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Research Journal of Management
Vol. 6(2), 8-11, February (2017)
International Science Community Association
A study of customer relationship
2National Institute of Technical
AvailableReceived 7th October
Abstract
In Indian economy, Retail Sector is playing a significant role in growth of industries. The major contribution of retail sect
is towards employment generation and they are the
privatization is taking place across the globe. Unorganized retail sectors are facing great challenges to survive and sustain
in the market and even the organized retail in India is also fac
consists of different income groups from various segments like rural, semi
focuses upon the practices implemented by retail outlets. Retail outlets
customer retention management. Research shows that as customer preferences and choices are dynamic and changing
frequently. It helps the sector to understand the customer needs and how frequently they vis
retailers use the CRM software packages for understanding the customer needs and purchasing behavior. Through this, a
company can make a clear prediction of customer’s future outcomes.
Keywords: Retail outlets, CRM, Organized R
Introduction
In India, after agriculture sector retailing is providing 15 % to
20 % of employability and it contributes significantly in the
GDP. Organized retail sector has growth and high potential
creating new jobs. In India, retail sector has a significant role in
creating direct interaction with customers in the competitive
world through proper maintains of products, product display,
accessibility and assortment. According to the report of CII
Mckinsey retail sector contribute 10% of the GDP and near
about of 6% of total employment opportunities including
organized and unorganized labor work force
environment organized retail stores are characterized by large
formatted stores.
Retail sector is the backbone of India and it is called as “Nation
of Shopkeepers” with the 15 million outlets2
retail sector contribute 2% of the total retail sector and it is
increasing by about 5% since 2010. Indian economy contribut
11%-12% in GDP from retail sector3. The organized retail
market share was 8% in 2012.
CRM in Retailing: According to Levy and Weitz
Management is “A business Philosophy and set of strategies,
programs and systems that focuses on identifying a
loyalty with a retailer’s profitable customers”. Retailers can
generate their profit by creating a sound and healthy
relationships with customers4. The main objective is to maintain
the loyalty of the customers.
Management Sciences _____________________________________________
(2017)
Association
elationship management in retail outlets at Bhopal
India Monika Sharma
1* and Nishith Dubey
2
1Barkatullah University, Bhopal, India
National Institute of Technical Teacher Training and Research Bhopal, India
Available online at: www.isca.in, www.isca.me October 2016, revised 1st February 2017, accepted 4th February 2017
In Indian economy, Retail Sector is playing a significant role in growth of industries. The major contribution of retail sect
is towards employment generation and they are the largest creators of employment opportunities as globalization and
privatization is taking place across the globe. Unorganized retail sectors are facing great challenges to survive and sustain
in the market and even the organized retail in India is also facing a tough competition from all round the world. Bhopal
consists of different income groups from various segments like rural, semi-rural, urban, upper middle and lower. This study
focuses upon the practices implemented by retail outlets. Retail outlets are implementing CRM practices for establishing the
customer retention management. Research shows that as customer preferences and choices are dynamic and changing
frequently. It helps the sector to understand the customer needs and how frequently they visit the retail outlets. Many
retailers use the CRM software packages for understanding the customer needs and purchasing behavior. Through this, a
company can make a clear prediction of customer’s future outcomes.
Retail outlets, CRM, Organized Retail and Customer Satisfaction.
In India, after agriculture sector retailing is providing 15 % to
20 % of employability and it contributes significantly in the
GDP. Organized retail sector has growth and high potential in
creating new jobs. In India, retail sector has a significant role in
creating direct interaction with customers in the competitive
world through proper maintains of products, product display,
accessibility and assortment. According to the report of CII-
Mckinsey retail sector contribute 10% of the GDP and near
about of 6% of total employment opportunities including
organized and unorganized labor work force1. In competitive
environment organized retail stores are characterized by large
Retail sector is the backbone of India and it is called as “Nation 2. Indian organized
retail sector contribute 2% of the total retail sector and it is
increasing by about 5% since 2010. Indian economy contributes
. The organized retail
According to Levy and Weitz Retailing
Management is “A business Philosophy and set of strategies,
programs and systems that focuses on identifying and building
loyalty with a retailer’s profitable customers”. Retailers can
generate their profit by creating a sound and healthy
. The main objective is to maintain
Source: Retail & Export News,
Figure-1: Customer Relationship Management Cycles
Customer relationship management is a process to establish the
customer behavior and purchase pattern. Many organized
retailers have been targeting to increase their market share
through various services and promotional activities. It helps the
retailer for increasing their sales revenue and profits. The
sequential activities are shown in Fig
four major components for iterative process of customers like
database, programs, strategies and target customers.
