Consumer behaviour

Hi All

The small un organizsed retailer does not have bandwidth to implement the CRM (Customer Relationship Mgt) program, so they run by there personal charisma and rapport build with the crowd. But the risk is as generation changes the same comfort level is missing. That why u are seeing slowly the growth of organised retail. Which we may all need to accept. They may not be growing rapidly, but still they are crawling,walking and few are running in fast speed.

As the scale and product variety is increasing the to understand the consumer behaviour is very important for a retailer to make a sales (i.e. revenue for the company).

So based on my past consulting exp on the CRM front, like to draft the points here, which I have already put across too in a different topic too.

Define what is Loyalty. (Customer Loyalty)

Collecting Customer Data

Customer Database (Transaction & Customer's contact, customer's preference, descriptive information, response to marketing activities)

Identifying Information

Analyzing Customer Data and Identifying Target Customers

Identifying Market Segments

Identifying Best Csutomers (Lifetime customer value (LTV), Customer Pyramid- Platinum, Gold, Silver, Bronze; Iron, Lead; RFM Analysis (Recency, frequency, monetary)

Developing CRM programs

Customer Retention

Converting Good Customers into Best Customers

Dealing with unprofitable Customers

By making customers memeber and providing benefits of membership ,time to time giving promotional offers .they come close to them .They keep large no. of SKUs to cater the needs.They study customers behaviour and accordingly make streatgy to satisfy them .They serve to a comparatively, large segments of the market .

Organised retail is going to look into the consumer behaviour,needs,aspirations and evolution in much more indepth and scientific manner and implement programs and offerings in the format......unorganised retailing is not equipped to do it.......your neighbourhood kirana store is going to satisfy the basic need of the consumer and all the personel touch and feel aspect will just be oriented towards it...whereas the organised retail is going adress his wants which goes beyond his basic needs and has an element of experience attached to it......it must be understood,read and predicted and accordingly programs and policy implemented.....