By Ms. Sudha K, Department of Commerce, Besant Women’s College, Mangalore Karnataka, India.

1. Micro Initiatives: An Effective Member Relationship Management (MRM) Strategy in Cooperatives in India By  Ms. Sudha K, Department of Commerce, Besant Women’s College, Mangalore Karnataka, India.

2. Introduction • Disregard to member centrality-Member Service and Development of members is not given due emphasis. • Imitating the competition, preoccupied with the commercial success. • Perception of the people • Replicating the corporate model-Setback • All co-ops should be inward looking and geared to member service &member devept.to achieve greatest good of greatest no. of its members

3. Emerging Business Context • Sweeping Changes • Cut throat competition • Gradual withdrawal of State’s support • Provider of safety net • “Cooperative community to community cooperative” • Co-ops are at the heart of economic change. • Move with the winds of change-focus on members

4. Strategy of the Competitors • Consumer Oriented marketing system • Customisation,Customer relationship management & satisfaction • Co-ops-Responsive to the members needs • Addressing the association needs • Commitment to nurture members • Member relationship management

5. MRM - Its Significance • It is creating a culture in the organization where members are valued and they trust their organization • Members are treated as members • Winning members’ patronage through member- focused management approach • MRM should be viewed as a strategic tool and members are provided with need fulfillment initiatives • Respond to both association and enterprise needs

6. MRM-Its Significance • Every member is a revenue producing asset Drives cooperative’s economic growth • Regular interaction with members is imperative • Enhance members’ sense of identification • Increase the response rate or refers to other customers

7. Micro Initiatives - Need and Importance • Process of development should occur from below and not imposed from above or driven by external action • Participation of members should be pursued at all time, lest preoccupied in their own work • Local endeavour, networking within and outside,needed more in villages • Potentiality of primary co-op is essential for the effectiveness of the higher level co-op • Important element of transitional strategy

8. M.I as an effective MRM strategy • M.I provides important link to the members • Fill the generation gap • Bring return on members- Short term( profit on purchases made) and Long term (in terms of loyalty of the members) • Helps in redesigning the strategies according to new areas of members interest.

9. Need Fulfillment Activities-A MRM technique • Are those that respond to the varying and demanding needs of the members, which are beyond their rudimentary commercial or conventional business activities. • Diversifying the business operation-from functional compartmentalization to Community cooperatives & all HRD interventions -If the members need them

10. Members identify the essence of cooperation and its outcome, attracts public allegiance, binds members and the management through the bondage of faith. • Need based initiatives should be integrated with the social, business and investment activities of the primary co-ops • Co-ops should show concern for the people and conscious of their needs and aspiration • The overall performance of the coop depends upon the extent to which members are utilized, developed and satisfied though are not B/S

11. Methodology Used • Data are collected covering a period of 5 yrs from 1996-97 to 2000-01 • Data collection- primary, secondary and field observation • Data analysis- descriptive and statistical inference scaling technique, chi-square, correlation, non-parametric statistics • Primary coops in 8 sectors in 5 different states in India- 37 office bearers,74 committee members, 185 members from 37 units

12. Profile of Need Fulfillment Initiatives in the surveyed societies • Sectorwise,units in Dairy, PACs, Producer/ workers and consumer sectors have performed satisfactorily at varying degrees • Regionwise, units in Maharashtra, A.P and Karnataka are found more responsive. • Mulkanoor Coop Rural Bank & Marketing Society (A.P), Tattisar & Hulgol service coop society- multi purpose,budgetary provision- cradle to the grave-informal membership survey-Research on farming practices

13. Participation in the committees • Relationship oriented approach than the task oriented approach • Auditorium for the use of members • Health and environment related activities • felicitation of best farmer members • Crop and horticultural exhibitions, competitions on crop production • Cooperative film show,educational inputs through Cooperative Development Foundation(A.P)

14. Shetkari Sahakari sangh in Maharashtra-multifarious activities in 20 different areas • Grahak Peth and Warana bazar- member contact & motivational measures, consumer redressal, networking activities, training for youth • Bhagini Niveditha Sahakari Bank-entrepreneurship development activities for women members,schemes for women empowerment,exhibition etc.

15. Shree Tatyasaheb Kore Warana Sahakari sakhar karkhana-pro member policies,built an illustrious cooperative complex with social infrastructure - schools colleges, hospitals, gym, village library,coop dairy, bank, community centre & supermarket. • On the information front-Warana Wired village project-82 villages-bench marking in communication- farming know-how through internet • Training-field education, demonstration, seminar workshops, volleyball, basketball tournament

16. A.P.S.R.T.C employees thrift and credit coops: welfare schemes for their members for the health care, children education, employment for their handicapped children & retired members’ security scheme, computer training for the members • Punacha PACs-Senior members Day, games, picnics, building materials & gas, employment registration for the youth • Kasargod Beedi workers’ industrial co-op – juice, pickle, cottage industries,computer training,Ladies read newspapers,beedi rolling competition

17. Other instances: Kannur Town service co-op bank (Kerala),TSS(Karnataka), bardez bazar(Goa)- Pharmaceutical services Kannur Town service co-op bank (Kerala)-consumer store and festival market facility Tattisar group seva sahakari sangha-final rites assistance,interest free loan to sc/st members, plastic picking, family planning operation, farmers’ training, water shed development

18. Effect of the Initiatives on the Organisation • Organisation conducting need fulfilment initiatives have good exposure of members than those conducting negligible activities • Are much stronger than those not conducting significantly- in terms of membership, share capital and profit reflecting their overall strength

19. Suggestions • MRM- integral part of the business strategy, budgetary provision for MR • Need based product mix-4Ps with persons and pace, patronage refund • Exposure to the Mgt, professionals and employees-attitudinal change • Synergise the MRM culture with resources, technology & organisation behaviour, MR cell,Govt support

20. Tattisar PACS

21. Warana Dairy

22. Warana Co-Op. Sugar Industry

23. Warana Sugar Factory

24. Bhagini Niveditha Co-Op Bank

25. APSRTC Employees Thrift Co-Op. Bank

26. Thank You