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- 1. Ogilvy Interactive TeamCustomer Relationship Management (CRM)Vladimir M Jordanov December 2nd, 2000 Oglivy Interactive Beijing Boot-camp1
- 2. Customers?Who are these guys?2
- 3. What is CRM?In-depth analysis of customer behavior and attributes. Applying of the achieved knowledge in the formulation of marketing campaigns, strategies and treatment plans.More than just a set of technologies – it is a process.3
- 4. Why CRM?Company existence – quest for profit. Three ways to increase the profitability of the customer base Acquire more customers Optimize the value of the existing customers Retain the right customers longer Acquiring new customer cost 5-10 times more that retaining the existing one Loyal customers will will buy more and are willing to pay premium prices 20/80 rule – 20% of the customers generate 80% of the revenue4
- 5. Why CRM? (continued)Service leaders enjoy the following advantage over their low-service competitors: They grow twice as fast. They experience a 6% annual growth vs. a 1% share loss (they take customers away from their competitors). They can charge 10% more from their products and still take customers away. They enjoy 12% vs. 1% average return on sales. Industry statistics show that 68% of customers walk away because of poor customer service.5
- 6. Evolution of CRMMass Marketing Target Marketing CRM6
- 7. Mass MarketingReplaced the intimacy of direct sales One way communication Wide geographic distribution Lost is the personal touch with the customer Mass marketing was enabled trough the technological improvements in TV, radio, printed press7
- 8. Target MarketingDirect mail, telemarketing Receiving customer response Lack of specific data, average response rate Islands of information 8
- 9. CRMNext evolutionary step, back to intimacy Customer loyalty build on: Understanding of customers wants, needs and values Interactivity with the customer in the way customer prefer9
- 10. CRM CycleAssess Who are the customers – demographics and lifestyle? Where do they live? What are they worth? What is their lifetime value potential? What and how do they buy? How can they be reached? How have they responded to promotions in the past and trough which channels they prefer to be reached? Plan Execute Execution and management of the marketing campaigns and customer treatment plans. Data gathering.10
- 11. CRM Critical Success FactorsArchitecture Data warehouse Data structure and architecture – 80% of the service cost Analysis, ProfilingCustomer Interaction Sales force automation system. Call center The Internet 11
- 12. CRM ComponentsTwo basic set of tools Data collection tools Analytical and data delivery tools Data warehouse Data archeology Depth and breadth of data Contact information Household information Group information Customer history Promotion history Product purchase/usage history Transaction rollup Customer service history Survey and customer response data Demographic, psychographics, firmographic and/or credit data Customer interaction information12
- 13. CRM Components (continued)Data extraction and cleansing Data management and storage Scalability and open technologies13
- 14. CRM EnvironmentApplications, Platforms Vignette, Websphere, Broadvision etc… Communication channels Traditional direct marketing, Electronic direct marketing, call center Data mining, customer profile building Data warehousing Oracle, SQL, DB2, Sybase etc… Data analysis and profiling eSpective, Webtrends etc… 14
- 15. CRM Building Blocks15
- 16. Ogilvy and CRMFocused on CRM Electronic Data Marketing (EDM) M Oglivy16
- 17. Ogilvy Interactive China and CRMDoes Ogilvy Interactive manage the relations with its clients? How? How can we improve? How our competition manage the relationship with its customers? 17
- 18. The Technology road ahead 2001Technology strategy objectives Technology – Strategic key focus Key technologies and skills Training Plan Technology Laboratory Work with other companies and organizations Services provided by the Technology group 18
- 19. ObjectivesTo be a technology center of excellence among the Interactive groups in the region and worldwide. To excel best practices and technologies in the region and worldwide. To be on the leading edge of the new technologies. To be innovative. Improve, improve, improve 19
- 20. Technology – Strategic key focusCurrently used technologies Content Management System Active Server Pages and Web Applications Development Light and Medium Backend Database Development Future technologies Mobile CRM ASP Model Consulting technologies Heavy backend database development. Full scale transaction based e-commerce solutions. ERP and on-line supply chain management 20
- 21. Key Technologies and skillsOperating Systems – Linux, Sun Solaris, Windows NT etc… Platforms and Web Application Servers – Zope, Domino, Netscape, Apache Database – MS SQL, My SQL, Oracle, DB2 Programming – Perl, Python, C, Java, Java Script, HTML, DHTML, VBS Tools & Utilities – WebTrends, WebBench Technologies – CMS, CRM, E-Commerce, One-To-One21
- 22. Training Plan The training plan for 2001 will be developed in accordance of the Technology Strategic Key Focus 22
- 23. Technology LaboratoryNew technologies Skills improvement Pet projects 23
- 24. Partnership with third partiesHeavy back-end database development CRM, ERP, E commerce Internship with leading Beijing Universities Partnership with leading technology companies (such as Motorola, Nokia, IBM etc.) Partnership with leading software companies (Vignette, BroadVision, Oracle etc.) ASP model 24
- 25. Services Provided by Tech. GroupContent management solutions design and implementation Front-end programming Back-end programming Site architecture and integration Site hosting and administration Internet technology and strategy consulting 25
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