CU - BCOM Sem VI -CRM

["Image source Successful service recovery should restore the customer\u2019s trust, increase customer attention, and drive brand awareness. There have even been studies into it. James L. Heskett and Christopher W. Hart wrote \u2018The Profitable Art of Service Recovery\u2019, which investigates service recovery and how it can actually be useful to businesses. What is the service recovery paradox? The service recovery paradox is when a customer thinks more highly of your business once the problem has been rectified. And it is a situation that you can use to your advantage. This theory means that even when a customer experiences service failure if you recover the situation well enough, customers will be more loyal than they ever were before. There are, however, a couple of conditions. Gen2erally, the paradox applies to smaller, easier to sort issues. For example, if a customer compl0ains because a cafe has overcharged them for 1","their coffee, and as a gesture of goodwill the cafe refunds them and also offers them a free snack for the inconvenience. But, for bigger problems, such as password security breaches, dissatisfied customers aren\u2019t as quick to forgive and forget. Not only this, but the paradox is also less likely to apply if the situation could have been solved with better planning. If the problem was reasonably foreseeable, customers tend to have a smaller capacity for acceptance. For example, when an airline oversells the seats on the flight leaving some very angry holidaymakers stranded at the airport waiting for the next available plane. Here\u2019s a graph demonstrating this: Image source The two approaches to service recovery When service recovery is part of your business plan there are two ways to look at it. Here are the main approaches to the profitable art of service recovery: Identify the problem before it reaches the contact centre Prevention is often regarded as the best solution. But when the problem can\u2019t be prevented, there\u2019s still time to rectify the situation through service recovery. This approach is all about minimising the number of customers that call the contact centre. 2 0 2","Businesses may want to limit this for various reasons. From ensuring the contact centre isn\u2019t overwhelmed, to streamlining calls so the most important customer issues are resolved with an agent. So, how can the customer\u2019s problem be identified before it reaches the contact centre? Utilising technology is vital. Take Microsoft, for example. Sometimes a sasser computer virus \u2013 a type of software worm \u2013 can affect their operating systems. If customers have an issue with this, the quickest way to solve it is self-diagnosis and recovery steps, which can be done on their website. It\u2019s not always necessary to call the contact centre. Similarly, using tools like RingCentral is one way to ensure customer concerns are addressed quickly. With their Inbound Contact Centre system, customer service agents are on hand to help with customer concerns 24\/7 through live chats, messaging, and social media interactions. You can also use \u2018proactive customer service\u2019, whereby you inform the customer of a problem before it\u2019s happened. For example, if a train operator suspects the next train will be arriving late, they can send customers an SMS message informing them. Use service recovery to retain customers This approach may not work for every business because it involves the service recovery paradox. Essentially, this means that if your customer experience fails but you\u2019re able to recover the problem with great customer service, your customers remain loyal. But, this doesn\u2019t mean that you should allow the problem to happen. It means that should it happen, you have all the necessary measures in place to minimise damage and keep customers as happy as possible. To ensure this is the case, your contact centre must be robust and supported with skilled agents. Importance of service recovery Here\u2019s a look at all of the ways service recovery is important for businesses: Reduces negative reputation As a business, particularly a customer-facing one, your reputation is incredibly important. You want to be able to entice new customers with your excellent customer experience reputation, as well as retain existing ones. By implementing service recovery strategies, you\u2019re actively taking steps to ensure your customers are satisfied, even when something goes wrong. For businesses of any size, word- of-mouth can greatly affect your reputation, but especially for small or local businesses that rely on recommendations and positive reviews. Service recovery is vital for reducing a customer\u2019s negative experience. Increases customer retention Service recovery is important for customer retention. As a brand, building a solid customer relationship is one of the best things you can do. This way, customers feel as though they have an emotional connection to your business2, and are more likely to stay loyal. Even in 0 times when you let them down. 3","When brands are known for transparency as part of their customer experience, nearly 9 in 10 people are more likely to give them second chances after bad experiences. And 85% are more likely to stick with them during crises. By using service recovery, you are ensuring all customer needs are met, especially when there\u2019s a fault in your service standards. Higher lifetime value profitability Because service recovery increases customer retention, it means that those customers whose needs have been met have a higher lifetime value. A loyal customer is more likely to repurchase and support a business if they trust the brand. In fact, after building a relationship with customers, their spend grows alongside trust. Eventually, they spend 57% more with brands they are loyal to. This highlights why customer lifetime value is so important to a business, because when customers are well looked after, the business benefits. Lowers business costs By fixing customer complaints as early on as possible, you\u2019re reducing the number of customers that need help from agents at your contact centre. Offering customer assistance virtually means fewer calls are handled, therefore, business costs are reduced. Also, you can analyse calls and investigate ways you can improve your business processes. This way, you\u2019re able to prevent those problems from happening in the first place. Tools such as RingCentral can help with call analytics, as it gives you real-time insights into calls as well as the option to conduct customer surveys. Steps for a successful service recovery plan There are a few key steps to consider when drafting a successful service recovery plan: 1.Be proactive Analyse customer journeys to see where problems may arise. This can help you prevent them in future. To do this, look into your website and social media analytics, conduct customer surveys, and speak to your contact centre team to determine the problems that occur most often. You should also reach out to customers and ask them if they\u2019re experiencing any issues. For example, like when you\u2019re at a restaurant and the waiter asks if everything is okay with your food. This is the first step in a successful recovery plan, finding the issues and trying to quash them before they grow. 2.Decide which approach to take As we\u2019ve discussed, there are two different approaches to take when it comes to effective service recovery. The first is to identify the problem before it reaches the contact centre, and the second is to embrace the service recovery paradox. 2 0 4","To ensure your plan is consistent, you need to decide which approach works best for your business. And, remember, the aim is to ensure the customers are satisfied in the end, so don\u2019t forget to follow-up once the issue has been solved. 3.Focus on employee training Whichever strategy you choose you need to ensure your employees receive appropriate training. Empowerment is important for employees, they need to feel prepared and supported. One of the training steps is to inform them of how much they can offer a customer before the matter should be escalated to a superior. For instance, you may assign employees a \u00a320 gesture of goodwill when certain customers are particularly frustrated, but if they feel the customer deserves more, this should be checked with a supervisor. You also need each agent to have a script, so they know how to respond when dealing with the most difficult of customers. Tools such as RingCentral are ideal for complaint handling because agents can assess customer information before they pick-up the call, and personalise the script to their needs. Agents using RingCentral are also able to answer calls remotely, meaning that more customer queries are dealt with. Examples of service recovery To understand what good service recovery is, let\u2019s first look at an example of how not to approach things. Imagine that you\u2019ve booked a hotel but quickly realise it\u2019s in the wrong area for your work trip, so need to cancel. If you\u2019ve not booked directly with the hotel, you may need to contact the booking agent. First, you look online to see whether you can change your booking without the hassle of calling. Unfortunately, you can\u2019t. So, you call the company who has your booking. But because they haven\u2019t got efficient enough systems in place, you\u2019re left waiting on hold for over an hour. When you finally get through, you\u2019re speaking to the wrong department. The agent then reconnects you to the person who can help. That agent eventually explains that due to their policy they\u2019re unable to offer a refund, but you can change the dates. But you don\u2019t want a date change \u2013 you want a full refund! This process can be lengthy, and even if there is some resolution, customer trust is damaged. A good example of service recovery is one where the company aims to solve the problem in the first instance. For example, if you realise you\u2019ve been overcharged on your phone bill your first step is to contact your phone service provider. They have a helpful self-diagnostic problem page with useful FAQs. However, you want to speak to an advisor so click \u2018live chat\u2019. An agent pops up on your screen, and because you\u2019re speaking to the best-skilled person to fix your problem, they are able to resolve it within minutes. And, because they want to ensure you\u2019re fully satisfied, they offer you \u00a310 in extra credit. Service quality in this example is high, because your needs were met and you were also compensated. 2 0 5","11.6 BUSINESS MARKET A business market is essentially a market that caters to the needs of other businesses. It\u2019s a platform where businesses offer their goods and services on sale to other businesses that may resell their product or use them in their business. To understand this better, let\u2019s look at an example. Imagine that you have a business that manufactures paper bags. When offering your products to other businesses, you may change your products depending on what the other business intends to do with your product. There may be two businesses that buy from you, one that buys from you to resell the paper bags to individual customers in a retail consumer market, and another business that may buy paper bags from you to use as packing when they pack their goods. In one situation the bags are being resold, while in the other, the bags are used by the business as part of the good that is finally offered in the market. A business that sells to other businesses may also offer products in the consumer market. A presence in the business market doesn\u2019t disqualify a business from conducting business in the consumer market. Some business markets aim at providing goods and services for large volume consumer orders as well with the help of other businesses. Characteristics that Make a Business Market Here we\u2019ll go through some of the characteristics of business markets in detail, so we get a better understanding of what makes a market a business market. 1. Market Structure Business markets are made up of fewer but larger customers. Businesses operating in these markets end up offering their goods and services to a much smaller number of buyers than businesses in the consumer market. This is because when businesses make purchases from you, they purchase in large quantities for using them in their own business or for reselling. Hence the smaller number of customers is no disadvantage in the business market as the orders you receive will always be in large quantities. Another thing is that customers in the business world are not bound within regions. Our minds are used to imagining a consumer market where there would be stores and shops where people go to buy things. The business market, on the other hand, does not function that way. Here, the customers and buyers are dispersed over enormous geographica2l areas. 