Flipkart implemented a CRM system to centralize customer data, improve the customer experience across channels, and increase customer retention. The CRM system allowed Flipkart to gain valuable customer insights, run targeted marketing campaigns, improve demand forecasting and inventory management, and enhance after-sales customer service. As a result, Flipkart saw increased sales, higher repeat customer rates, and faster growth.

1. CRM IN FLIPKART
GROUP 4
PRIYARANJAN MOHANTY(UM15036)
JAYDEEP SAHOO(UM15023)
SUMIT SUMAN(UM15051)
SHREEKUMAR SAHU(UM15054)
SWAGAT DAS(UM15055)
VIVEK TRIPATHY(UM15062)

2. Introduction
• Flipkart is an Indian e-commerce company which is founded by Sachin Bansal and Binny
Bansal in 2007. It is headquartered in Bengaluru, Karnataka. The Bansals control 37% of
Flipkart equity, Accel Partners and Tiger Global together control 48% and the management
holds the remaining 15%.
• Flipkart started out with the goal of offering customer delight and aspires to be the “amazon
of India”.
• Flipkart started its journey in 2007 with only one category i.e. books. It gradually moved to
other categories such as media(2010),electronics, stationery, white goods ,personal
care(2011),toys, poster and apparel(2012).Flipkart revolutionized the way Indian e-commerce
worked by bringing in variety, new payment methods and convenience in its operation
processes.
• The company has 22 million registered users today.

3. Product/Services
Exclusive Product Launches
• Motorola Mobility, in an exclusive tie up with Flipkart launched its
budget smartphone Moto G in India
• Xiaomi Mi3 produced by Xiaomi Tech was launched in India on an
exclusive tie-up with Flipkart
• Flash sale of the Xiaomi Redmi 1S budget Android smartphone
which was launched in India in July 2014
In-house Products
• In July 2014 Flipkart launched its own set of tablet, mobile phones
& Phablet
• Flipkart launched its first networking router, under its own brand
name named DigiFlip
• In September 2014 Flipkart launched its in-house home appliances
and personal healthcare brand Citron

4. Business Canvas: Flipkart
Key Partners
• Equity Partners: Accel and Tiger Global
• Advisory and restructuring: Indus Law
• Distributors and suppliers
• Authors and publishers
• Companies across various categories
Customer Segments
• Youth
• Avid book readers
• Tech savvies
• Online shoppers
• Trend setters
Cost Structure:
 Infrastructure costs
 Manpower costs
 Platform maintenance costs
Revenue Streams
 Online sales
Customer Relationships
 word of mouth
 online & interactive
advertising
 social media
Key Activities
 Platform management
 Platform promotion
 Service provisioning
Key Resources
 Hardware & software for
platform
 Manpower
 Capital

5. Why CRM at Flipkart
• Efficient gathering of data (sales information, delivery details, web traffic and real time analytics)
• Controls scaling of demand by allowing additions and tweaking of requirements
• Information such as customer churn rate, repeat customers, frequency of purchase, etc. can be derived
• Enables thorough integration of all the channels at the back end to deliver quality consumer experience
• Reaches out to customers through several channels such as email, customer care or chat support
• Automates repetitive processes
• Reduces the order processing costs
Key Value Propositions by Flipkart:
• Variety
• Convenience
• Reliability
• Best Price
• Quality customer service
• Credibility
• Speed

6. IT Architecture
 Based on LAMP architecture
• Common way of designing
modern day websites based on
freely available and reliable open
source technologies.
• Cost effective and reliable way of
building websites
• Helps in the backend scaling of
the website and integration with
ERP (and CRM) capabilities

7. There are essentially four
technology teams within
Flipkart as an organization:
• Website development and
maintenance
• Data Analytics/Business
Analytics (Data mining and
warehousing)
• ERP (CRM comes here)
• Platform Management
(integrating sales force
automation and managing
forward/backward
integration with other
technologies)

8. CRM Framework

9. Operational CRM • Sales Force Automation is the application of
technology to support regular sales functions
and includes tools that are employed by
users to perform administrative and other
repetitive tasks.
• SFA transforms repetitive and routine
manual processes to automated processes,
which helps sales reps operate in a more
efficient manner. For example, applications
such as quarterly automated sales reports
and calendaring tools are key elements of
sales technology.
• The domain for SFA applications includes the
attainment and storage of information. SFA
tools assist sales reps in formulating a
professional sales encounter. Sales reps can
remain in contact with distant customers via
e-mails and cell phones, thus reducing travel
hours. They can also receive and manage
orders from customers in an easy, timely
fashion.

