INTRODUCTIONCUSTOMER RELATIONSHIP MANAGEMNET IN RETAIL

DEFINITIONBefore we begin to examine the conceptual foundations of CRM, defining what CRM is would be useful. In the marketing literature the terms customer relationship management and relationship marketing are used interchangeably. As Nevin (1995) points out, these terms have been used to reflect a variety of themes and perspectives. Some of these themes offer a narrow functional marketing perspective while others offer a perspective that is broad and somewhat paradigmatic in approach and orientation. A narrow perspective of customer relationship management is database marketing emphasizing the promotional aspects of marketing linked to database efforts (Bickert, 1992).

Another narrow, yet relevant, viewpoint is to consider CRM only as seeking customer retention by using a variety of after marketing tactics that lead to customer bonding or staying in touch with the customer after a sale ismade (Vavra, 1992). A more popular approach with the recent application of information technology is to focus on individual or one-to-one relationships with customers that integrate database knowledge with a longterm customer retention and growth strategy (Peppers & Rogers, 1993).Thus, Shani and Chalasani (1992) have defined relationship marketing as an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for the mutual benefit of both sides, through interactive, individualized and valueadded contacts over a long period of time (p. 44). Jackson (1985) applies the individual account concept in industrial markets to suggest CRM tomean, Marketing oriented toward strong, lasting relationships with individual accounts (p. 2). In other business contexts, Doyle and Roth(1992), ONeal (1989), and Paul (1988) have proposed similar views of customer relationship management.

EVOLUTION OF CRM:

As observed by Sheth and Parvatiyar (1995b), developing customer relationships has historical antecedents going back into the pre-industrial era. Much of it was due to direct interaction between producers of agricultural products and their consumers. Similarly, artisans often developed customized products for each customer. Such direct interaction led to relational bonding between the producer and the consumer. It was only after the advent of mass production in the industrial era and the advent of middlemen that interaction between producers and consumers became lessfrequent leading to transaction oriented marketing. In other words, theproduction and consumption functions became separated leading to themarketing functions being performed by middlemen, and middlemen, ingeneral, are oriented towards economic aspects of buying since the largestcost is often the cost of the goods sold.

In recent years however, several factors have contributed to the rapid development and evolution of CRM. These include the growing de-intermediation process in many industries due to the advent of sophisticated computer and telecommunication technologies that allow producers todirectly interact with end-customers. For example, in many industries such as the airline, banking, insurance, computer software, or household appliances industries and even consumables, the de-intermediation process is fast changing the nature of marketing and consequently making relationship marketing more popular. Databases and direct marketing tools give these industries the means to individualize their marketing efforts. As a result, producers do not need the functions formerly performed by middlemen. Even consumers are willing to undertake some of the responsibilities of direct ordering, personal merchandising, and product use related services with little help from the producers. The recent success of on-line banking,Charles Schwab and Merryll Lynchs on-line investment programs, direct selling of books, automobiles, insurance, etc., on the Internet all attest to the growing consumer interest in maintaining a direct relationship with marketers.

CUSTOMER RELATIONSHIP MANAGEMENT AS MARKETING TOOL

Customer Relationship Management (CRM) is the marketing management practice of identifying, attracting and retaining the most valuable customers to sustainprofitable growth. Customer Relationship Management is also the process ofmaking and keeping customers and maximizing their profitability, behaviors and satisfaction.

Today Customer demand open equal access, real time specialized information, convenient access, information portability, process & logistics transparency, pricing transparency, global pricing, ability to set prices, choice of distribution channels and control over their information.Maintaining relationship is the key to success of your business. By doing that, your first-time customer can become a repeat customer, thereafter a client, then an advocate and finally your partner in progress.

However the worst point is that at any point in the above process, he could disconnect from you and therefore, it is all the more important to reiterate the relationship with him.From your loyal customers, in addition to getting the base profit, you can also earn from reduced operating cost, increased purchases and getting plenty of referrals. We also understand from the realistic observation on customers that it costs ten times more to sell to a new customer than to sell to an existing one. When the odds of selling to a new customer are 15 percent, the odds of selling to an existing customer are 50 percent. And a typical dissatisfied customer will tell 8 to 10 people about his or her bad experience. It is also true that eighty percent of complaining customers will do business with the company again if it quickly takes care of the problem. 45% of customers switching suppliers cite customer service issues as the reason for the switch.

