Customer relationship management implementation in retail sector

The retailing industry has been present in our country through history and is considered as one of the largest sectors in the Indian economy, contributing to around 14% to the GDP, and employing around 7% of the total population. CRM is quite a new phenomenon in retailing industry. It is only big retailers who have installed CRM systems to identify and track customer purchases and take appropriate management decisions, especially on managing customer relationships. Now, organized retailers like Big Bazaar, Westside, Shoppers’ Stop, etc., have started concentrating on providing more value to their valuable customers using targeted promotions and services to increase their share of wallet. The present focuses on scope for CRM implementation in retail sector, outlines the ground work for CRM implementation and finds suitable tools. It also brings out benefits of CRM implementation and suggests appropriate strategy for effective implementation of CRM program. It is cautioned that when the CRM program is not well indoctrinated among the people throughout the organization or if it is not employee and or customer friendly or too costly, it is bound to fail. The authors suggest that the management of the retail store should give a personal touch to the customers. It will encourage the customers to make frequent visit to the retail store. It also helps in building personal relationship with the customers leading to the higher level of the customer loyalty.