CUSTOMER BEHAVIOUR

Group members : Dr.Namrata Sharma

Amit Rathi , Jayasankar.M
 Organized Retailing and its
Growth Drivers
• According to the American Board of Census:
If there are more than 15 retail chains then it is
organized retailing
• In India, there are 4 criterion:
1. Modern Format
2. Minimum ambience
3. Professionalism
4. Automation/computerization
Growth Drivers of Organized Retail:
• Industrialization, education, better irrigation facilities etc.
which have led to better employment and increased GDP and
hence higher disposable income with the people
• Increase in the number of branded products available in
market
• No shortage of anything
• LPG
• Change in the mindset of people
• Television hence better information with the people
• Increased human aspiration
• Global exposure
• Nuclear families
• Change in the government policies
Biggest retailers of India
• Future group – 7200cr
• Reliance - 6000cr
• ABRL - 1500cr
• Shopper’s stop- 1500cr
• Vishal megamart- 1250cr
• D-mart - 1200cr

• Koutons - 1000cr
• RPG Spencers - 1000cr
• Trent
• Bharati
• Metro
 THE CUSTOMER
Ten commandments of Retailing, CRM,
Customer Service
Customer is the most important visitor on our
premises. He is not dependent on us, we are
dependent on him. He is not an outsider, he is a
part of it. He is not an interruption in our work,
he is the purpose of it. We are not doing a favour
by serving him, he is doing us a favourby giving
us an opportunity to do us. Never argue with the
customer, nobody has ever owned an argue with
the customer
CLTV
Customer Life time value
• Differs from shop to shop and type of shop to
type of shop
• We should never say no to small privileges to
a customer
• It takes months to catch a customer, it takes
seconds to lose one
Why customer leaves a store???
1, 3, 5, 9, 14, 68
• 1% of the total customers who have stopped
coming die
• 3% of them may have left the city
• 5% of them change loyalty
• 9% of them change for offers, discounts
• 14% of them are not satisfied by range,
quality, service
• 68% leave because of bad behaviour
 Signs of a good behaviour
• Smile
• Lavish use of words like thankyou, sorry, excuse me, pardon, it
is my mistake
• Know the name, address by name
• See the eyes of men and bindi of women
• Use local courtesy words
• Make customer feel welcome
• Never ask: what do you want?
what price range?
have you used this?
what is the age of your wife?
what is the complexion of your wife?
never discuss religion
• Body language
• Talk what a person likes
• Give a patient listening
• Give the required service
• Anticipate
 Customer Psychology

Maslow’s hierarchy of needs

• Physical needs
• Safety needs
• Social needs
• Recognition/ status needs
• Self fulfilment
Customer Service Management
• Infrastructure sevices
• Comfort level services
• Convenience services
• Sales related services
• After sales service
• Promotional service
• Behaviour service
Appeals

Sex appeal,
Child appeal,
Fear appeal
Benefit appeal,
Humour appeal
4 Rs of CRM

• Relationship
• Retain customer
• Referral
• Recovery
Other Rs
• Reveal
• Reward
• Respect
• Retain
Types of Customers (for bahaviour strategy)

• Regular/routine
• New customer
• Presold customer- has a clear idea in his mind of colour, brand, size
etc(mainly in life cycle category
• Indecisive- we have to find out the point of indecisiveness
• Quick customer ( express counter. Drive through counter
• Confused customer
• Difficult customer- very choosy
• Tough customer- uses offending language
• VIP customer
• Anytime customer

Difficult/tough customer can be made docile by referral

Types of Customer (from positioning point of
view)

1. Price sensitivity
2. Ego sensitivity
3. Fashion sensitivity
1. Price sensitivity:
Premium: high priced
Cash strap: eg. Students can not spend beyond
a limit
Informed: Branded but cheap
Bargain hunter: also known as cherry pickers
eg. End of season sale
2. Ego sensitivity

Egoist- will not buy other than the brand in

mind
Demanding- make demands for keeping their
brand
Introvert- come, buy and leave
Indifferent
3. Fashion sensitivity

Classic- fashion first, big brands

Fashion leader- try to set trends in society
Fashion follower- follow the trend
Indifferent
Thank you