The 80-20 principle is valid in sales & marketing too. 20% of the customers deliver 80% of revenues and many times, more than 100% of profits. Existing customers deliver most of the revenues. However more attention and money is often spent on non-customers. It is therefore important to identify the most valuable customers (MVCs) for the success of the business.A small net upwards migration of customers can deliver a dramatic improvement in business performance. 5-10% of the small customers can move immediately to the top. But an upward migration only happens when customers are very satisfied. But even reasonably satisfied customers defect.Marketing and sales are charged with influencing customer behaviour but other departments involved with customer processes also influence on customers for better or worse

CRM PRACTICES BY RETAILERS

As a sector, retail has been slow to adopt CRM principles and practices. Compared with such industries as financial services and telecom, retail appears downright sluggish. The early CRM experiments at retail focused on store-based efforts like branded credit cards and frequent-shopper programs, some of which have taken root and been extended year after year. "There are pockets of CRM success in retail," observes Adam Sarner, CRM analyst at Gartner Group. "We are seeing some interesting programs in email marketing, in customer service, and in customer segmentation."

At the high end of the sector, several creative new CRM strategies have emerged. Both Nordstrom and Prada, for example, are experimenting with "clienteling," which means automating the "black book" traditionally maintained by store sales personnel on their own customers, containing purchase history, preferences and contact information. Sales people will be able to pull up customer profiles and email their best customers about upcoming events like trunk shows or the arrival of new merchandise. "This is the 'last mile' of CRM," says Gartner's Sarner. "It supercharges the sales person's ability to manage the existing relationship."

At the mid-level of the retail sector, the focus is on loyalty programs. In the grocery business, early efforts produced discount cards, many of them still anonymous, that offered little more than the equivalent of manufacturers' coupons for periodic specials. But grocers are now beginning to upgrade. The Food Emporium chain, a division of A&P, launched in March 2003 a new program called Gold Points. The points can be redeemed for cash savings at purchase or for other rewards like travel or consumer electronics. Gold Points is part of a syndicated program managed by Carlson Marketing Group that includes 8 million customers from over 100 marketers, like TGI Friday restaurants, Radisson Hotels, and FTD florists.

According to Janet Sparkman, executive vice president of consumer strategies at Carlson, the Gold Points program was an immediate success for The Food Emporium. In its first 5 months, the program converted 250,000 members from the previous program, and recorded 52% of store sales on the card. Spend per member was 37% ahead of the previous year. "The earlier program was anonymous and offered little value," Sparkman comments. "Cashiers would swipe for cardless customers, which taints the data. With Gold Points, we move from a discount card to a reward card. It has more value, and it's more fun."

Hallmark also manages a successful loyalty program for its 4500 independently owned retail stores. Launched in 1994, the Gold Crown Card has over 12 million members, with data on their purchase history, contact information and demographics. Hallmark segments the customers by purchase pattern (greeting cards-only shoppers, cross-product shoppers, and promotion responders) and sends marketing messages through direct mail and email, targeted to their preferences.

Jay Dittmann is Hallmark's vice president of consumer 1-to-1 marketing, and has reporting to him most of the activities one would associate with CRM: the call center, a marketing analytics research group, the Gold Crown Card program, and Hallmark.com. Dittmann notes that Hallmark evolved its enterprise-wide customer strategy over time. "We are not organized solely for CRM. Instead, we are organized for the capabilities. The strategy, the systems, the analytics, the marketing programs-all are integrated horizontally into the business. We don't believe a functional silo called CRM would be successful."

Hallmark's customer strategy concentrates on tailoring products and offers through all Hallmark brand touchpoints, from the Hallmark stores, to the mass retailers who carry Hallmark cards, such as Walmart and CVS, to the Hallmark.com e-commerce channel. But Dittmann admits his customer strategy cannot be called global. "Our dedicated retail network is strictly U.S. based. In the U.K. and elsewhere, we face a very different retail environment. Abroad, our customer strategy must be handled locally, by the Hallmark marketing arms in each country."

