CUSTOMER

RELATIONSHIP
MANAGEMENT
AT “PIZZA HUT”
SUBMITTED TO:-
T. THIRUMAL REDDY
(ASST.PROF OF MARKETING)

SUBMITTED BY:-

B.RAJU
M6-17
INTRODUCTION OF CRM:
The expression customer relationship management (CRM) has only been in use since the early
1990s. Since then there have been many attempts to define the domain of CRM. As a relatively
immature business or organizational practice, a consensus has not yet emerged about what counts
as CRM. Even the meaning of the three-letter acronym CRM is contested. For example, although
most people would understand that CRM means customer relationship management, others have
used the acronym to mean customer relationship marketing. 1 Information technology (IT)
companies have tended to use the term CRM to describe the software applications that automate
the marketing, selling and service functions of businesses. This equates CRM with technology.
Although the market for CRM software is now populated with many players, it started in 1993
when Tom Siebel founded Siebel
Systems Inc. Use of the term CRM can be traced back to that period. Forrester, the technology
research organization, estimates that worldwide spending on CRM technologies will reach
US$11 billion per annum by 2010. 2 Others with a managerial rather than technological
emphasis claim that CRM is a disciplined approach to developing and maintaining profitable
customer relationships, and that technology may or may not have a role.

DEFINATION:

 CRM is an information industry term for methodologies, software and usually Internet
capabilities that help an enterprise manage customer relationships in an organized way.3
CRM is the process of managing all aspects of interaction a company has with its
customers, including prospecting, sales and service. CRM applications attempt to provide
insight into and improve the Company customer relationship by combining all these
views of customer interaction into one picture.

 CRM is an integrated approach to identifying, acquiring and retaining customers. By

enabling organizations to manage and coordinate customer interactions across multiple
channels, departments, lines of business and geographies, CRM helps organizations
maximize the value of every customer interaction and drive superior corporate
performance.

 CRM is an integrated information system that is used to plan, schedule and control the
pre-sales and post-sales activities in an organization. CRM embraces all aspects of
dealing with prospects and customers, including the call center, sales-force, marketing,
technical support and field service. The primary goal of CRM is to improve long-term
growth and profitability through a better understanding of customer behavior. CRM aims
to provide more effective feedback and improved integration to better gauge the return on
investment (ROI) in these areas.

 CRM is a business strategy that maximizes profitability, revenue and customer

satisfaction by organizing around customer segments, fostering behavior that satisfies
customers and implementing customer centric processes.
There are many different facets of CRM for every business:
 Identifying qualified leads and gaining new customers
 Closing sales more effectively and efficiently
 Allowing customers to perform business transactions quickly and easily
 Providing service and support following a sale

Customer Relationship Management (CRM) refers to the methodologies and tools that help
businesses manage customer relationships in an organized way.
For small businesses, customer relationship management includes:
- CRM processes that help identify and target their best customers, generate quality sales leads,
and plan and implement marketing campaigns with clear goals and objectives;
- CRM processes that help form individualized relationships with customers (to improve
customer satisfaction) and provide the highest level of customer service to the most profitable
customers;
- CRM processes that provide employees with the information they need to know their
customers' wants and needs, and build relationships between the company and its customers.
Customer relationship management tools include software and browser-based applications that
collect and organize information about customers. For instance, as part of their CRM strategy, a
business might use a database of customer information to help construct a customer satisfaction
survey, or decide which new product their customers might be interested in.
Also Known As: CRM; sometimes called customer service management.

Getting the hype out of Customer Relationship Management

Summary: Key to stability in today's dynamic marketplace is in forging long-term relationships

with customers. Technology is changing at such a fast pace today that by just offering a service

Or a product a business won’t be at an advantage for too long. A customer-facing business is one
in which the customer can demand and receive what he wants.

The Customer is not new, Relations are as old as a buyer and a seller and so is Management.
The concepts of CRM have existed since the concept of buying and selling came into being.
Then, what is creating waves in today's CRM industry? Is that small electronic 'e' changing the
trend?

CRM is considered to be a software tool and a technology solution in this Information

Technology industry. In fact CRM is a strategy towards achieving a holistic view of any partner
engagement. CRM, which is a combination of marketing and business processes, is the basic
understanding of customers and how organizations measure them. The mantra behind CRM is
Catering to customized needs "centrally".

As defined by the "gurus" of CRM - Customer Relationship Management is a business strategy

to select and manage the most valuable customer relationships. CRM requires customer-centric
Business philosophy and culture to support effective marketing, sales and service processes.
CRM software applications can enable effective customer relationship management, provided
that an
Enterprise has the right leadership, strategy and culture.

Why CRM?

Keeping in mind the pace at which technology is changing today, any company which is a step
ahead of others because of some web product or service will not be able to hold on to that
advantage for long. The key to stability in today's dynamic market place is forging long-term
relationships with the customers.

Customers can be divided into three zones:

1. Zone of defection where customers are extremely hostile and have the lowest level of
Satisfaction.
2. Zone of indifference where customers are not sure. They have a medium level of satisfaction
and loyalty towards the company.
3. The third level of customers is in the zone of affection described as "Apostles".
CRM focuses on bringing customers from level 1 to level 3 and retaining apostle customers.
Customer demands for customization are increasing with every passing day. This has made
companies shift their focus from "mass production" to "mass customization". The present
scenario of companies using "poorly implemented" multi channel strategies for living up to the
expectations of customers is bringing both customer satisfaction and customer loyalty down the
Ladder.

