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&Ogilvy&1OgilvyInteractiveTeamOgilvyInteractiveTeamCustomerRelationshipCustomerRelationshipManagement(CRM)Management(CRM)VladimirMJordanovDecember2nd,2000OglivyInteractiveBeijingBoot-camp&Ogilvy&2Customers?Customers?Whoaretheseguys?Whoaretheseguys?&Ogilvy&3WhatisCRM?WhatisCRM?In-depthanalysisofcustomerIn-depthanalysisofcustomerbehaviorandattributes.behaviorandattributes.ApplyingoftheachievedApplyingoftheachievedknowledgeintheformulationofknowledgeintheformulationofmarketingcampaigns,strategiesmarketingcampaigns,strategiesandtreatmentplans.andtreatmentplans.MorethanjustasetoftechnologiesMorethanjustasetoftechnologies–itisaprocess.–itisaprocess.&Ogilvy&4WhyCRM?WhyCRM?Companyexistence–questforCompanyexistence–questforprofit.profit.ThreewaystoincreasetheThreewaystoincreasetheprofitabilityofthecustomerbaseprofitabilityofthecustomerbaseAcquiremorecustomersAcquiremorecustomersOptimizethevalueoftheexistingOptimizethevalueoftheexistingcustomerscustomersRetaintherightcustomerslongerRetaintherightcustomerslongerAcquiringnewcustomercost5-10Acquiringnewcustomercost5-10timesmorethatretainingthetimesmorethatretainingtheexistingoneexistingoneLoyalcustomerswillwillbuyLoyalcustomerswillwillbuymoreandarewillingtopaymoreandarewillingtopaypremiumpricespremiumprices20/80rule–20%ofthecustomers20/80rule–20%ofthecustomersgenerate80%oftherevenuegenerate80%oftherevenue&Ogilvy&5WhyCRM?(continued)WhyCRM?(continued)Serviceleadersenjoythefollowingadvantageovertheirlow-Serviceleadersenjoythefollowingadvantageovertheirlow-servicecompetitors:servicecompetitors:Theygrowtwiceasfast.Theygrowtwiceasfast.Theyexperiencea6%annualgrowthvs.a1%shareloss(theytakeTheyexperiencea6%annualgrowthvs.a1%shareloss(theytakecustomersawayfromtheircompetitors).customersawayfromtheircompetitors).Theycancharge10%morefromtheirproductsandstilltakeTheycancharge10%morefromtheirproductsandstilltakecustomersaway.customersaway.Theyenjoy12%vs.1%averagereturnonsales.Theyenjoy12%vs.1%averagere...