These store-based incentive programs are effective, but they are hardly on the cutting edge of CRM thinking today. What is in the way of faster CRM development in the retail sector? The root causes are many.

Perhaps the largest barrier is the natural tendency toward decentralization endemic to the industry's structure. "The job description between central operations and store operations will be split forever," observes Erin Kinikin, an analyst with Forrester Research. "Store people operate independently. To develop a single view of the customer, you need considerable cooperation across stores. Retail will never move to a single ownership model."

A corollary structural issue is the industry's traditionally thin margins. Store manager attention is on cost-cutting and operational efficiencies. Technology investments tend to be earmarked for systems that support merchandising, inventory and supply chain, tools like markdown optimization software and bar-coding systems. "When we ask retailers about their IT budget priorities," says Christopher Boone, retail industry program manager at IDC, "customer-related programs fall to the bottom. Store systems are where the money is going. When we asked about CRM spending, nearly 60% said they were not using CRM tools and had no plans to use them in the next 12 months."Another barrier lies in the challenges of multi-channel marketing. As new channels are built-catalog, for example, and e-commerce-retailers have struggled with the systems integration necessary to link customer records. "It's easy at a single-channel outfit like Amazon," says Gartner's Sarner. "But William-Sonoma is another story. It's rare to find CRM enterprise-wide."At the customer level, the fundamental barrier to CRM at retail is anonymity. How can a re-tailer develop ongoing customer management strategies when there is no record of the transaction linked to an individual customer? Much of retail industry CRM activity to date has thus focused on overcoming this essential problem.

Over the years there have evolved a handful of distinct approaches, none of them perfect:1. Store cards, whether a branded credit card or a discount or loyalty card. Only a fraction of customers will use the card, and even then, usage can be sporadic.

2. Data matchback from syndicated credit card purchases, where addresses are appended by credit bureaus and added to the store's marketing database. This option that was essentially eliminated by the Graham-Leach-Bliley Act of 1999, which now forbids address append.

3. Training reps at point of sale to collect and record customer contact information. Today, only a small percentage of retail customers will provide contact information when asked. Sales people need toprovide customers with a strong rationale in order to improve these rates.

The next stage for retail CRM, after loyalty programs, is likely to be multi-stage marketing, where stores track buying patterns and develop upsell and cross-sell strategies accordingly. "The best retailers are moving toward using an understanding of how customers buy, and turning it into a plan for marketing to them," says Forrester's Kinikin. The key tool needed to drive this development is point-of-sale systems that can quickly and accurately capture customer data at the transaction stage. But the problem of training sales reps and motivating customers to give up their information remains.As long as the retail sector is focused on cost savings, versus revenue enhancements, its customer strategies will be limited. Few retailers have reached the level of developing an enterprise-wide customer strategy, with an understanding of customer value and a plan to increase that value. Today, retailers are just looking for the quick hits of CRM, like screen pops for call centers, and email campaigns to drive store traffic.

GOAL OF CRM:The idea of CRM is that it helps businesses use technology and human resources to gain insight into the behavior of customers and the value of those customers. With an effective CRM strategy, a business can increase revenues by:1. providing services and products that are exactly what your customers want1. offering better customer service1. cross selling products more effectively1. helping sales staff close deals faster1. retaining existing customers and discovering new onesHOW TO BEGIN FOR CRMIt doesn't happen by simply buying software and installing it. For CRM to be truly effective, an organization must first understand who its customers are and what their value is over a lifetime. The company must then determine what the needs of its customers are and how best to meet those needs. For example, many financial institutions keep track of customers' life stages in order to market appropriate banking products like mortgages or IRAs to them at the right time to fit their needs.Next, the organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used. One company, for instance, may interact with customers in a myriad of different ways including mail campaigns, Web sites, brick-and-mortar stores, call centers, mobile sales force staff and marketing and advertising efforts. CRM systems link up each of these points. This collected data flows between operational systems (like sales and inventory systems) and analytical systems that can help sort through these records for patterns. Company analysts can then comb through the data to obtain a holistic view of each customer and pinpoint areas where better services are needed. For example, if someone has a mortgage, a business loan, an IRA and a large commercial checking account with one bank, it behooves the bank to treat this person well each time it has any contact with him or her.

