CHAPTER -1

INTRODUCTION

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 INTRODUCTION
 
CUSTOMER RELATIONSHIP MANAGEMENT 
A customer is the most important person ever in this office….. In person or by mail
A customer is not dependent on us…… we are dependent on him.A customer is not
someone to argue or match wits with. Nobody ever won an argument with a
customer.
A customer is a person who brings us his wants. It is our job to handle then
profitably to him and to ourselves. Customer relation as a tool for identifying way to
create more customer value & satisfaction. Every firm is a synthesis of activities
that are performed to design, produce, and market, deliver, and support its product.
Many companies are intent on developing stronger bonds with their customers-called
Customer Relationship Management (CRM) . This is the process of managing
detailed information about individual customer and carefully managing all the
customers "touch points" with the aim of maximizing customer loyalty.

A successful business must have satisfied customers. We will treat them as we

would wish to be treated ourselves. They require an excellent service and our work
just therefore we undertake with our customers as the key focus, providing better
products and services then our competitors. We will measure the quality of service
and look for continual improvements. The aim of Customer Relationship
Management (CRM) is to produce high customer equity. Customer equity is the total
of the discounted lifetime values of all of the firm's customers. Clearly, the more
loyal the customer, the higher the customer equity, rust, Zenith, and Lemon
distinguish three drivers of customer equity; value equity, brand equity, and
relationship equity  The main objective is to determine the current relationship
management level of the customers with all aspects in regard to “Spencer’s Motors”.

Customer Relationship Management

Customer relationship management (CRM) is perhaps the most important concept of
modern marketing. Until recently, CRM has been defined narrowly as a customer
data management activity. By this definition, it involves managing detailed

2
information about individual customers and carefully managing customers “touch
points” in order to maximize customer loyalty.
More recently, however, customer relationship management has taken on a broader
meaning. In this broader sense, Customer relationship management is the overall
process of building and maintaining profitable customer relationships by delivering
superior customer value and satisfaction. It deals with all aspects of acquiring,
keeping, and growing customers.

CRM consists of sophisticated software and analytical tools that integrate customer
information from all sources, analyze it in depth, and apply the results to build strong
customer relationships. CRM integrate everything that company’s sales, service, and
marketing teams know about individual customers to provide a 360-degree view of
the customer relationship.CRM analysts develop data warehouses and use
sophisticated data mining techniques to unearth the riches hidden in customer data.
A data warehouse is a company wide electronic data base of finely detailed customer
information that needs to sifted through for gems.

The purpose of a data warehouse is not just to gather information, but to pull it
together into central, accessible location. Then, once the data warehouse brings the
data together, the company use high-powered data mining techniques to sift through
the mounds of data and dig out interesting finding about customers. Such data
systems can give a company a big competitive advantage.

By using CRM to understand customers better, companies can provide high levels of
customer service and develop deeper customer relationships. They can use CRM to
point out high-value customers, target them more effectively, cross-sell the
company’s product, and create offers tailored to specific customer requirements.
CRM benefits don’t come without cost or risk, not only collecting the original
customer data but maintaining and mining it. An estimated half or more of all CRM
efforts fail to meet their objectives. The most common case of CRM failures is that
companies mistakenly view CRM only as a technology and software solution. But
technology alone cannot build profitable customer relationships. .

Once thought of as a type of software, CRM has evolved into a customer-centric

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philosophy that must infiltrate an entire organization. There are three important key
elements to a successful CRM initiative: people, process, and technology. The
people throughout a company, from the CEO to each and every customer service
representative need to buy in to and support CRM. A company's business processes
must be reengineered to strengthen its CRM initiative, often from the view of “How
can this process better serve the customer?” Firms must select the right technology to
drive these improved processes, provide the best data to the employees, and be easy
enough to operate that users won't hesitate to use. If one of these three foundations is
not solid and sound, the entire CRM structure will crumble.
A brief introduction to the Customer or Client Relationship Management is that it’s a
strategy used to learn more about customers' needs and behaviors in order to develop
stronger business relationships with them. After all, good customer relationships are
the heart of any business success. There are many technological components to
CRM, but thinking about CRM in primarily technological terms is a mistake. The
more useful way to think about CRM is as a process that will help bring together lots
of pieces of information about customers, sales, marketing effectiveness,
responsiveness and market trends together to complete your business puzzle in order
to bring the harmony into your work force.
If client relationships are the heart of business success, then the CRM is the valve the
pumps a company's life blood. As such, Customer Relationship Management is best
suited to help businesses use people, processes, and technology to gain insight into
the behavior and value of customers. This insight allows for improved customer
service, increased call center efficiency, added cross-sell and upsell opportunities,
improved close rates, streamlined sales and marketing processes, improved customer
profiling and targeting, reduced costs, and increased share of customer and overall
profitability. Understanding Client Relationship Management CRM principles and
practices is critical to any business success. Salesboom Client Relationship
Management applications are geared towards helping companies streamline
processes and increase revenues whil keeping clients happy.
Every business organization depends on customers for sustenance, the question is
how to create and maintain customer satisfaction. Every business communicates with
their clients in many different ways, especially in our technology rich and
information based society. How we treat all of this information is where CRM plays
a key role.

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CRM Software acts as a central repository of information on your clients and
potential clients. Customer relationship management software hones in on the
relationship. As in many publications of late on one to one marketing, cyclical
selling and counselor selling the mainstay is the relationship and how we recognize
it.

Salesboom.com Online CRM tools use technology to organize information you.

Operational CRM
Operational CRM means supporting the "front office" business processes, which
include customer contact (sales, marketing and service). Tasks resulting from these
processes are forwarded to resources responsible for them, as well as the information
necessary for carrying out the tasks and interfaces to back-end applications are being
provided and activities with customers are being documented for further reference.
Operational CRM provides the following benefits:

Delivers personalized and efficient marketing, sales, and service through multi-
channel collaboration 

Enables a 360-degree view of your customer while you are interacting with them 
Sales people and service engineers can access complete history of all customer
interaction with your company, regardless of the touch point 

Analytical CRM
In analytical CRM, data gathered within operational CRM and/or other sources are
analyzed to segment customers or to identify potential to enhance client relationship.
Customer analysis typically can lead to targeted campaigns to increase share of
customer's wallet. Examples of Campaigns directed towards customers are:
● Acquisition: Cross-sell, up-sell 
● Retention: Retaining customers who leave due to maturity or attrition. 
● Information: Providing timely and regular information to customers. 
● Modification: Altering details of the transactional nature of the customers'
relationship. 

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 Analysis typically covers but is not limited to:
Decision support: Dashboards, reporting, metrics, performance etc. 
Predictive modeling of customer attributes 
Strategy and research. 
Analysis of Customer data may relate to one or more of the following analyses:
Campaign management and analysis 
Contact channel optimization 
Contact Optimization 
Customer Acquisition / Reactivation / Retention 
Customer Segmentation 
Customer Satisfaction Measurement / Increase 
Sales Coverage Optimization 
Fraud Detection and analysis 
Financial Forecasts 
Pricing Optimization 
Product Development 
Program Evaluation 
Risk Assessment and Management 
Data collection and analysis is viewed as a continuing and iterative process.
Ideally, business decisions are refined over time, based on feedback from earlier
analysis and decisions. Therefore, most successful analytical CRM projects take
advantage of a data warehouse to provide suitable data.
Business Intelligence is a related discipline offering some more functionality as
separate application software.

Collaborative CRM
Collaborative CRM facilitates interactions with customers through all channels
(personal, letter, fax, phone, web, e-mail) and supports co-ordination of employee
teams and channels. It is a solution that brings people, processes and data together so
companies can better serve and retain their customers. The data/activities can be
structured, unstructured,conversational, and/or transactional in nature.
Collaborative CRM provides the following benefits:
• Enables efficient productive customer interactions across all communications
channels 

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• Enables web collaboration to reduce customer service costs 
• Integrates call centers enabling multi-channel personal customer interaction 
• Integrates view of the customer while interaction at the transaction level 

Customer Relationship Management

Customer relationship management (CRM) is perhaps the most important concept of
modern marketing. Until recently, CRM has been defined narrowly as a customer
data management activity. By this definition, it involves managing detailed
information about individual customers and carefully managing customers “touch
points” in order to maximize customer loyalty.

More recently, however, customer relationship management has taken on a broader

meaning. In this broader sense, Customer relationship management is the overall
process of building and maintaining profitable customer relationships by delivering
superior customer value and satisfaction. It deals with all aspects of acquiring,
keeping, and growing customers.

