You are on page 1of 67

CHAPTER NO.

1
INTRODUCTION

1.1 INTRODUCTION TO THE KAER LIFE


Kaer Life is a company driven by the principles of Ayurveda- "The science of life," or longevity.
A holistic alternative science more than 5,000 years old. It is believed to be the oldest healing
science in existence, forming the foundation of all others. Kaer Life develops and
marketsComprehensive Herbal Healthcare products/solutions, a Natural remedy, using the
intelligence of the plant products in herbal mixtures and the healing touch of mother-nature. No
harmful side-effects, only Holistic-benefits. A Preventive Approach to Healthcare, Kaer
Life intends to fill the gaps in existing healthcare systems. Kaer Lifemakes an important
contribution to modern health care that not only helps in preventing the diseases but also
treatingthe disease at its source rather than merely pacifying symptoms.
The key concept is Creating Perfect Balance of the mind and body. Kaer Life products will
eliminate imbalance from the most fundamental level of life, i.e. pure consciousness and reestablish the natural interconnectedness of the being. Many ailments, for which modern medicine
does not possess effective remedies, can be successfully cured. Kaer Life focuses on world class
R&D practices and time-tested manufacturing techniques.
1.1.2 LARGE PRODUCT RANGE
Diversified range of products aiming to rectify the root cause of major ailments.
Product Quality
Our products are prepared using best quality herbs and strictly follow the techniques as described
in the ancient Indian literature. This approach is combined with latest technology, meticulous
manufacturing processes and maintenance of unparalleled quality control to achieve zero
deviation from Quality and consistency with each batch.
Product Efficacy and Reliability

Have a holistic effect

Enhanced Healing Properties

Conducive Manufacturing Environment

Highly skilled Operators

Production Unit with sufficient Production Capacities

Equipped with the latest machinery in pharmaceutical production.


2

Employs state of art technology

Conducive and Eco - friendly Environment

In-house R & D

Having in-house Research and Development led by an enthusiastic research team and
setup recognized by Department of Science and Technology, Government of India.

Globally recognized R&D capabilities keep adding to the product range backed by
rigorous scientific validations and clinical trials.
Certifications

We are manufacturing under Ayurvedic Licence certified by the government of India and are a
GMP certified unit,shortly applying for ISO-9001-2000 certifications.
Experienced Professionals

Highly experienced and qualified doctors and Ayurvedic Professionals direct the
production of our products.

Highly experienced professionals lead our strategic management and operational areas.

Huge Infrastructure

Network of Organic farms and collection centres to ensure availability of herbs and other
inputs to meet the growing requirements of production.

Self-supporting and potent Production Capacities.

Growing infrastructure of Clinics and Consultation Centres.

State of art Research and Development Department, responsible for introducing new
Ayurvedic products for holistic development.

1.1.3 AWARDS AND ACHIEVEMENTS


Silver DMAI ECHO Awards, 2014
In the Digital Marketing Campaign category for the Greatest Fan campaign
Most Trusted Brand
Brand Equity - Most Trusted Brands Survey, 2014
3

Silver Indian Digital Media Awards, 2012


In the Best Integrated Campaign for Social Cause category for the Boundaries for Books
Campaign

1.2 CUSTOMER RELATIONSHIP MANAGEMENT


Customer relationship management (CRM) is a widely implemented model for managing a
companys interactions with customers, clients, and sales prospects. It involves using technology
to organize, automate, and synchronize business processesprincipally sales activities, but also
those for marketing, customer service, and technical support. The overall goals are to find,
attract, and win new clients; nurture and retain those the company already has; entice former
clients back into the fold; and reduce the costs of marketing and client service. Customer
relationship management describes a company-wide business strategy including customerinterface departments as well as other departments. Measuring and valuing customer
relationships is critical to implementing this strategy. business to business marketing it is creating
value, solutions, and relationships either short term or long term with a company or brand. It
generates the strategy that underlies sales techniques, business communication, and business
developments. It is an integrated process through which companies build strong customer
relationships and create value for their customers and for themselves. Customer service is the
provision of service to customers before, during and after a purchase. Technical support or tech
support refers to a range of services by which enterprises provide assistance to users of
technology. The biggest management challenge in the new millennium of liberalization
and globalization for a business is to serve and maintain good relationship with the king the
customer. In the past producers took their customers for granted, because at that time the
customers were not demanding nor had alternative source of supply or suppliers. But today there
is a radical transformation. The changing business environment is characterized by economic
liberalization, increasing competition, high consumer choice, demanding customer, more
emphasis on quality and value of purchase etc. All these changes have made todays producer
shift from traditional marketing to modern marketing. Modern marketing calls for more than
5

developing a product, pricing it, promoting it and making it accessible to target customer. It
demands building trust, a binding force and value added relationship with the customers. The
process of developing a cooperative and collaborative relationship between the buyer and seller
is called customer relationship management shortly called CRM.

The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to make the
customer climb up the ladder of loyalty.
The company first tries to determine who are likely prospects i.e. the people who have a strong
potential interest in the product and ability to pay for it. The company hopes to convert many of
its qualified prospect into first time customers and then to convert those first time customers into
repeat customers. Then the company tries to convert these repeat customers into clients they
are those people who buy only from the company in the relevant product categories. The next
challenge for the company is to convert these client into advocates. Advocates are those clients
who praise the company and encourage others to buy from it.
The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to make the
customer climb up the ladder of loyalty.
The company first tries to determine who are likely prospects i.e. the people who have a strong
potential interest in the product and ability to pay for it. The company hopes to convert many of
its qualified prospect into first time customers and then to convert those first time customers into
repeat customers. Then the company tries to convert these repeat customers into clients they
are those people who buy only from the company in the relevant product categories. The next
challenge for the company is to convert these client into advocates. Advocates are those clients
who praise the company and encourage others to buy from it.
The ultimate challenge is to convert these advocates into partners where the customers and the
clients work actively together to discover ways of getting mutual benefit.
Thus in CRM the key performance figure is not just current market share but share of life time
value by converting customers into partners.

The CRM is a new technique in marketing where the marketer tries to develop long term
relationship with the customers to develop them as life time customers. CRM aims to make the
customer climb up the ladder of loyalty.
In CRM the company tries to identify that small percentage (20%) of key account holders whos
contribution to the company revenues is high (80%). So from this point of view, CRM is also
known as KEY ACCOUNT MANAGEMENT.
In casting industry , one company sells its product to another company. Kaer Lyfmanufacture
product according to customer needs or instruction. These customers also from another industry.
For example Kaer Lyfproduced engine, clutches for hero Honda, maruti Suzuki, platting for
philiphs, fuel cap for damler Chrysler etc. so the final customer in this are manufacturer of
another product like automobile industry, electrical appliances industry etc. in this industry
customers are few and profits margins are high . So CRM is very much necessary and relevant in
this industry. There is a high degree of uncertainty on the part of the buyers, the l.ikelihood of
customers seeking a relationship is increased. If the firm loses its customer it would be major
loss to the firm. The product in the casting industry is complex and quality is an important factor.
One of the major values the customer expects from vendors is quality. No customer will tolerate
average quality. According to GEs chairman John quality is the best assurance of customer
allegiance and strongest defense against competition and the only path to sustained growth and
earnings. If the product is not of good quality the customer will not be satisfied and the firm
may lose its customer. Moreover there is a scope of customization in the product. The seller has
to customize the product according to the need of the customer. Customization is changing the
product according to the need of the customer in order to satisfy him.