0 6","This means that your geographical location does not become a barrier in conducting business as orders will often come to you from places that are far from your location as well. 2. Product Demand Demand among business buyers is generated from the demand from the consumer market. The only reason one business acquires items and services from another business is to offer the goods to the consumer market. When the finished items are no longer wanted by the consumer market, business stops purchasing them. Demand is relatively stable and is not impacted by short-term price fluctuations. A common pattern in the business market is that it is typically unaffected by pricing. There isn\u2019t a lot of variation in prices, which does not affect the number of your sales that would otherwise be greatly affected by price changes. However, that also means that to increase the profit you may have to keep expanding and offering more variations of goods and services. When prices do get affected, demand becomes extremely volatile. While the business market is not prone to large variations in the prices of goods and services, it is also not immune to market fluctuations. There are instances where goods and services in the business market are also affected by sudden and drastic changes in prices. When this happens the business market becomes more volatile than the consumer market, since business customers need to add value to the products they purchase before they are sold by them. This raises the end value much more which often discourages businesses from buying anymore. 3. Nature of Purchases The business market\u2019s purchasing procedure is rather detailed and usually involves multiple stages and various complex steps over long time periods. It also takes a much more professional approach to making purchases. Businesses like to acquire items from companies that can supply exactly what they need, and often ask for customizations. The process typically involves a large number of highly professional and technical workers who examine the product\u2019s long-term viability before the business agrees to make any purchase. These may include people who have spent years learning the tactics and strategies for effectively making business market purchases Purchase in a business market also involves various other processes such as trials with sampling, multiple evaluations, negotiation with terms and conditions, various agreements, and the establishment of contracts. 2 0 7","Business market purchases are also heavily influenced by various organizational, environmental, and individual factors. For example, changes in the economy or pressure from the competition can heavily dictate business purchasing. 4. Decision Making Process Since business purchases and consequently business relationships are often made long term, a lot goes into the decision-making process. The procedure for purchasing a firm is somewhat systematic. Before reaching a final decision, businesses normally follow a chain of command and regulation. Because this would result in a long-term connection, both firms ensure that all bases are covered when researching potential connections in the business market. Buyers and sellers collaborate more closely in order to establish a long-term partnership. When both organizations have verified one other\u2019s credentials and are sure that the other would make a good buyer or seller, they choose to enter into a long-term business relationship. Both parties understand that working together is in their best interests, since finding another compatible business would require another long search, cooperation is most profitable. Now that we have looked at the characteristics that make up a business market, let\u2019s check out the five different types of business markets along with examples! Five Types of Business Markets with Examples Business markets can be classified further depending on their target audience and the sort of goods and services they offer. 1. Business-to-Consumer Market Businesses with a presence in the business-to-consumer market advertise their goods and services directly to customers for purchase. Because it caters to the broadest group of potential consumers, the business-to-consumer market is sometimes referred to as the largest kind of business market. The reason for this is that businesses that operate in the business-to-consumer market can tailor their efforts according to the general population or according to the specific interests of their target customers within the population, based on different age groups, genders, or certain interest groups. Examples \u2013 Grocery stores, retail stores, and car dealerships are all good examples of businesses in this industry. As long as the final2buyers are individual consumers, franchises, or enterprises that sell the operating rights to08branches of their company, fall under the","consumer market category. The chain restaurant is another example of a consumer market franchise. 2. Business-to-Business Market Instead of marketing directly to consumers, companies that use business-to-business markets focus on advertising and selling their goods and services to other businesses. Products and services purchased in a business-to-business market are frequently reused or resold by the company that buys them. These products are sometimes also utilized as raw materials by businesses to make new products. Some companies in the business-to-business sector sell to consumers as well, but the majority of them offer their products and services to other businesses and enterprises. Examples \u2013 Office furnishings, business accounting services, and conference and exhibit materials are just a few examples of goods and services offered in this market. Many B2B markets overlap with consumer markets \u2013 for example \u2013 a cleaning company may offer both home and commercial cleaning services. 3. Industrial Goods Market An industrial market is one where a company sells goods and services that are used in industrial or manufacturing enterprises. Rather than selling directly to consumers, several companies with a presence in the industrial market, advertise and sell their goods and services to other businesses. This is because industrial goods and services are normally more beneficial to businesses that can repurpose them for new projects, and therefore are not usually suitable for home use. Industrial markets are sometimes seen as one of the smallest commercial markets, as their goods and services cater to smaller groups of business customers rather than broad demographics. Examples \u2013 Raw materials like steel, glass, and wood, as well as large-scale items like multi- network computer systems, are typically not marketed to consumers and are often sold to industrial or manufacturing enterprises. 4. Services Market When a business advertises and sells services rather than goods, it is part of the services market. Businesses in the services industry would be operating in a business-to-business market if they sell mostly to businesses, or in a business-to-consumer market if they sell directly to customers. This classification may vary depending on the type of service a business offers, based on whether it benefits individual customers or entire20 businesses. 9","The business may only interact with consumers, such as offering telephone services, plumbing, and electrical work to the wider population. It could also be a B2B services firm, such as one that sells business accounting or consulting services. Example \u2013 A consumer good may be sold alongside a service in some cases. A good example of this would be a tailor who also offers for sale some fabrics at his workshop. 5. Professional Services Market A professional services market makes it possible to advertise and sell specialized professionals\u2019 services. Professional services businesses and individuals often have some form of licensing or certification that allows them to operate in their industry because these are specialized services and would have to be authentic. Because some professional services businesses provide services that benefit both businesses and individual customers, they sometimes have a presence in both the business-to-business and business-to-consumer markets. Examples \u2013 Legal services and medical services are examples of what is offered in the professional services market. There may be some overlap between markets, just as there is in the services market. A law firm, for example, may offer its services to defend both individuals and businesses. 11.7 SUMMARY India\u2019s distinctive competencies and competitive advantage formed by the knowledge-based services makes it unique emerging market in the world. Backed by several government initiatives, the services sector in India has the potential to unlock a multi-trillion dollar opportunity which can create symbiotic growth for all nations. Deloitte India has worked with the Confederation of Indian Industry on a publication highlighting and introducing the opportunities in various services sectors in India. This publication provides the industry profile of key services sectors, such as IT, telecom, media and entertainment, health care, banking and financial services, retail, railways, environment, energy, logistics, exhibition and events, facility, education, space, skills, start-ups, and sports. The publication in particular highlights the focus of each sector on various government initiatives\u2014Skill India, Digital India, Start-up India, and Make in India. It also focusses and delves into special areas such as cyber security, trade facilitation, and start-ups\/SMEs in services sectors. Effective customer service is a key part of any successful business venture. In recent years, customers have started using digital communication tools to give companies feedback about products, which has resulted in the creation of new customer service tools. Now that customers can leave public reviews all over 2the internet, it has become a necessity for companies to offer multiple channels for custo1mer service. In this article, we outline eight 0","types of customer service that agents around the globe have adopted to address customer needs. The service marketing mix is a combination of the different elements of services marketing that companies use to communicate their organizational and brand message to customers. The mix consists of the seven P\u2019s i.e. Product, Pricing, Place, Promotion, People, Process and Physical Evidence. The service marketing mix, also known as the extended marketing mix, treats the service that the business offers just as it would treat a product. While the first four P\u2019s are involved in product marketing too, the remaining three P\u2019s focus mainly on service delivery and enhancing customer satisfaction. Service recovery is all about righting your wrongs. It\u2019s the process of recovering from a poor customer service experience and regaining customer loyalty. The key is to react as fast as possible and rectify your errors when you spot them. 11.8 KEYWORDS Customer service is the support a company offers to its customers. This support begins during the purchasing process and usually extends past the purchasing date. During the purchasing process, companies typically provide customers with advice and information about products or services they sell. Service recovery is all about righting your wrongs. It\u2019s the process of recovering from a poor customer service experience and regaining customer loyalty. The key is to react as fast as possible and rectify your errors when you spot them. 11.9 LEARNING ACTIVITY \uf0b7 Define service recovery. ___________________________________________________________________________ ___________________________________________________________________________ \uf0b7 State the service marketing mix. ___________________________________________________________________________ ___________________________________________________________________________ 11.10 UNIT END QUESTIONS 2 A. Descriptive Questions 1 1","Short Questions \uf0b7 What is customer service? \uf0b7 Discuss about the developments in the services sector in the recent past. \uf0b7 What is the service recovery paradox? \uf0b7 Describe the Importance of service recovery Long Questions \uf0b7 Explain the various types of customer service? \uf0b7 Describe the Growth of Service in India. \uf0b7 Elaborate the various Elements of Service Marketing Mix. \uf0b7 Discuss about service recovery in detail. B. Multiple Choice Questions 1. Costs that are planned and are accrued during the operating period regardless of the level of production and sales are called a. Fixed costs. b. Average costs c. Marginal costs. d. Direct variable costs 2. Which pricing strategies encourage the customer to expand his\/her dealings with the service provider? a. Relationship pricing b. Price bundling. c. Benefit-driven pricing. d. Efficiency pricing. 