Study and evaluation of HMIL CRM system

Study and evaluation of HMIL CRM system This report is a comprehensive study of HUMDAI I ndia CRM system. Framework followed is Gartner CRM maturity tool. The CRM System of Hundai is analysed and evaluated with respect to the current industry practices Asutosh Das UEMF15004 Moudipa sadhukhan UEMF15018 IPshita satpathy UEMF15015 Bibhu dutt Mishra UEMF15006 2/9/2016 Acknowledgement I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to Mrs Krishna Dashgupta XIMB for her guidance and constant supervision as well as for providing necessary information regarding the project & also for their support in completing the project. I would like to express my gratitude toward CRM manager Smita Sikta rath and CRM team of Utkal Hundai for their kind co-operation, encouragement and giving me such attention and time which help me in completion of this project. My thanks and appreciations also go to my colleague in developing the project and people who have willingly helped me out with their abilities." Thank You Contents Acknowledgement ............................................................................................................................ 2 CRM IN AUTOMOBILE INDUSTRY ............................................................................................................ 4 Current Scenario ................................................................................................................................. 4 Three Simple Strategies: ..................................................................................................................... 5 Key CRM principles of Automobile Industry ........................................................................................... 5 Hundai CRM analysis............................................................................................................................... 6 The maturity model ............................................................................................................................ 7 Maturity of different areas of CRM ........................................................................................................ 9 Vision................................................................................................................................................... 9 Strategy ............................................................................................................................................. 10 Customer Experience ........................................................................................................................ 11 Organizational Collaboration ............................................................................................................ 12 Processes........................................................................................................................................... 12 Data and information ........................................................................................................................ 12 Technology ........................................................................................................................................ 13 Metrics .............................................................................................................................................. 14 Industry analysis ................................................................................................................................... 14 Major Players .................................................................................................................................... 14 B ief stud of ajo o petito s C‘M p a ti es ............................................................................. 14 CUSTOMER RELATIONSHIP MANAGEMENT AT MARUTI SUZUKI. .................................................... 16 CUSTOMER RELATIONSHIP MANAEMENT AT TOYOTA..................................................................... 17 Industry Challenges:.............................................................................................................................. 18 Solution proposition industry looking forward to ................................................................................ 20 Hundai CRM challenges and future implementation ........................................................................... 24 CRM IN AUTOMOBILE INDUSTRY The automobile industry has undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars were built. production stages. Parts and module production, services and related activities have been shifted to other, specialised firms (outsourcing of production steps). Since the 1980s, it has become clear that further productivity gains to retain competitiveness can be possible only by outsourcing and securing greater flexibility. For example, firms, especially small car producers whose markets have been threatened by imports, have diversified their production programmes (e.g. by building off-road cars or convertibles) thereby introducing greater flexibility in the production process. Also, firms and their production have become more internationalized in lieu of outsourcing. Some 70 years ago car assembly was primarily manual work. Today, the process of car assembly is almost fully automated. In the old days, firms attached importance to the production of virtually every part in a single plant, while today, carmakers concentrate on only a few specific But then the only differentiating factor is how flexible the automotive industry is with the customers and they can prove to be distinct in managing relationship and capitalizing on that with customers. Current Scenario The concept of selling in the passenger car industry is changing from original sales towards lifecycle value generation, encompassing financing, repairs & maintenance, cleaning, provision of accessories, and so on. The increasing need to attain global scales underscores the