To over come such problems, many companies are now turning to customer
relationship management (CRM) to manage detailed information about individual
customers and carefully managed customer touch points in order to maximize
customer loyalty. In recent years, there has been an explosion in the number of
companies using CRM. U.S companies spent an estimated $ 42.8 billion last year on
CRM systems from companies such as Siebel Systems, Oracle, Micro Soft and SAS
and spending is expected to increase by 11.5% a year through 2007.

CRM consists of sophisticated software and analytical tools that integrate customer
information from all sources, analyze it in depth, and apply the results to build strong
customer relationships. CRM integrate everything that company’s sales, service, and
marketing teams know about individual customers to provide a 360-degree view of
the customer relationship.

CRM analysts develop data warehouses and use sophisticated data mining
techniques to unearth the riches hidden in customer data. A data warehouse is a

7
company wide electronic data base of finely detailed customer information that
needs to sifted through for gems.

The purpose of a data warehouse is not just to gather information, but to pull it
together into central, accessible location. Then, once the data warehouse brings the
data together, the company use high-powered data mining techniques to sift through
the mounds of data and dig out interesting finding about customers. Such data
systems can give a company a big competitive advantage.
By using CRM to understand customers better, companies can provide high levels of
customer service and develop deeper customer relationships. They can use CRM to
point out high-value customers, target them more effectively, cross-sell the
company’s product, and create offers tailored to specific customer
requirements.CRM benefits don’t come without cost or risk, not only collecting the
original customer data but maintaining and mining it. An estimated half or more of
all CRM efforts fail to meet their objectives. The most common case of CRM
failures is that companies mistakenly view CRM only as a technology and software
solution. But technology alone cannot build profitable customer relationships. “CRM
is not a technology solution-you can’t achieve … improved customer relationships
by simply slapping in some software’s ”, says a CRM exports.Instead, CRM is just
one part of an effective overall customer relationship management strategy.
The concept of relationship management
At the broadest level, the function of an enterprise’s marketing activities is to bring
to buyers and sellers together, to create customers. while getting customers is
fundamental to business success, keeping customers is more important. successful
firms work build long term relationships with their customers. the term relationship
management (relationship marketing)communicates the idea that major goal of a
business enterprise is to engage in interactions with customers over the long term.
Consider the local butcher of years ago. When a female customer walked in to the
shop, the butcher said hello and called the customer by name. the butcher knew how
customer wanted her steaks and chops trimmed. He knew her family always grilled
hamburgers on weekend and those they preferred ground sirloin over ground chuck
although he specialized in meats; he also stocked hamburger buns so is customer
needed make only one stop. she appreciated the personalized service she received

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both the butcher and the customer profited from this loyalty relationship.The old-
fashioned butcher understood his customers and promptly responded to their needs.
in recent years, contemporary marketers have realized that they can learn a lot from
shop keepers of the past. Contemporary markets recognize that, once a sale occurs,
the firm must stress managing relationships that will bring about additional
exchanges. Making a sale should not be viewed as end of the marketing process, but
rather as the start of the organization’s relationship with a customer.

Successful small firms, such as the traditional butcher, have to be relationship

oriented. They know that they customers – buyers who purchase promises of
satisfaction- prefer to be business repeatedly with people and organizations’ they
trust. They know that establishing relationships with customers can increase long-run
sales and reduce marketing cost. They know that not all customers want the same
product and services. They know that two individuals may buy the same product for
different reasons. they know that marketing to existing customers to gain repeat
business provides benefits to both the organization and customers. in summary, a
business enterprise, organization, or firm must focus on both getting and keeping
customers. It is the marketer’s job to use the resources of the entire organization to
create, interpret and maintain the relationship with customers.It seems important to
note that all academic and practitioner-oriented experts see a gap between the
relationship management and practical application. Philosophically, relationship
management addresses the heart of marketing and, hopefully, the heart any
organization-its desire to profitably meet the life needs of customers better then the
competition does. At a tactical level, when inappropriately applied relation ship
management uses information technology to spawn short-term loyalty schemes that
are often opportunistic and may create loyalty to the incentive(i.e., frequent flyer
points), as opposed to the provider(the airline).thus it is to important to understand
both the philosophy and the tactics of customer relationship management.

A customer relationship management (CRM) system by its simplest definition, is a

process to compile information that increases understanding of how to manage an
organization’s relationship with customers. in this simple view, a CRM system
consists of two dimensions, analysis of action. More formally, CRM is business
strategy that uses information technology to provide an enterprise with a

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comprehensive, reliable, and integrated view of its customer base so that all
processes and customer interactions help maintain and expand mutually beneficial
relationships.

A CRM system brings together lots of pieces of information about customers,

customer characteristics, sales transactions, marketing effectiveness, responsiveness,
and market trends. for example, consider, the united services automobile
association(USSA),a company that offers insurance and financial services to more
than 3.3 million customers who share a mutual background: the military.(nearly 90
percent of all active duty military officers are members, and less than 1%ever
leave.)
USAA’s CRM approach relies of information technology to emphasize aerosolized
service, mainly via the company’s 32 telephone call centres, where nearly 10,000
customer service representatives filed over 4,00,000 calls each day. When a call
comes in, the employee request the member’s account number and then opens a
screen listing a chronology of all previous contact and purchases. As conversation
proceeds, the USSA customer service representative might access the firm’s
enterprise need based sales service tool, which generates a customized profile of
services that the member might find useful. For instance, if the member lives in a
flood plain yet doesn’t have flood insurance, the service representative can inform
the customer about the benefit of flood insurance.

An effective CRM system describes customer relationship in sufficient detail so that

all aspects of the organization can access information, match customer needs with
satisfying product offerings, remind customers of services requirements, know what
other product a customer has purchased, and so forth. A bank’s CRM should give a
service representative in its telephone all centre the ability to retrieve a complete
record of a customer’s company interactions seconds after the customer provides
identification information. Many CRM system allow customers themselves to
directly access information about their transactions with a company

Potential Returns Of Crm Systems

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Proponents of CRM systems and the traditional concept of marketing view the
customer as the pivotal point around which the business revolves. A fundamental
principle of marketing is that customers are different. Some customers cost a great
deal to attack and great deal of service while others require very little service and
seem anxious to learn about organization. A basic tent is that different customers
represent different levels of profit of firm.Successful organization attempt to define
characteristics of the best customers, to then estimate the lifetime value of such
customers, and to adjust marketing strategy accordingly . Best customers represent a
proportion of all customers in an industry who provide profitable interactions, cost
little to care for, and who tend to spread positive word of mouth information about
the organization. Calculating value over time as a return of the firms investment in
acquiring the customer requires as a comparison of revenue and costs how much did
we spend achieve a given level of revenue.There are potential benefits as well as
cost associated with CRM system for both organization and customers.
Organization, or the CRM champions within the organization, tends to think of all
the benefits of the system the promise of increased revenues and lowered cost.
Customers, in contrast, may first think of the cost associated with the system and
have to be reminded of some of the benefits. For example, if the customer orders one
product from supplier on the internet and there and suddenly 2,000 messages from
firms that sell related goods, the customer may think twice before placing another
order on the web or with that organization. Thus,it can be helpful for organization to
consider the benefits and disadvantages of CRM as they invest in their development.

Potential Benefits Of Crm System To The Oraganization

The satisfaction of consumers need and wants is the justification for an organization
existence. An effective CRM system is away for the organization to develop a
customer focus that has impact that allows the organization to hear the customer
voice. A customer focus means that the organization is ready to view the purchasing
process from the customer’s point of view, to empathize with the customer’s
feelings, and to treat the customer’s information with great care. If organizations can
enough about individual customer than the customer should be satisfied, trusting,
and willing to talk positively to others about the organizations wonderful approach

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the system should enable the organization to retain regular customers as it acquires
new ones.
Retaining customers and establishing customer loyalty are major objectives of CRM
approaches. The cost of acquiring a customer can be high. An old business adage
says “it costs six times as much to a new customer as it does keep an old customer.”
Although the figures vary by industry an increase is passing year, the point is valid.
There are no acquisition costs existing customers who tend to by the same item
again and we seek other related products or services from trusted organization.
Higher customer retention rates will generally increase revenues and, in most cases,
reduce cost. Customer retention simply means that firms satisfies customers and/or
offers variety such that the customer comes back and repeats transaction with the
same organization.

