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Final project of dubey

  2. 2. ACKNOWLEDGEMENTI sincerely want to thank all the people who helped me throughout the procedure of 60days of my summer internship program. It is really has been a learning experience forme.I specially want to thank my company guide Mr. ALOK SINGH for his guidance formthe first day of training till the last. it has been a great experience of working with him.His assistance really helped me in learning and gaining the practical knowledge.I would also like to thank Mr. ASHUTOSH SHUKLA guide, was there for the guidanceand he directed me whenever I was in need of it. I am highly obliged for his assistance.I would also like to appreciate the help given by the sales team of angel broking andtrading person, for giving their valuable time and for sharing their experience with us andI would also like to thank other employee of Angel Broking for guiding us with theirvaluable practical experience of their working life. ASHWANI DUBEY Page | 2
  3. 3. PREFACETheories are being developed, designed and stated on the groundwork of their practicalimplementation and usage. Work experiences seems to be the most effective andindispensable factor for making and individual an adapt. Training not developsindividual‘s skill and abilities but also provide proficiency in work performance.The researcher has done summer training in ―ANGEL BROKING LTD,ALLAHABAD‖. Which constitutes an essential part of two year M.B.A. program attraining period consist of 45 working days. The researcher was provide the project studyon the topic ―CUSTOMER RELATIONSHIP MANAGEMENT OF ANGELBROKING AND OTHER‖. It was really a great opportunity getting practical insight ofthe market.The successful completion of the project was a unique experience for me because byvisiting many place and interacting with various persons, I achieved a better knowledgeabout market. Page | 3
  4. 4. DECELARATIONI ASHWANI DUBEY a student of united institute of management (BBSCET)Allahabad session 2011-2013. Id no. 110110102 and roll no. 1101170114.Hereby, I declare that the project report entitled ―emergence of IPO and investmentavenue‖.Angel broking private limited Allahabad.Date:Place: ASHWANI DUBEY Page | 4
  5. 5. EXECUTIVE SUMMARYThe research work executed by the team had an object oriented and realistic approachtowards the online share trading scenario in India as well as covering the globe by andlarge, precisely speaking economic giants. The team did follow Market Researchprocedure to get an extensive idea about the general perception in the mass when onlineshare trading considered, the exact figures are involved in share trading online. Toacquire customers in favor of ANGEL was also an integral part of the job. The teammembers covered Allahabad and U.P for this purpose. A brief profile about theorganization was also intimated to each and every respondent in order to increase thepopularity of Angel Broking. The next phase was all about to have an international look in this field of onlineshare trading. The team examined thoroughly areas such as the number of players,technology they are offering, their customer base, whether this is appealing to thecommon people or not, how they market their services etc. Page | 5
  6. 6. IndexParticular : Page no :Company CertificateCollege Certificate 2-5  Acknowledgement  Preface  Declaration  Executive summaryIntroduction 8Project Objective 9 13-15INDUSTRY OVERVIEW :  Brief history of organization  A Brief History of stock exchange  Online Trading process. 16-45COMPANY PROFILE :  Introduction and history  Introduction to Angel Broking  SW0T Analysis Page | 6
  7. 7. Customer relationship management 46-69  Introduction to crm  History of crm  Success of crm  Failure of crm  Need of crm  Advantage of crmResearch methodology 70-88  Data sources  Research design  Sample size  Data analysis interpretationsFindings 89Recommendations 90Conclusion 91Bibliography 92questionnaire 93-96 Page | 7
  8. 8. Introduction Page | 8
  9. 9. OBJECTIVE OF STUDY Understand customer needs better Maintain long term customer relationships To retain profitable customer. To create competitive advantage Page | 9
  10. 10. SIGNIFICANCE OF STUDYCustomer Relationship management is the strongest and the most efficient approach inmaintaining and creating relationships with customers. Customer relationshipmanagement is not only pure business but also ideate strong personal bonding withinpeople. Development of this type of bonding drives the business to new levels of success. A CRM system consists of a historical view and analysis of all the acquired or to be acquired customers. This helps in reduced searching and correlating customers and to foresee customer needs effectively and increase business. CRM contains each and every bit of details of a customer, hence it is very easy for track a customer accordingly and can be used to determine which customer can be profitable and which not. In CRM system, customers are grouped according to different aspects according to the type of business they do or according to physical location and are allocated to different customer managers often called as account managers. This helps in focusing and concentrating on each and every customer separately. The strongest aspect of Customer Relationship Management is that it is very cost- effective. The advantage of decently implemented CRM system is that there is very less need of paper and manual work which requires lesser staff to manage and lesser resources to deal with. The technologies used in implementing a CRM system are also very cheap and smooth as compared to the traditional way of business. Efficiently dealing with all the customers and providing them what they actually need increases the customer satisfaction. This increases the chance of getting more business which ultimately enhances turnover and profit. Page | 10
  11. 11. If the customer is satisfied they will always be loyal to you and will remain inbusiness forever resulting in increasing customer base and ultimately enhancingnet growth of business. Page | 11
  12. 12. EXECUTIVE SUMMARYThe research work executed by the team had an object oriented and realistic approachtowards the online share trading scenario in India as well as covering the globe by andlarge, precisely speaking economic giants. The team did follow Market Researchprocedure to get an extensive idea about the general perception in the mass when onlineshare trading considered, the exact figures are involved in share trading online. Toacquire customers in favor of ANGEL was also an integral part of the job. The teammembers covered Allahabad and U.P for this purpose. A brief profile about theorganization was also intimated to each and every respondent in order to increase thepopularity of Angel Broking. The next phase was all about to have an international look in this field of onlineshare trading. The team examined thoroughly areas such as the number of players,technology they are offering, their customer base, whether this is appealing to thecommon people or not, how they market their services etc. Page | 12
  13. 13. INDUSTRY OVERVIEW Page | 13
  14. 14. A BRIEF HISTORY OF STOCK EXCHANGES :- Do you know that the worlds foremost market place ―New York StockExchange‖ (NYSE), started its trading under a tree (now known as 68 Wall Street) over200 years ago? Similarly, Indias premier stock exchange Bombay Stock Exchange (BSE)can also trace back its origin to as far as 125 years when it started as a voluntary non-profit making association. You hear about it any time it reaches a new high or a new low, and you also hearabout it daily in statements like The BSE Sensitive Index rose 5% today. Obviously,stocks and stock markets are important. Stocks of public limited companies are boughtand sold at a stock exchange. But what really are stock exchanges? Known also as Newson the stock market appears in different media every day. The stock market or bourse, astock exchange is an organized market place for securities (like stocks, bonds, options)featured by the centralization of supply and demand for the transaction of orders bymember brokers, for institutional and individual investors. The exchange makes buyingand selling easy. For example, you dont have to actually go to a stock exchange, say,BSE - you can contact a broker, who does business with the BSE, and he or she will buyor sell your stock on your behalf. All stock exchanges perform similar functions withrespect to the listing, trading, and clearing of securities, differing only in theiradministrative machinery for handling these functions. Most stock exchanges are auctionmarkets, in which prices are determined by competitive bidding. Trading may occur on acontinuous auction basis, may involve brokers buying from and selling to dealers. In certain types of stock or it may be conducted through specialists dealing in aparticular stock. But where did it all start? The need for stock exchanges developed out of earlytrading activities in agricultural and other commodities. During the middle Ages, tradersfound it easier to use credit that required supporting documentation of drafts, notes andbills of exchange. The history of the earliest stock exchange, the French stock exchange,may be traced back to 12th century when transactions occurred in commercial bills ofexchange. The first stock exchange in India, Bombay Stock Exchange was established in1875 as The Native Share and Stockbrokers Association and has evolved over the yearsinto its present status as the premier stock exchange in the country. It may be noted thatBSE is the oldest stock exchange in Asia, even older than the Tokyo Stock Exchange, Page | 14
