CRM practices in the retail industry allow companies like Tesco and Reliance to better manage customer relationships. Both companies implemented CRM software - Tesco used RightNow (later acquired by Oracle) while Reliance used SAP. This helped them collect detailed customer profiles, provide personalized service, increase sales and customer loyalty through rewards programs like Tesco's Clubcard and Reliance's RelianceOne. While both saw business gains with CRM, Tesco was able to offer more personalized perks to top customers like valet parking due to more robust customer data collection and analysis capabilities afforded by its CRM system.

1. CRM Practices in Retail Industry
Presented By:-
Aditya Sharma
Ameya Karve
Ankur Ahir
Kaustubh
Zinzuwadia
Maulik Buddhdev
Yaseer Khan

2. What is CRM?
• Information industry
• Methodologies, software & internet
capabilities.
• Manage customer relationship.
• Organized and efficient manner.

4. CRM software for retail

5. Advantages of CRM
• Increase relationships with clients
• Increase of sales
• Reduction of sales cycle
• Better communication channels
• Create detailed profile
• New selling opportunities
• Provides better customer service

6. TESCOTESCO

7. CLOUD ARCHITECTURE
• Software as a Service:
• Platform as a Service:
• Infrastructure as a Service:

9. Shift in Data storage
• Physical storage devices
• Cloud storage

11. Background Note
• The first store was opened in 1929 in Burnt Oak,
Edgware.
• By 1930, around 100 stores were operating under the
Tesco label.
• In 1948, the first self-service Tesco store was opened
in St Albans.
• Gradually Tesco grew over 400 stores.
• In 1960, Tesco began selling clothing, household
goods, fresh foods and groceries.
• In 1968, Victor Value came under the company’s
fold.
• In 1974, Tesco began operating petrol pumps.

12. Continue…
• In 2001, Tesco acquired a 53% stake in
Dunnhumby.
• In 2001, a host of new ranges of food products
were launched.
• In May 2002 Launched 1st
store in malaysia.
• By mid 2003, Company was operating 2291
stores around the world.

13. Tesco - Pre CRM
• Tesco mass-customized the magazines by
sending it to their customers.
• Every magazine had a unique combination of
articles, advertisements related to its offerings
and third party advertisements.
• Promotional coupons were distributed though
this magazines.

14. Adoption of Strategies
• In 1979, company successfully launched a price cutting
campaign named “ Checkout at Tesco”.
• In 1985, Tesco Launched the “ Healthy Eating” initiative
which aimed at conveying the nutritional value of the
company to the customers.
• In 1990, Tesco came with three new formats stores,
Tesco Metro: To serve local community of region,
Tesco Express: Combination of petrol pump & convenience
store,
Tesco Extra Store: Hypermarket focused equally on food and
non food merchandise.

15. Reason for adopting CRM
• Inappropriate management
• Insufficient customer data
• Low level of customer satisfaction
• Maximizing the channel sales
• Simplify inventory management
• Advance reporting
• Strengthen workforce management

16. CRM Software at Tesco
• Software Vendor:-RightNow
• Software Name:-Tesco Direct
• RightNow was individual indentity when it
was purchased by Tesco.
• On December,2011 RightNow was overtaken
by Oracle.
• Tesco Direct is the software which was
customized only for Tesco.
• Price-90,000 £

17. TESCO CRM IMPLEMENTATION
• Video to be attached here.

18. Tesco-Post CRM
• 1993-94 - Tesco launched the “First Class Service”.
• 1994 - Company launched the “One on Front” scheme to
reduce the time of customers at check-out counters.
• Tesco store personnel ensure that if there was more than one
person at any counter will lead to open for the person second
in line.
• 1994 - Tesco began tied up with Dunnhumby.
• 1995 - Tesco launched the Clubcard Loyalty scheme.
• In this way Company started collecting the database of
customers like name, add, dob, e-mail etc.
• 2000 - Company tied up with a Safeway Inc to launch an
online grocery shopping services