Customer Relationship Management has been with us over the ages, for as long as people traded
with each other. In those days, the physical closeness in location between the customer and the
supplier led to the relationship. Even in less developed countries and traditional societies such
business models currently still exist. People congregated on market days and the customers
usually buy from people they know, have bought from before. The supplier also knew his
customers well, what they liked, how they liked it, what they did not want, and was able to
deliver the customer's needs and wants. And based on their knowledge of the customer, they
could also add sweeteners to ensure customer loyalty, and bring in related samples to introduce
7

their existing customers to new things. Their loyal customers then spread the word and
introduced other customers to them. And gradually they became well known for what they sold
or provided.
As countries developed and urbanisation took place, the physical distance between the supplier
and the customer increased. Intermediaries and merchants developed to transport the product
from the producer to the customer. To pay for their efforts they added their margins on top of the
supplier's price.
With increasing urbanization and industrialization, suppliers could no longer deal with their
customers directly. They could no longer know their customers' needs, wants, preferences, habits,
and other characteristics that helped them to compete. The problem then arose of how to compete
with products that are not tailored to customers' needs. So they started building brands, and using
advertising and mass marketing to persuade remote customers and compete for a greater share of
the market. The flavour of the times was mass production, standardisation, strong universal
brand, and a deep penetration of the market. However this involved a lot of guesswork, and some
big mistakes were sometimes made. The disconnection with the customer also meant that directfeedback from the individual customer was not available.
Over the years, competition became so fierce that mass marketing became inadequate in ensuring
the brand, as customers could easily move to a competitor at any time. Relying on customers to
remain with a business without bothering to interact with them is risky. It also became clear that
not all customers are equally valuable to a business, and the focus moved to finding out what
made a customer valuable. The way a customer interacts with the business can have significant
impact on their loyalty and retention, so customer service gained prominence. Costs of acquiring
and retaining a customer became really important, and it became clear that selling to an existing
customer is cheaper than acquiring and selling to a new customer. Reducing the cost of selling
and improving profits required more precise marketing, and this required the firm to be able to
gather, retain, analyse and interprete customer data. However, this information gathering,
analysis, and interpration was very complex, expensive and could not be easily done manually.

And then computerisation came, followed by the Internet. And it became possible again for
suppliers to reach individual customers, connect with them and undertand their needs and wants.
This enabled the firm to build a relationship with the individual customer, similar to that seen in
the old days, and the field of Customer Relationship Management (CRM) was born. The aims of
CRM for the supplier/firm is to deliver value to the customer at a profit, and to deliver that value
so well that the customer remained loyal, and the supplier became a first choice for the
product/service, with an enhancement of the supplier's reputation and brand. For the customer,
the value of CRM is to have a supplier who understands the customer's needs and wants so well,
that value was delivered at every interaction, with less mistakes. Since technology is very
essential for delivery of the supplier's CRM aims, for some people CRM became synonymous
with the technological tools. And some CRM technology vendors and practitioners insisted that
their interpretation of CRM was the truth. These differing views affected the implementation and
use of CRM technology. Companies and suppliers using these different CRM technology also
judged and defined them by their experience of how it met their business needs.
How Does CRM work?
Essentially, CRM works by allowing a representative or agent to access detailed customer
information quickly and efficiently while the client is on the line. This means less hassle for the
client and a quicker transaction. For example, say a client contacts a company representative
about possibly purchasing the company's product. With CRM, the representative would be able
to see if the client had bought anything previously, and if so, what their name is, their age, how
long they've used the company, what products they've bought before, how often they buy the
product, and much more. This would then allow the representative to suggest and recommend the
product

or

service

option

that

best

suits

the

customer

in

timely

manner.

[http://www.alternative.biz/download/files/ABC%20of%20CRM.doc]
Why CRM ?
Keeping in mind the pace at which technology is changing today, any company which is a step
ahead of others because of some web product or service will not be able to hold on to that
advantage for long. The key to stability in today's dynamic marketplace is forging long-term
relationships with the customers.
9

Essentially, CRM aims to put your customers at the centre of the information flow of your
company.
In a typical company, it is not unusual to have to following scenario:
Figure 1.1: Scenario Usually In Companies

[http://dl.sugarforge.org/training/training/IntroductiontoCRM/CRM_Fundamentals.pdf]

In short, the company or organisation is very rich in information about customers. It knows lots
about them. But the information is not shared. Its only available to specific job functions. If a
sales person wants to know about what issues are outstanding with customer service for a
particular customer, then they have to make contact with the holders of that information and wait
for a response. If the salesperson is chasing the information in response to a question from the
customer, then the customer also has to wait. So, although many companies are information rich,
the information is compartmentalized. It is not corporate knowledge and the ability to access
information and to deliver it rapidly to customers is low - High quality customer service is
compromised.
10

In a customer focused company, the information flow and the ability to access
information is very different:
Figure 1.2: Information In Customer Focused Company

[http://dl.sugarforge.org/training/training/IntroductiontoCRM/CRM_Fundamentals.pdf]
CRM is an application that enables companies to make the move towards being a customer
centered organization by putting the customer at the centre of all the information that relates to
them and allowing authorised people within the organisation to access the information.
In a customer centred organisation, salespeople would have access to all the information that
affects their relationship with their customer. The conversations, the emails, the complaints, the
complaint resolutions, all the information that had been sent to the customer, who else in the
company the customer had spoken to everything that affects their ability to service the
customer and sell more product or services to them.
11

Customers of a customer centred organisation feel more valued. Their requests are dealt with
more rapidly and accurately because all the information required to service the request is in one
place. Customer centred organisations may have a higher customer retention rates than
competitors organised along traditional lines because of this.
What Is The Goal Of CRM?
The idea of CRM is that it helps businesses use technology and human resources to gain insight
into the behavior of customers and the value of those customers. With an effective CRM strategy,
a business can increase revenues by:
o providing services and products that are exactly what your customers want
o offering better customer service
o cross selling products more effectively
o helping sales staff close deals faster
o Retaining existing customers and discovering new ones.
CRM in an Organisation - In many organizations CRM sits at the heart of the enterprise,
spanning marketing, sales, and service as noted in the diagram below:

Aspects of CRM
There are three aspects of CRM which can each be implemented in isolation from each other:

Operational CRM- automation or support of customer processes that include a companys


sales or service representative .

Collaborative CRM- direct communication with customers that does not include a
companys sales or service representative (self service) .

Analytical CRM- analysis of customer data for a broad range of purposes.

Operational CRM
Operational CRM provides support to front office business processes, including sales, marketing
and service. Each interaction with a customer is generally added to a customer's contact history,
and staff can retrieve information on customers from the database as necessary.
12

One of the main benefits of this contact history is that customers can interact with different
people or different contact channels in a company over time without having to repeat the
history of their interaction each time.
Collaborative CRM

Collaborative CRM covers the direct interaction with customers, for a variety of different
purposes, including feedback and issue-reporting. Interaction can be through a variety of
channels, such as web pages, email, automated phone (Automated Voice Response AVR) or
SMS. The objectives of Collaborative CRM can be broad, including cost reduction and service
improvements.
Analytical CRM
Analytical CRM analyses customer data for a variety of purposes including

design and execution of targeted marketing campaigns to optimise marketing


effectiveness

design and execution of specific customer campaigns, including customer acquisition,


cross-selling, up-selling, retention

analysis of customer behaviour to aid product and service decision making (e.g. pricing,
new product development etc.)

management decisions, e.g. financial forecasting and customer profitability analysis

prediction of the probability of customer defection (churn).

