You are on page 1of 40


We would like to express our special thanks of gratitude to our guide bharati mam who gave us this golden opportunity to do this wonderful project on the topic Managing Customer Relationship for the subject CRM which has helped us in doing a lot of Research and we came to know about so many new things, we are really thankful to them. Secondly we would also like to thank our parents and friends and group members who helped us a lot in finishing this project within the limited time. We all made this project not only for marks but to also increase our knowledge. THANKS AGAIN TO ALL WHO HELPED US. 1 2 3 4 5 6

Group members Thavasi kani Nadar Dhawal gala Mayank panchamia Namrata doshi Bhavini Makwana Vijeta Naik

Roll no 25 10 28 8 22 26

Sr. No 1. 1.2 1.3 1.4 Introduction


Page No.

History of managing customer relationship Key principles of relationship management Techniques and application to manage customer relationships

1.5 1.6 1.7

Experimental relationship framework Customers division into 3 zones Benefits of implementing customer relationship marketing

2. 2.1

An overview (shoppers stop) Customer relationship management at shoppers stop 2.2 Customers loyalty and customers referral programs 2.3 2.4 Referral programs of shopper stop Key benefits of referral programs Conclusion





With the plethora of goods and services available in almost every sector of industries, the educated, well bred customers have a variety to choose from, and every business wants the customers to choose its products. This results in incessant luring of customers, done in all possible manners. The activity of attracting customers was present even in the yesteryears of business but not to the extent and intensity it has gained today. Today managing customers has turned into a well formulated, well studied science and art, known as “Customer Relationship Management” and of late “Customer Relationship Marketing” or CRM. CRM can be defined as an “activities that an enterprise performs to identify, select, acquire, develop and retain increasingly loyal and profitable customers. CRM integrates sale, marketing and service functions through business process automation, technology solutions and information resources to maximize each customer contact. CRM facilitates relationships among enterprises, their customers, business suppliers and employees. As defined by the management ‘gurus’ of CRM – “Customer Relationship Marketing is a business strategy to select and manage the most valuable customer relationships. CRM

. sales and service process. provided that an enterprise has the right leadership strategy and culture.” Keeping in mind the pace at which technology is changing today.requires customer centric business philosophy and culture to support effective marketing. any company which is a step ahead of others because of some product or services will not be able to hold on to that advantage for long. Key to stability in today’s dynamic marketplace is forging long-term relationship with the customers. CRM applications can enable effective Customer Relationship Management.

1. Service economy age: production combined with intangibles to deliver solution to consumers Co-creation of values for the user through collaboration became an essential ingredient for success of both parties. Information systems about consumers were personal knowledge held by individuals.1 History of Managing Customer Relationship Pre industrial age: relationship between producer and consumer Traders who sold artesian products/ commodities in faraway countries did it through a trading partner whom they trusted and who in turn understood the local needs of the market. Relationship moved primarily on cost advantages offered by producer. Industrial age: Mass production/creation desegregation between producer and consumer It has the benefit of reducing per unit cost through volume production and quality control by production automation. . It meant efficiency enhancement for the buyer and opportunities’ for additional revenue streams to the supplier if their relationship moved beyond just selling transactions. there was a push from the manufacturer to push the products into the market. As production is enterprise differentiates its products from others in the market on the strength of the relationship with its customers. Since products become commoditized due to standardization of the manufacturing techniques and application of basic qualities tools.

stated or latent Economic goal: A consumer seeks saving by being in a relationshipwhile an organization seeks to maximize the ‘share of wallet’ in cultivating relationship. Esteem goal: a consumer likes/appreciates acknowledgement and prestige enhancers for patronizing a company’s products and services. Industrial age Functional orientation Customer as a recipient Transactional management Batch mentality Relationship economy Process orientation Customer as a driver Collaboration Real time mentality Relationship needs arise out of four goals that exist when an organization and consumer are engaged with each other on a win-win basis: Need fulfillment Goal: At the fundamental level it is supplying a solution customized to the needs of the consumer.where value creation is happening through collaboration of knowledge workers across different geographical case of any problem during the purchase of product or its uses. 1.Knowledge Economy Edge: Information combined with products and services to deliver personalized customized solutions Current increasing digitization of knowledge and powers of internet have led to classification of the present age by some as the knowledge economy.2 Key principles of Relationship Management . Security goal: to the consumer a relationship provides a cover of trustworthiness.