Take the example of a small enterprise. Here hard work reaps high quality service and over the
years develops a database of loyal customers. In this enterprise computers are optional. Then
why
Is the CRM industry attracting investments of millions and billions of dollars? The reason is
simple. The concept of "Seller's Customer" has just rotated 180 degrees to become ―seller’s
customer‖. This simply states that, now the customer is more powerful than the seller. Options
for customers have increased with the cycle of innovation-to-production-to-obsolescence gaining
Momentum. On the other hand companies are finding it difficult to differentiate themselves in
the marketplace. These factors are pushing companies into taking a closer look at their customer
Relationships.
Today any company can copy products or services offered by other companies. If the new
entrant adds features like less order turn around time and direct communication then established
players are bound to have sleepless nights. Organizations that implement CRM and turn their
business into e-businesses will find their competitors' customers ready to welcome them with a
"smile".
According to a study by IT consulting firm Aberdeen - "The winners in this new economy will
be those companies that can effectively leverage the Internet to redesign, automate and integrate
all business operations."
Organizing business to satisfy customer demands organizes / simplifies internal functioning of
the organization. Implementing CRM brings to the front the "pits" that the organization had dug
over the years, passing work from one pit to another. Workflows are reduced, cycle times
become shorter, information flow of non-productive things gets eliminated and the most
important thing -"Pits" get covered automatically with all the positive features. Compact sized
organizations get into a position of making more money. This in turn enables them to please
more customers.

TYPES OF CRM:

Type of CRM Dominant characteristic

Strategic CRM is a customer-centric strategy that aims at winning
Strategic
and keeping profitable customers.
Operational CRM focuses on the automation of customer-facing
Operational
processes such as selling, marketing and customer service.
Analytical CRM focuses on the intelligent mining of customer-related
Analytical
data for strategic or tactical purposes.
Collaborative CRM applies technology across organizational
Collaborative boundaries with a view to optimizing company, partner and customer
value.
COMPANY PROFILE:

The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, Frank
and Dan Carney, were approached by a family friend with the idea of opening a pizza parlor.
Although the concept was relatively new to many Americans at that time, the brothers quickly
saw the potential of this new enterprise.

After borrowing $600 from their mother, they purchased some second-hand equipment and
rented a small building on a busy intersection in their home- town. The result of their
entrepreneurial efforts was the first Pizza Hut restaurant, and the foundation for what would
become the largest and most successful pizza restaurant company in the world. Products of pizza
have been voted Number One in countless consumer surveys nationwide. And our
accomplishments as an innovative business leader have been cited by such respected publications
as Restaurant Business, Fortune and The Wall Street Journal.

Pizza Hut, Inc., a division of Tricon Global Restaurants, Inc., has more than 7,200 units in the
U.S. and 3,000 units in more than 86 other countries. Tricon is the parent company to two other
segment leaders, Taco Bell and KFC. When combined with Pizza Hut, these organizations make
up the world's largest restaurant group, with almost twice as many units as McDonald's.
Beginning with the original thin crust pizza first served in 1958, Pizza Hut has made
continuing efforts to refine their products, and to develop new products suited to every consumer
taste.

Today, five major products, Pan Pizza, Thin 'N Crispy pizza, Hand-Tossed Style pizza, Stuffed
Crust Pizza and The Big New Yorker Pizza are loved by millions around the world and have
become the standard by which all others are judged.

They are working together to run great restaurants in order to be the best at making and serving
the best pizza in America. That means they are willing and able to go to any lengths to make
their customer's experience with Pizza Hut an enjoyable one. And it means they strive to present
the finest products the industry has to offer, and to provide those products wherever and
whenever people want them.
1958:
The first Pizza Hut restaurant opens in Wichita, Kansas, started by two college-aged brothers
who borrowed $600 from their mother.

1959:
Pizza Hut is incorporated in Kansas and the first franchise unit opens in Topeka, Kansas.

1965:
"Putt-Putt to Pizza Hut" musical jingle developed for Pizza Hut's first television commercial.

1967:
A Pizza Hut restaurant was built in five days by franchisees at the Oklahoma State Fair.

World's largest pizza (six feet in diameter) is baked and served at the grand opening of a Fort
Worth, Texas Pizza Hut restaurant.

1968:
International market entered with opening of Pizza Hut restaurant in Canada.
Pizza Hut serves a million people a week at its 310 locations.

1969:
Red roof adopted for restaurants.

First Pizza Hut restaurant opens in Mexico. Construction begins in Munich, Germany and
Australia.

1970:
Sandwiches added to basic menu of Thin 'N Crispy pizza, salad, beer and soft drinks.

First restaurant opened in Australia.

1971:
Pizza Hut becomes the number one pizza restaurant chain in the world in both sales and number
of restaurants.
1972:
Pizza Hut, Inc. listed on New York Stock Exchange under the symbol PIZ.
Pizza Hut restaurant number 1,000 opens in Wichita, KS. A unit opens in Costa Rica.

1973:
Pizza Hut restaurants open in Japan and England.

1975:
Thick'n Chewy pizza introduced.

