Unit II Retail Strategy

Retail Market Strategy

It is a plan designed by a retail organization on how the business intends to offer its products
and services to the customers. There can be various strategies such as merchandise strategy,
own-brand strategy, promotion strategy, to name a few.

A retail strategy includes identification of the following −

 The retailer’s target market.

 Retail format the retailer works out to satisfy the target market’s needs.

 Sustainable competitive advantage.

Strategies for Effective Market Segmentation

For effective market segmentation, the following two strategies are used by the marketing
force of the organization –

Concentration (Niche) Strategy

Under this strategy, an organization focuses going after large share of only one or very few
segment(s). This strategy provides a differential advantage over competing organizations
which are not solely concentrating on one segment.

For example, Toyota employs this strategy by offering various models under hybrid vehicles market.

Multi-segment Strategy

Under this strategy, an organization focuses its marketing efforts on two or more distinct
market segments.

For example, Johnson and Johnson offers healthcare products in the range of baby care, skin care,
nutritionals, and vision care products segmented for the customers of all ages.

Strategies for Market Penetration

Market penetration strategies include the following −

Price Penetration

It is setting the price of the product or service lesser than that of the competitor’s product or service.
Due to decreased cost, volume may increase which can help to maintain a decent level of profit.

Aggressive Promotion

Increasing product or service promotion on TV, print media, radio channels, e-mails, pulls the
customers and drives them to view and avail the product or service. By offering discounts,
various buying schemes along with the added benefits can be useful in high market
penetration.

High Product Distribution

By distributing the product or service up to the level of saturation helps penetration of market
in a better way. For example, Coca Cola has a very high distribution and is available
everywhere from small shops to hypermarkets.

Growth Strategies

If a retail organization conducts SWOT Analysis (Strength, Weakness, Opportunity, Threat)

before considering growth strategies, it is helpful for analyzing the organization’s current
strategy and planning the growth strategy.

Ansoff’s Matrix

An American planning expert named Igor Ansoff developed a strategic planning tool that
presents four alternative growth strategies. On one dimension there are products and on the
other is markets.

This matrix provides strategies for market growth. Here is the sequence of these strategies −
  Market Penetration− Company focuses on selling the existing products or services
in the existing market for higher market share.

 Market Development− Company focuses on selling existing products or services to

new markets or market segments.

 Product Development− Company works on innovations in existing products or

developing new products for the existing market.

 Diversification− Company works on developing new products or services for new markets.

Financial Strategy
The price at which the product is sold to the end customer is called the retail price of the
product. Retail price is the summation of the manufacturing cost and all the costs that
retailers incur at the time of charging the customer.
 Factors Influencing Retail Prices

Retail prices are affected by internal and external factors.

Internal Factors

Internal factors that influence retail prices include the following −

 Manufacturing Cost− The retail company considers both, fixed and variable costs of
manufacturing the product. The fixed costs does not vary depending upon the
production volume. For example, property tax. The variable costs include varying
costs of raw material and costs depending upon volume of production. For example,
labor.

 The Predetermined Objectives− The objective of the retail company varies with
time and market situations. If the objective is to increase return on investment, then
the company may charge a higher price. If the objective is to increase market share,
then it may charge a lower price.

 Image of the Firm− The retail company may consider its own image in the market.
For example, companies with large goodwill such as Procter & Gamble can demand a
higher price for their products.

 Product Status− The stage at which the product is in its product life cycle determines
its price. At the time of introducing the product in the market, the company may
charge lower price for it to attract new customers. When the product is accepted and
established in the market, the company increases the price.

 Promotional Activity− If the company is spending high cost on advertising and sales
promotion, then it keeps product price high in order to recover the cost of investments.

External Factors

External prices that influence retail prices include the following −

 Competition− In case of high competition, the prices may be set low to face the
competition effectively, and if there is less competition, the prices may be kept high.

 Buying Power of Consumers− The sensitivity of the customer towards price

variation and purchasing power of the customer contribute to setting price.

 Government Policies− Government rules and regulation about manufacturing and

announcement of administered prices can increase the price of product.

 Market Conditions− If market is under recession, the consumers buying pattern

changes. To modify their buying behavior, the product prices are set less.
  Levels of Channels Involved− The retailer has to consider number of channels
involved from manufacturing to retail and their expectations. The deeper the level of
channels, the higher would be the product prices.

