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OgilvyInteractiveTeamCustomerRelationshipManagement(CRM)VladimirMJordanovDecember2nd,2000OglivyInteractiveBeijingBoot-camp1OgilvyInteractiveTeamCustomeCustomers?Whoaretheseguys?2Customers?Whoaretheseguys?2WhatisCRM?In-depthanalysisofcustomerbehaviorandattributes.Applyingoftheachievedknowledgeintheformulationofmarketingcampaigns,strategiesandtreatmentplans.Morethanjustasetoftechnologies–itisaprocess.3WhatisCRM?In-depthanalysisWhyCRM?Companyexistence–questforprofit.ThreewaystoincreasetheprofitabilityofthecustomerbaseAcquiremorecustomersOptimizethevalueoftheexistingcustomersRetaintherightcustomerslongerAcquiringnewcustomercost5-10timesmorethatretainingtheexistingoneLoyalcustomerswillwillbuymoreandarewillingtopaypremiumprices20/80rule–20%ofthecustomersgenerate80%oftherevenue4WhyCRM?Companyexistence–quWhyCRM?(continued)Serviceleadersenjoythefollowingadvantageovertheirlow-servicecompetitors:Theygrowtwiceasfast.Theyexperiencea6%annualgrowthvs.a1%shareloss(theytakecustomersawayfromtheircompetitors).Theycancharge10%morefromtheirproductsandstilltakecustomersaway.Theyenjoy12%vs.1%averagereturnonsales.Industrystatisticsshowthat68%ofcustomerswalkawaybecauseofpoorcustomerservice.5WhyCRM?(continued)ServiceleEvolutionofCRMMassMarketing

TargetMarketing

CRM6EvolutionofCRMMassMarketingMassMarketingReplacedtheintimacyofdirectsalesOnewaycommunicationWidegeographicdistributionLostisthepersonaltouchwiththecustomerMassmarketingwasenabledtroughthetechnologicalimprovementsinTV,radio,printedpress7MassMarketingReplacedtheintTargetMarketingDirectmail,telemarketingReceivingcustomerresponseLackofspecificdata,averageresponserateIslandsofinformation8TargetMarketingDirectmail,tCRMNextevolutionarystep,backtointimacyCustomerloyaltybuildon:Understandingofcustomerswants,needsandvaluesInteractivitywiththecustomerinthewaycustomerprefer9CRMNextevolutionarystep,bacCRMCycleAssessWhoarethecustomers–demographicsandlifestyle?Wheredotheylive?Whataretheyworth?Whatistheirlifetimevaluepotential?Whatandhowdotheybuy?Howcantheybereached?Howhavetheyrespondedtopromotionsinthepastandtroughwhichchannelstheyprefertobereached?PlanExecuteExecutionandmanagementofthemarketingcampaignsandcustomertreatmentplans.Datagathering.10CRMCycleAssess10CRMCriticalSuccessFactorsArchitectureDatawarehouseDatastructureandarchitecture–80%oftheservicecostAnalysis,ProfilingCustomerInteractionSalesforceautomationsystem.CallcenterTheInternet11CRMCriticalSuccessFactorsArCRMComponentsTwobasicsetoftoolsDatacollectiontoolsAnalyticalanddatadeliverytoolsDatawarehouseDataarcheologyDepthandbreadthofdataContactinformationHouseholdinformationGroupinformationCustomerhistoryPromotionhistoryProductpurchase/usagehistoryTransactionrollupCustomerservicehistorySurveyandcustomerresponsedataDemographic,psychographics,firmographicand/orcreditdataCustomerinteractioninformation12CRMComponentsTwobasicsetofCRMComponents(continued)DataextractionandcleansingDatamanagementandstorageScalabilityandopentechnologies13CRMComponents(continued)DataCRMEnvironmentApplications,PlatformsVignette,Websphere,Broadvisionetc…CommunicationchannelsTraditionaldirectmarketing,Electronicdirectmarketing,callcenterDatamining,customerprofilebuildingDatawarehousingOracle,SQL,DB2,Sybaseetc…DataanalysisandprofilingeSpective,Webtrendsetc…14CRMEnvironmentApplications,PCRMBuildingBlocks15CRMBuildingBlocks15OgilvyandCRMFocusedonCRMElectronicDataMarketing(EDM)MOglivy16OgilvyandCRMFocusedonCRM1OgilvyInteractiveChinaandCRMDoesOgilvyInteractivemanagetherelationswithitsclients?How?Howcanweimprove?Howourcompetitionmanagetherelationshipwithitscustomers?17OgilvyInteractiveChinaandCTheTechnologyroadahead2001TechnologystrategyobjectivesTechnology–StrategickeyfocusKeytechnologiesandskillsTrainingPlanTechnologyLaboratoryWorkwithothercompaniesandorganizationsServicesprovidedbytheTechnologygroup18TheTechnologyroadahead2001ObjectivesTobeatechnologycenterofexcellenceamongtheInteractivegroupsintheregionandworldwide.Toexcelbestpracticesandtechnologiesintheregionandworldwide.Tobeontheleadingedgeofthenewtechnologies.Tobeinnovative.Improve,improve,improve19ObjectivesTobeatechnologycTechnology–StrategickeyfocusCurrentlyusedtechnologiesContentManagementSystemActiveServerPagesandWebApplicationsDevelopmentLightandMediumBackendDatabaseDevelopmentFuturetechnologiesMobileCRMASPModelConsultingtechnologiesHeavybackenddatabasedevelopment.Fullscaletransactionbasede-commercesolutions.ERPandon-linesupplychainmanagement

