A PROJECT REPORT ON CUSTOMER RELATIONSHIP MANAGEMENT WITH REFERENCE TO RELIGARE SUBMITTED BY:
NAME: SUMIT TYAGI REG NO.: 201213059 SUBMITTED TO SCDL
In partial fulfillment of the requirements for the award of degree of POST GRADUATE DIPLOMA IN BUSINESS ADMINISTRATION
Page 1 of 51
TABLE OF CONTENT S.NO. 1.
CHAPTERS
PAGE NO.
DECLARATION
2.
CERTIFICATE OF SUPERVISOR
3.
EXECUTIVE SUMMARY
4.
RESEARCH METHODOLOGY
5.
PROJECT OBJECTIVES
6.
INTRODUCTION
6.1
6.2 6.3 6.4 7. 8. 9. 10. 11. 12.
Customer relationship management
Need of the study Review of Literature Limitations of the Study DATA ANALYSIS AND INTERPRETATION FINDINGS AND ANALYSIS RECOMMENDATION CONCLUSION BIBLIOGRAPHY QUESTIONNAIRE
LIST OF TABLES Page 2 of 51
S.NO
LIST
PAGE NO.
7.1
Profession In which respondent is engaged
7.2
Time period of investing
7.3
Reasons For Investing
7.4
Awareness of Customer relationship marketing policies
7.5
Customer Relationship marketing Policies
7.6
Choose any 3 Customer relationship Practices
7.7
Reason for Religare to follow these practices
7.8
Influence of Customer Relationship Practices in further Investing
7.9
Recommend to others
7.10
Experience in Stock market
DECLARATION
Page 3 of 51
This is to declare that I “SUMIT TYAGI” have carried out this project work myself in part fulfillment of the POST GRADUATE DIPLOMA IN BUSINESS ADMINISTRATION (SPECIALIZATION – OPERATIONS MANAGEMENT) Program of SCDL. The work is original, has not been copied from anywhere else and has not been submitted to any other University/Institute for an award of any degree/diploma.
Name: SUMIT TYAGI
Reg No: 201213059
DATE: 1 MAY. 2015
Signature:
Page 4 of 51
CERTIFICATE OF SUPERVISOR
Certified that the work incorporated in this Project Report on CUSTOMER RELATIONSHIP MANAGEMENT WITH REFERENCE TO RELIGARE submitted by SUMIT TYAGI is his original work and completed under my supervision. Material obtained from other sources has been duly acknowledged in the Project Report
Date: 1 MAY. 2015
Signature of Guide
Page 5 of 51
Page 6 of 51
RESEARCH METHODOLOGY
The research methodology is the specification of method of acquiring the information needed to structure or solve the problem. It is not considered to be the decision of facts but also building up the data knowledge and to discover the new fact involved through the process in the dynamic change in the society. Scope of the project This research was conducted in NCR Region on those respondents who have been investing inequities through Religare Securities. Type of Research The present study, being conducted, followed a Descriptive Design. It produces a picture of phenomenon in which decision maker is entrusted. Design of descriptive studies includes the nature and source of the data, the nature of expected results and the analytical methods. Descriptive research describes about the population or phenomenon being studied. Descriptive research is pre-planned and structured. Method of Data collection • Primary Data The method followed in obtaining the primary data was through the structured questionnaire. • Secondary Data: It refers to the information or facts already collected. The data was taken from internet and journals. Sample Design Universe -All the investors who invest in equities through Religare Securities. Population - the investors who invest in equities through Religare Securities in NCR Regenion.
Page 7 of 51
Page 8 of 51
OBJECTIVES OF THE PROJECT
To study the Customer Relationship Management practices that is implemented at customer level To study the effect of Customer Relationship Management Practices while making purchase and repurchase decision To know the satisfaction level of Religare Equity clients in NCR region.
Page 9 of 51
Page 10 of 51
INTRODUCTION
CUSTOMER RELATIONSHIP MANAGEMENT Customer Relationship Management (CRM) is a well-known business concept. Managers today are working hard to build and maintain a relationship with the customer - given the importance of customer lifetime value. While the concepts of CRM and Customer Lifetime value are well established and understood by managers, managing customer relationships has become a challenge for many managers. Several firms have implemented dedicated software tools (Seibel, salesforce.com etc.) for customer relationship management, and even more number of companies is planning to do the same. Few firms have even created offices of customer relationship management: Client partners, Account managers, Program Managers etc. In spite of all these efforts, managers are finding it hard to manage customer relationships. The challenge of managing customer relationships led to a new concept called Levels of Customer Relationships developed by INSEAD, France. The central theme of this concept is: • Customer relationship is an evolutionary process that can be identified as 6 distinct stages. • Customers have different needs and expectations during different stages of this relationship • Customer relationship is a dynamic process and can move from one stage to another based on customers aspirations and customers buying experience. Why do customers have a relationship with the vendor? Every salesman knows that customer often wishes to have a relationship with the vendor. Many firms therefore want to make use of this relationship and have instituted customer loyalty programs - aimed at rewarding loyal customers. For example, Airlines have free miles program, credit card firms have points program, Grocery stores have a special discount for loyalty cardholders etc. Looking from the customer’s perspective, customer expresses a need for a relationship with the vendor for a few basic reasons: satisfy their needs, convenience, reliability, and lower cost of transaction. Customers need products or services and will obtain them, but they are willing to enter into a relationship with the seller to make the process of buying easier and a more pleasant experience. One has to note that the intensity or depth of the relationship, which the customer expresses to have with the vendor, depends in the intensity of his/her needs. If a product/service is vital to the customer e.g. financial product, then customer is willing to have a deeper relationship in order to have their needs satisfied as precisely as possible. On the other hand if the customer wants a routine service or generic product e.g. customer needs tips from his broker while trading in the Page 11 of 51
stock market, then the relationship is superficial - characterized by buyers convenience. To understand this considers the following examples: 1.
