Research Journal of Management

Vol. 6(2), 8-11, February (2017)

International Science Community Association

A study of customer relationship

2National Institute of Technical

AvailableReceived 7th October

Abstract

In Indian economy, Retail Sector is playing a significant role in growth of industries. The major contribution of retail sect

is towards employment generation and they are the

privatization is taking place across the globe. Unorganized retail sectors are facing great challenges to survive and sustain

in the market and even the organized retail in India is also fac

consists of different income groups from various segments like rural, semi

focuses upon the practices implemented by retail outlets. Retail outlets

customer retention management. Research shows that as customer preferences and choices are dynamic and changing

frequently. It helps the sector to understand the customer needs and how frequently they vis

retailers use the CRM software packages for understanding the customer needs and purchasing behavior. Through this, a

company can make a clear prediction of customer’s future outcomes.

Keywords: Retail outlets, CRM, Organized R

Introduction

In India, after agriculture sector retailing is providing 15 % to

20 % of employability and it contributes significantly in the

GDP. Organized retail sector has growth and high potential

creating new jobs. In India, retail sector has a significant role in

creating direct interaction with customers in the competitive

world through proper maintains of products, product display,

accessibility and assortment. According to the report of CII

Mckinsey retail sector contribute 10% of the GDP and near

about of 6% of total employment opportunities including

organized and unorganized labor work force

environment organized retail stores are characterized by large

formatted stores.

Retail sector is the backbone of India and it is called as “Nation

of Shopkeepers” with the 15 million outlets2

retail sector contribute 2% of the total retail sector and it is

increasing by about 5% since 2010. Indian economy contribut

11%-12% in GDP from retail sector3. The organized retail

market share was 8% in 2012.

CRM in Retailing: According to Levy and Weitz

Management is “A business Philosophy and set of strategies,

programs and systems that focuses on identifying a

loyalty with a retailer’s profitable customers”. Retailers can

generate their profit by creating a sound and healthy

relationships with customers4. The main objective is to maintain

the loyalty of the customers.

Management Sciences _____________________________________________

(2017)

Association

elationship management in retail outlets at Bhopal

India Monika Sharma

1* and Nishith Dubey

2

1Barkatullah University, Bhopal, India

National Institute of Technical Teacher Training and Research Bhopal, India

monika.sharma4545@gmail.com

Available online at: www.isca.in, www.isca.me October 2016, revised 1st February 2017, accepted 4th February 2017

In Indian economy, Retail Sector is playing a significant role in growth of industries. The major contribution of retail sect

is towards employment generation and they are the largest creators of employment opportunities as globalization and

privatization is taking place across the globe. Unorganized retail sectors are facing great challenges to survive and sustain

in the market and even the organized retail in India is also facing a tough competition from all round the world. Bhopal

consists of different income groups from various segments like rural, semi-rural, urban, upper middle and lower. This study

focuses upon the practices implemented by retail outlets. Retail outlets are implementing CRM practices for establishing the

customer retention management. Research shows that as customer preferences and choices are dynamic and changing

frequently. It helps the sector to understand the customer needs and how frequently they visit the retail outlets. Many

retailers use the CRM software packages for understanding the customer needs and purchasing behavior. Through this, a

company can make a clear prediction of customer’s future outcomes.

Retail outlets, CRM, Organized Retail and Customer Satisfaction.

In India, after agriculture sector retailing is providing 15 % to

20 % of employability and it contributes significantly in the

GDP. Organized retail sector has growth and high potential in

creating new jobs. In India, retail sector has a significant role in

creating direct interaction with customers in the competitive

world through proper maintains of products, product display,

accessibility and assortment. According to the report of CII-

Mckinsey retail sector contribute 10% of the GDP and near

about of 6% of total employment opportunities including

organized and unorganized labor work force1. In competitive

environment organized retail stores are characterized by large

Retail sector is the backbone of India and it is called as “Nation 2. Indian organized