3. Do studies suggest that price is more likely to be used as a cue to quality under the following conditions? a. When a price is the primary differential information available b. When a customer does not have knowledge c. When alternatives are of bad products d. When the company is new to the market 4. The primary role of a service firm for the customer in the communication mix is to ___. a. Inform and remind customers b. Confuse customers. c. Oppose the competitor s claim d. Persuade the dealers. 5. The plan for differentiating the firm from its competitors in consumers eyes is referred to as the firms a. Positioning strategy. b. Publicity. c. Target marketing 2 d. Communication mix 1 2","Answers 1-a, 2-a, 3-c. 4-c, 5-d 11.11 REFERENCES Website \uf0b7 http:\/\/www.slideshare.net\/sreenath.s\/evolution-of-crm \uf0b7 www.articlesbase.com\/training-articles\/evolution-of-customer-relationship - management-1294285.html \uf0b7 http:\/\/www.oppapers.com\/subjects\/different-kinds-of-approaches-to-hrm- page1.html 2 1 3","UNIT \u2013 12 B2B\/B2C MARKETS STRUCTURE 12.0 Learning Objectives 12.1 Introduction 12.2 Importance of CRM in B2B and B 2 C Markets 12.3 Key Account Management 12.4 Supplier-Channel Management. 12.5 Summary 12.6 Keywords 12.7 Learning Activity 12.8 Unit End Questions 12.9 References 12.0. LEARNING OBJECTIVES After studying this unit, you will be able to: \uf0b7 Describe nature of B2B and B2C markets \uf0b7 Identify scope of Supplier-Channel Management \uf0b7 State the need and Importance of CRM in B2B and B 2 C Markets \uf0b7 List the functions of Key Account Management 12.1 INTRODUCTION Nowadays, to stay ahead of the game B2B companies should focus on developing strong marketing strategy. With increasing global competition and the need to efficiently market a company\u2019s brand, image, products or services, more and more B2B organizations started implementing marketing automation software. Shortly put, marketing automation refers to a marketing solution aimed at helping organizations to automate and personalize communication. These tools are good at providing businesses with the most suitable methods for defining prospects, attracting customers, capturing important information on leads, and mapping unique flows through the customer journey. 2 1 4","According to statistics, today, 97% of B2B organizations are using CRM tools. Marketing experts say that B2B businesses will only continue to invest in CRM-based systems. B2B marketers adopt CRM systems for different reasons. First and foremost, a powerful CRM can simplify your contact management, be it leads, prospects, opportunities or closed sales. Good CRM is also capable of creating a single view of the customer, prioritizing activities, and receiving reminders for calls, emails, meetings or follow-ups, which helps to store information in an easily retrievable database rather than having them stored randomly. Organizing your data is one of the biggest reasons why B2B organizations go in for CRM. Another important reason why it makes sense to adopt a CRM for your B2B venture is that it allows users to access relevant information regardless of your location or your device. Not only your marketing team can benefit from the CRM \u2013 the solution will be useful for sales reps, technical support, HR, and even audit staff. If chosen and implemented wisely, it helps the entire organization to work as a team towards a common goal instead of working at cross- purposes. One of the primary goals of most B2B marketers is to generate qualified leads, which is almost impossible without having quality data on your prospects and customers. Professional CRM makes it easy to keep track of all the data you have and ensure you regularly check and update information when needed. It is especially important in today\u2019s rapidly changing world where people move job titles, marry, change surnames, and rebrand their businesses. CRM ensures your data is always up-to-date. With its help, you will not only increase the leads you generate but also significantly improve their quality. CRM system also comes in handy when there is a need to measure your marketing ROI. You can use the software to track the first touch a lead had with your organization. For example, if your eBook generated a lead, who later became a customer, marketing can take credit for influencing this deal. The world of B2B is becoming more complex, and a good CRM is a secret to making it easier. Creatio is perfectly suitable for midsized and large B2B companies. This system meets all the above requirements. Recently, Creatio has been recognized as a Strong Performer in The Forrester Wave\u2122: B2B Marketing Automation Platforms, Q4 2018 by Forrester 2 1 5","Research, one of the most influential research and advisory firms in the world. The evaluated product is Marketing Creatio. Marketing Creatio is a multichannel marketing platform to orchestrate customer journeys and accelerate lead-to-revenue. The product comes with efficient email marketing tools that enable users to establish and maintain personalized communications with every client. The software helps to gain demand generation excellence through identifying customers\u2019 needs and nurturing their interests until they are successfully transformed into opportunities. The advancement in technology changed the market paradigm, and now a customer modifies the rules of the selling process. CRM software emerged like a solution that facilitates the paperwork, improve business procedures and communicates with clients for diving into their interests. However, in CRM the notion of \u2018customer\u2019 is not only distinguished as a person but also like the whole company as well. Presently, companies have a general division into B2B and B2C. So let\u2019s try to understand the following concepts. What are B2B and B2C? B2B is the acronym for Business to Business . It is a type of business relationship in which businesses provide goods or services to other businesses. Businesses sell products and offer services that specifically meet the needs of particular customers who are other businesses and not individuals. A company operating in B2B will be harder to set up than a B2C company because the contracts are generally for higher amounts . Companies must trust each other and have long- term partnerships . 2 1 6","In supply chains, this type of business is very common. Companies buy raw materials from other companies to use in their manufacturing process. In the context of communication, B2B refers to the methods by which employees of different companies can connect with each other through social networks. B2C is the acronym for Business to Consumer . It is a type of business relationship in which businesses provide goods or services to individuals. A business operating in B2C can quickly sell products and services and sales can range from very low value to extremely expensive. An individual can purchase a product or service from a business once and never have any dealings with it again. How do B2C and B2B clients differ? 1. Buying Impulse vs. Rationality Often, the customer\u2019s purchasing behavior is dic2tated by decisions based on certain desires or on attractive prices. However, business custom1er purchases are well-planned, predictable, 7","economically driven, and realized in terms of business values. B2B customers are pragmatic buyers who spend more time researching products and measuring their suitability and financial benefit to business. 2. Sole Decider vs Multiple Decider Unlike B2C buyers who are single decision makers and make buying decisions independently, B2B customers are often involved in a more complex buying process with multiple players. The chain of people involved in decision-making may consist of, for example, the budget approver, the researcher who collects product information, the point of contact, and the end user. Since there are many parties involved in the purchasing decision from the B2B customer side, it is important for a business selling to another business to facilitate comfortable purchasing conditions that can satisfy multiple workflows. and several actors. 3. Short Term Relationship vs Long Term Relationship B2B customers want to build long-term relationships and partnerships, unlike B2C buyers who tend to buy sporadically in much smaller volumes, and then may stop for good. In contrast, companies that put a lot of effort into the long process of choosing a reputable supplier prefer to establish strong and stable ties with their established partners. Long-term relationships provide endless potential for repeat purchases that are at the heart of B2B e-commerce. 4. Fixed prices vs Indexed prices B2C consumers generally place orders at a fixed price which is the same for the rest of the visitors to the online store. However, this is not the case for the B2B counterparty. In the B2B area, there are no universal prices because prices can fluctuate depending on a customer, their location, their negotiated contracts, the history of business relationships, etc. 5. Direct Payments vs Post-Delivery Payments To complete an order, B2C consumers usually pay using an appropriate payment solution (eg credit or debit card). In the B2B ecosystem, order payments are made regularly by credit because business customers occasionally make a few purchases in a short period of time. Instead of paying for each order that has been placed, B2B buyers receive a monthly invoice or quote which is a great payment alternative ensuring quick and frequent ordering. 6. Fast Deliveries vs Punctual Deliveries B2C consumers care more about the speed of delivery of their time-dispersed orders. Companies operating in the B2B framework, whose purchases for commercial purposes are scheduled, are more concerned with predictable delivery times. Getting an order on time is crucial for flexible business. 2 1 8","The B2B purchasing process is distinguished from B2C due to its complexity, scope and scale while B2B customers cannot be treated as regular end users. The multiple incompatibilities of individual and business customer shopping behavior and expectations mean that approaching your online B2B customers as if they were ordinary buyers could cost you dearly. So, the selection of CRM B2B or B2C CRM model has a crucial importance for future development of your business. A diversity of CRM platforms allows you to choose the most suitable system that will enhance your revenue instead of overkilling your organization. B2B CRM B2B CRM stands for Business to Business Customer Relationship Management and refers to systems, technologies, strategies, and processes that help B2B companies manage their relationships with existing and potential customers. B2B CRM can help B2B companies better understand their customers\u2019 needs. Comprehension is essential in the B2B field, due to the complex nature of the customer relationship. When we talk about B2B CRM, we might be referring to CRM as a strategy, CRM as a process or CRM as a technological system. \u201cSystem\u201d means the software application (or \u201csolution\u201d) used to collate information from each customer touchpoint (e.g. website, online chat, email, phone calls, social media, meetings, direct mail, etc.) and analyses these interactions. It can also include historical data about quotes, sales, inquiries or reported issues. The information is stored in a centralized database for use by all colleagues, often in the cloud. In practice, when people use the term \u201cB2B CRM\u201d, it is usually as shorthand for the system itself. However, B2B CRM should primarily be thought of as a strategic way of understanding and delivering on business customers\u2019 needs at each stage of the sales cycle. The system is what enables this. What is the purpose of a B2B CRM system? In both B2B and B2C sales cycles, the idea is to guide potential customers