"Customer Relationship Management"

Introduction:-

The biggest management challenge in the new millennium of liberalization andglobalization

for a business is to serve and maintain good relationship with the king –Thecustomer.

In the past producers took their customers for granted, because at that time thecustomers
were not demanding nor had alternative source of supply or suppliers. Buttoday there is a
radical transformation. The changing business environment ischaracterized by economic
liberalization, increasing competition, high consumer choice,demanding customer, more
emphasis on quality and value of purchase etc.All these changes have made today’s
producer shift from traditional marketing to modernmarketing. Modern marketing calls for
more than developing a product, pricing it,promoting it and making it accessible to target
customer. It demands building trust, abinding force and value added relationship with the
customers.The process of developing a cooperative and collaborative relationship between
the buyerand seller is called customer relationship management shortly called CRM.

CRM (Customer Relationship Management):-

CRM (customer relationship management) is an information industry term for

methodologies, software, and usually Internet capabilities that help an enterprise manage
customer relationships in an organized way. For example, an enterprise might build a
database about its customers that described relationships in sufficient detail so that
management, salespeople, people providing service, and perhaps the customer directly could
access information, match customer needs with product plans and offerings,
remindcustomers of service requirements, know what other products a customer had
purchased,and so forth.

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According to one industry view,CRM consists of

 :Helping an enterprise to enable its marketing departments to identify and

targettheir best customers, manage marketing campaigns and generate quality leads forthe
sales team.

 Assisting the organization to improve telesales, account, and sales managementby

optimizing information shared by multiple employees, and streamlining existing processes
(for example, taking orders using mobile devices)

 Allowing the formation of individualized relationships with customers, with the aim
of improving customer satisfaction and maximizing profits; identifying the most profitable
customers and providing them the highest level of service.

 Providing employees with the information and processes necessary to know their
customers understand and identify customer needs and effectively build relationships
between the company, its customer base, and distribution partners.

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Aims of 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 tomake
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 thosefirst time customers into repeat customers. Then the
company tries to convert theserepeat customers into clients – they are those people who buy
only from the company inthe relevant product categories. The next challenge for the
company is to convert theseclients into advocates. Advocates are those clients who praise
the company andencourage others to buy from it.The ultimate challenge is to convert these
advocates into partners where the customersand 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 lifetime value by converting customers into partners.In
CRM the company tries to identify that small percentage (20%) of key account
holderswhose contribution to the company revenues is high (80%). So from this point of
view,CRM is also known as KEY ACCOUNT MANAGEMENT

What is customer relationship management?

Customer relationship management (CRM) is an approach of managing company’s

interaction with current and future customers. It often involves using technology to organize,
automate, and synchronize sales, marketing, customer service, and technical support. “CRM
is concerned with the creation, development and enhancement of individualised customer
relationships with carefully targeted customers and customer groups resulting in maximizing
their total customer life-time value”. CRM is “the development and maintenance of mutually
beneficial long-term relationships with strategically significant customers”.

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CHARACTERISTICS:

 CRM is a customer-oriented feature with service response based on customer input,

one-to- one solutions to customers' requirements, direct online communications with
customer and customer service centres that are intended to help customers solve their
issues. It includes the following functions:
 Sales force automation, which implements sales promotion analysis, automates the
tracking of a client's account history for repeated sales or future sales, and
coordinates sales, marketing, call centres, and retail outlets.
 Data warehouse technology, used to aggregate transaction information, to merge the
information with CRM products, and to provide key performance indicators.
Opportunity management which helps the company to manage unpredictable growth
and demand, and implement a good forecasting model to integrate sales history with
sales projections.
 CRM systems that track and measure marketing campaigns over multiple networks,
tracking customer analysis by customer clicks and sales .

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ORIGIN OF CRM

Customer relationship management was originated in early 1970s.

CRM came as a process that dealt with relationships with customers surpassing the whole
business. As said by Father of management “The true business of every company is to make
and keep customers”

IMPACT ON CUSTOMER SATISFACTION

The implementation of CRM is likely to have an effect on customer satisfaction for at least
three reasons:

Firstly, firms are able to customize their offerings for each customer. By accumulating
information across customer interactions and processing this information to discover hidden
patterns, CRM applications help firms customize their offerings to suit the individual tastes
of their customers. This customization enhances the perceived quality of products and
services from a customer's viewpoint, and because perceived quality is a determinant of
customer satisfaction, it follows that CRM applications indirectly affect customer
satisfaction.

Secondly, CRM applications enable firms to provide timely, accurate processing of customer
orders and requests and the on-going management of customer accounts. For example,
Piccolo and Applegate (2003) discuss how Wyndham uses IT tools to deliver a consistent
service experience across its various properties to a customer. Both an improved ability to
customize and a reduced variability of the consumption experience enhance perceived
quality, which in turn positively affects customer satisfaction.

