Customer Relationship Management Project CRM Mahindra Vs Tata Motors

Submitted By Swaroop Deshpande 11BSP1679

Submitted to Prof G Hugar

Customer Relationship management

Customer relationship management is creating a team relationship among sales, marketing, and customer support activities within an organization. Another narrow, yet relevant, viewpoint is to consider CRM only as customer retention in which a variety of after marketing tactics is used for customer bonding or staying in touch after the sale is made. It is defined as an integrated effort to identify, maintain, and build up a network with individual consumers and to continuously strengthen the network for mutual benefit of both sides, through interactive, individualized and value-added contacts over a period of time. The core theme of all CRM and relationship marketing perspectives is its focus on cooperative and collaborative relationships between the firm and its customers, and/or other marketing actors. CRM is based on the premise that, by having a better understanding of the customers needs and desires we can keep them longer and sell more to them.

There are three parts of application architecture of CRM: Operational - Automation to the basic business processes (marketing, sales, service) Analytical - Support to analyze customer behavior, implements business intelligence alike technology. Co operational - Ensures the contact with customers (phone, email, fax, web...)

There are a number of reasons why CRM has become so important in the last 10 years. The competition in the global market has become highly competitive, and it has become easier for customers to switch companies if they are not happy with the service they receive. One of the primary goals of CRM is to maintain clients. When it is used effectively, a company will be able to build a relationship with their customers that can last a lifetime. Customer relationship management tools will generally come in the form of software. Each software program may vary in the way it approaches CRM. It is important to realize that CRM is more than just a technology. Customer support is directly connected to CRM. If a company fails to provide quality customer support, they have also failed with their CRM system. When a customer makes complaints, they must be handled quickly and efficiently. The company should also seek to make sure those mistakes are not repeated. When sales are made, they should be tracked so that the company can analyze them from various aspects. It is

also important to understand the architecture of Customer relationship management. The architecture of CRM can be broken down into three categories, and these are collaborative, operational, and analytical. The collaborative aspect of CRM deals with communication between companies and their clients.

Privacy and ethical concerns

CRMs are not however considered universally good - some feel it invades customer privacy and enable coercive sales techniques due to the information companies now have on customers - see persuasion technology. However, CRM does not necessarily imply gathering new data, it can be used merely to make "better use" of data the corporation already has. But in most cases they are used to collect new data.

Key CRM principles

Differentiate Customers: All customers are not equal; recognize and reward best customers disproportionately. Understanding each customer becomes particularly important. And the same customers reaction to a cellular company operator may be quite different as compared to a car dealer. Besides for the same product or the service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer.

Keeping Existing Customers Grading customers from very satisfied to very disappoint should help the organization in improving its customer satisfaction levels and scores. As the satisfaction level for each customer improve so shall the customer retention with the organization.

Maximizing Life time value Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. Thus

the single adults shall require a new car stereo and as he grows into a married couple his needs grow into appliances.

Increase Loyalty Loyal customers are more profitable. Any company will like its mind share status to improve from being a suspect to being an advocate. Company has to invest in terms of its product and service offerings to its customers. It has to innovate and meet the very needs of its clients/ customers so that they remain as advocates on the loyalty curve. Referral sales invariably are low cost high margin sales.

Summarizing CRM activities: The CRM cycle can be briefly described as follows: 1. Learning from customers and prospects, (having in depth knowledge of customer) 2. Creating value for customers and prospects 3. Creating loyalty 4. Acquiring new customers 5. Creating profits

Customer Relationship Life Cycle

Customer Engagement Marketing Planning and Campaign Management - Enables complete marketing campaigns, including content development, audience definition, market segmentation, and communications. Telemarketing and Lead Generation -- Facilitates customer segmentation, lead qualification, call list management, and monitoring of campaign progress by using integrated analytical CRM functionality

Opportunity Management -- Provides sales tracking and sales forecasting; helps plan sales approaches, identify key decision makers, and estimate potential-to-buy and potential closing dates. Sales Activity and Contact Management -- Organizes daily workloads and customer contact information for display in calendar application; provides links to Business Intelligence reporting capabilities.

