____________ISSN 2319–1171

Research Journal of Management Sciences _____________________________________________

Vol. 6(2), 8-11, February (2017) Res. J. Management Sci.

A study of customer relationship

elationship management in retail outlets
utlets at Bhopal,
Bhopal
India
Monika Sharma1* and Nishith Dubey2
1
Barkatullah University, Bhopal, India
2
National Institute of Technical Teacher Training and Research Bhopal, India
[email protected]
Available online at: www.isca.in, www.isca.me
Received 7th October 2016, revised 1st February 2017, accepted 4th February 2017
Abstract
In Indian economy, Retail Sector is playing a significant role in growth of industries. The major contribution of retail sector
sect
is towards employment generation and they are the largest creators of employment opportunities as globalization and
privatization is taking place across the globe. Unorganized retail sectors are facing great challenges to survive and sustain
in the market and even the organized retail in India is also fac
facing
ing a tough competition from all round the world. Bhopal
consists of different income groups from various segments like rural, semi
semi-rural,
rural, urban, upper middle and lower. This study
focuses upon the practices implemented by retail outlets. Retail outlets are implementing CRM practices for establishing the
customer retention management. Research shows that as customer preferences and choices are dynamic and changing
frequently. It helps the sector to understand the customer needs and how frequently they vis visit
it the retail outlets. Many
retailers use the CRM software packages for understanding the customer needs and purchasing behavior. Through this, a
company can make a clear prediction of customer’s future outcomes.

Keywords: Retail outlets, CRM, Organized R

Retail and Customer Satisfaction.

Introduction
In India, after agriculture sector retailing is providing 15 % to
20 % of employability and it contributes significantly in the
GDP. Organized retail sector has growth and high potential in
creating new jobs. In India, retail sector has a significant role in
creating direct interaction with customers in the competitive
world through proper maintains of products, product display,
accessibility and assortment. According to the report of CII CII-
Mckinsey retail sector contribute 10% of the GDP and near
about of 6% of total employment opportunities including
organized and unorganized labor work force1. In competitive
environment organized retail stores are characterized by large
formatted stores.
Source: Retail & Export News, September 5, 2010
Retail sector is the backbone of India and it is called as “Nation Figure-1: Customer Relationship Management Cycles
of Shopkeepers” with the 15 million outlets2. Indian organized
retail sector contribute 2% of the total retail sector and it is Customer relationship management is a process to establish the
increasing by about 5% since 2010. Indian economy contribut
contributes customer behavior and purchase pattern. Many organized
11%-12% in GDP from retail sector3. The organized retail retailers have been targeting to increase their market share
market share was 8% in 2012. through various services and promotional activities. It helps the
retailer for increasing their sales revenue and profits. The
CRM in Retailing: According to Levy and Weitz Retailing sequential activities are shown in Figure-1
Fig which includes the
Management is “A business Philosophy and set of strategies, four major components for iterative process of customers like
programs and systems that focuses on identifying aand building database, programs,
rograms, strategies and target customers.
loyalty with a retailer’s profitable customers”. Retailers can
generate their profit by creating a sound and healthy Major Retail Outlets in Bhopal:: Retail sector is growing at a
relationships with customers4. The main objective is to maintain faster rate in Bhopal city. There are different segments of
the loyalty of the customers. branded and organized outlets targeting the various income
groups of consumers from different
nt segments like rural, semi-

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Research Journal of Management Sciences _______________________ ________________________ISSN 2319–1171
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Vol. 6(2), 8-11, February (2017) Res. J. Management Sci.

rural urban, upper, middle and lower income segments etc. The
detail of organized retail store in Bhopal city is as follows -- Very High High Medium Low

Retail Outlets
Shoppers Stop, Pantaloon , Westside,
Clothing and 15% 10%
Levis, Big Life, Vishal Mega Mart, V –
Apparels
mart, Big Baazar, Manyawar etc
Nike, Lotto, Puma, Catwalk, Liberty, 32%
Footwear
Adidas, Bata, Woodland, Reebok, etc
43%
Hypercity, Kabuliwala, Apoorti,
Food and
Priyadarshaini, V- Mart, Vishal Mega
Grocery
Mart, Reliance Fresh etc
World of Titan, Tommy Hilfigure,
Watch & Shopper’s Stop, Paris, Tanishq, Alankar,
Jewellery Agarwal Jewelers, Orra, Punjab Jewelers, Figure-2: Percentage Target Income Groups
PC Jewelers etc
Retail Stores Collecting Customer’s Database: This data
Lotus, Sony world, Tarang , LG, Reliance
Durables shows effective working of retailers. Sixty percent of the
digital, Hypercity , etc
organized outlets collect customer information for their
database. Customer database helps the retailers to identify
Objectives of the Study: The research was carried out with purchases of customers. For implementation of CRM the other
following objectives: i. Analyze CRM practices followed by the forty percent
ent should also start building their database.
retail stores. ii. Evaluate the various CRM techniques adopted
by organized retail firms and stores. iii. Examine the benefits of YES NO
CRM to the retailers and customers.

Review of Literature: Parikh analyzed that organized retail 40%

sector develops in India; retail outlets will have to emerge the 60%
quality of their services extensively in order to struggle
effectively in the international market place.