there is an underlying need to understand and appreciate the context in which a product/service is put to use in a customer’s day to day life. In order to achieve customer asset appreciation. .1. Manage customer as an asset: Understanding and managing value creation of each individual customer for a win-win perspective. Rate customers on the basis of their profit stream-current and future potential: In order to establish a meaningful and mutually beneficial relationship at different levels of engagement customers are classified on their profitability potential on a ‘life cycle’ basis. Example is one of the loyalty program offered by American Express Cards which charges an annual fee for its loyalty club membership and in turn rewards the members on the basis of their usage and age of relationship. Often the current spends are used as the basis for classification of customers while developing relationship programs but this approach has some demerits: 2. In this way consumers spend more on their cards foe encashing the benefits. forging a close and committed relationship requires a constant reaffirmation of both parties to each other that there is value addition to each while engaging with one another. In the present scenario when all and sundry product or service is trying to forge a unique relationship with the consumer.In order for a relationship to be meaningful to the customers it has to be ‘unique’ and ‘valuable’ to them.

Some situations arise when a product is designed and manufactured but contexts get developed when the consumers start using the product totally unrelated to what the manufacturer may have conceived. Today the individual preferences and needs are being catered. • Make modifications in design to increase usage convenience. 3.• Current spend does not necessarily imply 100% share of the wallet. . Implement innovative ways and means to get close to the customer to hear the ‘Voice of the Customer’: - True customer intimacy. Whether it is an attribute of a product design.the backbone of a successful and rewarding relationship requires a deep understanding of the context in which the product and services are used in the course of customers’ day to day lives. • Merely classifying on current spend is a snapshot that has no correlation with future spending potential. Understanding the contexts at the point of selling/servicing help: • Fit customer needs more precisely. service specifications or channel customization is the key to make the relationship more meaningful and personal. If revenue profit maximization is the objective then this approach fails to include the large section of the customers who may have multiple relationships for the same product/service. • Identify opportunity to cross-sell and up-sell. 4. Customize relationship to individual customer-using information based decision making capabilities: - Today information technology systems are enabling organizations to maintain 1:1 relationships with their consumers.

• Customer experience mapping. • Align mindset and connectivity.TO SUCCEED IN THE RELATIONSHIP ECONOMY COMPANIES MUST Create capabilities to service Connect the Business to the the new customer Customer • Driven by voice of the customer. • Listening and learning process. . • Balance elements of model business (strategy. process. • Invest in enough knowledge to get the job done. people. knowledge and technology). • Appropriation level of segmentation. • Develop efficient and effective fulfillment solutions (self service vs full service).

consumers expect an organization to facilitate the process of education trough user manuals.3 Techniques and Application to manage Relationships Different stages in a customer life cycle calls for different techniques in Relationship Management. Post-Acquisition Stage: A) Single Product/service User: • Education: For exploiting value from the product/services.product demos onsite support etc.quality and costs are: • Well understood by consumers.They need to focused on ensuring that the product features. query desks. • Have “product-service” return guarantee. Acquisition Stage: From the time a company decides to target a prospective customer to the time a customer makes the final purchase. websites.1. • Provide consumers avenues to raise any issues. .contact centres.

• Catering to individualized/personalized needs.All these indicate that for building acquisition/post acquisition relationship an organization needs to build capabilities to capture the following: . C) More favourable terms for additional business : A consumer expects to be offered the best terms for additional business in return for his loyalty.• Complaint/request and Query management support: Quick addressal through a contact centre. B) Multiple product/service relationship: • Recognition of “total share of wallet”instead of discrete spends made by consumers. • Relationship recognition: As recognition for his keeping a relationship with the company a consumer desires some reciprocation from the company.Request fulfillment and facilitation within reasonable time frame and complaint addressal. • Parenting of different discrete accounts. • IT enabled means to establish key fields that throw up linkages.