Article about big bazaar:According to article in Business standard by NamrataAcharya, KolkataSeptember 19, 2013 big bazaar aims to generate a third of its revenues from fashion Retail chain big bazaaris planning to churn its product mix, so as to generate at least one-third of revenue from the fashion segment. At present, the fashion segment accounts for a quarter of the revenues of the Future group-led retail stores.Notably, last year, Future Group had sold its controlling stake in Pantaloon, its fashion flagship store, to the AV Birla Group. Since then, it has been planning to realign its product mix with a focus on garments.We are introducing a new autumn-winter collection in stores. We are bringing local celebrity connect, which connects with the audience here. We want the fashion segment to account for one-third of our business, said AkshayMehrotra, chief marketing officer, Future Group.

The company would focus on generating volumes in the fashion segment to stick to the budget segment of clothing, and to move away from the concept of hyper market to value departmental stores, he added.With a view to revamp the fashion segment, Big Bazaar would also open about 15-20 new standalone FBB (Fashion at Big Bazaar) stores. At present, the company already operates 29 FBB stores.Future, formerly known as Pantaloon Retail Ltd, and Future Ventures India, recently demerged their fashion businesses into a new listed unit. Under the restructuring, all fashion brands held by Future Retail and Future Ventures were transferred to Future Lifestyle, which focuses on over 24 popular fashion brands and retail formats like Central, Brand Factory, Planet Sports, I m in and aLL.Recently, Future Group launched its direct selling service called Big Bazaar Direct which would allow customers to directly place orders with appointed Big Bazaar franchisees.

Article on shoppers stop:

According to the article in Thehindu by priyankapani Shoppers Stop plans big growth in small towns, Mumbai august 5 2012Within six months of launching a store in Jaipur, Shoppers Stop Ltd had to revamp the entire merchandise mix after buyers complained that they didnt find many brands which they had bought at the store in Delhi or Mumbai. It is now one of the most successful and profitable stores for the big box retailer. It was in 2010, when the company started charting out plans to tap the opportunity in small towns.Another interesting finding for the Mumbai-based retailer was that Lucknow market demanded more premium watches and accessories, while high-end ethnic wear was a major hit in AgraGovindSrikhande, Managing Director of the K. Raheja group-owned Shoppers Stop, is investing heavily in studying these markets, which a few years ago was not even on the companys radar. The company is now entering small towns such as Latur, Siliguri, Vizag, Surat and Raipur.Aspiration level in small towns is growing. They dont want to be treated as second class citizens and are demanding premium brands. However, we just need to get the model and customer strategy right. For example, in those towns corporate and formal wear will not work, Srikhande said.Of the 55 Indian towns with a million plus population, Shoppers is already present in 28 towns and will open stores in another 10 this year atRs.8 croreinvestment per store. Shoppers Stop Ltd runs formats Shoppers Store (departmental store), Hypercity (hypermarket), Homestop (furniture and furnishings) and Crossword (book store). At present, the company has 63 stores and plans to take it to 75 in this fiscal.According to industry estimates, as of 2013, India's retailing industry was essentially owner manned small shops. In 2010, larger format convenience stores and supermarkets accounted for about 4 per cent of the industry, and these were present only in large urban centres.The company also plans to enter these small towns with premium brands (which rank below luxury brands in retail industry lingo). Shoppers Stop already offers luxury brands such as Tommy Hilfiger, Estee Lauder and Bobby Brown at its stores. Will premium brands improve the stores success in these towns? The answer is a resounding yes from Srikhande.We are very carefully entering markets by studying the demography. For us the presence of multiplexes, colleges or a McDonalds or Pizza Hut is a very important indicator. This indicates the amount of money people are willing to spend. This is driving our expansion strategy, Srikhande added.

Article on pantaloons:According to article in Business standard by raghavendrakamath Pantaloons to open new formats, add categoriesAfter being acquired byAditya BirlaNuvo last year, department store chainPantaloonstoday said it was looking to open new formats and enter new cities as part of its growth strategy.