through a series of messages and (tailored) content that starts with generating brand awareness and leads \u2013 all being well \u2013 to a sale. If this sale is followed up with comprehensive customer care, it can also lead to repeat customers and brand advocacy. The specific challenge of the B2B environment is that a business is much more complex and multifaceted than an individual customer (who already typically has a complex intersection of needs). Companies are likely to have multiple considerations and requirements at each touchpoint, which can make it difficult to figure out what they need and where. This is where the CRM system comes in. 2 B2C CRM 1 9","By compiling the information mentioned above, the CRM system enables marketing and sales team to track individual leads in detail and figure out exactly how and when to influence them to move to the next stage of the funnel and also to automate specific tasks. It\u2019s been predicted that the customer relationship management (CRM) market will reach a whopping $36 billion by 2017, but what is CRM, really? When most business leaders hear the term customer relationship management, they picture a set of tools and systems designed to effectively track and record customer data, and to coordinate company resources with the goal of providing a better B2B customer experience. But while this idea of CRM is actually fairly accurate across the board, it fails to take into account the advantages that CRM offers B2C organizations. But why make a distinction at all? In the end, business is business, regardless of who the customers are, right? Well, not exactly. There are some significant differences between how B2B and B2C businesses operate, specifically where marketing and sales are concerned. B2C CRM Benefits As the name suggests, the main focus of CRM is the customer, and given that B2C businesses usually have a much larger number of customers than B2C businesses, keeping track of the history and preferences of each individual customer becomes much more difficult. Creating targeted, personalised messaging for each customer is likewise a monumental task \u2014 one that would be functionally impossible without computer assistance. Additionally, being able to connect with customers and potential customers on an emotional level, such as through targeted marketing campaigns and social media posts, can have a significant impact on customer acquisition and retention. In fact, in a Capterra survey of CRM users, customer satisfaction and customer retention were the two most often-cited aspects of business that were significantly impacted by the introduction of CRM. With so much riding on the satisfaction of individual customers, B2C CRM software makes it possible to form real connections with individual customers, which is the key to B2C success. Choosing the Best B2C CRM for Your Business While there are many CRMs available on the market, most are designed specifically with B2B in mind. Because of this, finding a B2C CRM solution that fits the needs of your organisation can be difficult. In order to avoid committing to the wrong CRM, B2C companies should first know what sort of features a B2C CRM tools needs to have in order to be effective. Here is a quick breakdown of the elements of superior B2C CRM Systems: Detailed Customer Tracking and Contact Management As mentioned above, the customer is the most important part of customer relationship management. So, your CRM should be able to track customers through the entirety of the sales journey, recording any relevant information along the way. This will enable your various teams sales teams (and other departments) to easily access the right data to be able to provide a seamless and positive customer experience. This is vital to B2C customer management, where organisations generally are dealing with large, diverse customer populations. 2 Cloud-Based Operation 2 0","The cloud provides many distinct advantages to B2C businesses. Cloud-based B2C CRM systems require no expensive hardware installation or maintenance, operating instead from off-site servers accessed via an internet connection. This means that B2C teams can access the same important data from any device or platform, eliminating potential compatibility issues. For B2C organisations that deal with high volumes of individual decision makes, the ability to access important customer information from anywhere, at any time, and to coordinate efforts with others in the company means a more mobile sales force capable of guiding prospective clients through the sales pipeline more effectively. Real-Time Updating B2C customers are more likely to move through the sales pipeline quickly, so if you end up having to wait for batch-processed customer data, you might find yourself lagging behind. CRMs that instead rely on real-time processing, updated instantaneously and capable of giving you an up-to-the-minute picture of exactly where your customers are and what they need, ensure that everything keeps moving at the right speed. Advanced Reporting No matter how much data is being captured and analysed, it won\u2019t do your business much good unless that data can be efficiently and effectively shared with decision makers. CRMs that use data visualisation, usually in the form of interactive dashboards featuring diagrams, graphs, charts, and other image-based representations can give authorised users all the important customer information and business data they need at a glance. This is especially advantageous for B2C businesses, who need to maintain an accurate awareness of their constantly shifting customer base. Multi-Channel Integration Social media is one of the most used customer service channels today, with as many as 67% of customers using social media sites (such as Facebook and Twitter) for customer-service, and 33% of customers naming social media as their preferred customer service channel. That said, email, message boards, live-chat, and the telephone are all effective customer-service options. Having a CRM that can be integrated into the entire range of customer service channels means that your B2C business will be able to assist even the most technologically diverse clientele. Extensive Automation Managing a B2C customer base is a full-time job, one that is likely already stretching the capabilities of your sales team. As such, ongoing tasks such as forms, reports, confirmation emails, follow ups, and the other bits of tedious-yet-necessary minutiae can end up using valuable sales-team time. Some CRMs are designed to be able to automate many of the peripheral tasks associated with sales and customer service, freeing up your sales teams to pursue more pressing responsibilities. 2 2 1","12.2IMPORTANCE OF CRM IN B2B AND B 2 C MARKETS Before we get to understand the growing importance of CRM in B2B, it would be better if we had a reasonably good understanding of B2B. Though most of us are aware, B2B is nothing but business activities that are being undertaken by two business entities and not between business houses and customers. There is no doubt that the value of transactions and the volume of transactions are much higher in B2B when compared to sales between business houses to individual customers. Hence the complexities and challenges involved in B2B activities are totally different from those in B2C. While there is no doubt that customer relationship management is important in B2B activities it cannot be the same both in terms of scale and methods when compared to B2C CRMs. In this article we will try and find out why CRM for B2B should be given as much importance as we find in B2C. The Importance Of CRM In B2B Is CRM Really Needed For B2B Transactions? Since the volumes of transactions are quite high and the value per transaction is much higher, there is a common question that often comes to mind. Is there really a need for CRM for B2B transactions? The answer is \u2018yes\u2019 for a number of reasons. Though the number of end use may not be as huge as retail customers, there is a need to monitor the buyers given the competitive business scenario that the sellers are into. As a starting point, even if the number of buyers are a handful, it is important to have a database of the same. It is a must and if sellers do not have a database they should better get started immediately. This is the foundation on which the best of CRM modules are developed. Without database the company will be groping in the dark and will be firing blind shots in the air as far as CRM efforts are concerned. 2 Why CRM For B2B Can Be Very Helpful 2 2","As is the case with CRM for individual customers, there are certainly a number of benefits as far as CRM for B2B is concerned. First and foremost, as mentioned above, a CRM solution helps to store information in an easily retrievable database rather than having them stored haphazardly. Many B2B companies still lag behind in this, mostly because of complacence and the fact that there are only handful customers to handle. However, it is important to keep in mind that these few customers contribute to their entire turnover and in terms of volume and value it would certainly be very high. It is therefore very important to monitor their buying habits very closely and minutely. Missing out even on small details could prove very costly. Even if one buyer walks out temporarily and starts buying from some other supplier it could create a big dent in the overall sales and revenue for the seller. Good CRM For B2B Helps Organizations Become More Efficient When you decide to purchase a CRM module for your B2B venture, the first thing you have to do is obtain all the information related to your customers in single place and preferably in a single server. This will go a long way in better storage of information and easy retrieval. Furthermore, the information will be stored in scientific storage modes and devices instead of depending on excel spreadsheets and other such primitive storage modes. Organizing data is very important if you are looking to monitor your buyers and any CRM module that searches for information about customers cannot be called a CRM module at all. When data is stored centrally, there won\u2019t be any problem retrieving it at any point in time and all the stakeholders can view the information just at the click of a button. Organizing your data is perhaps the biggest reason why organizations should go in for CRM for B2B. CRM Modules Help Keep Track On Progress or Regression 2 2 3","As a sales force in the market, real time information on product movement, buyers\u2019 behaviors and patterns is of utmost importance. It should be available instantaneously so that the right preventive and corrective action can be taken without any loss of time. It will help the marketing team find out whether they are moving on course as far as their main objectives are concerned. The objectives could be short term, medium term and long term and therefore only well thought out CRM modules can help the marketing and sales teams. The business environment also is ever changing and fluid. Hence, timely availability of information through a time- tested and robust CRM module will certainly help swim successfully against the tide when needed. It Will Help In Identifying And Defining Roles Any marketing and sales effort can be successful only if there is a well defined role for each of the marketing and sales personnel. Apart from defining of roles it should also be easy to identify the persons or groups that are responsible for their specific roles and responsibilities. This can be done only with the help of a well thought out and well structured CRM module for your B2B setup. There is no point in moving up and down various silos in search of information that will help fix roles and responsibilities. This should be totally automated and the roles and responsibilities must be available at a click of a button. This will save precious time that is so important in today\u2019s competitive business scenario. It Helps In Sharing Information And Increasing Knowledge Base Another important reason why it makes sense to have a good CRM module for our BRB venture is because you will be able to drag out relevant information irrespective of the location or the hierarchy that you are in. It will not only help the marketing team but also will 2 2 4","be useful for the human resources team, the accounting team and even the compliance and auditing team. This will help the entire company to work as a team with one specific objective in mind instead of working at cross-purposes. For example, an accounting staff will be able to