• Personalised services-One to one marketing. • Behavioral traits. • Identification of customer uniqueness. increasing loyalty.• Transaction history. Affinity Partnering.Co-partnering. • Socio economic characteristics. Acquisition Cost Versus Relationship Costs.service recovery and training programs. Relationship management entails expenditure on maintaining the various relationship programs. 1.While acquisition costing/profitability are well understood.This is aimed typically at high yielding customers. • • Loyalty programs-retaining customers. Whether it is a five star hotel or a product – it is . • Long term potential for additional services. Partnering is found that companies struggle to appropriate a correct costing structure to support relationship management aspects.This costs can be spread over the following.-Meeting and satisfying each customer’s needs in a unique and individual manner.4 Experimental Relationship Framework Customer experience is the buzz phrase that almost everyone is gearing these days. • Post purchase transaction handling.

Customer experiment management is the final frontier of marketing and branding.realized that beyond product/service it is the experiential component that builds long term loyalty of the customers. Mastering creation of an experience is the key to sustainable market success of any product/service. Experience Realms Absorption Immersion .

People’s innate preference for improvement is another factor in the principle. This desire not only applies to a lengthy encounter but also to short technology. Principle 2. There are five operating principles from the behavior findings which help in managing customer relationship: Principle 1.Get the bad experience out of the way early . Educational: here the person absorbs the events unfolding before him. Entertainment: while being entertained. when they view things. 4.1. While it is important to achieve a base level satisfactory performance at the beginning it is extremely important to end on a strong note. Esthetic: individuals immerse themselves but remain passive. 2. people absorb the experiences through their senses such as while viewing a performance.mediates encounters such as on websites. 3. while also creatively participating.Fishing Strong The beginning and the end of an encounter is not equally weighted by the customers. The end is far more important because that is what remains is the customer’s reflections. Escapist: during an escapist experience the person actively participates in an immersive environment.

so they can savour them. Principle 4. In addition. is largely symbolic. particularly an uncomfortable one. familiar activities. Customers want to know the bad events well in is used to . the control handed over. So it is important to break pleasant experiences into multiple stages and combine unpleasant ones into a single stage. They find comfort. This is particularly important in longer term professional service encounters. Principle 5.combine the pain Experiences seem longer when they are broken into segments. For example. people prefer to have undesirable events come first. This principle can both save money and make client happy.In a sequence of events involving good and bad they avoid dread and to have desirable events come at the end of the sequence. people have varied reaction to losses and gains.Give people and stick to them Most service encounter designers don’t realize how ritualistic people are. the wait time in a queue while rendering a service in park for getting into a joyride. order and meaning in repetitive. Not many businesses have grasped this notion because of which they fail to understand their customers well.Build Commitment through choice People are happier and more comfortable when they believe they have some control over a process. Often. Principle 3.Segment the Pleasure.

CRM focuses on bringing customers from zone1 to zone3 and retaining apostle customers. CRM recognizes that marketing starts after sale is over and not during when sale is completed. Zone of defection: Where customers are extremely hostile and the lowest level of satisfaction. Zone of indifference: Where customers are not sure. This results in improved customer retention and has a sizeable effect on company’s bottom line. 3.mark key moments in the relationship. The third level of customers is in the zone of affection described as ‘Apostles’. • Enhanced Retention . This approach leads to: • Greater Customer loyalty. Flatter customers. 2. set expectations and get feedback. 1. They have a medium level of satisfaction and loyalty towards the company. establish professional credentials and create a feeling of inclusion.5 CUSTOMERS CAN BE DIVIDED INTO 3 ZONES1.

. Their (i.6BENEFITS OF IMPLEMENTING CUSTOMER RELATIONSHIP MARKETING: The efficacy and benefits can be expounded and enhanced by looking from the standpoint of the inputs and outputs encompasses by the “Customer Relationship Marketing”.e. 4. and • Development of corrective actions to improved retention. A) CRM encompasses inputs like: 1. 7. etc with quality being the main concern. 5. Customers delight. Individual care. One to One partnership. Understanding customers and their requirements. 1. 3. B) The Output/Payoff of CRM like: 1.• Identification of most causes of defection and related key service issues. Information sharing. Value added products and services. 6. 2. customers) expectations and benefits sought. Attitude and attention.