retail sector contribute 2% of the total retail sector and it is

increasing by about 5% since 2010. Indian economy contributes

. The organized retail

According to Levy and Weitz Retailing

Management is “A business Philosophy and set of strategies,

programs and systems that focuses on identifying and building

loyalty with a retailer’s profitable customers”. Retailers can

generate their profit by creating a sound and healthy

. The main objective is to maintain

Source: Retail & Export News,

Figure-1: Customer Relationship Management Cycles

Customer relationship management is a process to establish the

customer behavior and purchase pattern. Many organized

retailers have been targeting to increase their market share

through various services and promotional activities. It helps the

retailer for increasing their sales revenue and profits. The

sequential activities are shown in Fig

four major components for iterative process of customers like

database, programs, strategies and target customers.

Major Retail Outlets in Bhopal:

faster rate in Bhopal city. There are different segments of

branded and organized outlets targeting the various income

groups of consumers from different segments like

____________ISSN 2319–1171

Res. J. Management Sci.

8

utlets at Bhopal,

In Indian economy, Retail Sector is playing a significant role in growth of industries. The major contribution of retail sector

largest creators of employment opportunities as globalization and

privatization is taking place across the globe. Unorganized retail sectors are facing great challenges to survive and sustain

ing a tough competition from all round the world. Bhopal

rural, urban, upper middle and lower. This study

are implementing CRM practices for establishing the

customer retention management. Research shows that as customer preferences and choices are dynamic and changing

it the retail outlets. Many

retailers use the CRM software packages for understanding the customer needs and purchasing behavior. Through this, a

Source: Retail & Export News, September 5, 2010

Customer Relationship Management Cycles

Customer relationship management is a process to establish the

customer behavior and purchase pattern. Many organized

retailers have been targeting to increase their market share

various services and promotional activities. It helps the

retailer for increasing their sales revenue and profits. The

sequential activities are shown in Figure-1 which includes the

four major components for iterative process of customers like

rograms, strategies and target customers.

: Retail sector is growing at a

faster rate in Bhopal city. There are different segments of

branded and organized outlets targeting the various income

nt segments like rural, semi-

Research Journal of Management Sciences _______________________

Vol. 6(2), 8-11, February (2017)

International Science Community Association

rural urban, upper, middle and lower income segments etc. The

detail of organized retail store in Bhopal city is as follows

Retail Outlets

Clothing and

Apparels

Shoppers Stop, Pantaloon , Westside,

Levis, Big Life, Vishal Mega Mart, V

mart, Big Baazar, Manyawar

Footwear Nike, Lotto, Puma, Catwalk, Liberty,

Adidas, Bata, Woodland, Reebok, etc

Food and

Grocery

Hypercity, Kabuliwala, Apoorti,

Priyadarshaini, V- Mart, Vishal Mega

Mart, Reliance Fresh etc

Watch &

Jewellery

World of Titan, Tommy Hilfigure,

Shopper’s Stop, Paris, Tanishq, Alankar,

Agarwal Jewelers, Orra, Punjab Jewelers,

PC Jewelers etc

Durables Lotus, Sony world, Tarang , LG, Reliance

digital, Hypercity , etc

Objectives of the Study: The research was carried out with

following objectives: i. Analyze CRM practices followed by the

retail stores. ii. Evaluate the various CRM techniques adopted

by organized retail firms and stores. iii. Examine the benefits of

CRM to the retailers and customers.

Review of Literature: Parikh analyzed that organized retail

sector develops in India; retail outlets will have to emerge the

quality of their services extensively in order to struggle

effectively in the international market place.

It is, thus very essential to know how customers appraise service

quality and to measure and improve it5. Jain and Jain studied

CRM practices of hotels in central India to measure the

effectiveness against various factors like: recognition, customer

orientation, reliability, relationship orientation and gestures

Raab in Customer relationship management: a global

perspective proposed a research work for the comparison of

customer relationship management principles exercised by other

multinational retailers in a global marketplace

Methodology

The study on CRM in retail outlets was conducted through

structured questionnaire and interviews methods for collecting

data. The sample size used was 10 organized retail outlets.

