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Need of the study

In today’s intensely competitive, rapidly changing & highly complex business environment

characterized by diminishing customer loyalty, the need to be market focused & customer

centric is more critical than any other time in past. Firms use technology as a key tool to

enhance the information flow within their business units, helping their employees better

understand the ever changing and increasing need and wants of their customers.

It is certain that the internet will continue to change the ways customers and organizations

interact with one another in terms of speed and ease. This fact requires that the

integration of internet technology into CRM activities occur at all levels throughout the

organization. Thus, it would be wrong to say that keeping its customer satisfied is in the

best interests of the organizations.

The purpose of this study is to bring insight and deeper understanding into the objectives,

strategies and the expected benefits of CRM initiatives by the organization.

3.1 Necessity of CRM in retailing

Retailer use CRM concept to the following reasons that I mainly found from my

observation:-

 To know their customers‘ needs and wants in customized way.(Shopkeepers put in

mind what their loyal customer seek from them and what are the tastes and

preferences of a particular customer)

 To deliver the desired products quickly in the hands of their customer(call the

customer when a desired product reached in shop or sometimes send it to customers)

 I also found when any new products or design come in shop retailers inform it to

specific customer, sometimes they inform customer about if any products price falls

or any discount is available (for promotional activities)

 By applying CRM concept a retailer can know who most profitable customer and who

is less profitable and thus can maintain relation with those who provides best value.

 By continuously maintaining communication with customer retailer can know their

changing demands and can bring the innovative products

3.2 How retailer benefited by CRM

If a retailer becomes able to maintain strong relationship with customer then it generate a

numbers of benefit for them which includes:-

 Retailer can generate maximum sales by repetitive purchase of loyal customer.

 By uniquely delivering the desired products they can best meet the needs and

requirements of their customer.

 Greater sales ensure maximum profit level.

 Whenever loyal customer frequently visit the store that time retailer can infirm them

about other additional products and sell it (cross-selling).

 By applying CRM concept retailer can ensure customer satisfaction which then leads

to positive word of mouth communication and thus retailer reputation and new

customer base increase.

 By using CRM concept retailer can protect customer in competition( loyal customer

stay close to retailer even if they don‘t get appropriate products or service because of

relation

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

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

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

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

Ø To study on customer relationship management would enable the researcher to know

about the CRM practices adopted in the Paint industry

Eight ways to keep customers for life

1. Every part of the company’s marketing effort should be geared towards building lifetime
relationships.

2. People want to do business with friendly people. To have effective relations a friendly attitude
must permeate in the organization.

3. Information technology developments should be positively used to serve the customers.

4. The company should always be flexible to bend its rules and procedures in the client’s favor.

5. The company should communicate with its customers even when it is not trying to sell
something.

6. The company can communicate and develop stronger customer bonding by providing financial
and social benefits.

7. The company should try to know all its customers including their lifestyles, hobbies, likes and
dislikes etc

8. The company should make it a point to deliver more than what is promised.