GREY WORLDWIDE: STRATEGIC REPOSITIONING THROUGH CRM

ANALYSIS: ASIAN CRM MARKET

• Increasing competition• New technology leads to

new effectively competing business Models

• Rising customer expectations

• Increasing cost of acquiring new customers

• Changing in the communications industry from generalization to specialization

• Pure online companies are able to produce competitive high quality products at lower prices

• Strong price pressure

• No legacy system that requires conversion so Grey can introduce state-of-the-art CRM tools

• China is a huge potential market

• Focus on CRM will provide some business solutions

• Asian market will enter a customer service era

• Lack of an integrated customer knowledge database

• Strong brand• Existing customer database

and knowledge

Threat Opportunities

WeaknessesStrengths

WHAT IS CRM? GREYS’ PERSPECTIVE

An initiative designed to give a holistic approach in customer management

‘Integrated marketing’ approach:From ‘Generalization’ to ‘Specialization’To create, identify, evaluate, capture, enhance, share and apply Grey’s

intellectual capital A broad concept involving both hardware and software

DEVELOPMENT OF CRM IN GREYDevelopment of CRM philosophy and tools:

Development of 4-point philosophy for customer management focusData mining and customer profiling as key areas in Grey’s CRM strategyCRM implementation tools: ‘Brand Futures+’ and ‘CRM Charter’

Operational Actions:Use of Existing database: customer segmentation, market needs analysisMovement of senior executives to parent companyNew structure used by CRM charter to serve targeted clientsGrey’s companies benefitted from their wisdom and experience

TRADITIONAL CUSTOMER SERVICE VERSUS CRM

Traditional Customer Service CRM No emphasis on building customer

database or having multiple database

Customer acquisition focused

Short term : Used to satisfy customer’s need & requirement only

Minimal use of technology

“Every customer is important” , kind of attitude

Based on Transactional Marketing philosophy

Put lot of emphasis to build an integrated customer database

Customer retention & loyalty focused

Long Term: Database used to segment customer, determining profitable customer, analyzing business strategy

Technology is backbone

“Focus on key profitable customer”, kind of attitude

Based on Relational Marketing Philosophy

TRADITIONAL BUSINESS ASSETS ON WHICH GREY CAN RELY AND HOW IT LEVERAGES THEM TO CAPTURE E-MARKETING CAPABILITIES

Customer databaseGrey can use its huge customer database by integrating it to create a single

customer profileKnowledge integration of business customer by proper segmentation

TechnologyGrey is having technology teeth which they can use to integrate the customer

information from multiple touch point to a single profile to provide holistic view about business and customers

Technology can be used to create a cost effective marketing campaign

Brand Equity“Grey” is a known name which they can use in building relationship and trustCan use brand name to build relationship with major service providers in Asia-

RegionCan attract talented human capital to run the operations & strategy

REDEFINE CUSTOMER VALUE USING CRM

Use Key Account Managers to service high caliber clients with help of KM and further cut costs in serving this key clients.

Integrate Knowledge Management across the firm. It would capture

Strategize using the right market knowledge pertaining to the client

Through high end technology try to tap the opportunity in Data networking & Telephony area

• Customer usage behavior• Contact History• Product enquiries and Corporate

Data

DIFFERENTIATION TECHNIQUE TO BE EMPLOYED

Cus

tom

ized

Ser

vice

plan

acc

ordi

ng to

the

clie

nt typ

e

KMAs (Key Acco

unt

Managers) assi

gned

for high-ca

liber c

lients

Data Warehousing and Data mining techniques should be

employed to create a Integrated Knowledge

Management across the firm

Build and Integrate a strong

feedback mechanism to

help evolve the Customer

centric strategy

INTEGRATION OF BACK-END & FRONT-END PROCESSESFormulate an unique process of gathering data

• Optimization in both front-end and back-end as per operational needs

Train entire staff to make sure uniformity among all employees, both as per thought process, action and Implementation

Interaction within the firm should be done via CRM Technology

Front-end staff should be encouraged to think strategically

And Back end staff should be able to support them in their claims

BUILDING A CUSTOMER PROCESS BLUEPRINT THAT CAN MAXIMIZE THE UTILITY OF ITS EXISTING CUSTOMER BASE

Define objective• Specify the objective of CRM for Asia region- Build customer equity as well as brand equity

1Methodology

• Select the technology and techniques such as Data mining and customer profiling to analyze data

2

Implementation• Select appropriate implementation tools and programs suitable for geography like Brand Future+ & GRM Charter

Organizational Alignment• Recruit and train people to implement the idea• Build organizational culture having GRM orientation

3 4

CRM PROCESS FRAMEWORK

CRM PROCESS FRAMEWORKOther than above two parameters, CRM strategy should be assessed on following additional parameters :

People: Does CRM strategy envisage dedicated teams for CRM implementation and development of management talent to capture the benefits and build it into system?

Learning: Does CRM enable learning environment for customer facing departments and people?

Customer Value: Will CRM initiatives result into customer value creation and customer satisfaction

Alignment: Is CRM strategy aligned with business strategy?Implementation: what about the cost, time and effectiveness of CRM?Technology: Does company have technological capabilities for CRM or Does it

have technology aptitude to employ and adapt to new technologies which are needed for CRM?

POSITION OF GREY WW-HK/CHINA IN ASIA’S CRM MARKET

Long-term and Sustainable partner• Grey WW-HK/China should aim to position itself as trusted, sustainable partner among its clients.

1Integrated communication company• Company should have a more holistic positioning where they move from ‘Generalization’ to ‘Specialization’

2

Efficient and effective and differentiated • Company should position itself as efficient and effective partner to its prospective clients with a differentiated offerings

Comprehensive business solutions company• Offer a wide range of solutions in brand, PR, Ad, Design etc.• Offer Sophisticated and high-end solution for globally exposed and educated clients

3 4

CRITERIA TO MEASURE CRM PERFORMANCEBrand equity

Added value the brand brings to the companyFinancial value of the brandMarket shareBrand extension

Customer loyalty Repurchase rate and repurchase value by customerLifetime customer value

Customer retentionRetention rateReturn on customer retention investment

THANK YOU

THESE SLIDES WERE CREATED BY SHREYA SHWETIMA, AS PART OF AN INTERNSHIP DONE UNDER THE GUIDANCE OF PROF. SAMEER MATHUR (WWW.IIMINTERNSHIP.COM)