CRM IN FLIPKARTGROUP 4

PRIYARANJAN MOHANTY(UM15036)JAYDEEP SAHOO(UM15023)

SUMIT SUMAN(UM15051)SHREEKUMAR SAHU(UM15054)

SWAGAT DAS(UM15055)VIVEK TRIPATHY(UM15062)

Introduction

• Flipkart is an Indian e-commerce company which is founded by Sachin Bansal and Binny Bansal in 2007. It is headquartered in Bengaluru, Karnataka. The Bansals control 37% of Flipkart equity, Accel Partners and Tiger Global together control 48% and the management holds the remaining 15%.

• Flipkart started out with the goal of offering customer delight and aspires to be the “amazon of India”.

• Flipkart started its journey in 2007 with only one category i.e. books. It gradually moved to other categories such as media(2010),electronics, stationery, white goods ,personal care(2011),toys, poster and apparel(2012).Flipkart revolutionized the way Indian e-commerce worked by bringing in variety, new payment methods and convenience in its operation processes.

• The company has 22 million registered users today.

Product/Services

Exclusive Product Launches

• Motorola Mobility, in an exclusive tie up with Flipkart launched its budget smartphone Moto G in India

• Xiaomi Mi3 produced by Xiaomi Tech was launched in India on an exclusive tie-up with Flipkart

• Flash sale of the Xiaomi Redmi 1S budget Android smartphone which was launched in India in July 2014

In-house Products

• In July 2014 Flipkart launched its own set of tablet, mobile phones & Phablet

• Flipkart launched its first networking router, under its own brand name named DigiFlip

• In September 2014 Flipkart launched its in-house home appliances and personal healthcare brand Citron

Business Canvas: Flipkart

Key Partners• Equity Partners: Accel and Tiger Global• Advisory and restructuring: Indus Law• Distributors and suppliers• Authors and publishers• Companies across various categories

Customer Segments• Youth• Avid book readers• Tech savvies• Online shoppers• Trend setters

Cost Structure:

Infrastructure costs Manpower costs Platform maintenance costs

Revenue Streams

Online sales

Customer Relationships

word of mouth online & interactive

advertising social media

Key Activities

Platform management Platform promotion Service provisioning

Key Resources

Hardware & software for platform

Manpower Capital

Why CRM at Flipkart

• Efficient gathering of data (sales information, delivery details, web traffic and real time analytics)

• Controls scaling of demand by allowing additions and tweaking of requirements

• Information such as customer churn rate, repeat customers, frequency of purchase, etc. can be derived

• Enables thorough integration of all the channels at the back end to deliver quality consumer experience

• Reaches out to customers through several channels such as email, customer care or chat support

• Automates repetitive processes

• Reduces the order processing costs

Key Value Propositions by Flipkart:• Variety• Convenience• Reliability• Best Price• Quality customer service• Credibility• Speed

IT Architecture Based on LAMP architecture

• Common way of designing modern day websites based on freely available and reliable open source technologies.

• Cost effective and reliable way of building websites

• Helps in the backend scaling of the website and integration with ERP (and CRM) capabilities

There are essentially four technology teams within Flipkart as an organization:

• Website development and maintenance

• Data Analytics/Business Analytics (Data mining and warehousing)

• ERP (CRM comes here)

• Platform Management (integrating sales force automation and managing forward/backward integration with other technologies)

CRM Framework

Operational CRM • Sales Force Automation is the application of technology to support regular sales functions and includes tools that are employed by users to perform administrative and other repetitive tasks.

• SFA transforms repetitive and routine manual processes to automated processes, which helps sales reps operate in a more efficient manner. For example, applications such as quarterly automated sales reports and calendaring tools are key elements of sales technology.

• The domain for SFA applications includes the attainment and storage of information. SFA tools assist sales reps in formulating a professional sales encounter. Sales reps can remain in contact with distant customers via e-mails and cell phones, thus reducing travel hours. They can also receive and manage orders from customers in an easy, timely fashion.

Analytical CRMCustomer knowledge discoveryFlipkart has an amazing recommendation system at place to make product discovery faster and seamless. The recommendation system used by Flip Kart predicts user’s intent and helps connect them with products they need or perhaps be interested in an automated manner.They help users in following ways :Help find: similar products. (Ex: recommendations to buy a apple phone when surfing nokia phones.)Help decide. (Ex: people who viewed this ended up buying.)Complete the purchase experience. (Ex: cases for phones, laptop bags etc.)Excite or wow. (Ex: New Offering etc.)Recommendation system= data + algorithms.

