CRM ACTIVITIES OF h&m

Table of Contents:-

Sr. No.

Contents

Pg.no.

1

About CRM

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2

Evolution of CRM

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3

About H&M

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4

Company Profile

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4 P‟s

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Brands & collaborations

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Services Offered at digital

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8

Services offered at Store(online & offline)

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9

POP & POD

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10

Loyalty Programs

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About CRM:While the phrase customer relationship management is most commonly used to describe a businesscustomer relationship, CRM systems are used in the same way to manage business contacts, clients, contract wins and sales leads. Customer relationship management solutions provide you with the customer business data to help you provide services or products that your customers want, provide better customer service, crosssell and up sell more effectively, close deals, retain current customers and understand who the customer is. Technology and the Web has changed the way companies approach CRM strategies because advances in technology have also changed consumer buying behavior and offers new ways for companies to communicate with customers and collect data about them. With each new advance in technology -- especially the proliferation of self-service channels like the Web and smart phones -customer relationships is being managed electronically. Many aspects of CRM relies heavily on technology; however the strategies and processes of a good CRM system will collect, manage and link information about the customer with the goal of letting you market and sell services effectively. Organizations frequently looking for ways to personalize online experiences (a process also referred to as mass customization) through tools such as helpdesk software, email organizers and different types of enterprise applications. The Evolution Of Relationship Management CRM must start with a business strategy, which drives changes in the organization and work processes, which are in turn enabled by Information Technology. The reverse does not work. Have you ever seen a company automate its way to a new business strategy? The seeds of modern-day CRM were sown in the 1960s. Academic researchers found that the "4 Ps" marketing framework--product, price, place and promotion was less valuable for industrial or service-centric businesses where ongoing relationships were critical. By the 1980s, "Relationship Marketing" was used to describe this new focus on understanding customer segments, delivering ongoing quality service, and achieving high customer satisfaction. Relationship marketing was about "putting the customer in the middle of the business circle," in the words of Dick Lee, principal of St. Paul-based Hi-Yield Marketing. "As part of that early relationship marketing movement, we had untold frustration because we didn't have the technology to support what we were doing," Lee says. "It really wasn't until mid-90s that we had the technology we needed." In the 1990s, computer systems were deployed to support sales and service processes. Sales Force Automation systems quickly evolved from simple contact managers, while Customer Service and Support systems became the backbone of automated call centers. By the mid-1990s, "CRM" became the umbrella term as it became clear that sales and service systems should share information. More recently, Enterprise Marketing Automation (EMA) 2

applications joined the CRM fold, including systems for customer analysis and marketing campaign management. By the late-1990s, the real action was outside the corporate firewall. Explosive growth in Internet usage spawned a proliferation of e-business applications to manage online customer and partner relationships, often called "e-CRM" and "Partner Relationship Management," respectively. Now, "multi-channel CRM" systems were available to, theoretically, support direct, Internet, and partner channels, while allowing users to use whatever mode of communication they pleased. Paul Greenberg, a leader in Social CRM defines it as such: “CRM is a philosophy & a business strategy, supported by a technology platform, business rules, workflow, processes & social characteristics, designed to engage the customer in a collaborative conversation in order to provide mutually beneficial value in a trusted & transparent business environment. It‟s the company‟s response to the customer‟s ownership of the conversation.”