Positive referrals. 11. Decreased customer efforts and costs. 4. 14. Life time customer recognition. 13. Extensive customer contact. 3. Total customer commitment. Increased customer profitability. Enhanced customer loyalty and trust.7 GOALS OF CUSTOMER RELATIONSHIP MARKETING: CRM is an ongoing process. which aims at retaining customers by creating a long lustful. fruitful relationship/alliance with them and gaining prospective customers utilizing the current customers as positive referrals. 10. Enhanced customer retention. 8. reward etc. respect. 7. Superior value through better services. Zero customer defection. 1. Increased customer share. . 9. 12. 5. Reduction in order procurement uncertainties.2. 6. Customized offerings.

. technology and people of the organization. 8. 5. Managing their techno-financial concerns with empathy etc. becomes an imperative task for the organization. In reality. Offering quality services that are expected. 4.Thus. processes and practices. values and culture. Optimizing delivered value by offering a better value proposition. Understanding their techno-economic requirements. 6. in context to the above the basic goals of CRM and also its achievement in due course of time. CRM calls for putting the customers at the center and reorganizing and aligning all facets of organization to deliver sustained customer delight every time. 7. Therefore. Getting closer/intimate to customers. Identify the right customer to focus. 2. 3. the basic goals of CRM are to:1. Making the customers feel that they are unique and are truly special. thereby making them loyal and intimate to the organization. CRM tends to realign policies. Delivering the right message to the right customers at right time.

2008. Mumbai Shoppers Stop Ltd has been awarded "the Hall of Fame" and won "the Emerging Market Retailer of the Year Award". With the launch of the Navi Mumbai departmental store. . Shoppers Stop has 34 stores in 15 cities in India. started in the year 1991 with its first store in Andheri. An Overview (SHOPPER’S STOP) Shoppers Stop is an Indian department stores promoted by the K Raheja Corp Group (Chandru L Raheja Group). on April 10.2 . by World Retail Congress at Barcelona.[3] Shoppers Stop is listed on the BSE.

Shoppers Stop has . Shoppers Stop began by operating a chain of department stores under the name “Shoppers’ Stop” in India. and Mattel. such as STOP. Corelle. who’s men's and women's outerwear are retailed in India exclusively through the chain. food. Shoppers Stop retails a range of branded apparel and private label under the following categories of apparel. personal care and various beauty related services. Shoppers Stop retails merchandise under its own labels. leather products. fashion jewellery. Pepe. BIBA. The website retails all the products available at Shoppers Stop stores. Nike. footwear. Acropolis etc. LIFE and Vettorio Fratini. cosmetics and accessories. entertainment. Bhopal and Aurangabad. Arrow. Shoppers Stop has 35 stores across the country and three stores under the name Home Stop. accessories and home products. The company also licensees for Austin Reed (London). In October 2009. Carbon. Magppie. Kashish. Reebok. Shoppers Stop opened stores in Amritsar. Products Shoppers Stop retails products of domestic and international brands such as Louis Philippe. including apparel. Shoppers Stop launched its e-store with delivery across major cities in India in 2008. Gini & Jony. an international brand. These are complemented by cafe.Shoppers Stop is one of the leading retail stores in India. Elliza Donatein. LEGO.

In April 2008. FCUK. up the fashion quotient through merchandising.And introduced international brands like CK Jeans. Shoppers Stop as a brand active on social media marketing platforms with Facebook and Twitter to connect with this audience. and create ambience that connects with the mindset.bought the license for merchandising Zoozoo the brand mascot for Vodafone India. They also offer a co-branded credit card with Citibank for their members. Shoppers Stop acquired 100 per cent stake in bookstore . Tommy Hilfiger. Shoppers Stop’s has a loyalty program called First Citizen. Dior across the stores. tongue-in-cheek manner. Shops Shoppers Stop's sister stores are Crossword Bookstores Crossword Bookstores is the largest chain of bookstores in India with 52 branches. Merchandising opportunities like the launched Zoozoo merchandise and film merchandise. Shoppers Stop connects with the youth audience through adopting the communication routes relevant to youth. Mustang. The focus of the reposition was on the service. ambience upgradation and customer connect. Shoppers Stop changed its logo and adopted the mantra "Start Something New mantra. The brand campaign addresses environment-related issues in a youthful.