importance of platform sharing among carmakers. All original equipment manufacturers (OEMs) are trying to reduce the number of vehicle platforms, but raise the number of models produced from each platform. This means producing a number of seemingly distinct models from acommon platform. Gone are the days when dealers had to break up the Saturday morning sales meeting early because customers were flocking to the showroom floor. There are more makes and models available than ever before. Competition is up, supply is up, consumer access to product and pricing information is easier which drives expectations up and trust down. With more franchises competing for the same market, dealers are either in growth or fear mode and they know that the key to success lies in how they define CRM. Many dealers today have committed to a business development model because they realize that full-time effort equals full-time results, whereas part-time effort equals part-time results. Dealers are rethinking CRM, the best way to set up and run a BDC and the role of conventional advertising vs. digital marketing Three Simple Strategies: Manufa turer’s Site: Customers often sta t at the a ufa tu e s site to egi the product research process. When you get leads that trickle in from the a ufa tu e s site to ou o U‘L, they are early in the buying cycle and can require months of meaningful follow up. In most cases the leads are free and they need to be leveraged. Lead Providers: Third party providers have a national presence and can reach people ou ould t o di a il ha e access to. Just as all dealerships are not created equal, all lead providers are not eated e ual. What s g eat a out the web is that everything is measurable and it s a pie e of ake to track and measure your cost per sale so you can determine which ones are better than others. Lead aggregators make that process even easier today and can save your staff valuable time by providing complete information needed to set an appointment. Dealership’s Own We site: In addition to creating sales leads, the goal of the Web site is to market the whole dealership. Step one is to help sell a car today, but step two is to promote all the other profit centers (service, parts, subprime, etc.) and to become a marketing center, rather than an information source. As a result, three different types of traffic will be created: Internet, phone and showroom and herein lies the link to CRM. Key CRM principles of Automobile Industry Differentiate Customers: All customers are not equal; recognize and reward best customers disproportionately Understanding each customer becomes particularly important and the same usto e s ea tio to a ellula o pa operator may be quite different as compared to a car dealer. Besides for the same product or the service not all customers can be treated alike and CRM needs to differentiate between a high value customer and a low value customer. What CRM needs to understand while differentiating customers is  Sensitivities, Tastes, Preferences and Personalities  Lifestyle and age  Culture Background and education  Physical and psychological characteristics Differentiating Offerings in terms of service  Low value customer requiring high value customer offerings  Low value customer with potential to become high value in near future  High value customer requiring high value service  High value customer requiring low value service Keeping Existing Customers Grading customers from very satisfied to very disappoint should help the organization in improving its customer satisfaction levels and scores. As the satisfaction level for each customer improve so shall the customer retention with the organization. i. Maximizing Life time value Exploit up-selling and cross-selling potential. By identifying life stage and life event trigger points by customer, marketers can maximize share of purchase potential. ii. Increase Loyalty Loyal customers are more profitable. Any company will like its mind share status to improve from being a suspect to being an advocate. Company has to invest in terms of its product and service offerings to its customers. It has to innovate and meet the very needs of its clients/ customers so that they remain as advocates on the loyalty curve. Referral sales invariably are low cost high margin sales. Hundai CRM analysis The CRM practices at Hundai is being evaluated as per The Gartner CRM Maturity Model has five increasing levels of maturity. Level 1: Aware Level 2: Developing Level 3: Practicing Level 4: Optimizing Level 5: Leading The dimension of evaluation are Vision , Strategy ,Customer Experience Organizational Collaboration ,Processes ,Data and Information ,Technology and Metrics. The maturity model (source : Gartner) Vision Level 1: Aware Level 2: Developing Level 3: Practicing Level 4: Optimizing Level 5: Leading Ignorance toward CRM; a belief that it is un-necessary Initial productivity and visibility Function/channel effectiveness Intraenterprise integration A focus on entire customer ecosystem None Isolated projects; initiated from the bottom-up More "joined up" thinking, but still silooriented Cross-department objectives; enterprise CRM Shared objectives and goals Uncontrolled by either organization or customer Limited scope; "Whatever happens, happens" Understanding and focus within individual silos Common experience across lines of business (LOBs), regardless of touchpoint Understanding of customer across ecosystem, and consistency of response and engagement Inward focus; silooriented First signs of customer centricity; silooriented Changing culture and incentives; silo-oriented Customer centric; reorganized by segment Shared customer centricity; goal alignment Inward focus; silooriented Start optimizing for efficiency; silo-oriented Optimization at silo level for cost, revenue and effectiveness Enterprise-level optimization for cost and value; processes cross some silos (such as lead management) True end-to-end process optimization for customer engagement Basic; fragmented