Chatsworth, CA Pizza Hut restaurant is used in the filming of "The Bad News Bears."

1976:
The 100th international Pizza Hut restaurant is opened in Australia, while entire system reaches
2,000.

1977:
Pizza Hut, Inc. stockholders overwhelmingly approve merger with PepsiCo, Inc. for an
undisclosed sum.

Super Supreme is introduced nationwide.

Pizza Hut opens its 3,000th unit in Arlington, Texas.

1979:
The Sicilian Pan Pizza is introduced.

Units open in Kuwait and Abu Dhabi.

Pizza Hut raises $342,000 for Easter Seals from national promotion.

1980:
Pan Pizza is introduced throughout the system.

Restaurant numbers 4,000 opens.

1982:
The Pizza Hut ET glass promotion is picked as the top marketing promotion of 1982 by the
editorial staff of Chain Marketing and Management.

Pizza Hut serves one and a half million pounds of pasta annually.

1983:
Personal Pan Pizza, with a five-minute guarantee, is introduced throughout the system.

Pizza Hut celebrates 25th anniversary.

Pizza Hut employs 10,000 teenagers from 16 to 19 years old.

1984:
BOOK IT! National reading incentive program is launched with 200,000 elementary students
enrolled.

There are more pizza locations than hamburger restaurants in the United States. Pizzerias
account for 9.9% of all restaurants in the U.S.

1985:
Priazzo and Calizza are introduced.

1986:
The system celebrates the opening of its 5,000th restaurant, located in Dallas, Texas.

Delivery service, as a new concept, is initiated.

Fastest construction of a Pizza Hut restaurant takes place in Wichita, KS --- 39 days from start
to finish. The national average is 85 days.
1988:
Hand-Tossed Traditional Pizza is introduced throughout the system.

Pizza Hut celebrates its 30th anniversary with a total of more than 6,000 restaurants and delivery
units worldwide.

President Ronald Reagan awards Private Initiative Citation to Pizza Hut President Art Gunther
for the creation of BOOK IT! program.

1989:
The Pizza Hut Jobs Plus program expands nationwide to employ more than 10,000 individuals
with physical and developmental disabilities. The Jobs Plus program is recognized as the largest
corporate initiative of its kind in the food service industry.

Pizza Hut opens its 1,000th international unit in Welland, Ontario, Canada. Pizza Hut now
serves 54 countries.

Pizza Hut sells 9.1 million "Land Before Time" puppets. When released to the public, the movie
enjoyed the largest opening ever for an animated feature.

For the first time in history, Pizza Hut pizza is delivered to the White House. First Lady Barbara
Bush throws a party for 200 Washington, D.C. children during a "Reading IS undamental"
reception.

1990:
Pizza Hut system sales reach $4 billion.

Pizza Hut delivers more than 1,340,000 pizzas on Super Bowl Sunday, about 7,000 pies a
minute.

Kamran Atri, assistant manager in Leesberg, VA serves his way into the Guinness Book of
World Records by waiting tables at the Leesberg, VA Pizza Hut restaurant for 136 hours,
donating $1,200 in tips to the Loudoun County Shelter for Abused Women & Children.
More than 4,000 Jobs Plus employees work for Pizza Hut. Personal Pan Pizza becomes
available at 1,000 Stop 'N Go convenience stores.

1992:
Lunch buffet introduced in 1,800 units.

Pizza Hut sets up two mobile hot trailers in Florida City and Goulds, FL after Hurricane Andrew
wreaks havoc. Pizza Hut provides 120,000 free meals to relief volunteers and those who lost
their homes.

Pizza boxes redesigned to save 275,000 tree a year.

1993:
Pizza Hut introduces BIGFOOT Pizza -- two square feet of pizza cut into 21 slices.

The Harvest Program is launched nationwide to donate surplus food to food rescue agencies.

Pizza Hut makes its fastest and farthest delivery: 600 large pepperoni pizzas on a 24-hour flight
from Dover Air Force Base to U.S. service personnel in Mogadishu, Somalia.

Pizza Hut leads the entire restaurant industry in growth and sets new company records for sales
and profits.

Pizza Hut introduces Chunky Style Pizza in September.

Pizza Hut signs contract with 30 hotel companies throughout the country to provide delivery
service to their registered guests.

1994:
Pizza Hut becomes the single largest retailer of basketballs in the United States, selling 3.7
million balls during its NCAA Final Four promotion.

Pizza Hut opens 9,700 square foot Super Pizza Hut restaurant and entertainment center in
Mexico City.
Pizza Hut in Beirut reopens after being closed during the Gulf War.

Soccer legend Pele kicks a ball through the door of Pizza Hut restaurant number 10,000 in Sao
Paulo, Brazil on April 13.

1995:
Pizza Hut launches the "You'll Love The Stuff We're Made Of" campaign.

Buffalo Wings soar onto Pizza Hut menu. These spicy chicken wings are served with dipping
sauce.

Two Customer Satisfaction programs initiated: 1-800 Customer Satisfaction Hotline and a
Customer CallBack Program, which takes the pulse of 50,000 customers per week.

Pizza Hut launches Pizzeria Stuffed Crust Pizza, which immediately sets company sales records.

The Deliver Me Home program is created by Pizza Hut and the National Center for Missing and
Exploited Children and is tested at the Dallas/Fort Worth International Airport to inform the
community of an important identification tool in helping to locate, identify and return missing
children to their families.

