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CUSTOMER SATISFACTION ON CUSTOMER RELATIONSHIP
MANAGEMENT (CRM) PRACTICES IN SELECTED RETAIL STORES
AT TRICHY CITY
Author 1: Dr.V. Palanisamy, Research Advisor, Research Department of Commerce,
Jairams Arts and Science College, Karur, Affiliated to Bharathidasan University,
Tiruchirappalli – 24.
Author 2: C. Thilagavathi, Research Scholar in Commerce, Jairams Arts and Science
College, Karur, Affiliated to Bharathidasan University, Tiruchirappalli – 24.
ABSTRACT
Retailing is evolving into a global, high tech business. Retailing occupies a pivotal
role in the world economy. Retailing is the largest private industry in the world. The Indian
retail industry has emerged as one of the most dynamic and fast – paced industries due to the
entry of several new players. In recent days, customers are regarded as an article of trade. In
the global business world, customers have become an important aspect of success for
companies and their management is core to the fundamentals that drive the organization
forward. The ability of consumers to influence the policies and strategies of companies make
them the key kink for the successful management of the business. It is important that an ideal
solution be delivered to counter any unexpected changes in trends and the environment of
retail industry. The implementation of Customer Relationship Management (CRM) has
gained ground in recent years in the retail industry and is became popular in India. CRM is
potentially a useful concept in the marketing and customer service areas of a retail sector.
CRM practices are important variable in the success of retail stores. CRM can help
organizations to manage customer interactions more effectively to maintain competitiveness
in the economy. CRM provides long –term relationship buildings with customers at an
enterprise – wide level. This research paper attempts to evaluate the customer satisfaction on
CRM practices in selected retail stores at Trichy city. The present study finds out the
customer relation management and its implementation and consumer level of satisfaction on
CRM practices while shopping in retail stores at Trichy city.
Key words: Customer Relationship Management, Retail stores, Customer Loyalty,
Customer Satisfaction, consumer behavior, Implementation
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
Page No:1753
INTRODUCTION
Retail Sector is one of the fastest growing sectors in India over the last few years. In
recent days, customers are regarded as an article of trade. Customers are the primary source
that businesses exist; marketing has become the core component for successful management
of the organization. For most businesses, marketing can account for almost of the product
sale price, provided services such as distribution and promotion are accounted for this. For
any business to succeed with its customers, they need to understand the customers. Hence,
implementation of CRM is essential to understand the customers. The term CRM is used to
define the tools and technologies used b y an enterprise to manage the relationships with its
customers. CRM is a process of learning by which organizations can develop stronger
relationships with customers having gained information on their needs and behaviours.
Retail Industry Scenario in India
Retailing is the most active and attractive sector of last decade. While the retailing
industry itself has been present since ages in our country, it is only the recent past that it has
witnessed so much dynamism. The emergence of retailing in India has more to do with the
increased purchasing power of buyers, especially post – liberalization, increase in product
variety, and increase in economies of scale, with the aid of modern supply and distributions
solution. The overall retail market in India 2018 stood at Rs 43,251 billion and is forecast
to grow by 6.4 percent CAGR in 2018-2023.
Indian retailing today is at an interesting crossroads. The retail sales are at the highest
point in history and new technologies are improving retail productivity. The Indian retail
industry has emerged as one of the most dynamic and fast – paced industries due to the entry
of several new players. The retail sector in India is dominated by the unorganized retail
trade, where unorganised trade forms around 93% of the overall trade. This is in contrast
with the developed countries where the organised retail industry accounts for almost an
average of more than 80% of the total retail trade. This highlights a lot of scope for further
penetration of organized retail in India. The overall retail market in India is expected to
grow at 12% growth rate per annum, driven by growing urbanization, rising income,
demographics and rising aspirations of the middle class. Modern trade is going to expand as
twice as fast at 20% per annum and traditional trade is expected to grow at 10%.