Source: - Article - The Evolution of CRM September 12, 2011Mitch Lieberman

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Who‟ is about Access to data and systems Front line Employees and their Managers were the only ones to have access to the technological components of CRM. Looking forward, giving access to information and insights to as many people as reasonable needs to be considered. Depending upon where you on along the journey, the type of industry you are in and other factors will determine the specifics of who needs access to the system and data. „What‟ is all about the end-to-end process End-to-end processes, specifically in the modern ear, have traditionally been linear and inflexible. The lack of flexibility in process leads to inefficiencies. What CRM needs to do, in order to keep up is to help organizations adapt to the needs of the customer and coordinate internally and across channels of communication „When‟ is about the duration and durability of relationships It is time to increase the duration and durability of your relationship with your customers. We need to move beyond short term, tactical myopic focus of „a Sale, an Issue or a Complaint‟. If the lifetime value and long term engagement are considered, the CRM will have really progressed. „Where‟ is about the location and context of interactions Customers can and will communicate with you any which way they can. Customers were taught to use the phone, instructed on the finer points of an IVR and coerced into using email and web forms. Now it is their turn! They not only want to add more channels to the mix, they expect you to be aware of all the other channels and are quite tired of typing in their 14 digit code on a touch tone phone, only to repeat to the agent! „Why‟ – Because (sorry, could not resist)! This should be the easiest to make clear. In one version of the diagram I simply left the past blank, because people were never clear why CRM was implemented and in the future I simply put “Because”. Maybe that is a better fit? It is really about changing the focus of the initiative from people and roles inside the organization to delivering value to people outside the organization. Is this customer centric? It can be, but that buzzword compliant phrase comes with its own baggage. „How‟ should we communicate? The hardest part is the how. There is no secret sauce; it takes hard work and planning. There is no infomercial, which promises nirvana for no effort expended. The fundamental do start with how and when you communicate outside of your organization. Communications need to move beyond broadcast, fractured and reactive. It is time to focus on listening, learning, engaging, and talking with your customers – being collaborative with a specific end-point. This is not easy, and requires the largest mind shift of the whole lot!

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About H&M:Hennes & Mauritz AB (H&M) is a multinational company based in Sweden. It went public on the Stockholm Stock Exchange in 1974. Founded by Erling Persson in 1947, it was initially called Hennes, the Swedish word for “hers”, and sold only women's clothing. In 1968, the company was renamed to Hennes & Mauritz and, since then, has diversified over the years and expanded its product portfolio to include women‟s wear, menswear, children wear, footwear, accessories, cosmetics and home furnishings. With years of development and acquisitions, the company is now comprised of five independent brands: H&M, COS, Monki, Cheap Monday, and Weekday (Hennes & Mauritz AB, n.d.). In the 1950s, H&M began global expansion by entering neighboring countries throughout Europe. During the 1980s, while continuing their European expansion, H&M bought Rowells, a mail order company to begin catalogue sales. Their first U.S. store was opened in 2000 on Fifth Avenue in New York marking the start of their expansion outside Europe. In 2006, a major expansion of online and catalogue sales began. However online sales were limited to European countries. In 2007, H&M entered the Asian market by opening its first stores in Hong Kong and Shanghai (Hennes & Mauritz AB, n.d.). In 1998, H&M started to use famous models in their advertising campaigns. In 2004, H&M launched its first designer collaboration, partnering with Karl Lagerfeld, creative director for Chanel. The success of the Lagerfeld collection lead H&M to collaborate with other designers and celebrities including Stella McCartney, Madonna, Jimmy Choo, Versace and David Beckham among others to create collections that go on sale in a limited number of stores and with a limited number of products. Designer collaboration has become part of H&M‟s yearly merchandise development cycle (Hennes & Mauritz AB, n.d.). As of 2011, H&M has around 2,500 stores in over 40 countries and employed around 94,000 people. Its sales including VAT totaled 129 billion (SEK) for the fiscal year 2011. In 2012, H&M was ranked 58th in Deloitte‟s Global Powers of Retailing and third in the apparel/footwear specialty category as measured by retail sales. Production is outsourced to around 700 independent manufacturers through its local production offices in Asia and Europe. H&M plans to continue its expansion by opening stores in Bulgaria, Latvia, Malaysia, Mexico and franchising in Thailand. It also plans to introduce e-commerce in the U.S. Additionally, a new chain, “& Other Stories”, is planned to be launched to target the luxury high end market (Hennes & Mauritz AB, 2011). On November 15th, 2002, the highly-anticipated Maison Martin Margiela for H&M collection was launched. “Unlike H&M‟s previous designer collaborations, the Maison Martin Margiela collection is unique in that it features solely re-editions of the house‟s most iconic and best-selling pieces. These items cover more than 23 years of fashion, from the early beginnings of the label to the present” (Carreon, 2012).