Pizza Hut wins the 1995 "Choice of Chains" award for Best Pizza Chain sponsored annually by
Restaurants & Institutions magazine, making Pizza Hut the "Best Pizza Chain" ten of the last
eleven years.

1996:
Pizza Hut comes to India with a dine in restaurant Banglore that has special vegetarian pizzas.
In additional to traditional Italian toppings , it incorporates Indian favorites such as Chicken
tikkas, Lamb korma etc. In its list of innovative toppings. Along with pizzas, the menu features
appetizers like garlic bread and soups, fresh salads, oven bakes pastas and choice of ice-cream
sundaes.

Pizza Hut airs its first ever ad during the Super Bowl.
Pizza Hut delivers 30% of the 12 million pizzas delivered on Super Bowl Sunday. This is the
biggest pizza delivery day of the year.

On May 30, Pizza Hut introduces two varieties of chicken-topped pizza... Italian Chicken and
Chicken Supreme.

1997:
Pizza Hut opens a restaurant in the capital's building bustling M-block market in Greater
Kailash-I, Unlike the existing Pizza Hut at Shanti Niketan which is delivery counter for just
pizzas, this is dine-in where the entire menu (salads, appetizers, pastas, deserts and of course
pizzas) is available. Letting Delhiites get a taste of Pizza Hut And getting them to 'Get real!'

Pizza Hut launches a meatier pepperoni.

PepsiCo announces restaurant spin-off.

Pizza Hut launches "Totally New Pizzas" a quality initiative putting sliced fresh vegetables and
meaty meats on pizzas.

Pizza Hut launches "The Edge pizza"

1998:
Pizza Hut celebrates 40 years of making and serving great pizza.

Pizza Hut launches "The Sicilian Pizza" a flavorful crust with garlic, basil and oregano baked
right into the crust

Pizza Hut launches "The Best Pizzas Under One Roof" campaign.

Pizza Hut features Sony's Crash Bandicoot in the Stuffed Crust Pizza/Sony Promotion.
1999:
Pizza Hut launches The Big New Yorker Pizza. A 16-inch pizza with a sweeter, savory sauce,
100% real cheese cut into 8 big foldable slices. Pizza Hut brings New York-style pizza across
America.

Pizza Hut features Fran Drescher, Spike Lee and Donald Trump in The Big New Yorker Pizza
advertising campaign. The celebrity campaign launched in the pre-game advertising for Super
Bowl XXXIII.

ORGANIZATIONAL STRUCTURE:
 Preside
nt

C.O.O. V.P.I.T. Section

V.P. Finance
(Chief Operating Officer)

South West

Surat
Bangalore Brigade Road

Bangalore Airport Road Baroda

Ahmedabad

Bangalore Vijaynagar

Bangalore Prestige Center

Hyderabad

CRM: stands for Customer Relationship Management. The goal of implementing such
management system is as follows:
According to Peppers and Rogers, one-to-one marketing that can be adapted to CRM marketing
are as follows

 Identify your prospects and customers.

 Differentiate customers in terms of their needs and their value to your company.
Interact with individual customers to improve your knowledge about their individual
needs and to build stronger relationships.
 Customize products, services, and messages to each customer.
 Reducing the rate of customer defection.
 Increasing the longevity of the customer relationship.
 Enhancing the growth potential of each customer through ―share-of-wallet,‖ cross-
selling, and up-selling.
 Making low-profit customers more profitable or

1. Address value: Nothing illustrates this more than the restaurant’s launch of the ―Big
Eat, Tiny Price‖ campaign. With the special, customers can dine for only $5 on dishes
such as the new Pizza Stuffed Rolls and the P’Zone Pizza. ―We needed to have a low
price-point entry into the marketplace,‖ Kraut said. Pizza Hut’s online customers spend,
on average,
$2.50 more than the offline customer. Add-ons and side dishes are very popular with
people ordering online.

2. Improving and increasing menu variety: Pizza Hut’s marketing organization seeks to
stimulate the market every four to six weeks. A lot of times that means introducing new
menu items. It has been rolling out new locations of its Wing Street store and has seen
favorable results. Kraut said Pizza Hut expects its wing business to double in the next two
years.

In addition to wings, Pizza Hut has made a play for pasta, as well. ―We like to stand for
America’s favorite foods,‖ Kraut said. Pizza Hut found a strong correlation with those
that eat pizza and those who eat pasta. People who eat pizza four times a month, tend to
eat pasta on a regular basis, as well, he said.

3. Lead in access: ―Pizza Hut has been early and often to embrace emerging media,‖ Kraut
said. In June, the chain launched an iPhone App, ―The killer app for your appetite.‖ The
interactive application allows customers to order pizza there — or by text message. It’s
 been wildly popular. They are at about 600,000 downloads and currently hold the #2 spot
(behind Starbucks) in lifestyle applications on the AppStore. How does this translate into
more business? Pizza Hut sees 30 percent of e-commerce sales coming through the
iPhone. Kraut said as the company explores other mobile platforms, he anticipates that
mobile will continue on the path of being a strong channel for customers.

4. Get in the new media conversation Pizza Hut is increasingly embracing emerging
media through areas such as viral video. Although it’s difficult to measure, he said
customers can expect more videos like the one below — A spoof of a commercial actor
flipping out.

