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1、&Ogilvy&Mather1Ogilvy Interactive TeamCustomer Relationship Management(CRM)&Ogilvy&Mather2Customers?Who are these guys?&Ogilvy&Mather3What is CRM?qqIn-depth analysis of customer In-depth analysis of customer behavior and attributes.behavior and attributes.qqApplying of the achieved Applying of the a2、chieved knowledge in the formulation of knowledge in the formulation of marketing campaigns,strategies marketing campaigns,strategies and treatment plans.and treatment plans.qqMore than just a set of technologies More than just a set of technologies it is a process.it is a process.&Ogilvy&Mather4Why3、 CRM?qqCompany existence quest for Company existence quest for profit.profit.qqThree ways to increase the Three ways to increase the profitability of the customer baseprofitability of the customer baseqqAcquire more customersAcquire more customersqqOptimize the value of the existing Optimize the val4、ue of the existing customerscustomersqqRetain the right customers longerRetain the right customers longerqqAcquiring new customer cost 5-10 Acquiring new customer cost 5-10 times more that retaining the times more that retaining the existing oneexisting oneqqLoyal customers will will buy Loyal custo5、mers will will buy more and are willing to pay more and are willing to pay premium pricespremium pricesqq20/80 rule 20%of the customers 20/80 rule 20%of the customers generate 80%of the revenuegenerate 80%of the revenue&Ogilvy&Mather5Why CRM?(continued)qqService leaders enjoy the following advantage6、 over their low-Service leaders enjoy the following advantage over their low-service competitors:service competitors:qq They grow twice as fast.They grow twice as fast.qqThey experience a 6%annual growth vs.a 1%share loss(they take They experience a 6%annual growth vs.a 1%share loss(they take custom7、ers away from their competitors).customers away from their competitors).qqThey can charge 10%more from their products and still take They can charge 10%more from their products and still take customers away.customers away.qqThey enjoy 12%vs.1%average return on sales.They enjoy 12%vs.1%average return8、 on sales.qqIndustry statistics show that 68%of customers walk away because Industry statistics show that 68%of customers walk away because of poor customer service.of poor customer service.&Ogilvy&Mather6Evolution of CRMqqMass MarketingMass MarketingqqTarget MarketingTarget MarketingqqCRMCRM&Ogilvy9、&Mather7Mass MarketingqqReplaced the intimacy of direct salesReplaced the intimacy of direct salesqqOne way communicationOne way communicationqqWide geographic distributionWide geographic distributionqqLost is the personal touch with the customerLost is the personal touch with the customerqqMass mar10、keting was enabled trough the technological Mass marketing was enabled trough the technological improvements in TV,radio,printed pressimprovements in TV,radio,printed press&Ogilvy&Mather8Target MarketingqqDirect mail,telemarketingDirect mail,telemarketingqqReceiving customer responseReceiving custom11、er responseqqLack of specific data,average response rateLack of specific data,average response rateqqIslands of informationIslands of information&Ogilvy&Mather9CRMqqNext evolutionary step,back to intimacyNext evolutionary step,back to intimacyqqCustomer loyalty build on:Customer loyalty build on:qqU12、nderstanding of customers wants,needs and valuesUnderstanding of customers wants,needs and valuesqqInteractivity with the customer in the way customer preferInteractivity with the customer in the way customer prefer&Ogilvy&Mather10CRM CycleqqAssessAssessl lWho are the customers demographics and life13、style?Who are the customers demographics and lifestyle?l lWhere do they live?Where do they live?l lWhat are they worth?What is their lifetime value What are they worth?What is their lifetime value potential?potential?l lWhat and how do they buy?What and how do they buy?l lHow can they be reached?How14、 have they responded to How can they be reached?How have they responded to promotions in the past and trough which channels they promotions in the past and trough which channels they prefer to be reached?prefer to be reached?qqPlanPlanqqExecuteExecutel lExecution and management of the marketing camp15、aigns Execution and management of the marketing campaigns and customer treatment plans.and customer treatment plans.l lData gathering.Data gathering.&Ogilvy&Mather11CRM Critical Success FactorsqqArchitectureArchitectureqqData warehouseData warehouseqqData structure and architecture 80%of Data struct16、ure and architecture 80%of the service costthe service costqqAnalysis,ProfilingAnalysis,ProfilingqqCustomer InteractionCustomer InteractionqqSales force automation system.Sales force automation system.qqCall centerCall centerqqThe InternetThe Internet&Ogilvy&Mather12CRM ComponentsqqTwo basic set of 17、toolsTwo basic set of toolsqqData collection toolsData collection toolsqqAnalytical and data delivery toolsAnalytical and data delivery toolsqqData warehouseData warehouseqqData archeologyData archeologyqqDepth and breadth of dataDepth and breadth of dataqqContact informationContact informationqqHou18、sehold informationHousehold informationqqGroup informationGroup informationqqCustomer historyCustomer historyqqPromotion historyPromotion historyqqProduct purchase/usage historyProduct purchase/usage historyqqTransaction rollupTransaction rollupqqCustomer service historyCustomer