A STUDY OF EFFECTIVENESS ON CUSTOMER RELATIOSHIP MANAGEMENT (CRM) PRACTICES FOR SHOPPING MALL WITH REFERENCE TO TIRUCHIRAPALLI.

Size: px
Start display at page:

Download "A STUDY OF EFFECTIVENESS ON CUSTOMER RELATIOSHIP MANAGEMENT (CRM) PRACTICES FOR SHOPPING MALL WITH REFERENCE TO TIRUCHIRAPALLI."

Transcription

1 A STUDY OF EFFECTIVENESS ON CUSTOMER RELATIOSHIP MANAGEMENT (CRM) PRACTICES FOR SHOPPING MALL WITH REFERENCE TO TIRUCHIRAPALLI PROF. K. R. MAHALAXMI 1 M JAGADEESH 2 1&2 Department of Management Studies, Anna University (Bit Campus), Trichy, India. ABSTRACT In India shopping malls are growing much more and shopping mall offers customers the possibility to be anything or anybody they want to be, it gives them opportunity to be free and independent even if it s just for a passing moment. CRM is potentially a useful concept in the marketing and customer services areas of a retail sector. Managing customer relationship effectively and effectively boots customer satisfaction and retention rates. CRM involves shopping malls enabled business processes that identify, develop, integrate and focus a business competencies on forging valuable long-term relationships that deliver superior value to its customers. This study is undertaken to identify the CRM practices on the customer satisfaction and retention in shopping malls in Trichy city Tamilnadu. Keywords: Customer Awareness; Relationship building; Customer Loyalty; Customer satisfaction INTRODCUTION Customer Relationship Management (CRM) refers to the methodologies and tools that help business manage customer relationships in an organized way. Customer wants cost-effective products or services that deliver required benefits to them. Any single product or service can deliver different benefits to different customers. So it is important to look at things from the customers perspective even at this level. More significantly however, customers want to have their needs satisfied. Customers needs are distinctly different to and far broader than a product or service. Customers are the usual source of income for the organizations and are also an exceptional source of information which is vital to enable a business to succeed. By taking the above said factors into consideration CRM practise on a retail store is being studied through this paper. OBJECTIVE OF THE STUDY 1. To understand and identify the Customer Relationship Management Practices followed by the shopping mall. 2. To analyse the importance of CRM from the retailers & customers point of view. 3. To provide the effectiveness of loyalty program adopted by retail stores. SCOPE OF THE STUDY In a market driven economy, the consumer has occupied the central position. A large number of activities are directed towards attracting the customers. All industries are payingspecial attention towards customer relationship and have changed their mode of operation of dealing with their customers. Customer Relationship Management (CRM) gained recognition in the mid-1990 s, primarily driven by its perception as Information Technology (IT). However not enough attention has been given to the fundamental drivers of CRM success: Strategy, metrics and the organisation. Hence this research study titled A Study of Customer Relationship Management (CRM) Practices of 78 icmrrjournal@gmail.com

2 Selected Service Organisations in Trichy, which strives to explain how successful CRM works and why it is important to give customer utmost importance. It establishes a relationship and explains how customer loyalty affects profitability. NEED FOR THE STUDY Customer Relationship Management (CRM) has become a globally recognized business practice and yet it is still loosely defined and rarely well defined. The present shows many practitioners in the CRM marketplace who understand the keyconcepts of CRM. However the feedback from the clients and what we see in the marketplacepaints a slightly different picture. In terms of what the future holds can be summarised as follows: 1. Customer will play a significant role in managing the relationship 2. Service model will continue to change 3. The Web will create globalization 4. Technology will consolidate 5. Do we have what it needs to get there? 6. Can end to end customer processes be developed? 7. Is the best use of customer knowledge being made? 8. Need to be proactive instead of reactive 9. Recognise customer individuality This study intends to throw more light on the issues mentioned in the previous paragraphs and will provide answers to most of the questions raised. REVIEW OF LITERATURE (SHARMA & DHINGRA, September 2012)The author has discussed that CRM has generated value for many companies in the past several years. However, the value that s been delivered is not up to the mark in comparison to what is possible. As economic uncertainty continues and customers become more demanding, organizations simply must find ways to improve the chances that their new CRM initiatives succeed. The implementation of a CRM solution is not sufficient to create a true learning organization. Rather, organizations need to think across organizational functions to truly benefit from CRM. This requires thinking across departmental boundaries in order to concentrate on adding value to the customer. There is the need for marketing to act as an integrating function in coordinating the organization s interaction with the customer. If properly implemented, the organization s CRM system is uniquely well positioned as a knowledge management tool, able to serve as the value creating interface between the firm s functional units (including those linked by an ERP) and its customers (Azizul Hassan, March 2013)The author has discussed that The identified key influential customer segment for customer relationship management is the Loyalty card holders of both Tesco and Sainsbury s and these consumers do not frequently shop at other retailers. The respondents were loyal as they have been benefitting from the CRM policies employed by these retailers. However, important finding of the study explores that the customer loyalty cannot be granted as static and non flexible. Where, a considerable number of the customers also visit other retailers with an intention to either cross check the prices or the availability of products and services. This study suggests that the Loyalty card holders of both Tesco and Sainsbury s do not limit their shopping only within these two retailers. Loyalty cannot be viewed as blindness, where, numerous alternatives have become available for customers. The recommended policy of CRM is to emphasize on products and services 79 icmrrjournal@gmail.com