Business Transaction In the business transaction phase of the relationship life cycle Customer Relationship Management supports the following key functional areas: Order Acquisition -- Enables planning, organizing, and implementation of sales strategy; monitors sales pipeline, sales portfolio, and sales budget; facilitates coordination of budgets, forecasts, and reports on product and pricing trends. Internet Pricing and Configuration -- Delivers online systems that allow users to configure products online and compare prices across different catalogs and marketplaces; includes shopping basket functions. E-Selling -- Provides solution for selling products and services via the Internet; covers all phases of sales cycle, including one-to-one marketing, catalog browsing, search, order placement, payment, contract completion, and customer support. Telesales -- Manages inbound and outbound calls; handles high call volumes; provides efficient user interface; integrates sales information from back-office systems and product information from online catalogs. Field Sales -- Delivers key customer and prospect information to sales personnel at any place, at any time; facilitates planning and maintenance of sales activities, such as appointments, visits, and calls, and provides activity reports; creates quotations and takes orders; includes support for mobile and wireless devices.

Order Fulfillment
In the order fulfillment phase of the relationship life cycle Customer Relationship Management supports the following key functional areas: Complete Order Life Cycle Process -- Provides the ability to track and trace orders at all points along order management, manufacturing,

distribution, and service processes; proactively notifies customers of changes that affect delivery. Real-time Availability Checks -- Enables allocation of resources in realtime at the front-end; includes real-time access to inventory levels, production capacity, and leadtime requirements across the entire supply chain; enables visibility into product and service delivery dates Contract, Billing, and Financials Management -- Provides information about customer contracts, billing status, and accounts; integrates backoffice functions Fulfillment Visibility and Order Tracking -- Enables realtime tracking of order fulfillment; provides unique, customized and "guided" content for customers; allows sharing of information with customers via the Internet

Customer Service

In the customer service phase of the relationship life cycle Customer Relationship Management supports the following key functional areas: Interaction Center -- Provides inbound and outbound call processing, email management, and activity management to track, monitor, and enhance all customer contact; supports multiple channels for customer communication, including telephony and Web; integrates industry-leading eFront Office call center applications from Nortel Networks Clarify; provides certified interfaces to leading computer telephony integration (CTI) solutions. Internet Customer Self-Service -- Offers customers and prospects access to information and customer service functions via Internet; supports effective customer self service; includes case-logic system featuring advanced decision support for problem determination and resolution Service Management -- Meets varied demands of service management business; handles customer installations; facilitates simple and complex services; supports services carried out at customer site or in-house repair center (depot); supports involvement of external service providers; integrates contract management; checks customer warranties when services are performed; calculates services charges; integrates

information from materials management, cost accounting, billing, and accounts receivable; monitors day-to-day operations; helps decision makers with strategic management issues

Claims Management -- Facilitates handling of entire claims process. Field Service - (Mobile Service) -- Delivers and tracks customer and account information for field service personnel; provides service planning and forecasting, scheduling, and dispatching functionality through tight integration with fulfillment systems; includes support for mobile and wireless devices. Field Service - (Dispatch) -- Enables rapid allocation of service engineers and materials to meet incoming service requests. Integration of Marketplace Services -- Provides access to a broad range of applications and services hosted on virtual marketplace.

INDUSTRY ANALYSIS GLOBAL FOUR WHEELER INDUSTRY

The automobile industry has undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars were built. Some 70 years ago car assembly was primarily manual work. Today, the process of car assembly is almost fully automated. In the old days, firms attached importance to the production of virtually every part in a single plant, while today, carmakers concentrate on only a few specific production stages. Parts and module production, services and related activities have been shifted to other, specialised firms (outsourcing of production steps).Since the 1980s, it has become clear that further productivity gains to retain competitiveness can be possible only by outsourcing and securing greater flexibility. For example, firms, especially small car producers whose markets have been threatened by imports, have diversified their production programmes (e.g. by building off-roadars or convertibles) thereby introducing greater flexibility in the production process. Also, firms and their production have become more internationalized in lieu of outsourcing.

Current Scenario
The global passenger car industry has been facing the problem of excess capacity for quite some time now. For the year 2002, the global capacity in the automotive industry was 75 million units a year, against production of only 56 million units (excess capacity estimated at 25%). Efforts to shore up capacity utilization have prompted severe price competition, thus affecting margins and forcing fundamental changes in the industry. The pressure on sales and margins is driving players to emerging markets in pursuit of better growth opportunities and/or access to low-cost manufacturing bases. The concept of selling in the passenger car industry is changing from original sales towards lifecycle value generation, encompassing financing, repairs & maintenance, cleaning, provision of accessories, and so on. Vehicle manufacturers are moving into completely new materials and technologies partly guided by environmental legislationin striving to come up with radically different products. Some of these new technologies involve parts that can be bolted on to an existing vehicle with relatively few implications for the rest of the vehicle. Others are much more fundamental, and are likely to have a profound impact throughout the supply chain. The examples include battery, electric or hybrid power trains, and alternatives to

the all-steel body. Carmakers are increasingly outsourcing component production, and focusing on product design, brand management and consumer care, in contrast to the traditional emphasis on manufacturing and engineering. The increasing need to attain global scales underscores the importance of platform sharing among carmakers. All original equipment manufacturers (OEMs) are trying to reduce the number of vehicle platforms, but raise the number of models produced from each platform. This means producing a number of seemingly distinct models from a common platform. As in manufacturing, distribution in the automobile industry is undergoing significant changes, involving Internet use, retailer consolidation, and unbundling of services provided by retailers.