Business Strategy and CRM


A model, which is a hybrid, and typical of many of the models and diagrams of CRM has been
proposed. The model has three key phases and three contextual factors:
Key Elements of CRM
What is CRM? CRM or Customer Relationship Management is a corporate strategy composed of
applications, technology and products that fulfill three essential requirements:

To give your enterprise a 360 view of each customer for consistent and unified contact
with that customer whenever anyone anywhere in the enterprise deals with that customer.
13

This knowledge increases the opportunities for sales and the effectiveness of customer
service.

To enable your customers to have a consistent view of your enterprise, regardless of the
way the customer contacts you. This improves customer satisfaction and customer
retention.

To enable front office staff to perform sales, service and marketing tasks more efficiently
as a team, increasing expertise and reducing costs.

Three Key Phases in CRM:


Customer Acquisition
Customer Retention
Customer Extension

14

Figure 1.4: CRM Model

[http://www.marketingteacher.com/IMAGES/crm_model.gif]

Three Contextual factors:


Market Orientation
Value Creation
Innovative IT
1. Customer Acquisition - This is the process of attracting our customer for the first their first
purchase. We have acquired our customer.
Growth - Through market orientation, innovative IT and value creation we aim to increase the
number of customers that purchase from us for the first time.
2. Customer Retention - Our customer returns to us and buys for a second time. We keep them
as a customer. This is most likely to be the purchase of a similar product or service, or the next
level of product or service.
Growth - Through market orientation, innovative IT and value creation we aim to increase the
number of customers that purchase from us regularly.
15

3. Customer Extension - Our customers are regularly returning to purchase from us. We
introduce products and services to our loyal customers that may not wholly relate to their
original purchase. These are additional, supplementary purchases. Of course once our loyal
customers have purchased them, our goal is to retain them as customers for the extended
products or services.
Growth - Through market orientation, innovative IT and value creation we aim to increase the
number of customers that purchase additional or supplementary products and services
4. Marketing - Marketing sub module primarily deals with providing functionalities of Long-term

planning and Short-term execution of Marketing related Activities within an organization.


Marketing Planning

Long-term Market Plans can be made and Quantitative as well as Qualitative measures (targets)
can be set for a defined period and for different product groups, geographies etc. These are then
monitored based on the actual performance throughout the defined period.
Campaign Management

Short-Term execution includes running Marketing campaigns via different communication


channels targeting a pre-defined group of potential buyers with a specific message referring to a
product or a group of products.
5. Sales - Sales functionalities are focused on helping the Sales team to execute and manage the

presales process better and in an organized manner. Sales team is responsible for regularly
capturing key customer interactions, any leads or opportunities they are working on etc, in CRM
system. The system helps by processing this data, monitoring against the targets and proactively
alerting the sales person with recommended further actions based on company's sales policy.
Quotation and Sales Order Management
Opportunities, if they reach a Quotation phase, can be converted to a quotation, and, if won gets
converted to a Sales order. Standard features of creating a "linked" Quotation or Sales Order
from opportunities are provided. These Sales orders then flow to the Back-End (ERP) system for
further execution and Delivery.
Activity Management

16

Activities represent various Sales or Service related interactions with the customer (meetings,
discussions, telephone calls, emails). Activity Management provides a platform to consolidate all
the interactions with customer into a single platform.
6. Innovative IT - is exactly that - Information Technology must be up-to-date. It should be
efficient, speedy and focus upon the needs of customers. Whilst IT and/or software are not the
entire story for CRM, it is vital to its success. CRM software collects data on consumers and
their transactions. Huge databases store data on individuals and groups of individuals. In some
ways, CRM means that an organisation is dealing with a segment of one person, since every
consumer displays different purchasing habits and preferences.

1.2.1 PROCESS OF CUSTOMER RELATIONSHIP MANAGEMENT


What do managers need to know about their customers and how is that information used
to develop a complete CRM perspective?
Figure 1.4: Process of CRM

1. Creating a Customer Database


A necessary first step to a complete CRM solution is the construction of a customer database or
information file. This is the foundation for any customer relationship management activity.
What should be collected for the database?
Transactions. This should include a complete purchase history with accompanying details (price
paid, SKU, delivery date)
17

Customer contacts. Today, there is an increasing number of customer contact points from
multiple channels and contexts. This should not only include sales calls and service requests, but
any customer- or company-initiated contact.
Descriptive information. This is for segmentation and other data analysis purposes.
Response to marketing stimuli. This part of the information file should contain whether or not
the customer responded to a direct marketing initiative, a sales contact, or any other direct
contact.
The data should also be over time.

The customer records are built from e-mails, direct mail, telemarketing, and other customer
contacts, with descriptive information by department, division, and location.
A number of possible areas of research in the database area are the following:
What is the value of the database? While some research has started in this direction, since the
database is a significant corporate asset, more work from an accounting perspective is needed.
What is the best database design from both an information and user standpoint?
How can companies integrate disparate databases (e.g., marketing and production, globally)
more efficiently?
What are some new strategies for data generation?
2. Analyzing the Data
Traditionally, customer databases have been analyzed with the intent to define customer
segments. Nowadays, the range of marketing tools are available that can reach customers one at
a time using personalized messages (what has been referred to as 1-to-1 marketing), there is
less need to consider the usual market segmentation schemes. Rather, there is increased attention
being paid to understanding each row of the database, that is, each customer and what he or
she can deliver to the company in terms of profits. As a result, a new term, lifetime customer
value or LCV, has been introduced into the lexicon of marketers.
In words, the profit that a customer has produced for the firm is the sum of the margins of all the
products purchased over time less the cost of reaching that customer. These costs include any
that can be broken out at the individual customer level such as direct mail, sales calls, etc.

18

3. Customer Selection
The next step is to consider which customers to target with the firms marketing programs. If
segmentation-type analyses are performed on purchasing or related behavior, the customers in
the most desired segments (e.g., highest purchasing rates, greatest brand loyalty) would
normally be selected first. The descriptor variables for these segments (e.g., age, industry type)
provide information for deploying the marketing tools. In addition, these variables could be
matched with commercially available databases of names to find additional customers matching
the profiles of those chosen from the database. The marketing manager can use a number of
criteria such as simply choosing those customers that are profitable (or projected to be) to
determine on which customers to focus. The goal is to use the customer profitability analysis to
separate customers that will provide the most long-term profits from those that are currently
hurting profits. e.g. The wireless provider PageNet raised monthly rates for unprofitable
subscribers. Clearly, the intent was to drive them away.
4. Targeting the Customers
More conventional approaches for targeting selected customers include a portfolio of direct
marketing methods such as telemarketing, direct mail, and, when the nature of the product is
suitable, direct sales. In particular, the new mantra, 1-to-1 marketing, has come to mean using
the Internet to facilitate individual relationship building with customers. An extremely popular
form of Internet-based direct marketing is the use of personalized e-mails. Direct e-mail has
become a very popular and effective method for targeting customers for CRM purposes.
5. Relationship Programs
Relationships are not built and sustained with direct e-mails themselves but rather through the
types of programs that are available for which e-mail may be a delivery mechanism. The overall
goal of relationship programs is to deliver a higher level of customer satisfaction. Managers
today realize that customers match realizations and expectations of product performance, and
that it is critical for them to deliver such performance at higher and higher levels as expectations
increase due to competition, marketing communications, and changing customer needs. Research
has shown that there is a strong, positive relationship between customer satisfaction and profits.
Thus, managers must constantly measure satisfaction levels and develop programs that help to
deliver performance beyond targeted customer expectations.
A comprehensive set of relationship programs includes
19

Customer service

Frequency/loyalty programs

Customization

Rewards programs

Community building.
Figure 1.5: Customer Retention Programs

Customer Service

Because customers have more choices today and the targeted customers are most valuable to the
company, customer service must receive a high priority. Programs designed to enhance customer
service are normally of two types. Reactive service is where the customer has a problem (product
failure, question about a bill, product return) and contacts the company to solve it. Most
companies today have established infrastructures to deal with reactive service situations through
telephone numbers, fax systems, e-mail addresses, and a variety of other solutions. Proactive
service is a different matter; this is a situation where the manager has decided not to wait for
customers to contact the firm but to rather be aggressive in establishing a dialogue with
customers prior to complaining or other behavior sparking a reactive solution.

