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A Report on CRM Practices of Asian Paints Submitted to: Prof. Mukesh Chaturvedi Submitted by: Ramandeep Singh Arora 081 Rishinath 087 Sandeep Raj 092 Shantanu Seth 096 Shriker Parth 100 CRM in the Indian Paint Industry Information and assistance about paint and its application was not easily available to the end consumer in India. This led to the consumer thinking that painting is a hassle. This in turn, in many cases, would cause the consumer to postpone painting. This resulted in the alienation of the customer from the paint companies. The companies realized that they need to interact with customers and enhance the customer’s involvement in paint. This realization propelled many companies to create customer retention programs. In the past decade the companies tried to achieve this through promotional schemes and events especially around festive occasions. The Business Challenges Improve quality of service delivery for customer satisfaction Increase transparency in process to ensure timeliness of delivery Allow us to build a base for a longer term, continuous relationship with an existing customer How: Use IT to build an infrastructure back bone to enable the processes which would enhance customer centricity The above challenges led to the genesis of Project ‘Tantra’ (customized extension on SAP NetWeaver to SAP CRM) HSSP to manage the entire process from receiving the lead to executing the service Including transactional facilities like–pricing, billing and collections Provide visibility to the Asian Paints team of the status once the lead is passed onto the HSSP Improve financial controls and increase efficiency through process integration. Integrate tightly with CRM solution to ensure a single view of the consumer for other marketing initiatives like – customer surveys, service guarantee, customer complaints etc. Asian Paints and CRM Asian Paints could increase the customer connect by converting consumers from thinking about ‘paint for protection’ to thinking about ‘painting to enhance décor’. The key objective for Asian Paints’ CRM program was ‘providing hassle free painting solutions’ to the customer. This implied an increase in paint consumption amongst those who couldn’t afford to paint. They also adopted a service approach that helped to build a competitive barrier in the consumer segment. The Asian Paints brand gained stature by becoming a part of the service economy. It should be noted that there are a large number of Consumer Services that needed to be offered to complete the consumer experience. Some of these services are listed below: • Ask Aparna – Online assistance through Chat • Colour Speak – Colour Consultants help choose the best colour combinations for customer homes • Foresite – Customized Visualization Service • Home Solutions – Hassle free painting service from start to finish • Paint Calculator – Cost estimates for painting (on the basis of dimensions) • Painting Guide – Exhaustive painting tips for every step in the process • Painting Tips – Recommended application procedures for different surfaces • Project Sales – Value Solutions for large projects In addition, quality of service requirements necessitates support of IT enablement. Asian Paints came up with two IT enabled solutions: The first was the customer care and contact centre. The Asian Paints Helpline is a premier Information Services offering. Centralized voice calls processing centre set-up in India Easy access from more than 600 towns covering most of urban India Outsourced contact centre operated on mySAP CRM and other technology and tools supplied by Asian Paints What does it do? Information and assistance for all inbound calls especially as a lead collator for Home Solutions Complaint registration, tracking and reporting Outbound for customer feedback and warranty registration Outbound calling for tracking field initiatives like Contractor promotions, Direct Selling, etc The second was Asian Paints Home Solution (APHS). The core objective for APHS was to: Offer a ‘unique signature look’ to homes using color combinations and painting themes Act as a ‘Delivery arm’ for all direct consumer propositions Create competitive barriers in the ‘direct to consumer’ segment The contact centre followed by the APHS services were powered using SAP CRM 4.0 using customer interaction centre, custom extensions build on the SAP NetWeaver enabled SOA process and SAP BW 3.5 for Analytics and Reporting. Let’s look at this IT enablement a little closer: The APHS delivery process Leads from Helpline, customer referrals and other sources provided to the Home Solution Service Provider (HSSP) HSSPs are appointed franchisee in each city to deliver service— to manage the entire process from sales to service delivery. For the purposes of management of the above, Asian Paints implemented a SAP based application called project ‘Tantra.’ A representation of Tantra is given below: What were the benefits? As Asian Paints moves from mere product selling to providing ‘solutions’, we will need to learn to manage in a scalable manner the numerous moments of truth during customer interaction with a diverse set of APHS representatives. The following stakeholder quotes will demonstrate the level of change that was enabled: Accounts & Audit: improved process control and accounting transparency Marketing Manager-Services: scalable and greater visibility of the data on a real time basis at a central level HSSP: availability of customer analytics for greater optimization of customer acquisition/retention activities Some proof points Greater visibility of the data on a real time basis at a central level. Reports are instantaneous Improved process control and accounting transparency Customer information captured can be used for campaign management, predictability models, loyalty programs etc Turnover has doubled in the last three years 70% of helpline customers have show interested in home solution services 40 % of the contacted customers availed the service within 15 days of seeking appointment It is possible to dramatically impact business with the skillful use of IT enabled innovation. The Customer Interaction Model – as implemented through Tantra Stations of Experience The following diagram represents the business flows that project Tantra was able to create for Asian Paints. In CRM terminology this represents an accurate picture of the Stations of Experience. The entire process has been so designed so as to provide a satisfactory experience to the customer. This ensures that the customer comes back for repeat purchases. Recommendations The model that is being currently used works through a very efficient implementation of IT for the purposes of the integration of the complete customer interaction with the company. This is also designed to make sure that the customer is always satisfied with the company. However, there are some issues with this. The employees of the company (the internal customers) need to be included into the model. The employees need to be trained in use of the software so that no gaps are left between the thought and the action.
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