20Technology–StrategickeyfocKeyTechnologiesandskillsOperatingSystems–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-One21KeyTechnologiesandskillsOpeTrainingPlan

Thetrainingplanfor2001willbedevelopedinaccordanceoftheTechnologyStrategicKeyFocus

22TrainingPlanThetrainingTechnologyLaboratoryNewtechnologiesSkillsimprovementPetprojects23TechnologyLaboratoryNewtechnPartnershipwiththirdpartiesHeavyback-enddatabasedevelopmentCRM,ERP,EcommerceInternshipwithleadingBeijingUniversitiesPartnershipwithleadingtechnologycompanies(suchasMotorola,Nokia,IBMetc.)Partnershipwithleadingsoftwarecompanies(Vignette,BroadVision,Oracleetc.)ASPmodel24PartnershipwiththirdpartiesServicesProvidedbyTech.GroupContentmanagementsolutionsdesignandimplementationFront-endprogrammingBack-endprogrammingSitearchitectureandintegrationSitehostingandadministrationInternettechnologyandstrategyconsulting25ServicesProvidedbyTech.Gro2626OgilvyInteractiveTeamCustomerRelationshipManagement(CRM)VladimirMJordanovDecember2nd,2000OglivyInteractiveBeijingBoot-camp27OgilvyInteractiveTeamCustomeCustomers?Whoaretheseguys?28Customers?Whoaretheseguys?2WhatisCRM?In-depthanalysisofcustomerbehaviorandattributes.Applyingoftheachievedknowledgeintheformulationofmarketingcampaigns,strategiesandtreatmentplans.Morethanjustasetoftechnologies–itisaprocess.29WhatisCRM?In-depthanalysisWhyCRM?Companyexistence–questforprofit.ThreewaystoincreasetheprofitabilityofthecustomerbaseAcquiremorecustomersOptimizethevalueoftheexistingcustomersRetaintherightcustomerslongerAcquiringnewcustomercost5-10timesmorethatretainingtheexistingoneLoyalcustomerswillwillbuymoreandarewillingtopaypremiumprices20/80rule–20%ofthecustomersgenerate80%oftherevenue30WhyCRM?Companyexistence–quWhyCRM?(continued)Serviceleadersenjoythefollowingadvantageovertheirlow-servicecompetitors:Theygrowtwiceasfast.Theyexperiencea6%annualgrowthvs.a1%shareloss(theytakecustomersawayfromtheircompetitors).Theycancharge10%morefromtheirproductsandstilltakecustomersaway.Theyenjoy12%vs.1%averagereturnonsales.Industrystatisticsshowthat68%ofcustomerswalkawaybecauseofpoorcustomerservice.31WhyCRM?(continued)ServiceleEvolutionofCRMMassMarketing

