SUMMER TRAINING REPORT

ON
CUSTOMER RELATIONSHIP MANAGEMENT

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF THE DEGREE OF
MASTER OF BUSSINESS ADMINISTRATION (Business Economics)

UNDER THE SUPERVISION: SUBMMITED BY:

MISS. PARUL KUMARI NAMRATA
(SENIOR HR) MBA (BE) 3rd SEM
22001218024

Submitted to-

Training and placement cell

Department of Business Economics
V.B.S.Purwanchal University, Jaunpur (UP)

DECLARATION
I, Namrata Maurya hereby declare that this project titled “Customer

Relationship Management” submitted in partial fulfillment of the requirement

for the MBA in Marketing is my original work and it has not formed the basis for

the award of any other degree.

Namrata Maurya

Date:

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ACKNOWLEDGEMENT
My acknowledgement would be incomplete without expressing our gratitude to
Wonder point creative solution PVT and all those who have contributed towards the
successful completion of this project.

I would like to thank peoples of Miss. Parul Kumari for giving an opportunity to
get exposure in CRM. Special thanks to Miss. Monika Gupta (Guide). This project
would have been incomplete without his guidance and timely assistance.

I am also thankful to all my friends who were very helpful throughout the project. I
stand apologetic for the error if any.
 TABLE OF CONTENT

Topic Name Page No.

Declaration 1
Acknowledgement 2
Company profile 3
Need of the study 4
Introduction 5-6
Aims of CRM 7-8
Benefit of CRM 9-17
Objective 18
Research methodology 19-20
Factor Analysis 21-
Limitation 22
Reference and Conclusion 23
Questionnaire 24-25
 COMPANY PROFILE

Wonder point creative solution private Ltd

Wonder Point Creative Solution Pvt. Ltd. was established in 2012, with an
idea to provide creative IT and ITES service.
We felt that there was a desperate need of best in class and creative service
provide which would help client to be future ready.

ONE-STOP WEB SOLUTION

Whether you are focusing on complex, multipurpose custom programming
and development or attractive website design, we utilized latest industry trend
and technologies like web experience required to do so.

HIGH-END DEVELOPMENT SERVICE

We provide full-cycle web development services according to your specific and
specification, coding, architecture, design, coding and validation to production support and
maintenance.

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 Need of the study

In today’s intensely competitive, rapidly changing & highly complex business environment

characterized by diminishing customer loyalty, the need to be market focused & customer centric

is more critical than any other time in past. Firms use technology as a key tool to enhance the

information flow within their business units, helping their employees better understand the ever

changing and increasing need and wants of their customers.

It is certain that the internet will continue to change the ways customers and organizations interact

with one another in terms of speed and ease. This fact requires that the integration of internet

technology into CRM activities occur at all levels throughout the organization. Thus, it would be

wrong to say that keeping its customer satisfied is in the best interests of the organizations.

The purpose of this study is to bring insight and deeper understanding into the objectives,

strategies and the expected benefits of CRM initiatives by the organization.

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 Customer Relationship Management

Introduction:-

The biggest management challenge in the new millennium of liberalization and globalization for a

business is to serve and maintain good relationship with the king – the customer. In the past

producers took their customers for granted, because at that time the customers were not demanding

nor had alternative source of supply or suppliers. But today there is a radical transformation. The

changing business environment is characterized by economic liberalization, increasing

competition, high consumer choice, demanding customer, more emphasis on quality and value of

purchase etc.

All these changes have made today’s producer shift from traditional marketing to modern

marketing. Modern marketing calls for more than developing a product, pricing it, promoting it

and making it accessible to target customer. It demands building trust, a binding force and value

added relationship with the customers.

The process of developing a cooperative and collaborative relationship between the buyer and

seller is called customer relationship management shortly called CRM.

CRM (customer relationship management):-

CRM (customer relationship management) is an information industry term for methodologies,

software, and usually Internet capabilities that help an enterprise manage customer relationships in

an organized way. For example, an enterprise might build a

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database about its customers that described relationships in sufficient detail so that management,

salespeople, people providing service, and perhaps the customer directly could access information,

match customer needs with product plans and offerings, remind customers of service requirements,

know what other products a customer had purchased, and so forth.

According to one industry view, CRM consists of:

 Helping an enterprise to enable its marketing departments to identify and target their best

customers, manage marketing campaigns and generate quality leads for the sales team.

 Assisting the organization to improve telesales, account, and sales management by

optimizing information shared by multiple employees, and streamlining existing

processes (for example, taking orders using mobile devices)

 Allowing the formation of individualized relationships with customers, with the aim of

improving customer satisfaction and maximizing profits; identifying the most profitable

customers and providing them the highest level of service.

