CRM

A Study on FMCG
Submitted To
Dr. R Sugant

By
Section B
Sl No PGDM No Name
Group 6 1 18178 Anisha Pinto
2 18009 Darshan S
3 18051 Garv Khanavalia
4 18144 Shreena Ashok
5 18124 Thimmaiah Ba
6 18080 Revanth T
 Loyalty, quality and satisfaction in FMCG retail market
does loyalty in retailing exist?
Introduction
• To identify and analyze how customers are experiencing quality, loyalty and satisfaction in the Fast-
moving consumer goods (FMCG) retail market.
• FMCG sector, it is not the physical product that is the main offer. Instead, the store’s main “product”
is the shopping experience
• Loyalty can be built by focusing on trust and commitment
Factors that affecting the Quality perception of shopping experience

• storehouse’s location
• the speed of the checkout
• cleanliness
• the politeness of the personnel
• access to other support services
5Qs Model, satisfaction and loyalty
• Quality of object
• Quality of processes
• Quality of infrastructure
• Quality of interaction
• Quality of atmosphere
Findings
• Both psychological and economical attributions influence customers loyalty.
• customer loyalty programs within the FMCG sector are more costly
• The nature of the FMCG market is high volume sales, large number of customers and
low profit margins makes it very expensive to establish long-term relationships.
 Customer lifetime value (CLV)
• Total amount of money a customer is expected to spend in your business
• Helps to make decisions on much to invest in acquiring new customers
and retaining
• CLV of a regular coffee drinker might be even higher than a Honda Car
Example: A person who regularly buys biscuits from a store is worth:
Rs.20 per packet X 4 packs a week X 4 weeks
= Rs. 20x4x4x12
= Rs.3200/year
Benefits of CLV
• How much you can spend to acquire a similar customer and still have
a profitable relationship
• What kinds of products customers with the highest CLV want
• Which products have the highest profitability
• Who your most profitable types of clients are

The above benefits boost the profitability of a business

Managing Customer lifecycle
• Tools that help ensure that leads and clients are receiving high-quality,
personalized service always.
Example: Gofers, Big Basket

Advantages:
• One-to-one customer journeys
• Promoting improved customer loyalty
• Better brand reputation
• Taps into motivations that help turn leads into brand evangelists
In an FMCG customer lifecycle can be segregated as:

• Approach: Locate leads - demonstrate value – show path to become

customers
• Acquisition: Leads enter sales pipeline - continue to demonstrate product
value - address concerns
• Development: End of the pipeline - complete sales - become customers -
developing relationship
• Retention: Data driven - personalized customer experience
• Loyalty: End is to create Brand Advocates – promote company on their
own social circles
 Customer Acquisition
• Customer acquisition is the process of bringing new customers to your brand.
• FMCG Company developed a new Customer Acquisition Model,
(a) Trade Side Solutions - the physical reach
(b) Consumer Side Approaches - the communication and mental reach
• Line advertising: Billboards, TV and radio spots, print advertisements, and
cinema spots
• Product line strategy that offers all the varieties consumer wants with different
names
Customer Retention

• Customer retention refers to the activities and actions that companies take to
reduce the number of customer defections
• FMCG brands may not spell it out clear strategies and tactics to retain
consumers
• Strategies for ‘retention’ in FMCG:
 Regular, relevant advertising
 Consistent, relevant consumer promotions
 Relevant price promotions
 Product enhancements and extensions
5 ways to improve customer experience in FMCG products

Why Managing Customer experience?

• Customer experience is increasingly becoming the difference between
organizations that win, and organizations that become extinct
• customer experience needs to be front and centre for all FMCG producers

How can FMCG businesses influence customer experience?

• Creativity and knowing your customer
• Differentiating your brand in innovative ways and offering the customer a
frictionless, meaningful experience
Five easy ways you can enhance your offering to improve the end
experience for your customer
• Thoughtful packaging
• Size and quantity combinations
• Value-adding information
• Good together partnerships
• Personalisation
Findings
FMCG businesses has the opportunity become more customer-orientated. It’s no
longer about quality and efficiency. Customer experience, in the form of added
value and convenience, are the driving differentiators, by seeing our products
and packaging through the lens of our customers.
 NESTLE CRM

Objective:
• Building relationship
• Getting feedback

Nestle embraces Loyalty scheme to reach buyers:

• Nestle food service have adopted a CRM programmer designed to hep them
get closer to customers in the catering trade.
• Foodservice reward are the loyalty programmer that allows manufacturers to
collect data on business.
Transaction Processing system:
• In this segment Nestle process data resulting from business transactions, update
operational databases, and produce business documents.
• They use TPS in sales and inventory processing and accounting systems.
• Nestle use this system to find out the point-of sales or sales data from all over its
subsidiaries.

Process Control Systems:

• Nestle use PCS as production control system. Nestle use this system in its food
department.
• They use electronic sensors linked to computers to continuous monitor food
material processes and make real time adjustments.
CRM in FMCG sector:
• Understanding customers behaviors

• Effective communication and sharing of information

• Gaining market insights to accelerate innovation process

• Develop customer center process

• Creating competitive advantage

• Customer satisfaction

• Customer retention and loyalty

In this segment Nestle considering term and Workgroup collaboration within and
outside the boundaries of the organization. Like email, chat, videoconferencing
groupware systems.
Benefits for Nestle in using CRM
Implementation of CRM can lead to:
• Increased sales through better timing due to anticipating needs based on historic trends.

• Identifying needs more effectively by understanding specific customer requirements.

• Cross-selling of other products by highlighting and suggesting alternatives.

• Identifying which of your customers are profitable and which are not.

• Effective targeted marketing communications aimed specifically at customer needs.

• Increased value from exiting customers and reduce cost associated with supporting and
servicing them, increasing your overall efficiency and reducing total cost of sales.
References
 https://www.omicsonline.org/open-access/loyalty-quality-and-satisfaction-in-fmcg-retail-marketdoes-
loyalty-in-retailing-exist-2167-0234.1000122.php?aid=29292
 https://www.omicsonline.org/open-access/loyalty-quality-and-satisfaction-in-fmcg-retail-marketdoes-
loyalty-in-retailing-exist-2167-0234.1000122.php?aid=29292
 https://www.mmsind-mipi.com/publications-case-studies/fmcg-industry-customer-acquisition-
model/
 http://blog.customerradar.com/blog/5-ways-to-improve-customer-experience-in-fmcg-products
 https://www.shopify.in/encyclopedia/customer-lifetime-value-clv
 https://books.google.co.in/books?id=k1KHFxS3gosC&pg=PA5&lpg=PA5&dq=customer+lifetime+value
+biscuits&source=bl&ots=rNfjmw0_dg&sig=ACfU3U1xMsJJwnc4FuoqJ4Q1BQ1dbnpGHA&hl=en&sa=X
&ved=2ahUKEwibvYf85__kAhUMiXAKHfvuAmsQ6AEwFXoECAYQAQ#v=onepage&q&f=false
 https://www.salesforce.com/products/marketing-cloud/best-practices/customer-lifecycle-
management/#
THANK YOU!