  15. 15. which was founded in 1878. The countrys second stock exchange was established inAhmedabad in 1894, followed by the Calcutta Stock Exchange (CSE). CSE can also traceits origin back to 19th century. From a get together under a Neem Tree way back in the1830s, the CSE was formally established in May 1908.Indias other major stock exchange National Stock Exchange (NSE), promoted by leadingfinancial institutions, was established in April 1993. Over the years, several stockexchanges have been established in the major cities of India. There are now 23recognized stock exchanges — Mumbai (BSE, NSE and OTC), Calcutta, Delhi, Chennai,Ahmedabad, Bangalore, Bhubaneswar, Coimbatore, Guwahati, Hyderabad, Jaipur,Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune, Rajkot, Vadodara, Indore andMeerut. Today, most of the global stock exchanges have become highly efficient,computerized organizations. Computerized networks also made it possible to connect toeach other and have fostered the growth of an open, global securities market.Realizing there is untapped market of investors who want to be able to execute their owntrades when it suits them, brokers have taken their trading rooms to the Internet. Knownas online brokers, they allow you to buy and sell shares via Internet.Online Trading is a service offered on the Internet for purchase and sale of shares. In thereal world, you place orders on your stockbroker either verbally (personally ortelephonically) or in a written form (fax). In Online Trading, you will access astockbrokers website through your internet-enabled PC and place orders through thebrokers internet-based trading engine. These orders are routed to the Stock Exchangewithout manual intervention and executed thereon in a matter of a few seconds.There are 2 types of online trading service: discount brokers and full service onlinebroker. Discount online brokers allow you to trade via Internet at reduced rates. Someprovide quality research, other don‘t. Full service online brokerage is linked to existingbrokerages. These brokers allow their clients to place online orders with the option oftalking/ chatting to brokers if advice is needed. Brokerage rates here are, ICICIDirect.Com, IndiaBulls.Com,, Angelbroking.Com, HDFCSecurities.Com is some of the online broking sites in India. Page | 15
  16. 16. COMPANY PROFILEINTRODUCTION AND HISTORY :- ―Angel Broking‖ is the retail broking arm of SSKI, an organization with morethan eight decades of trust & credibility in the stock market. It is Indias leading retailfinancial Services Company with We have over 250 share shops across 115 cities inIndia. While our size and strong balance sheet allow us to provide you with variedproducts and services at very attractive prices, our over 750 Client RelationshipManagers are dedicated to serving your unique needs. Angel Broking is lead by a highlyregarded management team that has invested crores of rupees into a world classInfrastructure that provides our clients with real-time service & 24/7 access to allinformation and products. Our flagship Angel Broking Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic tradingcapabilities, right at your fingertips. This powerful technology complemented by ourknowledgeable and customer focused Relationship Managers. We are creating a world ofSmart Investor. Angel Broking offers a full range of financial services and productsranging from Equities to Derivatives enhance your wealth and hence, achieve yourfinancial goals. Angel Broking Client Relationship Managers are available to you to helpwith your financial planning and investment needs. To provide the highest possiblequality of service, Angel Broking provides full access to all our products and servicesthrough multi-channels. Page | 16
  17. 17. INTRODUCTION TO ANGELIn a shot span of 22 years since inception, the Angel Group has emerged as one of the topfive retail stock broking houses in India, having membership of BSE, NSE and the twoleading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking isalso registered as a Depository Participant with CDSL.The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub-broker in 1987 with a team of 3. Today the angel group is managed by a team of 1937direct employees and has a nationwide network comprising of 21 Regional hubs, 124branches and 6810 sub brokers & business associates. Angel is 100% focused on retailstock broking business unlike any other larger national broking house. The groupcurrently services more than 5.9 thousand retail clients.Angel habitually generates value added features without the cost burden being passed onto the clients as they strongly believe that better understanding of client‘s needs andwants is their top priority. Their e-broking facility is one such effort, which gives theclient a platform to access state of the art trading facility at the click of a button.Angel has always strived for delivering customer delight and developing strong long termbonds with its clients as well as channel partners. Angel thrives on a vision to introducenew and innovative products and services constantly. Moreover, Angel has been amongthe pioneers to introduce the latest technological innovations and integrate themefficiently within its business. Page | 17
  18. 18. About the AngelAngel Booking‘s tryst with excellence in customer relations began more than 20 yearsago. Angel Group has emerged as one of the top 3 retail broking houses in India andincorporated in 1987. Today, Angel has emerged as a premium Indian stock-broking andwealth management house, with an absolute focus on retail business and a commitment toprovide "Real Value for Money" to all its clients.It has memberships on BSE, NSE and the leading commodity exchanges in IndiaNCDEX & MCX. Angel is also registered as a depository participant with CDSL.Angel Group CompaniesAngel Broking Ltd. Member on the BSE and Depository Participant with CDSLAngel Capital & Debt Market Membership on the NSE Cash and Futures & OptionsLtd. SegmentAngel Commodities Broking Member on the NCDEX & MCXLtd.Angel Securities Ltd. Member on the BSE Incorporated :1997 BSE Membership :1997 NSE membership :1998 Member of NCDEX and MCX Depository Participants with CDSL Angel’s presence :- Nation- wide network of 21 regional hubs Presence 124 cities 6800 + sub brokers & business associates 5.9 lakh + clients Page | 18
  19. 19. ManagementS.No Name Designation & Department 1. Mr. Dinesh Thakkar : Founder Chairman & Managing Director 2. Mr. Lalit Thakkar : Director – Research 3. Mr. Amit Majumdar : Executive Director – Strategy and Finance 4. Mr. Rajiv Phadke : Executive Director – HR & Corp 5. Mr. Vinay Agrawal : Executive Director – Equity Broking 6. Mr. Nikhil Daxini : Executive Director - Sales and Marketing 7 Mr. Hitungshu Debnath : Executive Director - Distribution & Wealth Management 8. Mr. Mudit Kulshreshtha : Executive Director – OperationsMilestones Awarded with Broking House with Largest Distribution Network and Best Retail Broking House at Dun & Bred street Equity Broking Awards 2009 August, 2008 Crossed 500000 trading accounts November, 2007 ‗Major Volume Driver‘ for 2007 December, 2006 Created 2500 business associates October, 2006 ‗Major Volume Driver‘ award for 2006 September, 2006 Launched Mutual Fund and IPO business July, 2006 Launched the PMS function October, 2005 ‗Major Volume Driver‘ award for 2005 September, 2004 Launched Online Trading Platform April, 2004 Initiated Commodities Broking division April, 2003 First published research report November, 2002 Angel‘s first investor seminar March, 2002 Developed web-enabled back office software November, 1998 Angel Capital and Debt Market Ltd. Incorporated December, 1997 Angel Broking Ltd. Incorporated Page | 19
  20. 20. ANGEL’S LOGOANGEL’S VISION To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and personalized service. Page | 20
  21. 21. Our moto To have complete harmony between quality-in-process and continuous improvement to deliver exceptional service that will delight our Customers and Clients.Our CRM Policy: Customer is KingA Customer is the most Important Visitor on our premises. He is not dependent on us,but we are dependent on him. He is not an interruption in our work. He is the purpose ofit. He is not an outsider in our business. He is part of it. We are not doing him a favour byserving him. He is doing us a favour by giving us an opportunity to do so. Mahatma Ghandi. Page | 21
  22. 22. ANGEL’S BUSINESS PHILOSOPHYBusiness Philosophy Ethical practices & transparency in all our dealings Customers interest above our own Always deliver what we promise Effective cost management Page | 22
  23. 23. Products of Angel Broking 1. Online Trading 2. Commodities 3. DP Services 4. PMS (Portfolio Management Services) 5. Insurance 6. IPO Advisory 7. Mutual Fund 8. Personal loans 9. Quality assuranceOnline- TradingSpecially designed for the net savvy traders and investors who prefer operating from theirhome or office through the internet. The investor can access state of the art Technologywith three different e-broking products and voila trading on BSE, NSE, F & O, MCX andNCDEX.ANGEL DIET Application based product for Traders. Application based ideal for traders. Multiple exchanges on single screen Online fund transfer facility User friendly & simple navigation BSC, NSC, F&O, MCX & NCDEX Page | 23
  24. 24. ANGEL ANYWHERE Application based product for Traders with Charts. Application-based platform for day traders Intra-day/historical charts with various indicators Online fund transfer facility BSC, NSC, Cash & Derivatives ANGELTRADE Browser based product for Active Investors. Browser based for investor No installation required Advantage of mobility Trading as simple as internet surfing BSC, NSC, F&O, MCX & NCDEX ANGEL INVESTOR User-friendly browser for investors Easy online trading platform Works in proxy and firewall system set up Integrated Back office: Access account information – anytime, anywhere Streaming quotes Refresh static rates when required Multiple exchanges on single screen Online fund transfer facilityInvestment Advisory ServicesTo derive optimum returns from equity as an asset class requires professional guidanceand advice. Professional assistance will always be beneficial in wealth creation.Investment decisions without expert advice would be like treating ailment without thehelp of a doctor. Page | 24