learn more about the latest happenings in the marketplace and hence the marketing strength of the organization as a whole will increase quite dramatically. Last but not the least, when you have the right CRM in B2B it will go a long way in increasing the knowledge base across departments and across hierarchies. The Importance of CRM for your B2C Business As a B2C owner, why do you need a CRM software? Whether you like it or not, when you\u2019re growing as a business, managing customer relationships can be tough. You\u2019ll have plenty of customer information and data to manage too. On top of that, you also have to deal with the legal responsibility of protecting the information you have collected. A CRM not only helps you store and secure your data, but the tool also helps you understand your customers and their behavior. Doing your business on MailChimp, doing manual data entry on Google Sheets, or answering queries from your phone email will never cut out. You need a tool to manage all of them in one spot. This is why you need a CRM for your B2C business. Why Choose Saphyte as your Partner? Saphyte is a CRM system that helps you streamline all of your e-commerce and B2C activities and integrate them into one powerful platform. Saphyte has CRM features that helps your business manage your customer data, conduct 2 marketing tactics and strategies, and identify o2pportunities for the long haul. Overall, our 5","platform has been proven to help businesses achieve growth and build long-term customer relationships. Saphyte is built for B2C companies, retails and e-commerce businesses. The system provides its user with an integrated platform for sales, marketing, support, inventory, and quotation management. Or any needs necessary for the management of a B2C company. Saphyte provides customizable dashboards, quotation and inventory management, deals and campaign management, and more to help manage retail operations seamlessly. In addition, here are some of the key features of Saphyte that can help you manage your business seamlessly. Client Management Tools You can effectively and efficiently manage your contacts database through our Client Management tab. Within this feature there are tools to automate your processes, organize your data, manage your tasks, generate your reports, and other more valuable features. You can also segment your potential customers and existing customer\u2019s data without the fear of duplication. The system is built with a duplicate sensitivity program that easily recognizes duplicates and prompts you to either merge or replace client information. Deals Management Want to know where your latest deals are at? Saphyte has the tools to manage your deals and prioritize them. You can easily know the hot deals or the cold deals in the dashboard which in return help you close deals easier and maximize your revenue. Marketing and Campaign Management 2 2 6","Marketing plays a big part in every business cycle, most especially for B2C businesses. We all know that it\u2019s a must B2C companies sell their products. Saphyte can help you scale your business and accelerate your marketing strategy by providing you all the necessary tools for your marketing needs. Fulfill successful selling of sale products and brand communication through Saphyte\u2019s Campaign Management. This tool allows you to measure the effectiveness of your marketing efforts directed at your target audience. Saphyte\u2019s Campaign Management provides the real-time statistics of the parameters you set for your ongoing campaigns like the number of clicks, emails, opened emails, leads, deals, and more. Email Marketing Tools Send your email in style with Saphyte\u2019s Email Marketing Tools. From email templates, product catalogs, bulk email, email senders, and email tracking. You can craft your newsletters, product catalog, and workflows within the system. You don\u2019t have to spend much time on installing and learning new platforms just to send a great email. On top of email senders are email trackers. You and your team will be notified the moment your client opens an email, clicks a link, or downloads an attachment you have sent. Integration Tools Responding to customers is made easier with Saphyte. 2 2 7","You can manage and track your emails from the CRM. Configure your email account such as Outlook, Gmail, Others: IMAP, SMTP, into your CRM mailbox. So, you can reply to your customers without having to switch to another window. On top of that there are integration tools for payment gateways and chat integration tools to boost customer relationships. With all of these features, customer satisfaction is in your hands. 12.3 KEY ACCOUNT MANAGEMENT (KAM) Key account management (KAM) is the process of planning and managing a mutually beneficial partnership between an organization and its most important customers. Key accounts are significant to an organization\u2019s sustainable, long-term growth and require a substantial investment of both time and resources. Salespeople must develop a clear strategy and program structure to serve and grow these strategic accounts. Key Account Management is a strategic approach distinguishable from account management or account-based selling and should be used to ensure the long-term development and retention of strategic customers. The one common mistake many organizations, both small and big tend to make and repeat, is to treat all their accounts with the same business model. It is never too late, however, to correct the situation and start looking at your account type and process more closely. You will notice, that there is a key difference in the account types, organizations like yours, have in their portfolio. A Key Account Management process is required to manage Key Accounts, which may require more nurturing, different skills, and utmost attention than other accounts. The famous management rule applies in this case too, where 80% of your profit will come from 20% of your strategic accounts. What resources to invest and how and where, are the key questions you have to handle. Automated systems and processes will work best for 80% of your accounts, whereas, you can safely invest and focus your time on the sales of the rest 20% of your Key Accounts. 2 2 8","Knowing and serving these two different account types is the key to maximizing the potential of your sales force. It will pay to look at specialized KAM Softwares to help you mine your Key Accounts and enrich your relationship for the long term. \uf0b7 Key account management is high profile but difficult to do well. \uf0b7 Key account management is appropriate to several types of relationships but most clearly manifests when suppliers and customers have a mutually recognized partnership and a degree of trust. \uf0b7 There are often mismatches between the way suppliers and customers perceive each other and their relationship, so careful communication and vigilance are vital. \uf0b7 Regular monitoring of the profitability of individual customers by suppliers provides crucial information but is quite rare because customer profitability is difficult to measure. \uf0b7 Strategic account managers need a broad portfolio of business management skills to deal with interdependent or integrated customer relationships. Why Key Account Management? We are familiar with Sales Funnel. Marketing generates thousands of leads & passes on the qualified leads to sales who in turn win deals. So far so good. But for B2B companies who offer multiple solutions with long-term engagements with their customers, winning the first deal is only the beginning of the process. You then farm and mine those key accounts for more revenue. You LAND and EXPAND. A traditional sales funnel can be extended by adding an inverted funnel at its bottom into an \u2018hourglass\u2019 shape. Images are a powerful means to drive home a point \u2013 in this case, Key Account Management is a critical component of revenue generation for B2B companies. Refer to the diagram below: 2 2 9","For most B2B companies, the bottom half of the \u2018hourglass\u2019 generates 80%+ of the revenue in a given year. The most commonly used nomenclature is \u2018Hunting\u2019 & \u2018Farming\u2019. Hunting is acquiring new customers while demand farming is growing business from existing customers. A hunter sells, while a farmer helps the customer buy. The \u2018hourglass\u2019 also helps in organizing various functions and processes in a B2B company. As you can see in the diagram it will be easy to define the roles of marketing, inside sales, sales & strategic account management in the revenue lifecycle. Thus, the role of software\/tools for each function becomes clear. Account planning tools, tools for marketing automation, inside sales, lead qualification, sales process automation, and finally Key Account Management. The difference between Key Account Management and Sales While \u2018Sales\u2019 is an overarching process across industries, KAM is specific to existing customers in B2B companies with complex solutions, multiple offerings, and long-term repetitive engagements. KAM requires a deep understanding of customer domain, situation, and challenges, and then stitching a solution. In Sales, one would be offering a suite of products already available. In Sales you \u2018sell\u2019, in KAM you help customers 2\u2018buy\u2019. 3 0","Stages of Relationship with Key Accounts Key account management (KAM) is very much concerned with managing the relationship with the customer and it is important to understand these relationships, which vary from simple, transactional forms to intimate and complex liaisons. Both the key account manager and the supplier organization need to know what kind of relationship they have with each customer, and therefore what they can and cannot do with it. 1. Tactical Relationship The \u2018Account\u2019 is at the tactical stage either because it is new or the nature of the \u2018Account\u2019 forces you to keep the relationship this way. You would be one of the several suppliers. The relationship emphasis is transactional with pricing as the main criteria. The interaction is through one person on both sides. The engagements are few & forecasts can be made for the short term. It\u2019s not difficult for either party to exit the relationship. Please note that it\u2019s ok for some accounts to remain at the tactical stage even after a long time of engaging with them, especially if the \u2018account\u2019 does not believe in building a partnership with suppliers or potential, in the long run, is not high. However, if the potential of the \u2018account\u2019 is medium to high, plan to invest more in moving up the relationship stage. 2. Cooperative Relationship The \u2018account\u2019 has slowly started moving beyond transactions. The engagements & interactions are driven by few people on both sides, but more at an operational level. The customer can still exit the relationship fairly easily, with some inconvenience. The cost of a relationship is increasing from \u2018your\u2019 side without clearly visible advantages of cost savings or increased business. It\u2019s ok to remain at this stage if the \u2018account\u2019 is low to medium potential. If the \u2018account\u2019 has high potential, evaluate the effectiveness of the previous investments & fine-tune the investments to build better relationships. The returns on these investments might not be evident yet, but you should be on the path to realizing the returns in terms of cost savings, more business, or both. 3. Interdependent Relationship 2 3 1","\u2018You\u2019 & \u2018account\u2019 are locked in mutually beneficial engagements. \u2018You\u2019 are mostly the single supplier (or at least largest) for your offerings. Interactions are taking place at all functional levels. You have a lot of access and training to use \u2018account\u2019 information to build better solutions for them. \u2018Account\u2019 has started including \u2018you\u2019 in their planning. It will be difficult for the \u2018account\u2019 to exit the relationship. The \u2018account\u2019 now is very profitable & \u2018you\u2019 can also forecast sales acceleration or increased business in the medium to long term. If the \u2018account\u2019 does not have high potential, \u2018you\u2019 may want to relook at the investments being made & recalibrate. 