The biggest management challenge in the new millennium of liberalization and globalization for a business is to serve and maintain good relationship with the king - the customer. In the past producers took their customers for granted, because at that time the customers were not demanding nor had alternative source of supply or suppliers. But today there is a radical transformation.
The changing business environment is characterized by economic liberalization, increasing competition, high consumer choice, demanding customer, more emphasis on quality and value of purchase etc.
All these changes have made today's producer shift from traditional marketing to modern marketing. Modern marketing calls for more than developing a product, pricing it, promoting it and making it accessible to target customer. It demands building trust, a binding force and value added relationship with the customers.
The process of developing a cooperative and collaborative relationship between the buyer and seller is called customer relationship management shortly called CRM. According to Ashoka dutt head of Citi Bank "the idea of CRM is to know the individual customer intimately, so that the company has a customized product ready for him even before he asks for it." Objectives of the Study
1. To study the current practices of CRM.
2. To find out the impact of CRM on the profitability of the organization.
3. To study the factors affecting the CRM practices.
4. To study the role of information technology in CRM.
A research design is simply a plan for study in collecting and analyzing the data. It helps the researcher to conduct the study in an economical method and relevant to the problem.
Research methodology is a systematic way to solve a research problem. The methodology should combine economy with efficiency.
Primary data - primary data is that data which is collected for the first time. These data are basically observed and collected by the researcher for the first time. I have used primary data for my project work.
Secondary data - secondary data are those data which are primarily collected by the other person for his own purpose and now we use these for our purpose secondly.
The customers of the COMPANY are the wholesalers. It is because the number of retailers is very large as compared to the wholesalers. So it is not possible for the company to approach to the retailers. Therefore the company sells to the wholesalers and then wholesalers sell to the retailers.
Customers are encouraged to give suggestions and complaints so that the company can improve its working and services. If the customer's complaints are not resolved the customers will be dissatisfied and the company may lose its customers.
Different customers have different requirements. So the company customize its product accordingly to satisfy the customers. It also gives more choice to the customers.
To get the information about the customers and to measure the satisfaction the company conducts surveys. Because of the expertise needed in the research the company give this work to research agencies like AC NILSON.
The company gives credit facility to its customers to increase the sales volume. If the company do not sell on credit the customers may switch over to other companies.
The company maintains frequent communication with the customers. As soon as the product is ready or a new product is launched the information is provided to the customers. Communication is also necessary to maintain the interest of the customers in the company.
The company gives concession to its regular customers so as to retain its most valuable and profitable customers.
The company regularly reviews the business process in order to eliminate non value-adding activities, to reduce the cost and to make the whole work efficient and effective. If the internal customers are not satisfied and there is lack of coordination among the departments then it will affect the external customers also.
Limitations of Customer Relationship Management
1. Time constraint is unavoidable limitation of my study.
2. Financial problem is also there in completing this project in a proper way.
3. As no work has been done earlier in this regard so scarcity of secondary data is also there.
4. Inadequate disclosure of information is also the problem.
There should be more and more emphasis given by the company for satisfying the customer up to a apex limit and by providing the utility of every penny of his money.
There should be more use of information technology.
The company should be flexible to bend its rules and procedures in the clients favour.
The company can communicate and develop stronger customer bonding by providing social and financial benefits