Team-based; fragmented; minimal insight Shared info at silo level; insight developing Shared info and insight across the enterprise; 360-degree view of customers Shared info and insight beyond the organization Fragmented; weak functionality Fragmented; limited functionality and focus Strong functionality within silos Strong functionality with enterprise-level integration Strong functionality; integrated beyond the organization Few metrics focused on internal processes (such as cost reduction in call center, increased sales and decreased campaign cycle times) A few more metrics focused on specific processes (such as reduction in time on call, response rates to campaigns and close rates for sales) Customer-focused metrics are being defined (such as customer value, share of wallet and customer satisfaction) Enterprise- and customer-focused; balanced hierarchy Shared objectives with balanced and aligned metrics Strategy Customer Experience Organizational Collaboration Processes Data and Information Technology Metrics The practices in Hundai is quite mature and the tool used to inline the business objective to CRM objective is GDS (Global distribution system) management tool. There are two separate modules 1. Seller management system which takes care of sales planning, customer acquisition etc and 2. Module 2 Dealer management System (DMS) to take care of after sales services, customer relation building etc. * Analysis result The weighted score is product of weight and the score. weight of a parameter decided by various research done in the industry Our report scope is majorly based on DMS system as this module takes care of customer retention, CSI, After sales service management, grievance handling, quality assurance, service Reminder handling, and spare parts inventory management. The Sales CRM mainly deals with new customer acquisition and campaign management. The HMIL A glimpse of the DMS system: (Hundai motors India LTD) has taken the initiative of GDMS implementation in 2005, which was successfully helped the company to track the customers need better. As per customer relationship manager Smita Sikta rath the latest Hundai car Creta is a result of customer research and choice collaboration. The DMS system regularly interacts with Gold customers for new innovation and requirement inputs and the backend designing team work on the same. Maturity of different areas of CRM Vision The Hundai vision talks about HMMA Vision and Mission Our Team provides value for your future. HMMA Mission Statement To create exceptional automotive value for our customers by harmoniously blending safety, quality and efficiency. With our diverse team, we will provide responsible stewardship to our community and environment while achieving stability and security now and for future generations. The vision of the company aligns with customer value creation, The GDMS implementation have been started in 2005, and since then all the dealer network have been brought under common umbrella and increased the customer centricity. The management is serious about GDMS and promoting the adaptation very seriously. The organization has prioritized CRM practices and the benefits have been realized as mentioned by CRM manager with the DMS system they are able to track customer details must faster and able to do cross and up scaling better Strategy Hundai CRM strategy is defined to increase acquisition, development and retention of the customers. The system correctly identifies the potential repurchase leads and generate trigger for it. With different campaigns across all channels, Hyundai has a clear, consistent and meaningful way for connecting with their most likely prospects. The CRM strategy usy aligns with business strategy, to increase harmoniously blending of safety, quality and efficiency. Internal team has been identified for smooth *Trigger of service for customer transaction of CRM external ITes partner Wipro is supporting the DMS system. The strategic CRM metrics like CSI, revenue per customer is being tracked. The customer segmentation is not very clear in dealers level, and the CRM governance structure is also totally dependent on the C‘M a age s i itiati es. Over all the CRM strategy is optimized. The CRM created is an enterprise-level strategy that focuses on developing the value of the customer base Customer Experience Under the customer Loyalty program is 1 year of free service is provided to all the customers, and the free services could be extended up to 3 years within a pre defined period. Gold customers are selected as per the purchase time and different inputs are been taken for them for the product development. Customer inputs are analyzed and channelized to concern departments; well defined customer feedback system is available. Different complains, improvement *Customer complain portal suggestion are tracked, CSI is being measured all the process activities are updated and tracked and cycle time for each time is defined. The entire CRM team believes that creating a valued customer experience strengthens future relation and the face is the index of mind. The points of interactions are identified ( door keeper, reception, Service center employees, telephone operators) and trained periodically to creat enriched customer value. Organizational Collaboration The Organization employees policies are defined aligned to CRM, employee award and recognition and Penalty structure are defined with CSI and Lessons in change management are shared, and there is alignment with incentives and compensation. Employees pay penalty of rs 50 for complains where as award of rs 1000 is also given. The appraisal process is also linked with Customer feedback and satisfaction index. CRM department has an important role in the organization and focus on customer services is prominent. For example, if in any instance the car servicing get delayed, customers were requested to returned back and later the service is compensated by free car wash or people from the center go to the customer