PROJECT

CUSTOMER RELATIONSHIP MANAGEMENT

SUBMITTED BY

NOUFEER.P.N

MBA T5 1

ROLL NO:
 INTRODUCTION

Customer relationship management (CRM) is an approach to manage a company's

interaction with current and potential customers. It uses data analysis about customers' history
with a company to improve business relationships with customers, specifically focusing on
customer retention and ultimately driving sales growth.

One important aspect of the CRM approach is the systems of CRM that compile data from a
range of different communication channels, including a company's website, telephone, email,
live chat, marketing materials and more recently, social media. Through the CRM approach
and the systems used to facilitate it, businesses learn more about their target audiences and
how to best cater to their needs.

The main components of CRM are building and managing customer relationships through
marketing, observing relationships as they mature through distinct phases, managing these
relationships at each stage and recognizing that the distribution of value of a relationship to
the firm is not homogeneous. When building and managing customer relationships through
marketing, firms might benefit from using a variety of tools to help organizational design,
incentive schemes, customer structures, and more to optimize the reach of its marketing
campaigns. Through the acknowledgement of the distinct phases of CRM, businesses will be
able to benefit from seeing the interaction of multiple relationships as connected transactions.
The final factor of CRM highlights the importance of CRM through accounting for the
profitability of customer relationships. Through studying the particular spending habits of
customers, a firm may be able to dedicate different resources and amounts of attention to
different types of consumers.

Relational Intelligence, or awareness of the variety of relationships a customer can have with
a firm, is an important component to the main phases of CRM. Companies may be good at
capturing demographic data, such as gender, age, income, and education, and connecting
them with purchasing information to categorize customers into profitability tiers, but this is
only a firm's mechanical view of customer relationships. This therefore is a sign that firms
believe that customers are still resources that can be used for up-sell or cross-sell
opportunities, rather than humans looking for interesting and personalized interactions.

CRM systems include:

 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.[23]
 CRM systems that track and measure marketing campaigns over multiple networks,
tracking customer analysis by customer clicks and sales.
 Some CRM software is available as a software as a service (SaaS), delivered via the
internet and accessed via a web browser instead of being installed on a local
computer. Businesses using the software do not purchase it, but typically pay a
recurring subscription fee to the software vendor.
 For small businesses a CRM system may consist of a contact manager system that
integrates emails, documents, jobs, faxes, and scheduling for individual accounts.
 CRM systems available for specific markets (legal, finance) frequently focus on event
management and relationship tracking as opposed to financial return on investment
(ROI).
 CRM systems for eCommerce, focused on marketing automation tasks, like: cart
rescue, re-engage users with email, personalization.
 Customer-centric relationship management (CCRM) is a nascent sub-discipline that
focuses on customer preferences instead of customer leverage. CCRM aims to add
value by engaging customers in individual, interactive relationships.
 Systems for non-profit and membership-based organizations help track constituents,
fundraising, sponsors' demographics, membership levels, membership directories,
volunteering and communication with individuals.
 INDUSTRY PROFILE
The Indian e-commerce industry has been on an upward growth trajectory and is expected to
surpass the US to become the second largest e-commerce market in the world by 2034. The
e-commerce market is expected to reach Rs 13,97,800 crore (US$ 200 billion) by 2027 from
Rs 2,69,076.5 crore (US$ 38.5 billion) in 2017. India's e-commerce market has the potential
to grow more than four folds to Rs 10,48,350 crore (US$ 150 billion) by 2022 supported by
rising incomes and surge in internet users. Online shoppers in India are expected to reach 120
million in 2018 and eventually 220 million by 2025. Average online retail spending in India
was US$ 224 per user in 2017. Online retailers now deliver to 15,000-20,000 pin codes out of
nearly 100,000 pin codes in the country.

E-Commerce and consumer internet companies in India received more than Rs 48,923 crore
(US$ 7 billion) in private equity and venture capital in 2018. Online retail sales in India are
expected to grow by 31 per cent to touch Rs 2,28,540.3 crore (US$ 32.70 billion) in 2018, led
by Flipkart, Amazon India and Paytm Mall. Online retail is expected to contribute 2.9 per
cent of retail market in 2018.

Much growth of the industry has been triggered by increasing internet and smartphone
penetration and by 2022, smartphone users are expected to reach 859 million and e-
commerce sector expected to grow 1,200 per cent by 2026. During April-June quarter 2019,
smartphone shipment in India grew 9.9 per cent year-on-year to 36.9 million shipments.

