Handiwala is a biryani delivery chain having franchisee outlets all over the country. They started their operations in the country in the year 2012. Since Biryani is not a new item for Indian kitchens, they knew that they had to face a lot of challenge from the competitors. Therefore, they decided to maintain highest quality standard to add new customers and retain the old. Their idea was to collect, manage and link customer information with the goal of marketing the products effectively. For this purpose they started offering lot of discounts when customers ordered online. They offered free home delivery in case the order exceeded Rs. 500. They also offered to supply free-of-cost, the ordered items of biryani in case of a complaint. The company also spent a substantial amount in maintaining the database of all the customers. They were sure that through these initiatives they will be able to gain more market share. (a) Identify and explain this concept. (b) How is this concept used in the present day? (c) What is the impact of technology on this concept? (d) Enlist two benefits of this concept.

Question

Accepted Answer

(a) The concept discussed in the case is **Customer Relationship Management (CRM)**. CRM entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. It is the process of carefully managing detailed information about individual customers in order to manage loyalty. In this case, Handiwala's initiatives of offering discounts, free home delivery, free items on complaints, and maintaining customer databases are all part of CRM.

(b) CRM is used today through customer relationship management solutions that enable companies to provide excellent real-time customer service through the effective use of individual account information. Based on what they know about each valued customer, companies can customize market offerings, services, programs, messages, and media. CRM is important because a major driver of company profitability is the aggregate value of the company's customer base.

(c) The impact of technology on CRM is significant. Technology and the Web has changed the way companies approach CRM strategies because advancements in technology have also changed consumer buying behavior and offer new ways for companies to communicate with customers and collect data about them. With each new advancement in technology — especially the proliferation of self-service channels like the Web and smartphones — customer relationship is being managed electronically.

(d) Two benefits of CRM are:
1. The biggest benefit is having all business data stored and accessed from a single location, giving management and employees immediate access to the most recent data when needed.
2. CRM provides a 360-degree view of all customer information and knowledge of what customers and the general market want.