Customer, who is a telecom service provider, wants to implement ERP software. Since the software has to be customized for the Telco, the customer is willing to establish a deep relationship with the vendor by having a development & maintenance contract with the vendor.
2.
Customer, who wants a copy of MS Project installed in a computer. Since this is a simple purchase, the customer wants to buy it from a nearby store and install it himself. Thus there is no real relationship between the customer and the vendor. Both examples point to the fact that the level of relationship a vendor enjoys with the customer is directly dependent on the criticality or importance of customers’ needs. In short, customers enter into a relationship with the vendor in order to serve their own needs. Strengthening Customer Relationships We now understand that the depth of the relationship between vendor and customer is directly dependent on the intensity of the customer’s needs. Also note that the customer defines the depth of relationship. This creates a challenge for a salesman or a marketer at the vendor firm. For a vendor to increase sales, the vendor firm must improve the relationship with the buyer. And to improve the relationship, vendor must know the current level/stage of relationship he has with the customer. So the first step in managing customer relationship is to know and understand the levels of customer relationships. 2 Levels of Customer Relationships As mentioned earlier, relationship between buyer and seller can be identified in 6 distinct levels Level-1 being the lowest level of relationship and level-6 being the deepest level of relationshipLevel-1: Utility Need Level-2: Convenience Need Level-3: Comfort Need Level-4: Personal Recognition Need Level-5: Self-expression Need Level-6: CO-Creation Need From a marketing perspective, the customer lifetime value is lowest at level-1 and is highest atlevel-6. This is also reflected in the revenue or sales from a customer. Customer, with whom a company enjoys the highest level of relationship, will also be the most profitable customer. It is therefore in the vendor’s best interest to have very deep relationship with the customer.
Page 12 of 51
Level-1: Utility Need This is the most basic interaction between customer and vendor. Here the customer desires to buy a particular product/service. Customer interacts with the seller with the sole aim of acquiring the product/service. The relationship between the firm and the customer is characterized by efficiency in transactions, straightforward, no-frills selling. To increase sales, vendor must work on availability of the product/service. Customer will buy only if a product/service appeals to the rational side of the customer i.e. Price and convenience. Customer does not bond with the vendor, as the relationship is a purely utilitarian one - exchange of goods/service for money. The vendor should respond to the customer (in this level of relationship) by providing the required goods/service, and refrain from interacting at a deeper level i.e., by not offering added products/service - other than those requested by the customer. If the vendor insists or attempts to force a relationship to a higher level, the customer may "pull-out" thus risking future sales. To understand this, consider this example: If someone purchased a laptop from DELL Computers. He placed an order online - for a particular configuration. His expectation from the vendor is that Dell will deliver the computer on stated delivery date; he is buying from Dell to meet up to the price that is attractive for him. If the salesman at Dell attempts to push additional hardware or software - which is not what he wanted, he might get annoyed and cancel the order. Vendors must first identify the level of relationship the customer has with them, and then craft a strategy to deepen it. In this case, a vendor can deepen the relationship by increasing the number of interactions. This can be done by: Offering a wide range of products/service, having 24/7 sales operations - i.e., Internet or all 24-hour shops. For example, Dell can increase the number of customer interactions by offering a full range of computer accessories: Printers, Scanners, cartridges, office software, Computer games etc. Dell can increase the number of customer interactions by offering value added services such as on-site maintenance, free software updates etc .Augmenting the basic service/goods with a value addition can deepen utilitarian relationships :Cross selling or value addition Level-2: Convenience Need Once the customer has easy access to service/goods that they need, customers look for ease of purchase process that denotes a second level of relationship. The vendor should respond b by providing services that simplify the buying process i.e., identify and eliminate those procedures that are a hindrance to obtaining a product/service. For example, having a shorter checkout lines in a store, having the products courier & providing the tracking number to the customer, having a service personal ready to attend the customer when the customer enters the bank/hotel/office etc. To improve the buying process, the vendor must understand thoroughly the entire customer purchase experience and then eliminate the nagging problems in the purchase process. Service companies often resort to mystery shoppers - who act as customers and buy the product/service Page 13 of 51
to measure & improve the buying experience. Often times, managers listen to feedback from front-line employees for suggestions to improve the customers buying experience. For example, Dell provides the exact shipment details of the computer and is delivered on the specified time. In addition, Dell has a complete e-Commerce website which enables a secure and easy payment method. Airlines provide comfortable lounges at the airport - while customers wait for their flight. Airlines also provide e-ticketing, curb side luggage check in, on-line flight details etc., to make customers feel comfortable during the purchase process. Often times, there are several instances of customers abandoning their purchase process in the midway. This is the sure sign of an inefficient and inconvenient buying process. Relationships at this level can in strengthened by widening the service interactions with customers. By this I mean, look at the ways the customer buys your Product/service and then provide additional services to make it simpler and easier for the customer. Customer Activity Mapping (CAM) & Customer Decision Mapping (CDM) are the tools that can be used to analyse the decision-making, buying, using, and consumption experience. And in each stage, the objective of the vendor is to identify situations that pose obstacles to the buying process. Making the buying process as pleasurable as possible, a vendor can strengthen relationship with the customer in this level and also take the relationship to the next level. Level-3: Comfort Need Comfort Need Once the customer has a convenient buying process, then they wish to have a "pleasant shopping experience" i.e., the customer seeks a buying interaction where he feels comfortable. This implies that the vendor should foster a buying environment in which customer feels comfortable and is characterized by an agreeable and relaxing purchase ambiance. For example, many multi-million dollar business deals are done at resorts - away from the clutter of the office environment. BASF, a fortune-100 chemical company often conducts the contract negotiations on a luxury yacht. This provides the right ambiance and mood to put the customer at ease and feel comfortable during the buying process. Irony of this "comfort need" is that customers often overlook the comfort factor - and often customer notices the absence of the comfort. A discomfort during the buying experience is easily noticed and registered, while customer forgets comforts. CRM efforts in this level must be focused on making the customer feel comfortable; create a feel-at-ease feeling. The marketer should strive to provide customers comfort, fun, surprise, and other means of generating a positive feeling. Note that this is distinctly different than relationship building at level-2, where the focus was to remove any factor, which caused inconvenience to the customer. Page 14 of 51
