Micro Initiatives: An Effective Member Micro Initiatives: An Effective Member Relationship Management (MRM) Relationship Management (MRM) Strategy in Cooperatives in IndiaStrategy in Cooperatives in India

By

 Ms. Sudha K,

Department of Commerce,

Besant Women’s College, Mangalore

Karnataka, India.

IntroductionIntroduction Disregard to member centrality-Member Service

and Development of members is not given due emphasis.

Imitating the competition, preoccupied with the commercial success.

Perception of the people Replicating the corporate model-Setback All co-ops should be inward looking and geared

to member service &member devept.to achieve greatest good of greatest no. of its members

Emerging Business ContextEmerging Business Context

Sweeping Changes Cut throat competition Gradual withdrawal of State’s support Provider of safety net “Cooperative community to community

cooperative” Co-ops are at the heart of economic change. Move with the winds of change-focus on members

Strategy of the CompetitorsStrategy of the Competitors

Consumer Oriented marketing systemCustomisation,Customer relationship

management & satisfactionCo-ops-Responsive to the members needsAddressing the association needsCommitment to nurture membersMember relationship management

MRM - Its SignificanceMRM - Its Significance It is creating a culture in the organization where

members are valued and they trust their organization

Members are treated as members Winning members’ patronage through member-

focused management approach MRM should be viewed as a strategic tool and

members are provided with need fulfillment initiatives

Respond to both association and enterprise needs

MRM-Its SignificanceMRM-Its Significance

Every member is a revenue producing asset

Drives cooperative’s economic growthRegular interaction with members is

imperativeEnhance members’ sense of identificationIncrease the response rate or refers to other

customers

Micro Initiatives - Need and Micro Initiatives - Need and ImportanceImportance

Process of development should occur from below and not imposed from above or driven by external action

Participation of members should be pursued at all time, lest preoccupied in their own work

Local endeavour, networking within and outside,needed more in villages

Potentiality of primary co-op is essential for the effectiveness of the higher level co-op

Important element of transitional strategy

M.I as an effective MRM strategyM.I as an effective MRM strategy

M.I provides important link to the membersFill the generation gapBring return on members- Short term( profit

on purchases made) and Long term (in terms of loyalty of the members)

Helps in redesigning the strategies according to new areas of members interest.

Need Fulfillment Activities-A Need Fulfillment Activities-A MRM techniqueMRM technique

Are those that respond to the varying and demanding needs of the members, which are beyond their rudimentary commercial or conventional business activities.

Diversifying the business operation-from functional compartmentalization to Community cooperatives & all HRD interventions -If the members need them

Members identify the essence of cooperation and its outcome, attracts public allegiance, binds members and the management through the bondage of faith.

Need based initiatives should be integrated with the social, business and investment activities of the primary co-ops

Co-ops should show concern for the people and conscious of their needs and aspiration

The overall performance of the coop depends upon the extent to which members are utilized, developed and satisfied though are not B/S

Methodology UsedMethodology Used

Data are collected covering a period of 5 yrs from 1996-97 to 2000-01

Data collection- primary, secondary and field observation

Data analysis- descriptive and statistical inference scaling technique, chi-square, correlation, non-parametric statistics

Primary coops in 8 sectors in 5 different states in India- 37 office bearers,74 committee members, 185 members from 37 units

Profile of Need Fulfillment Profile of Need Fulfillment Initiatives in the surveyed Initiatives in the surveyed

societiessocietiesSectorwise,units in Dairy, PACs, Producer/

workers and consumer sectors have performed satisfactorily at varying degrees

Regionwise, units in Maharashtra, A.P and Karnataka are found more responsive.

Mulkanoor Coop Rural Bank & Marketing Society (A.P), Tattisar & Hulgol service coop society- multi purpose,budgetary provision- cradle to the grave-informal membership survey-Research on farming practices

Participation in the committeesRelationship oriented approach than the

task oriented approachAuditorium for the use of membersHealth and environment related

activities felicitation of best farmer membersCrop and horticultural exhibitions,

competitions on crop productionCooperative film show,educational

inputs through Cooperative Development Foundation(A.P)

Shetkari Sahakari sangh in Maharashtra-multifarious activities in 20 different areas

Grahak Peth and Warana bazar- member contact & motivational measures, consumer redressal, networking activities, training for youth

Bhagini Niveditha Sahakari Bank-entrepreneurship development activities for women members,schemes for women empowerment,exhibition etc.

Shree Tatyasaheb Kore Warana Sahakari sakhar karkhana-pro member policies,built an illustrious cooperative complex with social infrastructure - schools colleges, hospitals, gym, village library,coop dairy, bank, community centre & supermarket.

On the information front-Warana Wired village project-82 villages-bench marking in communication- farming know-how through internet

Training-field education, demonstration, seminar workshops, volleyball, basketball tournament

A.P.S.R.T.C employees thrift and credit coops: welfare schemes for their members for the health care, children education, employment for their handicapped children & retired members’ security scheme, computer training for the members

Punacha PACs-Senior members Day, games, picnics, building materials & gas, employment registration for the youth

Kasargod Beedi workers’ industrial co-op – juice, pickle, cottage industries,computer training,Ladies read newspapers,beedi rolling competition

Other instances: Kannur Town service co-op bank (Kerala),TSS(Karnataka), bardez bazar(Goa)- Pharmaceutical services

Kannur Town service co-op bank (Kerala)-consumer store and festival market facility

Tattisar group seva sahakari sangha-final rites assistance,interest free loan to sc/st members, plastic picking, family planning operation, farmers’ training, water shed development

Effect of the Initiatives on the Effect of the Initiatives on the OrganisationOrganisation

Organisation conducting need fulfilment initiatives have good exposure of members than those conducting negligible activities

Are much stronger than those not conducting significantly- in terms of membership, share capital and profit reflecting their overall strength

SuggestionsSuggestionsMRM- integral part of the business

strategy, budgetary provision for MRNeed based product mix-4Ps with

persons and pace, patronage refund Exposure to the Mgt, professionals

and employees-attitudinal changeSynergise the MRM culture with

resources, technology & organisation behaviour, MR cell,Govt support

Tattisar PACS

Warana Dairy

Warana Co-Op. Sugar Industry

Warana Sugar Factory

Bhagini Niveditha Co-Op Bank

APSRTC Employees Thrift Co-Op. Bank