Thirdly, CRM applications also help firms manage customer relationships more effectively
across the stages of relationship initiation, maintenance, and termination

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TYPES:

Call centers

As well as tracking, recording and storing customer information, CRM systems in call
centres codify the interactions between company and customers by using analytics and key
performance indicators to give the users information on where to focus their marketing and
customer service. The intention is to maximize average revenue per user, decrease churn and
decrease idle and unproductive contact with the customers.CRM software can also be used
to identify and reward loyal customers over a period of time. Growing in popularity is the
idea of gratifying customer service environments. The repetitive and tedious act of
answering support calls all day can be draining, even for the most enthusiastic customer
service representative. When agents are bored with their work, they become less engaged
and less motivated to do their jobs well. They are also prone to making mistakes.
Gratification tools can motivate agents by tapping into their visceral need for reward, status,
achievement, and competition.

Business-to-business According to a Sweeney Group definition, CRM is "all the tools,

technologies and procedures to manage, improve, or facilitate sales, support and related
interactions with customers, prospects, and business partners throughout the enterprise". It
assumes that CRM is involved in every B2B transaction. Despite the general notion that
CRM systems were created for the customer-centric businesses, they can also be applied to
B2B environments to streamline and improve customer management conditions. For the best
level of CRM operation in a B2B environment, the software must be personalized and
delivered at individual levels.

Social media Balaam (2010) presented evidence of a significant increase in the use of social
networking sites, especially among young people. This has caused companies to use these
sites to draw attention to their products, services and brands, with the aim of building up
customer relationships to increase demand.

Some CRM systems integrate social media sites like Twitter, LinkedIn and Face book to
track and communicate with customers sharing their opinions and experiences with a
company, products and services.

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Why – customer relationship management

 A satisfied customer in 10 years will bring 100 more customers to the company.

 It costs 7 time more to attract a new customer than to serve an old one.

 20% of the company’s loyal customers account for 80% of its revenues. (Pareto’s
principle).

 The chances of selling to an existing customer are 1 in 2, the chances of selling to a

new customer are 1 in 16.

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Benefits of Customer Relationship Management:-

A Customer Relationship Management system may be chosen because it is thought to

provide the following advantages:

• Quality and efficiency

• Decrease in overall costs Decision support

• Enterprise ability

• Customer Attentions

• Increase profitability

• Improved planning

• Improved product development

Customer service

:CRM software provides a business with the ability to create, assign and manage requests
made by customers. An example would be Call Center software which helps to direct a
customer to the agent who can best help them with their current problem. Recognizing that
this type of service is an important factor in attracting and retaining customers, organizations
are increasingly turning to technology to help them improve their clients’ experience while
aiming to increase efficiency and minimize costs. CRM software can also be used to identify
and reward loyal customers which in turn will help customer retention. Even so, a 2009
study revealed that only 39% of corporate executives believe their employees have the right
tools and authority to solve client problems.

Increase in customer retention Customer satisfaction ratings improved Service calls

deflected from call center to online forum Reduction in overall customer service costs

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Marketing:

CRM systems for marketing help the enterprise identify and target potential clients and
generate leads for the sales team. A key marketing capability is tracking and measuring
multichannel campaigns, including email, search, social media, telephone and direct mail.
Metrics monitored include clicks, responses, leads, deals, and revenue. Alternatively,
Prospect Relationship Management (PRM) solutions offer to track customer behavior and
nurture them from first contact to sale, often cutting out the active sales processal together.
In a web-focused marketing CRM solution, organizations create and track specific web
activities that help develop the client relationship. These activities may include such
activities as free downloads, online video content, and online web presentations Product- or
company-related postings Positive product comments, reviews Visitors following link from
social channel to online store’s URL Visitors referred to website from online friend

Sales:-

Sales Force Automation(SFA):

involves using software to streamline all phases of the sales process, minimizing the time
that sales representatives need to spend on eachphase. This allows a business to use fewer
sales representatives to manage their clients.At the core of SFA is acontact management
system for tracking and recording everystage in the sales process for each prospective client,
from initial contact to final disposition. Many SFA applications also include insights into
opportunities, territories, sales forecasts and workflow automation. More sales lead with
expressed interest or needIncrease in referralsReduce cost per lead acquired Key social
influencers identified and engaged (invited to write a blog, for instance, or otherwise
participate in a company’s online community)Overall increase in online sales and/or online
customers High response rate to coupon or promotion offered on Facebook or other social
channel Increased purchasing from social channel visitors vs. regular online visitors

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Product development:-

New ideas for future products or services generated via contests or “crowdsourcing,” in
which online groups brainstorm and then vote on best ideasResponses to online surveys to
vote on new product features or upgrades

Horizontal vs. Vertical:-

Major CRM vendors offer horizontal CRM solutions. In order to tailor a horizontal
CRMsolution, companies may use industry templates to overlay some generic best practices
by industry on top of the horizontal CRM solution. Horizontal CRM vendors may also rel
yon value added re seller networks of systems integrator to build vertical solutions and sell
them as 3rd party add-ons or to come in and customize the solution to fit into a particular
scenario.Vertical CRM vendors focus on a particular industry. As a general rule of thumb in
CRM, it's ten times more costly to build a vertical solution from a horizontal software
program than it is to find a particular vertical solution that is already tailored to your
business model and industry.