Relationship is built on a feeling of ease and providing more of the same - greater comfort, fun and pleasant interaction environment can strengthen comfort. This involves training the front-end employees to provide a Comfortable experience to the customer and being sensitive and responsive to the customers level of interaction the marketing efforts must be directed at improving/building the memory of pleasant experiences of the customer. Level-4: Personal Recognition Need Often times, regular/loyal customers expect the vendor to interact in a way that his/her personal choices are recognized. This implies that the customer is seeking a level of relationship where they expect the vendor to recognize their needs - without them asking for it. At this level, the loyalty of customer has been well established; customer enjoys the convenience and a feeling of comfort. Here, in this level of relationship, the customer needs are "personal". In earlier levels, the needs were mostly contextual, i.e., based on the context of buying experience.
CRM efforts at this level are to personalize the service/product offerings. For example, financial institutions treat their high value customers with personalized check books, providing a personal financial advisor, etc. In business-to-business environment, this is characterized by having a dedicated relationship manager who interacts with the client, who knows the clients exact need sand has the authority to deliver the customers’ needs. The "relationship manager" or "client partner" can also make suggestions; provide consulting advice to the customer - Along with dinners/lunches, tickets to popular events etc. Advent of Internet has created opportunities for vendors to provide customized web interfaces to each of their clients. Amazon.com ebay.com etc. Provide customers with customizable web interfaces To bring a customer to this deep level of relationship, the level-3 relationship of making the customer feel comfortable must always be accomplished. Only when the customer is comfortable, vendor can discover (discreetly) the personal needs of the customer - and then move the relationship to the next higher level. Relationship at Level-4 is analogous to that of a romantic partner - but not a spouse or fiancé. The relationship at this level is more personal – but without invading the privacy of the customer. The timing therefore needs to be right - so that any potential tensions or conflicts are avoided or reduced to minimum. The company must know the customer details, possible tastes and preferences sufficiently well to Build the relationship. Interactions must be respectful, as exchange of personal information may be perceived as invasive.
Page 15 of 51
The irony of the CRM systems at this level is that customer feels that the CRM systems compromise customer’s privacy - and for that reason most customers are reluctant to share personal information with the vendor, which in turn cause most CRM implementations fail. A salesman or marketer or account manager must therefore take extra precaution not to reveal any personal information of the customer to the CRM database system. This personal information must be carried in the mind of the vendor salesmen. Customers need for personal recognition may be met by very simple acts by the salesman, such as rewards for customer loyalty (given to the customer - i.e., buying agent or the key decision maker); tailor made products, and words of appreciation. Level-5: Self-_Expression Need Once the customer feels that the vendor recognizes him/her as person and can associate personally with the vendor, the customer is ready for the next level of relationship - that is of Self-_ expression. Customers who are in this level of relationship expect the vendor to focus on customizing and personalizing the product/service offerings. The customer expects the vendor to have a clear understanding of their needs and the vendor should be able to meet them. The relationship is characterized by mutual trust, confidence & respect. For example, Dell Computers being a customer of Intel expects Intel to know its needs for latest and most powerful microprocessors for the Christmas season. The Customer then expects Intel (vendor) to announce and supply the latest processors in time so that Dell can ship the computers to its customers in time for Christmas. In a consumer world, a common example will be that of a (famous) client and his/her fashion designer. The client expects the fashion designer to know his/her tastes and provide clothes accordingly. It must be noted that in a B2B world, customers are more rational. Their business needs drives the relationship and is partly independent of personal factors. As a result, vendor can build this relationship by learning the customer needs. Based on these learning/insights, vendor should be able to offer highly customized and personalized offerings. Customer relationships in levels 1-4 are defined by customer’s experience and are therefore heavily dependent to the external environment (i.e., external to the customer). At levels 5 and above the relationship depends on internal and external factors including rational and emotional considerations. The key for success in building relationship at this level is to understand the customers’ implicit needs - i.e., those needs that are not expressed verbally. Vendor can strengthen the relationship by understanding the customer’s implicit needs and focusing on different ways to customize and personalize the offerings. In a B2B setting, this involves understanding the customers’ business
Page 16 of 51