Results and discussion

Income Group of Customer’s of Retail Outlets in Bhopal: Spread of retail stores customers by income group at Bhopal is

as Very high income group 10 percent, High income 32 percent,

Middle income group 43 percent and Low income group 15

percent. Thus retail stores should concentrate more on Middle

income group and High income group as they comprise of 75

percent of all customers.

_________________________________________________________

Association

rural urban, upper, middle and lower income segments etc. The

detail of organized retail store in Bhopal city is as follows --

Shoppers Stop, Pantaloon , Westside,

Mega Mart, V –

mart, Big Baazar, Manyawar etc

Nike, Lotto, Puma, Catwalk, Liberty,

Adidas, Bata, Woodland, Reebok, etc

Hypercity, Kabuliwala, Apoorti,

Mart, Vishal Mega

World of Titan, Tommy Hilfigure,

Shopper’s Stop, Paris, Tanishq, Alankar,

Agarwal Jewelers, Orra, Punjab Jewelers,

Lotus, Sony world, Tarang , LG, Reliance

The research was carried out with

Analyze CRM practices followed by the

retail stores. ii. Evaluate the various CRM techniques adopted

by organized retail firms and stores. iii. Examine the benefits of

Parikh analyzed that organized retail

sector develops in India; retail outlets will have to emerge the

quality of their services extensively in order to struggle

y essential to know how customers appraise service

. Jain and Jain studied

CRM practices of hotels in central India to measure the

effectiveness against various factors like: recognition, customer

ity, relationship orientation and gestures6.

Raab in Customer relationship management: a global

perspective proposed a research work for the comparison of

customer relationship management principles exercised by other

rketplace7.

The study on CRM in retail outlets was conducted through

interviews methods for collecting

data. The sample size used was 10 organized retail outlets.

Income Group of Customer’s of Retail Outlets in Bhopal: Spread of retail stores customers by income group at Bhopal is

as Very high income group 10 percent, High income 32 percent,

Middle income group 43 percent and Low income group 15

stores should concentrate more on Middle

income group and High income group as they comprise of 75

Figure-2: Percentage Target Income Groups

Retail Stores Collecting Customer’s Database:

shows effective working of retailers. Sixty percent of the

organized outlets collect customer information for their

database. Customer database helps the retailers to identify

purchases of customers. For implementation of CRM the other

forty percent should also start building their database.

Figure: 3 Percentages of retail outlets

Tools /Techniques Used for CRM:

retailers at Bhopal deploy E–services. Knowledge management

is used by 30 percent which is most important for CRM

implementation. Only 10 percent of the retailers use multi

channel management. Thus nearly seventy percent of the

retailers need to use knowledge management for effective

implementation of CRM.

Figure: 4 Tools/Techniques used For CRM

10%

43%

15%

Very High High

0%

10%

10%

30%

E-Commerce

Self Services

Knowledge Management

40%

YES NO

________________________ISSN 2319–1171

Res. J. Management Sci.

9

Percentage Target Income Groups

Retail Stores Collecting Customer’s Database: This data

shows effective working of retailers. Sixty percent of the

organized outlets collect customer information for their

database. Customer database helps the retailers to identify

purchases of customers. For implementation of CRM the other

ent should also start building their database.

utlets collecting customer data.

Tools /Techniques Used for CRM: 50 percent of the organized

services. Knowledge management

30 percent which is most important for CRM

implementation. Only 10 percent of the retailers use multi

channel management. Thus nearly seventy percent of the

retailers need to use knowledge management for effective

Tools/Techniques used For CRM

10%

32%

Medium Low

0%

50%

E-services

Multichannel Management

60%

NO

Research Journal of Management Sciences _______________________

Vol. 6(2), 8-11, February (2017)

International Science Community Association

Various Time Frame Schemes Offered by Retailers:

one percent use special offer schemes like free gifts, coupons

etc., to attract customers. This is done twice in a year (clearness

sale July & January). Free product sampling is offered by

nineteen percent, Gifts by twelve percent.