place to bring the car for servicing. Processes Processes have been re-engineered within silos and with a cross-enterprise focus. The outcome is internal efficiency and external effectiveness. All the process are optimized, each of the customer touch point is identified and defined and prioritization is also being done for the processes. If any particular process fails to address the situation the process is revisited and reengineered. SLAs and penalty structure is already in place to serve the customer more efficiently. The CRM department is majorly responsible for customer satisfaction tracking through different phases, and trains the front line employees. Data and information A single view of the customer has been established, using quality, timely and relevant data that is shared across all channels and business domains. Formal data governance and stewardship policies have been put in place. Weekly and monthly customer service reports are sent to Kolkata head office which are then analyzed in HMIL for detailed insights of customer. Employees in sales end and service end are trained to maintain clean data. Predictive analytics, along with the incorporation of unstructured forms of data, and automation of reports are yet need to be achieved. The interaction with the CRM manager Smita reveled that sometimes due to relocation tracking the latest data of a customer become cumbersome and this inputs are already shared with HMIL. Technology The technology usage in the CRM practice is leading in industry space. All the customer faceing process are connected by technology, Email, mobile messages, calls, DMS etc and the DMS system is a part of the organizations ERP system. Customer data of entire HMIL can be accessed from any DMS portal as centralized server supports HMIL customer data management. The CRM department regularly reports regarding the improvement of the systems and process to make the entire customer experience more augmented. The suggestions are analyzed by core HMIL technical team and enhancement patches are being added to the system. Metrics A balanced hierarchy of customer metrics with strong links between the tiers of the hierarchy is put into place to communicate customer-oriented objectives down the organization, as well as to measure and monitor key performance indicators (KPI) up the organization. The costs, benefits and ROI are starting to be measured, with managers being held accountable. The entire CRM system evaluation is being done periodically; all the inputs from CRM teams are collected and processed as per the relevance. Some features of the DMS are altered as per user inputs. Different performance matrices with different weight have been identified for varied teams. The Analysis details are attached Hundai_crm_assessm ent.xlsm Industry analysis Major Players Maruti Udyog Limited, Tata Motors Limited, Toyota Kirloskar Motors Limited. Bajaj Tempo Limited, DaimlerChrysler India Private Limited, Fiat India Automotive, Skoda Auto India Limited, Private Limited, Ford India Limited, General Motors India Limited, Hindustan Motors Limited, Honda Siel Cars India Limited, Hyundai Motor India Limited, Mahindra & Mahindra Limited Brief study of major competitor’s CRM practices CUSTOMER RELATIONSHIP MANAGEMENT AT TATA MOTORS RELATIONSHIP POLICY:  The customer is tied to the company primarily through financial incentives –lower prices for greater volume purchases or lower prices for customers who have been with a firm a long time.  As we know, the acquisition cost is not the only cost one faces when buying a car. it may not necessarily be affordable to maintain, as some of its regularly used spare parts may be priced quite steeply. Tata Motors provides very good after sale services to its customers. It is in the economy segment that the affordability of spares is most competitive as compared to others.  It also provides its long term customers either with stable prices or lower price increases as compared to the new customers. TATA motors provides financial incentives and rewards to the customers who bring more business to their service station by recommending and spreading good word of mouth to others about their services.  TATA Motors provides free of cost servicing to customers having Tata cars within a two year warranty time period. TATA motors also offers an extended paid warranty program marketed under the a d, Fo e e You s fo the thi d a d fourth year after purchase. The extended warranty program helps in strengthening contact with the customer and also increase the revenue generated from sale of spares, accessories and auto mobile related services. CRM SYSTEMS AND IMPLEMENTATION These are some of the key features for which AUTOMOTIVE SECTOR applies CRM software:  Sales management shares customer information between sales, service and parts departments  Vehicle management gives complete vehicle data along with sales, service and financial history, as well as dealer and license information and owner and contact information  Activity and e-mail management systems link e-mails with associated contacts, leads and opportunities  Service management increases customer loyalty by enabling consistent, personalized interaction across all customer touch points including, telephone, e-mail, Web, wireless devices and in-person meetings. Tata Motors implemented Oracle's Siebel Automotive, a comprehensive customer relationship management (CRM) solution designed specifically for companies in the automotive industry. Seamlessly integrated with Tata Motors deale a age e t s ste a d SAP back-office applications, Siebel Automotive has delivered significant benefits across the extended organization, including improved customer satisfaction, increased revenue and productivity, and reduced costs. By tightly integrating Siebel Automotive and its dealer management system, TATA has streamlined transactions and ensured that dealers capture customer data as a part of their normal operations. The solution provides a 360-degree view of customers to the extended organization, with appropriate visibility controls to ensure that one dealer is not privy to information from another. To further enlist dealer support, Tata Motors involved dealers throughout the solution configuration and deployment process. I teg ati g “ie el Automotive with our dealer management system ensured that our dealers would immediately see the value in the solution.  