PantaloonsFashion&Retail, part of Aditya Birla Group, runs 95 stores with a total area of 1.7 million sqft in the country now."We are constantly growing our domestic market. We intend to enhance our customer base through increasing our presence in various cities in India. We intend to increase our share in consumer spending by launcing new formats or by adding new categories," Pantaloons said in an annoucement to its shareholders today.Last year,Aditya Birla Nuvoacquired the controlling stake in Pantaloons, the fashion format of Future group, in aRs 1,600 crore deal. Pantaloons was demerged from Pantaloon Retail (now known as Future Retail) and transferred toPeter EnglandFashions and Retail, a unit of Aditya Birla Nuvo.The company has changed the objects of the company to include all kinds of goods, materials and items, and services.Name of the company was changed from Peter England Fashions and Retail to Pantaloons Fashion and Retail after April 23,2013."The demerger of demerged entity to the company will expand the variety of offerings in the market and complement existing portfolio," it said.Pantaloons posted a loss of Rs 68.89 crore on a income of Rs 1,285.14 crore in financial year 2013.The company owns 8 private brands which contribute 22% of sales.

LITERATURE REVIEWCRM implementation in Retail Prof. (Dr.)CKDash[footnoteRef:2] [2: ]

Mr. Tapas RanjanMoharana[footnoteRef:3]** [3: ]

Mr. NiharMohapatra[footnoteRef:4]*** [4: ]

Today Customer Relationship Management (CRM) has become a strategic initiative in most companies. Reason being the growth of service sectors in general and growth of Organized Retail in particular, advancement of digital technology, the shift among companies from market share to share of wallet. CRM to some scholars and professionals means relationship marketing & loyalty programme, to others data mining and analytics, and to still others, it means a philosophy and way of life for the company to deliver customer satisfaction. The smart company works for customers. They have a long term approach to business. Customer retention is the purpose of their business. Profit is just the by-products. The challenge of CRM is not to build customer loyalty, it is the fact the reverse: to build customer loyalty, it is in fact the reverse: to build the organizations loyalty to the customer. You cannot retain customers if they are not happy with your product or overall experience offered. Thus, a combination of customer delight & loyalty is essential. If you want your company to remain a market leader, focus on customer loyalty. This can be achieved by employing the mantras of appraisal, reward, and campaign. In this paper an attempt has been made to study the significance CRM in organized retail sector. How to make a successful CRM strategy /model for organized retail sector?

Key words: Customers Relationship Management( CRM), Customer Loyalty, Customer Retention, Customer delight.

the business enterprise has two and only these two basic functions: marketing and innovation-Peter Drucker, Management (1973),

Retailing is becoming the blue-eyed sector of the new emerging LPG economy employing nearly 21 million people and generating revenues of approximately Rs. 9,30,000 Crore. Organized retailing accounts only 3-4 percent of the entire retailing activities in the country. Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape, India is all set experience the phenomenon of a global village India presents a grand opportunity to the world at large, to use it as abusiness hub. To attract customers, organized retail stores need to generate value and differentiate their outlets from otherunorganised retail stores. As rightly said, Retail is Detail so organized retail players need to target their markets and manage the customer experience in best possible ways. This study analyzes the various factors that determine the customer experience in retail outlets. The study identifies strategies to retain and attract more customers by creating a memorable shopping experience. Every one of us does render some service or other. If we cultivate the habit of doing this service deliberately our desire for service will steadily grow stronger, and will make not only our own happiness but that of the world at large. Retail, according to Concise Oxford English Dictionary is the sale of goods to the public for use or consumption rather than for sale. Retailing is the business activities that add value to the product & services, sold to the customers for their personal or family use. Considered to be one of the most happening industries after IT, retailing industries has many big players competing with each other to gain an edge over the other. Owing to a steady increase in private consumption, retailing has become one of the hottest sectors of the emerging economy

The objectives of the study are:1. To know the retail scenario in India in a nut-shell.

2. To identify areas for improved customer retention to attract new customers by offering a perfect environment to shop.

Methodology:For this study a structured questionnaire has been developed and administered among the customers who visit the Formats of Pantaloon future group, Vishal Mega Mart &Subhiksha, Mother Diary, Shoppers Stop, Spencer & Reliance Fresh in NCR region of Delhi, Noida, Gurgaon from January March 2008. Total number of sample taken is 250.