  25. 25. Expert Advice: Their expert investment advisors are based at various branches across India to provide assistance in designing and monitoring portfolios. Timely Entry & Exit: Their advisors will regularly monitor customers‘ investments and guide customers to book timely profits. They will also guide them in adopting switching techniques from one stock to another during various market conditions. De-Risking Portfolio: A diversified portfolio of stocks is always better than concentration in a single stock. Based on their research, They diversify the portfolio in growth oriented sectors and stocks to minimize the risk and optimize the returns.CommoditiesA commodity is a basic good representing a monetary value. Commodities are most oftenused as inputs in the production of other goods or services. With the advent of new onlineexchange, commodities can now be traded in futures markets. When they are traded on anexchange, Commodities must also meet specified minimum standards known as basicgrade.Depository ParticipantAngel Broking Ltd has started its depository services by registering with CDSL. Thereare various benefits of holding clients demat account with angel but the biggestadvantage is that a client shall be ensured of a risk free, prompt and efficient depositoryprocess.esTypes of Commoditi Precious Metals : Gold and Silver Base Metals : Copper, Zinc , Steel and Aluminum Energy : Crude Oil, Brent Crude and Natural Gas Pulses : Chana , Urad and Tur Spices : Black Pepper, Jeera, Turmeric , Red Chili Others : Guar Complex, Soy Complex, Wheat and Sugar Page | 25
  26. 26. Benefits at Angel Three different online products tailored for traders & investors. Single Screen customized market-watch for MCX / NCDEX with BSE / NSE. Streaming Quotes and real time Rates. Intra-day trading calls. Research on 25 Agro Commodities, Precious and Base Metals, Energy products and Polymers. An array of daily, weekly and special research reports. Highly skilled analysts with professional industry experience. Active relationship management desk. Seminars, workshops and investment camps for investorsDepositary Participant ServicesAngel Broking Ltd. is a DP services provider though CDSL. We offer depository servicesto create a seamless transaction platform to execute trades through Angel group ofcompanies and settle these transactions through Angel Depository services. Wide branch coverage Personalized/attentive services of trained a dedicated staff Centralized billing & accounting Acceptance & execution of instruction on fax Daily statement of transaction & holdings statement on e-mail No charges for extra transaction statement & holdings statementPortfolio Management ServicesSuccessful investing in Capital Markets demands ever more time and expertise.Investment Management is an art and a science in itself. Portfolio Management Services(PMS) is one such service that is fast gaining eminence as an investment avenue ofchoice for High Net worth Investors (HNI). PMS is a sophisticated investment vehiclethat offers a range of specialized investment strategies to capitalize on opportunities inthe market. The Portfolio Management Service combined with competent fundmanagement, dedicated research and technology, ensures a rewarding experience for itsclients. Page | 26
  27. 27. Angel PMS brings with it years of experience, expertise, research and the backing ofIndias leading stock broking house. At Angel, experienced portfolio management is thedifference. It will advise you on a suitable product based on factors such as yourinvestment horizon, return expectations and risk tolerance.PRODUCT & SERVICE DETAILS AND PORTFOLIO REPORTS : Market Outlook at 9:15 a.m. Technical Report at 6:00 p.m. Derivative Analysis Report at 9:15 a.m. FUNDAMENTAL RESEARCH SERVICES: The Sunday Weekly Report : This weekly report is the ace of all reports. It offers a comprehensive market overview and likely trends in the week ahead. It also presents few top picks based on an in-depth analysis of technical and fundamental factors. It gives short term and long term outlook on these scrip‘s, their price targets and trading strategies. Another unique feature of this report is that it provides an updated view of about 70 prominent stocks on an ongoing basis. The Industry Watch : This report provides an in-depth analysis of specific industries which are likely to outperform others in the economy. It analyzes their strengths and weaknesses and ascertains their future outlook. The final view is arrived at after thorough interaction with industry experts. Also comparative performances of various companies in the sector are evaluated and top picks are recommended. Page | 27
  28. 28. Stock Analysis : Angel‘s stock research has performed very well over the past few years and the Angel Model Portfolio has consistently outperformed the benchmark indices. The fundamentals of select scrip are thoroughly analyzed and an actionable advice is provided along with investment rationale for each scrip.Flash News : Key developments and significant news announcements that are likely to have an impact on markets / scrip are flashed live on trading terminals. Flash news keeps the market participants updated on an online basis and helps them to reshuffle on their holdings.TECHNICAL RESEARCH SERVICE :Nifty Tracker : Nifty Futures is the most traded instrument with highest volumes in F & O and excellent liquidity. The team tracks the Nifty Future and generates calls based on unique trading system which is a result of their focused research over the past few years. The objective is to generate positive returns for traders who are looking for a high risk / high reward product.Online Chart : An online forum to help clients, specifically day traders in judging the directions of the market and stocks which are in the limelight. Page | 28
  29. 29. Intraday Calls : For day traders, Angel provides intra-day calls with entry, exit and stop loss levels during market hours. These calls are flashed on their terminals. Their analysts continuously track the calls and provide recommendations according to the market movements. Position Calls : Angel‘s ―Position Trading Calls‖ are based on thorough analysis of the price movement in select scrip‘s. These calls are for a 10-15 day time span with stop loss and target levels. These calls are flashed on their terminals during market hours. Derivative Strategies : Their analysts take view on the Nifty and select stocks based on the derivatives data and technical tools. Suitable ―Derivative Strategies‖ are devised, which are flashed on their terminals and published in their reports. Futures Calls : A customized product for HNIs to help them trade with leveraged position; wherein clients are advised on the stocks with entry, exit and stop loss level for short term benefits. Over and above this, financial status of the calls is monitored at all times. INVESTMENT ADVISORY DESK:At Angel, they have a dedicated Investment Advisory Desk :- To help manage client‘s equity portfolio and create wealth To help client understand their risk profile and define investment goals realistically To minimize client‘s risk and maximize their returns To help client decide what to buy / sell and when to buy / sell To help client‘s understand macro-economic trends and sectoral / company developments Page | 29
  30. 30. To help client restructure their portfolio based on sound research PORTFOLIO MANAGEMENT SERVICES : Angel offers discretionary PMS to investors in order to assist them in managing their funds amidst continuous changing market dynamics and increasing complexities of investing. Investing in equity market requires in-depth knowledge and thorough analysis coupled with clear understanding of domestic and international economies. Investors need the services of an expert to manage their funds and deliver good returns in diverse market conditions. Continuous wealth creation with and emphasis on capital preservation is essential in today‘s complex markets. In order to systematically diversify the holdings of clients across varied sectors and with and intention to give them handsome returns, Angel devised the concept of the Model. Portfolio :- Angel came out with its first Model Portfolio in August 2002 Since then it has come out with Model Portfolios which have consistently outperformed the Sensex YOY In fact the latest model portfolio by Angel has successfully outperformed the Sensex by a whopping 80%Angel‘s Portfolio Advisory Team had a successful track record of assisting its clients inmanaging their portfolios for over 4 years.The Portfolio Management Process starts with understanding each investor‘s risk appetiteand return expectations. The Portfolio Management Team not only draws support fromAngel‘s in-house research team for new investment ideas but also has its own stockspicking by adopting bottom up research. Page | 30
  31. 31. Salient features of PMS schemes are 100% discretionary, time horizon 12-18 months andWealth creation at minimum risk. PMS SCHEMES @ ANGELScheme 1: Angel OYSTERDescription :The main objective of the scheme is wealth generation by delivering superior returns overlong term through investments and equity related instruments.Investment Strategy : To generate wealth on consistent basis rather than outperform by taking higher risk. Logic works well and thus will be given weight age along with financials Early identification of stocks to ride through the entire investment cycle Timing of investment is important to generate superior returns Bottom –up approachParameters Driving Investment Decision : Blend of growth and value stocks Investments in companies regardless of market capitalizations Keen selection of stocks based on potential for value unlocking based on key events Focus on companies which display Scalable business potential Large market opportunity Beneficiary of favorable economic cycle Valuation at steep discount to asset valueSectoral Composition : May include under- researched companies Portfolio could invested in liquid funds Page | 31