It offers a . has signed a MoU with Shoppers Stop to run its BRIO outlets. bath accessories. Café Coffee Day (CCD). Brio Brio has 20 outlets in select cities. Desi Cafe Desi Café and their operations have been taken over by Café Coffee Day (CCD). mattresses. furniture and accessories. music. Crossword is positioned as a lifestyle bookstore with their spacious. which offers products in home decor. well laid out stores which encourages customers ease in browsing through the merchandise of books. stationary and toys.chain Crossword. has signed a MoU with Shoppers Stop to run its Desi Café outlets. draperies. carpets. the retail division of Amalgamated Bean Coffee Trading (ABCTL). HyperCity HyperCity provides customers a wide variety of range of products for shopping in a large and modern retail environment. bedroom furnishings. HomeStop HomeStop is premium home furnishings home concept store. the retail division of Amalgamated Bean Coffee Trading (ABCTL). modular kitchens and health equipment.

MotherCare MotherCare and Shoppers Stop come together to introduce products for infant and toddler care which stocks a variety of products for mother and babies. Sports. function and safety. Furniture. M. Appliances.A.the professional brand of choice. It retails cosmetics. Homeware. entered into a non exclusive retail agreement with cosmetics major Estee Lauder to open up M. The UK-based maternity and kidswear brand has nine standalone and 13 shop-in-shop formats. handbags.A. Home Entertainment.A.A. fine jewelry.C. M. with a strong emphasis on experience and indulgence and primarily caters to discerning women shoppers. toddlers and children till eight years of age with the focus being on style. Currently there are 9 M.C. Cosmetics stores in India.C. . Hi-Tech.A. Makeup-Art Cosmetics . sourced from both local and international markets.C. Toys & Fashion.C. footwear. Arcelia Arcelia is a new retail concept aiming at the growing accessories and cosmetics segment. M.contemporary range of products. stores operating. and Shopper’s Stop Ltd. is the first brand under the Estee lauder Group of Companies portfolio to enter the Indian retail market. The product range covers: Foods and Grocery. fragrances.

Navi Mumbai and Mumbai. . the two retail ventures of K Raheja group had signed a memorandum of understanding with UK’s leading retail chain Home Retail group to develop the Argos (retailer) retail format stores in India. Hyderabad. the world’s leading airport retailer. [13] Two years later. It has 5 outlets in Ahmedabad.Nuance Group Nuance Group with Shoppers Stop makes an entry into airport retailing. is handling the retail operations at the duty free zones in international terminals. Shopper's Stop Ltd. Kolkata. HyperCity-Argos HyperCity-Argos and Shoppers Stop. is operating outlets at the International airports at Bengaluru and Hyderabad. The alliance is marked with a joint venture with The Nuance Group AG of Switzerland. The joint venture company. Time zone Shoppers Stop forayed into the Entertainment sector by acquiring 45% stake in Timezone Entertainment Private Limited which is in the business of setting up and operating Family Entertainment Centres (FECs). called Nuance Group (India) Private Limited. Shoppers Stop Ltd has informed Bombay Stock Exchange shall wind down and discontinue its catalogue retail operations under the Hypercity-Argos brand.