 Providing employees with the information and processes necessary to know their

customers understand and identify customer needs and effectively build relationships

between the company, its customer base, and distribution partners.


Aims of CRM:-

The CRM is a new technique in marketing where the marketer tries to develop long term

relationship with the customers to develop them as life time customers. CRM aims to make the

customer climb up the ladder of loyalty.

The company first tries to determine who are likely prospects i.e. the people who have a strong

potential interest in the product and ability to pay for it. The company hopes to convert many of its

qualified prospect into first time customers and then to convert those first time customers into

repeat customers. Then the company tries to convert these repeat customers into clients – they are

those people who buy only from the company in the relevant product categories. The next

challenge for the company is to convert these clients into advocates. Advocates are those clients

who praise the company and encourage others to buy from it.

The ultimate challenge is to convert these advocates into partners where the customers and the

clients work actively together to discover ways of getting mutual benefit.

Thus in CRM the key performance figure is not just current market share but share of life time

value by converting customers into partners.

In CRM the company tries to identify that small percentage (20%) of key account holders whose

contribution to the company revenues is high (80%). So from this point of view, CRM is also

known as KEY ACCOUNT MANAGEMENT.

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Why — Customer Relationship Management:-

Ø A satisfied customer in 10 years will bring 100 more customers to the company. Ø It

costs 7 times more to attract a new customer than to serve an old one.

Ø 20% of the company’s loyal customer’s account for 80% of its revenues. (Pareto’s principle).

Ø The chances of selling to an existing customer are 1 in 2; the chances of selling to a new

customer are 1 in 16.

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Benefits of Customer Relationship Management:-

A Customer Relationship Management system may be chosen because it is thought to provide the

following advantages:

 Quality and efficiency

 Decrease in overall costs

Decision support

 Enterprise ability

 Customer Attentions

 Increase profitability

 Improved planning

 Improved product development

Customer service:

CRM software provides a business with the ability to create, assign and manage requests made by

customers. An example would be Call Center software which helps to direct a customer to the

agent who can best help them with their current problem. Recognizing that this type of service is

an important factor in attracting and retaining customers, organizations are increasingly turning to

technology to help them improve their clients’ experience while aiming to increase efficiency and

minimize costs. CRM software can also be used to identify and reward loyal customers which in

turn will help customer retention. Even so, a 2009 study revealed that only 39% of corporate

executives believe their employees have the right tools and authority to solve client problems.

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 Increase in customer retention Customer

satisfaction ratings improved

Service calls deflected from call center to online forum

Reduction in overall customer service costs

Marketing:

CRM systems for marketing help the enterprise identify and target potential clients and generate

leads for the sales team. A key marketing capability is tracking and measuring multichannel

campaigns, including email, search, social media, telephone and direct mail. Metrics monitored

include clicks, responses, leads, deals, and revenue. Alternatively, Prospect Relationship

Management (PRM) solutions offer to track customer behavior and nurture them from first contact

to sale, often cutting out the active sales process altogether.

In a web-focused marketing CRM solution, organizations create and track specific web activities

that help develop the client relationship. These activities may include such activities as free

downloads, online video content, and online web presentations

Product- or company-related postings

Positive product comments, reviews

Visitors following link from social channel to online store’s URL

Visitors referred to website from online friend

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Sales:-

Sales Force Automation (SFA): involves using software to streamline all phases of the sales

process, minimizing the time that sales representatives need to spend on each phase. This allows a

business to use fewer sales representatives to manage their clients. At the core of SFA is a contact

management system for tracking and recording every stage in the sales process for each

prospective client, from initial contact to final disposition. Many SFA applications also include

insights into opportunities, territories, sales forecasts and workflow automation.

More sales lead with expressed interest or need

Increase in referrals

Reduce cost per lead acquired

Key social influencers identified and engaged (invited to write a blog, for
instance, or otherwise participate in a company’s online community)

Overall increase in online sales and/or online customers

High response rate to coupon or promotion offered on Facebook or other social channel

Increased purchasing from social channel visitors vs. regular online visitors

Product development:-

New ideas for future products or services generated via contests or “crowd

sourcing,” in which online groups brainstorm and then vote on best ideas

Responses to online surveys to vote on new product features or upgrades

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Horizontal vs. Vertical:-

Major CRM vendors offer horizontal CRM solutions. In order to tailor a horizontal CRM solution,

companies may use industry templates to overlay some generic best practices by industry on top

of the horizontal CRM solution. Horizontal CRM vendors may also rely on value added reseller

networks of systems integrators to build vertical solutions and sell them as 3rd party add-ons or to

come in and customize the solution to fit into a particular scenario.