CRM Mahindra and Mahindra

DATA COLLECTION METHORDS AND SOURCES
EXPLORATORY RESEARCH
The method I used for exploratory research was

Primary Data Secondary data

PRIMARY DATA New data gathered to help solve the problem at hand. As compared to secondary data which is previously gathered data. An example is information gathered by a questionnaire. Qualitative or quantitative data that are newly collected in the course of research, Consists of original information that comes from people and includes information gathered from surveys, focus groups, independent observations and test results. Data gathered by the researcher in the act of conducting research. This is contrasted to secondary data, which entails the use of data gathered by someone other than the researcher information that is obtained directly from first-hand sources by means of surveys, observation or experimentation. Primary data is basically collected by getting questionnaire filled by the respondents.

SECONDARY DATA Information that already exists somewhere, having been collected for another purpose. Sources include census reports, trade publications, and subscription services. There are two types of secondary data: internal and external secondary data. Information compiled inside or outside the organization for some purpose other than the current investigation Researching information, which has already been published? Market information compiled for purposes other than the current research effort; it can be internal data, such as existing sales-tracking information, or it can be research

conducted by someone else, such as a market research company or the U.S. government.

Secondary source of data used consists of books and websites

DESCRIPTIVE RESEARCH STEPS in the descriptive research: Statement of the problem Identification of information needed to solve the problem Selection or development of instruments for gathering the information Identification of target population and determination of sampling Plan. Design of procedure for information collection Collection of information Analysis of information Generalizations and/or predictions Data collection took place with the help of filling of questionnaires. The questionnaire method has come to the more widely used and economical means of data collection. The common factor in all varieties of the questionnaire method is this reliance on verbal responses to questions, written or oral. I found it essential to make sure the questionnaire was easy to read and understand to all spectrums of people in the sample. It was also important as researcher to respect the samples time and energy hence the questionnaire was designed in such a way, that its administration would not exceed 4-5 mins. These questionnaires were personally administered. The first hand information was collected by making the people fill the questionnaires. The primary data collected by directly interacting with the people. The respondents were contacted at shopping malls, markets, places that were near to showrooms of the consumer durable products etc. The data was collected by interacting with 200

respondents who filled the questionnaires and gave me the required necessary information. The respondents consisted of housewives, students, businessmen, professionals etc. the required information was collected by directly interacting with these respondents.

DETERMINATION THE SAMPLE PLAN AND SAMPLE SIZE

TARGET POPULATION It is a description of the characteristics of that group of people from whom a course is intended. It attempts to describe them as they are rather than as the describer would like them to be. Also called the audience the audience to be served by our project includes key demographic information (i.e.; age, sex etc.).The specific population intended as beneficiaries of a program. This will be either all or a subset of potential users, such as adolescents, women, rural residents, or the residents of a particular geographic area. Topic areas: Governance, Accountability and Evaluation, Operations Management and Leadership. A population to be reached through some action or intervention; may refer to groups with specific demographic or geographic

characteristics. The group of people you are trying to reach with a particular strategy or activity. The target population is the population I want to make conclude an ideal situation; the sampling frames to matches the target population. A specific resource set that is the object or target of investigation. The audience defined in age, background, ability, and preferences, among other things, for which a given course of instruction is intended.

There are seven main area where SSI is rated in the scale of 1 to 10 & over all out out 1000. They are Sales initiation Dealer facility Deal Sales person Paper work and financial process Delivery timing

Delivery process

The survey was conducted by MAHINDRA and MAHINDRA Ltd and JD power. This survey is conducted every year and every quarter. These are the purchase based on the feedback received through a structured questionnaire.

To calculate Power Circle Ratings, J.D. Power and Associates begins with the syndicated study index scores or a specific standard of measurement which can be found, in most cases, in the associated press release. An example of an index score is found in the J.D. Power and Associates U.S. Retail Banking Satisfaction Study, where companies are ranked according to overall index scores based upon weighted responses to several survey factors. An example of a specific standard of measurement is found in the J.D. Power and Associates Initial Quality Study, where vehicles are ranked according to reported Problems Per 100 vehicles (PP100).

