india post crm

8/8/2019 India Post CRM

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The making over of India post

- Myth or Reality?SURESH PAUL ANTONY


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Market leader of yesteryears India Post hasrun out of monopoly.

Express industry identified the unmet needsof the customer.

India Post did not make the first move towardsgetting organized.

Finally evolving strategies to meet challengesof competition in the new world.


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INDIA POST THE ORGANISATION

A legacy of British Raj.

Retail network of over 1.54 lakh post offices of which 90%

serve rural areas.

Over 6.03 lakh personnel. Revenues of over Rs. 5 crores /day.

Collection in Savings bank/Collection schemes of nearly Rs.80

crores/day.

Aggregate sum assured of over Rs.10,000 crores in lifeinsurance.

Money orders valued at over Rs.15 crores /day.

Over 5.64lakh letterboxes throughout India.


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Product portfolio

Over 25 Products ranging from lowly post cards to

international money transfers.

Indian Postal Orders.

New products:

Speed post.

International Money transfer through Western union.

Corporate VSAT Money Order Service. Business Post.

Hybrid Mail Service.

Data Post.

Telegraphic Money order Service.


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Current Situation (As on 1995)

Traditional Products like post cards, newspapers, Indian

postal orders where huge revenue busters with a loss of

93%.

Where as Products like Speed post where 140% positive

over the cost.

Also traditional products like foreign mail at 9% and

insurance at 32% where at surplus.

The surplus generating product was less then 20% of the

product portfolio in terms of numbers.


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Looking Ahead

Sector Market Share 1995 Market Share 2005

Physical mail 20% 15%

Fax & Telephone 75% 75%

Email 5% 10%


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SWOT ANALYSIS

Belief & trust due to govt backing

Wide Network

Establish redressal machinery

Talented Professional leadership Vast business experience

Strong infrastructure

Strength

Many untapped markets Inreasing acceptance of e-mail

Opening up of hybrids

Growing number of internationaltransations

Opportunities


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SWOT ANALYSIS

Lethargy due to secure employment

Lack of ownership

Absence of organisation-wide customerfocus

Weakness

E-mail traffic

Penetration of internal into homes

Aggressive private players

Threat


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Why relationships

Traditionally organizations have focused on the 1st of

the 3 Rs of Marketing recurit, retain & regain.

But now they have realized:

That it costs exorbitantly high to recurite new

customers.

That its cost exorbitantly to lose a customer. The loyal customer bring in more that their revenue

streams by word-of-mouth.


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Customer expectation and

satisfaction Contrary to opinion, price per unit is not thedetermining factor.

A Customer is

- discerning

- capable

- more than willing to pay a higher price

for any product that offers Value-for-money.


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India Post - Customer Relationships

Prompt ,reliable delivery & Courteous service - Most

important factor for Customer satisfaction -Market studyconducted by TSM for India Posts in South Tamil Nadu

Customer Service with India Post

Satisfaction levels is higher for private players vis-a vis

India Post.

Number of users who have expressed dissatisfactiontowards extremes is higher in India Post.


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India Post & Service Quality

dimensions Reliability : Ability of India Post to perform promised servicedependably & accurately.

Responsiveness : Willingness of India Post personnel to help

customers & to provide prompt service. Assurance : Knowledge & courtesy of India Post & its

personnel to inspire trust & confidence.

Empathy : Caring & individualized attention that India Post

should provide its customers.

Tangibles : Appearance of physical facilities, equipment,

personnel & communication material.


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India Post - Current Strategic Initiatives

Realized limitations of its product portfolio, customer profile

& exigencies of societal obligations like offering subsidized

service.

Segment customers & offer targetted offerings

Eg: IMF in collaboration with Western union, Data post etc.

Technology is being increasingly adopted & extended in a

phased manner across the country.


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Questions

Q1) A sleeping Giant (India Post) has woken

up & is evolving strategies to meet the

challenge of competition in the world - Do

you believe that government of India is whole

heartedly trying to achieve Excellence in

Service Quality ?


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Total dedication to understanding and fulfilling customer'sneeds .

Total devotion to providing efficient and reliable services ,

which customers consider to be value for money.

Total commitment to providing challenging and rewardingcareer for every employee.

Total recognition of the responsibilities as a part of the social,industrial and commercial life of the country.