Sampling procedure applied for the study are conveniences sampling particularly the customers who visited the store during the time of survey and randomly from the different formats of organized retail available the scope of the study.

Retail Scenario in India:Retail innovation has been unprecedented in the last decade of the twentieth century. Lee and Vryza argued that retailing had not only .been a highly innovative force in the Market place (1994, p.54) but also had a much wider impact on society overall. However they expressed concerned about the dearth of literature on retailing innovation, in contrast to areas where a richer body of work had developed. Merrilees and Miller (1996) reviewed the dramatic transformation retailing in Australia from 1946 onwards. They discussed innovative retail formats and what they termed the ever-changing nature of retail competition (1996, p.18). Retail innovation will be manifested in a variety of forms. Such formats range from minor changes in the retail mix, through minor and major makeovers, related and unrelated brand extensions, novel combinations such as supermarketsand in-store banking, and new service delivery systems such as online retailing. An important paper by Rosenberger III Merrilees and Miller (1999) proposes a new typology for retail innovations, with seven types classified. These include brand extensions within an allied field (McCafe by McDonalds) and brand extensions in an unrelated field. Retailing is evolving into a global high-tech business. Retail is on a roll in India. The entry of global retailers will change the landscape of retail in India. India has emerged as the most attractive destination for mass merchants outperforming China for the second year in row, according to global consulting firm A.T Kearney. A.T. Kearneys Global Retail Development Index (GRDI), which ranks 30 emerging countries based on a set of 25 variables including economic and political risk, retail market attractiveness and retail saturation levels, has retained Indias position at the top. The Indian retail market is gradually but surely opening up, while Chinas market becomes increasingly saturated. With the dawn of 21st century, as we are in an economy showing signs of splendid rise during past years and promising the same for the coming future, retail industry as a whole has been described by many to be a sunrise industry more specifically in Indian context. One report from IMAGES- KSA Technopak estimates organized retail in India of worth Rs 350 billion though currently constituting only 3.4 percent of retail sales promises to grow at over 30% and is projected to cross Rs. 1000 billion mark by 2010. In addition to that India tops A T Kearney list of emerging markets for global retailers to enter and the Indian economy is also expected to overtake Britain in 2022 and Japan in 2032 to become the third largest economy in the world after China and US.

The growth of the Indian economy is no manifesting itself in the growing purchasing power of its citizens. The demand for a variety of goods, both consumables and durables, is expectedly growing significantly. Easier availability of goods, consequent to lowering of import duties and liberalization of trade regulations has also added to the appetite for purchases. A ten or twelve per cent increase in the economys disposable income and a much higher one in urban areas is also reflecting itself- in the way goods and services are bought and sold. Modern retailing or organized retailing, in contrast to the traditional small and stand-alone stores which dominate the Indian Market, is growing today by over 25% annually.Standing on the threshold of a retail revolution and witnessing a fast changing retail landscape, India is all set to experience the phenomenon of a global village. India presents a grand opportunity to the world at large, to use it as a business hub. A Vibrant Economy, India tops A T Kearneys list of emerging markets for global retailers. The second fastest growing economy in the world, the 3rd largest economy in terms of GDP in the next 5 years and the largest economy in PPP terms after USA, China, and Japan, India is rated among the top FDI destinations. India also tops the annual list of most attractive countries for international retail expansion, according to A.T. Kearneys Global Retail Development Index 2006. It is very rightly reported that the Indian retail market is gradually but surely opening up, even as other markets become increasingly saturated. India is at the peak of attractiveness for retailers right now as its USD 270 billion retail market continues to grow at the rate of 13 percent and all indicators seem to suggest that there can only be further acceleration from her on. Indias miniscule organized retail market has gained the momentum required to propel it to the next phase of real rapid expansion: at prevailing prices, this segment grew 42 percent in 2006.

