&Ogilvy&MatherOgilvyInteractiveTeamCustomerRelationshipManagement(CRM)VladimirMJordanovOglivyInteractiveBeijingBoot-camp1&Ogilvy&MatherCustomers?Whoaretheseguys?2&Ogilvy&MatherWhatisCRM?In-depthanalysisofcustomerbehaviorandattributes.Applyingoftheachievedknowledgeintheformulationofmarketingcampaigns,strategiesandtreatmentplans.Morethanjustasetoftechnologies–itisaprocess.3&Ogilvy&MatherWhyCRM?Companyexistence–questforprofit.ThreewaystoincreasetheprofitabilityofthecustomerbaseAcquiremorecustomersOptimizethevalueoftheexistingcustomersRetaintherightcustomerslongerAcquiringnewcustomercost5-10timesmorethatretainingtheexistingoneLoyalcustomerswillwillbuymoreandarewillingtopaypremiumprices20/80rule–20%ofthecustomersgenerate80%oftherevenue4&Ogilvy&MatherWhyCRM?(continued)Serviceleadersenjoythefollowingadvantageovertheirlow-servicecompetitors:Theygrowtwiceasfast.Theyexperiencea6%annualgrowthvs.a1%shareloss(theytakecustomersawayfromtheircompetitors).Theycancharge10%morefromtheirproductsandstilltakecustomersaway.Theyenjoy12%vs.1%averagereturnonsales.Industrystatisticsshowthat68%ofcustomerswalkawaybecauseofpoorcustomerservice.5&Ogilvy&MatherEvolutionofCRMMassMarketingTargetMarketingCRM6&Ogilvy&MatherMassMarketingReplacedtheintimacyofdirectsalesOnewaycommunicationWidegeographicdistributionLostisthepersonaltouchwiththecustomerMassmarketingwasenabledtroughthetechnologicalimprovementsinTV,radio,printedpress7&Ogilvy&MatherTargetMarketingDirectmail,telemarketingReceivingcustomerresponseLackofspecificdata,averageresponserateIslandsofinformation8&Ogilvy&MatherCRMNextevolutionarystep,backtointimacyCustomerloyaltybuildon:Understandingofcustomerswants,needsandvaluesInteractivitywiththecustomerinthewaycustomerprefer9&Ogilvy&MatherCRMCycleAssessWhoarethecustomers–demographicsandlifestyle?Wheredotheylive?Whataretheyworth?Whatistheirlifetimevaluepotential?Whatandhowdotheybuy?Howcantheybereached?Howhavetheyrespondedtopromotionsinthepastandtroughwhichchannelstheyprefertobereached?PlanExecuteExecutionandmanagementofthemarketingcampaignsandcustomertreatmentplans.Datagathering.10&Ogilvy&MatherCRMCriticalSuccessFactorsArchitectureDatawarehouseDatastructureandarchitecture–80%oftheservicecostAnalysis,ProfilingCustomerInteractionSalesforceautomationsystem.CallcenterTheInternet11&Ogilvy&MatherCRMComponentsTwobasicsetoftoolsDatacollectiontoolsAnalyticalanddatadeliverytoolsDatawarehouseDataarcheologyDepthandbreadthofdataContactinformationHouseholdinformationGroupinformationCustomerhistoryPromotionhistoryProductpurchase/usagehistoryTransactionrollupCustomerservicehistorySurveyandcustomerresponsedataDemographic,psychographics,firmographicand/orcreditdataCustomerinteractioninformation12&Ogilvy&MatherCRMComponents(continued)DataextractionandcleansingDatamanagementandstorageScalabilityandopentechnologies13&Ogilvy&MatherCRMEnvironmentApplications,PlatformsVignette,Websphere,Broadvisionetc…CommunicationchannelsTraditionaldirectmarketing,Electronicdirectmarketing,callcenterDatamining,customerprofilebuildingDatawarehousingOracle,SQL,DB2,Sybaseetc…DataanalysisandprofilingeSpective,Webtrendsetc…14&Ogilvy&MatherCRMBuildingBlocks15&Ogilvy&MatherOgilvyandCRMFocusedonCRMElectronicDataMarketing(EDM)MOglivy16&Ogilvy&MatherOgilvyInteractiveChinaandCRMDoesOgilvyInteractivemanagetherelationswithitsclients?How?Howcanweimprove?Howourcompetitionmanagetherelationshipwithitscustomers?17&Ogilvy&MatherTheTechnologyroadahead2001TechnologystrategyobjectivesTechnology–StrategickeyfocusKeytechnologiesandskillsTrainingPlanTechnologyLaboratoryWorkwithothercompaniesandorganizationsServicesprovidedbytheTechnologygroup18&Ogilvy&MatherObjectivesTobeatechnologycenterofexcellenceamongtheInteractivegroupsintheregionandworldwide.Toexcelbestpracticesandtechnologiesintheregionandworldwide.Tobeontheleadingedgeofthenewtechnologies.Tobeinnovative.Improve,improve,improve19&Ogilvy&MatherTechnology–StrategickeyfocusCurrentlyusedtechnologiesContentManagementSystemActiveServerPagesandWebApplicationsDevelopmentLightandMediumBackendDatabaseDevelopmentFuturetechnologiesMobileCRMASPModelConsultingtechnologiesHeavybackenddatabasedevelopment.Fullscaletransactionbasede-commercesolutions.ERPandon-linesupplychainmanagement20&Ogilvy&MatherKeyTechnologiesandskillsOperatingSystems–Linux,SunSolaris,WindowsNTetc…PlatformsandWebApplicationServers–Zope,Domino,Netscape,ApacheDatabase–MSSQL,MySQL,Oracle,DB2Programming–Perl,Python,C,Java,JavaScript,HTML,DHTML,VBSTools&Utilities–WebTrends,WebBenchTechnologies–CMS,CRM,E-Commerce,One-To-One21&Ogilvy&MatherTrainingPlanThetrainingplanfor2001willbedevelopedinaccordanceoftheTechnologyStrategicKeyFocus22&Ogilvy&MatherTechnologyLaboratoryNewtechnologiesSkillsimprovementPetprojects23&Ogilvy&MatherPartnershipwiththirdpartiesHeavyback-enddatabasedevelopmentCRM,ERP,EcommerceInternshipwithleadingBeijingUniversitiesPartnershipwithleadingtechnologycompanies(s