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CRM Final Project Report

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IILM-CMS MBA (2010-12) Customer Satisfaction & Customer Relationship Management Submitted to: - Submitted by:- Mr. Pawan Verma Subrat Choudhury
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Page 1: CRM Final Project Report

IILM-CMS

MBA (2010-12)

Customer Satisfaction

&

Customer Relationship Management

Submitted to: - Submitted by:-

Mr. Pawan Verma Subrat Choudhury

Page 2: CRM Final Project Report

INDUSTRY COMPANY CRM PROJECT OUTLINE

Natural Gas GAIL India Limited

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person, firm to firm and product/services to product/services.

With the objective of achieving greater customer satisfaction in every stream of its business, public sector gas major GAIL (INDIA) LTD. has launched an aggressive quality management involving its grass root employees. GAIL has initiated a series of pilot projects whereby it motivates its employees to take a small but important problem and wield all quality management tools learnt by them to develop a solution.

Customer Satisfaction Customer Satisfaction

Dimensions Online Customer Satisfaction

Indexes

Customer Satisfaction Index Customer satisfaction Index aims to translate the customers feedback to improve operational performance, product and service quality.

Customer Relationship Management Key CRM Principles Objectives of CRM Advantages of CRM Tools for CRM

GAIL CRM SYSTEM

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CRM in B2B

CROSS INDUSTRY CRM BEST PRACTICES

CRM FORMATION PROCESS IN THE PERSEPECTIVE CONTEXT OF GAIL

CRM SALES PROCESS IN GAIL

GAIL BUSINESS VALUE

RECCOMENDATIONS

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EXECUTIVE SUMMARY

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person, firm to firm and product/services to product/services.

With the objective of achieving greater customer satisfaction in every stream of its business, public sector gas major GAIL (INDIA) LTD. has launched an aggressive quality management involving its grass root employees. GAIL has initiated a series of pilot projects whereby it motivates its employees to take a small but important problem and wield all quality management tools learnt by them to develop a solution.

The framework which has been put in place includes benchmarking, daily management plan, and customer on-line for capturing customer feedback on on-going basis and monitoring Customer Satisfaction Index (CSI). In addition to this, GAIL’s Customer Relationship Management (CRM) also plays a significant role. It is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.

The company motto is to provide customer satisfaction. The success of customer focus depends on the employees’ involvement and their extensive knowledge of quality tool.

The objective of the project is to understand better the customer satisfaction and customer relationship management with special consideration to GAIL.

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OBJECTIVES

To understand and analyze better the Customer Satisfaction with special consideration to GAIL.

To understand the Customer Relationship Management with special consideration to GAIL.

APPROACH & METHODOLOGY

The analysis is based on the study of the existing customer satisfaction and customer relationship management practices at GAIL.

Collection of primary data /information regarding the topic in the form of interview.

Collection of secondary data from reliable internet sites, journals, survey reports and latest trends in gas marketing.

Reaching out to GAIL’s branch offices like GTPC, GTI to collect data about GAIL’s current CRM trends.

Studying relevant official GAIL documents to understand the organizational functioning.

Page 6: CRM Final Project Report

INTRODUCTION

ABOUT GAIL (INDIA) LIMITED

GAIL (INDIA) LIMITED is the India’s flagship Natural Gas Company, integrating all aspects of the Natural Gas value chain (including Exploration & Production, Processing, Transmission, Distribution and Marketing) and its related services. In the past few years GAIL (INDIA) LIMITED has expanded its business to gas processing for fractionating LPG, Propane, SBP solvent and Pentane; transmission of liquefied petroleum gas (LPG); petrochemicals like HDPE and LLDPE; leasing bandwidth in Telecommunications. The company has extended its presence in power, LNG re-gasification, city gas distribution and Exploration and Production through equity and joint venture participation.

Today, GAIL’s Business Portfolio includes:

6,700 km of Natural Gas high pressure trunk pipeline with a capacity to carry 148 MMSCMD of natural gas across the country.

7 LPG Gas Processing units to produce 1.2 MMTPA of LPG and other liquid hydrocarbons.

North India’s only gas based integrated petrochemical complex at Pata with a capacity of producing 4, 10,000 TPA polymers.

