie.
ETA Engineering has large number of 1ealers as Channel -artners for offering +T) Range of -roducts with Cooling .olutions to
Company has a well .tructured )fter .ales # .ervice , .pares management for it:s 1ealers , Customers.
ETA Engineering is rated as the biggest turnkey +lectro # Mechanical Contractor in the country and offers electro mechanical services to
meet the needs of demanding clients. +T) has supported a wide array of pro*ects that include .oftware Campuses = -arks 5ffices
/usiness establishments 'otels 'ospitals .chools Commercial Comple7es "ndustries Marriage 'alls etc. 0e have participated in
pro*ects for large )ir Conditioning .ystems involving imported e@uipment manufactured to international standards. 0e ensure much
superior @uality of e@uipment and workmanship with advanced engineering skills. 0e have full#fledged team of @ualified engineers and
technical staff in the air#conditioning and electrical divisions to carry out large turnkey pro*ects. ETA Engineering has consistently
provided clients with timely and high value service competitively priced without sacrificing @uality.
The +ntire Company is certified for ISO /0012 3004 by LR5A.
ETA Engineering is also a founding member of "ndian 4reen /uilding Council (I.G.#.C).
)ccreditations from
WHO WE ARE ?
We are an eighteen year old innovative team of professionals and primary objective is
to assist ventures essentially with in the services industry comprising Residential,
Commercial(Light/eavy!,"nfrastructural, "ndustrial, #anufacturing, Customer
$ervices.

WHY WE ARE?
%he hospitality services industry is possibly the fastest growing business vertical
in "ndia today to &uote and apt mar'eting clich( demand far out strips supply in any
of the services comprising this business vertical. "t is projected that this demand
shall continue to grow e)ponentially over the ne)t ten years. %his is eventually
e)pected to result in various specialist with in the field being sought fore various
subheads that ma'e the services. $ervices industries as a whole.
*rofitability and continuous revenue planning being the 'ey behind any venture,
We
at +%, see' to address the 'ey component in the meeting on of the mar'eting
services re&uirements the 'ey differentiated between a good venture and profitable
one.
,t +%, we are completely alert to fact that each Clint is special and each Clint
present us we can opportunity to continue find tune and bone our mar'eting
s'ills to reali-e customer delight and satisfaction in every way possible.
,t +%,, we understand the value behind creation of relationship and associations
which e)tent far beyond the professional ambit. We firmly believed a satisfied
customer is veritable mouthpiece for other prospective clients.
,% +%,, they put our actions to match your recommendations this is our biggest
strength and is the very basis of our many successful mar'eting tie up.
We ta'e e)treme care in choosing our associates.

Our clienteles
We are having more than fifty national and international clients, our major clients are
@
COMMERCIAL MALL RESIDENTIAL
Pride C"n'tru&ti"n
+"te Pati Buider'
Sa#ara %r"u/
Dee/a4 Ferti3erA' ISHANBA CDe'i%n
Center(
Shoppers Stop
INDUSTRIAL CLIENTS
Asian Paint Ltd.
Bharat Forge
Ador Welding
Hindustan Petroleum
Hindustan Levers
Honeywell
John Deere
Avery Denison
Alfa Laval
Dolher ndia

MISSION, 6ISION & 6AL-ES
Mi,,i%n

5ur Mission is to provide >uality M.+.- services for our Customers by meeting customer re@uirements in design time
schedule prompt after sales service and thereby achieving total Customer loyalty , repeat business.

6i,i%n

To be the 6o.$ and the preferred Mechanical +lectrical -lumbing and 9ire 9ighting contractor as well as Manufacturers of
'()C +@uipments and )llied -roducts in "ndia.

6a$ue,

Customer Care
>uality 0orkmanship
Team 0ork
9le7ibility

RESEARCH METHODOLOGY
%he methodology for this project includes four phases.
$tudy of the concepts through various literature available on the
subject.
"nteraction with the corporate unit to get relevant information and
e)posure on the subject.
Primary survey through tele/calling and understanding their
concerns.
Analyses of data to derive Partnes and External customers
Satisfaction.
Primary Data Collection
, structured &uestionnaire was used to collect data from the interviews method was
used in order to get the &uestionnaire answer. ,s respondent played an important role
owing to their interaction
Secondary Data Collection
%he secondary data was collection from various maga-ines, journals, newspaper and
boo's written by e)perts. %he maga-ine referred to be 0usiness "ndia,
0usiness World, 1ewspapers li'e %he +conomic %imes, %he %imes of "ndia.
%he secondary data collected then was used in formulation of the
&uestionnaire, which was then used to collect primary information.
TYPE OF RESEARCH
%he research was descriptive in nature. ,n idea was to gain an insight into the
problems that the CR# to which wor'ing in the competitive environment. %he project
would have remained incomplete without the suggestions of the wor'ing in their
companies regarding the effort re&uired to serve the sector.