4. Strategic Relationship This is the highest stage of a relationship where \u2018you\u2019 and \u2018account\u2019 have arrived at a win- win, long-term key account management strategy together. The exit barriers to the relationship are very high & exit will be traumatic. The interactions between \u2018you\u2019 and \u2018account\u2019 are at all levels & very open. The \u2018account\u2019 is very profitable & \u2018you\u2019 have long- term visibility of business growth. If the \u2018account\u2019 has high potential, then this is the ideal stage. If the potential is not high, you may want to rethink investing in building this kind of relationship. Key Account Management Strategy Analysis Key Account Planning & Management require strategic thinking. At least once a year we need to look beyond dollar numbers, relationships, and activities to think about our Key Accounts process. A good deal of frameworks is mentioned in the book \u201cKey Account Management-The definitive guide\u201d by Malcolm McDonald & Diana Woodburn.\u201d A framework like the KAM quadrant helps us in knowing the account attractiveness and the strength of the relationship in that account. \uf0b7 Strategic: Invest in mindshare and ensure profitability \uf0b7 Star: Invest time & money. Need not be profitable yet. \uf0b7 Status: Maintain the status quo. \uf0b7 Streamline: Manage for profitability. Developing Key relationships The way to the customers\u2019 hearts is through 2their business and not yours. The customer 3 expects its key suppliers to at least understand th2e following:","\uf0b7 Their marketplace \uf0b7 Their strategies \uf0b7 What their customers want \uf0b7 How they add value to their business \uf0b7 Where they make their money. What is the role of a key account manager? Even though a key account manager is required to have a long list of skills and considerable experience in doing what they do, they have two major roles. One is creating trust-based business relationships with the portfolio of key clients to make sure they do not turn to competitors. The other is expanding the business relationships with present clients by continuously executing solutions that meet their goals. Put very simply, the key account manager has two roles: Implementation: This means deciding what should happen in an account and making sure it is delivered. Implementation roles: \uf0b7 Expert in the customer \uf0b7 Value developer \uf0b7 Point of accountability. Facilitation: This involves developing the relationships that will enable the business strategy. Facilitation roles: \uf0b7 Boundary spanner \uf0b7 Conduit \uf0b7 The focal point of contact. Key Account Management Best Practices Key Account Management is the most effective, profitable management of your most important assets. It drives the profitability of B2B companies, and having a Key Account Strategy is the heart of any successful business in this sector. 2 3 3","Smart suppliers are keen to implement KAM., Sadly, however, many KAM implementations fail and are abandoned. One should keep the following best practices in mind to succeed with their KAM strategy 1. Focus on customers that matter most To get started with the Account Planning template, you need to identify some Key Accounts, and you need to develop a criterion or model that differentiates them from the rest of the customer base. Good advice here is to start small. It is easier to add customers to your KAM program than it is to \u2018demote\u2019 customers once you have told them that they are key accounts. As per an HBR report, Corporations like Xerox keep the number of true key accounts below 100, and they have far greater resources than most and have been practicing KAM for years. Therefore, your organization must have a clear understanding of what a Key Account means and follow the same categorization criteria throughout. Do not add certain customers to your Key Account program just because they have been customers for long, or they are golfing buddies with the CEO. Key Accounts need not necessarily be the customers who are paying you the most. They are usually the customers with the maximum potential to buy new and additional products or services in the future. The customers are most likely to be consistent and loyal, and so represent significant value in the long term. 2. The relationship is the key Another important aspect of Key Account Management is using the best practices and skills to focus on building loyalty and a long-term relationship with the customers. As more B2B Organizations want to portray themselves strategically unique to their customers, they must ensure to maintain and approach their relationship with Key Accounts slightly differently too. Key Account Management is all about relationship building and most importantly trust- building between organization and customer. K2 AM wishes to see buyers considering the seller as a skilled partner, and not as a ven3dor. Understand the client\u2019s organizational 4","hierarchy using the Org chart which is available in both the Salesforce Org chart and the MS Dynamics Org chart. 3. Look for opportunity You should always be looking to grow your sales numbers out of your existing Key Accounts. It\u2019s far more profitable to sell more products to existing customers than to invest time and effort into finding new ones. To make the most of the potential to cross-sell existing Key Accounts, you need a strong strategy to bring best practices to your Key Account Managers and salespeople. An additional product should be about providing customers with something that will benefit them. You might be disappointed if you push unrelated products. Use the relationships you have already established with your clients to ask questions and find out about the issues they are encountering and look for ways to resolve those by making improvements to your existing products or developing new ones. White space analysis can help you in white space mapping to find opportunities and improve sales intelligence. Key Account Management Business Impact The correct adoption of Account Management by an organization can help in providing long- lasting strategical benefits. To create better results, organizations use key account management software to help succeed in adding more value to their key accounts. Following are some of the benefits: 1. Key Account Retention Losing a client is never good, but losing a Key Account can put a dent in those revenue figures. Not to mention all the cost and effort added for acquiring a new client to make up for the loss of revenue. KAM helps you identify and nurture your most important clients hence ensuring their retention. 2. Increased revenue As explained earlier, KAM leads to increased r2evenue. By cross-selling and up-selling, you help decrease customer retention costs and grow3revenue from Key Accounts. 5","12.4SUPPLY CHAIN MANAGEMENT Supply chain management is the handling of the entire production flow of a good or service \u2014 starting from the raw components all the way to delivering the final product to the consumer. A company creates a network of suppliers (\u201clinks\u201d in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users. How does supply chain management work? According to CIO, there are five components of traditional supply chain management systems: The supply chain manager tries to minimize shortages and keep costs down. The job is not only about logistics and purchasing inventory. According to Salary.com, supply chain managers \u201coversee and manage overall supply chain and logistic operations to maximize efficiency and minimize the cost of organization's supply chain.\\\"1 Productivity and efficiency improvements can go straight to the bottom line of a company. Good supply chain management keeps companies out of the headlines and away from expensive recalls and lawsuits. In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain which consists of the following five parts. Planning To get the best results from SCM, the process usually begins with planning to match supply with customer and manufacturing demands. Firms must predict what their future needs will be and act accordingly. This relates to raw materials needed during each stage of manufacturing, equipment capacity and limitations, and staffing needs along the SCM process. Large entities often rely on ERP system modules to aggregate information and compile plans. Sourcing Efficient SCM processes rely very heavily on strong relationships with suppliers. Sourcing entails working with vendors to supply the raw materials needed throughout the manufacturing process. A company may be able to plan and work with a supplier to source goods in advance. However, different industries will have different sourcing requirements. In general, SCM sourcing includes ensuring: \uf0b7 the raw materials meet the manufacturing specification needed for the production of goods. \uf0b7 the prices paid for the goods are in line with market expectations. \uf0b7 the vendor has the flexibility to deliver emergency materials due to unforeseen events. \uf0b7 the vendor has a proven record of deliver32ing goods on time and in good quality. 6","Supply chain management is especially critical when manufacturers are working with perishable goods. When sourcing goods, firms should be mindful of lead time and how well a supplier can comply with those needs. Manufacturing At the heart of the supply chain management process, the company transforms raw materials by using machinery, labor, or other external forces to make something new. This final product is the ultimate goal of the manufacturing process, though it is not the final stage of supply chain management. The manufacturing process may be further divided into sub-tasks such as assembly, testing, inspection, or packaging. During the manufacturing process, a firm must be mindful of waste or other controllable factors that may cause deviations from original plans. For example, if a company is using more raw materials than planned and sourced for due to a lack of employee training, the firm must rectify the issue or revisit the earlier stages in SCM. Delivering Once products are made and sales are finalized, a company must get the products into the hands of its customers. The distribution process is often seen as a brand image contributor, as up until this point, the customer has not yet interacted with the product. In strong SCM processes, a company has robust logistic capabilities and delivery channels to ensure timely, safe, and inexpensive delivery of products. This includes having a backup or diversified distribution methods should one method of transportation temporarily be unusable. For example, how might a company's delivery process be impacted by record snowfall in distribution center areas? Returning The supply chain management process concludes with support for the product and customer returns. Its bad enough that a customer needs to return a product, and its even worse if its due to an error on the company's part. This return process is often called reverse logistics, and the company must ensure it has the capabilities to receive returned products and correctly assign refunds for returns received. Whether a company is performing a product recall or a customer is simply not satisfied with the product, the transaction with the customer must be remedied. Many consider customer returns as an interaction between the customer and the company. However, a very important part of customer returns is the intercompany communication to identify defective products, expired products, or non-conforming goods. Without addressing the underlying cause of a customer return, the supply chain management process will have failed, and future returns will likely persist. 2 3 7","Key features of effective supply chain management The supply chain is the most obvious \u201cface\u201d of the business for customers and consumers. The better and more effective a company\u2019s supply chain management is, the better it protects its business reputation and long-term sustainability. IDC\u2019s Simon Ellis in The Path to a Thinking Supply Chain\u00b9 defines what is supply chain management by identifying the five \u201cCs\u201d of the effective supply chain management of the future: \uf0b7 Connected: Being able to access unstructured data from social media, structured data from the Internet of Things (IoT) and more traditional data sets available through traditional ERP and B2B integration tools. \uf0b7 Collaborative: Improving collaboration with suppliers increasingly means the use of cloud-based commerce networks to enable multi-enterprise collaboration and engagement. \uf0b7 Cyber-aware: The supply chain must harden its systems and protect them from cyber-intrusions and hacks, which should be an enterprise-wide concern. \uf0b7 Cognitively enabled: The AI platform becomes the modern supply chain's control tower by collating, coordinating and conducting decisions and actions across the chain. Most of the supply chain is automated and self-learning. \uf0b7 Comprehensive: Analytics capabilities must be scaled with data in real time. Insights will be comprehensive and fast. Latency is unacceptable in the supply chain of the future. Many supply chains have begun this process, with participation in cloud-based commerce networks at an all-time high and major efforts underway to bolster analytics capabilities. 