Demand-Oriented Pricing Strategy

The price charged is high if there is high demand for the product and low if the demand is low. The
methods employed while pricing the product on the basis of demand are −

 Price Skimming− Initially the product is charged at a high price that the customer is
willing to pay and then it decreases gradually with time.

 Odd Even Pricing− The customers perceive prices like 99.99, 11.49 to be cheaper than 100.

 Penetration Pricing− Price is reduced to compete with other similar products to

allow more customer penetration.

 Prestige Pricing− Pricing is done to convey quality of the product.

 Price Bundling− The offer of additional product or service is combined with the main
product, together with special price.

Cost-Oriented Pricing Strategy

A method of determining prices that takes a retail company’s profit objectives and production
costs into account. These methods include the following −

Cost plus Pricing − The company sets prices little above the manufacturing cost. For
example, if the cost of a product is Rs. 600 per unit and the marketer expects 10 per cent
profit, then the selling price is set to Rs. 660.

Mark-up Pricing − The mark-ups are calculated as a percentage of the selling price and not
as a percentage of the cost price.

The formula used to determine the selling price is −

Selling Price = Average unit cost/Selling price

Break-even Pricing − The retail company determines the level of sales needed to cover all the
relevant fixed and variable costs. They break-even when there is neither profit nor loss.

For example, Fixed cost = Rs. 2, 00,000, Variable cost per unit = Rs. 15, and Selling price = Rs. 20.

In this case, the company needs to sell (2,00, 000 / (20-15)) = 40,000 units to break even the
fixed cost. Hence, the company may plan to sell at least 40,000 units to be profitable. If it is
not possible, then it has to increase the selling price.
The following formula is used to calculate the break-even point −

Contribution = Selling price – Variable cost per unit

Target Return Pricing − The retail company sets prices in order to achieve a particular Return On
Investment (ROI).

This can be calculated using the following formula −

Target return price = Total costs + (Desired % ROI investment)/Total sales

in units For example, Total investment = Rs. 10,000,

Desired ROI = 20 per

cent, Total cost =

Rs.5000, and

Total expected sales = 1,000 units

Then the target return price will be Rs. 7 per unit as shown below −

Target Return Price = (5000 + (20% * 10,000))/ 1000 = Rs. 7

This method ensures that the price exceeds all costs and contributes to profit.

Early Cash Recovery Pricing − When market forecasts depict short life, it is essential for
the price sensitive product segments such as fashion and technology to recover the
investment. Sometimes the company anticipates the entry of a larger company in the market.
In these cases, the companies price their products to shorten the risks and maximize short-
term profit.

Competition-Oriented Pricing Strategy

When a retail company sets the prices for its product depending on how much the competitor
is charging for a similar product, it is competition-oriented pricing.

 Competitor’s Parity− The retail company may set the price as close as the giant
competitor in the market.

 Discount Pricing− A product is priced at low cost if it is lacking some feature than the
competitor’s product.
Differential Pricing Strategy

The company may charge different prices for the same product or service.

 Customer Segment Pricing− The price is charged differently for customers from
different customer segments. For example, customers who purchase online may be
charged less as the cost of service is low for the segment of online customers.

 Time Pricing− The retailer charges price depending upon time, season, occasions,
etc. For example, many resorts charge more for their vacation packages depending on
the time of year.

 Location Pricing− The retailer charges the price depending on where the customer is
located. For example, front-row seats of a drama theater are charged high price than
rear- row seats.

Retail Location

Silicon valley is a mindset; not a location.

− Reid Hoffman (Co-Founder, LinkedIn)

Before visiting a mall or a shop, the first question that arises in consumers’ mind is, “How far
do I have to walk/drive?”

In populous cities such as Mumbai, Delhi, Tokyo, and Shanghai to name a few, consumers
face rush- hour traffic jams or jams because of road structure. In such cases, to access a retail
outlet to procure day-to-day needs becomes very difficult. It is very important for the
consumers to have retail stores near where they stay.

Importance of Location in Retail Business

Retail store location is also an important factor for the marketing team to consider while setting
retail marketing strategy. Here are some reasons −

 Business location is a unique factor which the competitors cannot imitate. Hence, it
can give a strong competitive advantage.

 Selection of retail location is a long-term decision.

 It requires long-term capital investment.

 Good location is the key element for attracting customers to the outlet.

 A well-located store makes supply and distribution easier.

 Locations can help to change customers’ buying habits.

