A Study on Reliance Consumer Ship Relationship Management

Introduction
Relationship marketing is a facet of customer relationship
management (CRM) that focuses on customer loyalty and long-term
customer engagement rather than short-term goal like customer
acquisition and individual sales. Rather than trying to encourage a
one-time sale, relationship marketing tries to foster customer loyalty
by providing quality products and services.
The goal of relationship marketing (or customer relationship
marketing) is to create strong customer connections to a brand that
can lead to ongoing business, free word-of-mouth promotion and
information from customers that can generate leads.
CRM IN REATAILING:
Customer relationship management (CRM) is a business philosophy
and set of strategies, programs, and systems that focuses on
identifying and building loyalty with a retailer’s most value
customers.
According to Philip Kotler, “CRM (Customer Relationship
Management) is a comprehensive strategy and process of acquiring ,
retaining and partnering with selective consumer to create superior
value for the company and the customer.”
According to Parvatiyar and Seth (2001), “CRM is a comprehensive
strategy and process of acquiring, retaining and Partnering with
selective customers to create superior value for the company and
the Customer.”
Customer Relationship Management is a tool for servicing the
consumer. It is strategy that aims at creating customers for life and
enhances the sales and market share of the organization. In service
firms, the concept of CRM emphasizes on building good rapport with
its customers both internal as well as external. CRM is a strategic
approach that is concerned with creating improved shareholder
value through the development of appropriate relationships with key
customers and customer segments.
The retailer’s goal of CRM is to develop a base of loyal customers and
increase its share of wallet (the percentage of the customers
purchases made from the retailer) by providing more value to their
best customer by using targeted, more personalized promotions and
services. Retailers are more profitable when they focus on retaining
and increasing sales to their best customers rather than attempting
to generate sales from new customers.
Significance of CRM in Retailing:
CRM has special relevance in retail and if used effectively, it can add
value to the offering made by the retailer. It is a business philosophy
and set of strategies, programs, and systems that focuses on
identifying and building loyalty with a retailer’s most valued
customers.
The ultimate goal of CRM is to develop a base of loyal customers
who patronize the retailer frequency.
The significance of CRM in retail is seen as follows:
1) Access to Most Relevant Information: How many customers
visit the online store and leave without placing an order or
paying for items they added in their cart?
Smart CRM systems gives deep insights into such data so that retailer
can take appropriated action before it is too late.
2) Segmentation: CRM helps the retailer gather information
about each and every customer, their preferences and
demographic data. This information can be used to segment
the market and customers. Thus the retailer can adjust his
strategies as per the segmentation to suit the customers in a
better manner.
3) Loyalty: The retailer’s goal of CRM is to develop a base of loyal
customers and increase its share of wallet – the percentage of
the customers purchases made from his store. The retailer can
further increase this effect by using the CRM software to
implement customer loyalty programs.
4) Personalization: Traditionally, retailers have focused their
attention on encouraging more customers to visit their stores,
look through their catalogues, and visit their web sites. To
accomplish this objective, they have use mass-media
advertising and sales promotions to attract visit from
customers. This approach treats all existing and potential
customers the same. They all receive the same messages and
the same promotions. Now retailers are concentrating on
increasing their sales by providing more value to their best
customers by using targeted, more personalized promotions
and services.
5) Retention: The overall effect of CRM is to increase the
retention of customers by serving them in a more focused and
convenient way. Since the software applications in the retail
outlet already track purchases, retailers can issue reward points
and bonuses to keep valuable customers. Such programs let
your further reduce costs because sales to long them
customers are less expensive than sales to new customers. It is
believed that retailers are more profitable when they focus on
retaining and increasing sales to their best customers rather
than attempting to generation sales from new customers.
6) Cost Effective: CRM program allows retailers to manage the
customers in the most cost effective way. They can send out
bulk sms and email easily updating them about the upcoming
sales, offers and also allows them to take care of them
individually by focusing on their individual needs. It also saves
more income as retailers will have lesser staff and lesser
resources to spend on.
 7) New Buyers: CRM does not only manage the old customers or
existing customers but also has an intelligence that helps to
identify potential buyers and convert them into leads which can
turn into customers. CRM can help get their attention by
identifying them for the sales department who can then go
ahead and deliver their interests to them.
8) Promotions: Promotions helps to target the right audience as it
tracks each customer. Therefore the retailer can manage them
putting in groups or individually. This will help to provide them
better service. And when a customer visits the retailers
website, he can accordingly look into what they are looking for
and including the promotion of that particular product in their
newsletter.
9) Purchase Tracking: CRM allows retailer to track each customers
purchase separately so that he knows their interests and if their
product had any issue or any damage. This way he can provide
them better service by having their interests included in their
sms and email or newsletters. In case of damage or issue he will
be able to provide them with them same item in low price in
their next purchase or even give free service, etc to provide
them to gain more customer satisfaction.
Defination