1,922 km of LPG Transmission pipeline network with a capacity to transport 3.8 MMTPA of LPG.

27 oil and gas Exploration blocks and 3 coal bed methane blocks. 13,000 km of OFC network offering highly dependable bandwidth for telecom

service providers. Joint venture companies in Delhi, Mumbai, Hyderabad, Kanpur, Agra, Lucknow,

Bhopal, Agartala, and Pune for supplying Piped Natural Gas (PNG) to households and commercial users, and Compressed Natural Gas (CNG) to the transport sector.

Participating stake in the Dahej LNG Terminal and the upcoming Kochi LNG Terminal in Kerala.

GAIL has been entrusted with the responsibility of reviving the LNG terminal at Dabhol as well as sourcing LNG.

Established presence in the CNG and city gas sectors in Egypt through equity participation in three Egyptian companies: Fayum Gas Company SAE, Shell CNG SAE and National Gas Company SAE.

Stake in China Gas Holding to explore opportunities in the CNG sector in mainland china.

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GAIL SNAPSHOT:-

Incorporated - 16th August 1984

Turnover (2007-08) - 18,008 crore

Net Profit - 2601 crore

Employees - 3480

Registered office - 16, Bhikaji Cama Place, R.K. Puram, New Delhi

Market Share - 78% market share in natural gas transmission

70% market share in natural gas marketing

VISION

Be the leading company in Natural Gas and Beyond, with Global Focus, Committed to customer care, Value creation for all stakeholders and Environmental responsibility.

MISSION

To accelerate and optimize the effective and economic use of Natural Gas and its fractions to the benefit of national economy.

STRATEGY

The company aims to further expand its core business of Natural Gas Transmission and Marketing, to capture larger share of the growing market. The company wishes to move upstream to secure gas supplies for the core transmission business. Additionally, investment in petrochemicals and city gas distribution are being planned to enhance margins and increase sources of revenue. Further, the company is exploring and investing in international opportunities with a strategic rationale of gaining international presence.

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GAIL’s Customer Satisfaction Index

Customer satisfaction Index aims to translate the customers feedback to improve operational performance, product and service quality. For the purpose of calculating CSI, GAIL’s activities have been divided into following five business segments:

(i) Natural gas (ii) Petrochemicals(iii) Liquid hydrocarbons(iv) LPG Transmission(v) GAILTEL

CSI feedback form has been developed for each business segments product wise. Feedback form is in the form of questionnaires and is released through quarterly campaigns. Customers fill in the feedback form online through internet access.

Average quarterly CSI of each Business area mentioned is calculated across GAIL. Weighted Average is the calculated based on the percentage contribution of each Business area to GAIL’s overall turnover. This weighted average is reported quarterly as GAIL’s over all CSI.

For the past five years the company has been winning the ‘Excellent Performance Award’ from the Indian Government which also raises the standard of the company in the eyes of its customers.

Page 9: CRM Final Project Report

Customer Relationship Management (CRM)

Customer Relationship Management is a broadly recognized, widely-implemented strategy for managing and nurturing a company’s interactions with clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes—principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Once simply a label for a category of software tools, today, it generally denotes a company-wide business strategy embracing all client-facing departments and even beyond. When an implementation is effective, people, processes, and technology work in synergy to increase profitability, and reduce operational costs.

GAIL Key CRM principles

The key principles of CRM are as follows:

Differentiating Offerings

Low value customer requiring high value customer offerings

Low value customer with potential to become high value in near future

High value customer requiring high value service

High value customer requiring low value service

Keeping Existing Customers

Grading customers from very satisfied to very disappoint should help the

organization in improving its customer satisfaction levels and scores. As the

satisfaction level for each customer improves so shall the customer retention with

the organization.

Maximizing Life time value

Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. Thus the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances.

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Increase Loyalty

Loyal customers are more profitable. Any company will like its mindshare status to

improve from being a suspect to being an advocate. Company has to invest in terms

of its product and service offerings to its customers. It has to innovate and meet the

very needs of its clients/ customers so that they remain as advocates on the loyalty

curve. Referral sales invariably are low cost high margin sales.