Cross selling is the marketing of complementary products to existing customers. a

retail bank that has checking account customer may market safety deposit box or a
car loan to his customer. Over time, it’s able to get the customers home mortgage
and equity loan business. One aspect of cross selling is bundling, in which a
combination of products is sold as bundle at a price lower then the total of individual
prices. for example, south-western bell telephone’s local telephone service offers the
work call return, call blocker, call forwarding, call waiting ,caller ID, and several
offerings for one low monthly rate. Up selling is the marketing of higher value of a
products to new or existing customers, an insurance company may convince a
customer to up grade coverage, a credit card company may try to persuade a
customer to upgrade to the platinum card, or a furniture store may attempt to
convince a customer to purchase the more expensive versions a table or couch.

An organizations experience the benefits of the customer focus-retention of loyal

customer and greater share of customer- the long term profit picture should also
improve .since it’s less costly to retain a customer then attract to a new one, CRM
system that actually enhance loyalty reduce expenses. as sales related products and
service increase, revenues rise. The beauty of customer focus is the emphasis its
places on the way that organizations collect use information as a fundamental tool in
creating value for customers. However to calculate the return on investment in CRM
system, organizations must also consider costs.

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Potential Costs Of Crm Systems To The Organizations
CRM approach is that it allows to marketers to send the right message about the right
offers to the best customers at the right time. Achieving that level of quality from a
CRM system may require a significant investment in the organizations information
technology infrastructure (served based systems, software licenses and updates,
firewalls for security, personal to install and maintain systems training for system
users in different disciplines, etc)the IT infrastructure is the processing capacity
required to fulfil customer needs.

The concept of a building technology infrastructure can apply to cities and towns as
well as firms. With significant well processes, the system well must available 24
hours each day for 7 days of each week for 365 days each and every year. If the
organization is located in an area that experiences intermittent power outages, it may
loss creditability, customers and the possibility future repeat sales unless its invest in
battery support and fail safe back up systems.

Another significant cost in developing an effective CRM system is the prices process
of change. Process change implies an alteration in the habitual pattern for
accomplishing a task, implementing new system and changing traditional thought
pattern both be very difficult to accomplish. If the CRM approach is viewed, for
example, as simply a way to provide financially based incentives, customer loyalty
may not be develop, and , in fact , the firm may damage its brand image as customer
anger develops. As competitors match the financial incentives, the entire industry
may experience higher operating costs for the same level of sales a decline
probability “it takes a much deeper philosophy of relationship development based on
added value delivery to sustain relationships at effective level” .

Despite the best efforts of organizations to design effective CRM system, it is people
who must implement those system and customers who must appreciate them, use
them with ease and feel safe in the process. Organization must appreciate “the dance
of change” the inevitable interplay between growth and limits/ benefits and cost

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positive outcomes are accrue. CRM system holds the promise of growth and benefits
but the implementation of system carries with its limits, cost, and other risks.
Potential Benefits Of Crm System For Customers
Customer may also profit from CRM approaches and relationship marketing efforts.
First the continuity derived from relationship with the same seller simplifies the
buying process. Continuity implies the stable connection or linkage. A Honda
advertisement says, “Life is full of complicated decisions. Simplifies” this
advertisement reflects and understanding that people want their buying decisions to
be easier. Many buyers do not to want to evaluate too many factors when choosing
among alternatives. If a firm can consistently meet a customer’s need over time, the
continuity of the exchange serves to simplify the process and reduce the risk of
dealing with new supplier.
Buyers become regular customers because they to business with organizations that
provide a consistent level of product or service quality. For example, most people are
loyal to their hairdressers or barbers.

NEED FOR THE STUDY

● Customer relationship management plays a major role for the growth of the
company in the modern market scenario.
● The purpose of customer relation is not only for retaining the customers but
also attracting new customers, increasing the sales and maintenance of brand
awareness.
● Customer perceptions attitudes and views regarding the products and
services, along with suggestions assume greater importance in the light of
new entries and potential competitors, this study is an attempt that directs to
facilitate the management in marketing their future decisions in promoting
and creating a good image in the society.

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OBJECTIVES OF THE STUDY
1. To determine current relationship management level of the customers with
All aspects of their delivery.
2. To determine key dissatisfaction areas, if any.
3. To identify different customers needs in regard to a Spencer’s
4. To identify what type of marketing strategy is suitable for the company to
Reach the targeted customers.
5. To enable the company's customer care department to handle the customer's
Queries more effectively and efficiently.
6. To enable the sales team to promote sales effectively through maintaining
Customer relation.
7. To generate new leads through customer satisfaction.

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SCOPE OF THE STUDY
 The scope of the study is to identify the customer relationship management
level towards "Spencer’s".
 The study was conducted for a period of 45 days covering various places in
Hyderabad &Secunderabad city.
 Primary data was collected from customers.
 Secondary data was collected from company manuals, magazines and
websites and so on, the study gathers information about the customer's
relation maintaining in the share of "Spencer’s " with regard other
competitors and also to make the company to provide better customer
services.
 

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RESEARCH   METHODOLOGY
QUESTIONNAIRE OR SURVEY METHOD
The survey technique is intended to secure one or more items of information from a
sample of respondents who are representatives of a larger group. The information is
recorded on a form known as questionnaire. As data are gathered by asking
questions from persons who are believed to have desired information, the method is
also known as questionnaire technique.

Reasons for wide use of this method.

It can secure both qualitative and qualitative information directly from the
respondents.
It is the only method of directly measuring attitudes and motivations.
It is quite flexible in term of the types of data to be assembled, the method of
collection or the timing of research.
A questionnaire is simply a formalized set of questions for eliciting information. As
such, its function is measurement and it represents the most common from of
measurement in marketing research. Although the questionnaire generally is
associated with surveys, it is also frequently the measurement instrument in
experimental designs as well. When a questionnaire is administered by means of
telephone or by a personal interview, it often is termed as interview schedule, or
simply schedule.

Data Collection
The collection of information is ascertained through two principal Sources:
1).   Primary Data
2).    Secondary Data

1.    Primary Data
Meaning: primary sources of data are the data which needs the personal efforts to
collect it and which are not readily available. The collection of this data requires lot
of time and efforts.
Following are the few ways in which the primary data can be collected:

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i )   Questionnaires:  Its set of questions on a sheet of paper was being given to the
respondents of fill it, bases on which the data was interpreted.
ii )  Direct interviewing: Direct interviewing involved the process where I asked the
questions directly to the customers and I got the feedback.

 2.  Secondary Data
Secondary sources are the other important sources through which the data were
collected. Any data which have been gathered earlier for some other purpose are
secondary data in the hands of researcher.
Two sources of secondary data:
Internal sources.
External sources.
Internal sauces:
✔ Accounting records.
✔ Sales force reports.
✔ Miscellaneous reports.
✔ Internal experts.
External sources:
✔ Computerized data base
✔ Associations
✔ Govt. agencies.
✔ Directories.
✔ Published sources.
✔ External experts.

The secondary sources helpful for study were

Textbooks like marketing management research methodology advertisement    and
sales promotion etc.                  
● Internet was made use for the collection of the data.
● Newspapers were also referred.
● Business magazines were referred.
● Some journal was also referred 

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LIMITATIONS OF THE STUDY
The study is subjected to the following limitations.
1. A portion of the respondents contacted were not precise and genuine in
giving their opinion of satisfaction or dissatisfaction. If accidentally they had
badly experience at one instance, they would mark very poor.
2. To measure the exact level of customer relation the sample size was small.
3. Short time period was inadequate for conducting detailed study among the
customer.
4. The study was restricted to Hyderabad and Secundrabad only.
5. The study was limited to the capabilities and willingness of the respondents
in appropriately answering the questions.
6. The study was limited for a period of 45 days only.

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 CHAPTER – 2
REVIEW OF LITERATURE

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Malandrakis, Y., (2001), Measurement of customer satisfaction in the Banking.
Study has specifically concentrated on Customer Satisfaction Measurement in
Banks. Here are five specific CRM findings which are key area of focus of each
bank 1. Percentage of highly profitable customers retained: What some banks have
done is identify the tier of customers that represent the most profitability and then
foster a very transparent effort to keep them in place and happy. They are identified
as a toptier customer to every employee that inquires on one of their accounts.
Percentage of customers that have moved from one product to two or more: The
overall products/services per household is a great statistic to track. Some banks have
put a bit of a different spin on it and said they will track how successful they have
been in taking one-product customers (not a relationship yet) to a second or third
(have a relationship). 3. The percentage of business customers who have moved their
personal relationships some banks have two categories: “Business-only right now”
and “Have both” – and actively track and publish the success in increasing that
number. As with the other campaigns/targets, this progress is tracked and
published. . Core account open/closed ratio: This is one statistic which is closely
tracked in this research. Results shows on average, close four accounts for every five
we open. This not only makes no sense if a sales/service culture is working
effectively, it is also plain inefficient. . Percentage of customers who use multiple
channels: A growing body of evidence shows that
customers who use multiple with you.

