CRM Report Group5 SectionB

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<ul><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 1/17</p><p>CRM at Pantaloon Retail Ltd.</p><p>Submitted By</p><p>Group - 5, Sec B</p><p>Date 05/02/2013</p><p>Customer Relationship</p><p>Management</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 2/17</p><p>Contents</p><p>Pantaloon Retail India Limited ................................................................................................................ 2</p><p>Introduction ........................................................................................................................................ 2</p><p>Financial Data ...................................................................................................................................... 2</p><p>What is CRM for Pantaloon ..................................................................................................................... 2</p><p>For Pantaloons, CRM means ............................................................................................................... 3</p><p>Objectives of CRM as a strategic tool ..................................................................................................... 4</p><p>Expected benefits of CRM for Pantaloon and the need for using CRM .............................................. 4</p><p>CRM Implementation in Pantaloon ........................................................................................................ 8</p><p>Process followed while implementing CRM ......................................................................................... 10</p><p>Key Issues faced .................................................................................................................................... 11</p><p>Learning from the process .................................................................................................................... 11</p><p>Performance Evaluation of Pantaloon RIL post CRM implementation ................................................. 12</p><p>Insights from Interviews ....................................................................................................................... 14</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 3/17</p><p>Pantaloon Retail India Limited</p><p>Introduction</p><p>Pantaloon Retail is the flagship company of Future Group, Indias retail pioneer catering to</p><p>the entire Indian consumption space. Through multiple retail formats, Pantaloon connects a</p><p>diverse and passionate community of Indian buyers, sellers and businesses. As Indias</p><p>leading retailer, Pantaloon Retail inspires trust through innovative offerings, quality</p><p>products and affordable prices that help customers achieve a better quality of life every day.</p><p>They have a customer base of 300 million and the products and services supplied by over</p><p>30,000 small, medium and large entrepreneurs and manufacturers from across India.</p><p>Pantaloon has customers in 93 cities and 60 rural locations across the country through over</p><p>17 million square feet of retail space.</p><p>Financial Data</p><p>What is CRM for Pantaloon</p><p>In India, the retailers play a vital role in selling goods to the ultimate customer and day by</p><p>day numbers of retailer are increasing tremendously and ultimate end users are being</p><p>confused and customers keep on changing the retail store. The numbers of store are</p><p>increasing easily and retaining a customer by apparel retailers is becoming very difficult.</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 4/17</p><p>Apparel retailers try to retain customer using various customer program because</p><p>relationship with customer is more important.</p><p>For Pantaloons, CRM meansLeveraging sourcing strengths in all product categories, logistics and delivery network and</p><p>lower cost of customer acquisition and integrating it with a strong technology backbone.</p><p>Technology has the potential to be a game change and a significant value creator for the</p><p>organization in the long run. The integrated platform on the digital space has the potential</p><p>to contribute around 15% of turnover at significantly lower cost. Below mentioned are the</p><p>ways which will contribute to achieve the above stated objectives.</p><p> Better customer service Cross-sell and up-sell Increased customer satisfaction Enhanced Customer relationship Customer buying behaviour pattern analysis Better employee performance</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 5/17</p><p>Objectives of CRM as a strategic tool</p><p>Expected benefits of CRM for Pantaloon and the need for using CRM</p><p> Customization:- Better customer serviceo Each employee in the store is aware of the discounts and offers available in</p><p>the store as well as individual customer buying behaviour. This will help them</p><p>in offering customized products and services as per their requirements.</p><p> Data Mining:-Customer buying behaviour pattern analysiso Once a customer uses the loyalty card for billing the amount and redeems</p><p>their points accumulated (if any), the details are sent to a customer data</p><p>base, which is being operated by a service operator at every store. It helps to</p><p>recognize the individual purchasing and repurchasing behaviour over a period</p><p>of time.