CUSTOMER RELATIONSHIP MARKETING Maruti Suzuki

DEFINITION OF CRM

Customer relationship management (CRM) is a term applied to processes

implemented by a company to handle their contact with their customers. CRM software is

used to support these processes, storing information on customers and prospective

customers. Information in the system can be accessed and entered by employees

indifferent departments, such as sales, marketing, customer service, training, professional

development, performance management, human resource development, and

compensation. Details on any customer contacts can also be stored in the system. The

rationale behind this approach is to improve services provided directly to customers and

to use the information in the system for targeted marketing and sales purposes.

CRM stands for Customer Relationship Management. The genesis of CRM lies in the

observation that one element in competitive advantage is the ability of companies to

retain customers. Companies have moved to implement a strategy of satisfying the

customer so as to optimize potential future earnings. This seems to be an especially valid

approach considering the current Internet focus of “your competitor is only a click away”.

Many companies have spent millions of dollars on SFA/ERP/CRM/eCRM solutions only

to see them fail miserably.

Gartner Group, the leading industry research group defines CRM as “a customer focused

business strategy designed to optimize profitability, revenue and customer satisfaction.”

The key word here is “strategy”. CRM is not a piece of software, nor is it any other type

of technical solution. Any company that sees the way to CRM as implementing a

software package will see their CRM project fail.

CRM is a philosophy for managing relationships with your customers; the software

package is a tool that you can use to reach your goals. You must define your CRM

strategy before you go shopping for a technical solution. Then you must see how the

solution fits with your strategy, and not how your strategy can be made to fit with the

technical solution.

WHY CRM SHOULD BE USED

In the commercial world the importance of retaining existing customers and expanding

business is paramount. The costs associated with finding new customers mean that every

existing customer could be important.

The more opportunities that a customer has to conduct business with your company the

better, and one way of achieving this is by opening up channels such as direct sales,

online sales, franchises, use of agents, etc. However, the more channels you have, the

greater the need to manage your interaction with your customer base.

Customer relationship management (CRM) helps businesses to gain an insight into the

behavior of their customers and modify their business operations to ensure that customers

are served in the best possible way. In essence, CRM helps a business to recognize the

value of its customers and to capitalize on improved customer relations. The better you

understand your customers, the more responsive you can be to their needs.

CRM can be achieved by:

➢ finding out about your customers' purchasing habits, opinions and preferences

➢ profiling individuals and groups to market more effectively and increase sales

➢ changing the way you operate to improve customer service and marketing

Benefiting from CRM is not just a question of buying the right software. You must also

adapt your business to the needs of your customers.

CRM (customer relationship management) is an information industry term for

methodologies, software, and usually Internet capabilities that help an enterprise manage

customer relationships in an organized way. For example, an enterprise might build a

database about its customers that described relationships in sufficient detail so that

management, salespeople, people providing service, and perhaps the customer directly

could access information, match customer needs with product plans and offerings, remind

customers of service requirements, know what other products a customer had purchased,

and so forth.

BENEFITS OF CRM: Streamlined sales and marketing processes

Higher sales productivity

Added cross-selling and up-selling

Improved service, loyalty, and retention

Increased call center efficiency

Higher close rates

Better profiling and targeting

Reduced expenses

Increased market share

Higher overall profitability

Marginal costing

DRAWBACKS OF CRM: Dramatic increases in revenue, higher rates of client satisfaction, and significant savings

in operating costs are some of the benefits to an enterprise. Proponents emphasize that

technology should be implemented only in the context of careful strategic and operational

planning. Implementations almost invariably fall short when one or more facets of this

prescription are ignored:

➢ Poor planning : Initiatives can easily fail when efforts are limited to choosing and

deploying software, without an accompanying rationale, context, and support for the

workforce. In other instances, enterprises simply automate flawed client-facing processes

rather than redesign them according to best practices.

➢ Poor integration: For many companies, integrations are piecemeal initiatives that

address a glaring need: improving a particular client-facing process or two or automating

a favored sales or client support channel. Such “point solutions” offer little or no

integration or alignment with a company’s overall strategy. They offer a less than

complete client view and often lead to unsatisfactory user experiences.

➢ Toward a solution: Experts advise organizations to recognize the immense value of

integrating their client-facing operations. In this view, internally-focused, department

centric views should be discarded in favor of reorienting processes toward information-

sharing across marketing, sales, and services

Customer Relationship Management by Maruti Suzuki India Ltd.

About Company:

Maruti Suzuki India Ltd. is one of India's leading four-wheeler automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. The company headquarter is in Gurgaon, Haryana (near Delhi). More than half of the total number of cars sold in India wears a Maruti Suzuki badge. History:

Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. On 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. Product Mix:

Maruti Suzuki offers 13 models, Maruti 800, Alto, Ritz, A Star, Swift, Wagon R, Zen Estilo, Dzire, SX4, Grand Vitara. Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.

Customer Relationship Management:

In these competitive times the challenge is to keep inventing newer ways of doing things to keep the customers in your fold.

Over the last few years, the company strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers.

These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers.

The company has retained its competitive edge by offering high quality products.

In the field, the products are supported by rapidly expanding networks. The company has diverse networks for new cars, spares, service, pre owned cars and so on, and all of them were in expansion mode last year to enable the company get closer to the customer. Servicing customers 24X7 ..... 365 days....

The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J.D.Power Asia Pacific. It is 9th time in a row.

The company was first car company in India to launch a Call Centre in the year 2000.

The award mirrors the company's commitment towards "Customer Obsession´.

Key Initiatives

Car pickup & delivery facility for women car owners.