The Retail Revolution: Retail revolution, which is happening in India today has one important and inevitable logic, i.e. with the growth of the country, more people have started buying more things for which products have to be available and subsequently requiring more shelf space. The landscape of cities are witnessing many changes in terms of new generation of retail outlets, which are fuelled by huge sums of money being poured in to real estate, modern logistics and most importantly creation of new retail brands. It would be important to note that the retailing industry in India is still a Protected Industry. It is one of the few sectors which still have restrictions on FDI. Given the current trend in liberalization, it will not be long before the retailing sector is also thrown open to international competition. Indian Retail has witnessed rapid transformation in many areas of the business by setting scalable and profitable retail models across categories. Indian consumers are rapidly evolving and accepting modern retail formats overwhelmingly. The traditional markets are fast loosing their shine, making way for new formats such as departmental stores, hypermarkets, supermarkets and specialty stores. Malls are coming up not just in metros but also in second- categories cities, introducing the Indian consumer to a shopping experience like never before. These modern shopping complexes are becoming the destination point for shoppers as well as window-shopping, entertainment, food, all of it under one roof. In India among 15 million retailers, most of them owning small mom and pop outlets, we are likely to have no less than 100 million square feet of shopping, centre space by 2007-08, generating retail sales to the tune over Rs. 50,000crore. Reliance Retail alone is taking about 3.5 to 5 million square feet of retail space by March 2007, for only one of its retail verticals. Large corporate groups like ITC, reliance,, Tata, Raheja and existing large retail retailers like Pantaloon Retail India limited, the jubilant group and others are infusing staggering amounts of capital into the organized retail sector and at the prevailing pace of development it is estimated that India will have close to 50million square feet quality retail space by the end of 2007.Like Wal-Mart has formalized its India entry and other leading global retail power houses are also busy working out their entry plans, we can safely say that an additional 700 million square feet of quality retail space from the existing level will be required by 2010 there will be an investment of over Rs. 20,000crore in quality retail space across the country.Already, special stores are proliferating, selling everything from books to healthcare and from home furnishings to apparel. But ultimately it will be the large-format supermarket and hypermarket stores that will account for the largest share of investment. Industry studies indicates that todays total of 50 hypermarkets will grow to 1,200 across India by 2011, at which time there will be 3,000 supermarkets twice as many as there are today. India has witnessed ten-fold growth in four years, total mall space has increased from just about two million square feet in 2012 to over 21 million square feet in 2013.Corporate houses like the Reliance Industries, A V Birla Group, Tata Group, ITC & others have announced grandiose plans for investment in retail sector; worlds largest retail Wal-Mart also inked its India entry joint venture deal with telecom major Bharti while Metro is planning rapid expansion all this should ensure large inflow of funds for the retail sector.

Table-I : Indian Retail Market 2013:INDIA RETAIL MARKET 2013 (at current Prices)

Retail SegmentsIndian Retail Value (Rs. Crore)Organized Retail (Rs.Crore)% Organized in 2006

Clothing, Textiles & Fashion113,50021,40018.90%

Jewellery60,2001,6802.80%

Watches3,9501,80046%

Footwear13,7505,20037.80%

Health & Beauty Care Services3,80040010.60%

Pharmaceuticals42,2001,1002.60%

Consumer Durables &Home appliances48,1005,00010.40%

Mobile Handsets & Accessories21,6501,7408.00%

Furnishings, Utensils, (Home & Office)40,6503,7009.10%

Food & Grocery743,9005,8000.80%

Catering Services (F&B)57,0003,9406.90%

Books, Music & Gifts13,3001,68012.60%

Entertainment38,0001,5604.10%

Total1,200,00055,0004.60%

(Source: India Retail Report 2014)Table 1 depicts that food and grocery segment is having maximum Retail value (Rs.743, 9000 Crore) which is followed by Clothing, Textile & Fashion (Rs. 113,500Crore).But the organized grocery segment is only able to attract 0.8 percent of the totally grocery market. This indicates the growth of organized retail in grocery items is encouraging & fast moving. On the other hand footwear segment is having growth rate in 2006 i.e. 37.80 followed by Clothing, Textiles & Fashion (18.9%) and Books, Music and Gifts (12.60%).

Figure I: Indian Retail Value (Rs. In Crores)

Economic Impact of Indian Retail Sector:India is the eighth largest retail market in the world and is poised for explosive growth. The retail market is growing by leaps & bounds and is expected to touch USD 637 billion in 2015, with a terrific growth rate of 50 per cent. Almost half of the Indian retail market in 2006 was in rural areas. The Indian retail industry at about USD 300 billion, accounts for nearly 37 per cent of Indias GDP. The Retail market is poised for explosive growth rate of 8 per cent. That does mean higher growth for Indian retail industry due to increase in disposable.