3 development through adopting diversified strategies than only remaining confined to maintain relationships with customers. (Samma, March 2008) The author has discussed that Retail stores should keep the purchase recordsof the customers along with the personal information of the customers. It would provide them a way analyze the buying behavior of their customers. The management of the retail store should give a personal touch to the customers. It will encourage the customers to make frequent visit to the retail store. It also helps in building personal relationship with the customers leading to the higher level of the customer loyalty. The management of the retail store should provide special training to the sales staff of the organization to keep a healthy and friendly relationship with the customers. Timely feedback from the customers should betaken by the retail store it would make the customers realize that they are important for the growth of the organization (Dheeraj Verma, April 2013 ) The author has discussed that Customer Relationship Management is an important aspect of retail outlets to know about customer interest, need and buying habits, like, dislike and refocus its strategy to serve him better. In this case study practices in selected organized retail outlets in Indore city are identified customer expectation fulfillment retailers & retail outlets can hold the customer relationship improve customer satisfaction. Retailers focus keeps customers record information properly maintain with help of feedback forms, Entry forms, transaction history and purchasing record accurately maintained. Analyzedretailers ways of build good relationship with customer provided coupons, membership cards, festival offers, after service and maintained customer loyalty with help of Guarantee & response cards, accepting credit /debit cards, Accepting mail orders, loyalty programs. finding results organized retailers believe in touch with customer sending card. Identified CRM retail software using organized retail outlets, finding retailer methods used to bring back customers prefers. Then better retailer service, the more customers you will win, and retain. RESEARCH METHODOLGY Descriptive research includes surveys and facts findings enquiries of different kinds. The main purpose of descriptive research is the description of the state of affairs as it exists at present. The term ex-post facto research is often used for descriptive research studies. In this research, the researcher has no control over the variables. They can only report what has happened or what is happening. Such type of research also includes attempts by researchers to discover even when they don t have control over the variables. Initially primary data were collected through structured questionnaire. A number of open ended and close ended questions along with a Likert Scale have been incorporated into the questionnaire. A survey was conducted in a shopping mall, and the sample of respondents included consumers in Trichy. A convenience sampling method of non-probability sampling has been adopted in this research study and the samples have been drawn from 180 respondents. Personal interview as the contact method has been incorporated in this study. A Likert Scale has been incorporated in this study, where 1 stands for strongly agree and 5 stands for strongly disagree. Chi-Square, Correlation, Regression with the help of SPSS version 23.0 have been used in this study for analysing the primary data, which is collected with the help of the self-administered questionnaire. 80 icmrrjournal@gmail.com

4 ANALYSIS AND INTERPRETATION CHI SQUARE TEST H0: There is no significant relationship between gender and awareness of the customer H1: There is a significant relationship between gender and awareness of the customer Gender * Awareness of the customer Crosstabulation Awareness Strongly agree Agree Neutral Disagree Total Gender Male Count Expected Count Female Count Expected Count Total Count Expected Count Chi-Square Tests Value df Asymptotic Significance (2-sided) Pearson Chi-Square a Likelihood Ratio Linear-by-Linear Association N of Valid Cases 180 a. 4 cells (50.0%) have expected count less than 5. The minimum expected count is Interpretation: From the above table the Chi-Square value significance level is equal to.005. Calculated value > Table value Hence Null hypothesis (H0) is rejected. In this result shows that there is a significant relationship between gender andawareness of the customer, thus H1 is accepted. REGRESSION H0: There is no relationship between awareness of the customer and customer satisfaction. H1: There is a relationship between awareness of the customer and customer satisfaction. Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate a a. Predictors: (Constant), SP 81 icmrrjournal@gmail.com