Trade Area: Types of Business Locations

A trade area is an area where the retailer attracts customers. It is also called catchment area. There
are three basic types of trade areas −

Solitary Sites

These are single, free standing shops/outlets, which are isolated from other retailers. They are
positioned on roads or near other retailers or shopping centers. They are mainly used for food
and non-food retailing, or as convenience shops. For example, kiosks, mom-andpop
stores (similar to kirana stores in India).

Advantages − Less occupancy cost, away from competition, less operation restrictions.

Disadvantages − No pedestrian traffic, low visibility.

Unplanned Shopping Areas

These are retail locations that have evolved over time and have multiple outlets in close
proximity. They are further divided as −

 Central business districts such as traditional “downtown” areas in cities/towns.

 Secondary business districts in larger cities and main street or high street locations.
  Neighborhood districts.

 Locations along a street or motorway (Strip locations).

Advantages − High pedestrian traffic during business hours, high resident traffic, nearby transport
hub.

Disadvantages − High security required, threat of shoplifting, Poor parking facilities.

Planned Shopping Areas

These are retail locations that are architecturally well-planned to provide a number of outlets
preferably under a theme. These sites have large, key retail brand stores (also called “anchor
stores”) and a few small stores to add diversity and elevate customers’ interest. There are
various types of planned shopping centers such as neighborhood or strip/community centers,
malls, lifestyle centers, specialty centers, outlet centers.
Advantages − High visibility, high customer traffic, excellent parking facilities.

Disadvantages − High security required, high cost of occupancy.

Factors Determining Retail Locations

The marketing team must analyze retail location with respect to the following issues −

 Size of Catchment Area− Primary (with 60 to 80% customers), Secondary (15 to

25% customers), and Tertiary (with remaining customers who shop occasionally).

 Occupancy Costs− Costs of lease/owning are different in different areas, property

taxes, location maintenance costs.

 Customer Traffic− Number of customers visiting the location, number of private

vehicles passing through the location, number of pedestrians visiting the location.

 Restrictions Placed on Store Operations− Restrictions on working hours, noise

intensity during media promotion events.

 Location Convenience− Proximity to residential areas, proximity to public transport facility.

Steps to Choose the Right Retail Location

A retail company needs to follow the given steps for choosing the right location −

Step 1 – Analyze the market in terms of industry, product, and competitors − How old is
the company in this business? How many similar businesses are there in this location? What
the new location is supposed to provide: new products or new market? How far is the
competitor’s location from the company’s prospective location?

Step 2 – Understand the Demographics − Literacy of customers in the prospective location, age
groups, profession, income groups, lifestyles, religion.

Step 3 – Evaluate the Market Potential − Density of population in the prospective location,
anticipation of competition impact, estimation of product demand, knowledge of laws and
regulations in operations.

Step 4 – Identify Alternative Locations − Is there any other potential location? What is its cost of
occupancy? Which factors can be compromised if there is a better location around?

Step 5 – Finalize the best and most suitable Location for the retail outlet.

Measuring the Success of Location

Once the retail outlet is opened at the selected location, it is important to keep track of how
feasible was the choice of the location. To understand this, the retail company carries out two
types of location assessments −

Macro Location Evaluation

It is conducted at a national level when the company wants to start a retail business internationally.
Under this assessment, the following steps are carried out −

 Detailed external audit of the market by analyzing locations as macro environment

such as political, social, economic, and technical.

 Most important factors are listed such as customer’s level of spending, degree of
competition, Personal Disposable Income (PDI), availability of locations, etc., and
minimum acceptable level for each factor is defined and the countries are ranked.

 The same factors listed above are considered for local regions within the selected
countries to find a reliable location.
 Micro Location Evaluation

At this level of evaluation, the location is assessed against four factors namely −

 Population− Desirable number of suitable customers who will shop.

 Infrastructure− The degree to which the store is accessible to the potential customers.

 Store Outlet− Identifying the level of competing stores (those which the decrease
attractiveness of a location) as well as complementary stores (which increase
attractiveness of a location).

 Cost− Costs of development and operation. High startup and ongoing costs affect the
performance of retail business.

Retail franchising means partnering with a well-known brand to run your own store using their proven
methods and support systems. This type of business, called a retail franchise, lets you use the brand’s
name and follow their guidelines for success. Retail franchise management involves sticking to the
brand's standards and benefiting from their training and marketing help. In short, franchising in retail
management helps you run a successful store with ongoing support from a trusted brand.