The company made news early this summer with its search for a Twintern – an intern
whose main responsibility would be to create a Twitter presence and alert the pizza chain
on what’s happening on the social Web. Pizza Hut was so pleased with the Twintern’s
performance that it offered her a full-time position. Now the search is back on — this
time trying to create a title for the Twintern’s full-time position.

Kraut said that Pizza Hut’s Web sales continue to grow. In a few weeks it will launch a
new Web site. Its e-commerce platform is unique in that it offers customers
recommendations for products they might like. It also, Kraut said, is the only pizza site to
remember customers upon repeat visits. What’s the impact of new media on the in-store
Pizza Hut experience? Kraut said he reckons it positively affects it, although he doesn’t
have the stats to back it up.

CRM Sub Processes

If you're talking about the Sub process action within the Workflow manager... No, they are not
stored procedures they allow you to have one workflow rule call another (manual) workflow
rule. This is actually quite useful, as it can greatly reduce coding on complicated rules, provide
for reusability, and even allow for recursive workflow rules (which allow you to, for example,
always send an email every time a Case priority is set to 'critical')

This is the start of a good method to use for assigning leads to different people. The advantage of
using sub-processes are, for example, if you're telesales people ever change territories or leave
their job (unlikely, I know, but bear with me), then you only have to modify ONE
line in one workflow rule. (And if you change the title of it as well, then every place that rule is
execs, that rule will change to reflect that new title as well. I have over 20 manual lead rules to
handle the territory assignment, and I've structured it so that

a) when a new lead is imported, it will automatically assign it to a user

b) A user can manually override that assignment either modifying the field directly, or,
more simply, by running the manual process using the Action menu
 c) A user can manually run a process to see what territory the system thinks it should
belong to have fun, Workflow Rules! (Once you get the hang of manual rules, and using
Wait for conditions on the Create Event)

CRM organization culture

Linking organizational culture to CRM

A number of academic studies have examineed the links between some elements of
Organizational culture and CRM outcomes. Starkey and Woodcock (2002) show that
Organizations that are less customer-focused are more likely to have inferior sales
performance. Campbell (2003) and Wilson, Daniel, and McDonald (2002) recognize the
Important contribution that customer-focused and cross-functional teams can make to the
creation of the deeper customer-related knowledge on which CRM success is based.
Campbell (2003) cites an appropriate reward structure as a key factor in the development of that
deeper insight. Kristofferson and Singh (2004) and Wilson et al. (2002) find a link between
CRM success and employee support within customer-facing departments. Curry and Koloa
(2004) identify customer focus, participation, and teamwork as important cultural issues
influencing CRM outcomes. Reynard and Chugh (2003) suggest that empowering employees to
excel at customer service and ensuring their job security also contribute to CRM success. This
CRM-specific research is supplemented by broader organizational research. Galbreath and
Rogers (1999) argue that an organizational culture that promotes an atmosphere of risk-taking
can create a climate of confidence in which employees feel 3 empowered to act in the best
interests of customers. Research into market orientation suggest
That the presence of an innovative and entrepreneurial culture is strongly associated with
excellent business performance (Deshpandé 1999). Collectively, these reports suggest that an
organizational culture that puts more importance on customer-focused behaviors, cross
functional teams, performance-based rewards, adaptive and responsive attitudes to change, and a
higher degree of risk taking and innovation, is likely to contribute to successful CRM system
implementations. These attributes are strongly associated with the Adhocracy culture.
Managers in adhocracies are favorably inclined towards collaborative communication (Brown
and Starkey 1994). Moorman (1995) found that organizations with an adhocracy culture tend to
stress participation, teamwork, and cohesiveness, which leads to greater cooperation among
organizational members. We therefore present our first hypothesis.H1: Organizational cultures
high in Adhocracy achieve the best CRM outcomes.

Measuring CRM outcomes

We measured CRM outcomes using a balanced scorecard, based on the original framework of
Kaplan and Norton (1992). Kim, Sum, and Hwang (2003) have also deployed a similar approach
in their CRM research. Following a literature review, we identified 16 metrics that are widely
deployed to measure the outcomes of CRM system implementations. On the basis of expert
judgment, each metric was assigned to one of the four balanced scorecard measurement
categories – finance, customer, process, and people. In our research, the financial metrics used to
assess CRM outcomes include sales revenues, share of customer spending (share of wallet),
average profit per customer, and customer acquisition cost. The customer-related metrics include
customer retention rate, customer satisfaction level, numbers of new customers acquired, and
response rate to marketing campaigns. The process
Metrics include the number of sales leads generated, the percentage of sales leads converted to
sales, organizational response time to customer inquiries, and the time to resolve customer
complaints. The people metrics assess the satisfaction, productivity, retention, and training of
employees. Respondents to our survey were asked to self-report whether there had been any
improvement in performance against these metrics following the CRM system implementation.