  32. 32. Investor Profile : Safety of capital will be of utmost importance The scheme would be suited for investors having medium to long term perspective (i.e. 12-18 months)Scheme 2: Angel BLUE- CHIPDescription :The objective of the scheme is to generate capital appreciations in the medium to longterm through investments in equities and equity related instruments comprisingpredominantly large cap companies.Investment Strategy : The scheme will seek to achieve returns through brand based participants in equity markets by creating a diversified equity portfolio. The portfolio will be overweight on large cap companies. The portfolio strives at all time to achieve an 80% allocation to large cap companies. The allocation of sectors and stocks in the portfolio may be dynamically structured in tune with changes in broader market conditions Overweight on large cap stock. However quality mid cap stocks may also be considered for investment. Portfolio to comprise of a combination of growth & value stocks. The portfolio strives to limit the exposure to any sector to less than 25% of the portfolio size The portfolio strives to limit the exposure to any stock to less than 10% of the portfolio size The allocation and composition of medium capitalized stocks to vary based market conditions Page | 32
  33. 33. Investor Profile : The scheme would be suited for investors with low to moderate risk appetite The scheme would be suited for investors having medium to long term perspective.Benefits of Angel PMS : Understanding risk : At Angel, utmost emphasis is given to understanding the risk profile of an investor. Periodic Evaluation : Periodic evaluation of the Model Portfolio is carried out and market movements are cashed upon. Administrative Convenience : Angel focuses on providing hassle free administrative / operational support and customized services. Transparency : Regular statements and updates as well as online access to information required for investment. Regular Analysis and Monitoring : Investments undergo regular monitoring and analysis to check any deviation from the structured goal ensuring creation of wealth over a period of time. Professional Management : PMS is provided to professional management by experts on equity with an aim to optimize returns.Angel PMS – Ideal For : Portfolio Management Services from Angel are essential for investor who needed Long term wealth generation Personalized service Investment opportunities in Indian equities Fundamental research based investment decisions Page | 33
  34. 34. In essence, all investor who have faith and belief in the Indian growth story and robustcorporate performance would find Angel PMS most suitable to meet their objectives. ANGEL GOLD : In a volatile market it is very difficult for an investor to pick up value stockswhich will give decent returns in the long run. We at Angel Gold realize your need for aprofessional financial advisor and hence are here to assist you in making wise andprofitable decisions. We strongly believe that right decisions taken at the right time are alwaysbeneficial and thats why our entire research team comprising of 12 sector specialistsalong with our research head will understand your need, return expectation, risk profileand time horizon to design your portfolio accordingly. This portfolio will be trackedregularly and our efforts would be to optimize your returns in the long run.Features of the Angel Gold : A premium service for clients who need professional guidance on long term investments. Minimum fund / portfolio of Rs. 1 lakh and maximum of Rs. 4 lakh eligible for Angel Gold. Appropriate risk profiling before taking investment decisions Periodic group meetings and seminars in branches. Monthly Newsletter from the desk of ―Angel Gold‖ . Browser based back-office software. Page | 34
  35. 35. COMMODITIES SERVICES : Agro Tech Speak : Mainly gives the investors insight into and a forecast for agro commodities viz. pulses (urad, channa etc); reports on oil complex (soybeans castor etc.) along with spices with reports on kapas guar seed.Call Evaluation : A report designed for evaluating the calls given by the angel research team where the reports are classified in 3 broad categories viz. achieved, triumph, not achieved along with the trade recommendations.Commodities Tech Speak : This report mainly equips the investors dealing in MCX segment in commodities like gold, silver, crude oil, copper etc with the market insight and expert recommendation on the trading strategiesAngel Commodity Advantages :Top Quality Research : Professionally qualified analysts with rich industry experience Research on 25 agro commodities, precious metals, base metals, energy products and polymers. E-Broking : Single screen customized market watch for MCX / NCDEX with BSE / NSE Streaming quotes and intraday calls DP Facilities in Commodities Trading on CDSL 24x7 Online Back-office Efficient Risk Management Page | 35
  36. 36. Competitive Brokerage Rates MUTUAL FUND DISTRIBUTION AND ADVISORY :To enable clients to diversify their investment in the right direction, Angel Brokinghas added another product in its range with mutual funds : Customized investment solutions based on specific individual‘s financial goals aligned with client‘s risk appetite. Access to in-depth research and proper selection from diversified funds based on client‘s preferred criteria. Customized reports at desired frequency. Rating and Rankings of all Mutual Funds from in-house expert analysts. Current and historical performance of different funds enabling comparisons. News and alerts for client‘s Mutual Fund Portfolio and performance tracking with watch lists. Online Mutual Funds applications (NFO or existing) / Online order status tracking / online updating of unit holdings at latest NAV / Online dividend payout and re- investment facility. Single point customer query handling. IPO DISTRIBUTION AND ADVISORY : Wide network of branches for better customer reach. Dedicated Research Teams generating sector related reports. Ease in investing with informed decision making. Advisory Help Desk for all IPO related queries. DEPOSITORY PARTICIPANT SERVICE : Angel Broking Ltd. is a DP Service provider through CDSL. They offerDepository Services to create a seamless transaction platform to execute tradesthrough Angel Group of Companies and settle these transactions through AngelDepository Services. Page | 36
  37. 37. Hassle free automated pay-in of client‘s sell obligations by Angel Broking Ltd. / Angel Capital & Debt Market Ltd. Instant disbursement of non-cash benefit like bonus and rights Wide Branch coverage Personalized / Attentive services of trained and dedicated staff Centralized billing and Accounting Acceptance and Execution of instructions on ―fax‖ ―Zero‖ upfront payment and lowest transaction charges Daily statement of transactions and holding statements on e-mail No charges for extra transaction statement and holding statement BROKERAGEFollowing schemes are available for trading Account : Prepaid Scheme A Rs 2000/- per AnnumScheme Type A Table A Table B Brokerage Rate Brokerage Rate (for AMC Scheme (for non AMC Scheme Account) Account)AMC AMC Rs. 2,000 pa NilAccount opening Charges (one time) Speed Trade A/c Speed Trade Account Rs. 1,000 Rs. 1,000 Classic Account Rs. Classic Account Rs. 750 750 Offline Account Offline Account Percentage Min. Paisa Percentage Min. Paisa Page | 37
  38. 38. Cash SegmentTradingFirst Leg 0.07% 05p 0.10% 10Second Leg 0.07% 05p 0.10% 10DeliveryDelivery Brokerage 0.40% 10p 0.50% 50Other charges Cash segment (Trading and Delivery)Stamp Duty Y Y Y YTurnover Tax Y Y Y YService tax Y Y Y YDefault Brokerage — —Futures & Options SegmentFirst Leg 0.07% 01p 0.10% 10Second Leg (same day) 0.02% 01p 0.0% 00Next day 0.07% 01p 0.10% 10Other charges F&O SegmentStamp Duty Y Y Y YTurnover Tax Y Y Y YService tax Y Y Y YDefault Brokerage — — Page | 38
  39. 39. Prepaid Scheme Rs 6000/- per AnnumScheme Type B Table A Table B Brokerage Rate Brokerage Rate (for AMC Scheme (for non AMC Scheme Account) Account)AMC — AMC Rs. 6,000 pa NilAccount opening Charges (one — Speed Trade A/c Rs. — Speed Trade Account Rs.time) 1,000 1,000 — Classic Account Rs. — Classic Account Rs. 750 750 — Offline Account — Offline Account Percentage Min. Paisa Percentage Min. PaisaCash SegmentTradingFirst Leg 0.05% 05p 0.10% 10Second Leg 0.05% 05p 0.10% 10DeliveryDelivery Brokerage 0.25% 10p 0.50% 50Other charges Cash segment (Trading and Delivery)Stamp Duty Y Y Y YTurnover Tax Y Y Y YService tax Y Y Y Y Page | 39
  40. 40. Default Brokerage — —Futures & Options SegmentFirst Leg 0.05% 01p 0.10% 10Second Leg (same day) 0.02% 01p 0.0% 0Next day 0.05% 01p 0.10% 10Other charges F&O SegmentStamp Duty Y Y Y YTurnover Tax Y Y Y YService tax Y Y Y YDefault Brokerage — — Along with these above schemes many other competitive schemes are availablefor customers depending on their volume of trading.OTHER FEATURES :-1. Angel Broking First step Program :-What is:- In the complex world of investing in shares in India, interested beginners didnt have any place they could start out from. This is why Angel Broking started the First Step program - to assist and guide new investors when they take their first steps into the world of investing in shares. This program is explicitly designed for beginners. You will not feel unintelligent when asking questions like "Who owns the Stock Market?" or "What is a stock-split?" since Angel Broking people are trained to assist those taking their first step in the market. Page | 40