What made it take the contrarian strategy was its base of repeat customers and the loyalty cards they held. they offer better profit margins to the retailers. squeezed the last paisa out of the vendor. the Raheja-owned chain of departmental stores. In contrast.1 CUSTOMER SHOPPER’S STOP RELATIONSHIP MANAGEMNT AT Tracking of consumers has helped shape many moves of Shoppers Stop — from merchandising and increasing the ticket size of purchases to opening of new stores The slowdown that came fast and furious in 2008 drove home the virtues of thrift to the country’s retailers. decided it would be brand-led and rebranded itself as a premium-to-luxury retailer. When others retracted their expansion plans. Shoppers Stop. There was also some rethink on the merchandise: Why not write more affordable prices? The exuberance was gone and there was a general tendency to slow the pace and move down the value chain. From a loss of Rs 63. Shoppers Stop opened shop beyond the top-tier cities. Most renegotiated rents. For the record.2. There was also a rush for private labels — though cheaper than brands. Tracking this band of consumers has shaped the retailer’s many moves — merchandising.65 crore in 2008-09 on net sale of . Shoppers Stop came out of the red in 2009-10. new store openings et al. increasing the ticket size of purchases. shut down stores that were no longer viable and pruned the workforce.

What we don’t know is the purchase from other stores which we ascertain through our wardrobe studies for new stores.3 crore.” says Bhatia. what matters is how the retailer manages the data. “We don’t see the information logged as an aggregation of cash memos but as vital clues to the purchase behaviour from our stores.” says Bhatia. it turned to a profit of Rs 35. like any other loyalty programme.Rs 1. Shoppers Stop has put in place a four-member analytics team to monetise the insights they read from the transactions.83 crore. The First Citizen card.88 crore on net sale of Rs 1. The company has also invested in technology to log such transactions on its other platforms as well: Homestop (furnishing and kitchenware). points are assigned to the money spent. however. “It is more effective than sample-based market research which .8 million loyalty cardholders who account for 73 per cent of the total sale. Ernst & Young Partner (retail and consumer products) Pinakiranjan Mishra says. which can be redeemed by the customer. logs all the purchases made by the customer.” says Bhatia.438.” To rein in the juggernaut of such information (16.5 million product units of every year). “We get information of every purchase of every such customer right from the first day. the Shoppers Stop scheme remains the largest. Shoppers Stop Vice-president (marketing and loyalty) Vinay Bhatia says there are 1.611. “More than the number of loyal members. Crossword (books and music) and Hypercity (hypermarket).

tells it that people from Amritsar would shop in Delhi. we had 2. With cardholders from Vashi already on its radar.would never have given us insights on actual purchases. Shoppers Stop does not depend on sample-based market research alone when opening a new store. right at the entry. “People who would come down from Vashi to other stores in Mumbai would opt for accessories such as bags and shoes rather than shop for apparels to change their looks.” From premium to luxury Thus. In Amritsar and its nearby towns.” says Bhatia. Shoppers Stop Managing Director Govind Shrikhande says: “We already have consumers in our database from places near major cities where we intend to open stores. Its First Citizen base. The usual analysis around festivals and communities is one part of it. Shoppers Stop knew what to provision for. for example. it analysed their purchases to find a skew towards accessories. something that Future Group has mastered well.” notes Bhatia. More comes into play during opening new store or for targeted communication.000 existing members. which puts data down against pin codes. It is aware that shoppers outside its catchment areas travel to its stores to shop. when it opened in Vashi in 2009. was therefore bigger compared to . The beauty and accessory section. Aurangabad in Pune or Mumbai and even people in Vashi in Navi Mumbai in its Chembur and Mulund stores — areas it has recently opened outlets in.

” says Bhatia. “We did not have to depend only on fresh recruits for the new store. women from Amritsar shopped more for ethnic wear and men for casuals (the absence of a corporate environment and of more business). We brace for it in advance. helping the retailer stock accordingly. “A large population of non-resident Indians means the shoppers know their way around premium and luxury brands. we knew that there would be a dip of 4 to 5 per cent in sale in the other stores. Shoppers Stop launched its fullfledged make-up brands including the top-end MAC in the Amritsar store. This is important. A large part of the retail business is to keep the supply chain as lean as possible. When a new store opens. .” says Bhatia. the retailer took some of its employees from the other two stores and posted them in Vashi since the traffic would have gone down. We don’t have to wait for the new store to open to gauge the cannibalisation for the last seven or eight launches that we have done. It helps in another way: Once it knew that customers would shift to the new store. Similarly. makeup was a big draw too with more time at their disposal for even small outings. likewise.” adds Bhatia. analysis of the data lets the retailer calculate the extent to which the revenue of its existing stores will get hit. “With the Vashi store.the other stores. we rationalised the volumes of the different SKUs in these stores to account for the diverted traffic. proper demand projection helps bring in great efficiencies into it. while we can’t shrink the area of the stores.