Major Retail Outlets in Bhopal:
faster rate in Bhopal city. There are different segments of
branded and organized outlets targeting the various income
groups of consumers from different segments like
____________ISSN 2319–1171
Res. J. Management Sci.
8
utlets at Bhopal,
In Indian economy, Retail Sector is playing a significant role in growth of industries. The major contribution of retail sector
largest creators of employment opportunities as globalization and
privatization is taking place across the globe. Unorganized retail sectors are facing great challenges to survive and sustain
ing a tough competition from all round the world. Bhopal
rural, urban, upper middle and lower. This study
are implementing CRM practices for establishing the
customer retention management. Research shows that as customer preferences and choices are dynamic and changing
it the retail outlets. Many
retailers use the CRM software packages for understanding the customer needs and purchasing behavior. Through this, a
Source: Retail & Export News, September 5, 2010
Customer Relationship Management Cycles
Customer relationship management is a process to establish the
customer behavior and purchase pattern. Many organized
retailers have been targeting to increase their market share
various services and promotional activities. It helps the
retailer for increasing their sales revenue and profits. The
sequential activities are shown in Figure-1 which includes the
four major components for iterative process of customers like
rograms, strategies and target customers.
: Retail sector is growing at a
faster rate in Bhopal city. There are different segments of
branded and organized outlets targeting the various income
nt segments like rural, semi-
Research Journal of Management Sciences _______________________
Vol. 6(2), 8-11, February (2017)
International Science Community Association
rural urban, upper, middle and lower income segments etc. The
detail of organized retail store in Bhopal city is as follows
Retail Outlets
Clothing and
Apparels
Shoppers Stop, Pantaloon , Westside,
Levis, Big Life, Vishal Mega Mart, V
mart, Big Baazar, Manyawar
Footwear Nike, Lotto, Puma, Catwalk, Liberty,
Adidas, Bata, Woodland, Reebok, etc
Food and
Grocery
Hypercity, Kabuliwala, Apoorti,
Priyadarshaini, V- Mart, Vishal Mega
Mart, Reliance Fresh etc
Watch &
Jewellery
World of Titan, Tommy Hilfigure,
Shopper’s Stop, Paris, Tanishq, Alankar,
Agarwal Jewelers, Orra, Punjab Jewelers,
PC Jewelers etc
Durables Lotus, Sony world, Tarang , LG, Reliance
digital, Hypercity , etc
Objectives of the Study: The research was carried out with
following objectives: i. Analyze CRM practices followed by the
retail stores. ii. Evaluate the various CRM techniques adopted
by organized retail firms and stores. iii. Examine the benefits of
CRM to the retailers and customers.
Review of Literature: Parikh analyzed that organized retail
sector develops in India; retail outlets will have to emerge the
quality of their services extensively in order to struggle
effectively in the international market place.
It is, thus very essential to know how customers appraise service
quality and to measure and improve it5. Jain and Jain studied
CRM practices of hotels in central India to measure the
effectiveness against various factors like: recognition, customer
orientation, reliability, relationship orientation and gestures
Raab in Customer relationship management: a global
perspective proposed a research work for the comparison of
customer relationship management principles exercised by other
multinational retailers in a global marketplace
Methodology
The study on CRM in retail outlets was conducted through
structured questionnaire and interviews methods for collecting
data. The sample size used was 10 organized retail outlets.