  41. 41. Consist of:- The Angel Broking First Step program is a special, never-been-done-before program created by Angel Broking for new investors to the stock market. Despite being a beginner with a small amount to invest, they will still be able to benefit from Angel Broking experience, technology-based tools and research. In fact, Angel Broking have created special versions of all of these for clients - clear and simple information tools for there understanding, demonstrations to help them get started and research re-written in easier language. See how Angel Broking friendly assistance empowers them to become a Stock Market ka Sher.2. Angel Broking Value line :- A monthly investment report based on fundamental research with Stock ideas,Stock Updates, Earning Guide, Stock Recos, Mutual Fund Guide , Market Outlook,Sector Updates.SWOT Analysis :-A SWOT analysis focuses on the internal and external environments, examining strengthsand weaknesses in the internal environment and opportunities and threats in the externalenvironment.PROCEDURE OF CLIENT ACQUISITION :- In the first phase we are given training and we are explained about different things of market about Angel Broking Ltd, its introduction, products and services offered by Angel Broking Ltd. We have been trained by their well experienced Staff. After that we are trained to cope up with the customers, through there well experienced Sales Executives. They provide us leads and we make calls. Three types of leads are provided to us :- People who registers themselves on Angel Broking website willing to be client of Angel broking and want to know about its product. Page | 41
  42. 42. People who have Demat account already with any another broker. (competitors Data) People who are totally unknown to this market. Then after that we have to provide details of product and convince them. People who have already demat account; we have to convince them by giving information about Angel Broking services & benefits. And people who are unknown to share market, we tell them about Angel Broking first step program for fresher. Then we have to visit them and get the formed filled from them. We collect all-important documents from client.PROCEDURE FOR OPENING A DP ACCOUNT WITH ANGEL BROKING :- You can open a Depository Participant (DP) account, either through an Angel Broking branch or through an Angel Broking Franchisee center. There is no fee for opening DP accounts with Angel Broking. However a nominal deposit (refundable) is charged towards services which will be adjusted against all future billings. All investors have to submit their proof of identity and proof of address along with the prescribed account opening form.IN DP ACCOUNT OPENING FORM :- 1. Minor details like name of the branch, name of the client & address and other details of the client required to be mentioned in the form and Agreement. 2. Signatures are required on all pages of the agreement. 3. All the details (Name & address of the client) must be filled. 4. Name, Address & signature of the witness are compulsory. (Please note that 1 witness is required to sign on behalf of the client) 5. Please note that if the signature on the form & the proof provided differs, the form will be liable for rejection. In such cases the client has to get his signatures verified by the banker. Page | 42
  43. 43. 6. Nominee details must be supported by 2 witnesses (Name, Address & signature). 7. Minor accounts, HUF accounts, Corporate accounts, and Accounts having 3 holders cannot have nominees in a DP account. 8. Please note that joint accounts cannot be opened in case Minor accounts and HUF accounts. 9. In case of any corrections on the application form & agreement holders have to counter sign at place of the correction.ACCOUNT OPENING REQUIREMENTS UNDER VARIOUS HEADS :-(i) Proof of Identity (Any one of the following) :- 1. Photocopy of Valid Passport (Page containing the date of expiry also to be attached) 2. Photocopy of Voters Identity card. 3. Photocopy of Valid Driving License (Page containing the date of expiry also to be attached). 4. Photocopy of Pan card 5. Photocopy of MAPIN card 6. Identity card/document with applicant‘s Photo, issued by a) Central/State Government and its Departments, b) Statutory/Regulatory Authorities, c) Public Sector Undertakings, d) Scheduled Commercial Banks, e) Public Financial Institutions, f) Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and g) Credit cards/Debit cards issued by Banks. Page | 43
  44. 44. (ii) Proof of Address (Any one of the following) - (Provided the entire address written on the form matches with the proof):- 1. Photocopy of Ration card. 2. Photocopy of Valid Passport (Page containing the date of expiry also to be attached). (Copy of expiry date also to be submitted) 3. Photocopy of Voters Identity card. 4. Photocopy of Valid Driving License (Page containing the date of expiry also to be attached). (Copy of expiry date also to be submitted) 5. Photocopy of Telephone or Electricity bill. (Government entity only & should not be more than 3 months old) 6. Photocopy of Leave-License / Purchase Agreement. 7. Photocopy of Voters Identity card. 8. Photocopy of Bank Passbook or latest Bank statement. 9. Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own accounts. 10. Identity card/document with address, issued by a) Central/State Government and its Departments, b) Statutory/Regulatory Authorities, c) Public Sector Undertakings, d) Scheduled Commercial Banks, e) Public Financial Institutions and f) Professional Bodies such as ICAI, ICWAI, Bar Council etc., to their Members. (iii) Photocopy of cheque leaf of bank account number mentioned on the form to verify the Bank MICR No.(iv) Latest photograph signed by the client.FOR H.U.F ACCOUNT OPENING REQUIREMENTS :- 1. Signed Photograph of the Karta is required. 2. Proof of Identity of the Karta 3. Pan card of HUF 4. Proof of Address Page | 44
  45. 45. 5. Photocopy of cheque leaf of bank account number mentioned on the form to verify the Bank MICR No. 6. HUF Stamp is required wherever the client signs on the agreement. 7. Letter from the Karta operating the Demat account with the two witnesses of coparceners. 8. No joint names & nominees allowed for HUF accounts.FOR MINOR ACCOUNT OPENING REQUIREMENTS :- The account opened in the name of the minor cannot have second and thirdholders. Further there can be no nominee for minor account. The Guardian has to sign onbehalf of the Minor. 1. Birth Certificate of the Minor. 2. Guardian‘s Proof of Address. 3. Guardian‘s Proof of Identity. 4. Photograph of the Minor & Guardian. 5. Photocopy of cheque leafFOR N.R.I. (NON RESIDENT INDIAN) CLIENT :- 1. Latest photograph signed by the client. 2. Photocopy of Valid Passport (Page containing the date of expiry also to be attached) 3. Proof of Local Address 4. Proof of Foreign Address 5. Photocopy of cheque leaf of bank account number (NRE or NRO) mentioned on the form to verify the Bank MICR No.FOR PARTNERSHIP FIRM :-The account cannot be opened in the name of a partnership firm. It has to be opened inthe name of the partners, as an individual account. Maintaining dairy of clients andcontacting them at regular basis. To get feedback from them about Angel Brokingservices. Page | 45
  46. 46. Customer Relationship Management (CRM) Page | 46
  47. 47. Customer Relationship Management (CRM) is one of those magnificent concepts thatswept the business world in the 1990‘s with the promise of forever changing the waybusinesses small and large interacted with their customer bases. In the short term,however, it proved to be an unwieldy process that was better in theory than in practice fora variety of reasons. First among these was that it was simply so difficult and expensiveto track and keep the high volume of records needed accurately and constantly updatethem. In the last several years, however, newer software systems and advanced trackingfeatures have vastly improved CRM capabilities and the real promise of CRM isbecoming a reality. As the price of newer, more customizable Internet solutions have hitthe marketplace; competition has driven the prices down so that even relatively smallbusinesses are reaping the benefits of some custom CRM programs.In the beginning…The 1980‘s saw the emergence of database marketing, which was simply a catch phraseto define the practice of setting up customer service groups to speak individually to all ofa company‘s customers. In the case of larger, key clients it was a valuable tool forkeeping the lines of communication open and tailoring service to the clients needs. In thecase of smaller clients, however, it tended to provide repetitive, survey-like informationthat cluttered databases and didn‘t provide much insight. As companies began trackingdatabase information, they realized that the bare bones were all that was needed in mostcases: what they buy regularly, what they spend, what they do.Advances in the 1990’sIn the 1990‘s companies began to improve on Customer Relationship Management bymaking it more of a two-way street. Instead of simply gathering data for their own use,they began giving back to their customers not only in terms of the obvious goal ofimproved customer service, but in incentives, gifts and other perks for customer loyalty.This was the beginning of the now familiar frequent flyer programs, bonus points oncredit cards and a host of other resources that are based on CRM tracking of customeractivity and spending patterns. CRM was now being used as a way to increase salespassively as well as through active improvement of customer service. Page | 47
  48. 48. Introduction Customer Relationship Management - CRMThe generally accepted purpose ofCustomer Relationship Management (CRM) is to enable organizations to better serve its customers through the introductionof reliable processes and procedures for interacting with those customers .In todayscompetitive business environment, a successful CRM strategy cannot be implemented byonly installing and integrating a software package designed to support CRM processes. Aholistic approach to CRM is vital for an effective and efficient CRM policy. Thisapproach includes training of employees, a modification of business processes based oncustomers needs and an adoption of relevant IT-systems (including soft- and maybehardware) and/or usage of IT-Services that enable the organization or company to followits CRM strategy. CRM-Services can even redundantize the acquisition of additionalhardware or CRM software -licences. The term CRM is used to describe either thesoftware or the whole business strategy oriented on customer needs. The second one isthe description which is correct. The main misconception of CRM is that it is onlysoftware, instead of whole business strategy.Major areas of CRM focus on service automated processes, personal informationgathering and processing, and self-service. It attempts to integrate and automate thevariouscustomer servingprocesses within a company.There are three parts of application architecture ofCRM:operational - automation to the basic business processes (marketing, sales, service)analytical - support to analyse customer behaviour, implements business intelligencealike technologyco operational - ensures the contact with customers (phone, email, fax, web...)Operational part of CRM typically involves three general areas of business. They are(according to Gartner Group) a Enterprise marketing automation (EMA), Sales forceautomation (SFA) and a Customer service and support (CSS). The marketing informationpart provides information about the business environment, including competitors, Page | 48