To adopt customer based measures.  To develop end to end process to serve customers with the existing products.  To maintain competitive edge in serving the customer. CUSTOMER RELATIONSHIP MANAGEMENT AT MARUTI SUZUKI. The follo i g a e the Ma uti “uzuki s philosophies for implementing CRM  To identify customer success factors.  To create customer based culture. CRM DIVISION AT MARUTI SUZUKI Divisions of Maruti Suzuki MARKETING Analytical CRM Cluster Analysis, Clustering Operational CRM Campaign Management Need Analysis Lead management complaint, Management DEALER DEVELOOPMENT Clustering Network enhancement, New dealer establishment SERVICE Customer Churning, Defection scoring Complaint management, Customer satisfaction SALES SUPPORT DIVISION Clustering Trade in promotion SALES Strategic CRM Philosophical CRM To implement CRM on Microsoft Dynamics CRM platform To identify customer success factors To create customer based culture To adopt customer based measures To develop end to end process to serve customers with the existing products To maintain competitive edge in serving the customer. CUSTOMER RELATIONSHIP MANAEMENT AT TOYOTA Improving product and work quality by listening to "Voice of the customer" is the fundamental concept behind Toyota's activities. When Toyota Motor Co., Ltd. and Toyota Motor Sales Co., Ltd. were merged in 1982 to form the new Toyota Motor Corporation, the customer assistance operations that had been carried out by various departments were unified to establish the Customer Relations Division. The entire company strives to ensure enhanced satisfaction by delivering "Voice of the customer" to the relevant departments and utilizing it to improve both customer support and the quality of our work and products. Toyota sustain their marketing strategic by implementing Lean CRM since 2003. Before this, potential customers were search information by themselves. For example, search queries, place orders, track status and so forth through the internet. However, Lean CRM serve as a Pull usto e “t ateg , he e To ota go for the customer first before they come. Lean CRM was developed by Toyota in Europe to gather customer information through customer lifecycle (Hill, G. 2006). Toyota is able to identify the fast-changing customer buying eha iou th ough the e isti g usto e s feedback. After that, they integrate the information then direct new customers to the product information they want. There are two main elements of this software. Firstly, to dete i e usto e s life le and their buying behaviour. Secondly, the strategic to target these branch of potential customers with these information. Eliminates waste Lean CRM track the customer information backward from the value stream stimulates from the past search engine. By identifying the current customer trends, Toyota is able to reduce redundant costs such unnecessary transportation, inventory, production, defects and so on. My Toyota Experience A couple of weeks ago I got a service follow up call from Toyota. We weren't satisfied completely with the service and had to schedule another appointment. The service station already knew about it when we got there and took care of our problem immediately. I always wondered how Toyota would approach lean processes with CRM and how it would work. Develop competitive decision The concept of Lean CRM is to standardise the process so that the management team is able to prepare for unexpected consequences. Consequences of the adoption Generate more sales and repurchase rate at lower cost A comparison of a recent before and after marketing campaign showed a 70 percent reduction of non-target customers being mailed, an 80 percent reduction in campaign costs, a 50 percent reduction in campaign development time and a 60 percent increase in campaign ROI. Over the e t fe ea s, To ota s Lea C‘M will contribute between $5 million and $10 million (in U.S. dollars) of additional contribution each year to the sales company. Industry Challenges: There are five major profit leaks in automobile Industry as outlined below.  Profit Leak #1: Showroom  Profit Leak #2: Phones Some dealers have a closing ratio of 15 Phone traffic is on the rise in many stores percent others close 40 percent and the which is why the phones have become the difference usually lies in the process. Sales cornerstone for man managers need to identify how many strategy. It may be time to determine if people are coming into the showroom and this component of your CRM strategy has measure how many select a car, how e o e a p ofit leak o if it s a p ofit many demo, how many write up and how opportunity. The phones, and potentially many close. To improve the odds, it helps a lack of follow up, can be the biggest to have the following:  A clearly defined and documented sales and coaching process.  A new-hire training and orientation process to bring new sales people up to speed.  A management process that will ensure that each sales person is coached and held accountable for following the sales process in the same way, regardless of who is desking the deal. profit leak because these people often call If your definition of CRM includes the need to consistently deliver a professional sales experience each and every time to each and every one of your showroom customers, you cannot stop at simply defining your process, rather, you need to hold your sales people and managers accountable for delivering that vision. deale s C‘M the dealership three or four months out in the buying cycle whereas the average sales person follows up for three or four da s. It s ofte people ou C‘M st ateg fo the ho all the deale ship a d do t set an appointment that can make the largest impact on your sales.  