</p><p> Customer Development:- Cross-sell and up-sello The store uses cross-selling method to push the number of sales. Every</p><p>employee in the store is aware of the discount offers across the stores and</p><p>shares every possible detail with all present in the store. They are also being</p><p>trained to read the customer purchasing behaviour and simultaneously</p><p>recommend them similar product with additional feature or discounts.</p><p> Loyalty Programs, Optimized marketing:- Increased customer satisfaction</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 6/17</p><p>o They are increasing customer satisfaction through Loyalty program whichthey are running from year 2006. They have three different kinds of loyalty</p><p>initiatives namely T24, PAYBACK and Greencard.</p><p>o In PAYBACK, Shopping is rewarding. PAYBACK is a German company whichis Indias largest multipartner loyalty program. In India, PAYBACK has 26</p><p>outlet partners and the utility of this program can be used across the outlet</p><p>partners. Pantaloon have merged Greencard benefits to the payback and</p><p>offer customers both the discounts (Friday discount) and the points to be</p><p>redeemed anywhere across the partnered outlets of PAYBACK. The discount</p><p>offer has to be used only in the Pantaloon stores across the country.</p><p>Customers who earn points from any future group stores can be redeemed</p><p>for air miles, movie tickets, air tickets and vice versa.</p><p>o In T24 program, Dual advantage all 24 hours of the dayShop More, TalkMore and Talk More, Shop More. Customers will get shopping benefits for</p><p>talking and talk-time benefits each time they shop. For e.g, Customers will</p><p>get free talk-time for every purchase above Rs 500, a T24 customer buying</p><p>products worth Rs 2,501 at Pantaloons or EZone will get 50 minutes of free</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 7/17</p><p>talk-time, a customer spending Rs 1,501 in Big Bazaar will gain 90 minutes of</p><p>free talk-time for every purchase.</p><p>o Using GreenCard Loyalty program, customers will get extra benefit dependingupon whether they are 1star, 3 star, 5 star or 7 star customers. The</p><p>customers who make a minimum purchase will be awarded 1star where as if</p><p>their consolidated purchase for an year is Rs 8000/- will be automatically</p><p>upgraded to 3 star, if it is 20000 then it is 5star and if it is 40000 then it is a 7</p><p>star.</p><p> Campaign Management, Channel Integration, Integrated CustomerCommunications:- Enhanced Customer relationship</p><p>o The store uses customized way to pull the customers. They sent SMS/ Emailcustomers about the offers and benefits. Customers being reminded if they</p><p>are not using the PAYBACK Greencard for long time.</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 8/17</p><p>They also have customized schemes for occasions such us on birthdays and</p><p>give customers additional Rs 500 worth gift voucher for a certain amount</p><p>purchase and they also get back the redeemed points, they uses while billing.</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 9/17</p><p>CRM Implementation in PantaloonPantaloon Retail decided to implement SAP to keep itself competitive in the rapidly growing</p><p>Indian retail market. They wanted to sell customized offerings to customers based on their</p><p>buying behaviour. They need to have a system in place where they can collect the customer</p><p>data and analyze it accordingly. The result of the analysis will be sent to each store for cross</p><p>selling and up-selling of their products as well. More over they want to have an enhanced</p><p>customer relationship with their customers by improving the customer service and</p><p>increasing the customer satisfaction.</p><p>For any retailers, store operations have never been as important as they are now. For one to</p><p>be successful, they have to win the customers which are possible only at the frontline or its</p><p>stores. Pantaloon was expanding fast by opening stores in the metros and they needed a</p><p>reliable enterprise wide application to help run its business effectively. The company was</p><p>looking for a solution that would bring all of its businesses and processes together. After a</p><p>comprehensive evaluation of different options and software companies, the management at</p><p>Pantaloon decided to go in for SAP.</p><p>Considering the scale and scope of the ambitious growth plans that the company has set for</p><p>itself, technology will act as a crucial business driver and a catalyst in implementing the</p><p>expansion plan. The SAP implementation will provide a complete end-to-end solution for all</p><p>businessesof the group.</p><p>Pantaloon have implemented mySAP Business Suite - IS Retail Solution, for core transactions</p><p>and financial management and advanced functionalities and modules from the IS retail</p><p>suite, like SAP MAP Tool for Merchandise and Assortment Planning; Automated</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 10/17</p><p>Replenishment systems, Advanced Warehouse Management, CRM, BW for Analytics and</p><p>Business Intelligence, and SAP HR Solutions, for a robust retail operation.</p><p>They have implemented a fully integrated transaction processing system, which would</p><p>accumulate accurate real time data with respect to key function of the organization</p><p>performs such as merchandise management, procurement, manufacturing, warehousing,</p><p>logistics, inventory management, store operations and financial management.