operations, business models and then providing customized solutions: Like releasing products in time for Christmas or having goods packed in a truck in a manner it is efficient for customer etc. Level-6: Co-Creation Need This denotes the highest level of customer relationship. At this level, customer is very comfortable dealing with the vendor; the relationship is characterized by a sense of collaboration. The customer feels a need for a unique product/service and is willing to work with the vendor to develop the product/service. Often the customer to the surprise of the vendor initiates the idea of co-creation. Co-creation relationships are personal and rational. At this level of relationship, the customer loyalty & trust is very high. Customers are willing to invest for joint development of products/service. Customer feel closely bonded to the vendor - to the point that the customer seeks a joint destiny with the vendor. I.e., some aspects of customer’s interests merge with that of the vendor’s interests. Co-Creation denotes the highest level of customer relationships. Broadening interactions, which involve co-creation of products/services, can strengthen this relationship. Relationship Marketing Relationship Marketing has an aim of building mutually satisfying long term relationship with its clients in order to earn and retain their business. Marketer accomplishes this by promising and delivering high quality product and services at fair price to the other parties over time. Relationship marketing builds long& strong economical, technical and social ties among the parties. The ultimate outcome of relationship marketing is the building of unique company assets called the marketing network. A Marketing network consists of the company and its supporting stakeholders (Clients, Employees, ad agencies and others) with whom it has built mutually profitable business relationship. The operating principal is to build an effective network of relationship with key stakeholders. • Marketing Channel: To reach target market, marketer uses three kinds of marketing Channel. 1. Communication Channel: It delivers & receives messages from target buyers and includes newspaper, television, telephone etc. 2. Distribution Channel: To display sell or deliver the physical product or service(s) to the buyer or user. This includes distributors and agents.
Page 17 of 51
3. Service Channel: To carry out transaction with potential buyers. Marketer clearly faces a design problem in choosing the best mix of communication, distribution and service channel for their offerings • Supply Chain: The marketing channel connect the marketer to the target buyers, the supply chain describe a longer channel stretching. The supply chain represents a value delivery system. Each company captures only a certain percentage of total value generated by the supply chain. When a company acquires competitor or moves upstream of downstream, its aim is to capture a high percentage of supply chain value. Competitor: It includes all the actual and potential rival offering and substitutes that a buyer might consider. We can broaden the picture further by distinguishing four levels of competition based on the degree of product sustainability: 1. Brand Competition: A company sees its competition as other companies offering similar products and service to the same customer at similar price. 2. Industry Competition: A company sees its competition as all company making the same products or class of products 3. From Competition: A company sees its competitors as all companies manufacturing products that supply the same service. 4. Generic Competition: A company sees its competitors as all companies that compete for the same consumer. Marketing Environment: Competitor represents only one force in the environment in which the marketer operates. The marketing environment consists of the task environment and the broad environment. 1. Task environment: It includes immediate actors involved in producing, distribution and promoting the offering. The main actors are the company, suppliers, distributing, dealers and the target customer. 2. Broad environment: It consists of demographic environment, economical environment, natural environment, technological environment, political environment, and socio- cultural environment. These environments contain forces that can have a major impact in task environment. Principles of Relationship Marketing: The principal of personal selling and negotiation thus described are transaction oriented because their purpose is to close a specific sale, but in many cases the company is not seeking an immediate sale, but rather to build a long term suppliers- customer relationship. The company wants to demonstrate that it has the capabilities to serve the client needs in a superior way. Page 18 of 51
Today’s customers are large and often global. They prefer suppliers who can sell and deliver a coordinated set of product and services to many locations. When a relationship management program is promptly implemented, the organization began to focus as much on managing its customer as on managing its products. At the same time companies should realize that while there is a strong and warranted move toward relationship marketing, it is not effective in all situations. Ultimately companies must judge which segment and which specific customers will respond profitably to relationship management.
Page 19 of 51
NEED OF STUDY Today, for any organization or firm to survive in this competitive world depends on its ability to be dynamic and be different from the competition to be unique in the industry. Customer Satisfaction helps every organization to keep the existing customer and to build new customer .The purpose of this study is to study whether Customer relationship management policies followed by Religare cater to the needs of the clients or not. Whether the clients are happy with the services provided by Religare. REVIEW OF LITERATURE Bergenfield [2010] Businesses are in a constant race to increase profits, keep current customers and gain or poach new ones, competing for customers on a globalised market like never before. One of the many sets of tools aimed at aiding the interaction between supplier and customer is customer relationship management (CRM). Morgan and Hunt (1994) defined Relationship marketing as the marketing activities directed toward establishing, developing, and maintaining successful relational exchanges. The separation of the producers from the users was a natural outcome of the industrial era. On the one hand, mass production enforced producers to sell their product & services through middlemen, and on the other, industrial organizations, due to specialization of corporate functions, created specialist purchasing departments and buyer professionals, thus separating the users from the producers. Wilson (1995) summarized different relationship variables that affects the relationship of firm with different stakeholders, those variables are Commitment, Trust, Cooperation, Mutual Goals, Interdependence and Power, Performance Satisfaction, Structural Bonds, Comparison Level of Alternatives, Adaptation, Non-retrievable Investments, Shared Technology, and Social Bonds. Gronroos (1990) states “Marketing is to establish, maintain, and enhance relationships with customers and other partners, at a profit, so that the objectives of the parties involved are met. This is achieved by a mutual exchange and fulfilment of promises” Gefen (2002) in his article reviewed that comparison of CRM to ERP systems and arguing that customer relationship activities are not as standardized as other business activities, such as accounting or procurement. Hence CRM implementation calls for much more complex and flexible approach Kotler and Armstrong (2004) define CRM as “the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction”. CRM is a managerial term which focuses on efforts to attracting, maintaining, and enhancing customer relationships.