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
Page No:1754
Customer Relationship Management
Customer Relationship Management (CRM) is the combination of practices, strategies
and technologies that companies use to manage and analyze customer interactions and data
throughout the customer lifecycle, with the goal of improving customer service relationships
and assisting in customer retention and driving sales growth. CRM systems compile
customer data across different channels. CRM system can also give customer facing staff
detailed information on customers’ personal information, purchase history, buying
preferences and concerns.
Benefits of CRM
The primary benefits of CRM include significant improvement to the marketing
techniques, as well as better chances of customer satisfaction and retention and growth in
market share for the business. By ensuring that the system targets customers with high value
propositions that satisfy their needs. CRM improves marketing tools used by and
organisation. Upon improving its product offerings, a business gains the ability to retain its
customers and establish a sense of loyalty between each other. It is important for better
services to be maintained over time, which generated enough positive marketing from word
of mouth to help establish a significant level of growth in the market.
Key principle of Customer Relationship Management
Customer satisfaction
Customer satisfaction is defined as a measurement that determines how
happy customers are with a company's products, services, and capabilities. Customer
satisfaction information, including surveys and ratings, can help a company determine how
Institutional Memory
collaboration
Touch point alignment
one and doneReal time
information Manager
Listening & Learning
posts
Value Segmentation
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
Page No:1755
to best improve or changes its products and services. Satisfaction means the contentment one
feels when one has fulfilled a desire, need or expectation. Furthermore, Customer satisfaction
can be a measure of how happy customers are with the services and products of a retail
stores. Keeping customers happy is of tremendous benefit to companies. Satisfied customers
are more likely to stay loyal, consume more and are more likely to recommend their friends
to the business.
Customer satisfaction occurs when the value and customer service provided through a
retailing experience meet or exceed consumer expectations. If the expectations of value and
customer service are not met, the consumer will be dissatisfied. Only very satisfied customers
are likely to remain loyal in the long run. (Levy, Michael, Weiz, Barton A,Retailing
management 2004,2) Customer satisfaction in a retailing should be a long-term aim and
concentrate into an existing customer rather than replace dissatisfied customers with new
ones. It is extremely important to satisfy customers because a retailer’s sale comes from two
groups of customers: new customers and repeat customers. In retailing, attracting new
customers is likely to cost company five times as much as pleasing an existing customer.
Customer retention is more important than customer attraction, and a key to customer
retention is customer satisfaction.
Review of Literature
According to Chen and Popovich(2003), CRM is not a concept that is really new but
rather due to current development and advances in information and enterprise software
technology, it has assumed practical importance.The root of CRM is relationship marketing,
which has the objective of improving the long-term profitability of customers by moving
away from product-centric marketing.
Bose (2002) noted that CRM was invented because the customers differ in their
preferences and purchasing habits. If all customers were alike, there will be little need for
CRM. As a result, understanding customer drivers and customer profitability, firms can better
tailor their offerings to maximize the overall value of their customer portfolio.
According to Greenberg (2004), CRM generally is an enterprise-focused endeavor
encompassing all departments in a business . He further explains that, in addition to customer
service, CRM would also include, manufacturing, product testing, assembling as well as
purchasing, and billing, and human resource, marketing, sales and engineering.
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
Page No:1756
Darshan Desai, Sabrat Sahu and Piyush Kumar Sinha (2007) on the basis
of analytical and empirical or case research conducted a random sample study of 334
executives was selected from 29 firms in the following industries: retail (n=60), telecom
(n=80) and banking (n=183) in India. They also concluded that. Impact of market
orientation on dynamic capability of CRM and competitive CRM performance may be the
result and shaping the organizational resources that no longer match the environment. These
include processes like analysis customers, developing and delivering tailored offering,
providing customer service, orchestrating linkages, assigning accountability and evaluating
performance.