19. • With the help of data mining they analyzed the data and classified the
customers into four broad categories:
1) Premium
2) Standard
3) Potential
4) Uncommitted.
• Customers were categorized along dimensions such as value,
convenience, frozen, healthy eating, fresh and kids.
• Tesco began giving many special privileges, such as Valet parking
and personal attention from store managers to customers.
• Instance: “Tescooters” (scooters) were purchased by the thailand
customer and it was delivered to their home.
• With www.tesco.com company emphasized on E-commerce.
• Special cards were created for mothers.
• Special attention given to expectant mothers in the form of personal
shopping assistants.

20. • Sales have increased by 52% and still growing at a rate higher than
the industry average within 5 years.
• Floor space increased by 150%.
• In the online space, tesco.com boasts 500,000 transactions weekly,
totaling nearly two billion pounds in sales each year.
• RightNow will also provide customers and in-store customer service
employees with the opportunity to self-serve via Tesco Direct.
• RightNow will support Tesco Tech Support’s customer care goal by
giving them a single view of its customers enabling them to understand
exactly why their customers contact them, helping them to respond
accordingly.

21. • It will also empower agents and employees to respond to queries
consistently and help customers to find answers to their questions
via the web.
• “SaaS is the simplest and safest way to store the knowledge.
• Clubcard holders receive one point for every £1 (1 point for every
£1 ) they spend.
• Holders can also get extra points on special offers and receive one
"Green Clubcard Point" for every carrier bag they re-use as part of
Tesco's green initiative.
• These can be used to obtain discounted day trips, magazines, hotel
breaks, restaurant tokens and other offers.

22. • 2009-As part of the Clubcard 2 launch, it was announced that, from
17 August, all instore and online purchases would attract double
points (2 points per £1).
• 2009/10-Reports indicate that this initiative was successful in
increasing the number of active cardholders from 14 million to 15
million in the market year Examples of available brands are
Monarch Airlines scheduled flights
• 2014-Tesco launched a new money saving offer for fuel. The Tesco
Fuel Save means customers can earn up to 20p off every litre of
fuel. For every £50 spent in Tesco Stores or Tesco.com, customers
receive 2p off every litre of fuel.
• Tesco have recently launched both an iPhone, BlackBerry, Android
(operating system) and a Nokia Ovi applications so points can be
collected by presenting a barcode on the handset instead of a keyfob
or card.

23. Tesco used the info.
Tesco used the information generated by the Clubcards in
following ways:
• Pricing
• Merchandising
• Promotions
• Customer Service
• Media Effectiveness
• Customer Acquisition
• Market Research
• Customer Communication.

24. CRM
Reliance Retail
Reliance Industries Ltd.

25. "Growth has no limit
at Reliance.
I keep revising my
vision.
Only when you can
dream it,
you can do it."
Dhirubhai H. Ambani
Founder Chairman Reliance Group
December 28, 1932 - July 6, 2002

26. Different Retail sectors in Reliance
• Reliance Industries Limited
• Reliance Fresh
• Reliance Trends
• Reliance Mart
• Reliance Petroleum
• Reliance Jewel

27. Pre CRM at Reliance
• Personal contact numbers
• Policy less followed in small towns
• Common policy for Reliance Fresh and
Reliance Mart
• Delay in processing of membership cards
• Long queues at billing counters

28. Measures taken
Inform through SMS Regional policy adopted
Feedback callingMore new technologies adopted

29. CRM Software at Reliance
• Software Vendor:- SAP
• Software Name:- MySap, SAP R/3
• Software was purchased in 2002 at the cost of
60 lakhs.
• Note – CRM Software for Reliance
Communication and Reliance Finances –
Clarify eFront Office (Amdocs Company).

30. SAP in Reliance
• MySap software record and store information
about customers, various customer
interactions, their problems etc which can be
accessed by employees in different
departments of the company.
• These information are used by the
organization to make future plans that can
satisfy the customer on a better way and
retaining them for a longer period.