Page 20 of 51
Dick Lee (2000), CRM is perceived as “chain reaction” which is source by new strategic proposal of communication with customer when high level of information technologies development and stable customers need to get enhanced quality of service are achieved. Oligvy and One (2001) purposed the model which states that CRM is to analysis, evaluation ofa current situation preparation of a project, technologies, employees and an enterprise, processes, management of customers, effectiveness measurement, and experience of customers. Chaudhuri and Shainesh (2001)-A CRM programmer requires a clear understanding and commitment to the company’s customers, vigilant adherence to detailed goals, commitment from both executives and line workers, and a constant awareness of the customers view point. Customer relationship management is about more than simply managing customers and monitoring their behaviour or attitude. In a study assessing the impact of relational information and processes, Jayachandran, Sharma, Kaufman, and Raman (2005) found that firms that have higher CRM performance also had the ability to capture access and use customer information. Another study of on-line retailers with a brick and mortar presence, Srinivasan and Moorman (2005), linked the impact of firm strategic commitment to the performance of CRM system investments. More specifically, they conclude that firm commitments to either an on-line or bricks and mortar presence affect the performance of the CRM initiative, emphasizing the importance of context when evaluating the impact of CRM on firm performance. Winer (2001) provides a framework for one to begin conceptualizing a CRM program. This framework although useful, is quite general and is only a starting point in the quest to identify relevant activities/behaviours /outcomes for a CRM program. Taking Winer’s framework into consideration, coupled with a review of the literature, six areas are identified which comprise a CRM program. These areas are: 1) Objectives of the CRM program; 2) Types of customer data collected/available; 3) Uses of customer data for managerial decision-making; 4) The firm’s approach to market; 5) Tactics used to develop and maintain relationships with customers; and 6)the information technology infrastructure currently in use. Galbeth (1999) maintained the importance of providing effective leadership. CRM normally involves business process change and the introduction of new information technology, consequently effective leadership is important because leaders monitor the external environment Page 21 of 51
of an organization they are often the best people to set the vision or strategic direction for CRM projects. In addition, leaders have the power to influence personnel to buy in (Bull, 2003). CRM Com environments are complex and require organizational change and a new way of thinking about customers and business in general. Stadler (2001) said that it is important to look at the current status of the company. In this stage assessments have to be made and sometimes external assessors may be hired. A readiness assessment establishes how ready the organization is for a CRM project and a maturity assessment is necessary to show how mature the organizations current practice is .These assessments help to identify where the organization is in terms of customer-centricity and creates a snap shot of the organization that helps as a starting point for the CRM project. Sharp (1997) concluded it is important Knowing the customer. Customer knowledge is an important asset for all businesses. The first step towards a CRM project is to know who the customers are, what they need, how they want the product, how they want the service, what their expectations are, how they want to be dealt with and which channels of communication they prefer Karl (2000) maintained different organizations use different customer knowledge strategies to best match culture, priorities, and capabilities. They try to reap the best business value from their existing knowledge-based assets or try to create new knowledge-related assets where they are required .With the customer in mind and the customer providing the central emphasis of an organization, managers can start to evolve all the processes needed around the customer Dobbins and Pettman (1997) state CRM as one of the nine basic skills for business success: Remember that we are all in business to provide benefits for customers - at a profit. We are not in business to make products and provide services. The world is full of products and services in which customers see no benefit and for which they are neither willing nor able to pay. Benefits customers seek include an increase in self-esteem, new knowledge, companionship, additional, wealth, success, power, influence, self-expression, better health, better relationships, social status, popularity, self-actualization, recognition, admiration, prestige, security, safety, selfpreservation, a decent meal, a good laugh and excitement. Remember that customers are lazy, ignorant, selfish, greedy, impatient, disloyal, ruthless and vain. Use your creativity to generate benefits which are consistent with customer characteristics. Imaduer Rahman (2007) concluded many organizations or companies we have today in these CRM plays an important role either in software solution companies or any organization. It is like back bone to that particular organization previously customer relationship was limited to person to person marketing but in this knowledge era market is not limited to certain place it is widely spread like globalization so it is introduced as online marketing. McKenna(2008) offered a more strategic view by putting the customer first and shifting the role of marketing from manipulating the customer (telling & selling) to genuine customer involvement (communicating & sharing the knowledge). Page 22 of 51
Berry (1999), in a broader term stressed that attracting new customers should be viewed only as intermediate step in the marketing process. Developing closer relationships with this customer sand turning them into loyal is an equally important aspect of marketing. Thus, he defined relationship marketing as attracting, maintaining, and, enhancing customer relationships. Steve Jobs, chairman and co-founder of Apple Inc. once said “A lot of companies have chosen to downsize, and may be that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.” In fact, customers hold the pillar of a business and regard as the most valuable resource in the market. In today’s highly competitive business world, the biggest challenge faced by the management is to create and maintain relationships with customers. It is a customercentric business environment and lack of right attitude showed by management may adversely affect the business. To maintain healthy relationships with customers in order to maximize profit, the management has decided to adopt Customer Relationship Management, a business strategy to create a beneficial environment among customers.