Yuen & Chan (2010) assert that in today‟s competitive grocery store sector,
customer demands are bound to increase from time to time due to the improvement of service
quality in parallel with product variety. Due to the tremendous growth of service industry in
which retailing sector plays an important role, it is vital for retailers to understand the degree
of importance of listening to the inner voice of customers´ needs to create, increase level of
satisfaction.
Objectives of the study
To analyse CRM practices followed by retail stores in Trichy city.
To evaluate the relationship between CRM and customer satisfaction.
To study the benefits of CRM to the customers.
To understand the impact of CRM in retail stores
To find out the factors determining purchase decision
Methodology
The study was conducted through questionnaire method.
Sample Size
The sample size taken up for this study is 100 respondents from retail shops in Trichy
city.
Primary Data and Secondary Data
Primary data is collected through questionnaire. Secondary data has been collected
from Journals, Websites, Magazines and News Papers.
Table No. 1
Types of retail stores like to purchase
OPTIONS FREQUENCY PERCENTAGE
Hypermarkets 18 18
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
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Departmental stores 36 36
Convenience stores 14 14
Super markets 32 32
Total 100 100
Source: Primary Data
From the above table depicts that, the majority (36%) of the respondents purchased
goods from departmental stores, 32% of them are purchased goods from super markets, 18%
of them prefer hypermarkets and 14% of them preferred convenience stores to purchase
products.
Table No. 2
Types of products like to purchase in retail stores
OPTIONS FREQUENCY PERCENTAGE
Electronics goods 22 22
Cloth 30 30
Food items &Grocery 38 38
Others 20 20
Total 100 100
Source: Primary Data
From the above table, it is inferred that the majority (38%) of the respondents
purchase food items and grocery, 22% of them purchased electronic goods, 30% of them are
purchased cloth and 20% of them purchased other products from retail stores.
Table No. 3
Opinion about the services offered by retail stores to its customers
OPTIONS FREQUENCY PERCENTAGE
Good 22 22
Satisfactory 58 58
Average 14 14
Poor 6 6
Total 100 100
Source: Primary Data
The analysis of the above table shows that, the majority 58% of the respondents are
opined that they are satisfied with the services offered by retail stores, 22% are feel the
services are good, 14% are opined that the services are average and only 6% of the
respondents opined that the services offered by retail stores is poor.
The International journal of analytical and experimental modal analysis
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ISSN NO: 0886-9367
Page No:1758
Chart No. 1
Opinion about the services offered by retail stores to its customers
Table No. 4
Retail stores collecting customer database
OPTIONS FREQUENCY PERCENTAGE
Yes 92 92
No 8 8
Total 100 100
Source: Primary Data
From the above table, it is clearly indicates that Majority (92%) of the retailers
collecting the customer data base. Only 8% of the retailer’s does not collecting customer data
base. Customer database helps the retailer to identify the loyal customers.
Table No. 5
Techniques / Methods used to collect customer information
OPTIONS FREQUENCY PERCENTAGE
Entry forms 40 40
0
10
20
30
40
50
60
70
80
90
100
FREQUENCY
PERCENTAGE
The International journal of analytical and experimental modal analysis
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Page No:1759
Feedback forms 32 32
Bill records 18 18
Others 10 10
Total 100 100
Source: Primary Data
From the above table, it is inferred that the majority of the Retailers used entry forms
to collect the information about the customers. 32% of the retail stores collect customer’s
details through feedback forms. 18% of retail stores collect customer data and information
through bill records and 10% belongs to other forms.
Table No. 6
Different types of information collected by retailers from respondents
OPTIONS FREQUENCY PERCENTAGE
Personal information 24 24
Family information 12 12
Feed back 22 22
Income 12 12
Address 10 10
All type of information 20 20
Total 100 100
Source: Primary Data
From the above table shows that, Majority 24% of the retailers collected personal
information from the customers, 12% are collected family information, 22% are collected
feedback, 12% are collected income details, 10% are collected address and 20% of the
retailers collected all type of above information from the customers of retail stores.
