CRM STRATEGY

Reliance Retail Reliance Industries Ltd.

CRM CDIT

Reliance Retail 2

strategic thrusts

Gain First Mover Advantage first pan-India CDIT multi-brand retailer

Establish distinct brand identity focused brand build

Differentiated Value Proposition

Best Value / Price consumers are value conscious & seek best deals

Assortment Width & Depth consumers seek choice.

Service

consumers seek convenience. single

Reliance Retail 3

CRM Vision

Create superior customer value through CRM

to deliver high customer satisfaction & enable higher customer lifetime value

satisfied customers for life

Reliance Retail 4

CRM End Goal

more customers to buy more of our products, more often, more profitably over time with respect to our competitors

Reliance Retail 5

CRM Cycle

CRM Process Cycle

CRM

Strategic Guidelines

Awareness

& familiarity

Consideration& purchase

Preference & recommend

Community

Feel Customer Satisfaction

(including usage

& learning’s)

(including re-purchase)

Reliance Retail 6

CRM Marketing Strategy Fit

Customer Experience Programs

CRM Program

Pre-Purchase Post

Purchase Out-of-Store In-Store

Pre-Purchase

Marketing Promotions Programs

Interest-Group Prog.

awareness

& familiarity

consideration

& first visit to store

selection

& first purchase

usage

& learning's

preference

& recommends

In-Store

Purchase

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at store level > at city level > state level > national level

Reliance Retail 8

CRM Strategic Thrusts

Ride the RR Rewards Club

Early Redemption

Frequent Redemptions

Exciting Rewards

to comprehend the program to accumulate points on claiming the reward

Convenient Assurance Simple

greater levels of expenditure,

earn proportionately greater rewards

(convex reward structure)

Multi-tiered loyalty program

Reliance Retail 9

CRM Rewards Program

Reliance Retail 10

CRM Rewards Program Introduced

Excitement Quotient

Ride the RR Rewards Club

Early Redemption

Frequent Redemptions

Exciting Rewards

to comprehend the program to accumulate points on claiming the reward

Convenient Assurance Simple

greater levels of expenditure,

earn proportionately greater rewards

(convex reward structure)

Multi-tiered loyalty program

Reliance Retail 11

CRM Rewards Program Construct

Enrolment

Criterion

Relationship

Segmentation

Approach

Relationship

Segment

Proposition

Relationship

Segment

Actions

Redemption

Rationale

Customer

Relationship

Index

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CRM Relationship Indices

Recency Frequency Profitability Longevity

Customer Relationship Index Value

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CRM Relationship Indices Rationale

Recency

Frequency

Profitability

Longevity

Customer Relationship Index

Value

The more recently the customer transacts (last purchase),

signals positive disposition towards RR

The more longer the customer franchises (period between

last purchase - first purchase), signals commitment to RR

The more no of purchase visits customer makes between the

last & first purchase point), signals expectation from RR,

of need-range fulfillment (depend on RR)

The more customer transacts (all purchase),

signals conviction on value proposition

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CRM “Customer Relationship Index”

Recency Frequency Profitability Longevity

Month 8

10months back

past12 months

10

12

Month 2

4months back

past12 months

8

12

First

Purchase

Last

Purchase

No of

Purchase Visits between first & last purchase points

Cumulative

Purchase Value

7000 + 12000.+ 1000

?( + feedbacks)

no of purchase visits

once in 2months

1

6

0.83 0.67

20,000

0.17

0.67 +0.83+0.17=1.67 x100= 167 / 300 = CRI = 56%

valuing intangible tangible

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CRM Relationship Segmentation Approach C

