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Download A FMCG Company embracing the new challenges of CRM and Marketing Automation
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A FMCG Company embracing the new challenges of CRM and Marketing Automation Kerstin Plehwe, CEO iCentric Group GmbH, Chairman ECDM©, Vicepresident of the German Direct Marketing Association DDV Florence, May 2001 © iCentric Group GmbH The today´s world is changing External factors: Exploding customer expectations and increasing knowledge prices and brand recognition information access Generation of new channels, death of old ones Increasing competition disappearing boundaries non-product influences © iCentric Group GmbH Internal changes Increasing direct marketing know how Dramatic changes in technology: HW/SW prices Database and toolavailability increases Huge amounts of data but knowledge deficits in all relevant CRM areas CRM hype! © iCentric Group GmbH The knowledge GAP 10 Existing data (Gigabytes) Fact GAP 8 6 Critical decisions/week 4 2 IT-resources for analytics 0 1993 1994 1995 1996 1997 1998 1999 Source: Gartner Group © iCentric Source: GartnerGroup GroupGmbH CRM definition CRM describes an integrated management method. It optimizes all customer processes in the areas of marketing, sales, customer service and R&D. It is based on a modern database and a relevant software for activities towards the market and is based on a predefined sales process. The overal goal of CRM is the generation of value adds for the company, it´s customers and dealers. © iCentric Group GmbH CRM is more then what is generally understood* customers (potential and existing) reference markets supplier markets HR influencial markets internal markets *source: six markets model of Payne, 1991 © iCentric Group GmbH Customer Relationship Management (CRM) Strategic CRM operational CRM analytical CRM © iCentric Group GmbH Key questions of strategical CRM What are the expectations of our customers? How do organizational processes and the organization itself have to be adapted accordingly? Which technologies support and secure the performance of customer service? How exactly is quality and a professional servicelevel secured on all levels of the organization? © iCentric Group GmbH Key questions of analytical CRM : How valuable is the customer? What did he already buy? Potential future purchases? What are the individual expectations? How much has been invested? Why do we want to invest more then ITL X? Which competitor is the biggest danger? etc. Knowledge is power! © iCentric Group GmbH Key questions of operational CRM Which service- and communicationlevels should be offered to my customers? Can relevant informations be gathered at all touch points? Do the systems enable a complete overview of customer data in real time? Are the front ends userfriendly and support high data quality? © iCentric Group GmbH CRM and the challenges for a luxury goods manufacturer Market situation: increasing competition and decreasing brand loyalty of dealers and consumers continuos fight for shelf space and increasing price pressure dealer-manufacturer dealers fear direct sales and direct customer access Manufacturers need new instruments and processes to secure market success © iCentric Group GmbH Case Study The company: established in 1908 producer of high quality writing implements part of the Vendome Luxury Group (Cartier, Dunhill, Piaget etc.) belonging to the Richmond Group (Rothmanns, BAT etc.) placed in approx. 1050 stores across Germany, 11 own stores established increasing number of product lines © iCentric Group GmbH Case Study Initial situation: Very limited direct marketing activities towards consumers No centralized marketing database existing and limited amounts of data Customer knowledge very limited and relying on market research Brand loyalty depending on dealers and mass media © iCentric Group GmbH Case Study Project goals: Installation of a centralized, customer centric database Dramatic increase of customer knowledge and professional reporting Implementation of CRM activities across various channels to increase customer loyalty and cross selling © iCentric Group GmbH Case Study Project steps Evaluation of operational systems and data processes (legacy, customer service, Internet etc.) Definition of Warehouse contents and new data flows incl. Update procedures Definition of data mining procedures and report layouts Initialization of MA technologies Continuos training and consulting of staff © iCentric Group GmbH Overview Marketing Automation (MA) Customer Customer data data external external data data Customer access Analytics+Reporting Marketing Information Warehouse Data DataMining Mining BudgetBudget BudgetPlanning Planning Web-Mining Web Web-Mining Strategies Strategies OLAP OLAP counts Camapaign Management and Marketing Automation Reporting Reporting Campaign Campaign Building Building Campaign Campaign Execution Execution Campaign Campaign Controlling Controlling INTERACTION CallCall CallCenter Center Internet Internet DirectDirect DirectMail Mail Campaign Campaign Measurement Measurement individual individual requests requests SERVICES EEMail Mail Fax Fax WAP SMS WAP SMS © iCentric Group GmbH Case Study Results: Marketing database operational in <3 months Data migration successfully completed and data flows installed POS data gathering installed Continuos customer dialogue started © iCentric Group GmbH Key learnings CRM provides a valid opportunity for FMCG companies to finally bridge the GAP to consumers win-win situation with dealers has to be designed Decision between inhouse and outsourcing has to be taken seriously Technology and HR investments should not be underestimated MA is a valid solution if ressources are limited and action has to be taken fast © iCentric Group GmbH Advantages of MA-Outsourcing Quick start to closed loop Relationship Marketing in a good price ratio Working and proven functionalities and processes that can be customized very fast Excellent controlling possibilities through contracts and SLG´s Deficits of the own organization and infrastructure don´t prohibit CRM success Internal ressource- and know how limitations can be overcome fast © iCentric Group GmbH Potential disadvantages know how transfer needs to be secured continuosly dependence on service provider inflexible operational systems complicated and time consuming service provider selection Possibility of a later system transfer should be checked IS THE ORGANISATION REALLY READY FOR CRM? © iCentric Group GmbH Key learnings Not everything is CRM although it is called/sold that way Professional RFP´s should be performed Check references Not all products are right Not all organizations are ready Scalability and flexibility of systems are important Secure access rights from the beginning Pay as delivered © iCentric Group GmbH Thank you very much! Questions and discussions-anytime- are very welcome! Kerstin Plehwe iCentric Group GmbH Obenhauptstr.11 D- 22335 Hamburg Germany Fon: + 49 (0) 40 / 500 69 - 0 Fax: + 49 (0) 40 / 500 69 - 100 E-Mail: [email protected] Http://www.icentric.de © iCentric Group GmbH
