Grey Case Study - Marketing Essay Example
Analyze the Asian CRM market - Grey Case Study introduction. What opportunities and threats could Grey WW-HK/China leverage to enhance its business model? The Asian CRM market was smaller but is growing and taking a shift into customer service due to technological advances in the Internet and E-Commerce. AMR research says it will be worth 16. 8 billion in 2003. Asian companies have begun moving away from generalization model of marketing towards the specialization model.
Companies are beginning to understand the importance of CRM because it costs 5 times as much to acquire a new customer than to retain an existing customer. Within the Asian Market, China is the main target because it is critical for growth due to its size and strategy. Opportunities for Grey WW-HK/China to enhance its business model * Asian market is entering into a customer service era. Grey by adopting a CRM system early it will give them leverage to enhance their business model as the Asian market enters into a customer service era. GRM could help provide business solutions. Costs of acquiring a new customer are so high making a CRM system even more valuable. * There is no current system so Grey can introduce state of the art CRM tools. * One to one customer relationships and one stop customer service support. * Strengthen the existing relationships within their organization. This will help build long-term relationships. Threats for Grey WW-HK/China to enhance its business model * Increase in competition due to the shift in CRM in the Asian market * Customer expectations are rising Technological advances are allowing online companies to produce highly competitive products with lower prices, increasing competitive pressure * Cost of acquiring new customers is increasing; it is now 5 times as expensive as keeping an existing customer. 2. What options (think high-level, i. e. at the organization entity level) does Grey WWHK/China have regarding its pursuit of CRM ? Options for Grey WWHK/China Use the existing database in segmenting customers, predicting loyalty, analyzing market needs * Put together a specialized team within its organization to develop CRM * Utilize the resources of Grey worldwide partners to help pursue a CRM system. * Grey can partner with CRM providers. By outsourcing this function, Grey will be able to maintain a focus on their business. This will allow Grey to enhance their business model while saving costs associated with implementing a CRM program. 3. Compare traditional customer service with CRM.
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What traditional business assets can Grey WW-HK/China rely on and how can it leverage them to capture e-marketing capabilities? Traditional customer service may have multiple customer databases or no database at all. Traditional customer service is based around the company, and used to satisfy customers’ needs and requirements in the short term. Interactions with customers are through only two channels, either on the phone or face to face. CRM is an integrated customer database that uses advanced technology to help build relationships beyond the capacity of traditional customer service.
CRM has all the channels of a traditional customer service plus online channels available to interact with the customer. CRM is also built around the customer first, and not the company. Grey can rely on their customer database, technology, marketing knowledge and brand equity. They can leverage these traditional business assets by integrating technology with the traditional customer service and customer database to create a single customer profile. This will help create a holistic view about business and customers.
Grey is already a known name, which can be leveraged to help build relationships and trust with customers. Grey also indicated that they have already lost some high caliber people to clients. The implementation of CRM, combined with their brand equity, will help them attract the best employees. Grey already has the knowledge and experience needed for this market, proving themselves since 1986 with their billing growing steadily every year. They also have the client knowledge and know how to implement strategy in this market. This will help leverage them in this market to capture the capabilities of e-marketing. . How can Grey WW-HK/China redefine client value using CRM; what differentiation technique should it employ? Grey WW-HK/China can use its traditional customer service and brand equity to differentiate them from the competition. They can redefine client value using CRM by employing a CRM strategy that divides customers into two groups. One group could be traditional clients who need assistance in building their brands. The other could be sophisticated clients who have strong marketing and brand strategies but want to develop a customer relationship vision and plan.
Grey could use the 80/20 rule applying its resources to the 20% of the clients who account for 80% of their profits. Grey can also offer better client value by using CRM to provide accurate information across the company. They can also redefine client value by building lifetime value customers. Grey with CRM can determine the value of individual clients, which will assist them in identifying high value clients. This will make the important clients stand out so Grey can prioritize this client base and create lifetime value with these clients.