Using these measurements, Power Circle Ratings are calculated based on the range between the product or service with the highest score and the product or service with the lowest score. The JD power ratings are most widely accepted in the auto world. It is the most respected rating agency in our country.

Customer Relationship Management of Tata Motors

Tata Motors integrated Customer Relationship Management (CRM)Dealer Management System (DMS) initiative has crossed the significant milestone of covering 1000 locations in India and abroad.

Being implemented in phases since 2003 the combined on-line CRM-DMS initiative now supports over 15,000 users, within the company and among its channel partners in India and abroad, to conduct all customer-facing transactions.

The real time availability of customer and product information is enabling the company and its channel partners to improve response time and customer service. The success of this complex implementation extending across geographies is being made possible by strong partnerships with CMC, IBM, INCAT & Tata Technologies Limited (TTL), Oracle, Mercuri International,

Quality Kiosk, TCS, Tata Indicom, TIVS (Tatanet) and VSNL. Tata Motors has built its DMS using Oracles Siebel verticals and uses Siebel CRM and Siebel Analytics for all pre and post sales operations. The unique outside-in approach adopted by Tata Motors and the extended use of Oracles Siebel CRM makes it one of the most sophisticated and largest Siebel CRM implementations globally.

The implementation on IBM's high-end Power5 servers & enterprise storage is the largest centrally hosted implementation of Siebel CRM worldwide within the automotive industry. Tata Motors has also partnered with IBM to become IBM's first automotive ondemand client in India, taking benefits of the Global Service Delivery Centre based in Bangalore.

Tata Motors chose Siebel for its CRM programme, which with its user-friendly interface simplified the process of training the companys 15,000-plus dealer sales force. To support each dealer who is actually a business partner representing the company

with the end customer Tata Motors involved dealers throughout the configuration and deployment process. Integrating the Siebel Automotive CRM with our system ensured that our dealers would immediately see the value in the solution, says KR Sreenivasan, head of CRM and DMS. This helped us overcome the usual resistance to change and gain rapid acceptance from our dealers. Its CRM-DMS initiative, which has cost Tata Motors about Rs35 crore to date, has enabled the company to connect with 1,200 dealers online (the number is expected to rise to 1,600 in the next few months) and has allowed it to monitor finances and inventory at the dealer level, and services, spares and complaints at the customer end.

CRM-DMS has helped Tata Motors enormously in getting a firmer handle on its business. The system was implemented in three phases, the objective being to achieve success in one before moving on to the next: Phase 1 focused on capturing customer and vehicle data and automating routine tasks. Phase 2 this data was used to improve customer interactions and streamline product development and planning. Phase 3, now underway, concentrates on tuning the system and delivering additional value-added services to customers. The CRM-DMS platform has been integrated with a wide array of back-office applications, including inventory management, fulfilment and parts location. Pricing and tax calculations can now be adjusted for each dealers requirements. The comprehensive sales and reporting functionality built into the Siebel solution allows Tata Motors to distribute sales targets directly to its dealers and roll up sales numbers across the country in real time.

Tata Motors' dealers are a happy lot, too. The dealer management system has meant a gross reduction in the amount of working capital needed to run their businesses.

Transactions between the company and dealers, which earlier took up to 60 days, are now completed online and sealed in under seven days.

Even the service bays at the workshops have happy stories to tell. The system-based job card enables the mechanic to follow a checklist and diagnose faults through a process of elimination of probable causes, slashing diagnosis time. Simultaneously, the stores manager uses the system-based job card to assort a basket of the spare parts needed to fix the fault, and they are ready for pickup even before the mechanic walks into the stores. With zero waiting times built into the service process, the system generates a dashboard for the workshop supervisor, indicating idle capacity and process times, and highlighting bottlenecks to optimise the use of service bays. The recent implementation of an SMS capability means that the system directly pings the customer when the job card is closed on the system and his vehicle is ready.

The company can also now track each vehicle right through its operating lifetime, giving it valuable insights on product performance over time (earlier this was limited to the warranty period, after which scant information was forthcoming). Overall, we have transformed our organisation and made it truly customercentric, says Sreenivasan. One of our first dealers to install the system doubled his sales volume in three months without the need for additional manpower. Another said that he can, for the first time, view his entire stock of vehicles and see how his inventory was ageing. But, as the old clich goes, the proof of the pudding is in the eating. The real reward comes from the customer. With a product line spanning commercial, utility, and passenger vehicles, Tata Motors is on the road to forging ever stronger relationships with the people who have bet their money on the companys products.