</p><p>The company also did logical integration of more stringent measures of getting SAP and POS</p><p>(Point of Sale) in sync in each lines of business. The company also put a renewed emphasis</p><p>on Business Intelligence and Data Warehousing tools that will enable quick decision making</p><p>across all businesses through seamless flow of data at all levels. Further, management</p><p>dashboards have also been created and these are customized to individual business</p><p>requirements.</p><p>Some of the qualities of SAP retail solutions are that it supports product development,</p><p>which includes ideation, trend analysis, and collaboration with partners in the supply chain;</p><p>sourcing and procurement, which involves working with manufacturers to fulfil orders</p><p>according to strategic merchandising plans and optimise cost, quality, and speedvariables</p><p>that must be weighted differently as business needs, buying plans, and market demand</p><p>patterns change; managing the supply chain, which involves handling the logistics of moving</p><p>finished goods from the source into stores and overseeing global trade and procurement</p><p>requirements; selling goods across a variety of channels to customers, which requires</p><p>marketing and brand management; managing mark-downs and capturing customer</p><p>reactions, analysing data, and using it to optimise the next phase of the design process.</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 11/17</p><p>Process followed while implementing CRM</p><p>The implementation</p><p>The implementation was outsourced to a third party. The implementation was done by the</p><p>SAP team with help of Novasoft which is based out of Singapore. To further speed up the</p><p>process, people from Pantaloon also assisted in the project. About 24 qualified people</p><p>worked on this SAP implementation.</p><p>SAP implementation project was divided into three phases.</p><p>The first phase involved blueprinting existing processes and mapping them to the desired</p><p>state. In this phase, the entire project team worked on current processes within the</p><p>structure of the organisation, analysed and drafted them. This blueprint was later used in</p><p>the formation of new states of the solution. Since the SAP would combine all the processes,</p><p>each and every one of these had to be evaluated.</p><p>In the second phase, the SAP platform was developed with the help of Novasofts template</p><p>which was predefined by SAP after evaluation of Pantaloons needs and expertise in retail</p><p>solutions.</p><p>The last phase in this project was for stores to switch over to the new system and for</p><p>current data to be ported. Before the SAP implementation, all the data was unorganised.</p><p>This data had to be migrated to the new SAP application.</p><p>The project was flagged off on 15th June 2005 and took about six months to finish. It went</p><p>live at the head office on 1st January 2006. The stores went live on SAP from 1st January</p><p>2006 to 30th June 2006.</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 12/17</p><p>Aim To deploy a robust transaction management system and an enterprise-</p><p>wide platform to run its operations.</p><p>Solution SAP retail solution</p><p>Implemented By SAP team with the help of Novasoft, SingaporeNumber of users Around 1,200</p><p>Time taken About six months</p><p>Implementation</p><p>Cost</p><p>About $10 million</p><p>Key Issues faced</p><p>The key challenges in this project were not in the implementation. Rather, the difficulties</p><p>were faced during the data migration and in managing the interim period when the project</p><p>was underway for about six months. Migrating unorganised data to an organised format is a</p><p>challenging task.</p><p>Learning from the process</p><p>Pantaloon has not been able to see immediate benefits from this implementation. This</p><p>application certainly has long term benefits which will be seen when the performance of</p><p>various aspects will be analysed. This application is currently being used by around 1,200</p><p>employees across the organisation. For maintaining this implementation and its related</p><p>applications, Pantaloon has an in-house team and it has outsourced ABAP resources. They</p><p>are also in the process of setting up a SAP Competency Centre.</p><p>The learning from the project is in the process of handling the project in a short time span,</p><p>mapping the existing processes of Pantaloon with SAP, migration of the data from existing</p><p>system to SAP, educating and training the users on the benefit of using SAP.</p></li><li><p>7/29/2019 CRM Report Group5 SectionB</p><p> 13/17</p><p>Performance Evaluation of Pantaloon RIL post CRM</p><p>implementationThe performance of the organization can be measured using either traditional marketing</p><p>metrics or customer based marketing metrics as shown below. Due to ease of measuring</p><p>the performance, Pantaloon Retail has used the traditional approach.</p><p>Traditional marketing metrics can be measured using Market Share and Sales Growth.</p><p>Pantaloons</p><p>Sales Growth is 27% in 2011 after implementing CRM and Pantaloons Green card Loyalty</p><p>Program</p><p>Revenue Contribution After implementing CRM and Loyalty program, 3.03 million</p><p>members of Pantaloons ha...</p></li></ul>