Research design
Survey research was undertaken. Named individuals in 1,449 public and private-sector
organizations were invited to participate, and sent a six-page questionnaire, cover letter, and
reply paid envelope. Dun & Bradstreet information services provided the contact list of
individuals holding management positions in sales, marketing, customer service, and information
technology in 11 industries. The instrument contained questions on organizational culture, CRM
outcomes, and the a number of additional hypothesized moderating variables - ease of using the
CRM system, compatibility of the CRM system with existing technologies, competitive
intensity, and market turbulence. After sending a second reminder by surface mail and a follow-
up phone call encouraging people to participate, we achieved 134 questionnaires (9.25%
response rate). After removing responses from companies having no CRM system in place, a
total of 101 questionnaires remained for analysis. We had anticipated a low response rate, as
only organizations with a CRM system
in place are eligible to participate, and according to Gartner Inc.

Loyalty programs of Pizza Hut

Pizza Hut uses loyalty programs depending on various types of customers and their needs. It
offers various discount schemes to customers that visit regularly by providing discount coupons.
While these discount coupons are for individual customers, there are also offers for corporate
lunches, birthday parties, kitty parties etc. In light of the reasons mentioned above these loyalty
programs naturally help increase the net sales of the company. The idea is to provide good
customer service in order to create customer loyalty.

The emergence of these loyalty programs is because of customer’s tendency to switch to other
pizza places such as Dominos, Papa Jones etc as well as other substitutes in search for quality
product, service and value.

Pizza Hut had to come up with loyalty programs that were compelling to customers and also
cost-effective. The company gathered insight to identify customer behavior patterns. It
interviewed Pizza Hut customers, reviewed existing research, built an analytic data mart based
upon thousands of customers and performed a customer potential analysis. But it is difficult to
employ single loyalty program for all the customers. Pizza Hut or any other company for that
matter needs to first find out the needs of customers in various segments and then work
accordingly.

Customers that visit Pizza Hut can be segmented into following categories:

 Best customers.
 Customers with potential to become best customers.
 Customers who switch often or those who simply have low frequency.

For best or regular customers the benefits are through various discount coupons which they
receive every time they walk into any of the Pizza Hut outlets across the country. The idea is to
make them feel special and to make sure that they are getting proper value for money. They are
also encouraged to organize parties, corporate lunches, kitty parties for women and birthday
parties for kids. Pizza Hut provides a floor space where these parties are organized and serve
food depending upon the requirements. Food is mostly with Pizza and other side dishes along
with desserts. To communicate the loyalty program, Pizza Hut uses direct mail, text messages,
e-mail, Web sites and in-store promotions. Pizza Hut also issues VIP cards to its best customers
which they can use to avail further discounts.

Pizza Hut has also introduced Gift Cards for various occasions. These Gift Cards are like any
other prepaid cards that can be used for goods or services offered by the Pizza Hut. These cards
can be charged with any denomination starting from Rs 250 to Rs 5000. Once charged,
customers can gift them to their friends and family members. These Gift Cards can also be
personalized with personal notes and wishes. Currently these Gift Cards are available only in
Bangalore and Mumbai but they will be launched in other cities as well. At the corporate level
these cards can be given to employees in recognition of their work. It can also be used by
marketing professional in different firms as a promotional give-away along with products.

Pizza Hut also let customers to earn rewards every time they dine at any Pizza Hut restaurant.
These Celebration Reward Cards can be asked from the server at the Pizza Hut restaurant and
can be later used to avail discounts accordingly.

Birthday parties for kids can be organized at Pizza Hut restaurants. Customers can choose from
available themes for organizing these parties. These parties are backed by a friendly host along
with various other attractions such as games and gifts. Customers can also design and send
invitations through them.

Corporate lunches can also be organized where customers can have a lunch and discuss about
issues with their clients and colleagues.

For customers that are identified as potential best customers and for customers with low
frequency the loyalty program basically revolve around distribution of discount coupons. They
are also made aware of various parties that can be organized for small occasional gatherings. So
that they can experience the offerings along with family and friends who may visit the restaurant
in future.

In order to further improve on the services being offered to customers and to tackle its existing
competitors, Pizza Hut has come up with Pizza Hut Delivery Outlets (PHD) throughout various
cities across India. These outlets mainly concentrate on delivery of pizzas to its customers on
time. This is one area in which Dominos has done really well and is known for its thirty minutes
delivery span. They also make sure that hot Pizzas are delivered to customers on time and if in
case this is assurance is not met they get the pizza for free.

In order to tap customers in lower income groups, they have come up with lower price pizzas so
that it can generate more revenue. In earlier days of its launch the Pizzas were mostly for middle
and high income group customers but with the launch of lower priced pizzas it has increased its
customer base.

They have also come up with combo meals to give customers a wholesome lunch or dinner
experience. These combo meals include pastas, other side dishes and a variety of desserts to
choose from.

Customer feedback programs were put into place in order to measure the customer experience
and also to uncover opportunities so, that the issues of the customers are addressed properly and
they are persuaded to visit often.

Pizza Hut's program is a success for both its best customers and other customers as well.

Privacy Policy

PIZZA HUT takes all measures necessary to protect the personal data of our website’s
visitors and users, both when browsing and when entering restricted access area for
authorized users/subscribers to the electronic ordering service, in accordance with Greek,
Community and international law.

PIZZA HUT does not receive any data from visitors and users of our web pages and areas of
our website to which there is free access, and guarantees that the software that it uses does not
automatically collect visitors’ data. The company only receives data provided by registered
members when they register.