Objective of CRM

The objective of Customer Relationship Management is as follows:

CRM aims at integrating all business strategies that places the customer at the centre of a business consciousness.

Aligning of organization towards customers.

Integrating your customer touch points.

Knowing and understanding your customers and potential customers.

Establishing and managing relationships with customers.

ADVANTAGES OF CRM

Provide better CUSTOMER service.

Increase CUSTOMER revenues.

Increase CUSTOMER Lifecycle Value.

Discover new CUSTOMERS.

Cross Sell/Up Sell products more effectively.

Simplify marketing and sales processes.

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GAIL CRM SYSTEM

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Tools for CRM

Customer database

A good customer information system should consist of a regular flow of information,

systematic collection of information that is properly evaluated and compared against

different points in time, and it has sufficient depth to understand the customer and

accurately anticipate their behavioral patterns in future. The customer database helps

the company to plan, implement, and monitor customer contact. Customer

relationships are increasingly sustained by information systems. Companies are

increasingly adding data from a variety of sources to their databases. Customer data

strategy should focus on processes to manage customer acquisition, retention, and

development.

Systems Integration

While CRM solutions are front office automation solutions, ERP is back office

automation solution. An ERP helps in automating business functions of production,

finance, inventory, order fulfillment and human resource giving an integrated view of

business, where as CRM automates the relationship with customer covering contact and

opportunity management , marketing and product knowledge, sales force management,

sales forecasting, customer order processing and fulfillment, delivery, installation, pre-

sale and post-sale services and complaint handling by providing an integrated view of

the customer. It is necessary that the two systems integrate with each other and

complement information as well as business workflow. Therefore, CRM and ERP are

complementary. This integration of CRM with ERP helps companies to provide faster

customer service through an enabled network, which can direct all customer queries

and issues through appropriate channels to the right place for speedy resolution. This

Page 13: CRM Final Project Report

will help the company in tracking and correcting the product problems reported by

customers by feeding this information into the R&D operations via ERP.

e-CRM

e-CRM Electronic CRM concerns all forms of managing relationships with customers making use of Information Technology (IT).

The Essence of CRM

The exact meaning of CRM is still subject of heavy discussions. However, the overall goal can be seen as effectively managing differentiated relationships with all customers and communicating with them on an individual basis. Underlying thought is that companies realize that they can supercharge profits by acknowledging that different groups of customers vary widely in their behavior, desires, and responsiveness to marketing.

e-CRM

As the internet is becoming more and more important in business life, many companies consider it as an opportunity to reduce customer-service costs, tighten customer relationships and most important, further personalize marketing messages and enable mass customization. Together with the creation of Sales Force Automation (SFA), where electronic methods were used to gather data and analyze customer information, the trend of the upcoming Internet can be seen as the foundation of what we know as eCRM today. We can define eCRM as activities to manage customer relationships by using the Internet, web browsers or other electronic touch points. The challenge hereby is to offer communication and information on the right topic, in the right amount, and at the right time that fits the customer’s specific needs.

Channels, through which companies can communicate with its customers, are growing by the day, and as a result, getting their time and attention has turned into a major challenge. One of the reasons eCRM is so popular nowadays is that digital channels can create unique and positive experiences – not just transactions – for customers. An extreme, but ever growing in popularity, example of the creation of experiences in order to establish customer service is the use of Virtual Worlds, such as Second Life. Through this so-called vCRM, companies are able to create synergies between virtual and physical channels and reaching a very wide consumer base. However, given the newness of the technology, most companies are still struggling to identify effective entries in Virtual Worlds. Its highly interactive character, which allows companies to respond directly to any customer’s requests or problems, is another feature of eCRM that helps companies establish and sustain long-term customer relationships.

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CRM in B2B

Managing Buyer-Seller Relationships

Buyers and sellers craft different types of relationships in response to market conditions and the characteristics of the purchase situation. To develop specific relationship marketing strategies for a particular customer, the business marketer must understand that some customers elect a collaborative relationship, whereas others prefer a more Distant or Transactional Relationship.

