Tuesday, April 21, 2009

CRM in a Kirana's Context!

What is the service that the Kirana delivers that constitutes value? He caters to our whim and fancy; literally and figuratively. By sending even a small item to our homes, taking orders even at 9.30 p.m. and so on. And also by remembering the exams of our children, remembering to ask how your backache is, being contrite when something is not good and so on.

And what enables him to do that? CRM. Not the customer relationship management that one usually reads about. His CRM is Care, Respect and therefore the Motivation to shop with him.

There are two parts to this; His ability to recognize you and your family members, remember your shopping habits and more importantly your monthly spends. Then his brain analyses and generates business intelligence in the form of your lifetime value to him.

I used to stay alone in Bangalore for work and there was the ubiquitous Kirana near the apartment complex. I went and introduced myself and was promptly given his telephone number with a promise that I can call anytime for anything. A few days later I called for some soft drinks as I had guests. He was apologetic but could not come as his delivery boy was not there. As I was coming down in the lift, his delivery boy entered the compound with some things to deliver, obviously not for me. What had happened? He must have done his homework and determined that my lifetime value to him was not worth the trouble!


Lifetime value of a consumer - This is the intent behind most loyalty programs. But how many deliver?

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