Benefits of starting a franchise

Established brand recognition: Jumpstart your business with immediate trust and familiarity among
customers. Starting with a recognized brand gives you a head start in attracting and retaining clientele
in the retail franchising world.

Proven business model: Benefit from a pretested blueprint for success. Franchises provide a roadmap
based on what works, significantly reducing the trial-and-error phase of starting a new business. This
highlights the essence of retail franchising meaning.

Training and ongoing support: Receive comprehensive training and continuous assistance from the
franchisor. This guidance covers operational aspects, marketing strategies, and troubleshooting,
ensuring you’re well-equipped for success in retail franchise management.

Economies of scale: Access better pricing, resources, and suppliers due to the collective buying power
of the franchise network. This advantage allows you to operate more cost-effectively compared to
individual businesses.

Marketing assistance: Tap into national or regional marketing campaigns the franchisor runs. This
support helps you reach a wider audience without bearing the entire advertising cost, driving more
traffic to your store. Staying ahead in the market without heavy investment in research and
development is a key benefit of franchising in retail management.

Reduced risk: Retail franchising typically involves lower failure rates compared to independent
startups. The proven track record and support from the franchisor minimize the inherent risks of
entrepreneurship.
Faster start–up time: Benefit from a streamlined process thanks to the franchisor’s established
systems and procedures. This expedites the time it takes to open and operate your store, making it a
practical retail franchising example.

Exit strategy and resale value: Enjoy a potentially higher resale value and a structured market for
selling your business. Franchises often have a more defined resale process, making it easier to exit
when needed.

Be your own boss: Running a retail franchise lets you be the boss but with a lot of help and knowledge
from the franchise. You still work hard, but you get to choose your schedule and have more control
over your career. It’s like having your own business but with less risk.

Retail franchising models

Retail franchising offers various models for entrepreneurs to run their own stores under established
brands, each with unique benefits and responsibilities. Understanding these models provides insight
into how retail franchise management can lead to success in the franchise retail industry.

Unit franchise model: This is like opening your own standalone store using the brand and systems of a
larger company. You run the show, but you’re part of a bigger network. It’s a bit like owning a single,
independent coffee shop that’s part of a renowned chain.

Master franchise model: Here, you become a mini-franchisor. You’re not just opening one store;
you’re responsible for developing an entire territory. You can sell unit franchises within this territory
and help these owners set up and run their stores. It’s akin to owning multiple coffee shops across a
region.

Manufacturer retail franchise model: This involves selling products of a particular brand. It’s like
having a dedicated corner in your shop for a famous coffee brand’s products. You’re not fully under
their umbrella, but you benefit from their established reputation, which is a unique aspect of franchise
retail.

Conversion franchise model: This involves converting an existing independent business into a
franchise of a larger brand. The business retains its identity but operates under the umbrella of the
franchise, gaining access to the brand, systems, and support. It’s like allowing a local cafe to become
part of a well-known coffee chain while keeping its unique flavour and style.

Multi-unit franchise model: In the multi-unit franchise model, owners manage multiple outlets of the
same brand within a specified area. It’s like overseeing several coffee shops across a city under the
same brand, which requires efficient retail franchise management.

Area development franchise model: The area development franchise model grants an individual or
entity the right to open and operate multiple units within a specific geographical area. It’s similar to
being given the keys to expand a brand across a region, taking charge of growth and establishment.

How to get started with retail franchising

Starting a retail business, whether it’s a retail franchise or an independent venture, demands careful
planning and consideration.

1. Discover your passion: Think about the type of retail business that aligns with your skills and
interests. Whether it’s food, clothing, or furniture, understanding your strengths is like finding the
perfect canvas for your masterpiece in retail franchising.
 2. Analyze local demand: To understand what businesses thrive in the area, study the local market.
Adapting to the climate, culture, and preferences of your community is crucial. It’s like selecting the
right colours for your canvas—a blend that resonates with your audience, making it a successful retail
franchise example.

3. Assess financial capacity: Determine your investment capacity. This helps align your ambitions
with reality. Consider not just franchise fees but also costs for store setup, inventory, staffing, rent, and
other essentials.

4. Seek guidance from experts: Consulting legal and financial advisors is like having wise mentors
guiding you through rough terrain. They help you navigate complex terms in the agreement and ensure
you’re making a wise investment. It’s like having a seasoned traveller showing you the best routes to
take in franchising in retail management.

