Suzuki Customer Relationship Management

2540 words (10 pages) Essay in Marketing

29/06/17 Marketing Reference this

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Operational CRM at Maruti includes customer contact (sales, marketing and service). Tasks resulting from these processes are forwarded to employees responsible for them, as well as the information necessary for carrying out the tasks and interfaces to back-end applications are being provided and activities with customers are being documented for further reference. Operational CRM provides the following benefits:

  • Delivers personalized and efficient marketing, sales, and service through multi-channel collaboration
  • Enables a 360-degree view of the customer while you are interacting with them

Sales people and service engineers can access complete history of all customer interaction with the company, regardless of the touch point . The operational part of CRM typically involves three general areas of business at Maruti:

Sales force automation (SFA)

SFA automates the critical sales and sales force management functions of Maruti, i.e., lead/account management, contact management, quote management, forecasting, sales administration, keeping track of customer preferences, buying habits, and demographics, as well as performance management. SFA tools are designed to improve field sales productivity. Key infrastructure requirements of SFA are mobile synchronization and integrated product configuration.

Customer service and support (CSS)

CSS at Maruti automates the service requests, complaints, product returns, and information requests. The internal help desk and inbound call-center support for customer inquiries have been evolved into the “customer interaction center” (CIC), using multiple channels (Web, phone/fax, face-to-face, kiosk, etc). Key infrastructure requirements of CSS include computer telephony integration (CTI) which provides high volume processing capability, and reliability.

Enterprise marketing automation (EMA)

EMA of the company provides information about the business environment, including competitors of Maruti, industry trends, and macro environmental variables. It is the execution side of campaign and lead management. The intent of EMA applications is to improve marketing campaign efficiencies. Functions include demographic analysis, variable segmentation, and predictive modeling occur on the analytical (Business Intelligence) side.

Integrated CRM software is often also known as “front office solutions.” Of Maruti, This is because they deal directly with the customer of the company.

Maruti uses CRM software to store all of their customer’s details. When a customer calls at maruti, the system is used to retrieve and store information relevant to the customer. By serving the customer quickly and efficiently, and also keeping all information on a customer in one place, a the management at Maruti aims to make cost savings, and also encourage new customers.

ANALYTICAL CRM

In analytical CRM, data gathered within operational CRM and/or other sources are analyzed to segment customers or to identify potential to enhance client relationship. Customer analysis typically leads to targeted campaigns to increase share of customer’s wallet. Examples of Campaigns directed towards customers are:

  • Acquisition: Cross-sell, up-sell
  • Retention: Retaining customers who leave due to maturity or attrition.
  • Information: Providing timely and regular information to customers about Maruti.
  • Modification: Altering details of the transactional nature of the customers’ relationship. Analysis typically covers but is not limited to:
  • Decision support: Dashboards, reporting, metrics, performance etc.
  • Predictive modelling of customer attributes
  • Strategy and research.

Analysis of Customer data relates to the following analyses:

  • Campaign management and analysis
  • Contact channel optimization
  • Contact Optimization
  • Customer Acquisition / Reactivation / Retention
  • Customer Segmentation
  • Customer Satisfaction Measurement / Increase
  • Sales Coverage Optimization
  • Fraud Detection and analysis
  • Financial Forecasts
  • Pricing Optimization
  • Product Development
  • Program Evaluation
  • Risk Assessment and Management

Data collection and analysis is viewed as a continuing and iterative process. Ideally, business decisions are refined over time, based on feedback from earlier analysis and decisions. Therefore, a successful analytical CRM projects take advantage of a data warehouse to provide suitable data.

COLLABORATIVE CRM

Collaborative CRM facilitates interactions with customers through all channels (personal, letter, fax, phone, web, e-mail) and supports co-ordination of employee teams and channels. It is a solution that brings people, processes and data together so company can better serve and retain their customers. Collaborative CRM provides the following benefits:

  • Enables efficient productive customer interactions across all communications channels
  • Enables web collaboration to reduce customer service costs
  • Integrates call centers enabling multi-channel personal customer interaction
  • Integrates view of the customer while interaction at the transaction level

PURPOSES OF CUSTOMER RELATIONSHIP MANAGEMENT

CRM, in its broadest sense, means managing all interactions and business with customers. This includes, but is not limited to, improvingcustomer service. The CRM program allows Maruti to acquire customers, service the customer, increase the value of the customer to the company, retain good customers, and determine which customers can be retained or given a higher level of service. A good CRM program can improve customer service by facilitating communication in several ways :

Provide product information, product use information, and technical assistance on web sites that are accessible 24 hours a day, 7 days a week.

Identify how each individual customer defines quality, and then design a service strategy for each customer based on these individual requirements and expectations.