10. Analytical CRM
Customer knowledge discovery
Flipkart has an amazing recommendation system at place to make product discovery faster and seamless. The
recommendation system used by Flip Kart predicts user’s intent and helps connect them with products they need
or perhaps be interested in an automated manner.
They help users in following ways :
Help find: similar products. (Ex: recommendations to buy a apple phone when surfing nokia phones.)
Help decide. (Ex: people who viewed this ended up buying.)
Complete the purchase experience. (Ex: cases for phones, laptop bags etc.)
Excite or wow. (Ex: New Offering etc.)
Recommendation system= data + algorithms.
Formula:
Recommendation Score = ( i * i ) / ( n1 * n2).
Where,
i = count of occurrences of items i1, i2 together.
n1 = # of occurrences of the item i1 alone.
n2 = # of occurrences of the item i2 alone.
It uses collaborative and content based filtering methods to generate recommendations for users.

11. Customer Segmentation
1. Potential Customers (a.k.a. Prospects)
• They have demonstrated interest in its products but they
are not yet ready to commit to a purchase
• A combination of strategic branding, targeted coupons
and product education should work well to engage this
type of customer
2. First-Time Buyers (a.k.a. One-time buyers)
• These are customers who have only completed a
single purchase with Flipkart.
• With this customer segment, its goal should be to
turn them into repeat buyers.
3. Repeat Customers
• Shoppers who have made two or more separate
purchases.
• These are customers who enjoyed its product enough
the first time to return and place another order
• It must cherish these users as they may become brand
evangelists who are loyal and regularly refer friends to
Flipkart
• It must respond quickly to customer service requests
and experiment with ways to encourage them to place
additional orders.
4. Active Repeat Customers (a.k.a. Loyal
customers)
• Customers who have placed multiple orders in a short
time frame
• Most valuable buyers
• To maintain their loyalty, it must consistently raise the
bar on customer service and product innovation
• Also it should invite them to be a part of the brand-
growing process by asking their opinion

12. Customer Segmentation
6. At-Risk Repeat Customers
• At-risk repeat customers are characterized as shoppers who
have made multiple purchases in the past but have let
more time lapse since their last order than the average
time all of its customers typically wait between orders
• It can incentivize them to make another purchase with a
coupon, or ask them why they have not purchased from
you in a while.
5. Inactive Repeat Customers (a.k.a. Idle, lapsed and
latent customers)
• It may lose touch with some of its most loyal customers i.e.
either their needs change, or its brand and product change
• Inactive customers are shoppers who have placed multiple
orders before but they have not placed another order for
more than three times the average time customers spend
between orders.

13. Multichannel integration
Flipkart deals with customers and sellers
across mobile, text, social media, app,
voice call, website etc
CRM helps in the integration of all the
channels at the back end and deliver a
seamless customer experience
#Flipkartsucks trending
2014:Cancelled Orders fiasco
3rd party Channel integrators
Orderhive works with 40+ integrations which
include marketplaces, e-commerce platforms,
shipping providers, fulfillment companies,
accounting systems, FTP servers, and tracking
software.
Wallet
Integration:
mobile recharges,
bill payment
services and
peer-to-peer
money transfers
Eyeing Brick and Mortar
E-comm CAGR: 34%, Share of total retail sales: 0.4%
After 5 years- Brick & Mortar- Still 80% (PWC report)

14. Contact Centre Service

15. Primary Research
Link for form :
https://docs.google.com/spreadsheets/d/16Hj24F1_a6fq-PR5Ysq0Zn-VfOsv3BTB8j92EHGjNgo/edit?ts=5831f64c#gid=485345670

16. Primary Research

17. Measuring Impact
• Through CRM initiatives, Flip kart has successfully garnered an audience strength of 9.6
million unique users every month growing at 431% annually.
• Its inventory model and strong customer relationship management has made it the
largest book seller in both online and offline category in India.
• Through its efficient e-crm implementation, Flip kart has website visits of 170 million
• Total Number of Repeat customers have been 70% of net consumers.
• The average order size has risen to Rs 850 from Rs.300 in the past, with bulk of sales
happening from the books category.
• The current margin Flipkart gains from its sales has gone up in various categories:
• Books: 20%
• Apparels: 30-40%
• Electronics-6-8%

18. Measuring Impact
• The outreach to online user has scaled up to 14.5%
• We can assume 75% of the registered users(22 million) are active users and
hence the revised number should be: 15 million active users with 60
million shipments each year. Hence roughly 4 shipments per user per year.
• The supply chain and distribution model has been majorly impacted by
technology integration with delivery of products reaching a milestone of 20
products per minute i.e. 1250 an hour and 30,000 items a day.
• With increase in customer base and number of orders, the estimated %
return of goods has also gone up to 20-30%
• No of employees has increased to approximately 5000

19. Conclusion
Customer Relationship
Management helped
Flipkart improving the
relationship with
existing customers,
finding new prospective
customers, and winning
back former customers
With information
centralized you can now
run targeted and
personalized marketing
& promotional
campaigns
Enabled customer
centric demand
planning and scheduling
across the company. The
company can now
better forecast the
demand for their
products and manage
their inventory (sales,
sourcing,
manufacturing, etc.)
better
After sales service is one
of the most critical
aspects of a CRM. With
all the necessary
information available on
their fingertips, your
customer
representatives can now
provide better after
sales service to your
customers