Limitati$ns $% t&e stu3-
*ime limit restricts detailed survey work for this particular topic of research
*he survey is restricted to the customers of "*A "ngineering who are involved in
imports A "xports
2ome customers have lack of time# so they may not communicate properly!

SCOPE OR !T!RE ST!DY
2. %he project study has been done ta'ing a very small sample si-e. , detailed
project can be underta'en for the same.
2. %he growth of the CR# sector has been accompanied by efforts aimed at
evovling an appropriate regulatory framewor'.

)ATA ANAL4SIS " INTERPRETATION
Cust$mers $*era## e5,erien'e t$ a''essi6i#it- an3 res,$nses $% re,resentati*e t&r$ug& Te#e,&$ne
O,ti$ns
Res,$n3en
ts
Per'entage
"xcellent 56
27 8
Oery =ood 56
27 8
=ood 32
47 8
<air 56
27 8
-oor 7
7 8
T$ta# 78
/88 9
*able & 5
Inter,retati$n:
27 8 of the customers responded that their overall experience to accessibility and responses
through *elephone is "xcellent! Fext 27 8 says it is very good! =ood being awarded by 47 8 of the customer!
<inal 27 8 is not so satisfied so they said that the service is fair
+7cellent
A;B
(ery 4ood
A;B
4ood
&;B
9air
A;B
-oor
;B
+7cellent
(ery 4ood
4ood
9air
-oor
(igure : 2
.C&art s&$2ing Cust$mers $*era## e5,erien'e t$ a''essi6i#it- an3 res,$nses $% )HL re,resentati*e
t&r$ug& Te#e,&$ne0
Cust$mers $*era## e5,erien'e t$ a''essi6i#it- an3 res,$nses
O,ti$ns
Res,$n3en
ts
Per'entage
"xcellent 56
27 8
Oery =ood 56
27 8
=ood 32
47 8
<air 56
27 8
-oor 7
7 8
T$ta# 78
/88 9
*able & 2
Inter,retati$n:
27 8 of the customers responded that their overall experience to accessibility and responses
through "&mail is "xcellent! Fext 27 8 says it is very good! =ood being awarded by 47 8 of the customer!
<inal 27 8 is not so satisfied so they said that the service is fair
+7cellent
A;B
(ery 4ood
A;B
4ood
&;B
9air
A;B
-oor
;B
+7cellent
(ery 4ood
4ood
9air
-oor
(igure : 1
.C&art s&$2ing Cust$mers $*era## e5,erien'e t$ a''essi6i#it- an3 res,$nses $% re,resentati*e
t&r$ug& E:mai#0
C#earan'e re,resentati*e a6i#it- t$ &e#, 'ust$mer issue;nee3
O,ti$ns
Res,$n3en
ts
Per'entage
"xcellent 55 56 8
Oery =ood 57 25 8
=ood 22 2) 8
<air 56 24 8
-oor 7 6 8
T$ta# 78
/88 9
*able & 3
Inter,retati$n:
P 56 8 of the customers responded that their overall experience to ability to help resolve issue or
need is "xcellent! Fext 25 8 says it is very good! =ood being awarded by 2) 8 of the customer! 24 8 is
somewhat satisfied so they said that the service is fair! 6 8 is not satisfied with the service!
+7cellent
$%B
(ery 4ood
A$B
4ood
ACB
9air
A&B
-oor
%B
+7cellent
(ery 4ood
4ood
9air
-oor
(igure : <
.C&art s&$2ing C#earan'e re,resentati*e a6i#it- t$ &e#, 'ust$mer issue;nee30
Cust$mers O*era## e5,erien'e 2it& C#earan'e )e,artment
O,ti$ns
Res,$n3en
ts
Per'entage
"xcellent 57 258
Oery =ood 55 568
=ood 54 5)8
<air 37 3)8
-oor 4 58
T$ta# 78
/88 9
*able & 4
Inter,retati$n:
25 8 of the customers responded that their overall experience with >D: clearance department
is "xcellent! Fext 56 8 says it is very good! =ood being awarded by 5) 8 of the customer! 3)8 is somewhat
satisfied so they said that the service is fair! 5 8 is not satisfied with the service!
+7cellent
A$B
(ery 4ood
$%B
4ood
$DB
9air
ECB
-oor
FB
+7cellent
(ery 4ood
4ood
9air
-oor
(igure : =
.C&art s&$2ing Cust$mers O*era## e5,erien'e 2it& C#earan'e )e,artment0
Cust$mers O*era## e5,erien'e 2it& S&i,ment )e#i*er- at 3$$rste,
O,ti$ns
Res,$n3en
ts
Per'entage
"xcellent 6 558
Oery =ood 25 358
=ood 47 578
<air 4 58
-oor 2 38
T$ta# 78
/88 9
*able & 5
Inter,retati$n:
55 8 of the customers responded that their overall experience with >D: clearance department
is "xcellent! Fext 35 8 says it is very good! =ood being awarded by 57 8 of the customer! 5 8 is somewhat
satisfied so they said that the service is fair! 3 8 is not satisfied with the service!
+7cellent
$$B
(ery 4ood
E$B
4ood
F;B
9air
FB
-oor
EB
+7cellent
(ery 4ood
4ood
9air
-oor
(igure : >
.C&art s&$2ing Cust$mers O*era## e5,erien'e 2it& S&i,ment )e#i*er- at 3$$rste,0
Cust$mer Satis%a'ti$n #e*e# 2it& ETA
O,ti$ns
Res,$n3en
ts
Per'entage
"xtremely 2atisfied 55 568
2atisfied 27 258
Feutral 22 2)8
>issatisfied 5) 238
"xtremely >issatisfied 5 68
T$ta# 78
/88 9
*able & 6
Inter,retati$n:
56 8 of the customers responded they are "xtremely 2atisfied with the service! Fext 25 8 they
are satisfied! Feutral is 22 8 of the customer! 23 8 is somewhat satisfied so they said that the service is fair! 3
8 is not satisfied with the service!
+7tremely .atisfied
$%B
.atisfied
AFB
6eutral
ACB
1issatisfied
AEB
+7tremely
1issatisfied
?B
+7tremely .atisfied
.atisfied
6eutral
1issatisfied
+7tremely 1issatisfied
(igure : +
.C&art s&$2ing Cust$mer Satis%a'ti$n #e*e# 2it& ETA0
Cust$mer Res,$nses $r Reas$ns %$r satis%a'ti$n 2it& )HL E5,ress I P*t Lt3
:ess transit time
/lear tracking
Advance furnishing of documents
Beeping customer fully informed
*imely clearance
=ood 2hipment delivery at doorstep
Inter,retati$n:
Oarious reasons are given by customers for satisfaction like less transit time# /lear tracking# Advance
furnishing of documents# keeping customer fully informed# *imely clearance# =ood 2hipment delivery at
doorstep etc!
LITERATURE O?ER?IE@
"HY A#D HO" CRM$
Why Do !ompanies "eed !#$ %
Companies need to establish strong customer relationships by ac&uiring in/depth
'nowledge of the customer3s re&uirements and e)pectations. %he idea is to use the
information to meet customer needs better, build loyalty, and increase efficiency
through call centers and other mar'eting activities. %he advent of the "nternet as a
medium has enabled a reduction in interaction costs among customers and companies.
%he need for personali-ed information, faster service, and value addition is forcing
both product and service companies to meet or e)ceed e)pectations levels. ,s a result,
companies consider CR# as an integrated effort that automates business, shrin's time
and distance across the supply chain to serve customers.
How Do !ompanies !hoose the #ight !#$ tool%
+very company has different legacy systems 4 computer/related infrastructure
installed at different points in time 4 and various levels of data integration, that ma'e
CR# tools difficult to define or apply. "deally, a CR# pac'age should cut costs and