  49. 49. industry trends, and macro environmental variables. The sales force management partautomates some of the companys sales and sales force management functions. It keepstrack of customer preferences, buying habits, and demographics, and also sales staffperformance. The customer service part automates some service requests, complaints,product returns, and information requests. Integrated CRM software is often also knownas "front office solutions." This is because they deal directly with the customer. Manycall centers use CRM software to store all of their customers details. When a customercalls, the system can be used to retrieve and store information relevant to the customer.By serving the customer quickly and efficiently, and also keeping all information on acustomer in one place, a company aims to make cost savings, and also encourage newcustomers.CRM solutions can also be used to allow customers to perform their ownservice via a variety of communication channels. For example, you might be able tocheck your bank balance via your WAP phone without ever having to talk to a person,saving money for the company, and saving you time.Improving customer serviceCRMs are claimed to improve customer service. Proponents say they can improvecustomer service by facilitating communication in several ways:•Provide product information, product use information, and technical assistance on websites that are accessible .Help to identify potential problems quickly, before they occurProvide a user-friendly mechanism for registering customer complaints (complaints thatare not registered with the company cannot be resolved, and are a major source ofcustomer dissatisfaction)Provide a fast mechanism for handling problems and complaints (complaints that areresolved quickly can increase customer satisfaction)Provide a fast mechanism for correcting service deficiencies (correct the problem beforeother customers experience the same dissatisfaction) Page | 49
  50. 50. Identify how each individual customer defines quality, and then design a service strategyfor each customer based on these individual requirements and expectationsuse internet cookies to track customer interests and personalize product offeringsaccordinglyuse the internet to engage in collaborative customization or real-time customizationProvide a fast mechanism for managing and scheduling follow up sales calls to assesspost-purchase cognitive dissonance, repurchase probabilities, repurchase times, andrepurchase frequenciesProvide a fast mechanism for managing and scheduling maintenance, repair, and on-going support (improve efficiency and effectiveness)Provide a mechanism to track all points of contact between a customer and the company,and do it in an integrated way so that all sources and types of contact are included, and allusers of the system see the same view of the customer (reduces confusion)The CRM can be integrated into other cross-functional systems and thereby provideaccounting and production information to customers when they want itImproving customer relationshipsCRMs are also claimed to be able to improve customer relationships . Proponents say thiscan be done by:CRM technology can track customer interests, needs, and buying habits as they progressthrough their life cycles, and tailor the marketing effort accordingly. This way customersget exactly what they want as they change. Page | 50
  51. 51. The technology can track customer product use as the product progresses through its lifecycle, and tailor the service strategy accordingly. This way customers get what they needas the product ages.In industrial markets, the technology can be used to micro-segment the buying centre andhelp coordinate the conflicting and changing purchase criteria of its membersWhen any of the technology driven improvements in customer service (mentioned above)contribute to long-term customer satisfaction, they can ensure repeat purchases, improvecustomer relationships, increase customer loyalty, decrease customer turnover, decreasemarketing costs (associated with customer acquisition and customer ?training?), increasesales revenue, and thereby increase profit margins.Technical functionalityA CRM solution is characterised by the following functionality:scalability - the ability to be used on a large scale, and to be reliably expanded to whatever scale is necessary.multiple communication channels - the ability to interface with users via many differentdevices (phone, WAP, internet, etc)workflow - the ability to automatically route work through the system to different peoplebased on a set of rules.database - the centralised storage (in a data warehouse) of all information relevant tocustomer interactioncustomer privacy considerations, e.g. data encryption and the destruction of records toensure that they are not stolen or abusedPrivacy and ethical concerns Page | 51
  52. 52. CRMs are not however considered universally good - some feel it invades customerprivacy and enable coercive sales techniques due to the information companies now haveon customers - see persuasion technology. However, CRM does not necessarily implygathering new data, it can be used merely to make "better use" of data the corporationalready has. But in most cases they are used to collect new data.CRM PlanningCRM Planning: Keys for Project SuccessWhether youre updating, upgrading, jump-starting, or restarting your CRM efforts, somebasic steps will help keep you on the path to a positive ROI.Thinking about the potentialROI of your customer relationship management (CRM) project should start during theselection process. Before you write an RFP or start talking to vendors, you need to dosome homework to ensure that youre on the right track to maximize ROI.Identify the Problem — and the SolutionBefore you start thinking about vendors, you should define your problem in clearbusiness terms. Do you need to improve management visibility into the sales pipeline?Reduce customer support costs or improve customer support? Reduce customer-relatedadministrative overhead? Making your CRM challenges specific will help you determinewhich technologies or components are most likely to deliver ROI and how you canprioritize your development and deployment plans. Most companies CRM goals fall intoa couple of main categories:•Improved sales performance •Improved managementvisibility •Improved customer support •Improved marketing •Reduced costs If your CRMgoals fall into more than two of these categories, youll likely want to prioritize one overthe other and plan a phased deployment. Its also a good idea to know at this point whatyour likely budget is, how flexible it is, and what your procurement officer or CFO willbe looking for in terms of business justification. If you know walking into the project thatyoull need to show a six-month payback period, for example, you can plan accordingly.Make the Short ListRegardless of your relationship with existing vendors, previous experience, andtechnology environment, you should make a short list of potential vendors and give thema fair evaluation before you make a decision. Your short list should be easy to definebased on these factors:•Your CRM goals. The vendors whose functionality meets yourneeds will depend on whether youre looking for improved sales, improved reporting andforecasting, improved support, improved marketing, or a combination of different Page | 52
  53. 53. customer-related technology. •Your existing environment and IT philosophy. Do youhave existing databases, order systems, or contact lists that will need to be integrated ormigrated into your CRM solution? Do you expect to do your own development or useconsultants or systems integrators? Are you comfortable outsourcing your sales andmarketing data in its entirety - or in part? Answering these questions will help youdetermine whether a large-scale CRM infrastructure, a hosted solution, a point solution,or a broad solution is likely to deliver maximized ROI. •Your user dynamics. Are theemployees you expect to use the solution technology savvy and open to change, or arethey the ones still using pencils and paper to track leads? The greater the magnitude ofthe change you expect them to make, the greater the risk that adoption will slow the ROIof your project. •Your budget. CRM solutions such as Siebel and SAP can cost millionsof dollars to deploy and require a team for ongoing support and maintenance. On theother end of the spectrum, Microsoft CRM and Front Range (for example) can costconsiderably less. You can expect a hosted solution to have a minimal upfront investmentand from $500 to $1,500 per user per year. Clearly defining your requirements andcharacteristics in each of these key areas will prepare you for the next step - evaluatingeach individual solutions ability to deliver returns based on the costs and benefitsassociated with a deployment.Check ResumesOnce youve identified the likely vendors to deliver the best solution for you, youll wantto check their references - and this doesnt mean just reading case studies on their Websites. Look to independently developed case studies and your own interviews withreferences to learn about their decision process, project successes and challenges, andwhether or not their spending - and benefits - met expectations.In the CRM world, few companies will deploy a solution without some help fromexternal consultants or systems integrators. Selecting and planning how you work withconsultants is just as important to your projects success as the technology you choose.Justify Your InvestmentOnce youve identified your goals and selected a short list of vendors, you can use astructured evaluation of costs and benefits to determine the best solution in terms of ROIand build the business case for moving forward. On the costs side, youll want to considerthe initial and ongoing software, hardware, consulting, internal personnel, and trainingcosts associated with the project. Here are a few guidelines to keep the ROI from yourCRM project on track:•You should spend less on software and consulting than 70 percentof expected annual direct benefits. •You should be able to deploy and achieve somereturns in fewer than six months (even if its only a pilot). •For a hosted solution, youshould see benefits in fewer than 60 days. •Consulting costs should not be more than Page | 53
