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1、1,Ogilvy Interactive Team,Customer Relationship Management (CRM),Vladimir M JordanovDecember 2nd, 2000Oglivy Interactive Beijing Boot-camp,2,Customers?,Who are these guys?,3,What is CRM?,In-depth analysis of customer b
2、ehavior 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.,4,Why CRM?,Company existence –
3、 quest for profit.Three ways to increase the profitability of the customer baseAcquire more customersOptimize the value of the existing customersRetain the right customers longerAcquiring new customer cost 5-10 time
4、s more that retaining the existing oneLoyal customers will will buy more and are willing to pay premium prices20/80 rule – 20% of the customers generate 80% of the revenue,5,Why CRM? (continued),Service leaders enjoy t
5、he 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
6、 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.,6,Evolution of CRM,Mass Marketing
7、Target MarketingCRM,7,Mass Marketing,Replaced the intimacy of direct salesOne way communicationWide geographic distributionLost is the personal touch with the customerMass marketing was enabled trough the technolog
8、ical improvements in TV, radio, printed press,8,Target Marketing,Direct mail, telemarketingReceiving customer responseLack of specific data, average response rateIslands of information,9,CRM,Next evolutionary step, ba
9、ck to intimacyCustomer loyalty build on:Understanding of customers wants, needs and valuesInteractivity with the customer in the way customer prefer,10,CRM Cycle,AssessWho are the customers – demographics and lifesty
10、le?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 pre
11、fer to be reached? PlanExecuteExecution and management of the marketing campaigns and customer treatment plans.Data gathering.,11,CRM Critical Success Factors,ArchitectureData warehouseData structure and architect
12、ure – 80% of the service cost,Analysis, Profiling,Customer InteractionSales force automation system.Call centerThe Internet,12,CRM Components,Two basic set of toolsData collection toolsAnalytical and data delivery t
13、oolsData warehouseData archeologyDepth and breadth of dataContact informationHousehold informationGroup informationCustomer historyPromotion historyProduct purchase/usage historyTransaction rollupCustomer ser
14、vice historySurvey and customer response dataDemographic, psychographics, firmographic and/or credit dataCustomer interaction information,13,CRM Components (continued),Data extraction and cleansing Data management an
15、d storageScalability and open technologies,14,CRM Environment,Applications, PlatformsVignette, Websphere, Broadvision etc… Communication channelsTraditional direct marketing, Electronic direct marketing, call center
16、Data mining, customer profile building Data warehousingOracle, SQL, DB2, Sybase etc… Data analysis and profilingeSpective, Webtrends etc…,15,CRM Building Blocks,16,Ogilvy and CRM,Focused on CRM Electronic Data Mar
17、keting (EDM)M Oglivy,17,Ogilvy Interactive China and CRM,Does Ogilvy Interactive manage the relations with its clients?How?How can we improve?How our competition manage the relationship with its customers?,18,The Tec
18、hnology road ahead 2001,Technology strategy objectivesTechnology – Strategic key focusKey technologies and skillsTraining PlanTechnology Laboratory Work with other companies and organizationsServices provided by th
19、e Technology group,19,Objectives,To 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 leadin
20、g edge of the new technologies.To be innovative.Improve, improve, improve,20,Technology – Strategic key focus,Currently used technologiesContent Management SystemActive Server Pages and Web Applications Development
21、Light and Medium Backend Database Development Future technologiesMobileCRMASP ModelConsulting technologiesHeavy backend database development.Full scale transaction based e-commerce solutions.ERP and on-line suppl
22、y chain management,21,Key Technologies and skills,Operating Systems – Linux, Sun Solaris, Windows NT etc… Platforms and Web Application Servers – Zope, Domino, Netscape, Apache Database – MS SQL, My SQL, Oracle, DB2P
23、rogramming – Perl, Python, C, Java, Java Script, HTML, DHTML, VBSTools & Utilities – WebTrends, WebBenchTechnologies – CMS, CRM, E-Commerce, One-To-One,,22,Training Plan,The training plan for 2001 will be developed
24、 in accordance of the Technology Strategic Key Focus,23,Technology Laboratory,New technologiesSkills improvementPet projects,24,Partnership with third parties,Heavy back-end database developmentCRM, ERP, E commerce I
25、nternship 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,2
26、5,Services Provided by Tech. Group,Content management solutions design and implementationFront-end programmingBack-end programmingSite architecture and integrationSite hosting and administrationInternet technology a
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