encourage communication. ,s every business activity is different, it would need
different approaches to CR#. 0efore applying CR# to their business, organisations
need to chec' the compatibility of the software with their e)isting application.
T%e our R&s o' Mar(etin)
%here are four other concepts that must be ta'en just as seriously in order to achieve
long/term success. %hese represent a more current view of what is involved in
achieving mar'eting success. The four Rs of marketing retention
relations!ips referrals and recovery are of critical importance in the
establishment of a successful mar'eting program. Rather than focusing management3s
attention on the tools of mar'eting, this view re&uires that management understand
what will lead to long/term success and increased shareholder value.
0uilding Customer
@elations
hips
@etention
@eferral
s
@ecover
y
The Four Rs of Customer Relationship Management
Retention involves 'eeping those customers we want by meeting and e)ceeding
their needs. Customer retention is far less costly than customer ac&uisition. %he
focus must be on the voluntary retention of customers. Retention of customers
because they have no alternative or by loc'ing them into a reward program does
little to foster long/term relationships. "n fact, it does the opposite. 5uite often, as
soon as they can brea' free from a situation in which they feel trapped, these
customer ill ta'e their business elsewhere.
Relationships are li'ely to e)ist when customers voluntarily or even
enthusiastically do business with a firm for e)tended periods of time.
Relationship building means getting close to customers in an attempt to
understand and serve them better. Relationships, by their very nature, re&uire
trust, commitment, communication, and understanding. "n the everyday
mayhem of business life, it is easy to put off calling a long/time client or ma'ing
relationship building a priority. owever, it is necessary to place as much
importance on relationships with customers as we do on any other aspect of the
business.
Referrals address the word/of/mouth effect that results from customer
satisfaction 4 the powerful message that satisfied customers will convey to
others. When customers are completely satisfied with a service or product, they
are more li'ely to spread the word. *eople are more li'ely to try something new if
it is highly recommended by a trusted colleague, friend, or family member. 1ot
only will they come bac' to buy from us again, but they will bring their friends
and family members.
Recovery from poor customer service customer service must also be an important
component of managing customer relationships. #ista'es happen. %hat is a fact of
life and business.%he unpredictable will undo the best/laid plans and leave
customers and employees feeling frustrated. owever, mista'es can be turned into
opportunities to impress customers and win their loyalty. Recovering from a
mista'e can reaffirm a loyal customer3s commitment as well as demonstrate to a
new customer your pledge to customer service and satisfaction. "n order to do this,
employees must be empowered to deal with gaps in service and product &uality when
they occur. Customers become frustrated when they have to go through several layers
of management and wait for replies to tric'le bac' through the system before problems
are corrected.
N%t A$$ Cu,t%"er, Are 6a$uab$e
1ot all customers represent the same value to a firm. "n fact, companies serve a wide
range of customers, from those who produce very little revenue to those who produce a
great deal. 0ut many companies have no idea who their customers are or how valuable
they are to the business. %he prevailing wisdom today in business is that greater
attention should be paid to satisfying the most valuable customers. "f we are going to
protect customer relationship, then we should start with protecting those that have the
greatest potential value. 0ut many firms do not 'now where to begin in assessing
customer value.
%hat is why some companies are spending time and money to determine which
customers are costing more than they are worth. %echnology today allows many
companies to trac' sales and gain an improved understanding of their customers.
#a'ing the effort to assess the value of individual customers will pay off if the company
uses the information to determine how much to invest in building a relationship with a
customer or customer segment. %he logical outcome ma'ing such an assessment is that
there will be some customers on whom the company will lavish attention and whose
relationship will be protected almost at all cost, and other customers whose connection
to the firm is deemed much less valuable and who may even be encouraged to end their
relationship.
,t first glance, the idea of helping or encouraging customers to defect seems a rather
harsh step to ta'e, one that may even prove detrimental to a company6 however, it can
be a means to improved profitability for the company and higher &uality service for the
best customer. $hedding those customers who are genuinely not paying their way
ma'es considerable business sense. 7ne critical problem, however, is that most
businesses are ill/e&uipped to identify such customers. ,nd even if they could identify
these customers, the concern remains that these customers may spread negative word
of mouth after they have been 8dropped9 by the company.
#ost companies have customers who spend little but cost as much to serve as those
who bring in greater revenues. :or e)ample, in our research with financial institution,
the customers who represent the lowest value to a ban' in terms of their deposits and
fee/generating products are generally also the most costly to serve. %hey may also be
the type of customers who will continue to use the ban'3s branch networ', rather than
,%#s and other technology, and be most demanding of the time of employees.
Credit card holders also vary greatly in the e)tend to which they use their cards and
how they choose to pay their balances. $ome customers use their cards minimally each
month and pay their balance as soon as they receive the monthly statement. %hese
customers represent a small source of revenue for the credit card company since they
