CUSTOMER RELATIONSHIP MANAGEMENT

In AutoMobile Industry

PRESENTED BY…

Moumita Kar Jyoti Ray Rashmi Rekha Das Mohit Keshri Biranchi Dash Debajit Barman Gaurav Tripathi Ajay Singh Chauhan Rousan kumar

INTRODUCTION

Maruti Udyog Ltd was estd. in 1981 Joint venture agreement with Suzuki

Motor in 1983 with 26% of equity. In 1987 Suzuki raises equity to 40% In1992 Suzuki again raises equity up to

50% And Maruti become a non-government

organization managed on the lines of Japanese management practices

Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea.

 THE OBJECTIVES    Modernization of the Indian Automobile Industry. Production of fuel-efficient vehicles to conserve scarce

resources. Production of large number of motor vehicles which was

necessary for economic growth 

MAJOR COMPETITORS

  The major competitors for Maruti cars are; Hyundai Motor India Limited Tata Motors Hindustan Motors Mahindra & Mahindra PAL Toyota Ford Mitsubishi GM

MARUTI AND CRM

Maruti created a land-mark in CRM by launching a website for the customers in the year 1998

Maruti is investing a lot of money and effort in building customer loyalty programmes

1.Maruti Auto Card-- Auto Card brings the customer all the advantages of an international credit card in addition to bringing the customer an opportunity of earning valuable Auto points for his next Maruti car.

MARUTI TRUE VALUE OUTLET

Maruti has aided customers by providing them the facility to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return. This helps them retain the customer.

Maruti Call Center Maruti has proper customer complain

handling cell under the CRM dept. The ChC will help MUL rapidly build an information pool of over 3 million Maruti owners as well as that of its prospective customers

MARUTI ON ROAD SERVICES

The MOS ensures: Round-the-clock services in most of the

cities A computerized call-monitoring system

dispatches a mobile MOS van to the customer at the earliest

All MOS vans are manged by qualified Maruti Authorised Dealers / MASS technicians who are trained by Maruti in problem diagnosis

The customer are charged only Rs.100 on labour and spares

N2N: Maruti’s N2N Fleet Management Solutions for companies, takes care of the A-Z of automobile problems. Services include end-to-end backups/solutions across the vehicle’s life: Leasing, Maintenance, Convenience services and Remarketing.

Market Research Department Their Market Research department remains

on its toes to study the changing consumer behaviour and market needs. Maruti enjoys 70%repeat buyers which further bolsters their claim of being customer friendly

Availability of easy finance Maruti has also made the customer

experience hassle free and helped building customer satisfaction by developing different revenue streams in the form of Maruti Insurance and Maruti Finance.

OTHER ADVANTAGE:WHICH HELP IN CRM

A Buying Experience Like No Other Maruti Suzuki has a sales network of 307 state-of -the-art

showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car.

Quality Service Across 1036 Cities In the J.D. Power CSI Study Maruti Suzuki scored the

highest across all 7 parameters:

1.least problems experienced with vehicle serviced,

2.highest service quality,

3. best in-service experience,

4.best service delivery,

5.best service advisor experience,

6. most user-friendly service and

7.best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle.

One Stop Shop At Maruti Suzuki, customers will find all car related needs

met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs.

The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost

customers face when buying a car. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.

Lowest Cost of Ownership The highest satisfaction ratings with regard to cost of

ownership among all models are all Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

CRM THROUGH SOCIAL RELATIONSHIP

In 1999 Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives.

Maruti Driving School-Available in all major cities.Lady trainer for lady customer.

CRM STRATEGY OF TOYOTA…

CUSTOMER….THE FIRST PRIORITY…

A large part of the answer is Toyota's obsession with its customers.Toyota's internal sales and marketing bible, The Toyota Way in Salesand Marketing, makes it patently clear to all staff that totallysatisfied customers is the source of its success. Everything Toyotadoes is done with this in mind.

A good measure of Toyota's success is a strategy that manages tostraddle both manufacturing and non-manufacturing environments. It'sone called Lean CRM, which was developed by Toyota in Europe, inresponse to the growing volume of customer information collected atthe many touch-points during the customer lifecycle. It allows Toyotato sense changes in individual customers' behavior and to respond in away that increases customer satisfaction. It has enabled Toyota tosell significantly more vehicles, with a shorter trade cycle andhigher repurchase rate, at significantly lower costs.