12.5 SUMMARY The advancement in technology changed the market paradigm, and now a customer modifies the rules of the selling process. CRM software emerged like a solution that facilitates the paperwork, improve business procedures and communicates with clients for diving into their interests. However, in CRM the notion of \u2018customer\u2019 is not only distinguished as a person but also like the whole company as well. Key account management (KAM) is the process of planning and managing a mutually beneficial partnership between an organization and its most important customers. Key accounts are significant to an organization\u2019s sustainable, long-term growth and require a 2 3 8","substantial investment of both time and resources. Salespeople must develop a clear strategy and program structure to serve and grow these strategic accounts. Supply chain management is the handling of the entire production flow of a good or service \u2014 starting from the raw components all the way to delivering the final product to the consumer. A company creates a network of suppliers (\u201clinks\u201d in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users. Key Account Management is a strategic approach distinguishable from account management or account-based selling and should be used to ensure the long-term development and retention of strategic customers. Productivity and efficiency improvements can go straight to the bottom line of a company. Good supply chain management keeps companies out of the headlines and away from expensive recalls and lawsuits. In SCM, the supply chain manager coordinates the logistics of all aspects of the supply chain which consists of the five parts. 12.6 KEYWORDS B2B CRM stands for Business to Business Customer Relationship Management and refers to systems, technologies, strategies, and processes that help B2B companies manage their relationships with existing and potential customers. Key account management (KAM) is the process of planning and managing a mutually beneficial partnership between an organization and its most important customers. Key accounts are significant to an organization\u2019s sustainable, long-term growth and require a substantial investment of both time and resources. Salespeople must develop a clear strategy and program structure to serve and grow these strategic accounts. Supply chain management is the handling of the entire production flow of a good or service \u2014 starting from the raw components all the way to delivering the final product to the consumer. A company creates a network of suppliers (\u201clinks\u201d in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users 12.7 LEARNING ACTIVITY \uf0b7 Define Supply chain management. ___________________________________________________________________________ ___________________________________________________________________________ \uf0b7 State the purpose of B2B in CRM system ___________________________________________________________________________ _______________________________________2____________________________________ 3 9","12.8 UNIT END QUESTIONS A. Descriptive Questions Short Questions \uf0b7 How do B2C and B2B clients differ? \uf0b7 What are B2B and B2C? \uf0b7 What is the purpose of a B2B CRM system? \uf0b7 Why Key Account Management? \uf0b7 How does supply chain management work? Long Questions \uf0b7 Describe the Importance of CRM in B2B and B 2 C Markets. \uf0b7 What are the B2C CRM Benefits \uf0b7 Explain the difference between Key Account Management and Sales \uf0b7 Discuss about the Key Account Management Strategy Analysis B. Multiple Choice Questions 1. ___ is the latest, new generation direct marketing software that helps marketers to automate their marketing activities. a. Enterprise Marketing Automation b. Customer Support Management c. Wholesale Marketing Automation d. Supply Management 2. EMA is designed to ___ the processes like designing, implementing and analyzing direct marketing campaigns which are sophisticated in nature a. Automate b. Implement c. Execute d. Install 3. Which among the following is defined as an ability to track and respond to clients in an individualized manner? a. Personalization b. Automation c. Inbound management d. Outbound management 4. The ___ e-mail management is totally considered as a service oriented activity. a. Inbound b. Outbound c. Client d. Server 2 4 0","5. ___ Helps the organizations to form and perform permission-based marketing campaigns. a. Outbound e-mail management b. Sales detail e-mail management c. Inbound e-mail management d. Customer-related e-mail management Answers 1-a, 2-d, 3-a. 4-c, 5-d 12.9 REFERENCES References book \uf0b7 Aswathappa, K. (2002). Customer Relationship Management.New Delhi: Tata McGraw-Hill. \uf0b7 Dessler, G. (2012). Customer Relationship Management.New Delhi: Prentice-Hall of India. Website \uf0b7 http:\/\/www.slideshare.net\/sreenath.s\/evolution-of-crm \uf0b7 http:\/\/www.oppapers.com\/subjects\/different-kinds-of-approaches-to-crm- page1.html 2 4 1","UNIT \u2013 13CRM PRACTICES STRUCTURE 10.0 Learning Objectives 13.1 CRM practices and application in Banking Industry 13.2 Retail Industry 13.3 Aviation Industry 13.4 Summary 13.5 Keywords 13.6 Learning Activity 13.7 Unit End Questions 13.8 References 13.0 LEARNING OBJECTIVES After studying this unit, you will be able to: \uf0b7 Discuss aboutCRM practices \uf0b7 Identify application in Banking Industry \uf0b7 State the need and importance of Retail Industry \uf0b7 List the functions of Aviation Industry 13.1 INTRODUCTION CRM is the abbreviation of Customer Relationship Management. It is one of the most important elements in any business. Simply, it is nothing but maintaining the relationship with your customers. Customer relationship management is not a new thing to learn. But the banking sector needs to give extra importance to this element of business. In the banking sector, CRM practices are becoming more and more important. If a bank can manage their customer\u2019s relationship in a very professional manner, then that bank will have a competitive advantage in the market. In the banking sector, there are so many customers that the banks need to maintain relationships with them. Those customers have different kinds of needs and requirements. So at some point, the banks need to understand the needs and requirements of their customers. So that they can provide them with the best services and products. Retailing is the combination of activities involved in selling or renting consumer goods and services directly to ultimate consumers for the42ir personal or household use. In addition to 2","selling, retailing includes such diverse activities as, buying, advertising, data processing, and maintaining inventory. This article explains the meaning of retail and its etymology. Understand the meaning and constituents of the retail industry and the role it plays in the economy of any nation. Retailing is the combination of activities involved in selling or renting consumer goods and services directly to ultimate consumers for their personal or household use. In addition to selling, retailing includes such diverse activities as, buying, advertising, data processing, and maintaining inventory. 13.2CRM PRACTICES AND APPLICATION IN BANKING INDUSTRY CRM Practices in Banking Sector Following are a few important points that you must know about CRM practices in banking sector: 1) Banks must have some kind of system or software that helps them to keep track of all the customers\u2019 information like account number, savings details, loan details, etc. This kind of software will help them to manage all their customers\u2019 information in an organized manner. 2) Banks need to provide better services to their customers like providing products on time, resolving their issues on time, etc. This will increase the customer\u2019s satisfaction level and ultimately it will increase the profit for the banks as well. 3) The banks must have some kind of system which helps them to understand their customer\u2019s requirements and then focus on providing those requirements to them so that they can be satisfied with the products and services provided by the bank. This kind of activity will help them to increase their customer retention rate as well as profitability rate at the same time. 4) Today\u2019s system is moving towards digitalization which means almost everything is available in digital form nowadays like music, video games, movies, etc are available through the internet or CDs or DVDs only not in physical forms. In banking also, everything is available through the internet nowadays like opening an account, applying for the loan, etc is done just through the internet, not physically visiting any branch for those activities. So if a bank wants to survive in today\u2019s competitive market then it must move towards digitalization otherwise its existence will become very tough or impossible there Some of the most important CRM practices in the Banking Sector \uf0b7 To develop a strong relationship with the customers by providing them with good quality products and services, profession42al behavior, and good communication skills. 3","\uf0b7 To develop long-lasting relationships with the customers by providing them with regular information about a new product or service notification. \uf0b7 Also, to develop a relationship with the customers by providing them with prompt service, continuous information about their accounts details. 13.3RETAIL INDUSTRY According to Phillip Kotler, \\\"Retailing includes all the activities involved in selling goods or services to the final consumers for personal and non-business use.\\\" A retailer or a retail store is any business enterprise whose sales volume comes primarily from retailing. A retailer may primarily sell goods such as a grocery store or a bookstore, or a retailer may primarily sell services such as a beauty parlor or a theatre. Retailers are business firms engaged in offering goods and services directly to consumers. In most\u2014but not all\u2014 cases, retail outlets are primarily concerned with selling merchandise. Typically, such businesses sell individual units or small groupings of products to large numbers of customers. A minority of retailers, however, also garner income through rentals rather than outright sales of goods (as in the case of enterprises that offer furniture or gardening tools for rent) or through a combination of products and services (as in the case of a clothing store that might offer free alterations with the purchase of a suit). Retailing is thus a combination of activities involved in selling or renting consumer goods or services directly to the ultimate customers for their personal or household use. In addition to selling, retailing includes such diverse activities as buying, advertising, data processing, manpower management, and maintenance of inventory. The Retail Industry: Globe: Retailing is the largest private sector in the world and the prime mover of the economy. It accounts for almost 10% of the GDP of most developed nations. Retailing globally is huge-$6.6bn and much of it is organized. The retail industry is predominant in developed countries like the USA, UK, etc. The industry is also a major employer in most of the economies- up to 16% in the US, 15% in Brazil, 12% in Poland, and 7% in China. Typically, the top 250 global retailers have combined sales of approximately $4 trillion USD. The top ten retailers account for $1.2 trillion, or about 30% of those sales. United States of America: In the USA, the retail industry employs about 22 million people and generates more than three trillion dollars in sales annually. The United States retail sector features the largest number of large, lucrative retailers in the world. A 2012 Deloitte report published in STORES magazine indicated that of the world's top 250 largest retailers by retail sales revenue in the fiscal year 2010, 32% of those retailers were based in the United States and that 32% accounted for 41% of the total retail sales revenue of the top 250. The retail industry is a massive