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Company Profile:

Industry:

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Apparel/Footwear Retail

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Founded:

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1947

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Country:

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CEO:

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Website:

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Employees:

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72,276

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Sales:

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$18.13 B

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Powerful Brand:

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#42

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Competitors:-

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Zara, Primark, Bear & pull etc.

Sweden 

Karl-Johan Persson www.hm.com

4 P‟s:Product H&M AB (originally known as Hennes & Mauritz) is a Swedish clothing company, known for retail of low-cost designer clothings. It was established in Västerås in Sweden in 1947 by Erling Persson, though at the time it only sold women's clothing and was called Hennes, which means "hers” in Swedish. Persson acquired the premises and inventory of a Stockholm hunting equipment store named Mauritz Widforss in 1968. Persson expanded into menswear and renamed the store to Hennes & Mauritz, later abbreviated to H&M (www.hm.com). H & M is the world‟s favourite and preferred designer of apparels and clothing for man and women. In addition, H & M is also known not only for their fashion cosmetic but because of the quality of the clothes designed durability and the funkiness of its clothes. Through the online stores, H&M provides the regional, continental and European Market an exclusive clothing designs. The main goal of H&M is to provide innovative designs of apparels and clothes for different types of people in different countries all over the world. The company is known because of its strategy of providing clothing designs exclusively for each country‟s preferences and needs. Pricing H & M is believed to have advantages when it comes to its pricing tactic. In order to be known into the market place and as a new entrant, the company will provide its target market with an affordable cost while providing them a high quality products and services. The company will be given the customer and client a price that is lesser than its competitors so that the consumer will be enhanced to buy and patronize the H & M clothes and cosmetics.

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Placement/Distribution The H&M‟s products will be distributed directly to its clients and consumers in order to be known in the market place. In 2003, H&M announced its entry into the traditionally exclusive Milan fashion scene. It remains to be seen if H&M and other low-end retailers will be able to find a market there. In February 2004, The Gap, another prominent international retailer, sold off all of its German outlets to its competitor, H&M. H&M launched its first American outlet on March 31, 2000 on New York's famous Fifth Avenue. The first two H&M stores to appear on the West Coast of the US opened in San Francisco, California on November 19th, 2005. H&M opened its first Canadian store in Fairview Mall in Toronto and soon after, its store in Toronto's Eaton Centre was opened in March 2004. Following great financial success, H&M opened ten other stores within the Greater Toronto Area. Stores were also opened in Montreal in Spring 2006. H&M continued its expansion in the Canadian market and doubled the number of stores in 2006. It planned new markets include Barrie, Hamilton, London, Kitchener/Cambridge/Waterloo, St. Catharines and Windsor and Ontario market, Fairview (Pointe Claire) shopping centre, Rockland Centre, the Galeries d'Anjou and the Carrefour Laval. (www.hm.com) Promotion/Communication H&M use video advertisements, print advertisements and the concept of e-marketing to promote its products. These promotion and communication strategy will tend to meet the consumers form different places everywhere, especially those target markets or the consumers in the working place. The use of the Internet is changing technologically advanced marketing overnight while different industries have been trying to use it as part of their marketing strategy. It does not only reconfigured the way different firms do business and the way the consumers buy goods and services but it also become instrumental in transforming the value chain from manufacturers to retailers to consumers, creating a new retail distribution channel. E-marketing is a powerful tool used that can be used by H&M. E-marketing is defined as the process of achieving marketing objectives through the use of electronic communications technology (ICT). E-marketing or online marketing strategy can be used by H&M to market its products. Thus, the H&M has created its own website (www.hm.com). H&M use the e-marketing strategy is to keep in touch to different internet users and to be able to attract more clients and consumers. H&M use e-marketing to accelerate its business portfolio whether the user of the website is a customer, employee, stockholders, vendors, retailers or end customers.

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H&M Brands:-

H&M Collaborations:- Teaming up with famous guest designers (and the Sims) brings international hype to H&M.