Loyalty/Frequency Programs

Loyalty programs (also called frequency programs) provide rewards to customers for repeat
purchasing. A recent study found that about half of the ten largest retailers in the U.S. in each of
the top seven sectors (category killers, department stores, drugstores, gasoline, grocery, mass
20

merchandisers, specialty apparel) have such programs The study also identified the three leading
problems with these programs: they are expensive, mistakes can be difficult to correct as
customers see the company as taking away benefits, and, perhaps most importantly, there are
large questions about whether they work to increase loyalty or average spending behavior.

Customization

It implies the creation of products and services for individual customers, not simply
communicating to them. Companies such as Levi Strauss, Nike, and Mattel have developed
processes and systems for creating customized products according to customers tastes. This
process is referred as a choiceboard where customers take a list of product attributes and
determine which they want. The idea is that it has turned customers into product makers rather
than simply product takers.

Community

One of the major uses of the Web for both online and offline businesses is to build a network of
customers for exchanging product-related information and to create relationships between the
customers and the company or brand. These networks and relationships are called communities.
In this way, the manager can build an environment which makes it more difficult for the
customer to leave the family of other people who also purchase from the company.
6. Privacy Issues

Particularly with the popularity of the Internet, many consumers and advocacy groups are
concerned about the amount of personal information that is contained in databases and how it is
being used.
A study by Forrester Research found a topic of privacy concerns:
1. Simple irritation. This comes mainly from unwanted e-mails.
2. Feelings of violation or How do they know that about me?
3. Fear of harm. This could come from browsing X-rated sites, booking travel that a consumer
does not want others to know about, etc.
7. Metrics
The increased attention paid to CRM means that the traditional metrics used by managers to
measure the success of their products and services in the marketplace have to be updated.
21

Some of these CRM-based measures, both Web and non-Web based are the following:
Customer acquisition costs
Conversion rates (from lookers to buyers)
Retention/churn rates
Same customer sales rates
Loyalty measures.
Who does CRM benefit?
The beauty of CRM is that is benefits both the customer and the business or service provider.
Customers receive a higher level of customer service because their needs are met and
anticipated, allowing them to relax through transactions that are often much quicker than they're
used to. The business benefits via improved sales, higher customer confidence and satisfaction,
and a more effective work environment. With CRM, a small business or large corporations can
know what its customer wants; thus it can provide the service or product the client wants,
keeping them as a repeat customer and gaining greater sales volumes.
Advantages of CRM
There are several benefits attached with a properly managed and maintained CRM system, which
has made it the buzzword in the business community.
In any business, it helps the organization in lots of ways, both in terms of delivery more to the
customers and also in terms of gaining more from them.

1.2.2 USING CRM, A BUSINESS CAN:

Provide Better Customer Service - CRM systems give businesses many strategic
advantages such as the ability to personalize relationships with customers regardless of
which employee is service them. Using CRM, a repository can be maintained on
customer profiles, thereby treating each client as an individual and not as a group. This
way, every employee can be better informed about each customer's specific needs and
transaction profile. CRM also helps the organisation to easily adjust the level of service to
reflect the customer's importance or status.
22

Better customer service through improved responsiveness and understanding helps in


building customer loyalty and decreases customer agitation. It also helps the company in
getting continuous feedbacks from the customers on the product they have bought.
A good electronic company would always like to follow-up with its customers on the
items they have bought, so as to rectify the problem (if any) even before it gets logged as
a complaint

Increase Customer Revenues - Using CRM data, marketing campaigns can be coordinated more effectively by ensuring that promotions do not target customers who have
already purchased that particular products. It also ensures higher customer retention by
introducing loyalty programs. A business would never like to see a product to a customer
who has just bought it recently.

Discover New Customers - CRM systems help the organisation in identifying potential
customers. By keeping a track of the profiles of their existing clientele, the business can
easily come up with a strategy to determine the kind of people they should target such
that it returns them maximum clientage.
For example, if several students in a university sign up for a particular mobile service
provider, the business can come up with a strategy to target rest of the community in the
university.

"Cross Sell" and "Up Sell" Products More Effectively - CRM systems facilitate crossselling (offering customers complimentary products based on their previous purchases)
and up-selling (offering customers premium products in the same category). It helps them
to gain a better understanding of customers and anticipate their purchases (e.g. someone
who purchases grass seed in the spring will need fertilizer later in the season).

Help Sales Staff Close Deals Faster - CRM helps the businesses in closing deals faster,
through quicker and more efficient responses to customer leads and customer
information. The turnaround time has decreased drastically for organisations that have
been able to implement CRM systems effectively.

Make Call Centers More Efficient - With each employee having access to customer
details and order histories, targeting clients becomes easier. CRM helps the organisation's
workforce in knowing how to deal with each individual customer depending upon the
23

customer's archives available through CRM. The information can be accessed instantly
from anywhere within the company.

Simplify Marketing And Sales Processes - CRM helps in developing better


communication channels. Interactive Voice Response System, web sites, etc. have made
life easy both for the organisation and also for its sales representatives. It allows the
business to give its customers the option of choosing how they want to communication
with the business. (http://ezinearticles.com/?Advantages-of-CRM&id=244781)

The Future of CRM


Implementation of CRM practices is still far short of ideal. Everyone has his or her own stories
about poor customer service and emails sent to companies without hearing a response. More
companies are recognizing the importance of creating databases and getting creative at capturing
customer information. Real-time analyses of customer behavior on the Web for better customer
selection and targeting is already here which permits companies to anticipate what customers are
likely to buy. One way that some companies are developing an improved focus on CRM is
through the establishment or consideration of splitting the marketing manager job into two parts:
one for acquisition and one for retention. The kinds of skills that are need for the two tasks are
quite different. People skilled in acquisition have experience in the usual tactical aspects of
marketing: advertising, sales, etc. However, the skills for retention can be quite different as the
job requires a better understanding of the underpinnings of satisfaction and loyalty for the
particular product category. Some companies have appointed a chief customer officer (CCO)
whose job focuses only on customer interactions. The CCOs job is to provide intelligence to the
VP from marketing research and the customer database for use by product managers in
formulating marketing plans and making decisions.