It is, thus veryy essential to know how customers appraise service

quality and to measure and improve it5. Jain and Jain studied Figure: 3 Percentages of retail outlets
utlets collecting customer data.
CRM practices of hotels in central India to measure the
effectiveness against various factors like: recognition, customer Tools /Techniques Used for CRM: 50 percent of the organized
ity, relationship orientation and gestures6.
orientation, reliability, retailers at Bhopal deploy E–services.
services. Knowledge management
Raab in Customer relationship management: a global is used by 30 percent which is most important for CRM
perspective proposed a research work for the comparison of implementation. Only 10 percent of the retailers use multi
customer relationship management principles exercised by other channel management. Thus nearly seventy percent of the
rketplace7.
multinational retailers in a global marketplace retailers need to use knowledge management for effective
implementation of CRM.
Methodology
E-Commerce E-services
The study on CRM in retail outlets was conducted through Self Services Multichannel Management
structured questionnaire and interviews methods for collecting
Knowledge Management
data. The sample size used was 10 organized retail outlets.
0%
Results and discussion 30%
Income Group of Customer’s of Retail Outlets in Bhopal: 50%
Spread of retail stores customers by income group at Bhopal is
10%
as Very high income group 10 percent, High income 32 percent,
10%
Middle income group 43 percent and Low income group 15
percent. Thus retail stores should concentrate more on Middle
income group and High income group as they comprise of 75
percent of all customers. Figure: 4 Tools/Techniques used For CRM

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Vol. 6(2), 8-11, February (2017) Res. J. Management Sci.

Various Time Frame Schemes Offered by Retailers: Thirty

Customer Record
one percent use special offer schemes like free gifts, coupons
etc., to attract customers. This is done twice in a year (clearness Interaction with customers
sale July & January). Free product sampling is offered by Measurement of Service Quality
nineteen percent, Gifts by twelve percent.
Customer Experience

Heavy discount Free products

15% 25%
Gifts Flowers and cards 5%
Others All

10%
31%
15%
55%

13%

19% Figure-7: Methods of Tracking Customer Satisfaction.

12%
Data Required for CRM Implementation: According to the
views of respondents regarding data required for the CRM
implementation in the retail outlets main source was interaction
Figure: 5 Special Schemes Offer with customers, 55 percent.
t. The customer’s record and customer
experience are the next two sources of data for CRM
Frequency of Tracking Customers Satisfaction: About 60 implementation.
percent of retailers interviewed believed that the frequency of
tracking customer satisfaction is done daily whereas some Customer record
retailers in organized retail do it monthly and very few do it
Interaction with customers
Quarterly.
Measurement of service quality
Customer experience
Questionnaire sent through mail Follow -up
up telephone calls
15% 25%
Sending SMS Outside firm Hired to track satisfaction
5%
Suggestion boxes Others

20% 10%
55%
10%

10% 50% Figure-8: Data required for CRM

Methods of Collecting Customer’s Data: Thirty two percent

0% stores collect the information through entry form feedback
feedba
forms thirty percent through feedback forms and twenty eight
retailer uses bill records.
Figure-6: Tracking Customers Satisfaction Benefits through CRM: About thirty one percent of the total
retailer believed that most important benefit of CRM to the
Methods of Tracking Customer Satisfaction: It is evident that retailers is that there is an increase in the number of customers
most used method of tracking the customers satisfaction is followed by repeat purchase and increase in profit. The other
follow up through telephone. Retailers also track customers by benefits are that new customers are attracted and enhanced
making them fill questionnaire, by keeping suggestion boxes service quality. Their perceptions may not be correct as CRM
and other innovative methods. largely benefits in regards to customer loyalty.

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Research Journal of Management Sciences _______________________ ________________________ISSN 2319–1171
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Vol. 6(2), 8-11, February (2017) Res. J. Management Sci.

Figure-11: Basis for Evaluating CRM

Entry forms Feedback forms Conclusion
Bills records Others
The study helps us to indentify the CRM practices which are
10% being followed by the organized retail stores at Bhopal. Through
32% CRM tools and techniques retailers and customers are benefited
28% which helps in future relationship. The customers are attracted
and thereby the retailers increase their service quality. This
study can be used by researcher for identifying the taste and
30% preferences of the customers. It will help in understanding
reasons of frequent store visit of customers to retail stores. The
study can
n be used by the consultants for making various training
programs and CRM software for the organized retail stores.

Figure: 9 Ways of Collecting Data References

Increase in number of customers 1. Mathur Meera and Samma Sumbul (2010). A Study on
Repeated customer Customer Relationship Management Practices in Selected
Increase in profit Organised Retail Stores in Udaipur City.
City Pacific Business
Enchancing service quality Review - A Quarterly Refereed Journal,
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Attracting new customers
2. Gupta Uravashi (2012). Impact of Organized Retail on
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10% 31% International Journal of Research in Commerce, IT &
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22% 3. Paul Green E., Mahajan Vijay, Stephen Goldberg M. and
24% Kedia Pradeep K. (1983). A Decision Support System for
Developing Retail Promotional Strategy. Journal of
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Figure-10: Benefits of CRM 4. Anupama C.R. and Prapurna Leela (2010). Customer
Relationship Management
agement in India Retail. SRM-
Basis for Evaluating CRM: Most of retailers in organized Management Digest, 8, 67-76.
76.
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evaluating the CRM is by counting the number of customer An Empirical Assessment of the Instrument. Vikalpa, 31(2),
complaints, by looking
ng at the market share and by seeing the 45-56.
reduction in expenses. Some other retailers also took as revenue,
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CRM. Exchange in Service
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Revenue Expenses 7. Raab G., Ajami R.A., Gargeya V. and Goddard G.J. (2012).
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13% 12%
23% 20%

12% 20%

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