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H&M services to connect with the consumers:

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The target customers of H&M belong to the group of fashionable and trendy consumers who see shopping as a social activity providing pleasure in their daily life. They acquire the most fashionable clothes each season and want to follow the trends without investing a lot of money. H&M belongs to a group of retailers, which learned how to drive the market by driving the consumers‟ behaviors instead of being driven by them. It adopts EDLP (everyday low pricing) strategy, H&M teaches fashion buyers to not wait for department-store sales but rather buy H&M low-price brand-name products. in addition to the prices, H&M changes customers‟ behavior by creating a thrilling shopping experience, The company renews its store inventory daily; therefore, even the customers who come to the store every day can expect to discover new deals on each shopping trip. Thus, H&M manages to keep their stores intriguing for its customers and to make them return more often than they would otherwise. In addition, they invited the top fashion designers in the industry such as Karl Lagerfeld or many to be their partners for designing the new collection. As a result, we believe H&M is successful in making the combination of the best design under the name of an inexpensive clothing label.

H&M Social Media Presence Objective: to make our fans recall about us and know we are always active. • Facebook/Google+ • Twitter • YouTube • Blog • LookBook.nu H&M Online Marketing Strategy Objective: to achieve Search Engine Optimization. • Search Engine Marketing on Google, Yahoo, Bing • Google Ad Words Campaign H&M Mobile Marketing Strategy Objective: Smartphone App development and get subscribers • •

Fashion studio Smartphone app H&M news app

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Online Website:-

Facebook Fan Page:-

Twitter Fan Following Page:-

Fashion Blogs H&M LIFE:10

YouTube H&M Account:-

Mobile Apps:H&M is very visible and active online. Actually, it uses the internet effectively to promote its product and get connected to its customers on a real-time basis. Its official Facebook Page has already had 11,973,473 likes and still counting. It also has 94,601 followers in its Twitter account, @hmusa, and 20,698 subscribers in its YouTube channel. Moreover, H&M applications for iPhone, iPad and Android are available for download online. For the latest news and event on H&M and its products, checkout its Newsletter page here.

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Services offered by H&M for consumers:- (online & store) H&M online store is only available to selected countries such as Austria, Denmark, Finland, Germany, Netherlands, Norway, Sweden, and UK. The shipping policies depend on the country and region. For United Kingdom, the shipping policies are as follow. For other counties, kindly check its respective policies on H&M site.     

Orders would be delivered within 4-6 working days following order confirmation. An additional of 2 days is added for rural postcodes. Shipping is available to residential addresses within UK only. At checkouts, customer can find an expected delivery date. Customers can edit their orders before shipping at “My H&M” or by calling Customer Service 0844 736 9000. The shipping cost is £ 3.90 regardless of the size and weight of your package. There is no extra charge if a single order results in subsequent deliveries.

H&M:

Payment Methods Accepted - Like the Shipping Policies of H&M, the payment methods also vary per region/countries. For other counties, kindly check its respective policies on H&M site. Payments for H&M UK could be done in three ways: 1. Card Payment  

Quick and Secure H&M accepts payments using Visa or MasterCard.

2. Payment Slip in Parcel  

No fees or interest Pay within 20days after invoice date

3. Monthly Invoice    

Try on first and pay later. No interest. Special offers are sent with the monthly invoice. Up to 45 days to make your payment

4. Monthly Installment     

No starting fee, no invoice fee. Split your payments over 12 months. You can use two payment free months per year. Shop more before you pay off your previous purchases. Special offers are sent with your installment statement. 12

H&M: Returns, Refunds & Exchange Policy - H&M UK offers a 28-day window for customers to decide if the item is right for them. It guarantees that any items(s), provided that they have been kept n a reasonable condition prior to their return, can be return for exchange or refund. This means the item(s) cannot be damaged, soiled, washed, altered or worn and that any labels or tags are still intact. All of H&M packages contain a return address label to be use when customers wish to send items back for exchange or refund.  

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Refund- Items returned by mail will be refunded within 30 days. The refund will be payable with the same payment method used during the purchase. Exchange- If exchanging a similar garment with a different size or color, there will be no additional charges. Just make sure to attach the return address label and the product is still in good condition. Exchanges or returns to H&M store- Online purchases can be exchanged or return to any H&M store, just remember to bring your delivery note.