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How to introduce CRM in the company :-

:Four key steps for putting one to one marketing program to work

Step 1: Identify your customers:

To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers. It is crucial to
know the customer details as much as possible, not just their names or address, but their
habits, preferences and so forth.

Step 2: Differentiating your customers

Customers are different in two principal ways; they represent different levels of value and
have different needs. Once the company identifies its customers differentiating them will
help the company to focus its efforts to gain the most advantage with the most valuable
customers.

Step 3: Interacting with the customer

Interaction is also a crucial component of a successful CRM initiative. It is important to

remember that interaction just not occur through marketing and sales channels, customer
interact in many different ways with many different areas of the organization so to foster
relationship all the areas of the organization must be accessible to the customer.

Step 4: Customize your enterprise’s behavior

Ultimately to lock a customer into a relationship a company must adapt some aspect of its
behavior to meet customer’s individually expressed needs this might mean mass

customizing a manufactured product or it might involve tailoring some aspect of the service
surrounding the product

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Challenges:-

Successful development, implementation, use and support of customer relationship

management systems can provide a significant advantage to the user, but often there are
obstacles that obstruct the user from using the system to its full potential. Instances of
aCRM attempting to contain a large, complex group of data can become cumbersome and
difficult to understand for ill-trained users. The lack of senior management sponsorship can
also hinder the success of a new CRM system. Stakeholders must be identified early in the
process and a full commitment is needed from all executives before beginning the
conversion. But the challenges faced by the company will last longer for the convenience of
their customers. Additionally, an interface that is difficult to navigate or understand can
hinder the CRM’s effectiveness, causing users to pick and choose which areas of the system
to be used, while others may be pushed aside. This fragmented implementation can cause
inherent challenges, as only certain parts are used and the system is not fully functional. The
increased use of customer relationship management software has also led to an industry-
wide shift in evaluating the role of the developer in designing and maintaining its software.
Companies are urged to consider the overall impact of a viable CRM software suite and the
potential for good or bad in its use.

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 Significance of the study

The CRM (customer relationship management) is an integrated effort to strengthen the

network of relationship for the mutual benefit of both the parties. The biggest management
challenge in the new millennium of liberalization and globalization for a business is to
maintain good relationship with the king – the customer. This study is of great significance
because

 5% increase in the customer retention will increase the profit up to 125%.

 It costs seven times more to attract a new customer than to serve an old one.

 20% of the company’s loyal customers account for the 80% of its revenues.

 To study on customer relationship management would enable the researcher to

knowabout the CRM practices adopted in the Paint industry.

Review of the existing literature

With the available literature we can summarize CRM in the words of various authors
asfollows-

Customer Relationship Management marketing can be defined as “ an integrated effort to

identify, maintain and build up a network with the individual customer sand to continuously
strengthen the network for the mutual benefit of both parties,through interactive,
individualized and value added contracts over a long period of time.

Conceptualization:-

A firm in paint industry has to maintain good relations with its customers. They have
toretain the customers for a long time to avail the benefit of their relations. The customer
relationship management is one of the effective tools to identify, establish and maintain
relationship with the customers.

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 CRM in the BHEL Industry

In BHEL industry one company sell its product to another company. For example a yarn
manufacturing company sell to fabric manufacturing company. A fabric manufacturing
company sell fabric to apparel company. The main customers of the companies in the BHEL
industry are the wholesalers. And the final product is sold to the wholesalers and retailers. In
this industry the customers are few and profit 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 likelihood 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 BHEL 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 GE’s
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.

How to introduce CRM in the company

There are four key steps for putting one to one marketing program to work –

Step 1 : Identify your customers

To launch a one to one initiative the company must be able to locate and contact a fair
number of customers or at least a substantial portion of its valuable customers. It is crucial to
know the customer details as much as possible, not just their names or address, but their
habits, preferences and so forth.

Step 2 : Differentiating your customers

Customers are different in two principal ways, they represent different levels of value and
have different needs. Once the company identifies its customers differentiating them will

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help the company to focus its efforts to gain the most advantage with the most valuable
customers.

Step 3 : Interacting with the customer

Interaction is also a crucial component of a successful CRM initiative. It is important to

remember that interaction just not occur through marketing and sales channels, customer
interact in many different ways with many different areas of the organization so to foster
relationship all the areas of the organization must be accessible to the customer.

Step 4 : Customize your enterprise’s behavior

Ultimately to lock a customer into a relationship a company must adapt some aspect of its
behavior to meet customer’s individually expressed needs this might mean mass
customizing a manufactured product or it might involve tailoring some aspect of the service
surrounding the product.