PIZZA HUT does not guarantee that its website will operate uninterruptedly and without
faults. Nor does it bear any responsibility for difficulties or interruption of access for technical
reasons or for problems affecting or suspending the operation of the electronic ordering
service for a reasonable period of time.
PIZZA HUT respects the confidentiality of your personal data and aims to protect it. The
protection of personal data is governed by the principles of Law 2472/97 as amended by Law
3471/2006 on the protection of personal data. Our policy and how it affects users of our
website is shown below.

Personal data

PIZZA HUT does not collect personal data (PD) (e.g. first name, surname, address, e-mail
address, telephone number, profession, etc.) unless you provide it to us voluntarily. You will
be asked for PD if you want to use certain pages of our website, specifically: ON-LINE
orders.
Your personal data were given to PIZZA HUT with your consent and you were informed that
they might be subject to personal data processing in accordance with Law 2472/1997 as
amended by Law 3471/2006. However, you retain the right to access your personal data at
any time in order to request and receive, without delay, the purpose for which data are
processed and information about the recipients of data in a manner which is clear and easy to
understand. On the basis of Articles 11-13 of Law 2472/1997, you also have the right to raise
any objections or to refuse permission for the future use of your data. In this case, you are
required to send PIZZA HUT your written refusal, quoting your details in full (first name and
surname, address, photocopy of ID card) at: Food Plus, 80 Eth. Antistaseos Str, 153 44,
Gerakas (Marketing Department).

PIZZA HUT does not hold or process any other data (including sensitive data as cited in
Article 2, paragraph b of Law 2472/1997).

If you wish, PIZZA HUT may use PD provided on-line to contact you and send you PIZZA
HUT offers and other information. PIZZA HUT does not share this information with third
parties.

Security
We have taken measures to protect your data. No information about you leaves this company.
Only PIZZA HUT employees who need this information to carry out a particular task have
access to personal data. Our employees have to use secret passwords to access this
information. In addition, the servers where personal data are stored are guarded in a secure
facility. The Website is governed by security measures to protect against loss, misuse and
corruption of information under PIZZA HUT’s control.

PIZZA HUT may use some of the personal data in its database. This data might be subject to
personal data processing in accordance with Law 2472/1997 as amended by Law 3471/2006.
Data are processed for the purpose of promoting and publicising PIZZA HUT’s products and
services, and for statistical purposes. The company may disclose these data to associates for
advertising or statistical purposes and only for uses concerning PIZZA HUT products or
services.

Announcement of changes
If PIZZA HUT’s policy on the protection of personal data alters, changes will be recorded
on this page. Please check it regularly.

Acceptance of our policy

Use of the website constitutes acceptance of the terms of PIZZA HUT’s policy on the
protection of personal data. If you do not agree with this policy, please avoid using the
Website. Continued use of the Website after the announcement of changes to PIZZA HUT’s
policy on the protection of personal data will be taken as acceptance of the changes.

Customer Feedback program

The secret to understanding customers' needs, wants and concerns is making the most of
customer feedback. That means not only collecting feedback, but managing and acting upon that
feedback to improve your products and services.

Customer feedback comes from a growing number of channels, including in-person, phone,
comment cards, surveys, email, Web, social networking, mobile devices, and more. In addition, a
number of individuals and departments within your company are collecting customer feedback,
and in a variety of formats. For example, marketing may be conducting Web-based surveys,
product development may be conducting focus groups, the contact centre may be collecting
customer feedback from the support line.

The challenge this creates is you do not always know what feedback is being captured, who is
capturing it, where it is being stored and who is responsible for following up on it. This also
makes it difficult to use this information to improve customer relationships.

Thus, to ensure your own company's success in setting up and managing an effective Voice-of-
the-Customer feedback program, here are nine ways to help you succeed at managing customer
feedback.

1. Have well-defined goals and objectives: Before starting, know what business objectives are
at stake, why you are collecting the data and how your company is will use it to make decisions.
Also, consider the reports you will need and who within your organization needs access to that
information.

2. Get executive buy-in and internal support: Work with your executive team to communicate
and share customer feedback and VOC program goals and objectives with all employees. Keep
VOC programs top-of-mind with executives and employees by including metrics in executive
dashboards and sharing positive customer feedback during company meetings.

3. Develop a formal VOC program: Establish a formal VOC program that encourages two-way
communication between your company and customers. Once customer communications channels
are established, help your company implement formal processes to support feedback data
collection and management efforts, including implementing technologies to support a unified
VOC program.

4. Collect and manage customer feedback in a centralized system: Having multiple feedback
systems in separate databases is cumbersome and leads to duplication of effort. Companies now
have access to technology-driven, real-time Voice of the Customer (VOC) feedback programs.
These solutions allow businesses to continually collect customer and employee feedback through
multiple channels into a central database for analysis and immediate action.

5. Become a customer advocate throughout the feedback process: Be in a position to rapidly

respond to customer feedback. Keep customers informed about the ongoing status of their issues
and requests. Let customers know when your company uses one of their suggestions. Help your
organization resolve chronic customer complaints and concerns. Track, measure and monitor
customer feedback response times and continually work to improve them.

6. Communicate and share customer feedback with others: Quickly distribute real-time
customer feedback and share reports and survey data findings with others in your organization —
from the c-suite to managers and employees. Openly share actionable insights with employees
and conduct post-mortem meetings to discuss what did and did not work as well as what is
needed to improve your VOC program in the future.