ust

om

er V

alu

e

True Believers

Lo

w C

V

Mid

CV

H

igh

CV

Friends

Acquaintance Acquaintance

True Friends

Believers Penguins

Butterflies

Strangers

CVI 5,000+

CVI 10,000+

12

mo

nth

s+

. M

in 2

Pu

rcha

se

Occa

sio

ns

24

mo

nth

s+

, M

in 3

Pu

rcha

se

Occa

sio

ns

CRI

< 25%

CRI

25% - 50%

CRI

50% +

High CRI Mid - CRI Low CRI

Customer Relation Index

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ust

om

er V

alu

e

True Believers

Lo

w C

V

Mid

CV

H

igh

CV

Friends


True Friends

Believers Penguins

Butterflies

Strangers

CVI 5,000+

CVI 10,000+

12

mo

nth

s+

. M

in 2

Pu

rcha

se

Occa

sio

ns

24

mo

nth

s+

, M

in 3

Pu

rcha

se

Occa

sio

ns

Rs10,000+

Cumulative Purchase Value / Spends

Rs5001 – Rs10000 Cumulative Purchase Value / Spends

Less than Rs5000 Cumulative Purchase Value / Spends



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ust

om

er V

alu

e

True Believers


Lo

w C

V

Mid

CV

H

igh

CV


Friends

Trusted

Acquaintance

Acquaintance

True Friends

Believers Penguins

Butterflies

Strangers

Rs5,000+

Rs10,000+

25

% +

50

% +

Reliance Retail 18


ust

om

er V

alu

e

True Believers


Lo

w C

V

Mid

CV

H

igh

CV


Friends

Trusted

Acquaintance

Acquaintance

True Friends

Believers Penguins

Butterflies

Strangers

Rs5,000+

Rs10,000+

25

% +

50

% +

+++

+++

+++ +++

Reliance Retail 19

CRM Segment Propositions C

ust

om

er W

ort

h In

dex

True Believers

Lo

w C

VI

Mid

CV

I H

igh

CV

I

Friends


True Friends

Believers Penguins

Butterflies

Strangers

CVI 5,000+

CVI 10,000+

12

mo

nth

s+

. M

in 2

Pu

rcha

se

Occa

sio

ns

24

mo

nth

s+

, M

in 3

Pu

rcha

se

Occa

sio

ns



Reliance Retail 20

CRM Consumer Profile W

illin

gness t

o s

pend o

n t

echnolo

gy

Attitude/ Involvement towards technology/ home-electronics

best tech

latest tech

best exp seekers

will pay high premiums

right fit (tech)

good exp

will pay if believes fit

value-cons on tech

Right exp

right fit right tech

latest tech

right exp

will stretch to pay

Buzz, Berry, Ray, Jill

affluency

right fit (tech)

no irritants in exp

Base level tech (functional), no irritants in exp

Reliance Retail 21

CRM Direct Mail Triggers

Purchase

Intent

Purchase

Home Delivery

Installation

Home Demo

Complaint

Resolve

Special

Occasion

Replace

Repair

Service Exchange

Home Solution

Product Catalog

Offers

Home mapping

Getting-to-Know

Cross-Sell

Service Solutions

Feedback

Apology

Satisfaction Feedback

Offers Win-back

Satisfaction

Feedback

Wish Cards

Offers

Customized

Offers & Events

New

Launches

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CRM Reward Points : Earn Rationale

point Rs100 for every

spend 1 =

you get

rupee 1 = worth

point Rs100 for every

spend 1 =

you get

Option 1

point

for varying

spend 1 = you get

X

Option 2

Option 3

= rupee

worth

X =

X

rupee

worth

Recommended

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CRM DB Communication Agency

1 Lufthansa, Microsoft, Vodafone

2 Shopper Stop, Trent, Westside

Colgate, J&J, HLL, P&G

Philips, Kodak, Polaroid

?

3

Team Creative Client & Work Cost Capabilities Approach

15% 20% 5% 10% 25% 25%

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CRM Creative Concepts

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CRM Technology Enabler

MySAP-CRM

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CRM MySAPCRM

Supports customer-related processes from end to end - all customer-related tasks across departments integrating invoicing, shipping, etc.

Provides customer intelligence across the enterprise

- customer data for faster and better decision making

Delivers immediate value - Enables you to address strategic priorities

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CRM MySAPCRM

Reliance Retail 28

CRM MySAPCRM

do we need : enterprise portal ?

do we need : telephony & email ?

do we need : handheld ?

do we need : internet capability

scope, benefits, time, cost

Reliance Retail 29

CRM MySAPCRM

what do we need : at the least ?

back-end front-end

SAP Netweaver Platform

- AB ABAP

- AS Java

SAP GUI for Windows 6.40

Compilation 4 (with BI)

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CRM MySAPCRM Example

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CRM MySAPCRM

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CRM MySAPCRM identifying biz target gaps

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CRM MySAPCRM identifying gap period

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CRM MySAPCRM identifying target group

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CRM MySAPCRM identifying target group

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CRM MySAPCRM target group

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CRM MySAPCRM builds campaign

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CRM MySAPCRM campaign date

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CRM MySAPCRM campaign response leads

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CRM MySAPCRM open leads to chase (as hot)

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CRM MySAPCRM customer to contact

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CRM MySAPCRM Final campaign effectiveness = 80%

Reliance Retail 43

CRM Customer Database Build

lead generation preferential treatment

Kiosk

Smart Card Handouts

customer history

My SAP CRM

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CRM Action

transaction value > Rs10,000

Call within 2 days of purchase

- patronage appreciation

- experience satisfaction

- addressing any info gaps DM (e) within 15 days of purchase

- usage

- cross sell

- rewards offer

- suggestion feedback

- events/promo’s mailers M3 , M6, M9, M12

Rs 100 ( Investment for Relationship Build per Contact )

CRM STRATEGY

Business

Transcript of CRM STRATEGY