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COMPANY PROFILE

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Big Bazaar

Big Bazaar is a chain of department stores in India currently with 100 outlets. It is owned
by Pantaloon Retail India Ltd, Future Group. It works on the same economic model as Wal-
Mart and has been successful in many Indian cities and small towns. The idea was pioneered
by entrepreneur Mr. Kishore biyani, the CEO of Future Group. Big Bazaar offers a wide
range of products including fashion and apparels, food products, general merchandise,
furniture, electronics, books, fast food and leisure and entertainment sections. With its wide
product range it fulfils the need of every consumer of different age group. The idea was
pioneered by Kishore Biyani; the head of Pantaloon Retail India Ltd. Kishore Biyani follows
a 3C theory: Change and Confidence among the entire population is leading to rise in
Consumption. With this strategy the company has earned huge profits and records a good
turnover every year. Big Bazaar has divided India into 3 different sectors.

India one: Consuming class which includes lower middle and upper middle class (14% of
India's population).

India two: Serving class which includes people like liftmen, household helps, office peons,
drivers, washermen, etc. (55% of India's population)

India three: Struggling class (remaining 31% of India's population).

Big Bazaar has tried to focus to make products for these 3 sectors so that everyone can
afford the products according to their purchasing power and fortunately, has been successful.

On successful completion of ten years in Indian market, in 2011, Big Bazaar has come up a
new logo with a new tag line: ‘Naye India Ka Bazaar’, replacing the earlier one: 'Isse Sasta
Aur Accha Kahin Nahin’. The company mainly focuses to satisfy its customers with
different types of products. That is why it is known as shopping under one roof. Customers
find it easy to locate the products of various types with different price range in one retail
outlet. Big Bazaar has satisfied its customers to a good extend.

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 COMPANY HISTORY

1987 Company incorporated as ‘Manz Wear Private Limited’. Launch of Pantaloons trouser,
India’s first formal trouser brand.

1991 Launch of BARE, the Indian jeans brand. 1992 Initial public offer (IPO) was made in
the month of May.

1994 The Pantaloon Shoppe – exclusive menswear store in franchisee format launched
across the nation. The company starts the distribution of branded garments through multi-
brand retail outlets across the nation.

1995 John Miller – Formal shirt brand launched.

1997 Company enters modern retail with the launch of the first 8000 square feet store,
Pantaloons in Kolkata.

2001 Three Big Bazaar stores launched within a span of 22 days in Kolkata, Bangalore and
Hyderabad.

2002 Food Bazaar, the supermarket chain is launched.

2004 Central - India’s first seamless mall is launched in Bangalore.

2005 Group moves beyond retail, acquires stakes in Galaxy Entertainment, Indus League
Clothing and Planet Retail. Sets up India’s first real estate investment fund Kshitij to build a
chain of shopping malls.

2006 Future Capital Holdings, the company’s financial is formed to manage over $1.5
billion in real estate, private equity and retail infrastructure funds. Plans forays into retailing
of consumer finance products. Home Town, a home building and improvement products
retail chain is launched along with consumer durables format, Ezone and furniture chain,
Furniture Bazaar. Future Group enters into joint venture agreements to launch insurance
products with Italian insurance major, Generali. Forms joint ventures with US office
stationery retailer, Staples.

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2007 Future Group crosses $1 billion turnover mark. Specialised companies in retail media,
logistics, IPR and brand development and retail-led technology services become operational.
Pantaloon Retail wins the ‘International Retailer of the Year’ at US based National Retail
Federation convention in New York and ‘Emerging Retailer’ of the Year

award at the World Retail Congress held in Barcelona. Futurebazaar.com becomes India’s
most popular shopping portal.

2008 Future Capital Holdings becomes the second group company to make a successful
Initial Public Offering in the Indian capital markets. Big Bazaar crosses the 100-store mark,
marking one of the fastest ever expansion of a hypermarket format anywhere in the world.
Total operational retail space crosses 10 million square feet mark. Future Group acquires
rural retail chain, ‘Aadhar’ present in 65 rural locations.

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 VISION & MISSION

Vision: “To Deliver Everything, Everywhere, Every time, to Every Indian Customer in the
most profitable manner.” One of the core values at Future Group is, ‘India ness’ and its
corporate credo is – “Rewrite rules, Retain values.”

Mission: We share the vision and belief that our customers and stakeholders shall be served
only by creating and executing future scenarios in the consumption space leading to
economic development.

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 CORE VALUES

Indianness: confidence in ourselves.

Leadership: to be a leader, both in thought and business.

Respect & Humility: to respect every individual and be humble in our conduct.
Introspection: leading to purposeful thinking.

Openness: to be open and receptive to new ideas, knowledge and information.

Valuing and Nurturing Relationships: to build long term relationships.

Simplicity & Positivity: Simplicity and Positivity in our thought, business and work.
Adaptability: to be flexible and adaptable, to meet new challenges.

Flow: to respect and understand the universal laws of nature

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REVIEW OF THE LITERATURE

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 REVIEW OF THE LITERATURE

literature we can summarize CRM in the words of various authors as follows-

According to Shani and Chalarani – Customer Relationship Management marketing can be

defined as “ an integrated effort to identify, maintain and build up a network with the
individual customers and to continuously strengthen the network for the mutual benefit of
both parties, through interactive, individualized and value added contracts over a long period
of time.

In the words of Lekha “ CRM aims at delivering better products and value to the customers
through better understanding of his needs.”