are light users and pay no interest. %he administrative costs associated with these
clients are the same as the costs to serve clients who are heavy users and carry over
balances, thereby earning interest for the ban'. %he profits reali-ed from each of these
two groups are different because of their usage rates and payment patters. What can
the credit card company do; %here are several alternatives, including increasing usage
rates light users and minimi-ing spending on these customers. ,s well, it may be
possible to increase usage further among heavier users, which will offset the costs
associated with light users. Cards issued with a fi)ed annual fee dater light users, who
will not benefit by having the card because of their low spending levels.
Consciously encouraging the defection of the unprofitable customers unprofitable is a
decision that re&uire information about customers and their spending patterns over
time. "t also re&uires a better understanding of the customer3s spending potential.
#any businesses will serve young clients for many years without reali-ing substantial
revenues. owever, these companies often attempt to retain those clients because of
their potential as long/term, profitable customers as they mature and their earnings
increase. ,n e)ample is the ban' that carriers a student3s small balances for years in
anticipation of the individual3s greater needs when he graduates and is employed.
0ecause of this potential, businesses cannot ma'e broad/based decisions to 8lose9 the
bottom )< of their customers. Rather, they must ma'e that decision based on
'nowledge about the customer3s past and present spending potential.
,ttempting to deliver an appropriate level of customer service to a customer3s
estimated value to the company is a ris'y strategy. "n the first place, unless the
company has very good information on the true value of the customer, the ris' is very
real that it could be wrong in labeling a customer 8low value9. "n such a situation, the
strategy adopted to 8serve9 the low/value customer may involve reducing service levels
to the point where the customer may decide to ta'e this or her business elsewhere, or
charging fees or higher prices to such customers so that they either become profitable
or are encouraged to leave. %he danger, of course is that the firm may offend customers
who are in fact more valuable than available data may indicate, or create a public
relations problem because customers voice publicly their views on how they are being
treated.
%ailoring levels of customer service to some estimate of customer value is a
challenge for a business and a dangerous strategy to implement. Clearly, a company
really does not want to maintain close relationships with all of its customers, but
deciding which ones to maintain and encourage and which ones to cut loose or ignore
is not an easy tas'. $uch a decision may be made for the wrong reasons and in the
absence of full information. %he concept of value for a customer is very important as
companies consider how to implement a customer relationship strategy.
"ustomer Relations!ip as Asset
What is the value of a solid customer relationship; ow can employee satisfaction
provide insight into future financial performance; #ore and more firms are as'ing
these &uestions as they attempt to measure non financial or soft assets and attribute
economic value to them. %his is happening at a time when intellectual capital, human
resources and training are more important to some companies than the value of their
tangible assets. :or e)ample, a small "% firm made up of capable, hardwor'ing, creative
people will want to evaluate the company based on its potential to deliver &uality
services and solutions to their clients rather than on the value of the hardware and
software used to create the solutions. %he services provided by the company will be
valued by its clients as well as the relationships forged through the interaction and
&uality wor' done. :or the most part, these solutions are the result of the people who
wor' on the problems rather than to the e&uipment and facilities used to produce
them. "n other words, it is the abilities and &uality of the people to produce results as
well as their willingness to provide high/&uality service and form relationships that will
differentiate thee companies. %o be fair to these types of businesses, more attention
should be paid to the measurement of intangible assets when valuing the firm.
When a company is sold or when it issues an "*7, the mar'etplace and investors
apparently have little difficulty placing a value on the firm3s intellectual capital and its
potential for future profits. What is re&uired to provide a better understanding of the
true value of the future potential of a company is more than financial measures. "n this
conte)t, a traditional accounting approach is inade&uate because it fails to ta'e into
account the 'inds of measures that are of critical importance to those who are involved
in mar'eting and who are focused on the long/term value of the customer relationships
that the company has built. "t is the customer who is responsible for the future earnings
of the company. "t is essential, therefore, that the company place a value on the long/
term stream of earnings produced as a result of customer relationships.
+vert =ummesson, *rofessor of #ar'eting at $toc'holm >niversity, spea's of
intellectual capital #ein$ divided into t%o components !uman capital &t!e
value of t!e employees %!o %or' for t!e firm and %!at t!ey #rin$ to t!e
company includin$ t!eir 'no%led$e motivation and net7%r+ %.
re$ati%n,!i&,8 an ,tru*tura$ *a&ita$ 9t!e e"bee +n%7$ege %. t!e .ir": t!e
re$ati%n,!i&, t!e *%"&an' !a, 7it! it, *u,t%"er, an %t!er,, it, *%r&%rate
*u$ture, ,',te",, *%ntra*t,, an bran,8. 'uman capital leaves the firm when an
employee resigns or retires structural capital goes on insofar as the company:s
relationships and brands have enduring valueG a value unfortunately that has rarely
been calculated.
The techni@ue is used to weight the factors between @uality and price resulting in
e@uilibrium line between @uality and price showing what the customer deems a fair
value.
PERCEI=ED FAIR =ALUE
*R"C+

