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quire more customers2. Optimize the value of the existing customers3. Retain the right customers longer3. Acquiring new customer cost 510 times more that retaining the existing one4. Loyal customers will will buy more and are willing to pay premium prices5. 20/80 rule – 20% of the customers generate 80% of the revenue4Ogilvy MatherWhy CRM? (continued)q Service leaders enjoy the following advantage over their lowservice petitors:q They grow twice as fast.q They experience a 6% annual growth vs. a 1% share loss (they take customers away from their petitors).q They can charge 10% more from their products and still take customers away.q They enjoy 12% vs. 1% average return on sales.q Industry statistics show that 68% of customers walk away because of poor customer service.5Ogilvy MatherEvolution of CRMqMass MarketingqTarget MarketingqCRM6Ogilvy MatherMass Marketingq Replaced the intimacy of direct salesq One way municationq Wide geographic distributionq Lost is the personal touch with the customerq Mass marketing was enabled trough the technological improvements in TV, radio, printed press7Ogilvy MatherTarget Marketingq Direct mail, telemarketingq Receiving customer responseq Lack of specific data, average response rateq Islands of information8Ogilvy MatherCRMq Next evolutionary step, back to intimacyq Customer loyalty build on:q Understanding of customers wants, needs and valuesq Interactivity with the customer in the way customer prefer9Ogilvy MatherCRM Cycleq Assess? Who are the customers – demographics and lifestyle?? Where do they live?? W