Customer Relationship Management: Case of Flipkart.com V/S Myntra.com

I am a student of Marketing Management and I have keen interest in Online shopping as well. So I use to spend a lot of time in studying online shopping trend and marketing strategies. I do online shopping as well. Today I want to present a case of Flipkart and Myntra.
Customer Relationship Management is an important tool to retain customers and to make them loyal. Companies spend a lot of money in this department. Today I want to distinguish the CRM of Flipkart.com and Myntra.com through a small case.
Here is the case. Few weeks earlier I put an order on Myntra.com. I bought a jacket of Rs 2000 and applied a coupon of 30% and final price was 1400 INR. I ordered the jacket and chose Cash on Delivery. I got confirmation mail and was waiting for my jacket. But in the evening I got another mail from Myntra.com quoting that the following product was damaged one and they could not afford to send the same and no extra piece was there in their inventory. So they cancelled my order and gave coupon of 30%. I saw the mail. They clearly mentioned that product quality was so poor that they did not wish to send. I do not know the exact reason but they made it clear or tried to give a message that they do check their product before shipping.
Myntra - Image
Next morning I saw 2 missed calls on my mobile and when I called it back I found that it was from Myntra promotional call so I cut it. Soon a lady called me back and asked me to excuse them to not to send the product. She described why they can’t send it and about the coupon they gave to me. I was also satisfied. Myntra.com did not deliver value but they made me to trust their product. Though earlier I have purchased products worth RS 10000 from Myntra.com and have lot of trust on their shipped products, still it pushed me to be loyal to brand Myntra.com.
Now 2nd scenario. Next day I put an order on Flipkart.com. I bought a Adidas Sweatshirt worth Rs 2000 with 50% off. The product was very handsome and brand was Adidas. I purchased without having a second thought and received the product 2 days later.
Flipkart - Image
Here a snapshot of what I received.
Flipkart Blot - Image
Poor Adidas Poor Flipkart.com. Now I am comparing both scenarios. In one hand Myntra.com checked the product and found damaged and did not ship and called me to let me know. On the other hand Flipkart.com sent me a branded sweatshirt with blot on it. I was totally surprised. But I could not afford to send it back because I could not get such a cheaper offer and product was Out of Stock. So I knew that Flipkart would not send another one. They will refund my money which I did not want. So my friends suggested me to wash it. I put some chemical and wash the blot (दाग) after 15 minutes. I thought if it (दाग) goes then ok otherwise I will send it back. I did not tear tag and other thing. But luckily when I dried it out, it went and now it looks like a new one.

Conclusion:

In first scenario the brand was not known. It was Fort Collins. But in Flipkart’s case both brand as well as vendor are having a good reputation in market. Flipkart.com need to check their product before shipping. It would hardly take 2 minute. In case of electronics items you cannot open the case but you can check cloths. If customer received damaged product, it gave negative feedback and ultimately you have to pay for it. If customer sends it back, you have to return money and incentives which will take extra human resource as well as cost to company to give him shipping cost. So I would suggest that you should have a quick eye on the product before you ship. Recently Samsung sent a stone instead of mobile phone and the customer dragged the case to court. Similar case happened with Apple. A customer gave an order of 2 iPhone of worth 2000 $ and after few days she received 2 apples (fruits) again the case reached to court. If Samsung and Apple check what they are sending, they could save money and reputation.
Flipkart is also doing very well. They also have a dedicated CRM team. But somewhere in my mind Myntra.com won more trust than Flipkart.com.

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6 Markets Model in Relationship Marketing

The 6 market model helps the organization to study about the stakeholders and key market domain that may be important to them. If an organization wants to grow and sustain, it has to maintain its relation with internal as well as external environment. Through the analysis of all 6 markets, managers can kind the critical markets and the opportunity in each market. In order to visualize and understand each market’s importance Payne and Holt(2001) gave this 6 markets model.


Source:Lindgreen, Adam (2004)

Let’s explain one by one.
1. Customer Market: This market contains buyer, intermediates, final customers and retailers. They are our final consumers for a product. So they are the most important entity for any business. We need to retain them as long as we can. We also need to attract new customers. Ultimately creating brand loyal customers is our main goal. We can add more values to our product.
Customer Market directly influences an organization. If customers are not satisfied with our product, we can not retain them. In case of Service Marketing customers’ satisfaction is more crucial.

2. Influence Market: Influence market includes stakeholders as well as third parties. Customers who have bought our product must give feedback to their friends, relatives and neighbors. For any organization these customers are their influencers and when third party like supply partners and retailers influence our customer to buy our product, they are called value added influencers. They may be TV reporters, Shopkeeper, Article writers, Analysts etc.
Sometimes our own competitors also act as our influencer. Their ads can help an organization to add more customers and their promotional activities can decline our sale.

3. Referral Market: Referral marketing is when we buy something after being referred by our friends and relatives. In general we can understand this term as “Word of Mouth”. In case of Service Marketing, Referral marketing is very common. We can also find this in our daily life. We can get hundreds of advises when we look for a doctor. Everyone in our family would suggest a different Physician. So this is what Referral Marketing is.
So Referral Market can further be divided into 2 categories: Customer and Non Customer Referral Markets. So this is the cheapest way of promotion and effective too. So our main priority should be “Customer Satisfaction”.

4. Supplier Market: Suppliers are like partners to an organization. They do supply the crucial raw materials and parts. We need to develop an strategic alliance with them. We need to maintain a good relation with them as well.

5. Employee/Recruitment Market: This market helps an organization to keep the best people who can add values to the organization. They should be talented, experienced, skilled and royal. In IT industry the firm needs innovative and skilled persons but in case of Service Markets firms need skilled as well as experienced people. So we can say that people inside the firm also affect the profitability. An organization always looks for individuals with particular skills; who are highly productive, innovative, and effective; and who share a given organization’s values.

6. Internal Market: This kind of market applies to the customers and employees within the organization. Actually there should be proper harmony among the employee and suppliers and customers so that organization can work together and achieve its mission.
Specifically in terms of relationship marketing, those within the organizations must understand how the impact relationships between the firm and other parties, do so in a way that reflects and supports the organization’s long-term goals, and resolve conflicts of interest accordingly.

Payne, Adrian, David Ballantyne, and Martin Christopher (2005) summarize this 6 Markets model as:
(1) “Customer markets” include existing and prospective customers as well as intermediaries like retailers, wholesalers;
(2) “Referral markets” include two main categories – existing customers who recommend their suppliers to others, and referral sources, or “multipliers”, such as an accounting firm who may refer work to a law firm;
(3) “Influencer markets” include financial analysts, shareholders, the business press, the government, and consumer groups;
(4) “Employee markets” concerns with attracting the right employees to the organization);
(5) “Supplier markets” include traditional suppliers as well as organizations with which the firms has some form of strategic alliance); and
(6) “Internal markets” (the organization including internal departments and staff (Christopher et al., 1991).

References:
1. Lindgreen, Adam. “The design, implementation and monitoring of a CRM programme: a case study.” Marketing Intelligence & Planning 22.2 (2004): 160-186.
2. Payne, Adrian, David Ballantyne, and Martin Christopher. “A stakeholder approach to relationship marketing strategy: The development and use of the “six markets” model.” European Journal of Marketing 39.7/8 (2005): 855-871.
3. Relationship Marketing: Creating Stakeholder Value by Authors: Martin Christopher, Adrian Payne and David Ballantyne Taylor and Francis: 2002

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