5. Research franchise opportunities: Explore databases of franchise opportunities online. These

platforms offer insights into initial investment requirements, operational costs, the franchise’s history,
and its fit within the retail sector. Think of it as browsing through a gallery of potential artworks to find
the perfect fit for your vision.

6. Plan your path: Create a solid business plan to plot a course for your journey. Define your goals,
strategies, and timelines. This roadmap keeps you focused and on track throughout your retail
franchising expedition.

7. Ready, set, go: Starting a retail franchise involves finding the sweet spot between your passion,
local demand, and financial capacity. It’s about identifying the canvas that resonates with your
interests, aligns with community needs, and fits within your budget.

Checklist before signing a franchise agreement

Before signing a retail franchise agreement, it's essential to thoroughly understand the terms and ensure
you're prepared for the commitment. This checklist highlights key aspects of retail franchise
management.

 Read the paperwork carefully: Understand all the rules and costs in the papers they give you.
 Check your money: Make sure you can afford everything they’re asking for.
 Talk to other owners: Ask people who already own this franchise about their experiences.
 Know your area: Understand where your shop will be and if others can open nearby.
 Get legal help: Ask a lawyer to look at the agreement to make sure it’s fair.
 Ask about help and learning: Check what support the company will give you to run the shop.
 Research what you need to do: Understand what you have to sell and how much you need to make to
be successful.
 See how to stop: Find out how you can leave, if you need to, and what happens if you want to sell the
shop.
 Think about the brand: Check if people like the brand and if it’s popular.
 Listen to your feelings: If something doesn’t seem right, ask more questions before you agree.
 How do retail franchises work?

Retail franchising allows entrepreneurs to partner with established brands, using their names, products,
and methods to run their own stores.

Partnership setup: When someone wants to start a store but doesn’t want to create a brand from
scratch, they team up with an existing brand through retail franchising.

Brand sharing: The store owner (franchisee) uses the brand’s name, products, and methods. People
trust the brand, so they’re likely to visit the store. This is a key retail franchising example.

Following the rules: The store owner follows rules set by the brand (franchisor). These rules keep
things consistent across all stores. It’s like a recipe—everyone follows it to make the same dish taste
great everywhere, which is essential in retail franchise management.

Support system: The brand helps the store owner with training, marketing, and sometimes finding the
right location. It’s like having a coach guiding you through the business game.

Business growth: As the store grows, the franchisee pays a part of their sales or a fixed fee to the
brand. This helps the brand grow, too.

Win-win situation: Both the brand and the store owner benefit. The brand expands without opening
every store, and the store owner gets a trusted name and support to run their business. This mutual
benefit is a hallmark of franchise retail.

How to choose the best retail franchise

Market research: Understanding the market’s demands and trends is crucial. Analyzing consumer
behaviour, preferences, and local market gaps helps identify sectors with high growth potential, which
is essential in retail franchising.

Brand reputation: While not mentioning specific brands, considering the reputation and reliability of
the franchisor is vital. Opt for a franchise with a strong track record, robust support systems, and a
proven business model.

Franchise costs: Assessing initial investment requirements, including franchise fees, setup costs, and
ongoing royalties, is key. Ensure these costs align with your budget and financial capacity to ensure
successful retail franchise management.

Training and support: Evaluate the training and ongoing support provided by the franchisor. A retail
franchise offering comprehensive training programs, operational support, and marketing assistance
enhances the chances of success.

Location and territory: Consider the territory or location rights offered by the franchise. Ensure it
aligns with your business goals and allows for exclusivity or territorial rights within a suitable area.
This is critical in franchise retail.

Franchise agreement: Carefully review the franchise agreement, seeking legal advice if necessary.
Understand the terms, obligations, restrictions, and rights to make an informed decision.
 Profitability and ROI: Assess the franchise’s potential for profitability. Analyze the average return on
investment (ROI) and understand the expected timeline for profitability.

Adaptability and innovation: Look for franchises that encourage innovation and allow some degree
of adaptability. Being able to customize offerings to local tastes while adhering to the brand’s
principles can be advantageous in retail franchising.

Networking and community: Consider the network and community offered by the franchisor. A
supportive network of fellow franchisees can offer insights, guidance, and a sense of belonging,
enhancing your experience in retail franchise management.

