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Case study on Shoppers Stop

Creating Customer Value, Satisfaction and Loyalty

Report by Girish S.Sivasankaran Srinath Manivannan M.Sivanandam S.Karthikeyan Arindam Chatterjee Santosh Kumar Kesarwani

Summary The CRM initiative of Shoppers Stop entirely revolves around the concept that cost of acquiring new customer is higher than that of retaining existing one. Shoppers Stop very brilliantly imbibed this philosophy into its corporate strategy and the total success of this initiative can be attributed to religious implementation at every step and a whole hearted effort to deliver feel great experience at every point of customer interface.Shoppers

Stop (SS) has converted the concept of retail into an experience, an indulgence.

Business Analytics

SS Initiated a Project Dhrishti (Data Warehouse) to maintain a standardized timely and accurate customer database. With the help for SAS BI server and Enterprise miner they analyzed the variety of consumption by different customers using which they were able to bring innovative customer loyalty programs. Analysis helped them understand share of wallet ,study target market demographics to assist their buying and merchandising decisions It also improved their performance in areas of inventory and vendor management, loss prevention and financial analysis

Technology

SS is one of those first few retail chains which introduced scanners and bar codes and also encouraged the use of fully computerized operations. Also has ERP which helps in quick decision making process- open new stores faster, get necessary information online.

First Citizen Program

First Citizen is one of the very significant loyalty programs of Shoppers Stop. This was designed with an objective of making the customers feel special. Special priority was given to the members like separate billing desk, customer service desk etc., Also the members became a part of first citizen club by paying an application fee of Rs.150. This was also apparently a revenue generating method adopted by Shopers stop. First Citizen Program has 1.5 million active members across India. 73% of total revenue was obtained by the first citizen holders.

Co- branding and Loyalty initiatives

Shoppers stop made a tie-up with Citibank and introduced First citizen Citibank card. It was the first retail shop to rope in any financial services for co-branding initiatives It also brought in Citibank stall, making the availability of loans from Citibank easy for its customers, which proves SSs aim on creating customer delight than just satisfaction. 50% of Shoppers stop sales are drawn from well managed customer retention programs SKIDS was another innovative offer introduced to cover the kids of the first citizen card holders. Shoppers stop also enrolled in ICGDS in par with the existing 29 celebrated retail shops worldwide, this is also a milestone in creating an accreditation among the customers and may also help in expanding the customer base.

Conclusion With several initiatives Shoppers stop has emerged a successful retail shop among the tough retail completion. Form this case it is for sure that shoppers stop has gained the First mover advantage. However analysis on competitors strategies is essentials as it will through lights on the areas where shoppers stop can improve, so that it can capture and sustain No.1 position in market, profitably.