Results and discussion
Income Group of Customer’s of Retail Outlets in Bhopal: Spread of retail stores customers by income group at Bhopal is
as Very high income group 10 percent, High income 32 percent,
Middle income group 43 percent and Low income group 15
percent. Thus retail stores should concentrate more on Middle
income group and High income group as they comprise of 75
percent of all customers.
_________________________________________________________
Association
rural urban, upper, middle and lower income segments etc. The
detail of organized retail store in Bhopal city is as follows --
Shoppers Stop, Pantaloon , Westside,
Mega Mart, V –
mart, Big Baazar, Manyawar etc
Nike, Lotto, Puma, Catwalk, Liberty,
Adidas, Bata, Woodland, Reebok, etc
Hypercity, Kabuliwala, Apoorti,
Mart, Vishal Mega
World of Titan, Tommy Hilfigure,
Shopper’s Stop, Paris, Tanishq, Alankar,
Agarwal Jewelers, Orra, Punjab Jewelers,
Lotus, Sony world, Tarang , LG, Reliance
The research was carried out with
Analyze CRM practices followed by the
retail stores. ii. Evaluate the various CRM techniques adopted
by organized retail firms and stores. iii. Examine the benefits of
Parikh analyzed that organized retail
sector develops in India; retail outlets will have to emerge the
quality of their services extensively in order to struggle
y essential to know how customers appraise service
. Jain and Jain studied
CRM practices of hotels in central India to measure the
effectiveness against various factors like: recognition, customer
ity, relationship orientation and gestures6.
Raab in Customer relationship management: a global
perspective proposed a research work for the comparison of
customer relationship management principles exercised by other
rketplace7.
The study on CRM in retail outlets was conducted through
interviews methods for collecting
data. The sample size used was 10 organized retail outlets.
Income Group of Customer’s of Retail Outlets in Bhopal: Spread of retail stores customers by income group at Bhopal is
as Very high income group 10 percent, High income 32 percent,
Middle income group 43 percent and Low income group 15
stores should concentrate more on Middle
income group and High income group as they comprise of 75
Figure-2: Percentage Target Income Groups
Retail Stores Collecting Customer’s Database:
shows effective working of retailers. Sixty percent of the
organized outlets collect customer information for their
database. Customer database helps the retailers to identify
purchases of customers. For implementation of CRM the other
forty percent should also start building their database.
Figure: 3 Percentages of retail outlets
Tools /Techniques Used for CRM:
retailers at Bhopal deploy E–services. Knowledge management
is used by 30 percent which is most important for CRM
implementation. Only 10 percent of the retailers use multi
channel management. Thus nearly seventy percent of the
retailers need to use knowledge management for effective
implementation of CRM.
Figure: 4 Tools/Techniques used For CRM
10%
43%
15%
Very High High
0%
10%
10%
30%
E-Commerce
Self Services
Knowledge Management
40%
YES NO
________________________ISSN 2319–1171
Res. J. Management Sci.
9
Percentage Target Income Groups
Retail Stores Collecting Customer’s Database: This data
shows effective working of retailers. Sixty percent of the
organized outlets collect customer information for their
database. Customer database helps the retailers to identify
purchases of customers. For implementation of CRM the other
ent should also start building their database.
utlets collecting customer data.
Tools /Techniques Used for CRM: 50 percent of the organized
services. Knowledge management
30 percent which is most important for CRM
implementation. Only 10 percent of the retailers use multi
channel management. Thus nearly seventy percent of the
retailers need to use knowledge management for effective
Tools/Techniques used For CRM
10%
32%
Medium Low
0%
50%
E-services
Multichannel Management
60%
NO
Research Journal of Management Sciences _______________________
Vol. 6(2), 8-11, February (2017)
International Science Community Association
Various Time Frame Schemes Offered by Retailers:
one percent use special offer schemes like free gifts, coupons
etc., to attract customers. This is done twice in a year (clearness
sale July & January). Free product sampling is offered by
nineteen percent, Gifts by twelve percent.