Hiroshi (1997) mentioned in his study “Electronic commerce for new management
and information system infrastructure”, he had given stress on electronic information
provided to customer in various banking sectors to make the system more efficient to
fulfill the needs of customer using banking services and help in CRM. As per
comment of Thampy (1999), after recommendations of the Narasimhan Committee,
customer service expectations increase in many folded area due to entries of new
private banks and international banks.

Kaujalgi (1999) stated that Information Technology (IT) performs an important role
for giving better customer service, at a lower cost. Further he stresses that, due to
presence of advance automation technology, foreign banks have the advantage in
many banking area.

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Bajaj (2000) He analyzed related issues due to adoption of CRM in banking. He
explained ecommerce, payment system, smart card, electronic check etc. He
explained that IT has made for big CD’s to raise money in capital market than from
banks. He conclude that electronic payment system are emerging and getting
acceptance in market place as it help to cut cost by producing check ways of
delivering products to customers and to see it that whether technology create new
opportunities for banks or they become extinct .

Gopalakrishna (2001) expressed his views that Customer relationship is not an

outside element which started exerting its influence on the business. It is an integral
part of management and, it has occupied an important and indispensable central
place in todays business.

Manickarj & Hemalatha (2001) in this article e-banking success identifies that in
new digital market place banks and financial institutes are not lagging behind and
start providing services electronically to internet. These services lower transaction
cost & empowers customers & enhance the value to banking relationship. They
discussed also services through banking, their benefits to customers, banks &
limitations.

Kassing (2001), have expressed Bankers who lose good customers month in and
month out may likewise feel this sense of futility. Those who respond by boosting
advertising budgets, (offering low-cost and low-profitability products as a lure) may
find they increase their marketing expenses only to obtain unprofitable customers. In
addition, other worthwhile prospects or customers are identified in the hope of
developing profitable relationships.

According to Mittal and Kumra (2001), the concept E-CRM are the combined
process of business and advances technology, which seeds to know the banks
customer from a multifaceted perspective. E-CRM system has been recently adopted
in the industry. Selecting an E-CRM system is a part of the Customer Relationship
Strategy. Garikaparthi (2002), has concluded that in the present scenario of
globalization and liberalization, marketing has undergone a matamopheric change to
cope with increased competitiveness, changing needs of customers, continuous

22
product up gradation due to change in technology, changing market trends and many
more, because of these continuous changes, the marketing efforts have also slowly
shifted from mass marketing to interactive marketing and finally to today's
relationship marketing.

According to Greenberg (2004), customer having many options among various

service provided by banks. He makes business relationship depends on his economy,
faith and products, efficiency and services.

Buttle (2004) stated that new goals More accountability Creative management of the
customer lifecycle Rethink the 4Ps Managing networks, not brands New customer
management roles.

Mohamed and Sagadevan (2005), has expressed his view that Managing relationship
with customer. For a successful implementation, of CRM there must be a common
sense that the implementation will affect all parts of the company and that there
might be server changes to get positive results. Due to that the project must be
supported by the management from the very beginning. In the words of Patnaik and
Chhatoi (2006), Customer Services will be better understood if we define it from the
customer’s angle. Customer service is the perception of a customer regarding the
services he gets from his bank. It is found that retaining customer is often cheaper
than finding a new customer. Customer is viewed as a longterm relationship.
Graham (2008) explains that there are three elements to consider when aligning your
business towards a customer relationship format. These are retention, customer
potential and de-selection of customer. He also mentioned four steps if CRM i.e.
Segmentation, Analyzing, Developing strategy and behaviour maintenance.

Uppal R K (2008) stated that in spite of lack of awareness among the customers of
e– banking services, most of the customers uses the e-banks are satisfied with
various e-link and available services. It is further observed through the responses of
respondents that the 8 future of e-banking services is bright and that this e - channels
will definitely help in the transformation of banking in a positive manner.

23
Dutta et al (2009), the statistical analysis further reveals that there exists a gap
between the customer expectations and perception in the banking sector. The
expectations of Bank customer are higher than their perception. This gap varies cross
the banking sector with public sector banks showing the widest gap and foreign
banks showing a narrow gap. Factor analysis further showed that tangible, assurance,
empathy and reliability dimensions are the explanatory variables predicting
customers ‘satisfaction in India. ATM machines in convenient places and tele -
banking and internet banking facility. The findings further show that public sector
banks are neutral about the quality services offered.

Haque et al (2009) the study that the study deals with customer insight for the needs
and wants. This may important for Bankers to provide better services, at the same
time banks need more publicity about the security aspects in addition to rules and
regulations related to security.

CUSTOMER RELATIONSHIP MANAGEMENT

Customer relationship management (CRM) is a widely implemented strategy for
managing a company’s interactions with customers, 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. Customer relationship
management describes a company-wide business strategy including customer-
interface departments as well as other departments. Measuring and valuing customer
relationships is critical to implementing this strategy.

DIFFERENT DEFINATIONS OF CRM

Definition1
Customer Relationship Management (CRM) can be widely defined as
company activities related to developing and retaining customers. It is a blend of
internal business processes: sales, marketing and customer support with technology

24
and data capturing techniques. Customer Relationship Management is all about
building long-term business relationships with customers.

Definition 2
As the name implies, CRM means Customer Relationship Management. Different
organizations define CRM differently. In today’s economy, there is no single
undisputed definition of CRM. Here is what we believe CRM is: 
CRM is an alignment of strategy, processes and technology to manage customers
and all customer-facing departments & partners. 
Having defined CRM, here are some generalizations 
Any CRM initiative is and has the potential of providing strategic advantages to the
organization, if handled right. 
Most CRM initiatives begin with a strategic need to manage the process of handling
customer related information more effectively. For beginners it could simply mean
better lead management capabilities or sales pipeline visibility. However, as
organizations mature in their CRM initiatives, they begin to look at CRM as tool to
acquire strategic differentiators. 
Despite the immense benefits that the CRM solutions can deliver, they are not
entirely without their share of problems. Many organizations have burned their
fingers trying to implement the technology and manage costs.

To successfully undertake CRM initiatives it is essential to 

● Clearly define the management objective & strategy 
● Evolve the right process around it 
● Identify the right software solution for implementation 
● Understand the hidden costs and hurdles 
● Back it up with good training and support 
● While selecting the software solution for your implementation, ensure that 
● It can manage both your data and process 
● It is easy to implement and roll out 
● It is simple to use 
● You understand the total cost of ownership 

25
 ● You evaluate the risk exposure 

CRM stands for Customer Relationship Management. It is a process or methodology

used to learn more about customers' needs and behaviors in order to develop
stronger relationships with them. There are many technological components to
CRM, but thinking about CRM in primarily technological terms is a mistake. The
more useful way to think about CRM is as a process that will help bring together
lots of pieces of information about customers, sales, marketing effectiveness,
responsiveness and market trends. 

CRM helps businesses use technology and human resources to gain insight into the
behavior of customers and the value of those customers. 

BENEFITS OF CUSTOMER RELATIONSHIP MANAGEMENT

A Customer Relationship Management system may be chosen because it is thought
to provide the following advantages:[citation needed]
Quality and efficiency
Decrease in overall costs
Decision support
Enterprise ability
Customer Attentions
Increase profitability.

CHALLENGES
Successful development, implementation, use and support of customer relationship
management systems can provide a significant advantage to the user, but often there
are obstacles that obstruct the user from using the system to its full potential.

26
Instances of a CRM attempting to contain a large, complex group of data can
become cumbersome and difficult to understand for ill-trained users. The lack of
senior management sponsorship can also hinder the success of a new CRM system.
Stakeholders must be identified early in the process and a full commitment is needed
from all executives before beginning the conversion.

Additionally, an interface that is difficult to navigate or understand can hinder the

CRM’s effectiveness, causing users to pick and choose which areas of the system to
be used, while others may be pushed aside. This fragmented implementation can
cause inherent challenges, as only certain parts are used and the system is not fully
functional. The increased use of customer relationship management software has
also led to an industry-wide shift in evaluating the role of the developer in designing
and maintaining its software. Companies are urged to consider the overall impact of
a viable CRM software suite and the potential for good or bad in its use.