Table No. 7
Factors determining purchase decision
OPTIONS FREQUENCY PERCENTAGE
Quality products 42 42
Door delivery 16 16
Membership card 8 8
Sitting facility 6 6
Billing facility 10 10
Child play area 6 6
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
Page No:1760
Promotional schemes 12 12
Total 100 100
Source: Primary Data
From the above table, it clearly shows that the majority (42%) of the respondents
determine to purchase for the reason of quality products. 16% door delivery, 8% membership
card, 6% sitting facility, 10% quick billing facility, 6% child play area and 12% of the
respondents are influenced to determine to take purchase decision for promotional schemes.
Chart No. 2
Factors determining purchase decision
*Table No. 8
Loyalty card provided by retailers
OPTIONS FREQUENCY PERCENTAGE
Yes 86 86
No 14 14
Total 100 100
Source: Primary Data
From the above table, it is inferred that majority (86%) of the retailers provide
loyalty card to its customers. Only 14% of them are not provided loyalty cards.
2258
14 6
10022
58
146
100
Good Satisfactory Average Poor Total
FREQUENCY PERCENTAGE
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Table No. 9
Methods followed by a retailer to maintain customer loyalty
OPTIONS FREQUENCY PERCENTAGE
Accepting credit / debit cards 46 46
Loyalty cards 22 22
Accepting mail orders 12 12
Credit sales 14 14
Others 6 6
Total 100 100
Source: Primary Data
From the above table, it is clearly shows that the various methods followed by a
retailer to maintain customer loyalty. Majority (46%) of the retailers focused on accepting
credit cards and debit cards to make purchase. 22% of the retailers used to provide loyalty
cards to its customers to maintain customer loyalty. 12% of the retailers accepting mail
orders, 14% of them are providing credit sales facilities to its customers and 6% of them are
given guarantee and response forms to maintain customer loyalty.
Table No. 10
Opinion about the promotional schemes delight the customer
OPTIONS FREQUENCY PERCENTAGE
Strongly agree 44 44
Agree 20 20
Neutral 11 11
Disagree 13 13
Strongly disagree 12 12
Total 100 100
Source: Primary Data
From the above table, it clearly indicates 44% of the respondents opined that they feel
delighted about the promotion schemes offered by retail stores. 20% are agreed, 11% opined
that they feel neutral about the promotional schemes. 13% of them disagreed and 12% of
them strongly disagree the statement.
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
Page No:1762
Table No. 11
Various schemes offered by retailers to maintain good relationship with customer
OPTIONS FREQUENCY PERCENTAGE
Discount offers 36 36
Gift coupons 18 18
Membership card 10 10
Free door delivery 16 16
Regular feedback 12 12
Others 8 8
Total 100 100
Source: Primary Data
From the above table, it inferred that the various schemes offered by a retailer to
attract consumers and maintain a good relationship with the customers. Majority (36%) of
the retailers offered discount offers in festival seasons to attract the customers. 18% of the
retailers offered gift coupons, 10% are offered membership card, 16% are provided free door
delivery service, 12% are getting regular feedback from customers and remaining 8% of the
retailers are offered some other schemes to maintain good relationship with their customers.
Chart No.3
Various schemes offered by retailers to maintain good relationship with customer
Table No. 12
Greetings send by retailers
OPTIONS FREQUENCY PERCENTAGE
Yes 90 90
No 10 10
11%
29%
7%
3%
50%
Good
Satisfactory
Average
Poor
Total
The International journal of analytical and experimental modal analysis
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ISSN NO: 0886-9367
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Total 100 100
Source: Primary Data
From the above table, it clearly indicates the opinion about the retailers sending
birthday / anniversary / festival greetings to their customers. Majority (90%) of the retailers
are sending greeting to their customers for their birthday / anniversary / festival. Only 10%
of the respondents are not sending any greeting to their customers.