Profit Leak #3: Internet Dealers typically employ one of two basic models for handling non-showroom leads: Model One: Direct all phone and Internet leads to the showroom. To make this odel o k, it s ot a good idea to gi e all sales people equal access to these leads, because the nature of the phone and email communication along with the need for long term follow up require a specific vehicles, extending the buying cycle skill set that not all sales people possess. dramatically from one-three weeks to Many dealers rely on a dedicated staff eight-twelve weeks. This extended buying that and cycle has increased the need for retailers persistence to sell the appointment and to use CRM to follow-up with every the car and take the process from customer beginning to end. window of opportunity. The right CRM Model Two: Volume of Internet and tool can simplify and even automate some phone leads justifies a separate staff of your unsold follow up activities. You dedicated to selling just the appointment can have the fastest, most simple and and then turning the customer over to the efficient CRM technology on the market sales staff to sell the car once they show. today, but if you lack the skill, manpower, As a esult, the to sell process and discipline to fuel the tool with the car over the phone because their only accurate and comprehensive customer goal is to sell the appointment. The information, your entire CRM strategy will advantage is that these are people who fall flat. It s rucial to capture and record have specific skills needed to shine on the quality follow up information. To do so, phone and the time and the talent needed you need a process in place for a manager to perform long term follow-up. The to properly exit that customer and gather drawback is that they can lack the product the usto e s a e a d u knowledge that some customers are address and best time to call. Success interested in. To reduce the potential depends on where you record this drawbacks, it helps to establish criteria information and what you do with it. Does that the sales people must meet or your dealership use a good old fashioned exceed to earn the right to these high client card and filing system, do you have quality appointments with the high closing two or three showroom computers or one ratio. computer on every desk? Oddly enough, have the skills, patience e less likel to t throughout this 12-week e , e-mail regardless of the model you choose to  Profit Leak #4: Unsold Follow Up input the information, success depends on While the Internet has made it faster and how skilled your people are at asking for easier for customers to access product the information and loading it into the and the CRM tool. Most CRM strategies break manufacturers have increased the models down right there because 50-75 percent and body styles that are now available to of the data never gets loaded in. So even customers. As a result, customers are if the CRM tool did the work itself, dealers taking longer to research and buy new lose 50-75 percent of the opportunity pricing information, because the fuel never gets into the o tai engine. contact them, to uncover what they want  Profit Leak #5: Sold Follow Up the usto e s pe issio ; to to be contacted about, and to gather e- What type of customer contact during the mail addresses. The more advanced ownership experience will contribute to dealerships are doing sales CSI calls, increased service reminders and follow up, but not CSI and brand loyalty? Customers claim they prefer minimal much contact unless it is to inform them of p ospe ti g the something that benefits them. How then asking do you know what your customers want customers who bought from other dealers to know about? Most dealers need to represents huge CRM profit opportunities. more for than that. Effectively usto e s household, referrals and contacting Solution proposition industry looking forward to 1. The auto industry has recognized that it needs to build relationships with their customers beyond the average four-year upgrade cycle to the latest model, and that they cannot leave this to the dealership. Customer experience and customer relationship management become a crucial factor in succeeding here. This necessitates reinventing the whole sales process and customer relationship management. It affects both the establishment of new formats such as brand stores, pop-up stores or experience centers – or in other words, experiences outside of the dealership. In addition, this also includes new digital channels and new points of contact, such as BMW s p odu t ge ius, a e t pe of sales ad ise odeled afte Apple s ge iuses. Strategically, the result is a new map of interaction formats that are significantly different from auto experiences of the past. Here, customer relationship management involves not only to the single historic format, but it also applies to networking all new experience points (the micro vs. macro journey). Apple's geniuses also repair and diagnose its products, BMW's product geniuses will solely be on hand to explain features to car shoppers using their product knowledge and hightech demonstrations. The objective here is to better support customers with in-depth product knowledge as well as enabling the customer to better utilize and configure products in accordance with their particular needs. As the product genius needs to be mobile, he or she will be equipped with a state-of-the-art Information Management System on a tablet device, allowing, for example, product configuration and in-depth explanation of features supported by visuals and films. 