24

Figure 1.7: A Future Marketing Organisation

Role of Customer relationship Management in Private Industries


Private Industriess that seek to benefit from CRM should take a step in the direction of business
process management and should, by the means of CRM-based business processes, embed CRM
in all areas where doing so would be profitable to the organisation. The implementation of a
CRM application is a way to be customer-orientated and to optimize these processes, and
therefore a way to secure a competitive position in the global and transparent market. That is
why a CRM application cannot be an isolated solution but should optimize and integrate all
processes across all departments. This way, the organisation can put these processes at the center
of attention.
A great challenge in analyzing, modeling, or operating CRM processes is the optimization of all
channels over which the interactions with clients happen. Today, organisations are processoriented and run on automated, integrated, and synchronized processes. This is one of the main
prerequisites for fulfilling short-term profit goals through revenue maximization and cost
reduction. Yet, to ensure long-term success in the market, a flexible business process
infrastructure or, so to speak, a CRM process infrastructure, enables organisations to react
quickly to customer needs and market changes. Operating this way, customer satisfaction can be
improved continuously.

25

CRM and Return on Investment


However, costs and the return on investment (ROI) should not be neglected. Management has the
full right to ask, What are the benefits of implementing CRM? A CRM implementation is
costly. Therefore, the ROI should always be calculated for a CRM implementation. The ROI of
CRM is calculated by monetary returns induced through CRM implementation divided by the
costs of the system and the system implementation. The ROI is simply the interest collected
from the CRM investment.
CRM success depends on measurable ROI over a short period. Expenditures and prospective
earnings over a certain period must be defined, and the return flow from a CRM investment
should ensure that a project is headed in a right direction.
When it comes to Private Industriesing and wealth management, it is important to be well
prepared before entering financial advisory sessions with the customer. CRM, the organisation
saves an average of 25 percent on each preparation session, which results in a 12 percent overall
increase in sales, because the preparation time and customer visit are equal in terms of time spent
on customer consultation. The result is more time for the customer visit and less preparation
time. All this saves money and increases revenue for the organisation every day.
The benefits of implementing a CRM strategy can be grouped into the following categories:

Capturing core data and customer visit information at the front office and directly

through the CRM system eliminates most paperwork.

Improving efficiency and quality of the customer advisory sessions at both the

preparation stage and the financial advisory visits.

Eliminating, improving, and automating key business processes through the integration of
the CRM system and the back-office and front-office systems.

Access to high-quality management information to provide accurate and timely reports as


a value-added product.

Facilitating cohesive and consistent customer service by managing Customer contacts


and correspondence through a centralized database.

Improving the efficiency and quality of communication with customers through the use
of easily accessible customer information on the computer.

26

27

Customer-Centric Organisationing Experience


Because Private Industriess have face-to-face relationships with customers, organisation staff are
uniquely positioned to promote new products and services, uncover problems, and increase
customer loyalty. To do so, organisation staff need to deliver fast, personalized client services.
CRM processes can help them to achieve this.
CRM4Organisations streamlines advisor operations, and, because it is built with Microsoft
.NET technology and Web services, it integrates across applications. Staff gain real-time access
to customer history, accounts, activities, and interaction information, regardless of the customers
point of contact with the organisation. This combination of transactional efficiency and customer
centricity creates real benefits for the organisation and its customers.
Thus as the Private Industriess have to face customers through the working hours.They can be
highly benefitted through the proper use of CRM in their organisations.

28

CHAPTER 2
REVIEWOF LITERATURE

29

REVIEW OF LITERATURE
Number of researches have been conducted on role of customer relationship management. This
section covers few of the studies conducted by different researchers at different times.
Ryals et al. (2001) studied that there was a major change in the way companies organise
themselves as firms switch from product-based to customer-based structures. A key driver of this
change was the advent of Customer Relationship Management which, underpinned by
information systems convergence and the development of supporting software, promises to
significantly improve the implementation of Relationship Marketing principles. It was found that
the three main issues that can enable (or hinder) the development of Customer Relationship
Management in the service sector are the organisational issues of culture and communication,
management metrics and cross-functional integration especially between marketing and
information technology.

Chen et al. (2003) analysed that Customer relationship management (CRM) is a combination of
people, processes and technology that seeks to understand a company's customers. It is an
integrated approach to managing relationships by focusing on customer retention and
relationship development. CRM has evolved from advances in information technology and
organizational changes in customer-centric processes. Companies that successfully implement
CRM will reap the rewards in customer loyalty and long run profitability. However, successful
implementation is elusive to many companies, mostly because they do not understand that CRM
requires company-wide, cross-functional, customer-focused business process re-engineering.
Although a large portion of CRM is technology, viewing CRM as a technology-only solution is
likely to fail. Managing a successful CRM implementation requires an integrated and balanced
approach to technology, process, and people.
Zineldin (2005) examined the product and service quality and customer relationship factors that
influence the customer selection and image of the principal organisations. The purpose of the
study was to theoretically and empirically develop a better understanding of quality and
30

customer relationship management (CRM) impact on organisationing competitiveness. It was


suggested that a organisation has to create customer relationships that deliver value beyond that
provided by the core product. This involves added tangible and intangible elements to the core
products, thus creating and enhancing the product surrounding. One necessary condition for
the realisation of quality and the creation of value added is quality measurement and control
which is an important function to ensure the fulfillment of given customer requirements. The key
ways to building a strong competitive position are through CRM, product/service
quality and differentiation.
Geib et al. (2006) identified key issues and successful patterns of collaborative customer
relationship management (CRM) in financial services networks. The study took the form of a
multi-case analysis. It was found that key issues of CRM in financial services networks are
redundant competencies of partnering companies, privacy constraints, CRM process integration,
customer information exchange, and CRM systems integration. To address these issues,
partnering companies have to agree on clear responsibilities in collaborative processes. Data
privacy protection laws require that customer data transfer between partnering companies has the
explicit approval of customers. For process integration, companies have to agree on process
standards and ajoint integration architecture. Web services and internet-based standards can be
used for inter-organizational systems integration. Data integration requires the development of a
joint data model. Either a unique customer identification number or a matching algorithm must
be used to consolidate customer
data records of partnering companies.

Bennani et al. (2007) aimed to provide insights on the core components of CRM and the
implementation of CRM strategy. A case study of CRM implementation at a large Swedish firm
was carried out using open-ended, face-to-face and telephone interview methods to collect data
from key informants at both strategic and operative levels. The empirical studies focused on
technical and cognitive aspects necessary for successful implementation of a sustainable CRM
strategy. It was found that relationships were not only a tactical weapon, but represent a different,
strategic approach to buyer-seller exchange. It was also found that implementing sustainable

31

CRM strategy requires the endorsement by and commitment from top management, systematic
cross-functional communication, and mandatory customer loyalty training
programmes for all employees.
Rangone et al. (2007) aimed to estimate the size of the Italian market for mobile customer
relationship management (CRM) services and tried to evaluate some benefits that could be
obtained through the use of CRM applications by companies. The research involved a census of
CRM applications in order to construct a typology of CRM applications being used and the
analysis of some case studies to assess the impact of such applications on the perspective
adopted by the company. The second phase involved interviews with managers of the companies.
It was found that in 2005, 1,077 CRM services were used by 405 companies in Italy. The main
benefits found were the improvement of customer satisfaction, an increase in the
efficiency of internal processes and an increase in revenue.
Sinisalo et al. (2007) presented a conceptualization of mobile CRM delineating its unique
characteristics. Second, the authors developed the empirically grounded framework of the
underlying issues in the initiation of mobile CRM. A single-case-study method was used for the
empirical component of the study. Semi-structured interviews of the key informants of the
company formed the main data source through which the issues were identified and the proposed
framework was built. The proposed framework identified issues that could be divided into three
categories (exogenous, endogenous and mobile CRM-specific) the company had to take into
account when moving towards mobile CRM.
Bellou et al. (2008) examined the internal service quality has on employees' prosocial customer
behaviour displayed, which is crucial for customers' perception of service quality. This effect was
examined both for publicly and for privately held organisations. Out of 19 organisations that
operated in a major Greek city, 16 agreed to cooperate. The researchers personally administered
10 questionnaires to front-line employees of every branch, on a random basis, and gathered 113
usable questionnaires. It was found that employees were more likely to improve their general
performance and were more cooperative when internal service quality existed. Despite the fact
that employees in both sectors agreed to the fact that reliability and access were critical for
displaying role-prescribed customer behaviour, there was significant difference with
32

regards to cooperation and extra-role customer behaviour.