Transactional Exchange

Customers are more likely to prefer a transactional relationship when a competitive supply market features many alternatives, the purchase decision is not complex, and the supply market is stable. This profile fits some buyers of office supplies, commodity chemicals, and shipping services. In turn, customers emphasize a transactional orientation when they view the purchase as less important to the organization’s objectives. Such relationships are characterized by lower levels of information exchange and are less likely to involve operational linkages between the buying and selling firms.

Collaborative Exchange

Buying firms prefer a more collaborative relationship when alternatives are few, the market is dynamic (for example, rapidly changing technology), and the complexity of the purchase is high. In particular, buyers seek close relationships with suppliers when they deem the purchase important and strategically significant. This behavior it’s some purchasers of manufacturing equipment, enterprise software, or critical component parts. Indeed, say Cannon and Perrault, the closest partnerships ...arise both when the purchase is important and when there is a need from the customer ’s perspective to overcome procurement obstacles that result from fewer supply alternatives and more purchase uncertainty . Moreover, the relationships that arise for important purchases are more likely to involve operational linkages and high levels of information exchange. Switching costs are especially important to collaborative customers.

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Switching Costs

In considering possible changes from one selling firm to another, organizational buyers consider two switching costs: investments and risk of exposure. First, organizational buyers invest in their relationships with suppliers in many ways. As Barbara Bund Jackson states: They invest money; they invest in people, as in training employees to run new equipment; they invest in lasting assets, such as equipment itself; and they invest in changing basic business procedures like inventory handling. Because of these past investments, buyers may hesitate to incur the disruptions and switching costs that result when they select new suppliers. Risk of exposure provides a second major category of switching costs. Attention centers on the risks to buyers of making the wrong choice. Customers perceive more risk when they purchase products important to their operations, when they buy from less established suppliers, and when they buy technically complex products.

CROSS INDUSTRY CRM BEST PRACTICES

CRM in manufacturing firm

CRM in all stages of life cyclea. Pre purchaseb. Purchasec. Post purchased. Repurchase Dealer management Supplier management Customer Collaboration Product customization

CRM in Insurance

Personalization of offers Regular communication with customers Agents adopting a customer centric Approach Sales force automation Unification of data-single customer view

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CRM in Airlines

Multi channel customer access Automation & co-creation of values Segmentation & loyalty schemes Personalization Reduces hassles Enhanced value through strategic tie-ups

CRM in Hotels

Enhanced customer service Features that facilitates greater work fulfillment Access to consolidates data Focus on loyal customers Multi channel Strategic Partnership for higher customer need fulfillment

CRM in Telecom

Customer friendly Processes Investment in CRM software Usage & unmet needs Personalization Rewards for loyalty

CRM in Financial Services

Provision of data regarding history and preferences of investors Encouraging customer relationships Investment selling Tracking and monitoring financial deals Managing financial deals

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CRM Formation Process in the perspective context of GAIL

In the formation process, three important decision areas relate to defining the purpose

(or objectives) of engaging in CRM, selecting parties (or customer partners) for

appropriate CRM programs and developing programs (or relational activity schemes) for

relationship engagement with the customer.

1. CRM PurposeThe overall purpose of CRM is to improve marketing productivity and enhance

value for parties in involved in the relationship. By seeking and achieving

operational goals, such as lower distribution costs, streamlining order processing

and inventory management, reducing the burden of excessive customer

acquisition cost, and through customer retention economics, GAIL could achieve

greater marketing efficiencies. It can enhance marketing effectiveness by

carefully selecting, customers for its various programs, individualizing and

personalizing their market offerings to anticipate and serve the emerging needs

of individual customer, building customer loyalty and commitment, partnering to

enter new markets and develop new products, and redefining the competitive

playing field for their company.

Thus, stating the objectives and defining the purpose of CRM in a company helps

clarify the nature of CRM programs and activities that ought to be performed by

the partners. Defining the purpose would also help in identifying suitable

relationship partners who have necessary expectations and capabilities to fulfill

mutual goals. It will further help in evaluating CRM performance by comparing

results achieved against objectives. These objectives could be specified as

financial goals, marketing goals, strategic goals, operational goals, and general

goals.