  54. 54. twice your initial software investment. •Training users should take fewer than four hours.On the benefits side, youll want to consider both direct and indirect benefits. Prioritizeyour expected benefits from most direct to most indirect, and then work on yourestimates, using internal surveys, case study data, and reliable benchmarking informationas a starting point for quantifying expected benefits for your company.Key Decision FactorsBy and large, theres no such thing as a bad CRM solution. Most solutions deliver valuewhen theyre chosen based on clear business needs and deployed correctly. Once youveidentified your CRM needs and your short list, there are a number of factors to considerto help you make the right solution decision.User AdoptionIn evaluating the type of CRM solution that will be best for your organization in terms ofuser adoption, youll want to consider two key factors:•The willingness of users to adoptthe application. Adoption can often be as much about politics and culture as it is abouttechnology. Successful adoption will also depend on how much users will have to changetheir normal way of doing work to use the solution. •The technology ability of potentialusers. Many CRM solutions are complex and difficult to use; others have a more intuitivelook and feel. Choose a solution that fits the abilities of your users. Once youvedetermined where your organization fits, youll want to consider both the complexity ofthe solution and ease (or difficulty) involved in adding and evolving functionality overtime as your needs change and your users become more comfortable with the solution.Here are some red flags you should look out for in evaluating solutions in terms of useradoption:•Plans for extensive customization •Multiple components that will be integratedto meet your needs •Lack of a track record supporting "your kind" of sales reps•Functionality planned "for the next release" •An extensive training program •Ongoingconsulting requirements for any changes or updatesCostIn CRM, "you get what you pay for" isnt always true. In fact, many companies in thepast have overspent on CRM components and features that never delivered value to theirusers - if they even made it out of the box. Youll have the most success with a measuredapproach that doesnt have to include a hefty initial license fee.Existing EnvironmentWhat other solutions and data sources do your sales or customer support representativesuse today, what solutions are they most comfortable using, and what will need to beintegrated in some way into the CRM solution you choose to deliver value? How you Page | 54
  55. 55. integrate existing resources and applications into a CRM project should not be anafterthought. In selecting a vendor, youll want to explore how it can integrate with yourexisting environment. Demand to see a track record with reference customers in a similarsituation.Best Practice: Make a MatchOne company chose Microsoft CRM because it would easily integrate with back-endoffice applications, because the sales force was already familiar with the Microsoftinterface look and feel, and because the design of the application closely matched itsexisting business processes. It achieved a payback of five months.FlexibilityIn addition to the initial development, integration, and deployment, when selecting asolution, you should consider how easy it will be to make changes over time as yourneeds change. In all likelihood, the way you use CRM will change over time - and theflexibility of the application to enable you to support those changes can have a significantimpact on the ongoing cost of the solution.Best PracticesOnce youve determined which solution is right for you and built the business case, youllwant to make sure you have the key checkpoints in place so that the project delivers onyour ROI expectations. Pricing and Purchasing Before you sign on the dotted line, makesure youve done due diligence on your contract with the vendor. Double-check thefollowing:•Is the initial license price per user in line with industry benchmarks?Are you paying less, more, or the average annual industry maintenance? If you decide tostop paying maintenance in the future, does your contact support that? •If yourepurchasing multiple modules at the same time, do you have a clear view of the cost ofeach item? Are you sure you should be buying them all now, or would a phased approachbe better? •What commitment has the vendor made to your deployment time line? If athird party is involved, how are the deployment risk and responsibility being shared?DeploymentPiloting a CRM solution can be a great way to judge both whether or not the solution willwork for you and how flexible and agile the solution (and vendor) is in responding tospecific needs. Most hosted solution vendors offer a free or nearly free pilot option today;depending on the level of customization and integration needed, a pilot of an internalsolution before you buy may or may not be possible.Best Practice: Pilot First Page | 55
  56. 56. One company deploying an People CRM solution used an initial pilot at one location toevaluate the application and get valuable feedback on how and when the software shouldbe expanded to other locations. Even after youve made the commitment, piloting to aselect group of users before you complete customization is a good way to determinewhether or not the solution works - and to gain valuable feedback on how and with whatchanges the solution should be rolled out to the broader population.Best Practice: Phase In FunctionalityOne company deploying a JD Edwards CRM solution found that while it achieved apositive ROI, it could have accelerated user adoption and thus shortened its paybackperiod by introducing functionality to users in phases. A phased approach would havereduced initial customization costs and the need to train users, who were somewhatoverwhelmed by the features of the solution.Fine-Tuning Your ROIIf youve picked the right vendor, planned a deployment with clear milestones, and gottenusers on board, youve probably received 70 percent of the ROI you can expect. The trickto really successful CRM is continuing to evaluate and evolve your solution to delivergreater value. Youll also want to keep track of potential upgrade opportunities and take aclose look at the business case - both the benefits of upgrading and the time and painassociated with the upgrade - before you make a change.CRM in BusinessIntroductionIn this day and age the use of internet sites and specifically e-mail, in particular, aretouted as less expensive communication methods, compared to traditional methods liketelephone calls. This revolutionary type of service can be very helpful, but it iscompletely useless if you are having trouble reaching your customers. It has beendetermined by some major companies that the majority of clients trust other means ofcommunication, like telephone, more than they trust e-mail. Clients, however, are not theones to blame because it is often the manner of connecting with consumers on a personallevel making them feel as though they are cherished as customers. It is up to thecompanies to focus on reaching every customer and developing a relationship.CRMsoftware can run your entire business. From prospect and client contact tools to billinghistory and bulk email management. The CRM system allows you to maintain allcustomer records in one centralized location that is accessible to your entire organization Page | 56
  57. 57. through password administration. Front office systems are set up to collect data from thecustomers for processing into the data warehouse. The data warehouse is a back officesystem used to fulfill and support customer orders. All customer information is stored inthe data warehouse. Back office CRM makes it possible for a company to follow sales,orders, and cancellations. Special regressions of this data can be very beneficial for themarketing division of a firm.CRM Software: A key to scalability and efficiencyCRM Software provides added strength to your existing plan.CRM software is not a "cure-all" for the CRM program in your business. Successfullaunch of a CRM software campaign requires a strong CRM plan for your business, withcomplete objectives and clear priorities. CRM software can offer incredible accuracy,track-ability and detailed follow-up capabilities.How do you choose CRM Software?Does the emphasis of the CRM software package match the emphasis of your CRMobjectives? Identify your specific objectives and verify your CRM software can meetthose needs.Is your software user friendly? If you cant effectively use the software why use it? CRMsoftware training is usually available by contacting the vendor and asking forrecommended referrals.How do other companies feel about the software? Call the provider company and ask fora number of preference (preferably three or four companies in similar size and scope).What are some key components of CRM software?History and Trend ManagementHistory Tracking - get instant perspective into all customer interactions Page | 57