Page 23 of 51
Page 24 of 51
LIMITATIONS
Study The study based on survey through pre-designed questionnaires suffers from the basic limitations of the possibility of difference between what is recorded and what is the truth, no matter how carefully the questionnaire has been designed and field investigation has been conducted.
Close responses. As the project is also based on secondary data, possibility of unauthorized information cannot be avoided. Study is done only for NCR investors. The investors may be biased. Time has played a biggest constraint that the research could not be carried out comprehensively as the duration of the study was only 6 weeks The sample size was limited.
All the investors who invest in equities through Religare Securities in NCR Region. Sampling Unit Every single respondent who has filled the questionnaire. Sample size sampling size refers to total number of respondents targeted for collecting the data for the research. The sample size for survey conducted is 50 respondents. Sampling technique the selection of respondents was done on the basis of Convenience Sampling technique.
Page 25 of 51
Page 26 of 51
DATA ANALYSIS & INTERPRETATION
Table 7.1 Profession In which respondent is engaged S. No
Profession
Respondents
Percentage
1
Business
10
20
2
Services
20
40
3
Entrepreneur
5
10
4
Others
15
30
5
Total
50
Percentage 45 40 35 30 25 20 15 10 5 0
40 30 20
Percentage 10
Analysis: From the 50 respondents approached, 20 belonged to services profession who invested in share market through Religare securities. People who were in other professions were second contributing 30%. 10 respondents belonged to business class and 5 were entrepreneurs.
Page 27 of 51
Interpretation: From the analysis done above it can easily be interpreted that more people from services sector invested in share market. Reason being that they think it is good investment as it can bring profits and add to their income. 48 Table 7.2 Time period of investing s.no 1 2 3 4
Time(years) <1 1 to 2 2 to 4 4 to 5 total
Respondents 7 13 22 8 50
Percentage 14 26 44 16
50 44
45 40 35 30
26
25 20 15
16
14
10 5 0 <1
1 to 2
2 to 4
4 to 4
Analysis: From the graph it can be easily concluded that 22 respondents have been Religare clients from 2 to 5 years. This is a maximum % among respondents. Next in line are respondents who have been Religare clients since 1 to 2 years. They are 13 in number. 8 respondents have been investing in Religare for 4-5 years and 7 have been Religare clients since less than one year. Interpretation: The data clearly depicts that most people have been Religare clients from 2 to 4years. This is more them enough time to judge the company. This means that the clients are with the policies of this particular firm and services provide by them. This is the reason why they have been with the company for a considerable time.
Page 28 of 51
Table 7.3 Reasons for Investing s.no 1
Reasons Reputation of company Consumer friendly Advertisements Good Services Any other
2 3 4 5
Respondents 10
Percentage 20
17 7 12 4
34 14 24 8
percentage
8
20
reputation of company consumer friendly advertisement
24
good services 14
34
any other
Analysis: From the data it is found that as many as 17 people have been Religare clients due to good consumer policies offered by them. As many as 12 respondents think that their services are the reason why they are sticking with the firm. 10 are investing through Religare due to its Reputation in the market and 7 due to advertisements. 4 respondents cited other reasons. Interpretation: It is clearly understood from the data that most of respondents are Religare clients due to the Consumer Friendly policies it offers like Negotiable Brokerage, providing updated information, accurate solutions to their problems…etc…
Table 7.4 Awareness of Customer relationship marketing policies Page 29 of 51
S. No 1 2
Options yes No
Respondents 35 15
Percentage 70 30
percentage
yes
30
no
70
Analysis: From the pie chart depicted above it is clearly understood that out of 50 respondents35 are aware of the Customer relationship marketing Practices followed by Religare and rest 15are not aware Interpretation: This is pretty much straight forward question as majority of respondents are aware of the CRM practices followed. The reason may be that they are aware of the term themselves then the rest. 53
Table 7.5 Customer Relationship marketing Policies Page 30 of 51
S. No. 1 2 3
Practices Optimum solutions Updated Information Long term concessions Door Step services Regular in touch Any other Total
4 5 6
Respondents 10 20 1
Percentage 20 40 2
3 11 5 50
6 22 10
percentage optimum solution 10
20
untaped information long term concession door drop services
22
regular in touch 6
any other 2
40
Analysis: By studying the chart above we can conclude that out of 50 respondents 15 thought the Customer Relationship Marketing Practice followed by the company is providing updated information of the new launched policies. Next in line are 7 respondents according to whom providing optimum solutions to the problems is the major CRM practice. 8 respondents think that being regular in touch with their RM’s is the practice followed while remaining were divided among door step services, any other and long term concessions in the ratio of Interpretation: Most of the respondents responded that getting updated information is the best CRM policy adopted by the company. Policy here is a broader term which includes giving them details about share market, new policies, and new SEBI rules of market.