31. VARIOUS ASPECTS
CRM includes many aspects which relate directly to
one another:
• Front office operations — Direct interaction with
customers, e.g. face to face meetings, phone calls, e-
mail, online services etc.
• Back office operations — Operations that ultimately
affect the activities of the front office (e.g., billing,
maintenance, planning, marketing, advertising,
finance, manufacturing etc.)

32. CRM Policy Of Reliance
The customers also get the opportunity of availing four
different kinds of insurance on the payment of a nominal fee.
For example a customer can get an accidental death insurance
offers six lakhs on the payment of Rs. 400 only. Other forms
of insurances are disability, hospitalization and home
insurances.
The members of reliance one get the opportunity of taking
part and winning prizes by the way of lucky draws on regular
intervals.

33. CRM Strategy
CRM policy of reliance can be divided into four
broad category in every sector:
1) Customer Loyalty
2) Customer Retention
3) Customer Communication
4) Customer Gratification

34. Customer Loyalty
Various measures taken for attraction to drive
loyalty:
1) Opportunity of taking part and winning the
prizes by the way of lucky draws on regular
intervals.
2) The point system which provides one point
for every100 Rs purchase.

35. Customer Retention
• This is practiced at the zonal level.
• Discounts which prove to be helpful in
generating revenues are repeated in future
again.
• Complaint management and grievance
handling system at customer service desk
which increases the satisfaction.

36. Customer Communication
• Regular offers are communicated through e-
mails and sms to Reliance One members.
• They try and create database while organizing
of various special events in the store.
• Festive cards and other occasional cards are
regularly sent to Reliance One customers.
• Gift vouchers and discount coupons gives the
feeling of “care”.

37. CRM Creative Concepts

38. Reliance One Membership
• Customer will get 1% point
of his purchase amount .
• Free 50,000 Rs “Accidental
Death Insurance”.
• Earning Reliance One
points on your all purchase
at Reliance retail stores.
• Bonus Reliance One points
even on everyday essentials.
• Invites to exclusive events.

39. CRM Direct Mail Triggers
Home Delivery
Installation
Home Demo
Repair
Replace Service
Exchange
Complaint
Purchase
Purchase
Intent
Customized New
Offers & Events Launches
Resolve
Special
Occasion
Home Solution Home mapping Apology Offers Win-back Wish Cards
Product Catalog Getting-to-Know Satisfaction Feedback Satisfaction Offers
Offers Cross-Sell Feedback
Service Solutions
Feedback

40. CRM Reward Points : Earn Rationale
Option 1
for every
Rs100spend
you get
=1point
=
worth
1rupee
Option 2
Recommended
for every you get
Rs100 =1spend point
worth
= Xrupee
Option 3
for varying you get worth
spend X = 1=point
Xrupee

41. CRM MySAPCRM
Supports customer-related processes from end to end
- all customer-related tasks across departments integrating invoicing, shipping, etc.
Provides customer intelligence across the enterprise
- customer data for faster and better decision making
Delivers immediate value
- Enables you to address strategic priorities

42. CRM MySAPCRM

43. CRM MySAPCRM Identifying biz target gaps

44. CRM MySAPCRM Final campaign effectiveness = 80%

45. Comparison
• Lack of adoption of CRM software by
employees.
• Poor communication
• Advance reporting
• Work force management
• Inventory management
• Customer Centric view

46. Difference between TESCO AND RELIANCE

47. TESCO RELIANCE
ClubCard RelianceOne
Single day Delivery Irregularity in delivery
Online purchase with dedicated apps Online purchase but no dedicated apps
Hosted Servers No such servers
Valet parking for Club Card holders Generalized FCFS based.

48. Future Trends in CRM
• Products in accordance with customer’s
mindset.
• More action than transaction.
• Smart shopping.
• International players
• Social CRM

49. THANK YOU