service historyqqSur19、vey and customer response dataSurvey and customer response dataqqDemographic,psychographics,firmographic and/or credit dataDemographic,psychographics,firmographic and/or credit dataqqCustomer interaction informationCustomer interaction information&Ogilvy&Mather13CRM Components(continued)qqData extra20、ction and cleansing Data extraction and cleansing qqData management and storageData management and storageqqScalability and open technologiesScalability and open technologies&Ogilvy&Mather14CRM EnvironmentqqApplications,PlatformsApplications,PlatformsqqVignette,Vignette,WebsphereWebsphere,Broadvisio21、n Broadvision etcetc qqCommunication channelsCommunication channelsqqTraditional direct marketing,Traditional direct marketing,Electronic direct marketing,Electronic direct marketing,call centercall centerqqData mining,customer profile Data mining,customer profile building building qqData warehousin22、gData warehousingqqOracle,SQL,DB2,Sybase Oracle,SQL,DB2,Sybase etcetc qqData analysis and profilingData analysis and profilingqqeSpectiveeSpective,Webtrends Webtrends etcetc&Ogilvy&Mather15CRM Building Blocks&Ogilvy&Mather16Ogilvy and CRMqqFocused on CRM Focused on CRM qqElectronic Data Marketing(ED23、M)Electronic Data Marketing(EDM)qqM OglivyM Oglivy&Ogilvy&Mather17Ogilvy Interactive China and CRMqqDoes Ogilvy Interactive manage the relations Does Ogilvy Interactive manage the relations with its clients?with its clients?qqHow?How?qqHow can we improve?How can we improve?qqHow our competition mana24、ge the relationship How our competition manage the relationship with its customers?with its customers?&Ogilvy&Mather18The Technology road ahead 2001qqTechnology strategy objectivesTechnology strategy objectivesqqTechnology Strategic key focusTechnology Strategic key focusqqKey technologies and skill25、sKey technologies and skillsqqTraining PlanTraining PlanqqTechnology Laboratory Technology Laboratory qqWork with other companies and organizationsWork with other companies and organizationsqqServices provided by the Technology groupServices provided by the Technology group&Ogilvy&Mather19Objectives26、qqTo To be be a a technology technology center center of of excellence excellence among among the the Interactive groups in the region and worldwide.Interactive groups in the region and worldwide.qqTo To excel excel best best practices practices and and technologies technologies in in the the region27、 region and worldwide.and worldwide.qqTo be on the leading edge of the new technologies.To be on the leading edge of the new technologies.qqTo be innovative.To be innovative.qqImprove,improve,improve Improve,improve,improve&Ogilvy&Mather20Technology Strategic key focusqqCurrently used technologiesCu28、rrently used technologiesqqContent Management SystemContent Management SystemqqActive Server Pages and Web Applications Development Active Server Pages and Web Applications Development qqLight and Medium Backend Database Development Light and Medium Backend Database Development qqFuture technologies29、Future technologiesqqMobileMobileqqCRMCRMqqASP ModelASP ModelqqConsulting technologiesConsulting technologiesqqHeavy backend database development.Heavy backend database development.qqFull scale transaction based e-commerce solutions.Full scale transaction based e-commerce solutions.qqERP and on-line30、 supply chain managementERP and on-line supply chain management&Ogilvy&Mather21Key Technologies and skillsqqOperating Operating Systems Systems Linux,Linux,Sun Sun Solaris,Windows NT etcSolaris,Windows NT etc qqPlatforms Platforms and and Web Web Application Application Servers Servers Zope,Zope,Dom31、ino,Domino,Netscape,Netscape,Apache Apache qqDatabase Database MS MS SQL,SQL,My My SQL,SQL,Oracle,DB2Oracle,DB2qqProgramming Programming Perl,Perl,Python,Python,C,C,Java,Java,Java Java Script,Script,HTML,HTML,DHTML,DHTML,VBSVBSqqTools Tools&Utilities Utilities WebTrends,WebTrends,WebBenchWebBenchqqT32、echnologies Technologies CMS,CMS,CRM,CRM,E-E-Commerce,One-To-OneCommerce,One-To-One&Ogilvy&Mather22Training Plan The training plan for 2001 will be developed in accordance of The training plan for 2001 will be developed in accordance of the Technology Strategic Key Focusthe Technology Strategic Key 33、Focus&Ogilvy&Mather23Technology LaboratoryqqNew technologiesNew technologiesqqSkills improvementSkills improvementqqPet projectsPet projects&Ogilvy&Mather24Partnership with third partiesqqHeavy back-end database developmentHeavy back-end database developmentqqCRM,ERP,E commerce CRM,ERP,E commerce qq34、Internship with leading Beijing Universities Internship with leading Beijing Universities qqPartnership Partnership with with leading leading technology technology companies companies(such(such as as Motorola,Motorola,Nokia Nokia,IBM etc.),IBM etc.)qqPartnership Partnership with with leading leading35、 software software companies companies(Vignette,(Vignette,BroadVisionBroadVision,Oracle etc.),Oracle etc.)qqASP modelASP model&Ogilvy&Mather25Services Provided by Tech.GroupqqContent management solutions design and implementationContent management solutions design and implementationqqFront-end progr36、ammingFront-end programmingqqBack-end programmingBack-end programmingqqSite architecture and integrationSite architecture and integrationqqSite hosting and administrationSite hosting and administrationqqInternet technology and strategy consulting Internet technology and strategy consulting&Ogilvy&Mather26