7. Collect real-time, ongoing feedback: To build strong, lasting and engaging relationships
with customers, gather and respond to feedback in real-time. To accomplish this, make it easy for
customers to submit feedback at every interaction point and regularly monitor customer needs
and concerns.

8. Integrate customer feedback into the business: Be sure to work with other departments to
ensure that their customer feedback is incorporated into the company's strategic goals. For
example, sort through open-ended comments to see whether a customer has complimented an
individual employee. Then, make sure that the employee is recognized for providing positive
customer service.

9. Tie customer feedback programs to business outcomes: Measure and monitor customer-
related metrics such as customer retention, number of products purchased, likelihood to
recommend the company's products or services, likelihood to purchase again, etc. You can also
benchmark your program against other industry leaders. These measurements will demonstrate
how your feedback program is positively impacting the organization.

Gathering customer feedback isn't just about finding out and addressing customer concerns —
it's about gaining a solid understanding of customer needs, wants and issues. By consolidating all
 feedback data into a single centralized system and using that system across the organization, you
can gain valuable insights into what customers need, want and value most, as well as identify
important trends and patterns in the data that contributes to business success.

Customer Satisfaction

This depends on your goals, and what exactly you're trying to find out or improve. Here are a
few common areas that many business owners address with customer satisfaction surveys.

 Product/service performance. Your local spa might survey clients who haven't used their
massage services for months to identify what went wrong, and what staff can do to win clients
back. A customer feedback survey can also be a good tool to measure employee performance and
how each person's role is tied to client satisfaction.

 Product feedback. A camping goods company launching a new product line might create an
online survey to send to customers who've just made a purchase. Did that new and revolutionary
tent fabric weather the elements? The results could reveal valuable insights on how to improve
product features or address design flaws.

 New product development. A beverage company might send out a customer satisfaction survey
to create or launch new formulations and leverage new opportunities. Should they look into
launching health drinks? Does that mean sugar-free or low calorie? Survey data can reveal what
customers are likely to guzzle down (or not).

 Customer loyalty. Surveys can help you discover your most loyal customers and influencers.
Brand champions, power users, brand loyalists, brand heroes. No matter what you call them,
they're your answer to knowing exactly what you're doing right, what to keep doing, and what to
start doing. Showing customers that you're listening goes a long way.

 Keeping in touch. Customer satisfaction surveys are a great tool to drive regular communication
between you and your customers. Ask them how they're doing, what suggestions they might
have, and consider offering loyal customers swag or rewards for answering your surveys.

 Market research. Want to grow a new service area? Get to know potential target markets by
first sending out an online survey to find out more about demographics, such as age, gender,
income, hobbies, etc.

 Establish performance goals. Now that you've got all of this great actionable data, you need to
make sure feedback is implemented. Use customer feedback surveys to reach back out to
customers and measure your progress over regular periods of time. Leverage what you've learned
from this valuable data to rake in revenue and improve customer and employee satisfaction and
loyalty.

 Management reporting. Customer satisfaction survey data can also help managers identify key
drivers and metrics they should track across departments and roles.

Measuring customer satisfaction is a relatively new concept to many companies that have been
focused exclusively on income statements and balance sheets. Companies now recognize that the
new global economy has changed things forever. Increased competition, crowded markets with
little product differentiation and years of continual sales growth followed by two decades of
flattened sales curves have indicated to today's sharp competitors that their focus must change.

Competitors that are prospering in the new global economy recognize that meas-uring customer
satisfaction is key. Only by doing so can they hold on to the customers they have and understand
how to better attract new customers. The competitors who will be successful recognize that
customer satisfaction is a critical strategic weapon that can bring increased market share and
increased profits.

The problem companies face, however, is exactly how to do all of this and do it well. They need
to understand how to quantify, measure and track customer satisfaction. Without a clear and
accurate sense of what needs to be measured and how to collect, analyze and use the data as a
strategic weapon to drive the business, no firm can be effective in this new business climate.
Plans constructed using customer satisfaction research results can be designed to target
customers and processes that are most able to extend profits.

Too many companies rely on outdated and unreliable measures of customer satisfaction. They
watch sales volume. They listen to sales reps describing their customers' states of mind. They
track and count the frequency of complaints. And they watch aging accounts receivable reports,
recognizing that unhappy customers pay as late as possible--if at all. While these approaches are
not completely without value, they are no substitute for a valid, well-designed customer
satisfaction surveying program.

It's no surprise to find that market leaders differ from the rest of the industry in that they're
designed to hear the voice of the customer and achieve customer satisfaction. In these
companies:

 Marketing and sales employees are primarily responsible for designing (with customer
input) customer satisfaction surveying programs, questionnaires and focus groups.
 Top management and marketing divisions champion the programs.
 Corporate evaluations include not only their own customer satisfaction ratings but also
those of their competitors.
 Satisfaction results are made available to all employees.
 Customers are informed about changes brought about as the direct result of listening to
their needs.
 Internal and external quality measures are often tied together.
 Customer satisfaction is incorporated into the strategic focus of the company via the
mission statement.
 Stakeholder compensation is tied directly to the customer satisfaction surveying program.
 A concentrated effort is made to relate the customer satisfaction measurement results to
internal process metrics.