COMPLEXITY
Tools and workflows can be complex, especially for large businesses. Previously
these tools were generally limited to simple CRM solutions which focused on
monitoring and recording interactions and communications. Software solutions then
expanded to embrace deal tracking, territories, opportunities, and the sales pipeline
itself. Next came the advent of tools for other client-interface business functions, as
described below. These tools have been, and still are, offered as on-premises
software that companies purchase and run on their own IT infrastructure.

POOR USABILITY
One of the largest challenges that customer relationship management systems face is
poor usability. With a difficult interface for a user to navigate, implementation can
be fragmented or not entirely complete.

The importance of usability in a system has developed over time. Customers are
likely not as patient to work through malfunctions or gaps in user safety, and there is
an expectation that the usability of systems should be somewhat intuitive: “it helps
make the machine an extension of the way I think — not how it wants me to think.”

27
An intuitive design can prove most effective in developing the content and layout of
a customer relationship management system. Two 2008 case studies show that the
layout of a system provides a strong correlation to the ease of use for a system and
that it proved more beneficial for the design to focus on presenting information in a
way that reflected the most important goals and tasks of the user, rather than the
structure of the organization. This “ease of service” is paramount for developing a
system that is usable.

In many cases, the growth of capabilities and complexities of systems has hampered
the usability of a customer relationship management system. An overly complex
computer system can result in an equally complex and non-friendly user interface,
thus not allowing the system to work as fully intended. This bloated software can
appear sluggish and/or overwhelming to the user, keeping the system from full use
and potential. A series of 1998 research indicates that each item added to an
information display can significantly affect the overall experience of the user.

FRAGMENTATION
Often, poor usability can lead to implementations that are fragmented — isolated
initiatives by individual departments to address their own needs. Systems that start
disunited usually stay that way: [siloed thinking] and decision processes frequently
lead to separate and incompatible systems, and dysfunctional processes.

A fragmented implementation can negate any financial benefit associated with a

customer relationship management system, as companies choose not to use all the
associated features factored when justifying the investment. Instead, it is important
that support for the CRM system is companywide. The challenge of fragmented
implementations may be mitigated with improvements in late-generation CRM
systems..

SECURITY CONCERNS
A large challenge faced by developers and users is found in striking a balance
between ease of use in the CRM interface and suitable and acceptable security
measures and features. Corporations investing in CRM software do so expecting a

28
relative ease of use while also requiring that customer and other sensitive data
remain secure. This balance can be difficult, as many believe that improvements in
security come at the expense of system usability.

Research and study show the importance of designing and developing technology
that balances a positive user interface with security features that meet industry and
corporate standards.A 2002 study shows, however, that security and usability can
coexist harmoniously. In many ways, a secure CRM system can become more
usable.
Researchers have argued that, in most cases, security breaches are the result of user-
error (such as unintentionally downloading and executing a computer virus). In these
events, the computer system acted as it should in identifying a file and then,
following the user’s orders to execute the file, exposed the computer and network to
a harmful virus. Researchers argue that a more usable system creates less confusion
and lessens the amount of potentially harmful errors, in turn creating a more secure
and stable CRM system.

Technical writers can play a large role in developing customer relationship

management systems that are secure and easy to use. A series of 2008 research
shows that CRM systems, among others, need to be more open to flexibility of
technical writers, allowing these professionals to become content builders. These
professionals can then gather information and use it at their preference, developing a
system that allows users to easily access desired information and is secure and
trusted by its users.

1. Advantages Of CRM
Using CRM, a business can: 
● Provide better customer service 
● Increase customer revenues 
● Discover new customers 
● Cross sell/Up Sell products more effectively 
● Help sales staff close deals faster 
● Make call centers more efficient 
● Simplify marketing and sales processes 

29
2. What are the advantages of CRM? 
CRM solutions help companies boost their business efficiency, thereby increasing
profit and revenue generation capabilities. Let us take a quick look at some of the
measurable benefits that your organization can gain by implementing a CRM
solution.

Increase Customer Lifecycle Value 

In most businesses, the cost of acquisition of customers is high. To make profits, it is
important to keep the customer longer and sell him more products (cross sell, up sell,
etc) to him, during his lifecycle. Customer stay, if they are provided with value,
quality service and continuity. CRM solutions enable you to do that. 

Execution Control 
Once the business strategy is put into motion, the management needs feedback and
reports to judge how the business is performing. CRM solutions provide
management with control and a scientific way to identify and resolve issues. The
benefits include a clearer visibility of the sales pipeline, accurate forecasts and
more. 

Customer Lifecycle Management 

To keep the customers happy, you need to know them better. At the minimum, you
need a centralize customer database, that captures most of the information from your
entire customer facing departments and partners. Integrated CRM solutions, like
CRMnext enable you to manage customer information, throughout all stages of their
life cycle, from contact to contract to customer service. 

Strategic Consistency 
Because CRM offers business and technological alignment, it enables companies to
achieve strategic company goals more effectively, like enhanced sales realization,
higher customer satisfaction, better brand management and more. Additionally, the
alignment results in a more consistent customer communication creating a feeling of
continuity. 

30
Business Intelligence 
Due to the valuable business insights that CRM provides, it becomes easier to
identify the bottlenecks, their causes and the remedial measures that need to be
taken. For example, CRMnext provides real-time business focus dashboards with
extensive drill down capabilities that provide the decision makers with the depth of
information required to identify the causes and spot trends. 

Who Needs CRM ? 

Putting it simply, CRM is ideally embraced by that organization which besides
making and retaining clients also makes serious effort to optimize their revenue
potential. This organization is one that aims at organizational growth through sharp
focus on customer relationship management, which it achieves through an intelligent
tracking system. 

In here, the customer relationship executive stays terrifically organized, since he can
view his pipeline even while on the move and stay informed of the latest customer
status which helps him plan his short time strategy and long time goals. The
management, on the other hand doesnt have to rely on the week end/month end/year
end etc cumbersome reports (authored/tailored by the designated personnel) to know
how the organization is faring. Instead, it is empowered with real time access
(anywhere, anytime and totally web based) to the progress, performance and profits
of the entire organization ( broken right down to the individual level ) through
comprehensive, smart and informative analytics. All this and more at a cost that is
affordable, software that is easy to deploy and an adoption time that is unbelievably
low! 

CRM Software
● Sales Force Automation
● Contact management
● Contact management software stores, tracks and manages contacts, leads of
an enterprise. 
Lead management

31
Enterprise Lead management software enables an organization to manage, track and
forecast sales leads. Also helps understand and improve conversion rates. 
eCRM or Web based CRM

Self Service CRM

Self service CRM (eCRM) software Enables web based customer interaction,
automation of email, call logs, web site analytics, campaign management. 

Survey Management Software

Survey Software automates an enterprise's Electronic Surveys, Polls, Questionnaires
and enables understand customer preferences. 

Customer Service
● Call Center Software 
● Help Desk Software 
● Partner Relationship Management
● Contract Management Software
● Contract Management Software enables an enterprise to create, track and
manage partnerships, contracts, agreements. 
● Example: Upside Software, Accruent Software, diCarta, I-Many. 
● Distribution management Software 

CREATING CUSTOMER LOYALTY

Correlation to delivering world class service and reaching beyond customer
satisfaction and creating customer loyalty Various measurement methodologies and
rating scales: 

In the days of the booming economy IT companies based their success on continuous
product innovation

Services were originally body shopping in those days. Body shopping is basically
out sourcing that is doing what companies have to do.. 

32
During an economic slowdown customers need more than product features to ear
loyalty

Research results:
44 percent only plan to business with the current IT sector.
30 percent feel trapped and are unhappy
23 percent are high risk and are unlikely to continue relationship in terms of
innovative features 3 percent are vulnerable to competitive product. The speed at
which the service is given Satisfaction is meeting minimum expectation. It is need
based approach Loyalty is exceeding customer expectation and securing future
commitment. Retention is satisfaction plus loyaltyhave to enter stuff manually. That
will never die out though since lots of people still want anonymity for many things.
Financial service always was an oxymoron!

Customer relationship management

Customer relationship management (CRM) encompasses the capabilities,
methodologies, and technologies that support an enterprise in managing customer
relationships. The general purpose of CRM is to enable organizations to better
manage their customers through the introduction of reliable systems, processes and
procedures.