Key factors for successful retail franchising

 Brand consistency: Make sure all stores look and feel the same. This helps customers know and trust
the brand wherever they shop.
 Smooth store operations: Running the store smoothly, from stocking shelves to helping customers, is
vital for a successful business.
 Customer-centric approach: Put customers first by understanding what they want and giving them
great service. Happy customers keep coming back.
 Support from partners: Good teamwork between the brand and the store owner, with guidance and
help, helps the store do well.
 Local adaptation: Change products or services a bit to fit what people in the area like. It helps the
store connect better with local customers.
 Strategic growth: Thinking smartly about growing the business, much like planning how to make the
store better, sets things up for long-term success.
 CRM (customer relationship management)

CRM (customer relationship management) is the combination of practices, strategies and technologies
that companies use to manage and analyze customer interactions and data throughout the customer
lifecycle. The goal is to improve customer service relationships and assist with customer retention and
drive sales growth.

CRM systems compile customer data across different channels and points of contact between the
customer and the company. These can include the company's website, telephone, live chat, direct mail,
marketing materials and social networks. CRM systems can also give customer-facing staff detailed
data on customers' personal information, purchase history, buying preferences and concerns.

Why CRM benefits businesses

The benefits of CRM systems apply to all types of organizations, ranging from small businesses to
large corporations. They include the following:

 Enhanced customer service. Having customer information, such as past purchases and interaction
history, easily accessible helps customer support representatives provide better and faster customer
service.

 Trend spotting. Collection of and access to customer data let businesses identify trends and
insights about their customers through reporting and visualization features.

 Automation. CRM systems can automate menial, but necessary, sales pipeline and customer
support tasks.

Components of CRM

At the most basic level, CRM software consolidates customer information and documents it into a
single CRM database. This lets business users more easily access and manage that information.

THIS ARTICLE IS PART OF

What is customer experience management (CXM)? Ultimate guide

 Which also includes:
 7 must-have skills for customer experience professionals

 How do companies protect customer data?

 10 top customer experience certification programs

Over time, additional functions have been added to CRM systems to make them more useful. Some of
these functions include recording various customer interactions over email, phone, social media and
other channels. Automation capabilities have been added to many CRM systems, automating various
workflow automation processes, such as tasks, calendars and alerts. Other CRM features enable
managers to track performance and productivity based on information logged within the system.

Common components and capabilities of CRM systems include the following:

 Marketing automation. CRM tools with marketing automation capabilities automate repetitive
tasks to enhance marketing efforts at different touchpoints in the lifecycle for lead generation. For
example, as sales prospects come into the system, it might automatically send email marketing
content with the goal of turning a sales lead into a full-fledged customer.

 Sales force automation. These tools track customer interactions and automate certain business
functions of the sales cycle. Sales force automation tools target sales functions where it's necessary
to follow leads, obtain new customers and build customer loyalty.

 Contact center automation. Designed to reduce tedious aspects of a contact center agent's
job, contact center automation includes prerecorded audio that assists in customer problem-solving
and information dissemination. Various software tools that integrate with the agent's desktop tools
can handle customer requests to cut down the length of calls and streamline customer service
processes. Automated contact center tools, such as chatbots, can improve customer user
experiences.

 Geolocation technology, or location-based services. Some CRM systems include technology that
creates geographic marketing campaigns based on customers' physical locations, sometimes
integrating with popular location-based Global Positioning System (GPS) apps. Geolocation
technology is also used as a networking or contact management tool to find sales prospects based
on a location.

 Workflow automation. CRM systems help companies optimize business processes by

streamlining mundane workloads, enabling employees to focus on high-level and creative tasks that
help them close deals.

 Lead management. Sales leads can be tracked through a CRM platform, enabling sales teams to
input, track and analyze data for leads in one place.

 Human resources (HR) management. CRM systems help track employee information, such as
contact information, performance reviews and benefits within a company. This enables the HR
department to more effectively manage the internal workforce.
 Analytics. CRM analytics examines user data to create targeted marketing campaigns that can
increase customer satisfaction rates.

 Artificial intelligence (AI). AI technologies, such as Salesforce Einstein, have been built into
CRM platforms to automate repetitive tasks, identify customer-buying patterns and predict future
customer behaviors.

 Project management. Some CRM systems include features to help users track client project
details, such as objectives, strategic alignment, processes, risk management and progress.

 Integration with other software. Many systems integrate with other software, such as call center
and enterprise resource planning systems.