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CRM STRATEGY
Reliance Retail aims to establish a customer relationship management (CRM) strategy to create superior customer value and deliver high customer satisfaction. The strategy involves segmenting customers based on a Customer Relationship Index that considers recency, longevity, frequency and value of purchases. Customers will be placed into relationship segments like strangers, acquaintances, friends or true friends. Different relationship propositions and actions will be taken for each segment. The CRM process also includes introducing a rewards program to encourage early and frequent redemptions, and using tools like MySAPCRM for identifying target groups and building campaigns to close business gaps.
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CRM STRATEGY
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- 2. strategic thrusts Gain FirstMover Advantage first pan-India CDIT multi-brand retailer Establish distinct brand identity focused brand build Differentiated Value Proposition Assortment Width & Depth consumers seek choice. Best Value / Price consumers are value conscious & seek best deals Service consumers seek convenience. single Reliance Retail 2
- 3. CRM Vision Create superiorcustomer value through CRM to deliver high customer satisfaction & enable higher customer lifetime value satisfied customers for life Reliance Retail 3
- 4. CRM End Goal morecustomers to buy more of our products, more often, more profitably over time with respect to our competitors Reliance Retail 4
- 5. CRM Process Cycle CRM StrategicGuidelines Community Feel CRM Cycle Customer Satisfaction Preference & recommend (including re-purchase) Reliance Retail Awareness & familiarity Consideration & purchase (including usage & learning’s) 5
- 6. CRM Marketing StrategyFit Pre-Purchase Out-of-Store Pre-Purchase In-Store Purchase In-Store Post Purchase Marketing Promotions Programs Customer Experience Programs CRM Program Interest-Group Prog. awareness & familiarity Reliance Retail consideration & first visit to store selection & first purchase usage & learning's preference & recommends 6
- 7. at store level> at city level > state level > national level Reliance Retail 7
- 8. CRM Strategic Thrusts EarlyRedemption Frequent Redemptions Ride the RR Rewards Club Exciting Rewards Simple to comprehend the program Multi-tiered loyalty program Reliance Retail Convenient Assurance to accumulate points on claiming the reward greater levels of expenditure, earn proportionately greater rewards (convex reward structure) 8
- 9. CRM Rewards Program RelianceRetail 9
- 10. CRM Rewards ProgramIntroduced Excitement Quotient Early Redemption Ride the RR Rewards Club Frequent Redemptions Exciting Rewards Simple to comprehend the program Multi-tiered loyalty program Reliance Retail Convenient to accumulate points Assurance on claiming the reward greater levels of expenditure, earn proportionately greater rewards (convex reward structure) 10
- 11. CRM Rewards ProgramConstruct Customer Relationship Index Relationship Segmentation Approach Redemption Rationale Reliance Retail Relationship Segment Proposition Relationship Segment Actions Enrolment Criterion 11
- 12. CRM Relationship Indices CustomerRelationship Index Recency Reliance Retail Longevity Value Frequency Profitability 12
- 13. CRM Relationship IndicesRationale Customer Relationship Index Recency Longevity Frequency Value Profitability Reliance Retail The more recently the customer transacts (last purchase), signals positive disposition towards RR The more longer the customer franchises (period between last purchase - first purchase), signals commitment to RR The more no of purchase visits customer makes between the last & first purchase point), signals expectation from RR, of need-range fulfillment (depend on RR) The more customer transacts (all purchase), signals conviction on value proposition 13
- 14. CRM “Customer RelationshipIndex” valuing intangible tangible Recency Longevity Frequency Profitability Last Purchase First Purchase No of Purchase Visits Cumulative Purchase Value Month 2 Month 8 4months back 8 10months back 10 past12 months 12 past12 months 12 0.67 0.83 between first & last purchase points ?( + feedbacks) no of purchase visits 1 once in 2months 6 0.17 0.67 +0.83+0.17=1.67 x100= 167 / 300 = CRI = 56% Reliance Retail 7000 + 12000.+ 1000 20,000 14
- 15. High CV CRM RelationshipSegmentation Approach Penguins Believers True Believers CRI < 25% Strangers Low CV Customer Value CVI 5,000+ Low CRI Friends CRI 25% - 50% Acquaintance Mid - CRI 24months+, Min 3 Purchase Occasions Butterflies 12months+. Min 2 Purchase Occasions Mid CV CVI 10,000+ True Friends CRI 50% + Acquaintance High CRI Customer Relation Index Reliance Retail 15