Contents
1 Implementing CRM 
2 Architecture of CRM 
2.1 Operational CRM 
2.2 Analytical CRM 
2.3 Collaborative CRM 
3 Purposes of CRM 
4 Improving customer relationships 
5 Technical functionality 
6 Privacy and ethical concerns 
7 CRM in Business 

33
8 CRM for nonprofit organizations 
9 See also 
10 External links 

Implementing CRM
Customer relationship management is a corporate level strategy which focuses on
creating and maintaining lasting relationships with its customers. Although there are
several commercial CRM software packages on the market which support CRM
strategy, it is not a technology itself. Rather, a holistic change in an organisation's
philosophy which places emphasis on the customer.

A successful CRM strategy cannot be implemented by simply installing and

integrating a software package and will not happen over night. Changes must occur
at all levels including policies and processes, front of house customer service,
employee training, marketing, systems and information management; all aspects of
the business must be reshaped to be customer driven.
To be effective, the CRM process needs to be integrated end-to-end across
marketing, sales, and customer service. A good CRM program needs to:
● Identify customer success factors 
● Create a customer-based culture 
● Adopt customer-based measures 
● Develop an end-to-end process to serve customers 
● Recommend what questions to ask to help a customer solve a problem 
Recommend what to tell a customer with a complaint about a purchase 
● Track all aspects of selling to customers and prospects as well as customer
support. 
● When setting up a CRM segment for a company it might first want to
identify what profile aspects it feels are relevant to its business, such as what
● information it needs to serve its customers, the customer's past financial
history, the effects of the CRM segment and what information is not useful.
Being able to eliminate unwanted information can be a large aspect of
implementing CRM systems.

34
● When designing a CRM's structure, a company may want to consider keeping
more extensive information on their primary customers and keeping less
extensive details on the low-margin clients

35
 CHAPTER -3

COMPANY PROFILE

36
 Spencer's Retail Limited

Type Public

Traded as NSE: SPENCERS
BSE: 542337

Industry Retail

Founded 1863 as Durrant & Spencer

Founders Charles Durrant & John

William Spencer

Headquarters Kolkata, West Bengal

, 
India

Number of 120 Across 35 Cities[1]

locations

Products Supermarket
Hypermarket
Superstore
Convenience shop

Number of 5000+
employees

Parent RP-Sanjiv Goenka Group

Website www.spencers.in

37
Retail Industry In India
India has one of the largest numbers of retail outlets in the world. Of the 12 million retail
outlets present in the country, nearly 5 million sell food and related products. Thought the
market has been dominated by unorganized players, the entry of domestic and
international organised players is set to change the scenario.

Organized retail segment has been growing at a blistering pace, exceeding all previous
estimates. According to a study by Deloitte Haskins and Sells, organised retail has
increased its share from 5 per cent of total retail sales in 2006 to 8 per cent in 2007. The
fastest growing segments have been the wholesale cash and carry stores (150 per cent)
followed by supermarkets (100 per cent) and hypermarkets (75-80 per cent). Further, it
estimates the organised segment to account for 25 per cent of the total sales by 2011.

India retail industry is the largest industry in India, with an employment of around 8% and
contributing to over 10% of the country's GDP. Retail industry in India is expected to rise
25% yearly being driven by strong income growth, changing lifestyles, and favourable
demographic patterns.

It is expected that by 2016 modern retail industry in India will be worth US$ 175- 200
billion. India retail industry is one of the fastest growing industries with revenue expected
in 2007 to amount US$ 320 billion and is increasing at a rate of 5% yearly. A further
increase of 7-8% is expected in the industry of retail in India by growth in consumerism in
urban areas, rising incomes, and a steep rise in rural consumption. It has further been
predicted that the retailing industry in India will amount to US$ 21.5 billion by 2010 from
the current size of US$ 7.5 billion.

Shopping in India has witnessed a revolution with the change in the consumer buying
behaviour and the whole format of shopping also altering. Industry of retail in India which
has become modern can be seen from the fact that there are multi- stored malls, huge
shopping centres, and sprawling complexes which offer food, shopping, and entertainment
all under the same roof. India retail industry is expanding itself most aggressively; as a
result a great demand for real estate is being created. Indian retailers preferred means of
expansion is to expand to other regions and to increase the number of their outlets in a
city.
India retail industry is progressing well and for this to continue retailers as well as the
Indian government will have to make a combined effort. It is expected that India may have
600 new retail outlet till 2010.

Retail space

38
Driven by changing lifestyles, strong income growth and favourable demographic
patterns, Indian retail is expanding at a rapid pace. Mall space, from a meagre one million
square feet in 2002, is expected to touch 40 million square feet by end-2007 and an
estimated 60 million square feet by end-2008, says Jones Lang LaSalle's third annual
Retailer Sentiment Survey-Asia.

Alongside, Indian cities are witnessing a paradigm shift from traditional forms of retailing
into a modern organized sector. A report by Images Retail estimates the number of
Customer Relationship Managemental malls to more than double to over 412 with 205
million square feet by 2010 and further 715 malls by 2015, on the back of major retail
developments even in tier II and tier III cities in India.

Challenges facing the Indian Organized Retail sector

The challenges facing the Indian organized retail sector are various and these are stopping
the Indian retail industry from reaching its full potential. The behaviour pattern of the
Indian consumer has undergone a major change. This has happened for the Indian
consumer is earning more now, western influences, women working force is increasing,
desire for luxury items and better quality. He now wants to eat, shop, and get entertained
under the same roof. All these have lead the Indian organized retail sector to give more in
order to satisfy the Indian customer.

The biggest challenge facing the Indian organized retail sector is the lack of retail space.
With real estate prices escalating due to increase in demand from the Indian organized
retail sector, it is posing a challenge to its growth. With Indian retailers having to shell out
more for retail space it is effecting there overall profitability in retail. Trained manpower
shortage is a challenge facing the organized retail sector in India. The Indian retailers have
difficultly in finding trained person and also have to pay more in order to retain them. This
again brings down the Indian retailers profit levels. The Indian government have allowed
51% foreign direct investment (FDI) in the India retail sector to one brand shops only.
This has made the entry of global retail giants to organized retail sector in India difficult.
This is a challenge being faced by the Indian organized retail sector. But the global retail
giants like Tesco, Wal-Mart, and Metro AG are entering the organized retail sector in
India indirectly through franchisee agreement and cash and carry wholesale trading. Many
Indian companies are also entering the Indian organized retail sector like Reliance
Industries Limited, Pantaloons, and Bharti Telecoms. But they are facing stiff competition
from these global retail giants. As a result discounting is becoming an accepted practice.

39
 COMPANY PROFILE
Spencer’s Retail Limited, part of RP Sanjiv Goenka Group, is a multi-format retailer
providing a wide range of quality products across categories such as food, personal
care, fashion, home essentials, electrical and electronics to its key consumers.
Specialty sections such as Spencer’s Gourmet, Patisserie, Wine and Liquor, and the
recently launched Epicuisine section are some of the key differentiators in our
hypermarket stores.
 
Spencer’s, being one of the earliest entrants into the retail space in India, introduced
the Indian consumer to the concept of organized retailing. The first ever hypermarket
in India was launched by Spencer’s in Hyderabad in 2000. Today, Spencer’s runs
120 stores, including 37 Hyper stores in over 35 cities in India.
 
Spencer’s brand positioning – Makes Fine Living Affordable – embodies its
philosophy of delighting shoppers with the best products and services that enable a
fine living at reasonable prices, while providing them with a warm, friendly and
educational retail environment.
 
Our awards stand testimony to our unique position.

1. Since 1863, Spencer’s has been a part of the Indian retail landscape. At one time,
the Spencer’s Empire stretched from Peshawar to Cochin, from Karachi to
Chittagong, spanning the length and width of undivided India. Originally owned by a
British gentleman – yes, there was a Mr. Spencer (John William Spencer, to be
precise) – it acquired Indian ownership in the 1960s, and became part of the RPG
Group in 1989.
2. In 1995, RPG Enterprises, the flagship company of the RPG Group, launched
'Foodworld' as a joint venture with Hong-Kong based Dairy Farm International. The
joint venture, which operated supermarkets under thename 'Foodworld' and
hypermarkets under the name 'Giant', was terminated in 2006. RPG retained 48 of
the 93 stores it owned. These were re-furbished and their launch under the brand
name, Spencer’s, kicked off a new phase in both the history of the Spencer’s brand,
and retail in India.

40
 3. Since inception Spencer’s has been a consumer-centric brand, constantly
innovating, pioneering formats, evolving over time but always keeping consumer
needs and satisfaction center-stage. Back in 1920, we were the first grocery chain in
India. In 1980, we became the first supermarket chain, and in 2001, we introduced
India to the joys of hypermarket shopping. 
4. What has remained unchanged for 150 years is the trust that the Spencer’s brand
evokes. To the consumer, it carries the promise of innovation, quality, and service;
the confidence that they will always be able to find a Spencer’s store at a convenient
location; that it will have a pleasant ambience; and that it will offer a wide range of
products at affordable prices.