Q1A:'*C
!ustomer &alue $ap
Within each competitive set, the company with the best value wins. %he slope of the
line is critical to CR# strategy. "f the organi-ation happens to be in a category that has
destroyed the importance of &uality and brand ?creating a steeply sloped perceived fair
value mar'et@, it is a commodity, a price game, and unless it changes the way its
targeted customers weigh the factors, nothing but the lowest price will win.
W!at(s )mportant?
, number of lessons learned from this chapter merit emphasis at this point. Calculating
or determining the long/term value of a customer is important for a firm. :irst, it
demonstrates to employees that the firm is focused on cultivating customer
relationships so as to ma)imi-e the long/term paybac' that flows from such
relationships. "t sends a very important message that, by engaging in behavior that in
any way puts customer relationships at ris', the employee is jeopardi-ing a very
important flow of revenue not only form the customer directly but from any business
that he or she might influence.
$econdly, determining the value of a customer may influence a decision regarding
those customers with whom the company wishes to establish and maintain
relationships. "t has the potential, once a concerted effort is made to place a value on a
customer relationship, to identify those customers where long/term potential is very
good and those where the most concerted efforts will relationships in the customers3
eyes. 7ther authors suggests that where customers do not really want to get very close
to a company, the company should e)amine what value or benefits the customers
perceive they are getting now or could potentially get from such a closer association.
%he conclusion is often that the company has not done a very good job of
demonstrating that additional value can be created for the customer by 8getting closer.9
%he challenge is to create more Arelational benefits,9 as customers are generally already
aware of the functional and process benefits that the company can offer. "n fact, the
fact that these customers are not interested in deepening the relationship suggests that
they are aware of and satisfied with the benefits created at this more functional level.
%he challenge to the company is to raise the bar and to ma'e the softer, relational
benefits more relevant for the customer.
Let3s reconsider for a moment the implications of implementing technology in an effort
to add value for consumers. Customers generally appreciate the convenience value that
is created by the introduction of many new technologies. 0ut there is an important
shortcoming. by allowing the customer to deal with us entirely through technology, we
are removing human contact, the opportunity for conversation and the opportunity to
8read9 a situation.
Pyramid Model:
%he top/down pyramid is a model for planning and e)ecuting a CR# initiative.%he
underlying support for the pyramid is 8Customers,9 a constant reminder that
profitable customers are the core of a company3s e)istence. "t ensures that companies
achieve corporate revenue and profit goals by aligning the entire organi-ation around
customers to deliver real business value.
%hose that count their CR# investments a success have learned that it3s essential to
view CR# as an enterprise/wide initiative that re&uires e)ecutive/level involvement
and strategic alignment from the beginning. $econdly, this model puts technology in
its proper place as an 8enabling9 platform. %he CR# technology implementation
becomes a natural e)tension of the company3s vision and strategic direction and
supports the organi-ational structure and business processes.
"ustomer *alue +ana$ement &"*+,- .!e /rivin$ 0orce 1e!ind "R+
Success
%he aim of all businesses should be to create a value proposition for customers that are
superior to and more profitable than the competition. %he value proposition can be
specifically described in terms of.
%he target customers6
%he benefits offered to them and6
%he price charged relative to the competition.
%he value creation process is a critical component of CR# as it translates business and
customer strategies into specific statements of what value is to be delivered to
customers and, conse&uently, what value is to be delivered to the supplier
organi-ation. "t consists of three 'ey elements.
Betermining what value the company can provide to its customers6
Betermining the value the organi-ation receives from its customers
0y successfully managing the value e)change, ma)imi-ing the lifetime value of
desirable customer segments.
CRM: ETA
+%, has transformed itself into a technology intensive services group in
the last decade. %o achieve its long/term goal of being in a position,
+%, has ta'en a series of initiatives. ,s part of the plans, it is
implementing various projects to establish world/class CR# practices,
which would provide an integrated view of its customers to everyone in
the organi-ation.
CR# at +%, involves increased communication between its customers and
prospects, as well as within the group itself. %he underlying idea is to enhance very
instance of contact with the customer. +%, believes that a true customer/centric
relationship can only be accomplished by considering the uni&ue perspectives of every
single customer of the organi-ation.
THE CRM ROADMAP
"t should allow +%, to engage in customer service by trac'ing complete customer
life/cycle history. %o begin with, it will automate process/flow trac'ing in the product
sales process, and be able to generate customi-ed reports and promote cross selling.
:rom an architecture perspective, the enterprise/wide CR# solution should seamlessly,
integrate non/transactional related customer information housed in the :ront/7ffice
with the transactional information housed in the 0ac' 7ffice. Creating the enterprise
CR# strategies re&uired the combination of nine distinct steps as shown below.
.TR)T+4H "6T+33"4+6C+
-R5C+.. )2T5M)T"56
5R4)6"I)T"56 1)T)
T+C'65354H
Source : "Creating the Enterprise CRM strategy" by Aslam Handy, Chief Technology fficer,
!ialogos"