Internet penetration in India grew from just 4 per cent in 2007 to 34.42 per cent in 2017,
registering a CAGR of 24 per cent between 2007 and 2017. In FY20, internet penetration in
India was 50.52 per cent. The number of internet users in India is expected to increase from
665.31 million as of June 2019 to 829 million by 2021. Internet penetration in rural India is
expected to grow as high as 45 per cent by 2021 compared to the current rate of 26.57 per
cent. The e-commerce retail logistics market in India is estimated at Rs 9,435.15 crore (US$
1.35 billion) in 2018 and is expected to grow at a 36 per cent CAGR over the next five years.
It also received and investment of Rs 43,681.25 core (US$ 6.25 billion) from January–May
2019. Reliance to invest Rs 2,00,000 crore (US$ 2.86 billion) in its telecom business to
expand its broadband and e-commerce presence and to offer 5G services.

A young demographic profile, rising internet penetration and relative better economic
performance are the key drivers of this sector. The Government of India's policies and
regulatory frameworks such as 100 per cent foreign direct investment (FDI) in B2B e-
commerce and 100 per cent FDI under automatic route under the marketplace model of B2C
e-commerce are expected to further propel growth in the sectors. As per the new Foreign
Direct Investment (FDI) policy, online entities through foreign investments cannot offer the
products which are sold by retailers in which they hold equity stake.

As of August 2018, the government is working on the second draft of e-commerce policy,
incorporating inputs from various industry stakeholders. In February 2019, the Government
of India released the Draft National E-Commerce Policy which encourages FDI in the
marketplace model of e-commerce. Further, it states that the FDI policy for e-commerce
sector has been developed to ensure a level playing field for all participants. According to the
draft, a registered entity is needed for the e-commerce sites and apps to operate in India.
Government also proposed the National E-commerce Policy, set up the lawful agenda on
cross-border data flow, no data will be shared with foreign government without any prior
authorisation of Indian government.

Through its Digital India campaign, the Government of India is aiming to create a trillion-
dollar online economy by 2025.
 CRM in eCommerce Business
It’s no secret that strong customer relationships are essential to business success. To help
businesses, especially eCommerce businesses improve their relationships and stay organized,
a CRM or Customer Relationship Management solution is quite essential. eCommerce
businesses always have a diverse audience- sometimes they are interacting with a middle
man, other times they’re talking with the person in charge of purchasing, people are always at
different points in the sales funnel, etc. It can get very complex while keeping it all straight
and managing the identities, this is where a CRM solution for eCommerce companies can
come into play.

A CRM solution can assist you with managing the company’s interaction with not only the
current customers but also future or prospective customers. Its a technology-based platform
which becomes the backbone for all your customer related functions - may it be organizing,
automating and synchronizing sales, marketing, customer service, and technical support.

Common challenges eCommerce businesses face today include;

Tracking customer loyalty

Being an online shop with no physical presence makes it difficult to track customer visits and
customer purchases to identify the most frequent visitors. Commonly used methods to
generate repeat business include a loyalty system where you can reward the customers with
points they can use in future purchases.

Tracking communication

It gets very difficult to track every customer’s communication with you- such as complaints,
question, comments- so that you can use that data to determine the best way to communicate
with them. It becomes very essential for a customer-centric business where every customer
wants to feel heard and there are limited points of contact.

Create target messaging

One of the challenges eCommerce companies face is tracking and searching the purchase
behavior to discover the customer’s favorite product. This is done by sending targeted emails
recommending products which are highly relevant to the customer, such as a product that will
complement a recent purchase.

Measuring customer life cycle

Another major hurdle in this business is customer retention. There are numerous options
customer can get, which are just one click away. They tend to drift away without regular,
relevant engagement. Having records of how long they continue using your online business
helps in determining when you need to send follow-up communication to retain them or to
win them back if their loyalty has lapsed.
Identifying high-value customers

In this business you need to categorize customers according to their purchase frequency,
average spend and more, to identify your valuable customers.

Storing customer information

It is required and essential to store records of customers like customer’s payment and
shipping details for their convenience and streamlining the buying process for future
purchases.

Make strategic decisions

All of this information helps you to analyze and extract valuable insights into your customers.
Knowing which products are selling to which customers and building targeted campaigns
which will resonate with the customers and give a strong ROI.

A CRM solution for eCommerce companies helps in tracking customer behavior and
communications, storing customer information, identifying high-value customers and
creating targeted campaigns. It is the key to cultivate loyal and long-term customers and
overcome all the above challenges by integrating the key customer-centric activities.

ADVANTAGES

Applying the capabilities of CRM technology into your e-Commerce platform will increase
the visibility into the selling processes, linking of the interrelated records and documents, and
establishing more personalized shopping experience. So with CRM for e-Commerce you will
gain such advantages as:

1. Awareness of Your Web Customer Needs

Due to CRM software, you can have a deep insight into customer’s needs. You have
the enter, store and access to the user’s activities and personal details across the
company. Communication and buying histories with the up-to-date records will serve
marketing and support managers, as well as boost the efficiency of sales reps
performance. Moreover, social media access enables you with tracking the current
interests of your buyers.