Khan et al. (2008) explored the satisfaction variables within the organisationing industry. The
key findings of an empirical research were based on the data collected from 555 customers.
Systematic methodology, including design and validation of questionnaire, factor analysis and
regression analysis were utilised to enhance reliability of the findings. The study reinforced that
customer satisfaction is linked with performance of the organisations. The authors demonstrated
how adaptation of satisfaction variables can lead to better performance.
Kevork et al. (2009) studied the customer relationship management (CRM) to obtain a
comprehensive framework of mutually exclusive CRM research areas and sub-areas free of all
potentially disruptive factors. The keywords reported in 396 CRM articles published during the
period 2000-2006 were used to uncover first a great number of detailed keyword sub-groups and,
by subject summation, the CRM-related research areas. This classification scheme was
considered unbiased, in contrast with any direct classification of articles alone among CRM
research areas fixed in advance. It was found that an up-to-date conceptual and functional CRM
framework emerged, consisting of a total of nine distinct research areas having their own
weights, importance and popularity among the research community. Newly emerging CRM
research areas were self-identified as attracting the interest of the researchers and managers.
Previous studies revealed that majority of the researchers have focused on the impact of
customer relationship management, the previous studies provide insights on the core components
of CRM and the implementation of CRM strategy but they had not covered the role of customer
relationship management in Kaer LyfPvt. Ltd..

33

CHAPTER 3
NEED, SCOPE AND OBJECTIVE
OF STUDY

34

3.1 NEED OF THE STUDY


The casting industry is basically manufacturing based industry. Through this study we are going
to identify the importance of CRM in the casting industry. How it is benefited from CRM? Is
their any relevance of implementing CRM? And what role does information technology can play
in CRM?
3.2 SCOPE OF THE STUDY
The scope of the study was limited to Kaer Lyf Limited, Jalandhar.
3.3 OBJECTIVE OF THE STUDY
1.

To analyse the current practices of CRM adopted by Kaer Lyf.

2.

To examine out the impact of CRM on the profitability of the organization.

3.

To investigate the factors affecting the CRM practices by Company.

4.

To analyse the role of CRM at Kaer Lyf.

35

CHAPTER NO.4
RESEARCH METHODOLOGY

36

RESEARCH METHODOLOGY
A research design is simply a plan for study in collecting and analyzing the data. It helps the
researcher to conduct the study in an economical method and relevant to the problem. Research
methodology is a systematic way to solve a research problem. The methodology should combine
economy with efficiency
Every project should be done scientifically and to have that system a proper methodology should
be followed to have the proper, logical, rational and systemically analysis of data. So every
should go through the method which can provide optimum result to the leader.
Research Methodology is a way to systematically solve the research problem. In it we study the
various steps that are generally adopted by a researcher in study in his research problem along
with the logic behind them. Research methodology concerning a research problem or study
provides answers to various likes, why a research study has been conduced, what techniques has
been used for analysis the data and similar other questions.
In a research there are various method are used for research. The selection of method to be used
depends upon the nature of the problem selected and the kind of data necessary for its solution.
Methods selected should always be appropriate to the problem under investigation, feasible, well
planned and will understand. Some changes and additions in the details of method may be
necessary task. The study proceeds but the main plan of approach should be ready at the start and
the researcher should always be able to describe it clearly.
4.1 Research design
The study conducted here is exploratory cum descriptive. The descriptive study explains the
existing variables of the research. And analysis the change happens with the time. Exploratory
research explains the relationship between different variables in the research both can use at the
same time.

Descriptive explains both qualitative and quantative aspect of the research. These are basically
non experimental types of research. Experimental type of research does not use because
situation, events can change to obtain results which does not possible in case of this research
study.

37

4.2 Sampling Design


A sample design is a definite plan for obtaining a sample from a given population . it refers to the
technique or the procedure would adopt in selecting items for the sample. design may as well lay
down the number of items to be included in the sample.
4.2.1 Universe
the universe can be finite or infinite. In finite the number of items is certain and in infinite the
number of items is uncertain. Finite universe is defined in this study.
4.2.2 Sampling Frame
Sampling frame is a population from which sample is drawn. For this the source list is prepare
like number of workers in a factory, how many males and females. In the study employees
consider as a sampling frame.
4.2.3 Sampling Unit
A decision has to be taken concerning a sampling unit before selecting sample. Kaer Lyf is
consider as a sampling unit.
4.2.4 Sampling size
It refers to the number of items to be selected from the universe to constitute a sample. The size
of the sample is 50.

4.2.5 Sampling Technique


Sampling technique is a method through which the sample is selected. Convenient sampling
technique is use in the study.

4.3 DATA COLLECTION AND ANALYSIS


4.3.1 Collection of the data
There are two types of data.

38

Secondary data
Secondary data are those data which are primarily collected by the other person for his own
purpose and now we use these for our purpose secondly. Secondary data collected from various
sources like magazines, reports of past researchers, company journals etc. secondary data
provides the basis for the new research and help in define the objective of research like which
factors had not covered by the past researchers, analyzing the trends changing with the time
Primary data
Primary data is that data which is collected for the first time. These data are basically observed
and collected by the researcher for the first time. I have used primary data for my project work.
This data have been collected by questionnaire in the company. Primary data is analysis to obtain
the result in efficient manner.
4.3.2 Tools of presentation and analysis
Tool of presentation and analysis used in this study are as follow:
1. Tables
2. Pie graphs
4.4 Limitations of Customer Relationship Management

Time constraint is unavoidable limitation of my study.


Financial problem is also there in completing this project in a proper way.
As no work has been done earlier in this regard so scarcity of secondary data is also
there.
Inadequate disclosure of information is also the problem.

39

CHAPTER 5
DATA ANALYSIS
AND
INTREPRETATION

40

Statement1.

Who are your customers?

a)

Wholesaler

b)

Retailers
Table 5.1 Showing Particular Customers

Customer

No. of respondents

Percentage

Wholesaler

50

100%

Retailers

Total

50

100%

Fig. 5.1 Showing Particular Customers


120%
100%
80%
wholesale

60%

retail
40%
20%
0%

customer

Analysis and Intrepretation


The whole customers in Kaer Lyf are wholesalers and manufacture the product according to
customer need. Domestic and foreign both are customer of Kaer Lyf.

41

Statement2.
a)

Yes

b)

No

Are your customers needs clearly defined ?

Table 5.2 showing customer needs defined


Customer needs

No. of respondent

Percentage

Yes

50

100%

No

Total respondents

50

100%

Fig.no.5.2 showing customer needs


120%
100%
80%
yes

60%

no

40%
20%
0%

needs

Analysis and Interpretation


The customer needs are clearly defined in Kaer Lyf. The technical team of Kaer Lyffirst identify
the instructions provided by the customer and then prepare model for the customer. After
receiving the model, the customer test the model to examine that whether it is prepare according
to his requirement. Once the customer satisfied and then further confirmation provided to
complete the order.

