Monday, 6 January 2014

The (Un) Familiar Broom Stick

By now most of India is familiar with the universal tool that is in great demand. You guessed it right, it is the Broom stick. Since we live in a world full of vacuum cleaners in different shapes and sizes, auto and manual, most of you may not even be aware of what a Broom stick is. 


The Broom, which has been in use, ever since man knew how to puke, has been handed over from generation to generation. The manufacturing of a broom stick is a lengthy process. It is made from a dried branch of a Coconut tree, which is very prevalent in the coastal districts of India, mostly the Southern part. As you know Coconut tree grow really really tall. How tall is really tall? As far as I see it, if you cannot lift your left hand and touch the branch, it should be considered as tall and most of American Basketball players fit this bill.

Leaving that aside, once you are able to identify a tree, the trick is to catch hold of someone who specializes in the art of climbing a tree. He would charge you X rupees for climbing up and coming down. Obviously, you cannot bargain with him about paying only half-of-it since your objective is for him to climb up and you are not really interested in having him come down. So once the price is negotiated, he has this 2-S shaped rope that is somehow joined together to make it look like an & (an ampersand). He will put each foot through both the loops (yeah, I saw it coming, the smartness in you. Yes, the person has to have two functionally working legs that are almost same in length for this to work) and places it firmly on the trunk. He also has a loop with a locking mechanism clasping him to the tree and voila, he starts climbing. So, he goes up, and cuts the branches. You sun it for a while and then, peel apart each leaf and skin them, leaving a long thin stick. You combine a bunch of them and tie it with a rope and there you are. You get a broom that is easy to use and which can clean, all things in all colors.

So, why is the sudden importance for the broom? Well, if you observe the political situation in India, you would realize that at the capital New Delhi, a new party Aam Admi Party (AAP) is running the Government. And, what is so unique about this party? It is their symbol which is the infamous BROOM. 

Ever since the party got launched formally, there has been a spurt in inflation numbers in India.The Govt of India's supercomputers, working in tandem with the Reserve bank of India could not determine why the spike was.

On a closer analysis, you can easily attribute this to the rise of AAP. Why? It is because of their symbol, the Broom. The party got launched and there were so many volunteers from so many walks of life, lawyers, Chief executives, business heads... all hunting for a broom that they could carry with them while going on a door-to-door campaign. This sudden spurt in demand for broom opened up a great business opportunity for people who trade in brooms. These are specialized brooms remember? Not made of plastic but should be made from coconut tree branches. These are available mostly in the Southern part of India, there was a sudden flurry of economic activity in the South. The tree climbers were in demand, along with the trees themselves, not necessarily in that order and the blacksmiths, the knife sharpeners, laborers, rope manufacturers.... You see the scale of this now, don't you.

The brooms were made and they had to be shipped to North India and for most people in South India, North India is somewhere out there, North of where North is. So, it is really really far away which means transportation is involved. More economic activity. By now, the Economist brain in you must have ignited and you must have realized that the Broom starts getting a royal treatment. It is no longer used for cleaning but as an attire. Like the Police and military men carrying artillery,  you have the AAP volunteers carrying lot of broom sticks with them going on a campaign. This naturally increased the prices of broom sticks in North and South. Servant maids working in household were stuck with older Brooms because the newer ones were unavailable or extremely expensive. If they use the older brooms, they take 3 times more time than what they normally take to clean a home free of dirt. So they were demanding more wages because they were stuck with older brooms. Rather than doing household work, they are now thinking of alternate opportunities, yes, with the BMI (Broom manufacturing industry). So their extra pay demands were met with, translating into more cash in hand, which they used to buy essential things like talcum powder, lip stick and nail polish creating a spiralling demand for those products. Voila.. you have inflation now, galloping at a pace that neither the Govt nor the Reserve bank could deal with!!

How to tackle it now? The only way to overcome this inflation is to import Broom sticks from outside of India from countries like China. China, has already sensed a great business opportunity to manufacture brooms and export it to India and Pakistan. Indian Govt is seriously considering levying a heavy duty on such imports, next only to Gold. Already talks are underway with the agriculturists in South India to stop growing Paddy and start growing Coconut trees as it gives them a great revenue opportunity. The central govt is also setting up a dedicated ministry for Coconut trees and a Welfare development board for both the trees and the growers. 