2. Workflow Automation

Earlier sales managers were focused on the transactions and wasted a lot of time on
tracking buyer’s activities and sending follow-ups. With CRM, you may automate the
follow-up and email sending out. Apart from different content, you can schedule the
time boundaries.

For instance, customer has bought a laptop and your sales rep may plan a newsletter
to this client with a proposal of different accessories for his or her purchase. Another
example is setting up the alerts about customers who leave the site without any
actions. You may send them a discount coupon or special offer.
 3. Effective Business Data Management

There is no need to spend time on the search for the required contact or document.
CRM enables a comprehensive data arrangement and linking of data according to the
relations between the different types of records.

4. Detailed Reporting and Forecasting

Measuring the effectiveness of processes in the company has a vital influence on

further objectives and budget planning. CRM software enables you with a set of
customizable reporting options that show the successful and ineffective actions. These
records give the ground for ROI and revenue levels, as well as emphasize the areas
that require improvement.

5. Improve Customer Loyalty

The additional features of CRM will help you to provide your buyers with an accurate
and, what is utmost important, secure hosting. You will be able to detect and preempt
the fraudulent transactions, as well as easy checkout process. As a rule, customers
have a common urgent question - ‘Where is my order?’. Your clients will be pleased
with the intuitive order status, and comprehensive history look up. Moreover, you can
track and send special offers to your lost customers who left your shop on the
storefront.

IMPORTANCE

Implementing the capabilities of CRM technology in your e-commerce platform will increase
visibility in sales processes, correlated records and documents will be added, and more
personal shopping experience will be established. With the CRM for e-commerce you will
receive such benefits:

Awareness about your web customer needs

Due to CRM software, you may have a deeper understanding of customer needs. You have
access, collection and access to user activities and personal details in the company. The
history of communication and purchase with up-to-date records will serve marketing and
support managers, as well as increase the efficiency of sales rep performance. In addition, the
use of social media enables you to track the current interests of your buyers.

Workflow automation

The first sales managers used to focus on the transaction and used to spend a lot of time
tracking the activities of the buyer and sending follow-ups. With CRM, you can automate
follow-up and sending emails. In addition to the various materials, you can set the deadline.

For example, the customer has bought a laptop and your sales representative can plan a
newsletter for this customer, in which he will have various accessories for the purchase.
Another example is setting an alert about customers who leave the site without any action.
You can send discount coupons or special offers to them.
Effective Business Data Management

There is no need to spend time searching on essential contacts or documents. CRM enables a
comprehensive data system and data connection between different types of records.

Detailed reporting and forecast

Measuring the effectiveness of processes in the company has a significant impact on further
objectives and budget planning. The CRM software enables you with a set of customizable
reporting options that show successful and ineffective actions. These records give land for
ROI and revenue levels, as well as an emphasis on areas that require improvement.

Improve customer loyalty

Additional features of the CRM will help you provide safe hosting to your buyers, which are
extremely important and important. You will be able to detect and remove fraudulent
transactions, as well as an easy checkout process. As a rule, customers have a general urgent
question – ‘Where is my order?’ Your customers will be pleased with the smooth order
situation and will see a comprehensive history. In addition, you can send and send special
offers to your lost customers who leave your store at a storefront.

Online retail is a competitive area and buyers demand for quality service and personalization
spar business owners to seek innovations and effective solutions. With CRM integration, your
employees will give your customers an unmatched experience of excellent service and
relevant offers that encourage them to return frequently.
 CONCLUSION
Customer relationship management is crucial because:

 Creating a bond with the existing customers ensures that you won’t have to work on
getting them again like new traffic.
 Having a bond with customers increases the chance of them making numerous
purchases so a bulk of that first-time buyers is not limited to just that before perishing.
 When you make your customers feel welcome even after the purchase, they too start
feeling some loyalty towards your brand.
 Since the brand image is already created before all this even begins, customers will
have something to relate to or look up to when they make multiple purchases.
 When you maintain a strong bond letting the customers know they are valued, the
customers become your friend.
 With prolonged good customer relationship management, customers feel obliged or
happy to advocate your brand to others and that’s how your business rises to success
and permanence.

This is why you will hear every successful businessperson advice young entrepreneurs to
focus on the people and not just on the numbers. Without the people, the numbers stop adding
up. To some it might come across as a no-brainer but many entrepreneurs start their journey
without knowing these basics. That is why it was important to discuss this. Now that
everybody knows the importance of customer relationship management, let us get to the
importance of CRM systems.

Every business organization that became successful at a national or global level know the
importance of CRM and how to use a CRM system. They invest in world-class CRM
system tools and put them to use on a regular basis.

Reasons to use a CRM system

To Avail a Comprehensive Customer History

To Gear you up with the Required Products

To Help you get Service-Ready

To help you Optimize Conversion Probability

To Save Your Time

To help your Business Expand

To Boost Brand Image

To train Human Employees

To Reduce Cost