42

Statement3.
a)

Yes

b)

No

Do you conduct customer satisfaction surveys?

Table 5.3 Showing Customer Satisfaction Survey


Satisfaction survey

No. of respondents

Percentage

Yes

34

60.80%

No

16

39.20%

Total respondents

50

100%

Figure 5.3 Showing Customer Satisfaction Survey


fig. 5.3 customer satisfaction survey

yes
no

39%
61%

Analysis and Interpretation


Once the order manufactured and placed to the customer after than the customer satisfaction
surveys held to know the reaction about the product manufacture. In this surveys , gather the
information about product satisfy the need of customer , customer does not face problem in the

43

handling of product and

product performance according to specified performance in the

contract.
Statement4.

Do you communicate results of your customer satisfaction surveys regularly

throughout the company?


a)

Yes

b)

No
Table 5.4 Showing Result Of Communication Of Survey

Communication Survey

No. of respondents

Percentage

Yes

30

60%

No

20

40%

Total respondents

50

100%

Figure 5.4 Showing Result Of Communication Of Survey


fig. 5.4 showing result of communication survey

yes
no

40%
60%

Analysis and Intrepretations


The customer satisfaction surveys results communicate throughout the company to improve the
customer relationship. if any negative results provided by the customer then the meetings
arrange in the Kaer Lyf to identify the problems face by the customer like quality, time period
44

delivery etc and then make arrangements to compensate the customer to provide satisfaction and
for customer retention.

Statement5. How do you get customer comments and complaints?


a)

Face to face interview.

b)

formal surveys.

c)

Others means

Table 5.5 Showing Customer Comments And Complaints


Customer comments

No. of respondents

Percentage

Face to face interviews

20

40%

Formal surveys

25

50%

Other means

05

10%

Total respondents

50

100%

Figure 5.5 Showing Customer Comments And Complaints


fig. 5.5 showing customer comments and complaints

10%
40%

50%

Analysis and Intrepretation

45

interviews
surveys
other means

To get the customer comments and complaints, the most consider method is formal surveys.
Because it is easy and simple. Face to face interviews also opted for receive customer comments
and complaints. Other methods are telephone medium, company representatives etc.

Statement6. Do you provide credit facility to your customers?


a)

Yes

b)

No
Table 5.6 Showing Credit Facility

Credit facility

No. Of respondents

Percentage

Yes

33

63.33%

No

17

36.67%

Total

50

100%

Figure 5.6 Showing Credit Facility


fig. 5.6 showing credit facility to customers

yes
no

37%
63%

Analysis and Intrepretation

46

In Kaer Lyf, credit facility provided to the routine customers at preference. The credit provided
to the customer at the basis of past dealing records. The minimum credit period is weak and
maximum period is month.

Statement7. Do you give concessions to your regular customer?


a)

Yes

b)

No
Table 5.7 Showing Concession To Regular Customer

Concession

No. Of respondents

Total

Yes

35

70%

No

15

30%

Total

50

100%

Figure 5.7 Showing Concession To Regular Customer


fig. 5.7 showing concession to regular customer

30%

yes
no
70%

Analysis and Intrepretation


47

Concessions also provided to the regular customer because no one can lose the customer whom
engage with the company for a long time. In Kaer Lyf the preference provided to the customer
rather than profit . sometime discounts provided to the customer and extra benefits provided
like technical support free of cost etc.

48

Statement8. Do you have a concept of internal service?


a)

Yes.

b)

No.
Table 5.8 Showing Internal Service Concept

Internal service

No. Of respondents

Percentage

Yes

35

70%

No

15

30%

Total

50

100%

Figure 5.8 Showing Internal Service Concept


fig. 5.8 showing internal service concept

30%

yes
no
70%

Analysis and Intrepretation


In Kaer Lyf, most of the employees agrees that the concept of internal service follow.

49

Statement9. How much is the role of computers in serving the customers?


a)

Plays a big role

b)

Not much role to play


Table 5.9 Showing Role Of Computer

Role of computer

No. Of respondents

Percentage

Plays a big role

35

70%

Not much role to play

15

30%

Total

50

100%

Figure 5.9 Showing Role Of Computer

30%

Plays Big Role


Not Much Role to Play
70%

Analysis and Intrepretation


In Kaer Lyf, more than 70% employee agree that the computers play an important role in serving
customers because in present time customer records can access easily and fast with the help of
computer which help to provide fast and better service to customer and in case of customer
satisfaction also.

50

Statement10. Do you have centralized database for customer information?


a)

Yes

b)

No such database.

Table 5.10 Showing Database Information


Database

No. Of respondents

Percentage

Yes

15

30%

No such database

35

70%

Total

50

100%

Figure 5.10 Showing Database Information

fig. 5.10 showing database information

30%

yes
no

70%

Analysis and Intrepretation


Only 30% employee agree that customer database have centralised which help in fast access to
customer records and help to solve customer queries in efficient way. Majority of employee does

51

not agree with that because they have not direct access to customer database. Only senior
employee can access the centralised database
Statement11. Is there any improvement in average sale per customer?
a)

Yes

b)

No
Table 5.11 Showing Improvement In Average Sale Per Customer

Average sales

No. Of respondent

Percentage

Yes

26

52%

No

24

48%

Total

50

100%

Figure 5.11 Showing Improvement In Average Sale Per Customer

fig. 5.11 showing improvement in average sale per customer

48%

52%

yes
no

Analysis and Interpretation


At this point more than 50% Employee agree that average sale per customer increased with
customer relationship management.

52

53

Statement12. Is there any improvement in customer response rate to the marketing


activities?
a)

Yes

b)

No
Table 5.12 Showing Improvement To Customer Response Rate

Response rate

No. Of respondents

Percentage

Yes

32

64%

No

18

36%

Total

50

100%

Figure 5.12 Showing Improvement To Customer Response Rate


fig. 5.12 showing improvement in customer response rate

36%
64%

Analysis And Intrepretation

54

yes
no

By CRM , customer response rate increase towards company. With frequent contact with the
customer, increase the knowledge about customer needs and wants which help in to manufacture
better product and customer also consider CRM as important part to receive the better output.

Statement 13. Is the working environment is conducive to the well-being and morale of all
Employees?
a)

Yes

b)

No.
Table 5.13 Showing Conducive Environment To Employees

Conducive Environment

No. of respondents

Percentage

Yes

30

60%

No

20

40%

Total

50

100%

Figure 5.13 Showing Conducive Environment To Employees


fig. 5.12 showing conducive environment to employees

yes
no

40%
60%

55

Analysis and Intrepretation


Environment in Kaer Lyf is conducive which help to boost the morale of the employees

and

also help in develop better co-ordination between them. Healthy environment helps in retention
of customer, provide sale service at time, and prepare different plans for CRM.
Statement 14. Is there commitment from top management to support the customer focused
service concept?
a)

Yes

b)

No
Table 5.14 Showing Support From Top Management

Support from top management

No. of respondents

Percentage

Yes

37

74%

No

13

26%

Total

50

100%

Figure 5.14 Showing Support From Top Management

fig. 5.14 showing support from top management

26%

yes
no
74%

56

Analysis and intrepretation


Support from top management is necessary to perform any major task in organization. In Kaer
Lyf, above 70% employees agree that top management support the customer relationship
management in the organization.

