Case study on Shopper’s Stop

Creating Customer Value, Satisfaction and Loyalty

Report by

Girish

S.Sivasankaran

Srinath Manivannan

M.Sivanandam

S.Karthikeyan

Arindam Chatterjee

Santosh Kumar Kesarwani

Summary

The CRM initiative of Shoppers Stop entirely revolves around the concept that cost of
acquiring new customer is higher than that of retaining existing one.

Shopper’s Stop very brilliantly imbibed this philosophy into its corporate strategy and the total
success of this initiative can be attributed to religious implementation at every step and a whole
hearted effort to deliver “feel great” experience at every point of customer interface.Shopper’s
Stop (SS) has converted the concept of retail into an experience, an indulgence.

Business Analytics

 SS Initiated a Project Dhrishti (Data Warehouse) to maintain a standardized timely

and accurate customer database.
 With the help for SAS BI server and Enterprise miner they analyzed the variety of
consumption by different customers using which they were able to bring innovative
customer loyalty programs.
 Analysis helped them understand share of wallet ,study target market demographics
to assist their buying and merchandising decisions
 It also improved their performance in areas of inventory and vendor management,
loss prevention and financial analysis

Technology

 SS is one of those first few retail chains which introduced scanners and bar codes
and also encouraged the use of fully computerized operations.
 Also has ERP which helps in quick decision making process- open new stores faster,
get necessary information online.

First Citizen Program

 First Citizen is one of the very significant loyalty programs of Shoppers’ Stop. This
was designed with an objective of making the customers feel special. Special priority
was given to the members like separate billing desk, customer service desk etc.,
 Also the members became a part of first citizen club by paying an application fee of
Rs.150. This was also apparently a revenue generating method adopted by Shoper’s
stop.
 First Citizen Program has 1.5 million active members across India. 73% of total
revenue was obtained by the first citizen holders.
Co- branding and Loyalty initiatives

 Shopper’s stop made a tie-up with Citibank and introduced First citizen Citibank card.
It was the first retail shop to rope in any financial services for co-branding initiatives
 It also brought in Citibank stall, making the availability of loans from Citibank easy for
its customers, which proves SS’s aim on creating customer delight than just
satisfaction.
 50% of Shopper’s stop sales are drawn from well managed customer retention
programs
 SKIDS was another innovative offer introduced to cover the kids of the first citizen
card holders.
 Shopper’s stop also enrolled in ICGDS in par with the existing 29 celebrated retail
shops worldwide, this is also a milestone in creating an accreditation among the
customers and may also help in expanding the customer base.

Conclusion

With several initiatives Shopper’s stop has emerged a successful retail shop among the
tough retail completion. Form this case it is for sure that shopper’s stop has gained the “First mover
advantage”. However analysis on competitor’s strategies is essentials as it will through lights on the
areas where shopper’s stop can improve, so that it can capture and sustain No.1 position in market,
profitably.