“We keep the look of the stores the same everywhere. One-stop shop Still. Not just demographics. there is greater dependence on two-wheelers then provisions for helmets and more space for two-wheelers are marked out. We are already .Shoppers Stop also does third-party surveys such as wardrobe studies before opening in a new catchment area. “says Shrikhande. we would not have too many full-length luxury cosmetic brands such as Dior or Clinique. Maybelline and L’Oreal but still have Tommy Hilfiger to make that aspirational statement. Shoppers Stop has not reverted to the pre-downturn eagerness to open stores. for instance. but in Bhopal. it also studies the financial profile of the town from the kind of bank brands there to the number of credit cards. It is concentrating only on anchor stores in contrast to the standalone format. for example. Bhatia says: “We have shortlisted 26 cities from the 45 in India with a population of over 1 million. telecom penetration. The type of vehicles help it negotiate with the mall developers for more space accordingly.” says Bhatia. Wardrobe studies help it ascertain the aspirations as well as the actual mix in a town’s wardrobes. if. “A city with a high use of credit cards would mean an environment conducive to a departmental store. the presence of educational institutions and even denim-wear consumption also help it fine tune a town’s profile. We would start with Lakme. Number of vehicles.

up from 2 per cent in 2008. Once in the store.” There are 34 stores of Shoppers Stop. straddling luxury and above-premium brands). it had segmented its consumers under categories such as bridge to luxury (BTL. we will target 26 more stores. How does this help? Instead of spending on wide-ranging communication.” says Bhatia. BTL brands account for 15 per cent of Shoppers Stop’s revenue. Regular . “Relevant and discreet communication will make the consumer take our messages seriously. premium. Shoppers Stop has used the segmentation for sharper advertisements with mailers and mobile-phone messages for its BTL loyalists when it launched Mustang. last year. before the retailer repositioned itself. Early March last year.” says Bhatia. Mysore and Vijayawada. Next up are Durgapur. Aurangabad and Bhopal over the past few months. Shoppers Stop has trained its eyes on increasing the ticket sizes that customers run up when encashing their loyalty points. “Our BTL cardholders alone contribute to 91 per cent of the full BTL sale.present in 15 of them and will enter 11 more in the next four years. we will cater to the top end of India. one of its exclusive brand tie-ups. In the next four years. popular (mass brands) and value (those who buy during a sale). In line with our positioning. The First Citizen analytics has been fine-tuning its entry into new catchments such as Amritsar. it has lined up for the cardholders personal shoppers and an upgraded store experience. often called the shotgun approach.

for whom we said we will discount the second trouser they buy. hoping that their involvement in such a paid-for system would be deeper and they would carry the card every time they come in.000 members who got such communication shot up by 30 per cent.reminders of the expiry of points in simplified rupee-value terms are sent. This festival season it let shoppers choose their own gift for high bill amounts rather than saddle them with trinkets and accessories that might not match their tastes.” Bhatia says. compared to the control group whom Shoppers Stop did not send any to gauge the change. “We charge shoppers a nominal fee of Rs 200 to enroll in our programme in the first place. the second was the one who bought shirts and even casual trousers but not formal trousers. “We broke them into three types: Those who needed a benefit in such as an offer. All of these measures are geared to send the average ticket size up north.000 members who had . and for them we introduced bundling shirts with trousers.” says Bhatia. The cross-referencing of purchase history of cardholders revealed an odd buying behaviour: Men would come in and buy shirts but would not pair these with trousers. Purchases among the 100. Loyalty cardholders dropping off its maps are coaxed back with personalised offers if they haven’t paid for with the card for the last 12 to 18 months. to whom we did not communicate discounts but appraised him of the new brands and fits that came in our stores. Shoppers Stop also tied up with a jewellery brand in its stores and sent out mailers to 15. the last was the one who wanted new brands to purchase.