Figure II: The Indian Retail Opportunity GDP at current prices (US$)

The high private consumption is one of the major factors for the growing retail industry. Over 62 % of the private consumption share is towards the retail sector, of which 55% is the contribution from the rural areas, indicating the increasing significance of retail presence in rural areas.

Implementation of CRM in Retail: The building & management relationship with customers has always been a key approach to marketing practices in general & retailing in particular. AMA (1995), Relationship marketing is marketing with the conscious aims to develop & manage long term and/or trusting relationship with customers, distributors, suppliers, or other parties in marketing environment. A band of loyalty is likely to develop between shopkeeper and the regular customer. Pathmarajah (1993) defines relationship marketing as the process where the seller and the buyer join a strong personal, professional and mutually profitable relationship over a time. Following are few suggestions in order to maintain long term relationship with the customers in an organised retail.

1. Retailers have identified generating interest in a uniformed new customer is more difficult than to retain the existing customer. It is easier to satisfy an existing customer than to attract a new customer to the store. A satisfied customer is better form of advertising. A satisfied customer will purchase more and more product from your store.

2. Through retaining a customer your can make a customer satisfied. A satisfied can be referral to a new customer. Instead of running after new customer to your store you can make your existing customer retain by which he can be referral to new customer.

3. Good relationship with customers can result in good work of mouth from successful exchanges and minimal bad work-of-mouth in the event of unsuccessful exchanges. Service quality cracks can often be papered over where good relationships have existed previously.

4. Close and long term relationships with the customers imply continuing exchange opportunities with existing customers a lower marketing cost per customer.

5. Strong customer relationship with a high degree of familiarity and communication on both sides can generate more practical ideas from customers and contact personnel.

6. Loyalty programme like special discount by issuing loyalty cards in order to provide them better service and other special benefit if any can be provided to them.

7. The last but not least suggestion to maintain CRM in retail is to think to provide Every Little Helps to the customer. Think always how are you going to do a better job for them? No doubt it will change the behaviour of your retail business.

8. Encourage mutual loyalty.

9. Create value to the customers to earn their lifetime loyalty.

REFERENCE:

1. Levy, Michael &Weitz, Barton A. (1995) Retailing Management, United States of America, IRIWIN.2. Indian Retail Report (2007) Images F&R Research, Images Multi Media Pvt. Ltd. Delhi. 3. Gilbert David, (2004) Retail Marketing Management, Pearson Education, Delhi.4. Gupta, S.L (2007), Retail Management, an Indian Perspective, Text & Cases, Wisdom Publication, Delhi. 5. Lamba, A J. (2003), The Art of Retailing, Tata McGraw Hill, New Delhi.6. Ogden R. James & Ogden T. Denise, (2005) Integrated Retail Management Indian Adaptation Biztantra, An imprint of Dreamtech Press, New Delhi.7. Seth Rakesh& Seth Kirti, Creating Customer Delight, The how and why8. Underhill, Paco (2004), Call of the Malls, Simon & Schuster, New York9. Levy, Michael &Weitz (2003), Barton A, Retailing Management, Fifth Edition, Tata McGraw Hill Publishing Company Limited, New Delhi10. Pradhan, Swapna (2007), Retailing Management, Text & Cases, Second Edition, Tata McGraw Hill Publishing Companies, New Delhi.Web references:a. www.retailyatra.comb. www.about.retailindustry.comc. www.imagesretail.comd. www.ibef.orge. www.businessworld.comf. www.domain-b.com

OBJECTIVE OF CRM IN RETAIL TO STUDY THE CURRENT PRACTICES OF CRM IN RETAILING. TO FIND OUT THE IMPACT OF CRM ON THE RETAIL SHOPS. TO STUDY THE FACTORS AFFECTING THE CRM PRACTICES. TO STUDY THE METHODS AND TOOLS FOR IMPLEMENTING CRM IN RETAIL SECTOR. TO STUDY THE NECESSITY OF CRM IN RETAIL SECTOR AS WELL AS SUGGESTING THEM THE WAYS FOR SUCCESSFULLY IMPLEMENTING IT.