Kumar, V. (2016), “Customer relationship management (CRM)” refers to building one-to-

one relationships with customers that can drive value for the firm. This manuscript discusses
proven CRM strategies that companies can use as means of effective customer management
(CM). The continuing evolution of CM is made possible by understanding the interactive
relationships that develop between firms and customers and among customers themselves.
Firms will increasingly be able to customize marketing messages to larger target audiences
on the basis of the customer's expected response and the customer's value to the firm.

Cabãu Liviu-Gabriel (2015) this article is considered to be a “landmark in both academic

and business area, regarding the Customer Relationship Management (CRM)”. Based on
previous research found in the literature, the paper aims to clarify the concept of CRM.
Critical research results are reflected in the formulated responses on the following aspects of
CRM: CRM context, CRM definition, CRM importance and objectives, CRM failure and
CRM research. Finally, the article presents the main findings and some conclusions related
to the current research.

Thomas Dotzel, Venkatesh Shankar and Leonard L Berry. (2017) this research “evaluates
the effect of customer relationship management (CRM)” on customer knowledge and
customer satisfaction. An analysis of archival data for a cross-section of U.S. firms shows
that the use of CRM applications is positively associated with improved customer
knowledge and improved customer satisfaction. This article also shows that gains in

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customer knowledge are enhanced when firms share their customer-related information with
their supply chain partners.

Conceptualization

A firm in BHEL industry has to maintain good relations with its customers. They have
to retain the customers for a long time to avail the benefit of their relations. The customer
relationship management is one of the effective tool to identify, establish and maintain
relationship with the customers. With the help of this research we are going to identify the
importance of CRM in BHEL industry.

Focus of the problem

The BHEL industry is basically manufacturing based industry. Through this study we
are going to identify the importance of CRM in the BHEL industry. How it is benefited from
CRM? Is their any relevance of implementing CRM? And what role does information
technology can play in CRM?

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 OBJECTIVES OF CUSTOMER RELATIONSHIP MANAGEMENT

The key purpose of this study is to find the relationship among factors of customer
relationship management (Communication, Interpersonal Relationship and Efficiency) that
helps to improve service quality of BHEL INDUSTRY. It will help to look into the causes
of the problems that BHEL INDUSTRY Ltd is facing. The paper has been undertaken
mainly to find out whether Customer Relationship Management affects service quality in
context of BHEL INDUSTRY.

CRM, the technology, along with human resources of the company, enables the company to
analyze the behavior of customers and their value. The main areas of focus are as the name
suggests: customer ,relationship , and the management of relationship and the main
objectives to implement CRM in the business strategy are:

 To simplify marketing and sales process

 To make call centers more efficient
 To provide better customer service
 To discover new customers and increase customer revenue
 To cross sell products more effectively
 To know the customer satisfaction level towards BHEL Industries.
 To find out market penetration of BHEL INDUSTRIES

The CRM processes should fully support the basic steps of customer life cycle . The basic
steps are:

 Attracting present and new customers

 Acquiring new customers
 Serving the customers
 Finally, retaining the customers

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 SIGNIFICANCE OF THE STUDY
Customer Relationship management is the strongest and the most efficient approach in
maintaining and creating relationships with customers. Customer relationship management
is not only pure business but also ideate strong personal bonding within people.
Development of this type of bonding drives the business to new levels of success.

The idea of CRM is that it helps businesses use technology and human resources gain
insight into the behavior of customers and the value of those customers. If it works as hoped,
a business can provide better customer service, make call centers more efficient, cross
sellproducts more effectively, help sales staff close deals faster, simplify marketing and
salesprocesses, discover new customers, and increase customer revenues.It doesn't happen
by imply buying software and installing it. For CRM to be truly effective an organization
must first decide what kind of customer information it is looking for and it must decide what
it intends to do with that information. For example, many financial institutions keep track of
customers' life stages in order to market appropriate banking products like mortgages or
IRAs to them at the right time to fit their needs. Next, the organization must look into all of
the different ways information about customers comes into a business, where and how this
data is stored and how it is currently used.

Looking at some broader perspectives given as below we can easily determine why a
CRM System is always important for an organization.

1. A CRM system consists of a historical view and analysis of all the acquired or to be
acquired customers. This helps in reduced searching and correlating customers and to
foresee customer needs effectively and increase business.

2. CRM contains each and every bit of details of a customer, hence it is very easy for track a
customer accordingly and can be used to determine which customer can be profitable and
which not.

3. In CRM system, customers are grouped according to different aspects according to the
type of business they do or according to physical location and are allocated to different

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customer managers often called as account managers. This helps in focusing and N
concentrating on each and every customer separately.

4. A CRM system is not only used to deal with the existing customers but is also useful
inacquiring new customers. The process first starts with identifying a customer and
maintaining all the corresponding details into the CRM system which is also called
an‘Opportunity of Business’. The Sales and Field representatives then try getting
businessout of these customers by sophistically following up with them and converting them
into a winning deal. All this is very easily and efficiently done by an integrated CRM
system.