Figure: 5 Special Schemes Offer
Frequency of Tracking Customers Satisfaction:
percent of retailers interviewed believed that the frequency
tracking customer satisfaction is done daily whereas some
retailers in organized retail do it monthly and very few do it
Quarterly.
Figure-6: Tracking Customers Satisfaction
Methods of Tracking Customer Satisfaction:
most used method of tracking the customers satisfaction is
follow up through telephone. Retailers also track customers by
making them fill questionnaire, by keeping suggestion boxes
and other innovative methods.
31%
19%12%
13%
15%
10%
Heavy discount Free products
Gifts Flowers and cards
Others All
10%
10%
0%
10%
20%
Questionnaire sent through mail Follow -up telephone calls
Sending SMS Outside firm Hired to track satisfaction
Suggestion boxes Others
_________________________________________________________
Association
Various Time Frame Schemes Offered by Retailers: Thirty
one percent use special offer schemes like free gifts, coupons
etc., to attract customers. This is done twice in a year (clearness
January). Free product sampling is offered by
Special Schemes Offer
Frequency of Tracking Customers Satisfaction: About 60
percent of retailers interviewed believed that the frequency of
tracking customer satisfaction is done daily whereas some
retailers in organized retail do it monthly and very few do it
Customers Satisfaction
Methods of Tracking Customer Satisfaction: It is evident that
most used method of tracking the customers satisfaction is
follow up through telephone. Retailers also track customers by
making them fill questionnaire, by keeping suggestion boxes
Figure-7: Methods of Tracking Customer Satisfaction.
Data Required for CRM Implementation:
views of respondents regarding data required for the CRM
implementation in the retail outlets main source was interaction
with customers, 55 percent. The customer’s record and customer
experience are the next two sources of data for CRM
implementation.
Figure-8: Data required for CRM
Methods of Collecting Customer’s Data:
stores collect the information through entry form feedba
forms thirty percent through feedback forms and twenty eight
retailer uses bill records.
Benefits through CRM: About thirty one percent of the total
retailer believed that most important benefit of CRM to the
retailers is that there is an increase in
followed by repeat purchase and increase in profit. The other
benefits are that new customers are attracted and enhanced
service quality. Their perceptions may not be correct as CRM
largely benefits in regards to customer loyalty.
55%
5%15%
Customer record
Interaction with customers
Measurement of service quality
Customer experience
31%
19%
Free products
Flowers and cards
50%
up telephone calls
Outside firm Hired to track satisfaction
55%
5%
15%
Customer Record
Interaction with customers
Measurement of Service Quality
Customer Experience
________________________ISSN 2319–1171
Res. J. Management Sci.
10
Methods of Tracking Customer Satisfaction.
Data Required for CRM Implementation: According to the
views of respondents regarding data required for the CRM
implementation in the retail outlets main source was interaction
t. The customer’s record and customer
experience are the next two sources of data for CRM
Data required for CRM
Methods of Collecting Customer’s Data: Thirty two percent
stores collect the information through entry form feedback
forms thirty percent through feedback forms and twenty eight
About thirty one percent of the total
retailer believed that most important benefit of CRM to the
retailers is that there is an increase in the number of customers
followed by repeat purchase and increase in profit. The other
benefits are that new customers are attracted and enhanced
service quality. Their perceptions may not be correct as CRM
largely benefits in regards to customer loyalty.
25%
Interaction with customers
Measurement of service quality
Customer experience
25%
Interaction with customers
Measurement of Service Quality
Customer Experience
Research Journal of Management Sciences _______________________
Vol. 6(2), 8-11, February (2017)
International Science Community Association
Figure: 9 Ways of Collecting Data
Figure-10: Benefits of CRM
Basis for Evaluating CRM: Most of retailers in organized
retail at Bhopal believed that the most common basis of
evaluating the CRM is by counting the number of customer
complaints, by looking at the market share and by seeing the
reduction in expenses. Some other retailers also took as revenue,
retention and new customers as the basis for evaluating the
CRM.