Quote Unquote: "The study finds that vehicle pickup and delivery before and after service has a strong impact on customer satisfaction. In particular,

customers who say that their vehicle was picked up from their doorstep before

service and delivered to the same point after service are notably more delighted

with their after-sales service experience, compared with customers who do not

receive this service...."

Maruti also launched mission to promote safe driving habits jointly with Institute of Driving Training and Research.

It also launched µDil Se¶- a special program for Indians living abroad or NRIs, to facilitate them to gift Maruti cars online to friends and relatives at home.

Online club µSwift Life¶ is made for all Swift owners. Setting up "Express Service Bays" & "2 - Technician Bays"

As the name suggests the company set out to delight its customers by offering them faster car service by

introducing new concepts such as Express Service Bays &

2- Technicians Bays.

These are done for customers who are hard pressed for time.

Both the initiatives undertaken in this direction have helped improve customer interface and also helped increase the productivity and capacity of

existing workshops. Mega Camps

The company aggressively conducts 'Mega Camps' throughout the country round the year.

Activities undertaken during a mega camp include

complimentary car wash, AC & Pollution check up, oil and fuel

top ups, wheel alignments etc.

Apart from mega camps workshop camps like A/C checkup camps, PUC and general check-up camps, Locality camps , Pre monsoon camps etc are also

regularly conducted as part of customer connect initiatives.

Service at Door Step through Maruti Mobile Support

Another unique initiative is the door step service facility through Maruti Mobile Support.

Maruti Mobile Support is a first of it's kind initiative and is expected not only to help the company reach out customers in metro

cities but also as a mean to reach semi urban /rural areas where setting up of new

workshop may not be viable Car Safety device: Immobilizer

The company used technology to meet customer needs and even delight them. Following feedback that the company's

cars were more prone to theft owing to their resale value, the

company worked on an anti-theft immobilizer or "I-Cats;" system for all its new

cars. Complete car needs

The company's effort of providing all car-related needs -- from learning to drive a car at Maruti Driving Schools to car insurance, extended warranty and

eventually exchanging the existing car for a new one -- under one roof at

dealerships also enhances customer satisfaction.

Different types of CRM at Maruti Suzuki

Analytical CRM

· Designing and executing targeted marketing campaigns

· Designing and executing campaigns, e.g. customer acquisition, cross-selling, up-selling,

add on-selling

· Analyzing customer behavior in order to make decisions relating to products and services

(e.g. pricing, product development)

· Management information system (e.g. financial forecasting and customer profitability

analysis)

Operational CRM

· Managing campaigns

· Enterprise marketing Automation

· Sales Force Automation

· Sales Management System

Sales Intelligence CRM

· Cross – selling/ Up-selling/ Switch –selling opportunities

· Customer drift

· Sales Performance

· Customer Trends

· Customer margins

· Customer Alignment

Collaborative CRM

§ A Buying Experience Like No Other

Maruti Suzuki has a sales network of 307 state-of-the-art showrooms across 189 cities,

with a workforce of over 6000 trained sales personnel to guide MUL customers in finding

the right car.

§ Quality Service Across 1036 Cities

In the J.D. Power CSI Study Maruti Suzuki scored the highest across all 7 parameters:

1. Least problems experienced with vehicle serviced,

2. Highest service quality,

3. Best in-service experience,

4. Best service delivery,

5. Best service advisor experience,

6. Most user-friendly service and

7. Best service initiation experience.

92% of Maruti Suzuki owners feel that work gets done right the first time during service.

The J.D. Power CSI study also reveals that 97% of Maruti Suzuki owners would probably

recommend the same make of vehicle, while 90% owners would probably repurchase the

same make of vehicle.

(Source: Owners Privilege Zone, Maruti suzuki.com)

Other advantage: which help in CRM

§ One Stop Shop

At Maruti Suzuki, customers will find all car related needs met under one roof. Whether

it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set

to provide a single-window solution for all car related needs.

§ The Low Cost Maintenance Advant

The acquisition cost is unfortunately not the only cost customers face when buying a car.

Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability

of spares is most competitive, and it is here where Maruti Suzuki shines.

§ Lowest Cost of Ownership

The highest satisfaction ratings with regard to cost of ownership among all models are all

Maruti Suzuki vehicles: Zen, Wagon R, Esteem, Maruti 800, Alto and Omni.

CRM through Social Relationship

§ In 1999 Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as

social initiatives.

§ Maruti Driving School-Available in all major cities. Lady trainer for lady

customer.

§ Institute of Driving Training and Research.

Stations of experience

CONCLUSION

As the leading manufacturer in the small car segment of the Indian market, we would like

suggest Maruti Suzuki Ltd and like to conclude by giving my some point of views like:-

· To strengthen their leadership position in the small car segment of the Indian market;

· To continue to expand the size of the Indian market for small cars by strengthening and

expanding the dealer network and making automobile financing available at competitive

rates; and

· To continue to benchmark them against improving global manufacturing, marketing and

other practices and standards, strive to increase customer satisfaction through quality

products and new\ initiatives, and promote the financial strength of our sale network.

· Maruti Suzuki should make some compact cars with sporty looks like Swift .It will give

new dimensions to the success of Maruti Suzuki.

· The most important suggestion would be: Maruti Suzuki has emphasized highly on their

CRM policies and they must carry the same practices and they must concentrate that

these services should not go down rate they must work on strengthening the CRM

policies. Because in India, the after sale services matters a lot. If one company is very

good at all aspects but not good at the CRM policies customers will simply switch that

brand. But if a company is Excellent in its After Sale services or co-coordinating in

excellent manners with the customers The Customers love to attach with that company

whether all the features are not good. So to maintain the success Maruti must be good at

the CRM policies as it is now.

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