0y combing these nine steps can one really start listening to the customers, and
understand what they are saying, may be even in real time. 7nce that is achieved,
profits begin to follow as optimi-ation techni&ues are applied. 7nly then will the two
crucial goals for a successful business/case driven project be achieved, vi-.
1. E..e*tive *!ange "anage"ent
3. Te*!n%$%g';enab$e ev%$uti%n.
+%, recogni-es that customers ma'e buying decisions based on more than just
price.... more than just product. "ustomers ma'e #uyin$ decisions #ased on
t!eir overarc!in$ experience t!at includes product and price2 and price2
and sales service reco$nition and support. "f +%, can get all of those factors
right/consistently/we will be rewarded with ongoing customer loyalty and value.
IMPLEMENTING CRM
, very detailed and comprehensive CR# ,ction *lan was developed based on the
understanding that CR# will re&uire an enterprise %ide transformation.
%he CR# 0usiness %ransformation #ap below shows the various aspects of that
change. %here are five inter/related areas. %hese include.
2. 0usiness :ocus
C. 7rgani-ational $tructure
D. 0usiness #etrics
E. #ar'eting :ocus %echnology.
%he 'ey to building the CR# action plan was in understanding where the
organi-ation stood relative to each of the five aspects of change. "nterviews with 'ey
individuals throughout the organi-ation helped identify different initiatives that have
been launched, all focused on CR#. While all of the these initiatives may have merit,
failure, to address the total business transformation re&uirements can lead to very
short/lived success.
.HE "R+ 13S)4ESS "Y"5E
a, 3nderstand and /ifferentiate
+%, =roupFs customer need to see that the company is differentiating service and
communications based both on what theyFve leaned independently and on what the
customer has told them. ,t the same time, differentiation should be based on the value
customers are e)pected to deliver.
#, /evelop 6 "ustomi7e
"n the product/oriented world of yesterday, companies developed products and
services and e)pected customers to buy them. "n a customer/focused world, product
and channel development has to follow the customerFs lead. 7rgani-ations are
increasingly developing products and services, and even new channels based on
customer needs and service.
+%, believes that the e)tent of customi-ation should be based on the potential value
delivered by the customer segment.
c, )nteract 6 /eliver
+%, is strongly of the opinion that value is not just based on the price of the
product or the discounts offered. "n fact, customer perceptions of value are based on a
number of factors including the &uality of products and services, convenience, speed,
ease of use, responsiveness and service e)cellence.
d, Ac8uire 6 Retain
$uccessful customer retention basically involves getting it GrightG on an ongoing
basis. ,nd that is e)actly what +%, aims to achieve out of its CR# initiatives.
$uccessful customer retention is based very simply on the organi-ationFs ability to
constantly deliver on three principles .
#aintain interaction6 never stop listening.
Continue to deliver on the customerFs definition of value.
Remember that customers change as they move through differing life stages6 be
alert for the changes and be prepared to modify the service and value proposition
as they change.
,nd so the cycle continues.... ,s a cycle, the stages are interdependent and
continuous. ,s one moves from one stage to the ne)t +%, hopes to gains insight
and understanding that enhance the subse&uent efforts.
"3S.O+ER 1ASE-
"t is not possible to have a relationship with someone you cannot identify, so it
is absolutely critical to F'nowF your customers.
%his database is a repository for the information needed to have a mutually rewarding
relationship with customers. :or purposes of building such a relationship, it includes
these D categories of information.
0asic information such as customer name and address
Relevant information about that individual such as age and income level, family
status and buying intention. %his is dynamic and subject to change.
Bata captured whenever the customer ma'es a transaction.
+very customer purchase presents you with an invaluable opportunity to enhance
your understanding of how your customers li'e to do business.

