a fmcg company embracing the new challenges of … fmcg company embracing the new challenges of crm...

© iCentric Group GmbH

A FMCG Company embracingthe new challenges of CRM and

Marketing Automation

Kerstin Plehwe, CEO iCentric Group GmbH,Chairman ECDM©,

Vicepresident of the German Direct Marketing Association DDVFlorence, May 2001


The today´s world is changing

External factors:Exploding customer expectations and increasing knowledge

prices and brand recognitioninformation access

Generation of new channels, death of old onesIncreasing competition

disappearing boundaries non-product influences


Internal changes

Increasing direct marketing know howDramatic changes in technology:

HW/SW pricesDatabase and toolavailability increases

Huge amounts of data but knowledge deficits in all relevant CRM areasCRM hype!


The knowledge GAP

Source: Gartner Group

1993 1994 1995 1996 1997 1998 1999

0

2

6

8

10

4

Existing data (Gigabytes)

Critical decisions/week

IT-resources for analytics

Fact GAP

Source: Gartner Group


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 forthe company, it´s customers and dealers.


CRM is more then what is generallyunderstood*

customers (potential and existing)reference marketssupplier marketsHRinfluencial marketsinternal markets

*source: six markets model of Payne, 1991


Customer Relationship Management (CRM)

operationalCRM

analyticalCRM

Strategic CRM


Key questions of strategical CRM

What are the expectations of our customers?How do organizational processes and theorganization itself have to be adaptedaccordingly?Which technologies support and secure the performance of customer service?How exactly is quality and a professionalservicelevel secured on all levels of theorganization?


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!

Key questions of analytical CRM :


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 overviewof customer data in real time?Are the front ends userfriendly and support high data quality?


CRM and the challenges for a luxury goods manufacturer

Market situation:increasing competition and decreasing brand loyalty of dealers and consumerscontinuos fight for shelf space and increasing price pressure dealer-manufacturerdealers fear direct sales and direct customer access

Manufacturers need new instruments and processes to secure market success


Case Study

The company:established in 1908producer of high quality writing implementspart of the Vendome Luxury Group (Cartier, Dunhill, Piaget etc.)belonging to the Richmond Group (Rothmanns, BAT etc.)placed in approx. 1050 stores acrossGermany, 11 own stores establishedincreasing number of product lines


Case Study

Initial situation:Very limited direct marketing activities towards consumersNo centralized marketing database existing and limited amounts of dataCustomer knowledge very limited and relyingon market researchBrand loyalty depending on dealers and mass media


Case Study

Project goals:Installation of a centralized, customer centric databaseDramatic increase of customer knowledge and professional reportingImplementation of CRM activities across various channels to increase customer loyalty and cross selling


Case Study

Project stepsEvaluation of operational systems and dataprocesses (legacy, customer service, Internet etc.)Definition of Warehouse contents and new data flows incl. Update proceduresDefinition of data mining procedures and report layoutsInitialization of MA technologiesContinuos training and consulting of staff


Web-MiningWebWeb--MiningMining

OLAPOLAPOLAP

ReportingReportingReporting

Data MiningData MiningData Mining

Analytics+Reporting

Customer dataCustomer dataCustomer data external dataexternal dataexternal data

Marketing Marketing InformationInformationWarehouseWarehouse

Call-CenterCallCall--

CenterCenter InternetInternetInternet Direct-Mail

DirectDirect--MailMail

E-MailEE--

MailMail FaxFaxFax WAPWAPWAP SMSSMSSMS

Customer access

Budget-PlanningBudgetBudget--

PlanningPlanning

individualrequests

individualindividualrequestsrequests

countscounts

I N T E R A C T I O N S E R V I C E S

Campaign Building

Campaign Campaign BuildingBuilding

CampaignExecutionCampaignCampaignExecutionExecution

Camapaign Management and Marketing Automation

CampaignControllingCampaignCampaignControllingControlling

CampaignMeasurement

CampaignCampaignMeasurementMeasurement

Overview Marketing Automation (MA)

StrategiesStrategiesStrategies


Case Study

Results:Marketing database operational in <3 monthsData migration successfully completed and data flows installedPOS data gathering installedContinuos customer dialogue started


Key learnings

CRM provides a valid opportunity for FMCG companies to finally bridge the GAP to consumerswin-win situation with dealers has to be designedDecision between inhouse and outsourcinghas to be taken seriously Technology and HR investments should not be underestimatedMA is a valid solution if ressources are limited and action has to be taken fast


Advantages of MA-Outsourcing

Quick start to closed loop Relationship Marketing in a good price ratioWorking and proven functionalities and processes that can be customized very fastExcellent controlling possibilities through contracts and SLG´s Deficits of the own organization and infrastructure don´t prohibit CRM successInternal ressource- and know how limitations can be overcome fast


Potential disadvantages

know how transfer needs to be secured continuoslydependence on service provider inflexible operational systems complicated and time consuming service provider selectionPossibility of a later system transfer should be checkedIS THE ORGANISATION REALLY READY FOR CRM?


Key learnings

Not everything is CRM although it is called/sold that way

Professional RFP´s should be performedCheck references

Not all products are right Not all organizations are readyScalability and flexibility of systems are importantSecure access rights from the beginningPay as delivered


Thank you very much!

Questions and discussions-anytime- are verywelcome!

Kerstin PlehweiCentric Group GmbHObenhauptstr.11D- 22335 HamburgGermanyFon: + 49 (0) 40 / 500 69 - 0Fax: + 49 (0) 40 / 500 69 - 100E-Mail: [email protected]://www.icentric.de

a fmcg company embracing the new challenges of … fmcg company embracing the new challenges of crm...

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