Table No. 13
Feedback collected by retailers
OPTIONS FREQUENCY PERCENTAGE
Yes 80 80
No 20 20
Total 100 100
Source: Primary Data
From the above table, it is interprets that, Majority (80%) of the respondents opined
that the retailers are collecting feedback about their service from customers. Only 20% of
them are says that the retailers are not collected any feedback from customers.
Table No. 14
Methods to collect feedback about level of satisfaction from customers
OPTIONS FREQUENCY PERCENTAGE
Feedback forms 40 40
Suggestion box 24 24
Sending SMS 12 12
Follow up telephone calls 16 16
Others 8 8
Total 100 100
Source: Primary Data
It is inferred that, the various methods followed by the retailers to collect feedback
from customers. 40% of the retailers used feedback forms to collect feedback from
customers. 24% of them followed suggestion box method, 12% of them sending SMS to
their customers and enquired about their level of satisfaction, 16% of the retailers tracking the
customer satisfaction through follow up telephone calls and 8% of the retailers used other
methods to tracking the customer satisfaction.
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
Page No:1764
Table No. 15
Overall satisfaction regarding the retail stores
OPTIONS FREQUENCY PERCENTAGE
Excellent 18 18
Satisfactory 41 41
Good 30 30
Average 7 7
Poor 4 4
Total 100 100
Source: Primary Data
From the above table clearly shows the overall level of satisfaction regarding the
retail stores. Majority 41% of the respondents are satisfied with retail outlets. 18% of them
opined that they feel excellent, 30% of the respondents are opined that they feel good, 7%
feels average and only 4% of them opined that their satisfaction level is poor.
Chart No. 4
Overall satisfaction regarding the retail stores
Findings
Majority (36%) of the respondents purchased goods from departmental stores.
Majority (38%) of the respondents purchase food items and grocery.
18
41
30
7 4 Excellent
Satisfactory
Good
Average
Poor
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ISSN NO: 0886-9367
Page No:1765
Majority 58% of the respondents are opined that they are satisfied with the services
offered by retail stores.
Majority (92%) of the retailers collecting the customer data base.
Majority 24% of the retailers collected personal information from the customers.
Majority (42%) of the respondents determine to purchase for the reason of quality
products.
Majority (36%) of the retailers offered discount offers in festival seasons to attract the
customers.
Majority 41% of the respondents are satisfied with retail outlets.
Conclusion
CRM practices play an essential role in the success of the business. This study helps
to identify the customer satisfaction on CRM practices followed by retailers in retail stores at
Trichy city. This study has identified the various factors determining the purchase decision of
the customer. CRM techniques and methods used by a retailer will helps to maintain
customer loyalty. Timely feedback from the customers should be taken by the retail store it
would make the customers realize that they are important for the growth of the organisation.
CRM is highly exercised in all the industries but it is having importance in retail industry for
its growth. Every firm is striving to establish and maintain customer relationship in order to
sustain its business and profitability.
References
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Darvish, H., Kafashzadeh, A. R., & Ahmadnia, H. (2012). Studying the customer
relationship management: A case study at Persian technology firm. Economic Insights
– Trends and Challenges, 64, 1-18.
Levy, Michael, Weiz, Barton A 2004 Retailing management.5th international edition.
Boston,McGraw-Hill.
Gee, R., Coates, G. & Nicholson, M. (2008). Understanding and profitably managing
customer trust. Marketing Intelligence & Planning, 26(4), 359 - 374. DOI:
10.1108/02634500810879278
Benjamin Appiah - Kubi & Andrews, K. D (2010): “Towards a successful customer
relationship management: A conceptual framework” African Journal of Marketing
Management ,Vol. 2(3) pp.037-043.
The International journal of analytical and experimental modal analysis
Volume XI, Issue XI, November/2019
ISSN NO: 0886-9367
Page No:1766
Warrington P, Gansted E, Feinberg R & de Ruyter K (2007), Multi – channel retailing
and customer satisfaction: implications for e- CRM. International Journal of E-
Business Research 3(2),p 57 – 69.
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Volume XI, Issue XI, November/2019
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