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problem1) Create a study of Indian Banking Industry and analyse changes which took place in the relationship practices of this industry?

problem2) Describe concepts of customer retention and customer recall management?


Case Study

Customer Relationship Management in Shopper’s Stop

Foundation of Shopper’s Stop Ltd. was laid on 27th October, 1991 by K. Raheja Corp. Group of Companies.  Being amongst India’s biggest hospitality and real estate players, Group sets another milestone with their lifestyle venture. The purpose was to create a fashion and lifestyle store for the whole brands for the same. It tried to bridge gap among the unprofessionally managed, and poorly stocked merchandise and ill-mannered staff, and growing urban upper middle class who had money to spend but were asking for a quality environment.

From its inception, Shopper’s Stop has progressed from being a single brand shop to becoming a leading fashion & lifestyle store for family. A pioneer of organized retailing in India, today, it has become the highest benchmark for Indian retail industry. Its stores are present across different Indian cities like Bangalore, Hyderabad, Jaipur, Delhi, Chennai, Mumbai, Pune, Gurgaon, and Kolkata. It has the national presence of over 6,00,000 square feet of retail space, stocking over 250 brands of garments and accessories.

In fact, company’s continuing expansion plans aim to help it meet challenges of the retail industry in the even better manner than it does today. Its vision is to be the global retailer in India and maintain its No.1 position in Indian market in Department store category. Being at the helm of a customer centric business, there is a strong emphasis on customer satisfaction which, in turn, translates into taking all aspects of the business very seriously.

CRM Practices

Retail chain major is eyeing 50% sales growth from its CRM initiatives. The company has also line up the aggressive expansion plan, targeting smaller towns and cities in the country. According to Managing Director and CEO of the company, it has given the new direction to its CRM initiatives after acquiring a business intelligence software called “Business Solutions”.

The new software helps generate intelligent data from Shopper’s Stop customer base of about 2,30,000. Company then collects this data and touches base with customers via direct mailers informing them about the upcoming events. Company release says: “Last year, about 50 % of our sales came from repeat customers and this year too we are expecting this number to grow “. The company claims that it has taken its CRM initiatives to a new height and now calls its loyalty programmes.

CEM  Initiatives

Overanalysing of company’s sales trends and pattern helped realize that most of the sales were coming from old customers primarily through repeat purchases it thought of focusing on those customers. The company tried to leverage data by providing information and the company may ultimately be benefited. As, if the customer had bought a pair of trousers, it tells him about the new range of shirts that it has just brought into the store.

Under the CEM programme, the members are called “First Citizens”

At the Shopper’s stop, the First Citizens are given the following exclusive benefits and privileges:

• Reward points every time they shop

• Exclusive offers

• Updates on what one could look forward to shop for

• Exclusive benefits and privileges

• Exclusive cash counters so that they could spend more time shopping rather than waiting in a line.

There are three membership categories:

1. Classic moments

2. Silver edge

3. Golden glow

The company believes in providing the best experiences possible, including best benefits and privileges. The programme gets as rewarding as one makes it as it depends on the membership status that is upgraded when one qualifies with essential purchases during membership period.
Co-branded CRM initiatives: Shopper’s Stop has been launching various schemes to benefit its profitable customers and has been coming up in partnership with various leading players who matter for retailing industry. One such programme partner is Citibank.

First Citizen Citibank Credit card: The First Citizen Citibank Credit Card – The first citizen credit card – India’s only co-branded store card combines the benefits of Shopper’s Stop loyalty programme. First Citizen and advantages of the Citibank Credit card. This entitles customers to the benefit of:

a) Earn double reward points

b) 0% EMI scheme

First citizen Citibank debit card: The First Citizen ATM/debit card is India’s first co-branded ATM/debit card in the retail sector. While this card could be used as a regular debit card and at the ATM to withdraw cash, it also helps the customer collect reward points every time he purchases merchandise at any shopper’s stop outlet. This also gives automatic membership to First Citizen Shopper’s Stop Loyalty programme for those who are not First Citizen members yet. Company had also gone in for massive IT initiative to support customer support it had planned for. It choose software tools for facilitating, the analysis of the customer data. They have been using the combination of business objects and the Statistical Analysis System (SAS) solutions for trend analysis, promotion, management, consumer behaviour, segmentation, buying basket analysis, profitability and lifecycle analysis.

Case problems:

problem1) Shopper’s Stop was the first among organized retail players to initiate CRM practices. What do you dtermine from the above case study to substantiate this view? 

problem2) Shopper’s Stop has initiated many things in the direction of keeping customers for life. What are those initiatives?

problem3) If you were in the place of In charge of relationship management practices, what innovation will you have done?

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M93416

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