Figure: 5 Special Schemes Offer

Frequency of Tracking Customers Satisfaction:

percent of retailers interviewed believed that the frequency

tracking customer satisfaction is done daily whereas some

retailers in organized retail do it monthly and very few do it

Quarterly.

Figure-6: Tracking Customers Satisfaction

Methods of Tracking Customer Satisfaction:

most used method of tracking the customers satisfaction is

follow up through telephone. Retailers also track customers by

making them fill questionnaire, by keeping suggestion boxes

and other innovative methods.

31%

19%12%

13%

15%

10%

Heavy discount Free products

Gifts Flowers and cards

Others All

10%

10%

0%

10%

20%

Questionnaire sent through mail Follow -up telephone calls

Sending SMS Outside firm Hired to track satisfaction

Suggestion boxes Others

_________________________________________________________

Association

Various Time Frame Schemes Offered by Retailers: Thirty

one percent use special offer schemes like free gifts, coupons

etc., to attract customers. This is done twice in a year (clearness

January). Free product sampling is offered by

Special Schemes Offer

Frequency of Tracking Customers Satisfaction: About 60

percent of retailers interviewed believed that the frequency of

tracking customer satisfaction is done daily whereas some

retailers in organized retail do it monthly and very few do it

Customers Satisfaction

Methods of Tracking Customer Satisfaction: It is evident that

most used method of tracking the customers satisfaction is

follow up through telephone. Retailers also track customers by

making them fill questionnaire, by keeping suggestion boxes

Figure-7: Methods of Tracking Customer Satisfaction.

Data Required for CRM Implementation:

views of respondents regarding data required for the CRM

implementation in the retail outlets main source was interaction

with customers, 55 percent. The customer’s record and customer

experience are the next two sources of data for CRM

implementation.

Figure-8: Data required for CRM

Methods of Collecting Customer’s Data:

stores collect the information through entry form feedba

forms thirty percent through feedback forms and twenty eight

retailer uses bill records.

Benefits through CRM: About thirty one percent of the total

retailer believed that most important benefit of CRM to the

retailers is that there is an increase in

followed by repeat purchase and increase in profit. The other

benefits are that new customers are attracted and enhanced

service quality. Their perceptions may not be correct as CRM

largely benefits in regards to customer loyalty.

55%

5%15%

Customer record

Interaction with customers

Measurement of service quality

Customer experience

31%

19%

Free products

Flowers and cards

50%

up telephone calls

Outside firm Hired to track satisfaction

55%

5%

15%

Customer Record

Interaction with customers

Measurement of Service Quality

Customer Experience

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Res. J. Management Sci.

10

Methods of Tracking Customer Satisfaction.

Data Required for CRM Implementation: According to the

views of respondents regarding data required for the CRM

implementation in the retail outlets main source was interaction

t. The customer’s record and customer

experience are the next two sources of data for CRM

Data required for CRM

Methods of Collecting Customer’s Data: Thirty two percent

stores collect the information through entry form feedback

forms thirty percent through feedback forms and twenty eight

About thirty one percent of the total

retailer believed that most important benefit of CRM to the

retailers is that there is an increase in the number of customers

followed by repeat purchase and increase in profit. The other

benefits are that new customers are attracted and enhanced

service quality. Their perceptions may not be correct as CRM

largely benefits in regards to customer loyalty.

25%

Interaction with customers

Measurement of service quality

Customer experience

25%

Interaction with customers

Measurement of Service Quality

Customer Experience

Research Journal of Management Sciences _______________________

Vol. 6(2), 8-11, February (2017)

International Science Community Association

Figure: 9 Ways of Collecting Data

Figure-10: Benefits of CRM

Basis for Evaluating CRM: Most of retailers in organized

retail at Bhopal believed that the most common basis of

evaluating the CRM is by counting the number of customer

complaints, by looking at the market share and by seeing the

reduction in expenses. Some other retailers also took as revenue,

retention and new customers as the basis for evaluating the

CRM.

