Delight 2014 | Designing for Delight Workshop, Toby Sterrett
Customer Delight - CRM and Logistics Interface
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Transcript of Customer Delight - CRM and Logistics Interface
Dabur Consumer Health
Customer
Delight: CRM & Logistics Interface
Presented at MDP organised by Management Development Center & UPES DEhradun
Dabur Consumer Health
CRM•C USTOMER •R ELATIONship•M ANAGEMENT
Dabur Consumer Health
RELATIONship BETWEEN
COMPANY AND C&FAC&FA AND STOCKIEST
STOCKIeST AND TRADE TRADE TO THE CONSUMER
Dabur Consumer Health
Relationship marketing
Moving from a ‘transactional’ model of marketing to a ‘relationship’ model
Advocate
Supporter
Client
Customer
Prospect
Emphasis On
developing and
Enhancing relationships (customer keeping)
Emphasis on new
Customers (customer catching)
Advocate
e Supporter
r Client
t Customer
r Prospect
t
Advocate
e Supporter
r Client
t Customer
r Prospect
t
Emphasis
s on
n
developing
g
and
d
enhancing
g
relationships
s
(customer
r keeping)
)
Emphasis
s
on new
new
customers
s
(customer
r catching)
)
Dabur Consumer Health
What is relationship marketing ?
• Marketing designed to create, maintain, and enhance strong relationships with customers and other stakeholders
Dabur Consumer Health
CRM vs Relationship Marketing:
• CRM develops a customer strategy and introduce segmentation to allow those requirements to be fulfilled
• CRM may mean radical changes on many levels in the organisation
• Chances of failure are reduced if some basic pitfalls are avoided
• Relationship marketing does not have to be technology intensive
Dabur Consumer Health
Why is it important?
• It costs five times as much to attract a new customer as it does to keep a current one satisfied.
• It is claimed that a 5% improvement in customer retention can cause an increase in profitability of between 25 and 85 percent depending on the industry.
• Likewise, it is easier to deliver additional products and services to an existing customer than to a first-time “buyer.”
Dabur Consumer Health
Customer Lifetime Value
• Losing an existing customer means losing the entire revenue stream that customer represents – not just that single encounter or sale.
Dabur Consumer Health
WHO IS CUSTOMER ?
• IS HE DELIGHTED ?
Dabur Consumer Health
WHO IS THE CUSTOMER: DEFINITION
• The next person (individual of function / group) in the work place, the receiver of output and the next to act on it.
A customer may be either external or internal.• External customers are those who buy our products /
services.• Internal customers are individuals / departments who use
our outputs as their input and we become their suppliers.
• In an organization, all of us are both supplier and customers to one another like a chain.
Dabur Consumer Health
The Customer wants…………..
• Right Quality
• Right Quantity
• Right Time
• Right Cost
Dabur Consumer Health
“ A Customer is the most
Important visitor on our premises
He is not dependent on us
We are dependent on him.
He is not an interruption to our work
He is the purpose of it
He is not an outsider in our business.
He is a part of it.
We are not doing him a favour
by serving him
He is doing us a favour by giving us an
opportunity to do so.”
Mohandas K. Gandhi
Dabur Consumer Health
CRM – A DEFINITION
• CRM is an integrated organizational approach in delighting customers (both external and internal) by meeting their expectation on a continuous basis through everyone involved with the organisation working on continuous improvement in all products, services and processes along with proper problem solving methodology.
Dabur Consumer Health
Attracting, retaining and growing customers
• Customer delivered value – the difference between total customer value and total customer cost.–Value includes product,
services, personnel and image value.
–Cost includes monetary, time, energy and psychic costs.
Dabur Consumer Health
Customer satisfaction
• The extent to which a product or service’s perceived performance matches a buyer’s expectations.
• What are expectations based on?– Past buying experiences– Friends, family and other associates– Information about the competition– Promises made in marketing materials
(your brand)
Dabur Consumer Health
Customer loyalty & retention
• Highly satisfied customers are:–Less price sensitive–More likely to talk favorably about
you –More likely to refer you to others–Remain loyal for longer
Dabur Consumer Health
CRM Stakeholders:• Advertising agencies• Call centers• Company employees• CRM vendors.• Consultants• CRM developers• Marketing• Sales• Telecom hardware vendors• Legal counsel
Dabur Consumer Health
Risk of CRM Implementation Failure:
• Vendor failure• Customer Rejection• Cost overruns• Time overruns• Disruption of service• Internal rejection• Evolving standards• Shifting customer expectations• General Economic Slowdown• New Technology
Dabur Consumer Health
COST EFFECTIVE TRANSPORTATION
• Minimize number of transporters.• Give CRM inputs to transporters.• Use appropriate size of vehicles for cost effectiveness.• Reduce vehicle waiting time at plant.• Use dedicated single transporter exclusively working for the
organization.• Work out PDP & monitor the performance• Negotiate Rs./Km. instead of Rs./Kg. with dedicated
transporters.• Consolidate materials at regional locations for better utilisation
of trucks.