5. Spencer’s has chosen to differentiate by establishing itself as the preferred

shopping destination for young customers looking for a range of quality products
that allows them to indulge in a global lifestyle, yet at affordable prices. It’s brand
image of - Makes Fine Living Affordable stands - testimony to this philosophy.
From daily to weekly to specialty shopping, Spencer’s strives to fulfill every need
and provide maximum convenience.
Specifically, the following distinguish the Spencer’s brand and create a memorable
all-encompassing shopping experience for its shoppers:
 
● Products – Spencer’s offers the widest assortment of food and lifestyle (fashion,
home, entertainment), dealing both, with brands and private labels. It has different
special sections within it’s hypermarkets to delight the customer
● Quality – Quality is a major reason why Spencer’s is well-regard by it’s shoppers.
Spencer’s lays a huge emphasis on all-round quality in products, stores, service
standards, and customer engagement programs. It’s “Quality since 1863” tagline
has stood the test of time.
● Heritage – Spencer’s is India’s oldest retailer tracing its roots back to1863. The
brand has many firsts to it’s credits. 
● Innovations/Specialty – In Spencer’s hypermarkets, the shopper can find specialty
sections such as a live bakery, the patisserie, a nut’s counter, a dedicated wine &
liquor section, and Epicuisine. 

41
● Promotions – Spencer’s seek to offer the right products at the right time at the right
price, with promotions carefully designed to suit the needs and wants of the
consumers monthly, weekly and daily shopping basket.
● Brand Imagery – Spencer’s stores have contemporary and international interiors, and
it's extensively trained staff strive to make customers feel at home while they shop,
with a welcoming and trusted attitude.
Spencer’s has constantly helped reshape the retail landscape in India, introducing a
host of innovations to make shopping even more convenient and enjoyable for the
consumer.   
It’s a common perception that all supermarkets and hypermarkets sell the same
things. However, Spencer’s proves that wrong. While it does stock a lot of what
others stock, it puts in a great deal of effort to stock a unique range of products as
well.
 

42
Awards

Spencer's Retail has won Coca Cola Golden Spoon Awards as the Most Admired
Food & Grocery Retailer of the Year for Merchandising, Marketing, Consumer
Promotions & Customer Service at the India Food Forum 2016 held in Mumbai last
evening.
 

Spencer's retail wins "Highest Job Creator in the Eastern Region” award at Retail
India Summit organized by Indian Chamber of Commerce.
 

43
Spencer’s Retail wins Commendation Certificate for Strong Commitment to Excel in
Food Safety for Quest Hyper, Kolkata by CII National Awards for Food Safety –
2014
 

“Best VM & Retail Design in the category Hypermarkets ( >15,000 sq.ft)”, 2014

“Most Admired Food & Grocery Retailer of the Year Award for Largest Expansion,
Highest Trading Density, & Same Store Sales Growth.”, 2014
 

“Most Admired Retail Company of the Year (East India) at the East India Retail
Summit 2013.

44
Spencer’s Retail wins the Most Admired Hypermarket Retailer of the Year @
Images Retail Awards 2013.

Ranked 2nd in India’s most respected companies in Retail in a study conducted by

Business World in 2013.

Images Excellence Award

For Pioneering Retail in East at the “East India Retail Summit Awards, 2011

45
BEST PRACTICE AWARD, National FMCG meet, 2010

Ranked 3rd Among the Most Trusted Brands in Retail. 2010 in the Brand Equity –
AC Nielson Brand Survey, 2010.

Ranked 47th Among Top 50 service Brands in India, 2010 in the Brand Equity – AC
Nielson Brand Survey, 2010.

46
SAP ACE Award For Customer Excellence, 2010

Spencer's was awarded the first runners-up in the Visual Merchandizing Category at
the In-store Asia, 2009.

Food Forum of India Coca Cola Golden Spoon “Most Admired Food & Grocery
Retailer, Convenience and Express Formats”, 2008.
 

47
India Retail Forum "Most Evolved Retailer of the Year", India Retail Forum, 2007

“Turnaround Retailer of the Year”, 2006

ICICI Bank retail excellence award 2005

48
Retail Asia Pacific, Top retailer 2004

Retail Asia Pacific, Best of the best, 2004

Retail Asia Pacific,Top retailer 2005

49
Rabo india Finance, F&A award for the year 2001

50
 CHAPTER – 4
DATA ANALYTICS AND
INTERPRETATION

51
1) How did you come to know about Spencer’s products?

No. of respondents Percentage

Electronic media 22 22%

Print media 28 28%

Road shows 20 20%

Hoardings 30 30%

Total 100 100%

Information about the product:

Interpretation:

30% of the respondents came to know about Spencer’s products from hoardings

while 28% of the respondents came to know from print media and electronic media was

assumed by 22% of the respondents. A small significant 20% of the respondents replied that

road shows have helped them in understanding Spencer’s products.

52
2) Since how many months have you been visiting Spencer’s?

No. of respondents Percentage

0-6 months 23 23%

6-12 months 37 37%

1-2 years 36 36%

More than 2 years 04 04%

Total 100 100%

Visiting (in months):

Interpretation:

From the above table it is seen that 37% of the respondents have been using

SPENCER’S products for past one year. While 36% have been using it for more than 1 year,

and a significant 23% of respondents have been using the service for less than six months.

Only 4% of the respondents have been using Spencer’s products for more than 2 –years.

53
3) Which Kind of service are you using? Please mention?

Type of service No. of respondents Percentage

Dairy 27 27%

Retail 60 60%

Agri 13 13%

Total 100 100%

Kind of service:

Interpretation

From the above table it can be seen that 60% of them are using retail services, while

27% are using Dairy services, and the remaining 13% are using Agri services.

54
4) What is the reason for choosing Spencer’s as a store for your needs?

No. of respondents Percentage

Less price 20 20%

Quality service 56 56%

Brand image 24 24%

Total 100 100%

Reason for choosing the service:

Interpretation

From the above table it is shown that 56% of the respondents are citing quality of

service as the factor. While 24% cited brand image as the reason for choosing the service.

As far as price is concerned only 20% of the respondents have quoted it as the reason for

choosing this service.

55
5) How do you find the services provided by Spencer’s?

No. of respondents Percentage

Convenience 53 53%

Economical 30 30%

Security 04 04%

Features 13 13%

Total 100 100%

Preferring for this service:

Interpretation

In today’s busy world convenience seems to be the most overriding factor while

preferring a cellular service. It is clear that 53% of the respondents have preferred this

service due to easy & hands free availability, making it convenient to use it. On the other

hand 30% have said economy of the service, while 13% of the respondents have given

56
features as their choice. While a meager 4% of the said security as the reason for preferring

the service.

6) Are you satisfied with the quality of service being provided?

No. of respondents Percentage

Yes 85 85%

No 5 5%

To some extent 0 0%

Can’t say 10 10%

Total 100 100%

Satisfaction l with the quality of service:

Interpretation:

57
 From the above table it is clear that 85% of the respondents are satisfied with the

quality of service while a significant number i.e., 10% of the respondents couldn’t say

anything and 5% of the respondents replied they are not satisfied with the quality of service.

7) Have you faced any problem at the time of Purchase & usage?

No. of respondents percentage

Yes 10 10%

No 90 90%

Total 100 100%

Facing of problems:

100

90

80

70

60

50 No. of respondents
percentage
40

30

20

10

0
Yes No

Interpretation:

The above table indicates that at the time of activation only 10% of the respondents

have faced problem with company, and 90% of the respondents have not face any problem.

58
8) While buying SPENCER’S product that has influenced your purchase decision?

No. of respondents Percentage

Colleagues 25 25%

Friends 60 60%

Family members 15 15%

Others 0 0%

Total 100 100%

Influence on purchase decision:

Interpretation:

From the above table it is shown that 60% of the respondents were influenced by

their friends, 25% by their colleagues and 15% by others.

59
9) Did you know the customer awareness program for every month ?

No. Of respondents Percentage

Yes 40 40%

No 60 60%

Total 100 100%

Including of activation charges:

Interpretation:

The above table is indicating that, from the total respondents of the survey 40%

respondents are aware of the customer program , and the remaining 60% respondents are

completely unaware of this statement, due to lack of communication from the company.