2. A senior analyst at Forrester Research points out that today cars are p i a il uilt o a push a ufa tu i g prototype, making the transition to a completely customer centric / made-toorder philosophy quite tough. This is proven by the fact that when a customer walks into a showroom with a mental image of the exact car he/she wants to purchase, often, several compromises have to be made with regard to certain features or even something as basic as color. I o de to a hie e The-CRM-built- a there are two important steps which the industry needs to take forward. First of all, the manufacturing process flexibility has to be increased and secondly dealermanufacturer integration must be improvised. 3. The manufacturing process, work like paint, seating or other last-minutejobs can be delayed a little until exact customer preferences are conveyed. The biggest reason to concentrate on 'built to order' (BTO car models) is to do away with waste that occurs due to large leftover inventories. In an ideal automotive world, the manufacturer will start building the car only after getting specific orders from customers thereby leading to smart use of inventories and negligible wastage. This is the crux of CRM in the automotive industry - customer inputs kick start production. Even though this may be resisted by dealers initially, a competent CRM will make life easier for dealers compared to the existing trial and error approach to inventory. 4. CRM is going to elevate the future of the automotive industry. With properly implemented CRM initiatives, the future will encounter automotive web sites making adjustments according to customer profiles and preferences. It will also e ha e o pa ies a ilities to achieve better purchase cycle intimacy when customer engagements move from the web into home entertainment hubs. 5. Successful automotive CRM systems will harness crucial customer feedback and data will flow back to dealers and manufacturers, thus enabling them to design the correct follow up campaigns to seal the gap between sales and marketing. Good CRM means better multi-channel access and transparency with regard to offers, quotes and pricing. Tight dealer-manufacturer integration is also essential to avoid information overload and inconsistent customer details while collaboratively optimizing strategies and products. 6. Another critical factor for CRM success in the automotive industry is capturing a holistic picture of its leads, customers, partners and vendors. Social CRM is that tool which can be used across teams to sieve through comments and profiles thereby allowing careful and accurate analysis of new trends and customer expectations from Twitter, Pinterest, LinkedIn and more.  oresee demand - The automotive industry faces an ongoing issue of accurate demand measurement, the solution to which is not just technological. Sometimes, certain options in cars are not even offered to customers, as a result of which gauging the demand for it is out of the question. Through a comprehensive CRM solution F which incorporates social CRM, sales reps can make note of customer requirements/ interests and establish links between features and specific customer demands while simultaneously tracking competitors' offerings. This can then be put forth to the manufacturer for consideration. However, this is only effective with high user adoption.  rack open activities - Customers often have strict preferences with regards to when they want to be contacted by sales people and often request pertinent written material/ reviews/ catalogues prior to further discussions or negotiations. This information and related tasks can be captured in the CRM system for each customer in the database, making it available through a central repository. In addition, escalation rules can be customized to ensure efficient follow-ups.  uto-populate campaign participants Connections between customers and marketing programs can be established through an effective CRM solution customer names can pop up against a particular marketing program or a specific segment can be suggested to optimize lead generation.  alculate ROI for new initiatives - Integrate with multiple systems and collate expenses and outcomes of various vendor/ dealer related marketing activities and incentives on a single CRM software to ensure accurate calculation of return on investment (ROI). 7. RIse of Telematics Post-purchase, another interactive technology — vehicle-based telematics — can help automotive marketers comprehend the intricacies of the ownership experience. Telematics are the wireless devices that seamlessly capture and communicate vehicle data, enabling the automotive marketer to understand the dri e s usage e ui e e ts, i flue e T downstream services, and facilitate remarketing. Telematics, whose use is growing, allow vehicle relationship management to buttress customer relationship management. Tele ati s appli atio s like GM s O “ta system return vehicle and customer data to companies, which enable them to shape concierge and maintenance services for individual customers. 8. Latest innovation : Honda has launched Honda Connect, A which is an information platform exclusively made for the Indian market. This new app helps customers connect with their car, family and Honda itself. The app is available on both Android and iOS platforms. It comes with various useful functions that adds to the convenience of a Honda owner and makes one feel safe and C connected. One just has to plug in the device from any Honda dealership which is initially available for Rs. 2999/- for the first 20,000 devices with 1 month free subscription. Once the device is plugged in, the owner needs to download he app on his smart phone and enter the vehicle details including VIN number and engine number. Nowi you will get updates from Honda regarding the vehicle's maintenance and you can also schedule an online service appointment and check history of each maintenance action. You will get regular updates about the new products and campaigns offered by Honda and a direct medium of giving a feedback about your ownership. There is a manual SOS feature that one can use under emergency situations and the system lets your friends and family know the vehicle's location. Pit stops feature shows a list of fuel stations and Honda dealers on the map. There is an insurance