Vertical CRM vendors focus on a particular industry. As a general rule of thumb in CRM, it is ten

times more costly to build a vertical solution from a horizontal software program than it is to find

a particular vertical solution that is already tailored to your business model and industry.

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How to introduce CRM in the company:-

Four key steps for putting one to one marketing program to work –

Step 1: Identify your customers:

To launch a one to one initiative the company must be able to locate and contact a fair number of

customers or at least a substantial portion of its valuable customers. It is crucial to know the

customer details as much as possible, not just their names or address, but their habits, preferences

and so forth.

Step 2: Differentiating your customers

Customers are different in two principal ways; they represent different levels of value and have

different needs. Once the company identifies its customers differentiating them will help the

company to focus its efforts to gain the most advantage with the most valuable customers.

Step 3: Interacting with the customer

Interaction is also a crucial component of a successful CRM initiative. It is important to remember

that interaction just not occur through marketing and sales channels, customer interact in many

different ways with many different areas of the organization so to foster relationship all the areas

of the organization must be accessible to the customer.

Step 4: Customize your enterprise’s behavior

Ultimately to lock a customer into a relationship a company must adapt some aspect of its behavior

to meet customer’s individually expressed needs this might mean mass

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customizing a manufactured product or it might involve tailoring some aspect of the service

surrounding the product.

Challenges:-

Successful development, implementation, use and support of customer relationship management

systems can provide a significant advantage to the user, but often there are obstacles that obstruct

the user from using the system to its full potential. Instances of a CRM attempting to contain a

large, complex group of data can become cumbersome and difficult to understand for ill-trained

users. The lack of senior management sponsorship can also hinder the success of a new CRM

system. Stakeholders must be identified early in the process and a full commitment is needed from

all executives before beginning the conversion. But the challenges faced by the company will last

longer for the convenience of their customers.

Additionally, an interface that is difficult to navigate or understand can hinder the CRM’s

effectiveness, causing users to pick and choose which areas of the system to be used, while others

may be pushed aside. This fragmented implementation can cause inherent challenges, as only

certain parts are used and the system is not fully functional. The increased use of customer

relationship management software has also led to an industry- wide shift in evaluating the role of

the developer in designing and maintaining its software. Companies are urged to consider the

overall impact of a viable CRM software suite and the potential for good or bad in its use.

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Significance of the study:-

The CRM (customer relationship management) is an integrated effort to strengthen the network of

relationship for the mutual benefit of both the parties. The biggest management challenge in the

new millennium of liberalization and globalization for a business is to maintain good relationship

with the king – the customer. This study is of great significance because

Ø A 5% increase in the customer retention will increase the profit up to 125%. Ø It

costs seven times more to attract a new customer than to serve an old one. Ø 20% of the

company’s loyal customers account for the 80% of its revenues.

Ø To study on customer relationship management would enable the researcher to know about the

CRM practices adopted in the Paint industry.

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Review of the existing literature:-

With the available literature we can summarize CRM in the words of various authors as follows-

Customer Relationship Management marketing can be defined as “ an integrated

effort to identify, maintain and build up a network with the individual customers

and to continuously strengthen the network for the mutual benefit of both parties,

through interactive, individualized and value added contracts over a long period of

time.

Conceptualization:-

A firm in paint industry has to maintain good relations with its customers. They have to retain the

customers for a long time to avail the benefit of their relations. The customer relationship

management is one of the effective tools to identify, establish and maintain relationship with the

customers.

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Objectives of Customer Relationship Management:-

1. To study the current practices of CRM.

2. To find out the impact of CRM on the profitability of the organization.

3. To study the factors affecting the CRM practices.

4. To study the role of information technology in CRM.

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Research Methodology

A research design is simply a plan for study in collecting and analyzing the data. It helps the

researcher to conduct the study in an economical method and relevant to the problem.

Research methodology is a systematic way to solve a research problem. The methodology should

combine economy with efficiency.

Research design

The study conducted here is exploratory cum descriptive.

Scope of the study

The scope of the study is confined to Company.

Collection of the data

There are two types of data.

Primary data – primary data is that data which is collected for the first time. These data are

basically observed and collected by the researcher for the first time. I have used primary data for

my project work.

Secondary data – secondary data are those data which are primarily collected by the other person

for his own purpose and now we use these for our purpose secondly.

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Findings:-

The customers of COMPANY are industries & Distributors throughout India.

The needs of the customers are clearly defined and the products are customized

according to the needs of the customers.

Customer’s comments and complaints are welcomed and resolved quickly and positively.

Comments and complaints are taken through face to face interviews.

The company conducts customer satisfaction surveys.

The company provides credit facility to its customers up to 90 days. If the customers pay

within 21 days they are given 5% cash discount for distributors.