5 ANOVA a Model Sum of Squares df Mean Square F Sig. 1 Regression b Residual Total a. Dependent Variable: Awareness b. Predictors: (Constant), cs Model Interpretation: Thus 0.05 <.391, Calculated value > Table value Hence Null hypothesis (H0) is rejected. In this result shows that there is a significant relationship between awareness of the customer and customer satisfaction, thus H1 is accepted. CORRELATION Unstandardized Coefficients Coefficients a Standardized Coefficients B Std. Error Beta H 0 : ρ = 0 ("the population correlation coefficient is 0; there is no association") H 1 : ρ 0 ("the population correlation coefficient is not 0; a nonzero correlation could exist") T Sig. 95.0% Confidence Interval for B Lower Bound Upper Bound 1 (Constant) Cs a. Dependent Variable: Awareness of the customer Correlations Relationship Loyalty Relationship Pearson Correlation ** Sig. (2-tailed).000 N Loyalty Pearson Correlation.293 ** 1 Sig. (2-tailed).000 N **. Correlation is significant at the 0.01 level (2-tailed). 82 icmrrjournal@gmail.com

6 Interpretation: Since ρ> 0,H 1 accepted. Since ρ is greater than 0 thus H 0 is rejected and H 1 is accepted. Positive correlation could exist between Relationship building and Customerloyalty. FINDINGS It is clear from the study that majority 53.3% of the respondents are male. Majority 51% of the respondents are 37% are professionals. Majority of the respondent sage is between 25 and 35 years. Majority 59% of the respondents are married. Majority 43% of the respondent s monthly income is 20K to 40K. Majority 38.3% of the respondents are of family size 3-5. Majority 45% of the respondents agrees that Employees and staff are friendly to customer. Majority 42% of the respondents are aware of CRM services 45% customer are satisfied on their service. CONCLUSION This paper concentrates to the impact of customer relationship management on customer fulfilment and customer trustcustomer Relationship Management is an important aspect of retail outlets to know about customer interest, need and buying habits, like, dislike and refocus its strategy to serve him better. The CRM practices is important variables in the success of the shopping mall.. The study has identified the variables influencing customer satisfaction. It can be understood consumer promotional tool, customer services at malls and high variance in explaining towards services offered by mall retailers at shopping mall at Trichy. The retailers should see in implementing the Activities of shopping mall employees and loyalty programs variables for enhanced satisfying to go for shopping to build a longterm relationship with services provided by mall retailer by customers. Shopping malls retailers should take in to consideration and understanding the customers touch points related to services offered by shopping malls. Even through the mall retailer were making adequate efforts there are some factors where the salient or unsatisfied services levels are make clear and improve some measures those levels to bridge the gap to built long term relationship enhances customers satisfaction and offers a pleasant shopping experiences when the customers are visiting shopping malls. Today customers is God services offered by mall retailers play a major role in meeting customers expectations and perception make comfortable better shopping in malls REFERENCES 1. Azizul Hassan, M. P. (March 2013). A Comparative Case Study Investigating the Adoption ofcustomer Relationship Management (CRM) The Case of Tesco and Sainsbury s. International Journal of Managing Value and Supply Chains (IJMVSC) Vol. 4, No. 1,, Dheeraj Verma, D. S. (April 2013 ). Customer Relationship Management Practices In Selected Organized Retail Outlets: A Case Study of Indore City. International Journal of Science and Research (IJSR),Volume 2 Issue 4,, Samma, D. M. (March 2008). A Study on Customer Relationship Management Practices in Selected Organised Retail Stores in Udaipur City. Pacific Business Review - A Quarterly Refereed Journal, SHARMA, M. S., & DHINGRA, D. A. (September 2012). CUSTOMER RELATIONSHIP MANAGEMENT SYSTEMS A STUDY OF SELECT ORGANIZED RETAIL COMPANIES OF NCR REGION. International Journal of Marketing, Financial Services & Management Research, Vol.1 Issue 9,, icmrrjournal@gmail.com