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&Ogilvy&Mather1OgilvyInteractiveTeamCustomerRelationshipManagement(CRM)VladimirMJordanovDecember2nd,2000OglivyInteractiveBeijingBoot-camp&Ogilvy&Mather2Customers?Whoaretheseguys?&Ogilvy&Mather3WhatisCRM?In-depthanalysisofcustomerbehaviorandattributes.Applyingoftheachievedknowledgeintheformulationofmarketingcampaigns,strategiesandtreatmentplans.Morethanjustasetoftechnologies–itisaprocess.&Ogilvy&Mather4WhyCRM?Companyexistence–questforprofit.ThreewaystoincreasetheprofitabilityofthecustomerbaseAcquiremorecustomersOptimizethevalueoftheexistingcustomersRetaintherightcustomerslongerAcquiringnewcustomercost5-10timesmorethatretainingtheexistingoneLoyalcustomerswillwillbuymoreandarewillingtopaypremiumprices20/80rule–20%ofthecustomersgenerate80%oftherevenue&Ogilvy&Mather5WhyCRM?(continued)Serviceleadersenjoythefollowingadvantageovertheirlow-servicecompetitors:Theygrowtwiceasfast.Theyexperiencea6%annualgrowthvs.a1%shareloss(theytakecustomersawayfromtheircompetitors).Theycancharge10%morefromtheirproductsandstilltakecustomersaway.Theyenjoy12%vs.1%averagereturnonsales.Industrystatisticsshowthat68%ofcustomerswalkawaybecauseofpoorcustomerservice.&Ogilvy&Mather6EvolutionofCRMMassMarketingTargetMarketingCRM&Ogilvy&Mather7MassMarketingReplacedtheintimacyofdirectsalesOnewaycommunicationWidegeographicdistributionLostisthepersonaltouchwiththecustomerMassmarketingwasenabledtroughthetechnologicalimprovementsinTV,radio,printedpress&Ogilvy&Mather8TargetMarketingDirectmail,telemarketingReceivingcustomerresponseLackofspecificdata,averageresponserateIslandsofinformation&Ogilvy&Mather9CRMNextevolutionarystep,backtointimacyCustomerloyaltybuildon:Understandingofcustomerswants,needsandvaluesInteractivitywiththecustomerinthewaycustomerprefer&Ogilvy&Mather10CRMCycleAssessWhoarethecustomers–demographicsandlifestyle?Wheredotheylive?Whataretheyworth?Whatistheirlifetimevaluepotential?Whatandhowdotheybuy?Howcantheybereached?Howhavetheyrespondedtopromotionsinthepastandtroughwhichchannelstheyprefertobereached?PlanExecuteExecutionandmanagementofthemarketingcampaignsandcustomertreatmentplans.Datagathering.&Ogilvy&Mather11CRMCriticalSuccessFactorsArchitectureDatawarehouseDatastructureandarchitecture–80%oftheservicecostAnalysis,ProfilingCustomerInteractionSalesforceautomationsystem.CallcenterTheInternet&Ogilvy&Mather12CRMComponentsTwobasicsetoftoolsDatacollectiontoolsAnalyticalanddatadeliverytoolsDatawarehouseDataarcheologyDepthandbreadthofdataContactinformationHouseholdinformationGroupinformationCustomerhistoryPromotionhistoryProductpurchase/usagehistoryTransactionrollupCustomerservicehistorySurveyandcustomerresponsedataDemographic,psychographics,firmographicand/orcreditdataCustomerinteractioninformation&Ogilvy&Mather13CRMComponents(continued)DataextractionandcleansingDatamanagementandstorageScalabilityandopentechnologies&Ogilvy&Mather14CRMEnvironmentApplications,PlatformsVignette,Websphere,Broadvisionetc…CommunicationchannelsTraditionaldirectmarketing,Electronicdirectmarketing,callcenterDatamining,customerprofilebuildingDatawarehousingOracle,SQL,DB2,Sybaseetc…DataanalysisandprofilingeSpective,Webtrendsetc…&Ogilvy&Mather15CRMBuildingBlocks&Ogilvy&Mather16OgilvyandCRMFocusedonCRMElectronicDataMarketing(EDM)MOglivy&Ogilvy&Mather17OgilvyInteractiveChinaandCRMDoesOgilvyInteractivemanagetherelationswithitsclients?How?Howcanweimprove?Howourcompetitionmanagetherelationshipwithitscustomers?&Ogilvy&Mather18TheTechnologyroadahead2001TechnologystrategyobjectivesTechnology–StrategickeyfocusKeytechnologiesandskillsTrainingPlanTechnologyLaboratoryWorkwithothercompaniesandorganizationsServicesprovidedbytheTechnologygroup&Ogilvy&Mather19ObjectivesTobeatechnologycenterofexcellenceamongtheInteractivegroupsintheregionandworldwide.Toexcelbestpracticesandtechnologiesintheregionandworldwide.Tobeontheleadingedgeofthenewtechnologies.Tobeinnovative.Improve,improve,improve&Ogilvy&Mather20Technology–StrategickeyfocusCurrentlyusedtechnologiesContentManagementSystemActiveServerPagesandWebApplicationsDevelopmentLightandMediumBackendDatabaseDevelopmentFuturetechnologiesMobileCRMASPModelConsultingtechnologiesHeavybackenddatabasedevelopment.Fullscaletransactionbasede-commercesolutions.ERPandon-linesupplychainmanagement&Ogilvy&Mather21KeyTechnologiesandskillsOperatingSystems–Linux,SunSolaris,WindowsNTetc…PlatformsandWebApplicationServers–Zope,Domino,Netscape,ApacheDatabase–MSSQL,MySQL,Oracle,DB2Programming–Perl,Python,C,Java,JavaScript,HTML,DHTML,VBSTools&Utilities–WebTrends,WebBenchTechnologies–CMS,CRM,E-Commerce,One-To-One&Ogilvy&Mather22TrainingPlanThetrainingplanfor2001willbedevelopedinaccordanceoftheTechnologyStrategicKeyFocus&Ogilvy&Mather23TechnologyLaboratoryNewtechnologiesSkillsimprovementPetprojects&Ogilvy&Mather24PartnershipwiththirdpartiesHeavyback-enddatabasedevelopmentCRM,ERP,EcommerceInternshipwithleadingBeijingUniversitiesPartnershipwithleadingtec