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Name
: AKASH GOEL
PRN#
16030241005
Name
: GEETIKA PANT
PRN#
16030241018
Name
: GUNJAN SHARMA
PRN#
16030241019
Name
: HARSHGIRI GOSWAMI
PRN#
16030241020
Division
Batch
:A
: 2016 - 18
Subject/Code
Semester
Date
:I
: Suneel K Prasad
CRM IN RETAIL
Index
Sr No.
1.
Chapter
Introduction
2.
Objective
3.
4.
5.
6.
7.
Process Architecture
8.
Process Design
9.
10.
Bibliography
CRM IN RETAIL
1. Introduction:
Customer Relationship Management (CRM) is a managerial philosophy that seeks to build
long term relationships with customers. A company may produce very high quality goods but
it wont be successful if it fails to manage or satisfy its customers. According to a study in
Harvard, an exceptionally satisfied customer is 6 times more likely to buy again as one who
is merely satisfied and only 5% increase in customer loyalty can boost profit from 25% to
85%. This CRM is a very significant part of business which helps in achieving customer
satisfaction and loyalty.
2. Objective:
Our main motive of the study is to learn about how a typical retailer like Big Bazaar
processes work and in the process how the concepts of BPM are mapped and applied in it. In
the project we have first studied the CRM architecture in Big Bazaar. In the various
processes we have selectively capture the As-is version and then suggested an improved
To-be version of the same process. For modelling we have used tools like Signavio and
drawn the diagram through it.
Big Bazaar is one of the largest retail chain under Future Group.
It was headed by Kishore Biyani in 2001, with its headquarters at Mumbai.
It is a subsidiary of Pantaloons Retails Ltd and it follows the business model of US
based retailer Wal-Mart.
It has current employee strength of about 36000 and has 214 divisions.
Big Bazaar is a 13-year-old hypermarket chain with more than 100 stores all over the
country.
It is an amalgamation of Indian bazaars i.e a combination of a supermarket and a
departmental store which provides a touch of modern and retail facilities.
It offers a wide mix of products right from apparel to general merchandise like
plastics, utensils, cookery, home furniture, cutlery, sports goods, car accessories,
music, books, computer accessories and many more.
It is a destination where you get all the products available at prices lower than the
MRP, thus setting a new level of standard in price, convenience, and quality.
Hafte ka sabse sasta din was introduced by Big Bazaar, wherein extra and special
discounts were offered to the buyers on every Wednesday of the week to attract
potential buyers into their store.
Big Bazaar also has a separate section for fashion conscious buyers called Fbb. This
marks the uniqueness of Big Bazaar as compared to other top notch traditional
supermarkets which mainly revolve around food, groceries and general merchandise.
CRM IN RETAIL
Their basic attraction associated with reasonable prices is their Unique Selling Price.
It is a massive hit with the lower middle class and middle class people as the major
client base.
Loyalty Payback Card: Any customer can avail this loyalty card for free and can
earn 1 reward point for every Rs. 100 purchased. Customer can then get a voucher for
his reward points accumulated from the Customer Service Desk in the store and get
any item worth that voucher for free.
CRM IN RETAIL
Everyday Discount: Big bazaar provides every day discount on each and every
product to customer. Every day price of product does change. It also introduce, if
customer buy more than Rs.999 at one time, customer will get Sugar, Iron box etc.
based on its purchase.
Pay Back of Car Parking Fee: For any amount of purchase done at Big Bazaar
at selected locations, customers can produce the car parking fee receipt and get the
amount paid by the store itself.
Promotional Deals and Offers via Messages: Special offers and promotional
messages sent to customers on their registered mobile numbers on special occasions
like festivals, birthdays, anniversary etc.
CRM IN RETAIL
Strategy
Description
Benefits
Reward Point
Specific Offers
Increases Customer
Satisfaction, Increases
Return on relationships
& Improves Retention
Rate Increases number
of customers, Increases
Competitive advantage
& Improves Revenue per
customer
Services
Increases Customer
Satisfaction, Increases
Return on relationships
& Increases number of
customers.
Recommendation
s
CRM IN RETAIL
7. Process Architecture
In our project we are using the hierarchical process framework to identify the different
process at CRM. This process enables us to capture the business processes and their scope. It
also serves as a framework for defining priorities and scope of subsequent BPM phases.
Operational CRM
Operational CRM means supporting the "front office" business processes, which include
customer contact (sales, marketing and service). Operational CRM provides the following
benefits:
CRM IN RETAIL
CRM IN RETAIL
Level A
In this level all the high level Retail processes are identified.
Level B
The CRM process is selected and group of related business functions and standard end-toend processes are identified and defined.
CRM IN RETAIL
Level C
In this level we have decomposed the processes into core processes that combine together to
deliver Service Streams and other end-to-end processes.
Customer
Database
Contact and
personal
Information
Data mining
History of
purchases
Market Basket
Analysis
Customer
Preferences
Identifying markets
segments
Identifying best
customers
Developing
CRM
Programmes
Programmes for
customer retention
Providing
incentives
Special
customer
services
Add on
selling
Customer Pyramids
Cross
selling
RFM Analysis
Implementing CRM
Programmes
Collaborative
Efforts
Effective Resource
planning
Clearly defined
Objective
Managing change
CRM IN RETAIL
8. Process Design
CRM IN RETAIL
To Be Process:
Data Mining- This technique is used by the company to understand the customer
buying pattern and helps them for decision making.
Market basket analysis- This is a specific type of data analysis that focuses on
composition of basket or products purchased by a customer during a shopping
occasion.
CRM IN RETAIL
Identifying market segments- It helps retailer to adopt specific policy for satisfying
group of customer needs who purchase similar merchandize.
Identifying best Customers- Using information in the customer database retailers can
develop a score or numbers indicating how valuable they are to them. Best customers
are determined byLifetime value- It is the expected contribution from the customer to the retailers
profits over his or her entire relationship with retailer.
Customer pyramid-A commonly used segmentation of customer is using pyramid
Approach. The categorisation of Payback card in Big BazarPlatinum
Gold
Silver
RFM (Recency, Frequency, and Monetary) Analysis- Recency refers how recent a
purchase is made. Frequency means how frequent customer purchases and monetary
refers how much they have bought.
4) After the completion of the CRM process the available offers and discounts are displayed.
If no offers are available then the customer has an option to earn or redeem the payback
points and the invoice is generated otherwise the customer is intimated.
5) The customer has now two choices either to avail the offer or reject the offer. If he rejects
then he has an option to earn or redeem the payback points and the invoice is generated
otherwise the available offer is applied, the bill is updated and the customer can either earn or
redeem the payback points and the invoice is generated.
6) The billing process is completed.
CRM IN RETAIL
Learning in the subject Vs Finding in the project:
CRM IN RETAIL
CRM IN RETAIL