CHAPTER 6
FINDINGS OF THE STUDY

57

Findings
After going through the process of research, the current study has come across with the following
important findings:

The customers of company are the wholesalers throughout India. company also export the

product to countries like germany.


The needs of the customers are clearly defined and the products are customized according to

the needs of the customers.


Customers comments and complaints are welcomed and resolved quickly and positively.

Comments and complaints are taken through formal surveys .


The company conducts customer satisfaction surveys through research agencies.
The company provides credit facility to its customers up to 30 days
Sales persons of the company maintain frequent and informative communication with the

customer .
The
average

response to the marketing activities is also improving. Customer retention is also improving
The factors which have an impact on the CRM are organization culture, support from top

sale

per

customer

has

increased

and

customers

management, interpersonal skill of the sales personals and working environment of the
company.

58

CHAPTER 7
CONCLUSIONAND RECOMMENDATION

59

7.1 CONCLUSION
Kaer Lyf is a sub unit of hero group which mainly deals in die and casting. It is mainly order
based company means the products manufacture of herbal products according to the customer
needs and specifications. The customer of Kaer Lyf is wholesaler, whom belong to another
industry. Generally Kaer Lyf prepare components and sub parts for another industry. The
products and services provided by the Kaer Lyf customized according to the customer
requirement means the customer needs, specifications clearly defined and also communicate with
the customer after the delivery of product to know about product performance, any technical
assistance required by the customer, customer satisfaction.
From this study it can be concluded that the customer relationship management in Company is
satisfactory. Customer relationship management has a certain impact on the profitability of the
company. Average sale per customer has increased . Customer response rate towards marketing
activities is also improving. There are various factors affecting the customer relationship
management like working environment of the company, support from top management and
coordination among the departments of the company. Information technology is used as much as
in the Kaer Lyf. The customer of the company from outside the country as well. So technology
plays a great role to make contact with them. Centralized database of customers framed which is
helpful in determining the customer trends towards his comp

60

7.2 RECOMMENDATIONS

Company should also include low level supervisor in customer relating decision for enhance

the CRM.
Different department should also formed for efficient functioning of CRM
Customers encouraged to give complaints and suggestions so that the company can improve

his working.
There should be more and more emphasis given by the company for satisfying the customer

up to a apex limit and by providing the utility of every penny of his money.
There should be more use of information technology.
The company should be flexible to bend its rules and procedures in the clients favour.
The company can communicate and develop stronger customer bonding by providing social
and financial benefits.

61

62

REFRENCES
Bennani, A et al. (2007). An exploratory study of implementation of customer relationship
management strategy. Business Process Management Journal, 13(1): 139 164. Retrieved on
Feb 4, 2009 from
http://emeraldinsight.com/Insight/viewContentItem.do;jsessionid=A32B5F9562B324C5219
A7D953E1ABC94?contentType=Article&contentId=1593454
Bellou, V et al. (2008). The impact of internal service quality on customer service behaviour:
Evidence from the organisationing sector. International Journal of Quality & Reliability
Managemen, 25(9): 943-954. Retrieved on Feb 6, 2009 from
ttp://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=3EFA938BAFF5C762
2E1A5C9F7B1CD71F?
contentType=Article&hdAction=lnkhtml&contentId=1747871&history=false
Chen, I et al. (2003). Understanding customer relationship management (CRM): People,
process and technology. Business Process Management Journal, 9(5): 672 688. Retrieved
on Feb 7, 2009 from http://www.emeraldinsight.com/Insight/viewContentItem.do?
contentType=Article&hdAction=lnkhtml&contentId=843553
Geib, M et al. (2006). CRM collaboration in financial services networks: a multi-case
analysis. Journal of Enterprise Information Management, 19(6): 591 607. Retrieved on Feb
4, 2009 from
http://emeraldinsight.com/Insight/viewContentItem.do;jsessionid=A32B5F9562B324C5219
A7D953E1ABC94?contentType=Article&contentId=1580514
Kevork, E et al. (2009). CRM literature: conceptual and functional insights by keyword
analysis. Marketing Intelligence & Planning, 27(1): 48 85. Retrieved on Feb 6, 2009 from
http://emeraldinsight.com/Insight/viewContentItem.do;jsessionid=A32B5F9562B324C5219
A7D953E1ABC94?contentType=Article&contentId=1768906

63

Khan, V et al. (2008). Determinants Of Performance In Retail Organisationing: Perspectives


Of Customer Satisfaction And Relationship Marketing. Retrieved on Jan 23, 2009 from
//www.thefreelibrary.com/Determinants+of+performance+in+retail+organisationing:
+perspectives+of...-a0180402934
Rangone, A et al. (2007). Mobile customer relationship management: an exploratory analysis
of Italian applications. Business Process Management Journal, 13(6): 755 770. Retrieved
on Feb 4, 2009 from
http://emeraldinsight.com/Insight/viewContentItem.do;jsessionid=A32B5F9562B324C5219
A7D953E1ABC94?contentType=Article&contentId=1637491
Ryals, L et al. (2001). Cross-functional issues in the implementation of relationship
marketing through customer relationship management. European Management Journal,
19(5): 534 542. Retrieved on Feb 4, 2009 from http://www.sciencedirect.com/science?
_ob=ArticleURL&_udi=B6V9T-43TG4KM1&_user=10&_rdoc=1&_fmt=&_orig=search&_sort=d&view=c&_acct=C000050221&_ver
sion=1&_urlVersion=0&_userid=10&md5=07ca2c4106eedbc70f4d80241d7c8816
Sinisalo, J et al. (2007). Mobile Customer Relationship Management: Underlying Issues And
Challenges. Business Process Management Journal, 13(6): 771 787. Retrieved on Feb 6,
2009 from
http://www.emeraldinsight.com/Insight/viewContentItem.do;jsessionid=28615B9AA981FC6
160088BFF389781BE?
contentType=Article&hdAction=lnkpdf&contentId=1637492&history=true
Zineldin, M (2005). Quality And Customer Relationship Management (CRM) As
Competitive Strategy In The Swedish Organisationing Industry. The TQM Magazine, 17(4):
329 344. Retrieved on Jan 28,2009 from

64

65

QUESTIONNAIRE
1.

Who are your customers?

a)

Wholesaler

b)

Retailers

2.

Are your customers needs clearly defined ?

a)

Yes

b)

No

3.

Do you conduct customer satisfaction surveys?

a)

Yes

b)

No

4.

Do you communicate results of your customer satisfaction surveys regularly throughout the
Company?

a)

Yes

b)

No

Q5. How do you get customer comments and complaints?


a)

Face to face interview.

b)

formal surveys.

c)

Others means

Q6.

Do you provide credit facility to your customers?

a)

Yes

b)

No

Q7. Do you give concessions to your regular customer?


a)

Yes

b)

No

66

Q8. Do you have a concept of internal service?


a)

Yes.

b)

No

Q9. How much is the role of computers in serving the customers?


a)

Plays a big role

b)

Not much role to play

c)

No role to play

Q10. Do you have centralized database for customer information?


a)

Yes

b)

No such database.

Q11. Is there any improvement in average sale per customer?


a)

Yes

b)

No

Q12. Is there any improvement in customer response rate to the marketing activities?
a)

Yes

b)

No

Q13. Is the working environment is conducive to the well-being and morale of all
Employees?
a)

Yes

b)

No.

Q14. Is there commitment from top management to support the customer focused service
concept?
a) Yes
b) No
67