Formula:Recommendation Score = ( i * i ) / ( n1 * n2).Where,i = count of occurrences of items i1, i2 together.n1 = # of occurrences of the item i1 alone.n2 = # of occurrences of the item i2 alone. It uses collaborative and content based filtering methods to generate recommendations for users.

Customer Segmentation

1. Potential Customers (a.k.a. Prospects)• They have demonstrated interest in its products but they

are not yet ready to commit to a purchase

• A combination of strategic branding, targeted coupons and product education should work well to engage this type of customer

2. First-Time Buyers (a.k.a. One-time buyers)• These are customers who have only completed a

single purchase with Flipkart.• With this customer segment, its goal should be to

turn them into repeat buyers.

3. Repeat Customers• Shoppers who have made two or more separate

purchases. • These are customers who enjoyed its product enough

the first time to return and place another order• It must cherish these users as they may become brand

evangelists who are loyal and regularly refer friends to Flipkart

• It must respond quickly to customer service requests and experiment with ways to encourage them to place additional orders.

4. Active Repeat Customers (a.k.a. Loyal customers)• Customers who have placed multiple orders in a short

time frame• Most valuable buyers• To maintain their loyalty, it must consistently raise the

bar on customer service and product innovation• Also it should invite them to be a part of the brand-

growing process by asking their opinion

Customer Segmentation

6. At-Risk Repeat Customers• At-risk repeat customers are characterized as shoppers who

have made multiple purchases in the past but have let more time lapse since their last order than the average time all of its customers typically wait between orders

• It can incentivize them to make another purchase with a coupon, or ask them why they have not purchased from you in a while.

5. Inactive Repeat Customers (a.k.a. Idle, lapsed and latent customers)• It may lose touch with some of its most loyal customers i.e.

either their needs change, or its brand and product change

• Inactive customers are shoppers who have placed multiple orders before but they have not placed another order for more than three times the average time customers spend between orders.

Multichannel integrationFlipkart deals with customers and sellers across mobile, text, social media, app, voice call, website etc

CRM helps in the integration of all the channels at the back end and deliver a seamless customer experience

#Flipkartsucks trending

2014:Cancelled Orders fiasco

3rd party Channel integrators

Orderhive works with 40+ integrations which include marketplaces, e-commerce platforms, shipping providers, fulfillment companies, accounting systems, FTP servers, and tracking software.

Wallet Integration: mobile recharges, bill payment services and peer-to-peer money transfers

Eyeing Brick and MortarE-comm CAGR: 34%, Share of total retail sales: 0.4%After 5 years- Brick & Mortar- Still 80% (PWC report)

Contact Centre Service

Primary Research

Link for form : https://docs.google.com/spreadsheets/d/16Hj24F1_a6fq-PR5Ysq0Zn-VfOsv3BTB8j92EHGjNgo/edit?ts=5831f64c#gid=485345670

Primary Research

Measuring Impact• Through CRM initiatives, Flip kart has successfully garnered an audience strength of 9.6

million unique users every month growing at 431% annually.• Its inventory model and strong customer relationship management has made it the largest

book seller in both online and offline category in India.• Through its efficient e-crm implementation, Flip kart has website visits of 170 million• Total Number of Repeat customers have been 70% of net consumers.• The average order size has risen to Rs 850 from Rs.300 in the past, with bulk of sales

happening from the books category.• The current margin Flipkart gains from its sales has gone up in various categories:

• Books: 20%• Apparels: 30-40%• Electronics-6-8%

Measuring Impact• The outreach to online user has scaled up to 14.5%• We can assume 75% of the registered users(22 million) are active users

and hence the revised number should be: 15 million active users with 60 million shipments each year. Hence roughly 4 shipments per user per year. • The supply chain and distribution model has been majorly impacted by

technology integration with delivery of products reaching a milestone of 20 products per minute i.e. 1250 an hour and 30,000 items a day.• With increase in customer base and number of orders, the estimated %

return of goods has also gone up to 20-30%• No of employees has increased to approximately 5000

Conclusion

Customer Relationship Management helped Flipkart improving the

relationship with existing customers, finding new prospective customers,

and winning back former customers

With information centralized you can now

run targeted and personalized marketing & promotional campaigns

Enabled customer centric demand planning and scheduling across the

company. The company can now better forecast

the demand for their products and manage their inventory (sales, sourcing, manufacturing, etc.) better

After sales service is one of the most critical aspects of

a CRM. With all the necessary information

available on their fingertips, your customer representatives can now provide better after sales service to your customers