Total enthusiasm to be forward looking and innovative in all

areas.


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Q2 ) If Internal Marketing is done successfully

,it would follow Interactive Marketing wouldalso be empowered . Do you agree with this

statement ,especially with reference to the

case India Post. Explain your answer with

the support of Service Triangle Model


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Service Marketing Triangle

If internal Marketing done successfully, interactivemarketing would be empowered.

Orientation Programmes to train company personnel

Customer Orientation Program Postal assistants

Business Orientation Program Marketing executives

Therefore enhance customer satisfaction & relationships.


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Q3 ) Which New products should be developedby India Post & which existing products should

be dropped & why ?


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Product Portfolio

Postcards are incurring loss along with others like postalorders.

Surplus generating products such as Speed post, foreign mail& insurance account to only 20 % of the portfolio.

India Post currently offers a blend of services as under

Speed Post

Mail ProductsTraditional products (Letters, Inland letters,Parcel etc)

Financial services (Banking, Money order, Postal lifeinsurance, Mutual funds)

Premium services (Forex services In association with HDFCBank, Greetings post, Retail post, Business post)


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Product Portfolio - Current

Highlights India Post has segmented the services on basis of targetted

customers, therefore dropping of products /addition of newproducts should be decided based on customer demand &

trend.

India Post should strike a balance between its urban & ruralcustomers as penetration in rural areas is not matched by anyprivate operator.


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Q4 ) Tangibles in most of the post offices

are poor, compared to other CentralGovernment organizations like , Nationalized

banks, Railways etc. Suggest important

improvements to be made in Tangibles in

post offices.


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Tangibles

Tangibility is what the customer Sees & Feels in terms ofPhysical facilities, equipment ,personnel & communicationmaterial.


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Important improvements

Create a good ambience with modern infrastructure.

Customer friendly environment.

Visibility of product portfolio offered should increase.

Trained personnel to serve the customers.


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Q5 ) While a beginning has been made in

Tangible dimension of the Servqual, muchneeds to be done in Reliability ,

Responsiveness, Assurance & Empathy. Explain

how this can be achieved in India Post?


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Reliability

Employees to keep customers informed when service willbe performed and keep promises.

Employees to show sincere interest in solving problems.

Employees to perform service right the first time.

Responsiveness

Employees to give prompt service

Employees to be always willing to help

Employees to be never busy to respond to requests


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Assurance

Employers by their behavior to install confidence

Employees to be constantly courteous.

Employees to increase product knowledge to answer

questions.

Empathy

Employees to give individual attention to everycustomer.

Employees to understand specific needs of customers.

India Post should adhere to the identified requirements tobuild favorable perception in case of ReliabilityResponsiveness, Assurance & Empathy.


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6 ) Customer Satisfaction can be the only bedrock

on which edifice of a successful relationship restsand can be built upon. Relationships cannot be

substituted, cannot be copied and offer a strong

Entry barrier for New Players.

Explain this statement with relation to India Post.


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Organizations should always treat their customers as anintegral part of exchange process & cannot succeedwithout focusing on the customers.

Building relationship is therefore critical since companiesshould exceed the expectations more than customersdesires & India Post cannot be an exception.

Therefore concentration on Retaining the customer isof most importance to India post & if India Post issuccessful in implementing strategies India Post will bemiles ahead of competition because of India Postscombination of - Experience + Reach + Technology +Customer satisfaction.


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Q7) What India Post should do to promote theirpublic image and also its various product lines ?


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India post has made a beginning with Modern-looking,Visually appealing offices.

Interactive & Informative website : www.indiapost.gov.in

Promotion

Increase visibility

Advertise in different mediums.

Create associations with the help of brand ambassadors.

Take on competition by highlighting benefits viz a vizcompetition.

Empower employees & create customer friendlyenvironment.


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Q8 ) What are your detailed recommendationsto convert India Post from a government

monopoly to a successful business enterprise?


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Bring a change in attitude within from being a Governmentorganization to a Business organization.

Set goals & benchmarks to achieve profitability by proper

segmentation & targeting products which suits customersneeds.

Tap the market potential by using & realigning the availableresources.

Highlight & promote Financial services more aggresively.

Sensitive to changing customer trends & technology & act at a

faster pace.


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Thank you

india post crm

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