Tesco vs Reliance CRM Practices


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Tesco vs Reliance
the all you want to know about CRM practices of indian retail and uk retail

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Tesco vs Reliance CRM Practices

  1. 1. CRM Practices in Retail Industry Presented By:- Aditya Sharma Ameya Karve Ankur Ahir Kaustubh Zinzuwadia Maulik Buddhdev Yaseer Khan
  2. 2. What is CRM? • Information industry • Methodologies, software & internet capabilities. • Manage customer relationship. • Organized and efficient manner.
  3. 3. CRM software for retail
  4. 4. 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. 6. CLOUD ARCHITECTURE • Software as a Service: • Platform as a Service: • Infrastructure as a Service:    
  7. 7. Shift in Data storage • Physical storage devices • Cloud storage
  8. 8. 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.
  9. 9. 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.
  10. 10. 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.
  11. 11. 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.
  12. 12. 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
  13. 13. 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 £
  14. 14. TESCO CRM IMPLEMENTATION • Video to be attached here.
  15. 15. 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
  16. 16. • 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.
  17. 17. • 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.
  18. 18. • 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.
  19. 19. • 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.
  20. 20. 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.
  21. 21. CRM Reliance Retail Reliance Industries Ltd.
  22. 22. "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
  23. 23. Different Retail sectors in Reliance • Reliance Industries Limited • Reliance Fresh • Reliance Trends • Reliance Mart • Reliance Petroleum • Reliance Jewel
  24. 24. 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
  25. 25. Measures taken Inform through SMS Regional policy adopted Feedback callingMore new technologies adopted
  26. 26. 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).
  27. 27. 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.
  28. 28. 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.)
  29. 29. 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.
  30. 30. 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
  31. 31. 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.
  32. 32. 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.
  33. 33. 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”.
  34. 34. CRM Creative Concepts
  35. 35. 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.
  36. 36. 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
  37. 37. 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
  38. 38. 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
  39. 39. CRM MySAPCRM
  40. 40. CRM MySAPCRM Identifying biz target gaps
  41. 41. CRM MySAPCRM Final campaign effectiveness = 80%
  42. 42. Comparison • Lack of adoption of CRM software by employees. • Poor communication • Advance reporting • Work force management • Inventory management • Customer Centric view
  43. 43. Difference between TESCO AND RELIANCE
  44. 44. 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.
  45. 45. Future Trends in CRM • Products in accordance with customer’s mindset. • More action than transaction. • Smart shopping. • International players • Social CRM
  46. 46. THANK YOU