Case study on Shopper’s Stop Creating Customer Value, Satisfaction and Loyalty Report by Girish S.Sivasankaran Srinath Manivannan M.Sivanandam S.Karthikeyan Arindam Chatterjee Santosh Kumar Kesarwani
Summary The CRM initiative of Shoppers Stop entirely revolves around the concept that cost ofacquiring new customer is higher than that of retaining existing one.Shopper’s Stop very brilliantly imbibed this philosophy into its corporate strategy and the totalsuccess of this initiative can be attributed to religious implementation at every step and a wholehearted effort to deliver “feel great” experience at every point of customer interface.Shopper’sStop (SS) has converted the concept of retail into an experience, an indulgence.Business Analytics SS Initiated a Project Dhrishti (Data Warehouse) to maintain a standardized timely and accurate customer database. With the help for SAS BI server and Enterprise miner they analyzed the variety of consumption by different customers using which they were able to bring innovative customer loyalty programs. Analysis helped them understand share of wallet ,study target market demographics to assist their buying and merchandising decisions It also improved their performance in areas of inventory and vendor management, loss prevention and financial analysisTechnology SS is one of those first few retail chains which introduced scanners and bar codes and also encouraged the use of fully computerized operations. Also has ERP which helps in quick decision making process- open new stores faster, get necessary information online.First Citizen Program First Citizen is one of the very significant loyalty programs of Shoppers’ Stop. This was designed with an objective of making the customers feel special. Special priority was given to the members like separate billing desk, customer service desk etc., Also the members became a part of first citizen club by paying an application fee of Rs.150. This was also apparently a revenue generating method adopted by Shoper’s stop. First Citizen Program has 1.5 million active members across India. 73% of total revenue was obtained by the first citizen holders.
Co- branding and Loyalty initiatives Shopper’s stop made a tie-up with Citibank and introduced First citizen Citibank card. It was the first retail shop to rope in any financial services for co-branding initiatives It also brought in Citibank stall, making the availability of loans from Citibank easy for its customers, which proves SS’s aim on creating customer delight than just satisfaction. 50% of Shopper’s stop sales are drawn from well managed customer retention programs SKIDS was another innovative offer introduced to cover the kids of the first citizen card holders. Shopper’s stop also enrolled in ICGDS in par with the existing 29 celebrated retail shops worldwide, this is also a milestone in creating an accreditation among the customers and may also help in expanding the customer base.Conclusion With several initiatives Shopper’s stop has emerged a successful retail shop among thetough retail completion. Form this case it is for sure that shopper’s stop has gained the “First moveradvantage”. However analysis on competitor’s strategies is essentials as it will through lights on theareas where shopper’s stop can improve, so that it can capture and sustain No.1 position in market,profitably.