and PUC renewal feature that reminds you to keep your car documents up to date. The document wallet stores the copies of your car papers. There is a nifty fuel log function as well through which you can record your fuel economy and money spent on refueling the car. The Connected Device has sensors that measures the car's 3D orientation which can detect an impact. This impact alert feature informs the HCIL's 24×7 helpline and they generate an assistance call to the customer along with detecting the location to provide help. The system is basically connected with cloud and dealers so that each aspect of the car is being monitored in real time. You can also locate your Honda car through this app if you forgot where you parked the car. The Honda Connect app also has a trip analysis function that helps the owner keep a tab on the driver or children. It will provide information about the driving behavior with the help of statistics including route taken, average speed, hard braking and idling time. Through your phone you can check your car's health anytime which includes battery status, engine status and so on. All in all it is a very useful system that gives the owner a piece of mind and women in India a sense of safety while driving at night. The Honda Connect Device can be installed at any dealership pan India. The new platform is developed by Minda i-Connect, which is also involved in developing many more automobile related systems. The new system is currently being offered exclusively to new customers of Honda Jazz, City and CR-V. People who own the current generation of Honda cars can install the device but older generation Honda owners won't be able to use this device. Thus, this app is the future of CRM solution which is a way to address most of the issues faced by the customers with a solution easy to adapt. 9. Revolutionizing ways of working and communicating Toyota uses Chatter to enable hundreds of thousands of staff across the world to interact with each other at any hour of the day—revolutionizing the way they work. Employees can post questions and get advice and answers from coworkers based in 170 countries around the world. Rather than each individual office working on their own to solve problems and develop documentation, Chatter allows everything to be shared. This is a way to improve internal CRM, which could result in better environment of learning and sharing, thus, increasing employee retention, satisfaction and high performance delivery. 10. With changing demographics of people, it is the need of the hour to validate the existing records in the database i.e. monitoring the authenticity or validity of records. Ex: address and phone number of customers are subjected to change over period of time. Hence, need to validate the huge database. Hundai CRM challenges and future implementation 1. Customer segmentation not done:  The mechanism selected by the company to shortlist key customer accounts does not seem effective.  Time period from June- August is selected for shortlisting these key customers. Whosoever buys a car in this period, whichever model or variant it may be, they become gold customer, from whom company asks for valuable suggestion that customers would like the company to implement. This sample may not be representative of the population. 2. Governance structure unclear:  All the departments should be clear on their roles regarding customer relations  Train personnel of various departments on key customer issues and empowering them to take decisions on the same rather than coordinating all the issues via the CRM department. 3. Documentation evidence unavailable for ideal customer experience creations:  Success stories on creation of good customer experience needs to be documented as best practices/Learnings for common reference (Knowledge sharing portal)  Ideal customer service need to be designed on a per customer basis. 4. Formulation of Internal CRM:  Nothing to address internal grievances of employees against company policies  The company conduct a meeting on a periodic basis to monitor the various aspect of operations. But they lack proper measures to address enhancement suggestions from different internal customers (employees). 5. Instant identification of key owners to problems faced by customers:  Tickets raised by various customers need to be resolved more effectively and efficiently  The validation, delegation and resolution of tickets need to become more responsive (incorporation of BI systems) 6. Lack of integration of CRM upstream and downstream:  Integration of CRM of Hyundai and its vendors need to be done  Also, need to integrate the CRM across dealers to obtain an automatic reorder feature to ensure better availability of spare parts and avoid stock outs. 7. cope of automation of customer reports need to be designed within the current ERP software:  he CRM department of each dealer shares reports to the head office on a periodic basis ( monthly, weekly)  or the above to be done, they do not have a proper report mechanism in their ERP that is implemented. Thus, need to get that implemented which could help them generate automated reports on the move and avoid making their own formats manually. 8. ustomer data has not been validated at different intervals:  he company needs to validate the customer data present in their database  For doing the same, CRM department of every dealer is empowered to employ few personnel to make these validations (either S T F C T telephonic, mailers or personal visits to the existing address) 9. uture roadmap for CRM is not defined:  The company does not have a future CRM plan  If so ever they have one, the same has not been shared across dealership network. If Ffuture CRM implementation plan is shared with employees, it could shape them accordingly for future challenges. References: Interview with Smita RATH CRM manager at Utkal hundai Gartmer.com http://www.hyundai.com/in/en/Main/index.html http://www.marutisuzuki.com/ http://www.toyotabharat.com/ Yahoo finance