32%

30%

28%

10%

Entry forms Feedback forms

Bills records Others

31%

24%22%

10%13%

Increase in number of customersRepeated customerIncrease in profit Enchancing service qualityAttracting new customers

12%

20%

20%12%

23%

13%

Revenue Expenses

Market share New customers

Customer complaint Retention

_________________________________________________________

Association

Ways of Collecting Data

Benefits of CRM

Most of retailers in organized

retail at Bhopal believed that the most common basis of

evaluating the CRM is by counting the number of customer

ng at the market share and by seeing the

reduction in expenses. Some other retailers also took as revenue,

retention and new customers as the basis for evaluating the

Figure-11: Basis for Evaluating CRM

Conclusion

The study helps us to indentify the CRM practices which are

being followed by the organized retail stores at Bhopal. Through

CRM tools and techniques retailers and customers are benefited

which helps in future relationship. The customers are attracted

and thereby the retailers increase their service quality. This

study can be used by researcher for identifying the taste and

preferences of the customers. It will help in understanding

reasons of frequent store visit of customers to retail stores. The

study can be used by the consultants for making various training

programs and CRM software for the organized retail stores.

References

1. Mathur Meera and Samma Sumbul (2010).

Customer Relationship Management Practices in Selected

Organised Retail Stores in Udaipur City

Review - A Quarterly Refereed Journal

2. Gupta Uravashi (2012). Impact of Organized Retail on

Unorganized Sectors: A Study in Jammu Region.

International Journal of Research in Commerce, IT &

Management, 2(1), 112-115.

3. Paul Green E., Mahajan Vijay, Stephen Goldberg M. and

Kedia Pradeep K. (1983). A Decision Support System for

Developing Retail Promotional Strategy.

Retailing.59(3), 116-143.

4. Anupama C.R. and Prapurna Leela (2010). Customer

Relationship Management in India Retail.

Management Digest, 8, 67-76.

5. Parikh Darshan (2006). Measuring Retail Service Quality:

An Empirical Assessment of the Instrument.

45-56.

6. Jain Rajnish and Jain Sangeeta (2006). Towards Relational

Exchange in Service Marketing: Insights from Hospitality

Industry. Journal of Services Research

7. Raab G., Ajami R.A., Gargeya V. and Goddard G.J. (2012).

Customer Relationship Management: A Global Perspective.

Gower Publishing, 1-199.

Feedback forms

Increase in number of customers

20%

Expenses

New customers

Retention

________________________ISSN 2319–1171

Res. J. Management Sci.

11

Basis for Evaluating CRM

The study helps us to indentify the CRM practices which are

being followed by the organized retail stores at Bhopal. Through

techniques retailers and customers are benefited

which helps in future relationship. The customers are attracted

thereby the retailers increase their service quality. This

study can be used by researcher for identifying the taste and

preferences of the customers. It will help in understanding

reasons of frequent store visit of customers to retail stores. The

n be used by the consultants for making various training

programs and CRM software for the organized retail stores.

Mathur Meera and Samma Sumbul (2010). A Study on

Customer Relationship Management Practices in Selected

in Udaipur City. Pacific Business

A Quarterly Refereed Journal, 1, 16-29.

Gupta Uravashi (2012). Impact of Organized Retail on

Unorganized Sectors: A Study in Jammu Region.

International Journal of Research in Commerce, IT &

Paul Green E., Mahajan Vijay, Stephen Goldberg M. and

Kedia Pradeep K. (1983). A Decision Support System for

Developing Retail Promotional Strategy. Journal of

Anupama C.R. and Prapurna Leela (2010). Customer

agement in India Retail. SRM-

76.

Parikh Darshan (2006). Measuring Retail Service Quality:

An Empirical Assessment of the Instrument. Vikalpa, 31(2),

Jain Rajnish and Jain Sangeeta (2006). Towards Relational

ice Marketing: Insights from Hospitality

Journal of Services Research, 5(2), 139-150.

Raab G., Ajami R.A., Gargeya V. and Goddard G.J. (2012).

Customer Relationship Management: A Global Perspective.