H&M: Newsletter advantages:- It provides the service of H&M Fashion Newsletter which consumer can subscribe through putting up their email id and subscribing for the same. Subscribers are the first to know about anything new in fashion world, besides get 20% on next online purchase. Exclusive previews and style options. H&M: Online Trial room:- The online website provides fantastic services for online shopping experience.  

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Size guides for men‟s, women‟s and Kid‟s wear are given for all the possible outfits that one could try. It actually teaches the consumer how to appropriately measuring oneself and do the selection of size accordingly. Secondly during online shopping the consumers are allowed to select any one model out of the options given to them to select which would suit their personality and try the clothes on them so they can have an idea whether the same thing would look good on them and they can try out options. Thirdly they also give instructions in detail regarding the washing and general care of the garment depending on the fabric used in the apparel.

Some problems faced by consumers were basically the experience they had with the store. Some are listed down such as:Proper signage‟s regarding new collection in store. Less staff members in store on the floor. Inappropriate Store design format which should be changed as per the amount that needs to be displayed. Shelves are not properly arranged with the merchandise which makes it difficult for customer to trace the merchandise which leaves him irritated and disappointed. The only sizes they stock are sizes 2-8, with the majority of items being size 2, 4, and 6. RARELY is a size 10 or 12 available.

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General point of parity & points of difference:POP -

Multiple Retail Store Product Variety Website Trendy Fast fashion Appropriate Price Range

POD -Good Quality/ Price Ratio/ Large product variety - Attractive Website (Virtual Trial rooms) -Partnership with Designers -Fashion Magazine & newsletter -Social Media Advertising

H&M Loyalty Program:H&M PLUS H&M‟s target market believes that customer service is an incredibly important part of the shopping experience. However, customer service through the use of employees can be very expensive. To keep employee costs low and add the value of customer service, we believe that loyalty program should be implemented. This loyalty program will consist of consumer cards, point earning deals, unique rewards, and tiers. It will be an opt-in program and will protect consumer privacy by keeping their shopping habits and information private. H&M Loyalty Cards Consumers will have the option to participate in H&M‟s loyalty program. The program will be free for consumers and will have guarantee privacy protection. The card will be the physical manifestation of an online profile, tiers, points, and benefits. At check-out or online, consumers will be asked if they would like to be involved in H&M Plus. If a consumer agrees, she will be asked to fill out a basic survey asking for information such as demographics, current shopping habits, and personal opinion about H&M. The consumer will then receive a plastic card that will document all of her purchases and will be tied into her online profile once registered. Tiers, points, and benefits can be monitored online with the use of the profile. Point Earning Opportunities Consumers will earn points through every purchase they make. Every dollar spent will be equal to one point. Additionally, there will be days where everything is triple points or certain categories will be double points. At the end of each season, seasonal merchandise will be triple points to help get merchandise off the shelves and make room for the next season‟s new apparel. Each tier will have a certain number of days in which they can make their own double point day. Reward System Consumers will receive various benefits that are unique to their shopping habits and tier. The consumers tier will be evaluated based on the points they accrue. Each tier will have basic rewards, but consumers will receive unique deals based on items they frequently purchase. Once consumers hit a certain price point within their tier they can get H&M cash back. 14

Tiers In order to encourage consumers to shop more, the loyalty program will consist of four tiers that will be based on spending habits. Each tier will have unique benefits available to them and will be associated with a different color. Once the consumer has reached the top tier they will receive a new card that will directly indicate their H&M status. The consumer‟s tier will be re-evaluated based 6 month periods to determine if they should move tiers. Additionally, once the spending level has been met, they do not have to maintain this spending habit to remain there. In order to engage the target audience we will develop a new page on the H&M website that will integrate different social media channels. This new page will be called Community Forum and will be connected with Twitter and Facebook. The creation of this webpage will initially be promoted on H&M‟s social media channels and company blog. There will be two stages for Community Forum: the first stage will be a photo competition and the second will be an open forum for consumers to talk about H&M clothing and accessories. In order to create an exclusive community feel only H&M consumers with online profiles can access the content. This will provide H&M with a channel that can be used to directly communicate with the target audience.

THANK YOU.

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