TNT to look for smaller business

Logistics provider TNT is implementing its territory management process extensively in India. The process, first conceived in the UK during the late 90s, will focus on small-customer acquisitions.

"TNT in India has focussed on the A, B and C class customers who comprise 30 per cent of the user base but contribute 75 per cent of the revenues. With smaller customer margins higher, TNT is realigning its focus areas," Sanjiv Kathuria, head (sales and marketing) TNT India said.

"Leaning on the process we expect to increase signing efficiency from one customer per territory a week to five customer acquisitions by this calender-end."

Worldwide, adoption of the process has resulted in 10 new customers a week per territory. To put it into perspective, Bangalore has five territories and Mumbai 10. They have been segregated based on pin codes.

Another target of the operation will be to ensure that the database reflects a 40 per cent customer and 60 per cent prospective customers. Currently, customers represent just 23 per cent of the 45,000 strong TNT's India database.

Kathuria said, territory management process is a combination of telemarketing and onsite marketing. It ensures absolute co-ordination between the two, that the onsite staff calls are backed by firm appointments tele-marketers fix.

Territory management when launched in UK upped customer acquisition rate to 144 per cent in 1999-00 and 194 per cent the next year. Following this, TNT has rolled it out in almost all of Europe and North America. Currently it is implementing it in Asia and South Africa.

The company said, the process will reduce portfolio maintenance administration and allow a seamless integration of marketing functions.