Crm in Indian Retail Sector

Topics: Customer relationship management, Retailing, Sales Pages: 9 (2639 words) Published: October 21, 2010
CRM in Indian retail sector
K. Sarada madhavi
Retail is India's largest industry, accounting for over 10 per cent of the country's GDP and around eight per cent of the employment. It is one of the most dynamic and fast paced industries with several players entering the market. The growing middle class, who has a substantial disposal income in hand, constitutes the largest shoppers' segment in India. Its consumer behaviour is changing continuously and reaching new levels of tastes and preferences. IT is emerging as major tool of customer relationship in the retail markets in India. They are doing this by aggressively adopting IT applications to streamline from accounting and human resource management to core functions like buying, merchandising, supply chain management, store management, marketing and especially customer relationship management. This present paper highlights the strategies followed by the retail industry in India for retaining their large customer database. It also made an attempt to bring out the applications of information technology in retailing

Retailing in India is gradually becoming one of the key industries for economic development .The changed consumer behaviour and in creased standard of living in the growing middle classbrough t arevolution in Indian retail scenario. Modern retail has entered India as seen in sprawling shopping centres, multi-storeyed malls and huge complexes offer shopping, entertainment and food all under one roof. The other reason is a significant change in th demographics. A large young working population with median age of 24 years, nuclear families in urban areas, along with increasing working-women population and emerging opportunities in the services sector are the key growth drivers of the retail sector in India.. Now there is a tough competition between the organized retail chains and unorganized retailers to retain the customers. This task is handled by maintaining a good customer relations this is made easy with the help of information technology. With the fast changing retail scenario in the country, the role which the entire CRM team plays has changed dramatically. It is quite often also linked to strategy. The aim of CRM implementation was to ensure three principles—availability, reliability and scalability. The reason for linking the CRM to the overall strategy is to • Build dynamic relationship with the customer

• To make CRM the key element to building customer loyalty to a store brand • To Build a significant competitive advantage
• Differentiation and appropriate business controls
Customer Relationship Management (CRM)
CRM is a business strategy that helps companies in increasing their profits by putting customers’ needs at the center of the organization. CRM involves managing and storing customer related information, both sales and service related, to enable companies to provide better services to them. CRM solutions enable companies to create and maintain relationships with customers by tracking their interests, requirements and buying patterns. Role of CRM

Expectations of customer are increasing, . Every retailer today is aiming at an attempt to make a casual customer into a loyal customer who develops a bond with the retail store he/she visits. Customer relationship management is ahead of the transactional exchange and facilitates the marketer to understand the customer's sentiments and buying habits so that the customer can be provided with products and services before he starts demanding. This is possible through the integration of four important components i.e. people, process, technology and data. The challenge lies in constantly innovating methods of attracting new customers and keeping there interests alive. Loyalty programmes as part of CRM based activity are one of the ways of overcoming this challenge. The variety of...

References: • CRM – An Indian perspective by chaturvedi & chaturvedi
• Retail reality." November 7, 2007.
• "ICRIER Begins Survey of Indian Retail Sector." March 19, 2007.
• "Retailing in India Unshackling the chain stores". The Economist. 2008. 
• "India again tops global retail index." June 22, 2007.
• "Interview - Technopak Advisors Pvt. Ltd.." December 11, 2006.
• "Economic and financial indicators" July 3, 2008.
• "Indian Retail story from Myths to Mall." August 11, 2007.
• "Centre consulting states for setting up retail regulator." July 2, 2008.
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