Dabur Consumer Health
Stockiest Retention
Sales
Customers RetainedCustomers ShiftedChanged as un at-tendedAdding New Cus-tomers
Dabur Consumer Health
STOCKIEST RETENTION
• Incentivizing Stockiest on regular basis to retain them.
• Offering best Quality Products and generating market pull.
• Fast processing of claims thru hassle free procedures.
• Drishti installed at stockiest covering 80% of business.
• Setup COP unit to minimize order processing at C&FA’s.
Dabur Consumer Health
Employee Retention
• Survey on total employee satisfaction in 2005 among the leading FMCG Companies.
Dabur listed in Top 3 FMCG groups and awarded with
‘DABUR’ A GREAT PLACE TO WORK
• Long Service Awards for Employees
Dabur Consumer Health
APPROACHES
TRADITIONAL crm
Assume Customers Need
SPCIFY Verify
Produce Estimate Quality
Education to Customer
Face Major Problems
Fix Problems By Down Stream Initiation
Study Customer Need
SPCIFY Verify Throughly by searching Problems
Produce Right Quality
Listen and attend to Customer
Face Minor Problems
Fix Problems By Up Stream Initiation
Dabur Consumer Health
AROUND THE DABUR IN 14
MINUTES AVSEQ01.DAT
Dabur Consumer Health
OUR GROWTH STRATEGY
EXPAND
INNOVATEACQUIRE
The underlying thread of strategy is:
“PEOPLE”
Dabur Consumer Health
Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status.Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves.
• (SBU) – and
• •
Dabur At-a-Glance
Dabur Consumer Health
• Leading consumer goods company in India with 4th largest turnover of Rs.4110 Crore (FY10-11)
• 6 major strategic business units • Home And Personal Care (HPC) Oral Care (OC) Health Care
(HC) Ayurvedic (AYU) Fem (Fem) Foods (FOODS)
• 3 Subsidiary Group companies -Dabur International & newu
• 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA).
• 17 ultra-modern manufacturing units spread around the globe
• Products marketed in over 60 countries
Dabur Consumer Health
Dabur At-a-Glance
• Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India
Strategic positioning of Honey as food product, leading to market leadership(over 75%) in branded honey market
Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.
Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row
Hajmola tablets in command with 60% market share of digestive tablets category.
About 2.5 crore Hajmola tablets are consumed in India every day
Leader in herbal digestives with 90% market share
Dabur Consumer Health
DABUR DOCTORS MEET
Dabur Consumer Health
DABUR HEALTH CAMPS
Dabur Consumer Health
LEADING VAID HONOUR
Dabur Consumer Health
DABUR TRAINING SESSION
Dabur Consumer Health
• Narendrapur (WB)• Sahibabad (UP)• Alwar (Rajasthan)• Baddi (HP)• Rudrapur (Uttaranchal)
• Katni (MP)• Beergunj (Nepal)• Zabel-ali (Dubai)• Kalyani (WB)• Ramadan (Egypt)
Manufacturing Units
Established : December 1979
BAMS/MDs
MBBS/MDs
Pharmacists (M.Pharms/Ph.Ds)
Chemists (M.Sc./Ph.Ds)
Botanists
Agronomists
Biotechnologists
Our People are our Strength
Oil Technologists
Food Technologists
Information Scientists
Oncologists
Plant Tissue Culturists
Animal Tissue Culturists
Pharmacologists
Established: Dec. 1979
Strength : 155 Scientists : 138
Consultants : 06 Admin. Staff. : 18
Dabur Consumer Health
Research Areas
Ayurvedic Drug Research
Pharmaceutical Research
Clinical Research
Phytopharmaceuticals
Personal Care Products
Oncology Research
CGMP/Regulatory Affairs
Agronomy
Biotechnology
Analytical Development
Synthetic Chemistry
New Drug & Peptide Research
Food Technology
Veterinary Health
Dabur Consumer Health
DRF Affiliations...
DSIR, Government of India
Expert Committee on Herbal Medicines
Bureau of Indian Standards
Working Group of I.P.
Drug Technical Advisory Board, Ministry of H & FW
Member, Ayurvedic Pharmacopoeia Committee
Scientific Committee, Indian Herbal Pharmacopoeia
National Bio-diversity Board, Dept. of Biotechnology
AAPS, USA
Professional Bodies/Associations
Dabur Consumer Health
Our Partners in Clinical Research
36 Medical Colleges & Teaching Hospitals
Some Prestigious ties
– All India Institute of Medical Sciences, New Delhi
– Institute of Medical Sciences, BHU, Varanasi
– JIPMER, Pondicchery
– MGIMS, Sewagram, Wardha
– Seth GS Medical College & KEM Hospital, Mumbai
– Central Drug Research Institute, Lucknow
– PG Institute of Basic Medical Sciences, Calcutta
– Apollo Group Hospitals, Chennai & New Delhi
Dabur Consumer Health
Thus Dabur Products Offer…….
Quality
Safety
Efficacy
Dabur Consumer Health
• Dabur AV.mpg