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CRM and its applications in Automobile Industry

ISHAN SRIVASTAVA MCA IV (A) A1000710011

Contents
What is CRM ? CRM - Auto Industry Gears up Making CRM Reports CRM activities by automobile industries Relationship between IT AND CRM

What is CRM ?
Customer centric bussiness strategy with the goal of maximizing profitability and customer satisfaction. Includes various Methodologies, Technolgies and Procedures followed by the organisation to maintain good relationship with customers. Functions supporting the business
Sales, Marketing and customer Service Training, Professional Dvelopment Performance Management, Human Resource Development and Compensation.

CRM : Objective
Every customer who has their vehicle serviced by the dealership is contacted to ensure satisfaction and generate repeat business

Process Schedules service follow-up calls Schedule appointment Make appointment confirmation call and send email Technology Integrates with DBMS automatically trigger next day follow-up Creates action plans based on anticipated service needs Metrics: Service customer contact completion rate by staff member

Do Automotive Industry needs CRM ?


Highly competitive industry Enhance customer loyalty
Customer loyalty so that, when to buy a family car or business, once again choose the same brand of car, is a very important consideration.

Customer base
Helps find out new customers

CRM Model
The model has three key phases and three contextual factors.

o Three key phases


Customer Acquistion Customer Retention Customer Extension

o Three contextual factors


Marketing Orientation Value Creation Innovative IT

The Auto Industry Gears up for CRM

Present Scenario
The automotive industry is under pressure to take a far different approach to customer satisfaction Profit margins on new vehicles are paper - thin Manufacturers want to make sure they are capturing the consumer after the sale of the car and keep the consumer once they look for another car

CRM Importance
12 %
CRM Importance

30 %

58 %

Vital Element of the business Important

Little

The likelihood is that as CRM initiatives become established and successful in the industry, companies will place more importance on it.

Managing CRM Reports

Customer Queries
Direct Customer Support Telephone Customer Support Internet Customer Support

Customer Database Employee Database Daily Productive Report Sheet

Managing CRM Reports : Sample Format


DIRECT CUSTOMER SUPPORT
CUSTOMER NAME PERSONAL DETAILS TIME OF CALL QUERY SOLUTION FEEDBACK

CRM Activities by automobile industries

Maruti True Value Outlet


Helps customers by providing, facility to bring their vehicle to a 'Maruti True Value' outlet and exchange it for a new car by paying the difference. In return customers are offered loyalty discounts Helps retain the customer.

Maruti On Road Services


The MOS ensures
Round-the-clock services A computerized call-monitoring system dispatches a mobile MOS van to the customer at the earliest All MOS vans are managed by qualified Maruti Authorized Dealers / Certified technicians who are trained by Maruti in problem diagnosis Customer charges - Rs.100 on labour and spares

Tata motors - 3 phased CRM


Phase 1 Capturing customer data Phase 2 leveraging data to increase customer interaction streamiling product development Phase 3 Value adding services

Gold club membership


Privileged membership offers Bouquet of free services, attractive discounts and special offers, Over a 2 year membership period Customer shall be entitled for priority service at the Tata Authorised Service Centre No prior appointment shall be required

Relationship between IT and CRM


Customer Touch Points
Interface between your organisation and its customers.

Applications
Software and programmes that support the process.(e.g Data mining softwares & permission marketing)

Data Stores
Contain data on every aspect of the customer

CRM BENEFITS
Increase ( )
Revenues with increase in Sales management Customer satisfaction and resolve issues with service management Insight into sold products with vehicle management Efficiency with activity and e-mail management

CRM BENEFITS (Contd ..)


Quality Decrease in overall costs Decision support Enterprise ability Customer attention

CASE STUDY ON Customer Relationship Management

Recently I have been in the market for a vehicle. When we arrived at the local dealership, we spent some time looking at the model we wanted on the dealers lot. We noticed folks inside and there were plenty of customers outside, but not enough sale staff for the people. After about half an hour of looking we decided to go and get someone to help us. The salesperson was pleasant enough and we took the vehicle on a test drive. We were SOLD; this was definitely the car we wanted. The dealing process was ok.. Stock was searched and they had nothing in our requirements on site but there was a car coming in. We were informed car would be delivered just under 3 months later. I decided it was worth the wait.

CASE STUDY (contd.)


I was informed they would need a $1000 deposit to reserve the car for myself. The Sales Manager was introduced to us and informed us that we were under no obligation to purchase the car as it was ordered stock anyway. If we changed our minds, we would both come out no worse and the $1000 would be refunded whether we purchased the car or not, all we needed to do was confirm the finance. I signed, shook hands and left excited to have a new car soon. That week, a situation arose in our life that made buying a car seem like not something we also needed to deal with at this time. We could afford to wait while things settled down I called the sales person that week to explain the situation and that we would not be proceeding with the purchase of the car. I relayed the situation and that we werent happy with the finance options. I assured him that the deal was fine, the sales process was fantastic, it was nothing that they had done. The salesperson got slightly annoyed and stated that they would not be able to refund me the $1000, in tone. I reminded him of the conversation we had with him and his sales manager. He acknowledged and told me to put it all in and email and send it to him for the refund to be completed.

CASE STUDY (contd.)


After a week I checked my account. The money had not been refunded. I emailed the sales person to check the progress and asked him to let me know if any issue arose, to please contact me. Two days later, there was still no email reply. I called the dealership. The sales person had left for the day, I left a message for him to call me back. The phone call was not returned after the weekend. I called again late Monday afternoon. I was informed Monday is the salespersons day off. I asked for the sales manager. If was his day off too. I emailed the sales person after the phone call and wrote that I had not received the refund as yet and would like him contact me as soon as possible. I still had no reply by this weekend (a week after the previous email), so my partner and I decided to go into the dealership to sort it out. Why werent they communicating with me? We saw the Sales Manager in his office as we walked by and checked into reception. We were attended to by the Corporate Sales Manager. We politely introduced ourselves and asked if we could see the Sales Manager. He went to the Sales Manager and came back to ask us what it was regarding. We explained the situation, lack of contact and thought that there must be an issue and we would like to help rectify it today.

CASE STUDY (contd.)


The Corporate Sales Manager had a look of disbelief and slight embarrassment and asked if we had filled out a refund form yet. We said we were not aware there was one and we had not. He sat us down in the cafe and went and got the paper work. It was all completed in five minutes. The Corporate Sales Manager apologised and asked if there was anything else we required. Not at the moment, we thanked him for his help and told he had been a pleasure to work with. After thinking about the situation all day, I cant help but think this all could have been a lot better and a lot less stressful if I had just been communicated with. If the process was to simply fill out a form, thats fine, put me through to the person who can help me with that if it is not your area to do so. I am happy to come in to do it if that is the requirement. Just communicate with me.When the time is right to buy in the next few months I would have happily gone straight back to the dealership to buy again. However after this, never again.

CASE STUDY (contd.)


I would think that in any case, it might have occurred to the salesperson that I, the customer, might one day be in the market again. Wouldnt the salesperson want to make sure their dealership is the first positive thought of a dealership in my mind? To leave on a great note, until next time? I also wont be recommending anyone go to that dealership after this experience. I dont expect to be pandered to after getting out of a deal. I also dont expect to be totally ignored if they not completed there end of the deal. A lost profitable sale and minimum 3 years of service work, negative experience relayed in conversation; simply due to a poor attitude leading to poor communication, over $1000. In the end, good communication is a simple necessity in a customer service process. It can go a lot further than is immediately apparent.

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