"ustomer +edia
%he strongest customer #edia 4 these D elements are the heart and soul of deep H
lasting customer bond.
%o create a relationship means one has to .
Inow the customers li'es and disli'es 4 his psyche (database!
Ieep up a continuous learning process about the customer (dialogue!
ave some way of communicating directly with them (direct media!
WHA. )S .HE RES35.?
, successful Gloyalty *rogrammeGJ $uccess of any customer relationship
programme depends on the support of a database, use of direct media, such as
customi-ed direct mail, newsletters, monthly statements and a solid reward system
that builds continuously. We could define this as 4 ma'ing each purchase a customer
ma'es, increase the value of the ne)t purchase to that customer. "n return the
company profits by increased sales to such customers who also act as brand
ambassadors.
ETA E<&erien*e
i. CR# is not a technology initiative. %echnology is needed in order to implement
CR# 4 particularly the customi-ation part 4 but technology is not the driver of
CR#, or the solution to successful CR# implementation.
ii. CR# is not e)clusively a mar'eting initiative. "t results in more effective, data
driven mar'eting efforts.
iii. CR# is not e)clusively a sales initiative. "t is just one functional area that can
benefit from CR#.
iv! CR# is not e)clusively a service initiative. "t is again a functional area only.
%hus it is essentially an enterprise 9 %ide initiative.
The Broad View (Readiness of the Company
0efore embar'ing on a CR# program, it is imperative to search your (here, refers
to the company! souls. ,n e)ercise needs to be administered to a number of people at
different levels and in different areas of your company. ,lso a representative group of
customers may be involved as there is enormous value in hearing what your customers
say about your readiness.
$ubjective answers should be sought for the following &uestions.
5.2 ow well can your company identify its end user customers;
5.C Can your company differentiate its customers based on their value to you and
their needs from you;
5.D ow well do you interact with your customers;
5.E ow well does your company customi-e its products and services based on what
it 'nows about its customers;
,nswers to the &uestions will provide your locus stand vis/K/vis your intention and
preparedness of a CR# program.
"t is also e)tremely essential to understand the various gaps that need to be
plugged. $o the ne)t logical step is.
The !ne"to"!ne Gap Too#:
%his e)ercise to be administered to employees at various levels and functions, is
designed to capture a robust analysis of your company. "t should also be given to a
representative group of customers, with the language tailored opportunity, in order to
e)pose the gap between internal and e)ternal perceptions.
A) Process
Boes the company have established &uality assurance processes;
,re the companyFs business process customer centric;
B) Technology
Boes the company ta'e customersF needs into consideration when selecting and
implementing technology;
Boes the company provide its employees with technology that enables them to
help customers;
C) Knowledge Strategy:
Boes the company maintain a strategy for collecting and using information about
customers;
ow effectively does the company combine information on customers with its
e)periences to generate 'nowledge about its customers;
D) Partnerships
ow does the company select its partners;
Boes the company understand the relationships among its customers and
partners;
E) Customer Relationships
ow effectively does the company differentiate its customers;
What steps has the company ta'en to improve the total e)perience of its
customers;
ow effectively does the company measure and react to customersF e)pectations;
ow effectively does the company understand and anticipate customerFs
behaviour;
) Employee !anagement
%o what degree are employees empowered to ma'e decisions in favour of the
customer;
as the company formally lin'ed employeesF rewards with customer 4 centric
behaviour;
) Competiti"e Strategy
%o what e)tent does the company understand how customers effect the
organisation;
ow much Finfluence do customersF needs have on the companyFs products and
services;
ow effectively does the company build individuali-ed mar'eting programs;
ow aware is the company of other organi-ations approaches to building
relationships;
,fter a thorough analysis and understanding the organi-ationFs internal dynamics,
we can come to the stage when the implementation of a CR# solution has to be carried
out.
Integrated Customer Relationship Management:
%he framewor' of the "CR# practice defines Competitive Customer Relationship
based on customers3 needs under mar'et competitions.
%he chart also demonstrates its integrated process of mar'eting strategy analysis. it
starts from mar'etplace to understand the Competitive Customer Relationship
structure and maps such relationship structure into a company3s database (the Loom
"n process!. "t then develops mar'eting strategies to enhance a company3s Competitive
Customer Relationship based on the data analysis from the database (the Loom 7ut
process!.

