1.1 Customer Relationship Marketing
“Keeping an existing customer is six times more profitable than attracting a new one.”
Customer relationship marketing (CRM) is a business process in which client relationships,
customer loyalty and brand value are built through marketing strategies and activities. CRM allows
businesses to develop long-term relationships with established and new customers while helping
streamline corporate performance. CRM incorporates commercial and client-specific strategies via
employee training, marketing planning, relationship building and advertising.
Business is tough these days and the economy has caused companies of all sizes to rethink when
and how to nurture their relationship with customers. While it may seem like an easy decision to
cut back on investing in customer marketing, that may not be the wisest choice. As products and
services continue to become commoditized, the only remaining differentiator becomes the vendorcustomer
relationship. There is no getting around that delighting customers and growing revenue
will become more heavily based on how well you understand their evolving needs.
1.1.1 Strengthen the existing relation:
By working an extra mile to wish every customer on their birthdays, anniversary, festivals etc. will
create an attachment. Sending a greeting through email, special gifts to your customers on special
occasions in your 9-5 routine can make a big difference which lead to customer delight and
1.1.2 Feedback tools:
In today’s climate of social media, people are eager to share their feedback and perspectives. In
addition to the standard tools like customer surveys, feedback forms, and message boards, some
companies are going further to capture the “voice of the customer” in real time.
1.1.3 Social media and advertising:
Social media should not be a separate entity, but integrated into the CRM programme. Using social
media sites such as Twitter, YouTube and Facebook for business related activities, we are familiar
with the power of these tools, and the shift they are creating in online marketing and advertising.
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1.1.4 Product direction:
The next level of customer relationships is captured under the heading of “product direction.” With
an emphasis on user groups and a focus on specific features and benefits for improving its shortterm
roadmap, a company can not only gain great insight into their product’s value, but also deepen
customer relationships. Whether conducted as an exclusive product feedback session one customer
at a time, or a more general “birds of a feather” breakout session conducted as part of a user group
meeting, this type of interaction allows customers to network with key executives, product
managers, and engineers. The bonds forged in these sessions encourage and enrich the vendorcustomer
dialog, help solidify customer loyalty.
1.1.5 Sales and aftersales service:
“Sales and aftersales need to work closely together. It is about creating a holistic approach to the
customer journey. A service plan is not automatically a customer for life. This has still to be earned
by managing the customer experience.”
A joined-up approach between sales and aftersales can transform company’s fortunes.
1.1.6 Design campaigns:
According to Richard Beevers, director of Customer Plus, a customer experience consultancy that
worked with Ford Retail (now Trust Ford) to develop its Moments of Truth campaign, as well as
with Greene King and Specsavers: “CRM isn’t software, it’s a business strategy.”
1.1.7 Authentic and honest customer reviews:
Incorporating customer reviews on websites is becoming more widespread, we need to ensure
reviews are real and only from verified purchasers; don’t offer incentives; show all reviews – warts
and all; and display the review’s source.
With this the companies will get an opportunity to connect their existing consumers with prospects
and can gauge online reputation.
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DESIGN OF THE STUDY
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2.1 REVIEW OF PREVIOUS LITERATURE
2.1.1 Title: A tool for achieving customer delight in Indian Auto industry
Author: Uzzal Kumar Borah Senior Faculty, COMIT, SMU Learning Centre, Choladhara,
Jorhat, Assam, India
Reference: Vavra, T.G. 2001. Simplified Customer satisfaction, a step-by-step guide for ISO
9001: 2000 certification. ASQ Quality Press, 1 st edn. ISBN-10: 0873895002.
To study the factors which make customers happy and delightful which in return results in
retention of customers.
Scope of study:
The research paper is to understand the factors involved in purchasing of automobiles and various
tools used by different companies in automobile industry in India to increase customer satisfaction
There is change everywhere and dimensions of business economics have changed drastically with
the advent of new open economy paving way for foreign companies to enter the Indian market.
Business rules have to change from the preexisting protectionism to an open market led economy.
The most distinct segment of Indian industry that has seen phenomenal change was auto industry
as it became the most preferred hub for the global automakers. The Indian market became flaccid
with huge competition from both indigenous and global giants–result is the customer becoming
They have more choices with attractive prices and varied features that suit individual preferences.
Under these circumstances the businesses have to take a customer centric focus consistently to
squeeze a pie from the fiercely competitive market share (Vavra, 2001). Customer relationship
management or CRM has become a key tactic that business has adopted as the single most survival
strategy under today’s environment. Let us see some aspects of CRM exercises that auto
companies follow to accelerate and achieve their long term goal namely customer delight and
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loyalty. The literature is derived from secondary references and from direct interview schedule,
observation of dealers, service points etc.
The study doesn’t speak about the importance of maintaining after sales service support and
relationship which lead to customer satisfaction.
The years 2006-2010 are remembered as most significant one for the Indian auto industry as it
witnessed a record number of new products launched and joint ventures floated both by vehicle
and component manufacturers within the country and abroad. There was a distinct shift in focus
to mergers and acquisitions towards cutting costs and to increase exploration of market overseas.
The entire process started with Maruti introducing its Swift of international styling and M and M
foraying into the overseas market with the Scorpio, as also joining hands with Ranault for
production of the later’s Logan for the Indian market. Toyota Kirloskar Motors took the wise
decision of replacing the Qualis with the innovative Innova. This was soon followed by the Lunch
of the Tata Novus range of high technology HCVs in Indian and Tata Dawoo’s medium size trucks
in South Korea.
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2.1.2 Title: Contribution of CRM Strategies in Enhancing Customer Loyalty
Author: Siphiwe Plaxcedes Mandina Midlands State University, Zimbabwe
Reference: Barnes, J.G. (2001), Secrets Of Customer Relationship Management: It’s All About
How You Make Them Feel, Mcgraw-Hill, New York, NY.
Objectives: To know how CRM strategies are helping automobile companies to retain and attain
higher profits from their customers.
Scope of the study:
The study is focused towards various CRM strategies of companies in Zimbabwe. The motor
industry in Zimbabwe is a complex and very competitive environment, which is dominated by
many big and small players ranging from assemblers, assembling plants, dealers and services.
This study was undertaken to evaluate the contribution of CRM strategies in enhancing customer
loyalty in the motor industry. The motor industry is facing intense competition both locally and
internationally. The paper analyses trust and commitment as antecedents of customer loyalty, the
benefits of database marketing and key account management, categories of loyalty, as well as
challenges affecting the effective implementation of database marketing and key account
The research design was descriptive and exploratory. A sample size of 297 respondents was used
which included 150 business customers and 147 employees. The major finding was that trust and
commitment have a role to play as they led to customer loyalty. It was therefore concluded that
CRM contributes significantly towards customer loyalty in the motor industry, thus it was
recommended that the motor industry could make optimum use of information technology in order
to fully implement CRM strategies.
The study did not spoke anything about After sales service which is one of the leading factors of
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The researcher found out that one fundamental problem for these car dealers is to obtain cooperation
from other organizational members without having formal authority over them and this
co-operation is needed for the success of key account management. The car dealers do not have
key account managers save a customer service department at the car dealers’ head office. Poor
Communication was also cited by most car dealers as a challenge in converting a business
customer into a key account as it lengthens the process. The researcher concludes that this poor
communication and lack of management commitment in spearheading the key account
management process is mainly attributed to the employees who are not knowledgeable enough to
handle the business customers’ needs and therefore poses as a challenge for effective key account
1.1 Customer Relationship Marketing