Table 7.6 Choose any 3 Customer relationship Practices Page 31 of 51
S. No 1 2 3
Practices Optimum solutions Updated Information Long term concessions Door Step services Regular in touch Any other Total
4 5 6 7
Respondents 26 32 2
Percentage 13 17 1
10 24 2 50
5 12 2 50
percentage
24 4 10 2
26 34
optimum solution
untaped information
long term concession
door drop services
regular in touch
any other
Analysis: This question is for all the respondents that what according to them an important policy a company should follow is. Here 17 respondent think that giving up to date information is the key while 13 says providing optimum solutions is important. Keeping in touch with your RM manager after buying/investing is important for 12 respondents.5 people opted for door step services and 2 gave other reasons while 1 was for long term concessions. Interpretation: Most of the people also think updated information is an important practice because as they have invested their money is stocks they need to be provided with latest information.
Table 7.7 Reason for Religare to follow these practices S. No. 1 2 3
Practices Building Brand image Competitors Retention of customers
Respondents 10
Percentage 20
3 25
6 50 Page 32 of 51
4
Increase in sales and profits Word of mouth Any other Total
5 6
4
8
6 2 50
12 4
percentage
8
12 4 50
20
6
bulidind brand image
competitors
retension of customers
increase in sale & profit
word of mouth
any other
Analysis: This bar chart gives us an idea about why Religare should follow above mentioned practices. 25 of the respondents were in favour of retention of customers. Second were those 10 respondents according to whom building brand image should be the reason. 6 thought that by following above practices Religare can gain from word of mouth. Rest of the respondents gave reasons like increase in sales and profits, competitors and others in ratio of 4:3:2. Interpretation: More people stated that retention of customers should be the main reason for accompany because in such competitive world if a customer is not satisfied from a particular firm he can easily move onto other company. So it becomes necessary for a company to provide good services. Staff Efficiency
Page 33 of 51
respondents 25
23
20 15
15 10
7
respondents
5
5
3
0 excellent very good
good
average
poor
Analysis: The chart above gives us indication about the satisfaction level of respondents for staff efficiency. Out of these 22 are happy with the efficiency of the staff. Rest of respondents vary from 15 to 2. Interpretation: The reason which can be given is that these respondents may have better relations with their dealers and updates are provided to them instantly. 16 14 12 Respondents 10 8Table 6 (b) Satisfaction Level for Redressing of complaints 4.8 4 2 0 60 Excellent Very good, Average Poor Satisfaction Level Satisfaction Level
respondents 14
14
14 12
10
10 8
respondents
7 5
6 4 2 0 excellentvery good good
average
poor
Page 34 of 51
Analysis: The above bar chart shows the number of respondents corresponding to redressing of complaints. Here striking feature is that both the very good and average experiences match eachother.ie 14 each. Interpretation: This is a tricky one as this satisfaction level varies considerably. Some complaints have been addressed quickly and some not. It also depends on the nature of complaints. 18 16 14 12 Respondents 10Table 8 (c) Satisfaction Level for Timely Responses 4.8 6 4 2 0 61 Excellent Very good, Good Average Poor Satisfaction Level
Table 7.8 Influences of CRM practices in further investing
S. No. 1 2
options Yes No Total
Respondents 30 20 50
Percentage 60 40
Page 35 of 51
percentage
40
yes 60
no
Analysis: This pie chart shows the number of respondents who think whether these Customer relationship policies are influential in further investing or not. After conducting the survey 30were in favour and 20 were not. Interpretation: Most people responded in favour because according to them if policies and services are good then they will be satisfied with the company and invest further. Table 4.10 Recommend to others
Total 7.9 recommend to others
S. No. 1 2
options Yes No Total
Respondents 31 19 50
Percentage 62 38
Page 36 of 51
percentage
yes
38
no 62
Analysis: The above pie chart gives us information about number of people who will recommend Religare securities to others (Friends, relatives etc.).31 responded that they would suggest Religare Securities and 19 responded that they will not recommend. Interpretation: The people who will recommend are those who are satisfied with Religare services or in recent time have earned profits.
Page 37 of 51
Table 7.10 Experience in Stock market S. No. 1 2 3 4 5
Experiences Excellent Very Good Good Average Poor
Respondents 7 10 10 18 5
Percentage 14 20 20 36 10
percentage 10
36
20
very good good average
20
poor
Analysis: The above graph gives us information about experience of respondents is stock market. The experience of 18 respondents was average while 10 respondents each were in very good and good category. The experience of 7 respondents was excellent and of 5 was poor. Interpretation: The best explanation for this is the share market is very volatile, you are not guaranteed profits every time you invest. That’s the reason why only 7 respondents have excellent results and some among them are long term investors. Mostly experiences have been average as some people have made profits and losses on the same day also (intraday trading).
Page 38 of 51
Page 39 of 51
FINDINGS AND ANALYSIS
• Better rate &Commission. • Flexibility in service providing. • Prompt and Clean Deal. • Customized service. • Immediate feedback / market information on time. • Timely payment of cheque. • Maintenance of Personnel Relationship with clients. • Transparency in operation of business activity. • Reputation/ Goodwill of the firm. • Credibility of the broker. • Research backup. • Past performance/ Experience. • Their presence in the market/ General response of customer in the market.