:ig. "ntegrated Customer Relationship #anagement
"CR# is about integration. the integration of data, the integration of mar'eting
functions and the integration of database and mar'etplace. %hrough the integrated
process, "CR# overcomes the serious limitations in the current CR# practice.
2! "dentify Competitive Customer Relationship
what is competitive customer relationship
What drives competitive customer relationship
C! #easure Competitive Customer Relationship
how to measure Competitive Customer Relationship
D! "mprove Competitive Customer Relationship
/with which customers to build Relationship
/how to "mprove Competitive Customer Relationship
how to develop effective customer relationship management strategies
"CR# is the first theoretical framewor' for effective customer relationship
management. "t provides practical answers to the si) critical &uestions about customer
relationship management. "t also provides a standard mar'eting process for
companies to manage their customer relationship effectively. "CR# is designed to
manage Competitive Customer Relationship.
0elow is a table comparison about how "CR# handles the si) critical &uestions about
customer relationship management differently from the current CR# practice.

Comparisons between ICRM and CRM
PROPOSED MODEL FOR CRM
%he #odel has E steps which may be followed by the company to introduce CR#.
%hese steps are to be implemented in strict order.
Ste& 1 2 Ienti.'ing Y%ur Cu,t%"er,
%he activities involved are .
Collect and enter more customer names into the e)isting database.
Collect additional information about your customers.
Merify and update customer data and delete outdated
Step 2 - /ifferentiatin$ your "ustomers
,ctivity involved are .
"dentify your organisationFs top customers.
Betermine which customers cost your organisation money.
:ind higher value customers who have complained about your product or service
more than once in the last year.
Loo' for last yearFs large customers who have ordered half as much or less this
year.
:ind customers who buy only one or two products from your company but a lot
from other business.
Ran' customers into ,, 0 and C categories, roughly based on their value to the
company.
Step : - )nteractin$ %it! Your "ustomer
,ctivities involved are .
Call your own company and as' &uestions6 see how hard it is to get through and
get answers.
Call your competitions to compare their customer service with yours.
"nitiate more dialogue with valuable customers
"mprove complaint handling
>se technology to ma'e doing business with the company easier.
Step ; - "ustomi7in$ Your Enterprise<s 1e!aviour
,ctivities involved are .
Customi-ed paperwor' to save your customers time and your company money.
*ersonali-e your direct mail
:ill out forms for your customers
,s' customers how, and how often, they want to hear from you.
:ind out what your customers want
,s' your top ten customers what you can do differently to improve your product
or service
"nvolve top management in customer relations.
"f all these activities are carried out with perfection, it may be assumed that the
company shall have an effective and robust CR# program.
"O4"53S)O4S-
%he domain of CR# e)tends into many areas of mar'eting and strategic
decisions. "ts recent prominence is facilitated by the convergence of several other
paradigms of mar'eting and by corporate initiatives that are developed around the
theme of cooperation and collaboration of organi-ation units and its stoc'holders,
including customers. CR# refers to a conceptually broad phenomenon of business
activity6 if the phenomenon of cooperation and collaboration with customers become
the dominant paradigm of mar'eting practice and research, CR# has the potential to
emerge as the predominant perspective of mar'eting. :rom a corporate
implementation point of view, CR# should not be misunderstood to simply mean a
software solutions implementation project. 0uilding customer relationship is a
fundamental business of every enterprise and it re&uires a holistic strategy and process
to ma'e it successful.
RECOMMENDATIONS2
0ased on the thorough analysis of the findings in the conclusion section, we are in a
position to propose the recommendations. %he recommendations are in a form of a
list of activities and a series of exercise designed for e)ecutives, managers, and
employees at all levels in the company, as well as for the customers and channel
partners. Reviewing the list and wor'ing through the e)ercises will help the company
to determine what type of program it can implement immediately, what it needs to do
to position it for a large/scale initiative, and how it should prioritise the plans and
activities.

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