- 16. High CV CRM RelationshipSegmentation Approach Penguins Believers True Believers Rs10,000+ Cumulative Purchase Value / Spends Rs5001 – Rs10000 True Friends Cumulative Purchase Value / Spends CVI 5,000+ Strangers Acquaintance Less than Rs5000 Acquaintance Cumulative Purchase Value / Spends Low CV Customer Value Friends 24months+, Min 3 Purchase Occasions Butterflies 12months+. Min 2 Purchase Occasions Mid CV CVI 10,000+ Low CRI Mid - CRI High CRI Customer Relation Index Reliance Retail 16
- 17. High CV CRM RelationshipSegmentation Approach Penguins Believers True Believers Friends True Friends Mid CV Rs10,000+ Butterflies Low CRI Trusted Acquaintance 50% + Acquaintance 25% + Strangers Low CV Customer Value Rs5,000+ Mid - CRI High CRI Customer Relation Index Reliance Retail 17
- 18. High CV CRM RelationshipSegmentation Approach Penguins Believers +++ True Believers +++ +++ Mid CV Rs10,000+ Friends Butterflies True Friends +++ Low CRI Trusted Acquaintance 50% + Acquaintance 25% + Strangers Low CV Customer Value Rs5,000+ Mid - CRI High CRI Customer Relation Index Reliance Retail 18
- 19. High CVI CRM SegmentPropositions Penguins Believers True Believers Strangers Low CRI Friends Acquaintance Mid - CRI 24months+, Min 3 Purchase Occasions CVI 5,000+ 12months+. Min 2 Purchase Occasions Butterflies Low CVI Customer Worth Index Mid CVI CVI 10,000+ True Friends Acquaintance High CRI Customer Relation Index Reliance Retail 19
- 20. CRM Consumer Profile Willingnessto spend on technology affluency right fit right fit (tech) no irritants in exp right tech latest tech right exp will stretch to pay value-cons on tech Right exp best tech latest tech best exp seekers will pay high premiums right fit (tech) good exp will pay if believes fit Base level tech (functional), no irritants in exp Attitude/ Involvement towards technology/ home-electronics Reliance Retail Buzz, Berry, Ray, Jill 20
- 21. CRM Direct MailTriggers Home Delivery Installation Home Demo Replace Repair Service Exchange Complaint Resolve Purchase Customized Offers & Events Purchase Intent Home Solution Product Catalog Offers Home mapping Getting-to-Know Cross-Sell Service Solutions Feedback Reliance Retail New Launches Apology Satisfaction Feedback Offers Special Occasion Win-back Satisfaction Feedback Wish Cards Offers 21
- 22. CRM Reward Points: Earn Rationale Option 1 for every you get worth Rs100 = 1 = 1 point rupee you get spend worth Option 2 for every Recommended Rs100 = 1 = X point spend Option 3 for varying spend Reliance Retail you get X rupee worth =1 = X point rupee 22
- 23. CRM DB CommunicationAgency Lufthansa, Microsoft, Vodafone 1 Shopper Stop, Trent, Westside Colgate, J&J, HLL, P&G Philips, Kodak, Polaroid 2 ? 3 Capabilities 25% Reliance Retail Approach 25% Creative 20% Team 15% Cost 10% Client & Work 5% 23
- 24. CRM Creative Concepts RelianceRetail 24
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- 26. CRM MySAPCRM Supports customer-relatedprocesses 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 Reliance Retail 26
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- 28. CRM MySAPCRM do weneed : enterprise portal ? do we need : telephony & email ? scope, benefits, time, cost do we need : handheld ? do we need : internet capability Reliance Retail 28
- 29. CRM MySAPCRM what dowe need : at the least ? back-end SAP Netweaver Platform - AB ABAP - AS Java Reliance Retail front-end SAP GUI for Windows 6.40 Compilation 4 (with BI) 29
- 30. CRM MySAPCRM Example RelianceRetail 30
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- 32. CRM MySAPCRM Reliance Retail identifyingbiz target gaps 32
- 33. CRM MySAPCRM Reliance Retail identifyinggap period 33
- 34. CRM MySAPCRM Reliance Retail identifyingtarget group 34
- 35. CRM MySAPCRM Reliance Retail identifyingtarget group 35
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- 37. CRM MySAPCRM Reliance Retail buildscampaign 37
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- 39. CRM MySAPCRM Reliance Retail campaignresponse leads 39
- 40. CRM MySAPCRM Reliance Retail openleads to chase (as hot) 40
- 41. CRM MySAPCRM Reliance Retail customerto contact 41
- 42. CRM MySAPCRM Reliance Retail Finalcampaign effectiveness = 80% 42
- 43. CRM Customer DatabaseBuild preferential treatment lead generation Kiosk Smart Card Handouts customer history My SAP CRM Reliance Retail 43
- 44. CRM Action transaction value> Rs10,000 Call within 2 days of purchase - patronage appreciation - experience satisfaction - addressing any info gaps DM (e) within 15 days of purchase - usage - cross sell - rewards offer - suggestion feedback Rs 100 ( Investment for Relationship Build per Contact ) Reliance Retail M3 , M6, M9, M12 - events/promo’s mailers 44