60
 10) Where do you pay your bills?

Periods No. of respondents percentage

At showrooms 100 100%

On delivery 00 00%

Total 100 100%

Place of paying Bills:

120

100

80

60 No. of respondents
percentage

40

20

0
At showrooms On delivery

Interpretation:

It is clear from the above analysis that the respondents have to pay their post paid

bills at the True-Paid shops only. So 100% of the respondents pay at their dealer outlets

only.

61
11) Do you prefer online-billing counters for your bill payment like counters of
ATM’s?

Type of service No. of respondents percentage

Yes 99 99

No 01 01%

Total 100 100%

Preferring of online bills:

Interpretation:

62
 Of the 100 respondents surveyed 99% of them prefer online counters for their bills

payments as it saves their time & effort, and only 1% of the respondents are not willing to

have the online payment facility.

12) How do you feel about the pricing of Spencer’s as compared with
other?

No. Of respondents Percentage

Expensive 00 00%

Competitive 96 96%

Can’t say 04 04%

Total 100 100%

Pricing of other services:

Interpretation:

63
 The feelings of customers of Spencer’s about the pricing of the services is, 96% of

them are satisfied and feel the prices are comparable with others and 4% of them are not

satisfied with the pricing of the company as they feel the prices are not competitive enough.

13. Your suggestion agreed in your company

% of
Response Respondents Respondents

23 30.67

Strongly Agree

15 40

Agree

17 2

Neutral

5 6.67

Disagree

15 40

Strongly Disagree

75 100%

Total

64
Analysis:

From the above table, 30.67% of employees Agreed their suggestions are
agreed, 40% of employees Disagreed, 22% of employees sometimes agreed our
suggestions of the company.

Interpretation:

This shows that the majority of the employees suggestions are agreed by

the company.

65
14. Satisfied with the company rules?

Response Respondents % of Respondents

47 62.67

Strongly Agree

9 11.5

Agree

6 8

Neutral

7 5.33

Disagree

9 11.5

Strongly Disagree

75 100%

Total

66
Analysis:

From the above table, 20% of employees have highly satisfy the personal
development, 32% of employees dissatisfy, 8% of employees highly Dissatisfy
with the personal development.

Interpretation:

This shows that the majority of the employees are highly satisfied with the

company’s rule.

67
15. Superior reaction towards the complaints

Response Respondents % of Respondents

20 26.67

Strongly Agree

15 52

Agree

16 21.33

Neutral

8 10.67

Disagree

15 11.5

Strongly Disagree

75 100%

Total

68
Interpretation:

From the above table, 26.67% of employees very much concern, 21.33%

of employees indifference with superior reaction.

Interpretation:

This shows that the majority of the employees are happy with the superior

reaction toward complaints.

69
CHAPTER – 5
FINDINGS
SUGGESTIONS
AND
CONCLUSION

70
 FINDINGS OF THE STUDY

● 30% of the respondents came to know about Spencer’s products from hoardings

while 28% of the respondents came to know from print media and electronic media

was assumed by 22% of the respondents. A small significant 20% of the respondents

replied that road shows have helped them in understanding Spencer’s products.

● From the above table it is seen that 37% of the respondents have been using

SPENCER’S products for past one year. While 36% have been using it for more

than 1 year, and a significant 23% of respondents have been using the service for

less than six months. Only 4% of the respondents have been using Spencer’s

products for more than 2 –years.

● From the above table it can be seen that 60% of them are using retail services, while

27% are using Dairy services, and the remaining 13% are using Agri services.

● From the above table it is shown that 56% of the respondents are citing quality of

service as the factor. While 24% cited brand image as the reason for choosing the

service. As far as price is concerned only 20% of the respondents have quoted it as

the reason for choosing this service.

● In today’s busy world convenience seems to be the most overriding factor while

preferring a cellular service. It is clear that 53% of the respondents have preferred

this service due to easy & hands free availability, making it convenient to use it. On

the other hand 30% have said economy of the service, while 13% of the respondents

have given features as their choice. While a meager 4% of the said security as the

reason for preferring the service.

71
 SUGGESTIONS
● From the above table it is clear that 85% of the respondents are satisfied with

the quality of service while a significant number i.e., 10% of the respondents

couldn’t say anything and 5% of the respondents replied they are not satisfied

with the quality of service.

● The above table indicates that at the time of activation only 10% of the
respondents have faced problem with company, and 90% of the respondents
have not face any problem.
● From the above table it is shown that 60% of the respondents were influenced
by their friends, 25% by their colleagues and 15% by others
● The above table is indicating that, from the total respondents of the survey

40% respondents are aware of the customer program , and the remaining 60%

respondents are completely unaware of this statement, due to lack of

communication from the company.

● It is clear from the above analysis that the respondents have to pay their post
paid bills at the True-Paid shops only. So 100% of the respondents pay at
their dealer outlets only
● Of the 100 respondents surveyed 99% of them prefer online counters for their

bills payments as it saves their time & effort, and only 1% of the respondents

are not willing to have the online payment facility.

● The feelings of customers of Spencer’s about the pricing of the services is,
96% of them are satisfied and feel the prices are comparable with others and
4% of them are not satisfied with the pricing of the company as they feel the
prices are not competitive enough

72
 CONCLUSIONS
1. In conclusion, it is recommended that implement a CRM system to
enhance its sales and marketing activities. Without customers a
business will not remain a business for long.
2. In order to attract customers, a company must be able to identify the
needs which a customer is seeking to have satisfied and must be able to
communicate to these customers the ways in which the company can
help them satisfy these needs. Advertising and product development are
quite expensive and so it is beneficial, financially, for a company to
know before-hand which products will likely to be successful and
which advertising strategies will be most effective.
3. Some companies may rely on intuition and some may rely on trial-and-
error. CRM systems allow for the objective study of the interaction
between company and customer.
4. These systems allow for the collection of important data, the storage of
this data, and the means of analyzing the data in a way which will be
useful to the company. Companies should realize, however, that IT
systems are not magical and that they may introduce problems of their
own.
5. A company should be prepared for problems during the testing and
implementation phase using any new software. Specifically, the
company should not rely too much on the new software until it has
been properly tested.
6. Data loss can pose a serious threat to the functioning of any company
and thus old systems should not be taken off-line until the new ones are
functioning properly.
7. It is also very important for a company to correctly analyze its situation
before hand so that it can choose the best software package for its
needs. The implementation of software is expensive and time-
consuming.
8. Switching systems is not like switching clothes. The costs involved
include time and money and both of these are things which a company
does not want to waste.

73
74
BIBILIOGRAPHY

75
 BIBILIOGRAPHY

● Anton, Petouhoff (2002), “Customer Relationship Management (the bottom

line to optimizing your ROI)”, Prentice- Hall, New Delhi.
● Baran, Galka, Strunk (2008), “Customer Relationship Management”, South-
Westernϖ Cengaga Learning India Private Limited, New Delhi,
● Gautham Chatterjea (2005), “Complied Thoughts Customer Relationshipϖ
Management”, Rupa & Co, New Delhi.

Web Sites:
● www.spencer.index.com
● www.spencer.com
● www.google.com

NEWSPAPER
 The Hindu
 Times of India

MAGAZINE
India Today
Business Today

76
 QUESTIONNAIRE
ANNEXURE –I

QUESTIONNAIRE

Name of the respondent :

Age :

Gender :

Address :

Signature

1) How do you come to know that About Spencer’s products?

a) Electronic Media b) Print media

b) Road shows c) Hoardings

2) Since how many months have you been using this?

a) 0-6 months b) 6-12 months

c) 1-2 years d) more than 2 years

3) Which kind of service is you using please mention?

a) Dairy b) Retail

c) Agri

77
4) What is the reason for choosing this service?

a) Less price b) Quality service

b) Brand image

5) Why do you prefer this service?

a) Convenience b) Economical

c) Security e) Features

6) Are you satisfied with the quality of service being provided?

a) Yes b) No

c) To some extent d) can’t say

7) Have you faced any problem at the time of purchase & usage?

a) Yes b) No

8) Who has influenced you, in purchase decision towards Spencer’s Product?

a) Colleagues b) Friends

c) Family members d) others

9) Do you know customer awareness program for every month?

a) yes b) No

10) Where do you pay your bills?

a) At showrooms b) on delivery

11) Do you prefer online billing counters for your bill payment like ATM’s?

a) Yes b) No

12) How do you feel about the pricing of Spencer’s Services as compared with other?

a) Expensive b) Competitive

c) Can’t say

78
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