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Relational Parties

In the Initial phase, a GAIL has to decide which customer type and specific customers or

customer groups will be the focus of their CRM activities.

CRM Programs

A careful review of literature and observation of corporate practices suggest that there

are three types of CRM programs: continuity marketing; one-to-one marketing; and,

partnering programs. These take different forms depending on whether they are meant

for end-consumers and business-to-business customers.

Table 1 presents various types of CRM programs developed for different types of customers.

Customer Types

Program TypesMass Markets

Business to BusinessMarkets

Continuity Marketing

After- Marketing

Loyalty Programs

Cross-Selling

Special Sourcing

Arrangements

One-to-One Marketing Permission Marketing

Personalization

Key Account

Global Account

Partnering/Company-

Marketing Affinity Partnering

Co-Branding

Strategic Partnership

Co-Design

Co-Development

Source: - destinationcrm.com

Explanation of the above table:

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Continuity Marketing Programs

Take the shape of membership and loyalty card programs where customers are often rewarded for their member and loyalty relationships with the marketers. The basic premise of continuity marketing programs is to retain customers and increase loyalty through long-term special services that has a potential to increase mutual value through learning about each other.

One-to-one Marketing

Meeting and satisfying each customer’s need uniquely and individually. In the mass markets individualized information on customers is now possible at low costs due to the rapid development in the information technology and due to availability of scalable data warehouses and data mining products. By using online information and databases on individual customer interactions, marketers aim to fulfill the unique needs of each mass-market customer. Information on individual customers is utilized to develop frequency marketing, interactive marketing, and after marketing programs in order to develop relationship with high-yielding customers. In the context of business-to-business markets, individual marketing has been in place for quite some time. Known as Key Account Management Program, here marketers appoint customer teams to husband the company resources according to individual customer needs.

Partnering Programs

The third type of CRM programs is partnering relationships between customer and marketers to serve end user needs. In the mass markets, two types of partnering programs are most common: co-branding and affinity partnering.

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2. CRM Governance Process

Greater the scope of CRM program and associated tasks, and the more complex is the composition of the relationship management team; the more critical is the role specification decision for the GAIL partnering firms.

It is essential to establish intra-company communication particularly among all concerned individuals and corporate functions that directly play a role in managing the relationship with a specific customer or customer group.

With mass-market customers frequent face-to-face interactions will be uneconomical. Thus GAIL should create common bonds through symbolic relationships, endorsements, affinity groups, and membership benefits or by creating online communities.

Involving GAIL customers in the planning process would ensure their support in plan implementation and achievement of planned goals. All customers are not willing to participate in the planning process nor is it possible to involve all of them for relationship marketing programs for the mass markets.

Operating process between the company and customer partners: Operating alignment will be needed in order processing, accounting and budgeting processes, information systems, merchandising process, etc

Human resources decisions are also important in creating the right organization climate for managing relationship marketing. Training employees of GAIL to interact with customers, to work in teams, and manage relationship expectations are important. So is the issue of creating the right motivation through incentives and rewards.

Periodic evaluation of goals and results, initiating changes in relationship structure, design or governance process if needed, creating a system for discussing problems and resolving conflicts.

3. CRM Performance Evaluation Process

Without a proper performance metrics to evaluate CRM efforts, it would be hard to make objective decisions regarding continuation, modification, enhancement, or termination of CRM programs.

If co-operative and collaborative relationship with the customers is treated as an intangible asset of the GAIL, its economic value ads can be assessed using discounted future cash flows estimates. Here the term relationship equity comes in where you measure the intangible assets of the GAIL.

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Another global measure used by GAIL is to monitor CRM performance is the measurement of relationship satisfaction. By measuring relationship satisfaction, GAIL could estimate the propensity of either party’s inclination to continue or terminate the relationship. Such propensity could also be indirectly measured by measuring customer loyalty.

4. CRM Implementation Issues

One of the most interesting aspects of CRM development is the multitude of customer interfaces that a GAIL has to manage in today’s context. Until recently, a company’s direct interface with the customers, if any was primarily through sales people or service agents. In today’s environment most companies interface with their customers through a variety of channels including sales people, service personnel, call centre, Internet websites, marketing departments, fulfillment houses, market and business development agents, etc. For large customers it also includes cross-functional teams that may include personnel from various functional departments. While each of these units could operate independently, they still need to share information about individual customers and their interactions with the company on a real time basis.

