Description
reposition strategy of this communication enterprise, media landscape industry, CRM in Asia, customer focus blueprint, CRM and other IMC strategies.
Grey Worldwide : Strategic Repositioning Through CRM
Grey Worldwide Hong Kong and China
- Was established in 1978 as part of the Grey Global network , focusing on “communications” as its core business. - Their Asia strategy focused on building partnerships with local agencies and developing local management talent. - Grey Worldwide Hong Kong and China (Grey WWHK/China) is repositioning itself through defined emarketing and CRM strategies for the Asian market. - It has very strong umbrella brand equity, but the brand capital has to be invigorated through a renewed e-marketing focus.
Media Industry
Asia Befor e 1990 Early 1990 Late 1990 - “Integrated” Marketing Approach because most cost-effective and emphasis on One-to-one customer relationship strategy. -Moved from “generalisation” towards “specialisation” model. -Various depts began specialising in different areas ( advertsing and PR) which led to the creation of CRM. US - Earlier , Specialised departments for individual expertise (different depts for customer interaction , advertising , design , PR) -Moved towards an “integrated marketing” approach
Media Market in 2001
- Stiff Competition among advertising agencies , management consultants , marketing businesses and consultants. - Media market in chaos as companies across several industries( consulting , branding , media) redefined their roles in terms of marketing , media and content.
Trends
Increased Competition Boundaries between core communications agencies becoming blurred. Easy availability of tools due to internet technologies. Cost pressures on traditional businesses . Constant margin squeezes and falling commissions( From 15% to 2%) Media and Internet CRM Technologies Provided Innovative communications solutions: 1) Internet centric technologies 2) Enhanced Internet telephony and e-marketing communications. Rising Customer Expectations Methodical CRM approach- Identify , attract and retain the most valuable customers thus create loyal customers. Renewed customer focus , driven by technology , market and media changes. Focus internally on process efficiencies to fuel margins rather than outward for market share. Customer service area presented tremendous opportunities to the communications industry for achieving breakthrough differentiation and competitive advantage.
Issues/Contribution of CRM
Issues
-
Unability to quantify CRM capability’s financial impact thus wrong investment decisions and high opportunity costs. Lack of accountability. Difficult measurement of effectiveness. Lack of proper tools to assess the behavioral changes resulting from CRM.
Contribution - 50% ROS attributed by CRM capabilities. “ Measuring customer service effectiveness” one of three customer service capabilities which accounted for 43% ROS impact of moving from average to top-tier performance in customer service.
CRM Industry in Asia
-Growing
market touching US$ 716 million by 2003. -Size is small but growth rate is significantly high. - The traditional customer management economies fueled the growth.
Acquisition Emphasis Gain 6 new customer ($500 each) Retain 5 current customers ($100 each) Total Cost Total number of customers
-Customer
Retention Emphasis Gain 3 new customer $3,000 ($500 each) Retain 20 current $500 customers ($100 each) $3,500 Total Cost Total number of $11 customers $1,500 $2,000 $3,500
$23
management benefits included building life time value relationship & business cost savings
The Difference..??
?
Europe & North America Market ? Sophisticated & High end CRM solutions available ? Better IT infrastructure which provided easy access to customer information ? Size was huge but growth was relatively slower Asian market
? ? ? ? ?
?
Asia – Less sophisticated and more fragmented in CRM needs Consumers needs to be educated in e-business & enabling technologies - Technology adoption rate was slower Size of the market – smaller & more fragmented. Strategy, execution and knowledge mix differ – more focus on retaining customer. Attractive Chinese market – large user base & more technologically forward
Grey WW–HK/China: e-Marketing Strategy
?
? ?
Key issues when developing strategy ideas in a changing market conditions ? Tackle the changing cost structure. ? Specific market forces & their effect on business model. ? Talent management with cutting cost. CRM – a method to avoid destructive prices Successful CRM – strategy with right market knowledge.
?
?
Grey’s Strategy – Differentiation instead of low cost. Two specific challenges: ? Managing Knowledge ? Critical to capture best practices & customer information. ? Integrating multiple customer databases was the biggest challenge ? Enormous amount of knowledge integration critical for building customer equity. ? Managing Technology ? Technology an enabler – a part of its strategy & not the sum of its strategy ? Technology helped in faster & cheaper implementation of its customer relationship philosophy. ? Used to enhance value – offering client database management. ? Applying technology at brand level – Grey’s core strength was brand.
GRM ( Grey Relationship Management)
Objectives: - An initiative to give the agency a more holistic approach to advertising. - Leverage all touch points to build both brand equity and customer equity. - Creation of a single customer database or knowledge base from existing customer data and customer knowledge residing in Grey’s specialised companies. - The main goal was an integrated approach to create , identify , evaluate , capture , enhance , share and apply Grey’s intellectual capital.