  58. 58. Trend Management- see the status of all pending sales and potential revenue of entirepipelineCRM Software Automated ProcessesRemote Web Synchronization- automatically follow-up with leads generated from yoursiteAutomated Process Management - allows consistent communication with customer basedon user-defined criteriaCRM software Data-base InformationCentralized Information - centralize, manage and simplify access to critical businessinformationIndustry Templates and Form s- allows access to a database of industry specific CRMformsCRM Software Sales and Marketing AnalysisSales & Quota Analyses - view forecasted sales, closed sales, and comparisons betweensales and quotaLeads Analysis - track responses to identify effective campaignsCRM Software Mobil Technology CapabilitiesSynchronization Wizard - keep calendar and contact information up-to-date on your PDAor laptop while you travel Page | 58
  59. 59. Remote Access Capabilities - access your CRM software through the internet. Not allCRM software packages are the same. They will greatly range in price and capabilities.CRM Advisor suggests a thorough evaluation is done comparing multiple CRM softwarepackages.Analytic CRMThe Retailers Data Challenge Today‘s retail environment includes increased competition among stores, a generaleconomic downturn, rising interest rates and higher gas and heating oil prices. All ofthese factors have reduced the disposable income available to many retailers, corecustomers. In this economic environment, retailers must learn to generate more businessfrom their existing customers. To do this they must first mine the data they havecollected on customer purchases and loyalty programs. Still, retailers are drowning incustomer data.Critical customer information is inaccessible and underutilized.More decision-makers need more access to consistent corporate data about theircustomers.Loyalty program, POS, and demographic databases exist, yet are not integrated within aretail corporation.Merchandisers and direct marketers lack expertise in the standard analysis applicationssold by business intelligence vendors today.Current retail data analysis systems require heavy IT resources to maintain and utilize.According to The Marriage of Category Management & Customer Management, writtenby Gary Robins and published in RIS, July 1999, .Category Management and promotionmanagement need to include analyses of loyal customers. Failure to consider the effectson loyal customers‘ means resources spent on category management and promotionmight be and probably is in some or many cases harming your business. Combiningcategory and loyalty data analysis has been done before, but with great difficulty. Thebiggest hurdle now is getting robust, fast databases to handle the huge amount ofintegrated data.Customer view was designed to address these retail data challenges. CustomerViewsupports the retailers. Top marketing objectives to solve these problems:Reward loyal shoppers and get them to buy more Page | 59
  60. 60. According to Robert Blattberg, director of the Center for Retail Management at Northeastern . Kellogg Graduate School of Business, a study of a chain drug retailer showed a30%/70% split, meaning the top 30% of their customers generated 70% of their revenues.It also revealed which categories were more important to top and bottom level customers.In another example, a small regional chain with seven stores targeted 18,000 of their bestcustomers based on recently and overall dollar amount spent. Of the 18,000 customersmailed, 921 responded, generating a 5.1% response rate. Total revenue brought in fromthis particular promotion was in excess of $227,000 generating more than $22 for everydollar spent on the promotion. The events average transaction was $24744 an almost $50increase from their normal average transaction.If your firm is not the lowest cost producer in the category and your switchers are pricesensitive, the best marketing strategy for addressing price-sensitive purchasers is toattempt to change their preference structure by raising their awareness of, and preferencefor, specific brand/product attributes, whether they are tangible or intangible. Then try topersuade these Price Sensitive Purchasers that your offering has the better value, allthings considered. The goal is to increase sales and market baskets of top switchers.Optimize trade areas and improve assortments store-by-storeA leading supermarket chain recently used data from loyalty programs to edit whichproducts to delist in a category. .It is not just sales, it is how it is affecting loyalcustomers,. was the mantra from the chain. In a test of the carbonated. beverage category, the chain did not lose customers even after eliminating 26% of thecategory. SKUs.Cross-sell the most profitable products and increase the average basket sizeA leading beverage company, which has been working with over 40 retailers, says thatuse of loyalty data does help retailers increase basket size. According to a seniorcategory manager, .we did a presentation with a small chain in Houston, Texas, and thiscompany had a 6.5% increase in dollars per basket and a 9.8% gain in total dollars amongtheir best shoppers.Maximize ROI for programs funded with manufacturer co-op fundsA national retailer recently completed a targeted promotion with a leading CPGcompany. 350,000 pieces were mailed bringing the retailer an additional $124,000 of co-op dollars. The piece featured 10 different products, received 16.4% response rate, andthe market basket of the responders was 40% greater than the non-responders.Who can benefit by using Customer view? Page | 60
  61. 61. Customer view is targeted at five key audiences within the retailer‘s organization:FinancialCustomer view enables retailers to take existing customer data and use it to driverevenue, increase market basket size, and build market share with no additional capitalexpenses and labor costs. It enables the CFO to show increased margins on currentcapital and enables profitable growth.MerchandisersCustomer View enables merchandisers to improve the effectiveness of their staff. UsingCustomer view, merchandisers can quickly see how certain products can increase marketbasket size. Using Customer view they can see how merchandise mixaffects customer loyalty and adjust their assortment accordingly. Customer view canhelp merchandisers measure and build retention. It can show market basket value ofloyal vs. non-loyal customers. Customer view can quickly help identify the value of aconsumer that shops in critical categories vs. the shopper that does not.OperatorsCustomer view can help Operations Executives make changes in an intelligent way.Using Customer view a retailer can keep labor constant while increasing margins.CustomerView can help increase the depth of category purchases by turning cherrypickers into buyers, increasing a loyal customers shopping trips to a category andincreasing overall market basket size.ConsultantsLoyalty and POS databases tend to be stand-alone systems not integrated with categorymanagement systems. Most data is un cleansed and hosted in many locations. This leadsto many opportunities for consultants to create systems to clean the data, aggregate thedata, de-duplicate the data, household the data, etc. before the data enters the Customerview system. There are also many opportunities for consultants to use Customer view tohelp the retailers interpret, translate, and develop strategies based on the information andprovide business practice recommendations. Page | 61
  62. 62. VendorsCustomer view can help CPG manufacturers build category/brand sales by using realretail data. Customer view can help them build their share of market by identifyingcustomers buying a particular category of products, but not their brands. Customer viewcan show the CPG manufacturer how to increase multi-segment sales by identifyinglikely purchase behavior across divisions, departments or categories.Optimizing Customer Interactions and Marketing AnalyticsCustomer conversations and new analytical marketing techniques make dynamiccustomer relationship optimization a new top priority.Business competence comes down to a company‘s ability to generate value by usingmeaningful propositions, relevant interactions, messaging, information, andconversations thatcustomers find compelling. The most important thing that CRM can do for you today andtomorrow is help you create effective conversations that are crafted with credible, holisticintelligence and delivered to the right customer on the right channel at the right time.Businesses need to create economic value, which requires understanding customers andthen engaging them with value propositions. The single most important event thathappens in business is a customer conversation. The conversation is where economicvalue begins – revenues, activity, paychecks, and shareholder value. Every companyshould make the composition of those ―value props‖ its highest priority. But are theydoing so? How well do businesses create conversations? How much do firms optimizeopportunities? What are some of the best firms driving new customer value? This latestmanagement challenge is being addressed by the best of- breed CRM analytical tools thatprovide marketers with the intelligence to understand customers so that valuepropositions are relevant and arrive at the most opportune time for the customer. The newanalytics provide capabilities for companies that wish to make it a business priority tocreate uniquely effective value propositions. The interesting thing is that customersexpect it. Yes, customers expect you to know them – and to treat them as persons andremember every contact and transaction they‘ve ever made. This idea has been inexistence for a decade, since database marketing began to grow in popularity and use.B2B or B2C or B2B2C buyers now instinctively believe that their providers should knowthem.―Initially flattered by being treated less as a number and more as an individual withdistinct requirements, consumers are now communicating their demands back to theirsuppliers. Where once they would not consider the idea of bargaining, they now tell themanagers of brand retail chains what they are prepared to pay and specify how they want Page | 62