5. The strongest aspect of Customer Relationship Management is that it is very costeffective.

The advantage of decently implemented CRM system is that there is very less need of paper
and manual work which requires lesser staff to manage and lesser resources to deal with.
The technologies used in implementing a CRM system are also very cheap and smooth as
compared to the traditional way of business.

6. All the details in CRM system is kept centralized which is available anytime on fingertips.
This reduces the process time and increases productivity.

7. Efficiently dealing with all the customers and providing them what they actually need
increases the customer satisfaction. This increases the chance of getting more business
which ultimately enhances turnover and profit.

8. If the customer is satisfied they will always be loyal to you and will remain in business
forever resulting in increasing customer base and ultimately enhancing net growth of
business.

In today’s commercial world, practice of dealing with existing customers and thriving
business by getting more customers into loop is predominant and is mere a dilemma.
Installing a CRM system can definitely improve the situation and help in challenging the
new ways of marketing and business in an efficient manner. Hence in the era of business
every organization should be recommended to have a full-fledged CRM system to cope up
with all the business needs.

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In my study,the independent variables constitute a number of selected variables, as
identified in Literature on CRM. These variables are Communication, Interpersonal, and
Relationship and the Efficiency. In this study, each variable’s influence will be assessed in
an empirical investigation.

Interpersonal Relationship

According to (Amy Hawke & Troy Heffernan) interpersonal relationship increase

commitment from both Customers & suppliers sides which finally increases trust between
each other rendering business growth.

Communication refers to the communication between a Company and its clients.

Communication is a continual series of dialogue or “conversations” with clients, with the
goal being to get them to view the service firm as a partner (Swartz &Iacobucci, 2000:416).

Efficiency refers to the degree to which a task or activity is performed correctly on time

A firm needs to direct its employees as efficiently as possible in order to satisfy the needs of
its target market and to reach its Objectives. For example, a Company needs to ensure that
its employees conduct their Tasks and responsibilities in an efficient manner.

Service Quality

Gronroos (2000, p.46) defined service as, “A service is a process consisting of a series of
moreor less intangible activities that normally, but not necessarily always, take place in
interactions between the customer and service employees and/or physical resources or goods
and/or systems of the service provider, which are provided as solutions to customer
problems”.

28
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem. Research

methodology comprises of two words: Research & Methodology.

Research is defined as human activity based on intellectual application in the investigation

of matter. The primary purpose for applied research is discovering, interpreting & the
development of methods & systems for the advancement of human knowledge on a wide
variety of scientific matters of our world & the universe. Research may be defined as the
careful investigation or inquiry especially through search of new facts in any branch of
knowledge.

In short, it comprises defining a refined problems formulating hypothesis or suggested

solution: collecting, organising & evaluating data, making deductions and research
conclusion & lastly carefully testing the conclusion to determine whether they fit the
hypothesis.

Methodology can be defined as; 1. The analysis of the principles of methods. Rules &
postulates employed by a disciplined

2. The systematic study of methods that can be or have been applied within a discipline

3. A particular procedure or set of procedures.

RESEARCH DESIGN:

The purpose of the methodology is to design the research procedure. This includes the
overall design, the sampling procedure, the data collection method and analysis procedure.
Marketing research is the systematic gathering recoding and analyzing of data about
problem retaining to the marketing of goods and services. The essential purpose of
marketing research is to provide information, which will facilitate the identification of an
opportunity of problem situation and to assist manager in arriving at the best possible
decisions when such situations are encountered. Basically there are two types of researches,
which according to their applicability, strength, weaknesses, and requirements used before

29
selecting proper type of research, their suitability must be seen with respect to a specific
problem two general types of researches are exploratory and conclusive.

Quantitative research:

Quantitative research; it is designed to help executives of action that is to make decision.

When a marketing executive makes a decision are course of action is being selected from
among a number of available. The alternatives may be as few as two or virtually infinite.
They may be well defined or only vaguely glimpsed. Quantitative research provides
information, which helps the executives make a rational decision. In some instances,
particularly if any experiment is run, the research may come close to specifying the precise
alternatives to choose, in their cases especially with descriptive studies the research will
only particularly clarify the situation and much will be left to the executive’s judgment.

The type of research here is “Descriptive Research Design”. This kind of design is used for
more precise investigation or of developing the working hypothesis from an operational
point of view. It has inbuilt flexibility, which is needed because the research problem,
broadly defined initially, is transformed into one with more precise meaning in exploratory
studies, which in fact may necessitate changes in research procedure for gathering relevant
data. The characteristic features of research are as follows: –

 Flexible Design
 Non-Probability Sampling Design
 No pre-planned design for analysis
 Unstructured instruments for collection of data
 No fixed decisions about the operational procedures

Sample Size

Sample size refers to the numbers of respondents researcher have selected for the survey.
100 sample units from market and individual customers.

30
Sampling Technique

The sample design provides information on the target information and final sample sizes. I
used convenience sampling surveyed in research.

Data collection tool

I have used Questionnaire, as the research instrument to conduct the market survey. The
questionnaire consisted closed ended questions designed in such a way that it should gather
maximum information possible.