GRM ( Grey Relationship Management)
Benefits -Segmentation of customers , predicting loyalty and analysing market needs. -Focus on communications to understand CRM -Tailor-making campaigns and programmes leading towards full CRM Strategy -On-line and off-line strategic consulting. Implementation - Utilised the resources of Grey Worldwide partners such as Grey Direct , Grey Interactive and Beyond Interactive’s competence of educating customers , gathering data , optimisation in front-end and backend of using the internet.
4-Principle Philosophy of GRM
1. 2. 3. 4.
Build brands Develop and manage customers Create a positive brand experience for clients. Build brand through knowledge about the customer through constant dialogue.
GRM Concept - GRM strategy key areas: Data Mining and customer profiling. -Tools used for GRM: Two proprietary products- “ Brand Futures+” and “ GRM Charter ”. -Elevation of a new Management Structure.
-Customer-focused process blueprint
Brand Futures+ Process
The GRM Charter Process
Successful CRM Strategy
Eight Building Blocks of CRM
1.CRM Vision 2.CRM Strategies 3.ValuedCustomer Experience Leadership, Market Position, Value Proposition Objectives, Segment, Effective Interaction *Understanding Requirements *Monitor Expectation *Satisfaction vs. Competition *Culture & Structure *Customer Understanding *People: Skills/Competencies Customer Life Cycle, Knowledge Management Data, Analysis, Market Research Applications, IT Architecture Value, Retention, Satisfaction, Loyalty, Cost to Serve *Act on Feedback *Customer *Communications
4.Organisational Collaboration 5.CRM Processes 6.CRM Information 7.CRM Technology 8.CRM Metrics
*Incentives /Compensation *Partners and Suppliers
“Companies need to exhibit one or more of the eight characteristic in order to be profitable & a key winner in CRM”
Key Challenges
?
?
? ?
Operationalise adopted CRM processes for all employees at all levels of the organization Renewed marketing focus to sustain competitive advantage Reinforce customer value through GRM Price pressure and loss of talent
What Grey WW-HK/China needs?
A company-wide transformation is required to implement GRM philosophy and Culture
A willingness to implement CRM platforms across the organization and develop skills for setting realistic goals & measurable ROI
Issues Addressed
1) Developing an Asia-specific CRM blueprint for its internal management, something that is transferable to Grey's clients.
Customer-focused process blueprint
Front-End Process (Employees)
Back- End Process
2) Customer Acquisition v/s Customer Retention with the strategy of “Differentation” instead of low-cost.
.
Integrated Marketing
Managing and Optimizing Customer Relationships by Leveraging Every Point of Contact
Highly Differentiated
Customer Needs and Value
Personal Contact Not Differentiated “Personalized” Web Site E-mail / E-Newsletter TeleSales/Call Center Direct Mail / Catalog Lead Generation/ Customer Acquisition Retail POS Promotion Direct Response Advertising Marketing Event “Public” Web Site Public Relations Not Customized Highly EXECBREF.PPT Customized Customer Retention/ Sales Expansion
Not Differentiated
?
Marketing and Sales Contacts
3) To what extent the GRM concept should merge technology with traditional marketing philosophy to develop a CRM proposition for its clients and which tools to use.
Customer Relationship Management Integrated Infrastructure
Strategy Customer Interaction Plan Customer Intelligence Plan Technology Architecture Plan Systems Integration Plan Strategy Implementation Plan Organization Product Marketing Managers Channel Managers Field Sales/Telesales Customer Service & Support External Service Firms
Integrated Infrastructure
Processes Communications Planning Campaign Management Sales Development Channel Management Customer Service & Support Technology Marketing Database Data Mining (Predictive Modeling) Campaign Management Sales Force and Call Center Query and Reporting
Integrated Marketing
Direct Channels
Indirect Channels
Direct Mail
E-Newsletter
Field Sales
TeleSales
Advertising
Retail
Marketing Event
Web Site
Recommendations
?
Define your Customer Relationship Management strategy and objectives. Link the CRM strategy to the organization's business objectives. Create a "CRM Blueprint" for developing and executing the strategy. Establish CRM Communications Business Rules that serve as guidelines for planning and managing customer interaction based on customer intelligence. Integrate data on current and prospective customers in a central marketing database. Eliminate the usage of multiple customer databases used to support communications, sales, and customer service. Develop an enterprise customer data acquisition strategy for developing and maintaining customer intelligence. Implement an annual Customer Profile Review to verify and update customer needs. Implement customer management and sales force automation technology to support enterprise-wide customer information access and integrate marketing, sales, and customer service processes.
?
?
?
?
