Big Bazaar Case Study
WHAT IS CRM?
All customers are not equally profitable, and more or less profitable customers need to be treated differently. CRM deals with the management of this relationship with the customers, wherein, we analyze which customers are profitable and which are not and then we take the steps accordingly to ensure the retention of the customers. This is done with the help of target promotions and services to increase the share of wallet- the percentage of the customers’ purchases made from the retailer.
CRM CIRCLE Figure 1: The Customer Relationship Management Cycle
The CRM cycle consists of four phases:
• Interact with the relevant customers o Interact with customers and prospective customers o Accordingly deliver more relevant services to …show more content…
Retaining a customer is much more profitable as acquiring a new customer. Hence, CRM is an iterative process:
• Collecting the customer data
• Analyzing the data and identifying target customers
• Developing CRM programs
• Implementing CRM programs
RESEARCH
VAN HEUSEN
BIG BAZAAR
As observed in Big Bazaar, Choudhary Mall, the CRM system of Big Bazaar is divided into various segments:
• Loyalty Cards
• Mobility
• Social Media
• Customer Experience
• Customer Monitoring
• CPV
Loyalty Cards
Big Bazaar cobranded with ICICI to provide customers loyalty cards. Initially it offered three loyalty cards Silver Card, Gold Card and Shakti Card. The Silver and Gold card are provided according to the demand of the customers. Shakti Card was introduced exclusively for women. The requirements to get a Shakti card are minimum and moreover, the women get 1 kg sugar free for 12 months.
Recently Big Bazaar introduced a new outlet for apparels with the brand name Fashion Big Bazaar. It cobranded with SBI to launch a new card for the customers of …show more content…
• Competitor performance monitoring: An in-depth knowledge of the competitors helps Big Bazaar to make sure that the industry standards are met.
• Mystery Shopper: The employees disguise as shoppers go to the outlet to interact with the customers and also to make sure that the assistance and products are up to the mark.
• Market Basket: Observing the buying habits of the customers are the key to success in the industry. Here, the buying habits are closely observed and it helps in various aspects such as product adjacency and product placement.
Customer Perceived Value (CPV)
CPV is calculated to access the perceived value of the deals for the customers. It is the difference between the customers’ evaluation of the benefits and the cost of an offering.
Perceived Value = Perceived Benefits/ Price of the offering
Hence, it enables to manage the offers and create the bundle offerings for the customers and potential
All customers are not equally profitable, and more or less profitable customers need to be treated differently. CRM deals with the management of this relationship with the customers, wherein, we analyze which customers are profitable and which are not and then we take the steps accordingly to ensure the retention of the customers. This is done with the help of target promotions and services to increase the share of wallet- the percentage of the customers’ purchases made from the retailer.
CRM CIRCLE Figure 1: The Customer Relationship Management Cycle
The CRM cycle consists of four phases:
• Interact with the relevant customers o Interact with customers and prospective customers o Accordingly deliver more relevant services to …show more content…
Retaining a customer is much more profitable as acquiring a new customer. Hence, CRM is an iterative process:
• Collecting the customer data
• Analyzing the data and identifying target customers
• Developing CRM programs
• Implementing CRM programs
RESEARCH
VAN HEUSEN
BIG BAZAAR
As observed in Big Bazaar, Choudhary Mall, the CRM system of Big Bazaar is divided into various segments:
• Loyalty Cards
• Mobility
• Social Media
• Customer Experience
• Customer Monitoring
• CPV
Loyalty Cards
Big Bazaar cobranded with ICICI to provide customers loyalty cards. Initially it offered three loyalty cards Silver Card, Gold Card and Shakti Card. The Silver and Gold card are provided according to the demand of the customers. Shakti Card was introduced exclusively for women. The requirements to get a Shakti card are minimum and moreover, the women get 1 kg sugar free for 12 months.
Recently Big Bazaar introduced a new outlet for apparels with the brand name Fashion Big Bazaar. It cobranded with SBI to launch a new card for the customers of …show more content…
• Competitor performance monitoring: An in-depth knowledge of the competitors helps Big Bazaar to make sure that the industry standards are met.
• Mystery Shopper: The employees disguise as shoppers go to the outlet to interact with the customers and also to make sure that the assistance and products are up to the mark.
• Market Basket: Observing the buying habits of the customers are the key to success in the industry. Here, the buying habits are closely observed and it helps in various aspects such as product adjacency and product placement.
Customer Perceived Value (CPV)
CPV is calculated to access the perceived value of the deals for the customers. It is the difference between the customers’ evaluation of the benefits and the cost of an offering.
Perceived Value = Perceived Benefits/ Price of the offering
Hence, it enables to manage the offers and create the bundle offerings for the customers and potential