Therefore effective CRM requires a front-line information system that shares relevant customer information across all interface units. Relational databases, data warehousing and data mining tools are thus very valuable for CRM systems and solutions.

However, the challenge for GAIL is to develop and integrated CRM platform that collects relevant data input at each customer interface and simultaneously provides knowledge output about the strategy and tactics suitable to win customer loyalty and support. Although most CRM software solutions based on relational databases are helping share customer information, they still do not provide knowledge output to the front line personnel. CRM solutions platform needs to be based on interactive technology and processes. It should assist the company in developing and enhancing customer interactions and one-to-one marketing through the help of suitable intelligent agents that help develop front-line relationship with customers. Such a system would identify appropriate data inputs at each customer interaction site and use analytical platforms to generate appropriate knowledge output for front-line staff during customer interactions.

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In addition, implementation tools to support interactive solutions for customer profitability analysis, customer segmentation, demand generation, account planning, opportunity management, contact management, integrated marketing communication, customer problem solving, virtual team management of large global accounts, and measuring CRM performance would be the next level of solution sought by most enterprises.

Since CRM implementation comprises a significant information technology (IT) component, these companies have handed over the responsibility of CRM implementation to information technology departments. They are focused on simply installing CRM software solutions without a CRM strategy or program in place. This leads to creating an operational tool within the company, but the usability and effectiveness in producing desirable results from such tools is limited. CRM tools would be valuable when they are used to identify and differentiate individual customers and to generate individualized offer and fulfill customized solutions. The lack of CRM strategy or CRM programs would leave the front-line people without any knowledge of what they should be doing with the additional customer information that they now have access to. For those who apply themselves and develop improvised solutions, it could backfire as ad hoc solutions could cause unintended deterioration in customer relationships. Appropriate strategy and excellent implementation are both needed for obtaining successful results.

From a GAIL CRM implementation point of view, CRM should not be misunderstood to simply mean a software solutions implementation project.

The implementation of a customer relationship management (CRM) solution is best treated as a six-stage process, moving from collecting information about GAIL customers and processing it to using that information to improve its marketing and the customer experience.

Stage one - Collecting information

The priority should be to capture the information GAIL need to identify its customers and categories their behavior. Those businesses with a website and online customer service have an advantage as customers can enter and maintain their own details when they buy.

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Stage two - Storing information

The most effective way to store and manage its customer information is in a relational database - a centralized customer database that will allow it to run all its systems from the same source, ensuring that everyone uses up-to-date information.

Stage three - Accessing information

With information collected and stored centrally, the next stage is to make this information available to staff in the most useful format.

Stage four - Analyzing customer behavior

Using data mining tools in spreadsheet programs, which analyze data to identify patterns or relationships, it can begin to profile customers and develop sales strategies.

Stage five - Marketing more effectively

Many businesses find that a small percentage of their customers generate a high percentage of their profits. Using CRM GAIL would be gain a better understanding of its customers' needs, desires and self-perception; you can reward and target your most valuable customers.

Stage six - Enhancing the customer experience

Just as a small group of customers are the most profitable, a small number of complaining customers often take up a disproportionate amount of staff time. If their problems can be identified and resolved quickly, staff will have more time for other customers.

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CRM - Sales Process in GAIL

Order to cash cycle in SAP consists of following steps:-

Order creation Delivering Billing Receipt of payment

Order creation

While creating an order, customer, product, various pricing components, delivery schedule, mode of payment etc are captured in the system. Depending on the credit policy of the company, orders are created on the credit or cash basis.

In SAP each transaction can be accessed using specific t-codes.

Order creation Order modification Order distribution

Delivery

The steps consist of picking, packing, and shipping of sales.