part of the overall U.S. 2economy and in 2005, retail establishments accounted for 18 percent of all nonfarm privat44e-sector jobs and had sales of $3.2 trillion.","Many retail niches are characterized by a healthy population of smaller enterprises and the vast majority of retail employees in the United States work at establishments with fewer than 20 employees. There is also a huge concentration of large retail firms in the USA - 10 % of food and general merchandise firms account for over 40% of all retail sales. Some of these large retail chains eliminate the whole sellers and buy direct from the manufacturers making the supply chain very efficient. Japan: In Japan, on the other hand, small firms and stores govern the retail sector. The wholesale channel is relatively much larger. Merchandise has to pass through three to four- channel members before reaching the store. This results in reduced efficiency and higher manpower and distribution costs. In Japan, 20% of the workforce is employed in retail as against 10% in the USA. Europe: In Europe, there is a high concentration of retail sales in some countries like the UK and Germany. In the UK, over 80% of retail sales in food are accounted for by 5 large chains. In Southern Europe, the market is more fragmented and we find traditional small family- owned stores dominating the markets. MARKET SIZE As per Kearney Research, India\u2019s retail industry is projected to grow at a slower pace of 9% over 2019-2030, from US$ 779 billion in 2019 to US$ 1,407 billion by 2026 and more than US$ 1.8 trillion by 2030. Revenue of India\u2019s offline retailers, also known as brick and mortar (B&M) retailers, is expected to increase by Rs. 10,000-12,000 crore (US$ 1.39-2.77 billion) in FY20. India\u2019s direct selling industry would be valued at US$ 2.14 billion by the end of 2021. According to the Retailers Association of India (RAI), the retail industry achieved 93% of pre-COVID sales in February 2021; consumer durables and quick service restaurants (QSR) increased by 15% and 18% respectively. After an unprecedented decline of 19% in the January-March 2020 quarter, the FMCG industry displayed signs of recovery in the July-September 2020 quarter with a y-o-y growth of 1.6%. The growth witnessed in the fast-moving consumer goods (FMCG) sector was also a reflection of positivity recorded in the overall macroeconomic scenario amid opening of the economy and easing of lockdown restrictions. E-Retail has been a boon during the pandemic and according to a report by Bain & Company in association with Flipkart \u2018How India Shops Online 2021\u2019 the e-retail market is expected to grow to US$ 120-140 billion by FY26, increasing at approximately 25-30% p.a. over the next 5 years. India has the third-highest number of e-retail shoppers (only behind China, the US). The new-age logistics players are expected to d2eliver 2.5 billion Direct-to-Consumer (D2C) shipments by 2030. The Ayurveda Company (T4AC), a direct-to-consumer (D2C) beauty and 5","wellness brand, has raised US$ 3 million from Wipro Consumer Care Ventures, to expand its production capabilities and enter the retail sector. Online used car transaction penetration is expected to grow by 9x in the next 10 years. During the festival period in 2020, Amazon, Flipkart and various vertical players sold goods worth US$ 9 billion despite the pandemic onslaught. DEVELOPMENT SCENARIO Retail tech companies supporting the retail sector with services such as digital ledgers, inventory management, payments solutions, and tools for logistics and fulfillment are taking off in India. In the first nine months of 2021, investors pumped in US$ 843 million into 200 small and mid-sized retail technology companies, which is an additional 260% of capital compared to the entire 2020. 91 Squarefeet, a retail store development business, has worked with over two dozen companies, including Tata, Aditya Birla Group, and Reliance Retail, illustrating the quick pace with which brick-and-mortar stores are being opened. In March 2022, Reliance Brands has bought the India franchisee rights and the current Sunglass Hut retail network from DLF Brands. DLF would invest about Rs. 2,000 crore (US$ 262.2 million) in Gurugram and Goa to build two new retail complexes. In November 2021, Department for Promotion of Industry and Internal Trade announced that it is working on a regulatory compliance portal to minimise burdensome compliance processes between industries and the government. In October 2021, retailers in India increased by 14% compared with last year In September 2021, New Delhi-based e-commerce enablement startup GoKwik raised US$ 5.5 million through Matrix Partners India. Dukaan, another startup that helps businesses digitise operations, received a US$ 11 million investment led by 640 Oxford Ventures. The Indian retail trading has received Foreign Direct Investment (FDI) equity inflow totalling US$ 3.61 billion during April 2000- June 2021, according to Department for Promotion of Industry and Internal Trade (DPIIT). IWith the rising need for consumer goods in different sectors including consumer electronics and home appliances, many companies have invested in the Indian retail space in the past few months. India\u2019s retail sector attracted US$ 6.2 billion from various private equity and venture capital funds in 2020. 2 4 6","According to a report by PGA Labs and Knowledge Capital, investors had put in US$ 1.4 billion into D2C companies between 2014 and 2020. The sector recorded an investment of ~US$ 417 million in 2020. In October 2021, Reliance announced plan to launch 7-Eleven Inc.\u2019s convenience stores in India. In October 2021, Realme launched 100 new exclusive stores across India to expand and strengthen its footprint in the country. In October 2021, Reliance Retail introduced Freshpik, a new experiential gourmet food store in India, to expand its grocery segment in the ultra-premium category. In October 2021, Plum, the direct-to-consumer beauty & personal care brand, announced plan to launch >50 offline stores across India (by 2023) to expand its customer base. In July 2021, Dyson announced to increase its retail presence to 12 stores. Tanishq, Shoppers Stop and Bestseller India (sells fashion brands Vero Moda, ONLY and Jack & Jones) plan to add 10-35 stores in FY22. In 2021, Lenskart received US$ 315 million funding from Falcon Edge Capital, Temasek Holdings, KKR. The company plans to use the proceeds to expand its retail footprint in Southern India. Flipkart hired 23,000 individuals in India between March and May 2021 in various capacities across its supply chain, including delivery executives, to strengthen the supply chain. In May 2021, Big Bazaar rolled out its two-hour delivery service in small cities, such as Bhopal, Mangalore, Raipur, Ranchi, Guwahati, Kanpur, Lucknow, and Varanasi, and recorded a boost in orders over the past weeks. In April 2021, Flipkart expanded its hyperlocal delivery service Quick to six new cities including Delhi, Gurugram, Ghaziabad, Noida, Hyderabad, and Pune as the demand for essential goods on e-commerce platforms surges amid the second wave of the pandemic. 13.4AVIATION INDUSTRY The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India has become the third largest domestic aviation market in the world and is expected to overtake UK to become the third largest air passenger* market by 2024^. 2 4 7","MARKET SIZE India is expected to overtake China and the United States as the world's third-largest air passenger market in the next ten years, by 2030, according to the International Air Transport Association (IATA). Further, the rising demand in the sector has pushed the number of airplanes operating in the sector. The number of airplanes is expected to reach 1,100 planes by 2027. India\u2019s passenger* traffic stood at 188.89 million in FY22. In FY22, airports in India pegged the domestic passenger traffic to be 166.8 million, a 58.5% YoY increase, and international passenger traffic to be 22.1 million, a 118% YoY increase, as compared to FY 2020-21. Between FY16 and FY22, freight traffic increased at a CAGR of 2.52% from 2.70 MMT to 3.14 MMT. Freight traffic on airports in India has the potential to reach 17 MT by FY40. In FY22, number of aircraft movements stood at 1,757,112. To cater to the rising air traffic, the Government of India has been working towards increasing the number of airports. As of 2022, India had 129 operational airports. India has envisaged increasing the number of operational airports to 190-200 by FY40. 2 4 8","INVESTMENTS \uf0b7 According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), FDI inflow in India\u2019s air transport sector (including air freight) reached US$ 3.54 billion between April 2000-March 2022. \uf0b7 The government has allowed 100% FDI under the automatic route in scheduled air transport service, regional air transport service and domestic scheduled passenger airline. However, FDI over 49% would require government approval. \uf0b7 India\u2019s aviation industry is expected to witness Rs. 35,000 crore (US$ 4.99 billion) investment in the next four years. The Indian Government is planning to invest US$ 1.83 billion for development of airport infrastructure along with aviation navigation services by 2026. \uf0b7 India aims to have 220 new airports by 2025, said, Mr. Jyotiraditya Scindia, Minister of Civil Aviation. Cargo flights for perishable food items will also be increased to 30% with 143 new flights in the coming years. \uf0b7 In 2022, Mumbai International Airport Ltd (MIAL) has raised US$ 750 million debt in a private placement from US-based private asset manager, Apollo Global. \uf0b7 Adani Airport Holdings (AAHL) has raised US$ 250 million in May 2022 for capital expenditure and for the development of six airports that it currently manages. \uf0b7 In February 2022, the Airports Authority of India (AAI) and other airport developers have set a capital outlay target of Rs. 91,000 crore (US$ 12.08 billion) for the development of the airport industry. \uf0b7 AAI plans to invest Rs. 25,000 crore (US$ 3.58 billion) in next the five years to augment facilities and infrastructure at ai2rports. 4 9","\uf0b7 UK group to invest Rs. 950 crore (US$ 145.9 million) in Turbo Aviation's new airline TruStar \uf0b7 In October 2021, Tata Sons won the bid to acquire state-run Air India by offering Rs. 18,000 crore (US$ 2.4 billion) to acquire 100% shares. \uf0b7 In October 2021, Akasa Air, a start-up airline, received a \u2018No Objection\u2019 certificate from the Ministry of Civil Aviation to launch operations. The start-up plans to commence its operations from mid-2022. \uf0b7 In September 2021, JetSetGo, a private aviation company, plans to make its flight operations carbon neutral by 2024 through a carbon management programme. \uf0b7 In August 2021, Indira Gandhi International Airport was declared the best airport in India and Central Asia at Skytrax World Airport Awards. \uf0b7 In June 2021, SpiceJet announced its ambitious target to fly 100 million domestic passengers on Sustainable Aviation Fuel (SAF) blend by 2030 under the aegis of World Economic Forum (WEF). \uf0b7 In April 2021, Boeing, an aircraft manufacturer, announced that it has partnered with the Indian Aviation Academy (IAA) and the University of Southern California (USC) to conduct safety management system training sessions for all stakeholders in the domestic aviation industry. \uf0b7 In March 2021, the government announced plan to set up two water aerodroames in Assam and four water aerodromes in Andaman & Nicobar Islands this year to boost tourism and connectivity. \uf0b7 In March 2021, the government submitted a proposal to develop a water aerodrome project at the Ujjani Dam, under the Ministry of Civil Aviation\u2019s UDAN-RCS (regional connectivity scheme). \uf0b7 On March 25, 2021, Union Minister of Civil Aviation Hardeep Singh Puri inaugurated the Kurnool Airport, Orvakal, Andhra Pradesh, in a virtual ceremony. The flight operations at Kurnool airport will commence on March 28, 2021 under the Regional Connectivity Scheme \u2013 Ude Desh Ka Aam Nagrik (RCS-UDAN). UDAN flights carried 34,38,955 passengers till 7th November 2021. \uf0b7 According to WTTC, India ranked 7th among 185 countries in terms of travel & tourism\u2019s total contribution (4.7%) to the GDP in 2020. The contribution was worth US$ 121.9 billion. GOVERNMENT INITIATIVES Some major initiatives undertaken by the Government are: \uf0b7 \u2022 In the Union Budget 2022-23: o Rs. 10,667 crore (US$ 1.38 billion) has been allocated to the Ministry of Civil Aviation. 2 5 0"]