32%
30%
28%
10%
Entry forms Feedback forms
Bills records Others
31%
24%22%
10%13%
Increase in number of customersRepeated customerIncrease in profit Enchancing service qualityAttracting new customers
12%
20%
20%12%
23%
13%
Revenue Expenses
Market share New customers
Customer complaint Retention
_________________________________________________________
Association
Ways of Collecting Data
Benefits of CRM
Most of retailers in organized
retail at Bhopal believed that the most common basis of
evaluating the CRM is by counting the number of customer
ng at the market share and by seeing the
reduction in expenses. Some other retailers also took as revenue,
retention and new customers as the basis for evaluating the
Figure-11: Basis for Evaluating CRM
Conclusion
The study helps us to indentify the CRM practices which are
being followed by the organized retail stores at Bhopal. Through
CRM tools and techniques retailers and customers are benefited
which helps in future relationship. The customers are attracted
and thereby the retailers increase their service quality. This
study can be used by researcher for identifying the taste and
preferences of the customers. It will help in understanding
reasons of frequent store visit of customers to retail stores. The
study can be used by the consultants for making various training
programs and CRM software for the organized retail stores.
References
1. Mathur Meera and Samma Sumbul (2010).
Customer Relationship Management Practices in Selected
Organised Retail Stores in Udaipur City
Review - A Quarterly Refereed Journal
2. Gupta Uravashi (2012). Impact of Organized Retail on
Unorganized Sectors: A Study in Jammu Region.
International Journal of Research in Commerce, IT &
Management, 2(1), 112-115.
3. Paul Green E., Mahajan Vijay, Stephen Goldberg M. and
Kedia Pradeep K. (1983). A Decision Support System for
Developing Retail Promotional Strategy.
Retailing.59(3), 116-143.
4. Anupama C.R. and Prapurna Leela (2010). Customer
Relationship Management in India Retail.
Management Digest, 8, 67-76.
5. Parikh Darshan (2006). Measuring Retail Service Quality:
An Empirical Assessment of the Instrument.
45-56.
6. Jain Rajnish and Jain Sangeeta (2006). Towards Relational
Exchange in Service Marketing: Insights from Hospitality
Industry. Journal of Services Research
7. Raab G., Ajami R.A., Gargeya V. and Goddard G.J. (2012).
Customer Relationship Management: A Global Perspective.
Gower Publishing, 1-199.
Feedback forms
Increase in number of customers
20%
Expenses
New customers
Retention
________________________ISSN 2319–1171
Res. J. Management Sci.
11
Basis for Evaluating CRM
The study helps us to indentify the CRM practices which are
being followed by the organized retail stores at Bhopal. Through
techniques retailers and customers are benefited
which helps in future relationship. The customers are attracted
thereby the retailers increase their service quality. This
study can be used by researcher for identifying the taste and
preferences of the customers. It will help in understanding
reasons of frequent store visit of customers to retail stores. The
n be used by the consultants for making various training
programs and CRM software for the organized retail stores.
Mathur Meera and Samma Sumbul (2010). A Study on
Customer Relationship Management Practices in Selected
in Udaipur City. Pacific Business
A Quarterly Refereed Journal, 1, 16-29.
Gupta Uravashi (2012). Impact of Organized Retail on
Unorganized Sectors: A Study in Jammu Region.
International Journal of Research in Commerce, IT &
Paul Green E., Mahajan Vijay, Stephen Goldberg M. and
Kedia Pradeep K. (1983). A Decision Support System for
Developing Retail Promotional Strategy. Journal of
Anupama C.R. and Prapurna Leela (2010). Customer
agement in India Retail. SRM-
76.
Parikh Darshan (2006). Measuring Retail Service Quality:
An Empirical Assessment of the Instrument. Vikalpa, 31(2),
Jain Rajnish and Jain Sangeeta (2006). Towards Relational
ice Marketing: Insights from Hospitality
Journal of Services Research, 5(2), 139-150.
Raab G., Ajami R.A., Gargeya V. and Goddard G.J. (2012).
Customer Relationship Management: A Global Perspective.