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1、& Ogilvy & Mather 1 & Ogilvy & Mather Ogilvy Interactive Team Customer Relationship Management (CRM) Vladimir M Jordanov December 2nd, 2000 Oglivy Interactive Beijing Boot-camp 2 & Ogilvy & Mather Customers? Who are these guys? 3 & Ogilvy & Mather What is CRM? q In-depth analysis of customer behavio
2、r and attributes. qq Applying of the achieved Applying of the achieved knowledge in the formulation of knowledge in the formulation of marketing campaigns, strategies marketing campaigns, strategies and treatment plans.and treatment plans. qq More than just a set of technologies More than just a set
3、 of technologies it is a process. it is a process. 4 & Ogilvy & Mather Why CRM? q Company existence quest for profit. q Three ways to increase the profitability of the customer base q Acquire more customers q Optimize the value of the existing customers q Retain the right customers longer q Acquirin
4、g new customer cost 5- 10 times more that retaining the existing one q Loyal customers will will buy more and are willing to pay premium prices q 20/80 rule 20% of the customers generate 80% of the revenue 5 & Ogilvy & Mather Why CRM? (continued) q Service leaders enjoy the following advantage over
5、their low- service competitors: q They grow twice as fast. q They experience a 6% annual growth vs. a 1% share loss (they take customers away from their competitors). q They can charge 10% more from their products and still take customers away. q They enjoy 12% vs. 1% average return on sales. q Indu
6、stry statistics show that 68% of customers walk away because of poor customer service. 6 & Ogilvy & Mather Evolution of CRM qq Mass MarketingMass Marketing qq Target MarketingTarget Marketing qq CRMCRM 7 & Ogilvy & Mather Mass Marketing q Replaced the intimacy of direct sales q One way communication
7、 q Wide geographic distribution q Lost is the personal touch with the customer q Mass marketing was enabled trough the technological improvements in TV, radio, printed press 8 & Ogilvy & Mather Target Marketing q Direct mail, telemarketing q Receiving customer response q Lack of specific data, avera
8、ge response rate q Islands of information 9 & Ogilvy & Mather CRM q Next evolutionary step, back to intimacy q Customer loyalty build on: q Understanding of customers wants, needs and values q Interactivity with the customer in the way customer prefer 10 & Ogilvy & Mather CRM Cycle q Assess lWho are
9、 the customers demographics and lifestyle? lWhere do they live? lWhat are they worth? What is their lifetime value potential? lWhat and how do they buy? lHow can they be reached? How have they responded to promotions in the past and trough which channels they prefer to be reached? q Plan q Execute l
10、Execution and management of the marketing campaigns and customer treatment plans. lData gathering. 11 & Ogilvy & Mather CRM Critical Success Factors q Architecture q Data warehouse q Data structure and architecture 80% of the service cost qq Analysis, ProfilingAnalysis, Profiling qq Customer Interac
11、tionCustomer Interaction qq Sales force automation system.Sales force automation system. qq Call centerCall center qq The InternetThe Internet 12 & Ogilvy & Mather CRM Components q Two basic set of tools q Data collection tools q Analytical and data delivery tools q Data warehouse q Data archeology
12、q Depth and breadth of data q Contact information q Household information q Group information q Customer history q Promotion history q Product purchase/usage history q Transaction rollup q Customer service history q Survey and customer response data q Demographic, psychographics, firmographic and/or
13、 credit data q Customer interaction information 13 & Ogilvy & Mather CRM Components (continued) q Data extraction and cleansing q Data management and storage q Scalability and open technologies 14 & Ogilvy & Mather CRM Environment q Applications, Platforms q Vignette, Websphere, Broadvision etc q Co
14、mmunication channels q Traditional direct marketing, Electronic direct marketing, call center q Data mining, customer profile building q Data warehousing q Oracle, SQL, DB2, Sybase etc q Data analysis and profiling q eSpective, Webtrends etc 15 & Ogilvy & Mather CRM Building Blocks 16 & Ogilvy & Mat
15、her Ogilvy and CRM q Focused on CRM q Electronic Data Marketing (EDM) q M Oglivy 17 & Ogilvy & Mather Ogilvy Interactive China and CRM qDoes Ogilvy Interactive manage the relations with its clients? qHow? qHow can we improve? qHow our competition manage the relationship with its customers? 18 & Ogil
16、vy & Mather The Technology road ahead 2001 q Technology strategy objectives q Technology Strategic key focus q Key technologies and skills q Training Plan q Technology Laboratory q Work with other companies and organizations q Services provided by the Technology group 19 & Ogilvy & Mather Objectives q To be a technology center of excellence among the Interactive groups in the region and worldwide. q To excel best practices and technologies