THANK YOU!!!
doc_385095861.ppt
reposition strategy of this communication enterprise, media landscape industry, CRM in Asia, customer focus blueprint, CRM and other IMC strategies.
Grey Worldwide : Strategic Repositioning Through CRM
Grey Worldwide Hong Kong and China
- Was established in 1978 as part of the Grey Global network , focusing on “communications” as its core business. - Their Asia strategy focused on building partnerships with local agencies and developing local management talent. - Grey Worldwide Hong Kong and China (Grey WWHK/China) is repositioning itself through defined emarketing and CRM strategies for the Asian market. - It has very strong umbrella brand equity, but the brand capital has to be invigorated through a renewed e-marketing focus.
Media Industry
Asia Befor e 1990 Early 1990 Late 1990 - “Integrated” Marketing Approach because most cost-effective and emphasis on One-to-one customer relationship strategy. -Moved from “generalisation” towards “specialisation” model. -Various depts began specialising in different areas ( advertsing and PR) which led to the creation of CRM. US - Earlier , Specialised departments for individual expertise (different depts for customer interaction , advertising , design , PR) -Moved towards an “integrated marketing” approach
Media Market in 2001
- Stiff Competition among advertising agencies , management consultants , marketing businesses and consultants. - Media market in chaos as companies across several industries( consulting , branding , media) redefined their roles in terms of marketing , media and content.
Trends
Increased Competition Boundaries between core communications agencies becoming blurred. Easy availability of tools due to internet technologies. Cost pressures on traditional businesses . Constant margin squeezes and falling commissions( From 15% to 2%) Media and Internet CRM Technologies Provided Innovative communications solutions: 1) Internet centric technologies 2) Enhanced Internet telephony and e-marketing communications. Rising Customer Expectations Methodical CRM approach- Identify , attract and retain the most valuable customers thus create loyal customers. Renewed customer focus , driven by technology , market and media changes. Focus internally on process efficiencies to fuel margins rather than outward for market share. Customer service area presented tremendous opportunities to the communications industry for achieving breakthrough differentiation and competitive advantage.
Issues/Contribution of CRM
Issues
-
Unability to quantify CRM capability’s financial impact thus wrong investment decisions and high opportunity costs. Lack of accountability. Difficult measurement of effectiveness. Lack of proper tools to assess the behavioral changes resulting from CRM.
Contribution - 50% ROS attributed by CRM capabilities. “ Measuring customer service effectiveness” one of three customer service capabilities which accounted for 43% ROS impact of moving from average to top-tier performance in customer service.
CRM Industry in Asia
-Growing
market touching US$ 716 million by 2003. -Size is small but growth rate is significantly high. - The traditional customer management economies fueled the growth.
Acquisition Emphasis Gain 6 new customer ($500 each) Retain 5 current customers ($100 each) Total Cost Total number of customers
-Customer
Retention Emphasis Gain 3 new customer $3,000 ($500 each) Retain 20 current $500 customers ($100 each) $3,500 Total Cost Total number of $11 customers $1,500 $2,000 $3,500
$23
management benefits included building life time value relationship & business cost savings
The Difference..??
?
Europe & North America Market ? Sophisticated & High end CRM solutions available ? Better IT infrastructure which provided easy access to customer information ? Size was huge but growth was relatively slower Asian market
? ? ? ? ?
?
Asia – Less sophisticated and more fragmented in CRM needs Consumers needs to be educated in e-business & enabling technologies - Technology adoption rate was slower Size of the market – smaller & more fragmented. Strategy, execution and knowledge mix differ – more focus on retaining customer. Attractive Chinese market – large user base & more technologically forward
Grey WW–HK/China: e-Marketing Strategy
?
? ?
Key issues when developing strategy ideas in a changing market conditions ? Tackle the changing cost structure. ? Specific market forces & their effect on business model. ? Talent management with cutting cost. CRM – a method to avoid destructive prices Successful CRM – strategy with right market knowledge.
?
?
Grey’s Strategy – Differentiation instead of low cost. Two specific challenges: ? Managing Knowledge ? Critical to capture best practices & customer information. ? Integrating multiple customer databases was the biggest challenge ? Enormous amount of knowledge integration critical for building customer equity. ? Managing Technology ? Technology an enabler – a part of its strategy & not the sum of its strategy ? Technology helped in faster & cheaper implementation of its customer relationship philosophy. ? Used to enhance value – offering client database management. ? Applying technology at brand level – Grey’s core strength was brand.
GRM ( Grey Relationship Management)
Objectives: - An initiative to give the agency a more holistic approach to advertising. - Leverage all touch points to build both brand equity and customer equity. - Creation of a single customer database or knowledge base from existing customer data and customer knowledge residing in Grey’s specialised companies. - The main goal was an integrated approach to create , identify , evaluate , capture , enhance , share and apply Grey’s intellectual capital.