Provide a fast mechanism for managing and scheduling follow-up sales calls to assess post-purchase cognitive dissonance, repurchase probabilities, repurchase times, and repurchase frequencies.

Provide a mechanism to track all points of contact between customer and the company, and do it in an integrated way so that all sources and types of contact are included, and all users of the system see the same view of the customer (reduces confusion).

Help to identify potential problems quickly, before they occur.

Provide a user-friendly mechanism for registering customer complaints (complaints that are not registered with the company cannot be resolved, and are a major source of customer dissatisfaction) Provide a fast mechanism for handling problems and complaints (complaints that are resolved quickly can increase customer satisfaction).

  • Provide a fast mechanism for correcting service deficiencies (correct the problem before other customers experience the same dissatisfaction).
  • Use internet cookies to track customer interests and personalize product offerings accordingly.
  • Use the Internet to engage in collaborative customization or real-time customization.
  • Provide a fast mechanism for managing and scheduling maintenance, repair, and on-going support (improve efficiency and effectiveness).
  • The CRM can be integrated into other cross-functional systems and thereby provide accounting and production information to customers when they want it.

IMPROVING CUSTOMER RELATIONSHIPS

CRM programs also are able to improve customer relationships. Proponents say this is so because:

  • CRM technology can track customer interests, needs, and buying habits as they progress through their life cycles, and tailor the marketing effort accordingly. This way customer get exactly what they want as they change.
  • The technology can track customer product use as the product progresses through its life cycle, and tailor the service strategy accordingly. These way customers get what they need as the product ages.
  • In industrial markets, the technology can be used to micro-segment the buying centre and help coordinate the conflicting and changing purchase criteria of its members.
  • When any of the technology-driven improvements in customer service (mentioned above) contribute to long-term customer satisfaction, they can ensure repeat purchases, improve customer relationships, increase customer loyalty, decrease customer turnover, decrease marketing costs (associated with customer acquisition and customer “training”), increase sales revenue, and thereby increase profit margins.
  • Repeat purchase, however, comes from customer satisfaction – which in turn comes from a deeper understanding of each customer, their individual business challenges and proposing solutions for those challenges rather than a “one size fits all” approach.
  • CRM software enables sales people to achieve this one on one approach to selling and can automate some elements of it viatailorable marketing communications. However, all of these elements are facilitated by or for humans to achieve – CRM is therefore a company-wide attitude as much as a software solution.

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.

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.

Key Initiatives

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”.

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 ‘Dil 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 ‘Swift Life’ is made for all Swift owners.

Maruti Suzuki launches customer loyalty program

Maruti Suzuki  launched an all-new customer loyalty-cum-rewards programme which will benefit new as well as the existing five million Maruti customers across India. 

The programme will work through a unique three-in-one Autocard to be issued by Maruti which will be a petro card, a loyalty card and an international credit card. The new customers as well as the existing Maruti owners can opt for the card as long as they possess valid ownership proof.

There are some incredible benefits:

The points can be accumulated in several ways – by getting your Maruti car serviced at a Maruti-authorised service station, purchase of spares and accessories from such an outlet, buying of fuel from any Indian Oil outlet, or by simply using it as a credit card. 

The usage will give the customer six per cent off on the service bill, plus 500 exchange loyalty bonus for each periodic service at any Maruti authorised workshop; a three per cent reward on purchase of car insurance and Maruti genuine accessories; 1.5 per cent reward on fuel purchase from IOC petrol stations; and 1 per cent off on all spends at card accepting establishments. Maruti is hopeful of roping in more partners in the programme over time. 

True Value – Initiative to capture used car market

Another significant development is MUL’s entry into the used car market in 2001, allowing customers to bring their vehicle to a ‘Maruti True Value’ outlet and exchange it for a new car, by paying the difference. They are offered loyalty discounts in return.This helps them retain the customer. With Maruti True Value customer has a trusted name to entrust in a highly unorganized market and where cheating is rampant and the biggest concern in biggest driver of sale is trust. Maruti knows its strength in Indian market and has filled this gap of providing trust in Indian used car market. Maruti has created a system where dealers pick up used cars, recondition them, give them a fresh warranty, and sell them again. All investments for True Value are made by dealers. Maruti has built up a strong network of 172 showrooms across the nation. The used car market has a huge potential in India. The used car market in developed markets was 2-3 times as large as the new car market.

N2N: Car maintenance is a time-consuming process, especially if you own a fleet. Maruti’s N2N Fleet Management Solutions for companies, takes care of the A-Z of automobile problems. Services include end-to-end backups/solutions across the vehicle’s life: Leasing, Maintenance, Convenience services and Remarketing.

Maruti Driving School (MDS): Maruti has established this with the goal to capture the market where there is inhibition in buying cars due to inability to drive the car. This brings that customer to Maruti showroom and Maruti ends up creating a customer.

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