Sales persons of the company maintain frequent and informative communication with the

customers.

Business process is regularly reviewed to eliminate non value-adding activities.

The average sale per customer has increased by 10% and customer’s response to the

marketing activities is also improving. Customer retention is also improving.

The factors which have an impact on the CRM are – organization culture, support from

top management, interpersonal skill of the sales personals and working environment of

the company.

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Analysis:-

The customers of the COMPANY are the direct industries & wholesalers. It is because for the

decorative segment the number of retailers is very large as compared to the wholesalers. So it is

not possible for the company to approach to the retailers. Therefore the company sells to the

wholesalers and then wholesalers sell to the retailers.

Customers are encouraged to give suggestions and complaints so that the company can improve

its working and services. If the customer’s complaints are not resolved the customers will be

dissatisfied and the company may lose its customers.

Different customers have different requirements. So the company customizes its product

accordingly to satisfy the customers. It also gives more choice to the customers.

To get the information about the customers and to measure the satisfaction the company conducts

surveys through Business development sales persons.

The company gives credit facility to its customers to increase the sales volume. If the company do

not sell on credit the customers may switch over to other companies.

The company maintains frequent communication with the customers. As soon as the product is

ready or a new product is launched the information is provided to the customers. Communication

is also necessary to maintain the interest of the customers in the company.

The company gives concession to its regular customers so as to retain it’s most valuable and

profitable customers.

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The company regularly reviews the business process in order to eliminate non value- adding

activities, to reduce the cost and to make the whole work efficient and effective. If the internal

customers are not satisfied and there is lack of coordination among the departments then it will

affect the external customers also.

Limitations of Customer Relationship Management:-

1. Time constraint is unavoidable limitation of my study.

2. Financial problem is also there in completing this project in a proper way.

3. Inadequate disclosure of information is also the problem.

Objective of Research Methodology

 Provide a systematic framework for conducting research

 Define research question
 Select appropriate methods
 Gather and analyze data
 Ensure rigor, ethics, and efficiency in research processes
 Produce reliable and meaningful results
 Generate new knowledge
 Improve society


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Recommendations:-

 There should be more and more emphasis given by the company for satisfying the

customer up to an apex limit and by providing the utility of every penny of his money.

 There should be more use of information technology.

 The company should be flexible to bend its rules and procedures in the clients favor.

 The company can communicate and develop stronger customer bonding by

providing social and financial benefits.

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Conclusion:-

From this study it can be concluded that the customer relationship management in Company is
satisfactory. The company is using various CRM practices like customization of the product,
maintaining interaction with the customers regularly and providing good quality product etc.
Customer relationship management has a certain impact on the profitability of the company.
Average sale per customer has increased 15% over the last two years. Customer response rate
towards marketing activities is also improving. There are various factors affecting the customer
relationship management like working environment of the company, support from top management
and coordination among the departments of the company. Information technology is not used as
much as it should be. The company is using traditional tools of CRM like quantitative research,
personal interviews. The company should modern tools like data mining, contact center, e-CRM
and web based survey tools.

References:-

 Kotler,Philip & Armstrong, Gary, “Principles of Marketing” 12th edition

 Ramaswamy, V S & Ramakumari, “Marketing Management” 3rd edition
 DeGregor, Dennison (2011), Customer- Transparent Enterprise beyond 20th
Century CRM.
 http://www.google.com
 Freeman, H (2004), Why Services are so Important, online available;
www.serviceindustriestren.org.
 Rampal M K & Gupta S L, “Service Marketing” 4th edition.

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Questionnaires

1. Who are your customers?

a) Dealer
b) Industry

2. Are your customer’s needs clearly defined?

a) Yes
b) No

3. Do you conduct customer satisfaction surveys?

a) Yes
b) No

4. Do you communicate results of your customer satisfaction surveys regularly

throughout the company?
a) Yes
b) No

5. Do you actively seek out customer comments and complaints?

a) Yes
b) No

6. How do you get customer comments and complaints?

a) Face to face .
b) Toll free numbers, formal surveys.
c) Others means

7. How do you get information about the customers?

a) Face to face interviews
b) Surveys.

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c) Any other means.

8. Do you analyze channel effectiveness? In which channel is most effective in

serving the customer?
a) Yes
b) No

9. Do you provide credit facility to your customers?

a) Yes
b) No

10. Do you give concessions to your regular customer?

a) Yes
b) No

11. Do you take feedback from your customers?

a) Yes
b) No

12. Do you customize your product or services according to the customer?

a) Yes
b) No

13. Do you have a concept of “internal service”?

a) Yes.
b) No.

14. Do you communicate with your customers frequently?

a) Yes.
b) No.

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