TargetMarketing

CRM32EvolutionofCRMMassMarketingMassMarketingReplacedtheintimacyofdirectsalesOnewaycommunicationWidegeographicdistributionLostisthepersonaltouchwiththecustomerMassmarketingwasenabledtroughthetechnologicalimprovementsinTV,radio,printedpress33MassMarketingReplacedtheintTargetMarketingDirectmail,telemarketingReceivingcustomerresponseLackofspecificdata,averageresponserateIslandsofinformation34TargetMarketingDirectmail,tCRMNextevolutionarystep,backtointimacyCustomerloyaltybuildon:Understandingofcustomerswants,needsandvaluesInteractivitywiththecustomerinthewaycustomerprefer35CRMNextevolutionarystep,bacCRMCycleAssessWhoarethecustomers–demographicsandlifestyle?Wheredotheylive?Whataretheyworth?Whatistheirlifetimevaluepotential?Whatandhowdotheybuy?Howcantheybereached?Howhavetheyrespondedtopromotionsinthepastandtroughwhichchannelstheyprefertobereached?PlanExecuteExecutionandmanagementofthemarketingcampaignsandcustomertreatmentplans.Datagathering.36CRMCycleAssess10CRMCriticalSuccessFactorsArchitectureDatawarehouseDatastructureandarchitecture–80%oftheservicecostAnalysis,ProfilingCustomerInteractionSalesforceautomationsystem.CallcenterTheInternet37CRMCriticalSuccessFactorsArCRMComponentsTwobasicsetoftoolsDatacollectiontoolsAnalyticalanddatadeliverytoolsDatawarehouseDataarcheologyDepthandbreadthofdataContactinformationHouseholdinformationGroupinformationCustomerhistoryPromotionhistoryProductpurchase/usagehistoryTransactionrollupCustomerservicehistorySurveyandcustomerresponsedataDemographic,psychographics,firmographicand/orcreditdataCustomerinteractioninformation38CRMComponentsTwobasicsetofCRMComponents(continued)DataextractionandcleansingDatamanagementandstorageScalabilityandopentechnologies39CRMComponents(continued)DataCRMEnvironmentApplications,PlatformsVignette,Websphere,Broadvisionetc…CommunicationchannelsTraditionaldirectmarketing,Electronicdirectmarketing,callcenterDatamining,customerprofilebuildingDatawarehousingOracle,SQL,DB2,Sybaseetc…DataanalysisandprofilingeSpective,Webtrendsetc…40CRMEnvironmentApplications,PCRMBuildingBlocks41CRMBuildingBlocks15OgilvyandCRMFocusedonCRMElectronicDataMarketing(EDM)MOglivy42OgilvyandCRMFocusedonCRM1OgilvyInteractiveChinaandCRMDoesOgilvyInteractivemanagetherelationswithitsclients?How?Howcanweimprove?Howourcompetitionmanagetherelationshipwithitscustomers?43OgilvyInteractiveChinaandCTheTechnologyroadahead2001TechnologystrategyobjectivesTechnology–StrategickeyfocusKeytechnologiesandskillsTrainingPlanTechnologyLaboratoryWorkwithothercompaniesandorganizationsServicesprovidedbytheTechnologygroup44TheTechnologyroadahead2001ObjectivesTobeatechnologycenterofexcellenceamongtheInteractivegroupsintheregionandworldwide.Toexcelbestpracticesandtechnologiesintheregionandworldwide.Tobeontheleadingedgeofthenewtechnologies.Tobeinnovative.Improve,improve,improve45ObjectivesTobeatechnologycTechnology–StrategickeyfocusCurrentlyusedtechnologiesContentManagementSystemActiveServerPagesandWebApplicationsDevelopmentLightandMediumBackendDatabaseDevelopmentFuturetechnologiesMobileCRMASPModelConsultingtechnologiesHeavybackenddatabasedevelopment.Fullscaletransactionbasede-commercesolutions.ERPandon-linesupplychainmanagement

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