GRM ( Grey Relationship Management)
Benefits -Segmentation of customers , predicting loyalty and analysing market needs. -Focus on communications to understand CRM -Tailor-making campaigns and programmes leading towards full CRM Strategy -On-line and off-line strategic consulting. Implementation - Utilised the resources of Grey Worldwide partners such as Grey Direct , Grey Interactive and Beyond Interactive’s competence of educating customers , gathering data , optimisation in front-end and backend of using the internet.
4-Principle Philosophy of GRM
1. 2. 3. 4.
Build brands Develop and manage customers Create a positive brand experience for clients. Build brand through knowledge about the customer through constant dialogue.
GRM Concept - GRM strategy key areas: Data Mining and customer profiling. -Tools used for GRM: Two proprietary products- “ Brand Futures+” and “ GRM Charter ”. -Elevation of a new Management Structure.
-Customer-focused process blueprint
Brand Futures+ Process
The GRM Charter Process
Successful CRM Strategy
Eight Building Blocks of CRM
1.CRM Vision 2.CRM Strategies 3.ValuedCustomer Experience Leadership, Market Position, Value Proposition Objectives, Segment, Effective Interaction *Understanding Requirements *Monitor Expectation *Satisfaction vs. Competition *Culture & Structure *Customer Understanding *People: Skills/Competencies Customer Life Cycle, Knowledge Management Data, Analysis, Market Research Applications, IT Architecture Value, Retention, Satisfaction, Loyalty, Cost to Serve *Act on Feedback *Customer *Communications
4.Organisational Collaboration 5.CRM Processes 6.CRM Information 7.CRM Technology 8.CRM Metrics
*Incentives /Compensation *Partners and Suppliers
“Companies need to exhibit one or more of the eight characteristic in order to be profitable & a key winner in CRM”
Key Challenges
?
?
? ?
Operationalise adopted CRM processes for all employees at all levels of the organization Renewed marketing focus to sustain competitive advantage Reinforce customer value through GRM Price pressure and loss of talent
What Grey WW-HK/China needs?
A company-wide transformation is required to implement GRM philosophy and Culture
A willingness to implement CRM platforms across the organization and develop skills for setting realistic goals & measurable ROI
Issues Addressed
1) Developing an Asia-specific CRM blueprint for its internal management, something that is transferable to Grey's clients.
Customer-focused process blueprint
Front-End Process (Employees)
Back- End Process
2) Customer Acquisition v/s Customer Retention with the strategy of “Differentation” instead of low-cost.
.
Integrated Marketing
Managing and Optimizing Customer Relationships by Leveraging Every Point of Contact
Highly Differentiated
Customer Needs and Value
Personal Contact Not Differentiated “Personalized” Web Site E-mail / E-Newsletter TeleSales/Call Center Direct Mail / Catalog Lead Generation/ Customer Acquisition Retail POS Promotion Direct Response Advertising Marketing Event “Public” Web Site Public Relations Not Customized Highly EXECBREF.PPT Customized Customer Retention/ Sales Expansion
Not Differentiated
?
Marketing and Sales Contacts
3) To what extent the GRM concept should merge technology with traditional marketing philosophy to develop a CRM proposition for its clients and which tools to use.
Customer Relationship Management Integrated Infrastructure
Strategy Customer Interaction Plan Customer Intelligence Plan Technology Architecture Plan Systems Integration Plan Strategy Implementation Plan Organization Product Marketing Managers Channel Managers Field Sales/Telesales Customer Service & Support External Service Firms
Integrated Infrastructure
Processes Communications Planning Campaign Management Sales Development Channel Management Customer Service & Support Technology Marketing Database Data Mining (Predictive Modeling) Campaign Management Sales Force and Call Center Query and Reporting
Integrated Marketing
Direct Channels
Indirect Channels
Direct Mail
E-Newsletter
Field Sales
TeleSales
Advertising
Retail
Marketing Event
Web Site
Recommendations
?
Define your Customer Relationship Management strategy and objectives. Link the CRM strategy to the organization's business objectives. Create a "CRM Blueprint" for developing and executing the strategy. Establish CRM Communications Business Rules that serve as guidelines for planning and managing customer interaction based on customer intelligence. Integrate data on current and prospective customers in a central marketing database. Eliminate the usage of multiple customer databases used to support communications, sales, and customer service. Develop an enterprise customer data acquisition strategy for developing and maintaining customer intelligence. Implement an annual Customer Profile Review to verify and update customer needs. Implement customer management and sales force automation technology to support enterprise-wide customer information access and integrate marketing, sales, and customer service processes.
?
?
?
?
THANK YOU!!!
doc_385095861.ppt