The questionnaire was a combination of 15 questions. If choices are given it is easier for the
respondent to respond from the choices rather they think and reply also it takes lesser time.
Because the keep on responding and one has tick mark the right choice accordingly. Data
was collected through two sources: Primary Source: Primary data was collected directly
from the customers through a questionnaire. Secondary Source: The secondary source was
the company website and my colleagues.

Method of sampling

Convenient sampling is used to do sampling as all the customers in the sites are Surveyed.

Data Analysis

Data analysis was done mainly from the data collected through the customers. The data
Collected from secondary sources is also used to analyse on one particular parameter.
Qualitative analysis was done on the data collected from the primary as well as secondary
Sources.

TOOLS OF DATA ANALYSIS AND PRESENTATION:- To analyze and presenting the

data, following tools were used: Tables: used as a tool to present the data in tabular form.
Percentages and Pie Chart: These tools were also used for analysis of data.

TOOLS AND TECHNIQUES OF DATA COLLECTION:- · Questionnaire · Personal

interview ·

31
SAMPLE SIZE:- Sample size refers to the total no. Of respondents targeted for collecting
the data for research. The sampling size of my study is 100 respondents.

SURVEY METHOD:- The related data or information was obtained by personal

administration through questionnaire i.e. personalsurvey. · Questionnaire · Personal
interview

SAMPLE UNIT:- Single most unit of the population, it may be single person or group of
persons, from whom questionnaire will be filled till target is fulfilled. The sampling unit in
this report are individual BHEL INDUSTRY customers.

SAMPLING METHOD:- Non probability

32
LIMITATIONS OF CUSTOMER RELATIONSHIP MANAGEMENT

1. Time constraint is unavoidable limitation of my study.

2. Financial problem is also there in completing this project in a proper way.

3. As no work has been done earlier in this regard so scarcity of secondary data is
also there.

4. Inadequate disclosure of information is also the problem.

33
 Table -1

GENDER Percentage

Male 55%
female 45%
l

PERCENTAGE

MALE
FEMALE

Fig: Pie Diagram for presenting male and female sample size

Age :

Age Number Percentage

15-25 6 15%
26-35 8 20%
35-45 12 30%
45 and above 14 35%

Interpretation

This table shows that 15% of Respondent are from 15 to 25 age group.20%respondents are
from 26-35 age group,30% are from 36to45 age group and 35% are from45 above agegroup.

34
 Table-2
Interpersonal Relationship

Name of the Factors Number Percentage

Strongly affected 8 20%
Affected 20 50%
Occasionally affected 10 25%
Disagree 1 2.5%
Strongly disagree 1 2.5%
Total 40 100%

Percentage
70%
60%
50%
40%
30%
20%
10%
0% Percentage
Strongly Affected Ocassionally Disagree Strongly
affected affected disagree

Fig: Interpersonal Relationship

Interpretation:

In the interpersonal relationship among staffs / customers are affected which percent is
50%. But25 percent customers’ belief the relationship affected only occasionally. On the
other hand 20% percent customers strongly agree with the opinion. Around 5% are Disagree
with interpersonal relationship with Company .That means Company have to improve their
interpersonal Relation with their customer to provide them a better service.

35
 Table-3
Communication

Name of the Factors Number Percentage

Strongly affected 4 10%
Affected 24 60%
Occasionally affected 7 17.5%
Disagree 4 10%
Strongly disagree 1 2.5%
Total 40 100%
100%
90%
80%
70%
60%
#REF!
50%
Series 2
40%
Series 1
30%
20%
10%
0%
Strongly Agree Agree Neutral Disgree Strongly
disagree
.

Interpretation:

Here most of the respondent is agreed (60%) with the level of communication by the Co. staffs.
Number of not satisfied people Communication is not badly affecting Service Quality. A
large number of customers are 0 10 20 30 40 50 Strongly affected Affected Occasionally
affected Disagree Strongly Disagree Percentage Percentage Customer Relationship
Management-A case study on MBL 30 satisfied by the communication that is made by the
Bank. But Industry in Moderate Label. So if they try to improve it their service quality will
be more efficient. So by this we can easily understand that communication have a relation
with the service quality of Company.

36
 Table -4
Efficiency

Name of the Factors Number Percentage

Strongly efficient 2 5%
Efficient 16 40%
Moderate/Neutral 15 37.5%
Not Efficient 6 15%
Strongly not efficient 1 2.5%
Total 40 100%
25

20

15

10
Column2
5 Column3

Interpretation:

The table shows Moderate label of customer about efficiency. 17.5 percent customer is not
satisfied at all with efficiency of the Company . This shows that they lose their customer
only for service efficiency. On the other hand around 45 percent are agreed with the
efficiency. Efficiency level with not efficient and strongly efficient is15% percent and 2.5%
respectively. This is not very high. Although communication is not badly affecting Service
Quality, the efficiency of the Industry is need to gear up to the mark before Company service
quality will decrease. So, we can understand efficiency have relationship with service
quality of he Company.

37
 FINDINGS

 While conducting the survey, I found that relationship among staff and customer 5
Point scale , that ranges from 1 (strogly disagree) to 5 (strongly agree).