Last I heard, AAP is considering reducing the number of sticks that they use within a Broom to help overcome the current crisis but that remains to be seen.

PS: Heard on the news that AAP is going national in the next 2 days. The need for broom sticks is going to skyrocket. Both the logistics problem and the supply chain problem will have to be addressed with immediate effect. As regards inflation, it is another problem that can be dealt with at a later date.

Being A Customer In India

Is Customer Really the King?

Context for this blog centers around 'Customer relationship management' function in India and how it could be made better.

CRM - The buzz word. We have heard or read statements like :
'Make it easy for the customer to do business with you'
'Focus intensely on your customer'
'Deliver personalized service'
And some of the following which have been attributed to Gandhi (the original) but not validated:
'Customer is the most important visitor in on our premises'
'He is not dependent on us, We are dependent on him'
'He is not an interruption on our work, He is the purpose of it, He is a part of it'
'We are not doing him a favor by servicing him, He is doing us a favor by giving us an opportunity to do so'.

Good to hear and nice to read. Makes one to put forth the best step forward in making it happen. Does it really happen? Does any one really care about the customer in the Indian scenario?

How many of us in India go to a bank and wait in line to get serviced? How many of us have to wait in line to get an Aadhar card when the person accepting the application is supposedly "busy" attending an important call on his mobile, speaking with his neighbor about how tough his job is. Ask the pensioners, senior citizens having health issues, having difficulties travelling since no one is there to take care of them (their kin being abroad), and the torture they have to go through to complete a transaction at a Bank or at a Multi-format grocery store. Talk about courier companies who have to deliver some important document to you.

'Everything is in the internet sir, why are you visiting our branch' is the reply you get from the bank. How many are computer literates and how many have access to computers to complete a transaction? How many have computers and how many have internet connectivity? Even if you can afford both, how many can access a website and understand the computer lingo about 'Secure socket layer', 'Multi layer authentication' leave alone all the userids and passwords that they have to remember at their old age. Even Gen-Xers have difficulty managing the userids and multiple stipulations with regards to passwords, leave alone senior citizens. No one seems to understand the problem and provide a solution that is easy enough to assimilate and use.

This article is not about Senior citizens and CRM but CRM in general.

We have companies in India expanding wildly, take Tatas and Reliance for example. In case of Tatas, they have presence in multiple industries and segments. If you look at the consumer segment, Tatas are there in
- Telecommunication (Fixed and Mobile - Tata Docomo)
- Satellite Television (Tata sky)
- Internet (via VSNL acquisition, Tata Photon+)
- Tata Motors (cars et al)
- Fashion (Westside, Croma)
to  name a few.

Reliance is not far behind:
- Fashion
- Food (Grocery)
- Telecom (Mobile, Landline)
- Internet (Netconnect)
- Satellite Television
- Reliance time out
- Reliance Digital
and the list continues.........

Each of these companies operate as Independent companies (per company act of India) but do share the same brand name. Such is the brand value that there is a sense of reliability and trust that the customers have in them. Have the companies really used the same or are the customers still kings? If Customers were kings, how would they have been serviced?

Take for instance the case of an individual who has got multiple Tata products at his residence (and potentially at work or at is business too). Does a Tata or a Reliance know that the individual that they are dealing with has got other relationships going as well? I can say with 100% confidence that it is not the case.

Why?

The systems are created such that there is no incentive to reward a customer because the customer has got multiple relationships going? Why should he be rewarded? As long as I am able to get revenue from a customer, I am perfectly fine. What matters to me the most is the 'Top line' and the 'Bottom line'. The customer is incidental. If the customer walks away, it is his problem not the company's.

Why is it that such conglomerates do not have an integrated CRM that has a complete profile about the customer and the multiple relationships that they have? With an integrated CRM and knowing the customer intimately, it is quite possible to build the relationship to such an extent that it would become easier to
- Market new products and services
- Earn loyalty
- Increase retention
- Customers will become torch bearers for the new ventures
- They may be decision makers when it comes to a business they are associated with and hence would become the Advocates for the brand.

Is this possible? Will we able to able to generate a 360 degree view of the customer? Will we be able to capitalize the untapped potential that is out there? Will we be able to break the silo within which we operate today and go further beyond?