Page 40 of 51
Page 41 of 51
RECOMMENDATIONS
The Recommendation, which is to be suggested, is as follow: • Religare securities should enhance the customer care department where queries can be timely solved. • Religare securities should provide more security to the existing and prospective clients. • There should be more banners posters pamphlets distribution in the market to increase the awareness level among the people. • It should provide regular and update market information. • There should be target incentive for executive which will boost up their morale will give more and more business to Religare. • Special attention need to be given to the delivery of monthly & fortnightly report to the clients. • Timely release of Brokerage & Fast redressal of clients grievance is a major plus point, if Religare is looking to develop long term relationship with its clients.
Page 42 of 51
Page 43 of 51
CONCLUSION
In spite of the bleak and grim outlook the future of capital market is growing at a very high pace. Taking these things into consideration there are lots of opportunity for the Broker House which already exist and which are due to enter in the Indian market. These are little awareness about Equity and Mutual funds in India people have accepted it as one of the major investment avenue. As people have entered in this particular investment avenue they have lost their money because of movement in the market, which is below the par value and this, has shaken the faith of investor in this particular avenue. Another reason for low investment in this sector is that most of the companies are not performing well and also due to the scams that are taking place frequently Once people know about the benefit offered by it, Capital market will become one of the sought after investment avenue. The only thing which is needed to focus on is that they should have a strong marketing strategy so that prompt service and availability of forms is made available to the investors at a short notice provided that it keeps into mind the traditional base for marketing in India, which is a price sensitive. We can say that Religare has a great future ahead. Religare has emerged a very strong player in the field of distribution of financial product within a short period of one year in Northern India and is giving stiff competition to the entire player in the Delhi & other parts. If the progress of Religare goes in the same way then I can say that Religare will be going to emerge as a major player in the Capital market. They have much more potential to expand their business and market in India.
Page 44 of 51
Page 45 of 51
BIBLIOGRAPHY Books Capital Market module (NCFM) 71 Capital Market by Sanjay Aggarwal http://www.indianjournals.com/ij/importance of Crm or.aspx? target=ijor:glogift2k8&volume=1&issue=1&article=chap048 Web links • http://www.religare.in/ • http://www.religarecommodities.com/product_rally.asp • http://money.rediff.com/companies/religare-enterprises-ltd/14010630/ratio • http://indiaearnings.moneycontrol.com/sub_india/financialreports.php? sc_did=RE09&type=profit • http://indiaearnings.moneycontrol.com/sub_india/financialreports.php? sc_did=RE09&type=balance • http://www.moneycontrol.com/company-facts/religareenterprises/history/RE09 • http://www.theinvestor.tv/money/thebrokerageindustry.htm • http://www.economywatch.com/market/share-market/share-market-trading.html • http://bseindia.com/deri/Deri/Introduction.htm?L=2&id=hd1&Lid=0 • http://bseindia.com/deri/Deri/Eligibility.htm?L=2&id=hd1&Lid=1# http:// http://crmweblog.crmmastery.com/ http://www.thetawer.com/wiki/images/4/43/B._Customer_Relationship_Management _A_Framework.pdf
Page 46 of 51
Page 47 of 51
QUESTIONNAIRE
Dear Respondent, I, Arjun Singh, am a student of MBA in PCTE, Baddowal. I have been assigned project on the topic “Customer Relationship Management in Religare Securities with special reference to equities”. As part of my project I am collecting data through this questionnaire for the Project. The information provided by you will remain confidential and be used for academic purposes only. Q1. In which professions are you engaged in? A. Business B. Services C. Entrepreneur D. Others Q2. For how many years have you been trading through Religare? A. <1 B. 1-2 C. 2-4 D. 4-5 Q3. What is the reason behind investing through Religare Securities? A. Reputation of the company B. Consumer friendly policies C. Advertisements D. Good Services E. Any other ______________________________________________________________________ __________________________________________________________ Q4. Are you aware of the Customer Relationship Marketing policies followed by the company? A. Yes B. No Q5. What are the Customer Relationship Marketing practices followed by the company? A. Providing optimum solutions to customer’s problems B. Giving Updated information of new policies Page 48 of 51
C. Long term concessions D. Door step services E. Regular in touch after selling F.Anyother _______________________________________________________________________ ___________________________________________________________ Q6. Choose any 3 from the mentioned practices which you think are important from a company point of view? A. Providing optimum solutions to customer’s problems B. Giving Updated information of new policies C. Long term concessions D. Door step services E. Regular in touch after selling F.Anyother _______________________________________________________________________ Q7. Choose any reasons why Religare should follow the above mentioned practice A. Building brand image B. Competitors C. Retention of customers D. Increase in sales and profits E. Positive word of mouth F.Anyother ________________________________________________________________________ Q8. Please tick the desired answer. Services Excellent Staff Efficiency Redressing of complaint
Very Good
Good
Average
Poor
Page 49 of 51
Timely Response Updated information Clarity of concept(Initia l information) Q9. Are these Customer Relationship marketing policies followed influential in further investing? A. Yes B. No Q10. Will you recommend investing in stock market through Religare to others? A. Yes B. No Q11. What has been your experience in stock market? A. Excellent B. Very good C. Good D. Average E. Poor
Personal details Name: Age: Gender: Annual Income: Thank you for cooperation and valuable time. Page 50 of 51
Page 51 of 51