Delivery creation Delivery modification Delivery distribution Transfer order Order confirmation

Billing

We can create two type of billing document:-

Commercial invoice Direct sales to customer Performa invoice Stock Transfer to C. S. warehouse Billing Creation Billing Modification Billing Distribution

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Receipt of Payment

Components are:-

Basic prices Discount Taxes and duties Freight

Details of Order Processing

1. Inquiry – An inquiry is a non-binding price quotation to a customer that tells them the price of a specific quantity of your product.

2. Create a sales order from an Inquiry – if the customer wants to place an order after receiving the inquiry, we can create a sales order from the inquiry so that we don’t have to re-enter the basic data.

3. Create a delivery for the Sales order - it allows the warehouse to pick, pack and ship the order.

Stock / Requirement List – the stock requirements list shows the current inventory level, any outstanding sales orders as well as any planned production orders.

4. Picking the order – with the delivery created, the order can be picked, packed and shipped. The system has many capabilities to schedule these processes.

5. Post Goods Issue – In the SAP logistics terminology, we receive goods into inventory and issue goods from inventory to the customer. In the accounting world, we record business transactions by posting them to an account. Thus, when we post the goods issue, we record the change in stock level and financial position of the company as a result of spending the goods on their way.

6. Invoice the customer – perhaps as important as delivering the customer’s order on time an in good condition is properly billing the customer for their purchase. Thus, it is important to be able to determine which customers still need to be billed.

7. Receive payment from customer – hopefully the invoice has prompted the customer to send in a payment for the snack bars they have received.

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GAIL Business value:-

• increased agility, productivity and profits

• Reduced costs and risks in today’s diverse environments

• Unified customer data across multiple business units and diverse functional systems, in order to provide reliable sources of customer information across enterprises

• More efficient service, higher customer satisfaction, and reduced churn

• Enhanced customer experience and increased revenue through improved cross- and up-selling

• Superior customer experience assured at every touch point leading to enhanced customer loyalty and increased brand image

Gail’s CRM offerings have been organized to cater to the complete life cycle of the CRM process.

We focus on the 'Think', 'Build', and 'Operate' dimensions helping enterprises implement the right solution for their CRM needs.

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RECOMMENDATIONS

Existing System

At present only the forms are filled after requesting to the HR executive and database is stored in files but no web enabled system is there to access those data and to display them in a meaningful way. So, without a proper front end system was very difficult to display the information based on different locations and to generate reports in a proper way. Without a web enabled system it is very difficult for people to get the information with respect to the location. All the data was manually processed using a excel sheet due to which the process of natural gas customer’s profile consumed a lot of time. There was a requirement for development of a software package for maintaining and making the customer’s profile details as per the statutory requirements.

Drawbacks of the existing system

Employee has to make customer’s profile manually. Since the system is manual hence it is difficult to maintain customer profile. It was difficult to consolidate all the data of different locations. There was a chance of missing the some data. If some modifications has to be done to the data stored in the database, those

must be done direct.

Proposed System

In the proposed system, concerns of the user and the management have been kept in mind before proceeding towards the generation of useful and meaningful results. With the development of this system all kind of information related to natural gas customer profile will be accessed quite easily.

The proposed system should generate the following information according to various requirements.

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The purpose of the natural gas customer profile is to provide all the employees to view and manage the natural gas customer profile. The main intention behind the natural gas customer profile is to automate the existing system. In this system we store the customer deals with a unique ID in the database for future reference. So, this makes the job of handling the information easy.

The proposed system should be faster and higher in performance.

As the system will support a simple graphical user interface, no expertise is needed to run the system.

GAIL should work on capturing faith of the existing customers. They should work on growing the existing customers. Better CRM software can help in growing the GAIL’s existing customers, increasing the customer base, acquiring new customers.

GAIL needs to implement a more effective CRM which requires a front-line information system that shares relevant customer information across all interface units. Relational databases, data warehousing and data mining tools are thus very valuable for CRM systems and solutions and should be worked upon for better customer satisfaction and loyalty.

GAIL need to find and implement the implementation tools to support interactive solutions for customer profitability analysis, customer segmentation, demand generation, account planning, opportunity management, contact management, integrated marketing communication, customer care strategies, customer problem solving, virtual team management of large global accounts, and measuring CRM performance would be the next level of solution sought by most enterprises

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