as have exclusive international brands on Shoppers Stop’s floor such as Mustang. Mothercare. Guerlin cosmetics and Austin Reed. Shoppers Stop had the added burden of trying to keep its positioning as a more premium brand alive. Bhatia claims there was an increase of 40 per cent in jewellery purchases among this group over the ones who had not received such communication. Gaining an edge through loyalty cards over competition took on a different tone in 2008 when Future Group’s brand-led format.shopped for jewellery but had not bought any in the last 18 months. Central. The campaign of course ran into legal proceedings but not before underlying the import of loyalty programmes for Indian retailers during and after the downturn. Shopper sentiments have since picked up. invited cardholders of other department stores such as Shoppers Stop and Lifestyle to avail of additional discounts at its Gurgaon outlet. .

Sales increases Loyalty programmes . He visits the store again and again to purchase any goods or article. Resultantly. Thus. the sales of the store go up further. Delighted by such benefits. they spread the same information about Shoppers Stop and its benefits among their family members and friends.2.2 Customer loyalty and Customer Referral programs First of all when any customer do some purchase in Shoppers Stop and feel very delighted by the store then automatically the sales increases. These customers get the loyalty cards form Shoppers Stop (First Citizen card) which provides them additional benefits and services. we find that a loyal customer help in the referral programme a lot. Moreover. the loyalty of the customer towards the store increases and they prefer to have shopping in the store for long time to come.

These vouchers are basically gift vouchers which can send by any individual customer to his friend or relatives or an employer can gift to his employees. Shopper Stop Gift Voucher Shoppers Stop Gift VoucherShoppers Stop Gift Voucher is one of the prominent tools of Customer Referral programme at Shopper Stop. 2.3 Referral programs of Shoppers Stop1. . 3.Customer satisfaction Increased sales Refer to friends and relatives 2. The store sends direct mail and SMSs to their loyal customers about the new products or new launches available at the store. The value of this voucher ranges from Rs.2000/-.50/. The store also gives some prizes to those customers who referred some customers to Shoppers Stop and when during the purchase mention the name of the referring customer.

Suppose.50/to Rs. . • Referral program is an excuse for company to get in touch with their customers and maintain regular contact. he can become a referrer and can add more new customers. The friend of this customer who never knew about shoppers Stop or never did shopping at Shoppers Stop would use the gift voucher inside the envelope ranging from Rs.and can fell delighted by the experience of shopping at the store. • Simple. 2. low cost and effective marketing strategy. • A customer who is referred to you is a much easier sale. • People feel more comfortable when a product or service is recommended by someone they know. So in that case the customer can send this gift voucher in an envelope written-“Happy Birthday”. In case this new customer is too much delighted by the shopping experience. • A good referral marketing system can quickly multiply.2000/.4 Key benefits of Referral Program • Generate new customers from existing customers. there is a birthday of a friend of one of the customer.


e. To be a successful relationship marketer. At its best.Relationship Marketing is a term has yet to acquire uncontested status and meaning. relationship marketing refers to all internal and external organizational relationships. Companies routinely communicate more frequently and make special offers to their more valued customers. Whether this is seen by customers as adding value is a moot point. Relationship marketing is focused clearly on external customer relationships. Relationship marketing is simply a traditional marketing dressed up in new clothes. For some. from macro and micro analytical point of view) in such a way so that the objective of Relationship Marketing is judiciously achieved. it represents a significant change in the practice of marketing. For some. . it is not known what customer wants. companies must develop certain tools and techniques (i. for others. in significant numbers to enter into relationships with their suppliers. for others. Relationship Marketing is characterized by a genuine concern to meet or exceed the expectations of customers and to provide excellent service in an environment of trust and commitment to the relationship. The voice of customer is partially absent from such Relationship Marketing. Indeed.

in www. REFERENCE • • • • • • • www.shopper stop .com .co.spglobal.nikkei.