As part of its CRM initiative,
Shoppers' Stop Ltd is now looking at investing in Business Intelligence
Solutions (BIS) called 'Customer Analytics'.
In order to source this software service, Shoppers' Stop is now in the process
of evaluating many companies, one among them being SAS India Pvt. Ltd. With the
move, the company hopes to offer the the appropriate loyalty programmes to its
customers, informs care associate and Senior Manager - Marketing Services, Ajay Kelkar.
Explains Mr. Kelkar: "For a retailer, the key parameters are 'Gross Margin
Return Per Sq Foot','Gross Margin Return On Inventory' and 'Gross Margin Return
On Labour' to keep track of cost-revenue ratio. We also have 'Gross Margin
Return On Customer', the mantra no longer just being power brand but power
customer."
According to Mr. Kelkar, in order to determine GMRC, 'Customer Analytics' is a
must as it will help satisfy and retain existing customers. "It will also give
valuable information on customers' profile, spending patterns, profitability
basis analysis of past records and insight into customers' implicit and explicit
demands mapped back to their profitability," adds Mr Kelkar.
As per Frost & Sullivan BI Report, (India, 2001-2008) on the Indian BI
application market, SAS India Pvt. Ltd. has a market share of 22.5 percent and
top-of-mind recall at 70 percent for 2001.
According to Integrated Retail Management Consulting (IRMC), the Indian
retail industry currently occupies two percent of the $185 billion global
market. The focus is not on just 'Power Brand' but 'Power Customer'. Also, a
number of Indian retailers are planning to increase their IT budgets over the
next three to five years from less than one percent of their retail turnovers to
between one and five percent of their anticipated retail turnovers during
2005-05
At present, Shoppers' Stop has brands at one end of the apex ' Stop' for the
value segment, 'Life' the fashion brand for the youth, and 'Kashish' the ethnic
brand. Informs Mr. Kelkar: "Here the basis of differentiation is the product. On
the other end of the apex, are customer loyalty programmes where the basis of
differentiation is the consumer. In fact, Shoppers' Stop has the largest retail
loyalty programme, First Citizen with 1,8-.00 consumers. Finally, at the apex is
the mother brand."
According to Mr Arjun Erry, director, sales, SAS India Pvt. Ltd. from an
analytical standpoint, CRM gathers information from point-of-sale, call centers
and the Web in an effort to increase loyalty and retain custmers over their
lifetimes.
Says Mr. Sharat Bansal, Business Consulting Services, IBM: "Customer
intelligence not only ensures customer loyalty and retention, but also enables
maximising the transaction value per customer."