CUSTOMER PULL…

A typical European customer will own a new vehicle for three to eightyears before replacing it. Toyota's process guides how differenttouch-points over the customer lifecycle are delivered and how theemployees should respond to customer-initiated touch-points anddeliver Toyota-initiated ones.

This process starts when the customer is just thinking about buying anew vehicle, with Toyota's marketing. The marketing guides prospectivebuyers to the Toyota web site, where they can learn more and requestfurther information. Requesting information is an example of "customerpull," where Toyota responds directly to the customer. It is the firstpoint at which the customer becomes known to Toyota, and it triggers acheck to see if Toyota already knows the customer. What the companyalready knows about the customer guides how future touch-points tothat customer are delivered.

TOYOTA PUSH… As Toyota guides the customer through the purchase process, the auto

company uses what it knows about the customer to provide just theright information that Toyota leadership thinks will help him or hermake the right choice. This is an example of "smart Toyota push." Inaddition to more vehicle information, Toyota might send out acustomized offer, maybe even a pre-approved credit offer if thecustomer's credit record with Toyota is good.

Statistical models are widely used to help identify which customers should have which information pushed to them. Where models are not available or not appropriate, simple data analyses or Toyota best practices are used,instead.

As the customer buys his or her new Toyota and enters the ownershiplifecycle, Toyota uses every opportunity to sense customer pull and torespond to it—and to push exactly what it thinks the customer wants,exactly where it's wanted, exactly when it's wanted. It is thiscombination of pull and push that guides each customer step by stepduring the customer lifecycle and toward the customer's next purchase.It is the backbone of the lifetime conversation between the customerand Toyota

CUSTOMER DNA…

The heart of Toyota's Lean CRM is "Customer DNA." Just as real DNAinfluences how each individual develops, looks and responds to his orher environment, Customer DNA controls how each touch-point betweenthe customer and Toyota during the customer lifecycle is carried out.It defines each touch-point—most likely a contact or a campaign—that acustomer is likely to have with Toyota, whether initiated by thecustomer or by Toyota. The touch-point trigger, the touch-pointdelivery process, previous or subsequent touch-points, the roles andresponsibilities involved and the business rules that control how thetouch-point is executed are all contained within the touch-pointdefinition. The touch-points appropriate to each customer—which makeup that person's Customer DNA—are assigned to them as soon as thecustomer is identified.

CONTD…

Toyota implements the touch-points through the Unica Affinium campaignmanagement system (CMS). Using an industrial-strength CMS likeAffinium is the only way to manage the variability of customers, thedifferent touch-points and their implementation.

A regular process automatically reviews what is known about eachcustomer and decides whether a touch-point should be triggered. Ifmore than one touch-point is appropriate at the same time, it alsodecides which one has priority and what happens to the other. Forexample, an update of customers who have had recent service from adealer will trigger the review process. For those who were due to besent an inspection reminder but had the inspection recently, thereminder will be cancelled. And the mileage at the last inspectionwill be used to calculate when the next reminder should be sent out.

Similarly, if the customer requests information about a new model, therequest will automatically trigger a review process to identify thebest touch-point and which touch-points should be triggered as afollow-up.

CONCLUSIVELY…

As Toyota introduces brand new touch-points, such as a new CustomerDriver Club, all Toyota has to do to update the Customer DNA is todefine the touch-points associated with the Club, how they interactwith existing touch-points and the membership rules for the club andthen enter that data into Affinium. The next time a review istriggered, the new touch-points will be there along with thepre-existing touch-points

 SO MUCH FOR THE THEORY, BUT DOES IT ACTUALLY WORK??

More sales, more often, at lower costThe Lean CRM approach outlined here has been developed in closecooperation with one of Toyota's European sales companies and itsdealers. It has been piloted in touch-points during the customerlifecycle. It has enabled Toyota to sell significantly more vehicles,with a shorter trade cycle and higher repurchase rate, atsignificantly lower cost. A comparison of a recent before and aftermarketing campaign showed a 70 percent reduction of non-targetcustomers being mailed, an 80 percent reduction in campaign costs, a50 percent reduction in campaign development time and a 60 percentincrease in campaign ROI. Over the next few years, Toyota's Lean CRMwill contribute between $5 million and $10 million (in U.S. dollars)of additional contribution each year to the sales company.

Despite the reservations that some have about applying lean principlesdeveloped in manufacturing to sales and marketing, Toyota has shownclearly that Lean CRM does deliver significant benefits for customersand for itself. For Toyota, it is an inextricable part of itslong-term drive toward total customer satisfaction.

THANK YOU…