 Customer’s comments and complaints are welcomed and resolved quickly and
positively. Comments and complaints are taken through face to face interviews.

 The company conducts customer satisfaction surveys through research agencies.

 Sales persons of the company maintain frequent and informative communication with
the customers.

 Business process is regularly reviewed to eliminate non value-adding activities.

 The average sale per customer has increased by 15% and customer’s 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 management, interpersonal skill of the sales personals and working environment of
the company.

38
 CONCLUSION

From this study it can be concluded that the customer relationship management in
Company is satisfactory. The company is using various CRM practices like customization of
the product, maintaining interaction with the customers regularly and providing good quality
product etc. Customer relationship management has a certain impact on the profitability of
the company. Average sale per customer has increased 15% over the last two years.
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 not used as much as it should be. The company is using
traditional tools of CRM like quantitative research, personal interviews. The company
should modern tools like data mining, contact center, e-CRM and web based survey tools.

39
 SUGGESTIONS

 There should be more and more emphasis given by the company for satisfying the
customerup 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.
 The canteen standards should be increased in-terms of quality equate no. of glasses,
furniture and sitting arrangements. of snacks, lunch and
 The working conditions are not free from dust & heat The company should install
Dust-boxes and some additional measures should also be taken to cool the
environment.
 The company should also consider that after death of any person, his dependent
must also be provided with the job.
 The transport facility to employees who are not living in the colony should be
provided.
 A special cell should also be framed in the personnel department to establish and
fill the communication gap between mgt. and employees shall try to reduce
grievances as-well-as various problems.
 Companies should provide benefits to children of employees to higher education.
 The employees should use the facilities properly and in the productive ways.
 Companies should motivate their employees to get fringe benefits.
 Companies should try to satisfy their employees from fringe benefits.
 Because the fringe benefits are helpful to increase productivity and also increase
the satisfaction level of employee so companies should provide more and more
fringe benefits to their employees.

40
 Questionnaire
1. Who are your customers?

a) Dealerb) Industry

2. Are your customer’s needs clearly defined?

a) Strongly b) Not Strongly

3. Do you conduct customer satisfaction surveys?

a) Strongly b) Not Strongly

4. Do you communicate results of your customer satisfaction surveys regularlythroughout

the company?

a) Strongly b) Not Strongly

5. Do you actively seek out customer comments and complaints?

a) Strongly b) Not Strongly

6. How do you get customer comments and complaints?

a) Face to face .

b) Toll free numbers, formal surveys.c) Others means

7. How do you get information about the customers?a) Face to face interviewsb) Surveys

c) Any other means.

8. Do you analyze channel effectiveness? In which channel is most effective inserving the
customer?

a) Strongly b) Not Strongly

9. Do you provide credit facility to your customers?

a) Strongly b) Not Strongly

10. Do you give concessions to your regular customer?

a) Strongly b) Not Strongly

11. Do you take feedback from your customers?

a) Strongly b) Not Strongly

41
12. Do you customize your product or services according to the customer?

a) Strongly b) Not Strongly

13. Do you have a concept of “internal service”?

a) Strongly b) Not Strongly

14. Do you communicate with your customers frequently?

a) Strongly b) Not Strongly

15. Do you regularly review the business process to eliminate non value- addingactivities
and improve customer satisfaction?

a) Strongly b) Not Strongly

16. Is the working environment is conducive to the well-being and morale of allemployees?

a) Strongly b) Not Strongly

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

a) Plays a big roleb) Not much role to playc) No role to play.

18. Do you have centralized database for customer information?

a) Strongly b) Not Strongly

19. Does the staff have access to the customer database?a) Yesb) No

20. Is there commitment from top management to support the customer-focused service
concept?

a) Strongly b) Not Strongly

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

a) Strongly b) Not Strongly

22. Is there any improvement in customer response rate to the marketing activities?

a) Strongly b) Not Strongly

23. Is there any improvement in customer retention and loyalty?

a) Strongly b) Not Strongly

42
 BIBLIOGRAPHY

1. Jerry W. Thomas, Market segmentation

Available from: http://www.decisionanalyst.com/Downloads/MarketSegm.pdf

[Access 6th July 2013]

2. Gunter, Barrie and Adrian Furnham, 1992, Consumer profiles: An introduction

to psychographics, London, Routledge

3. Francis Buttle, 2008, Customer Relationship Management: Concept and

Technologies , Second Edition, UK, taylor & francis

4. Armstrong, Gary & Kotler, Philip, 2005, Marketing: An Introduction, Seventh

Edition, Upper Saddle River, N.J. Prentice Hall

5. Pickton, David & Broderick, Amanda, 2005, Integrated marketing

communications, Second Edition

6. Kotler, Philip & Keller, Kevin Lane, 2009, Marketing Management, Thirteenth

Edition, Pearson Education International

7. Airtel, Vodafone Idea Lose Cell Users

Available from: http://www.businessworld.in/en/storypage/-/bw/airtel-vodafoneidea-lose-

cell-users/570220.37489/page/0

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