1 Solution INBOX 14/10/09

Customer Relationship Management

Unlock the sleeping potentials

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Introduction Founded in 2001 in Paris, opened a Moscow office in 2008

40 collaborators, consultants, statisticians & web developers

From analytical CRM to operational CRM : from web & data mining to development of « bespoke » CRM solutions

In-depth multi-sectorial knowledge Customer Relationship universe

« Inbox is a consulting firm specialized in customers marketing : analysis of behaviors,

design of relational action plans, reset of loyalty program, … from the analysis of

customers' data and their relationship with the company, we build and develop tools to get

a better knowledge and understanding of their habits and then do influence their

relationship with the Company »

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What we do ?

Data management : to manage a 360°customer vision

Knowledge : to understand the customer behavior

Animation : to influence the customer behavior

Relational Marketing : to interact with each customer

Optimization : to maximize the Return on Investment

Activities steering : to deliver the relevant marketing information

Consulting : to bring relevant & operational recommendations

Training : to develop & increase your know-how

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Evolutions in the context,…

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A new context arose,… new?

Private consumption has been one of the main pillars of Russian GDP growth over the last 10 years.

And should continue to be, even at lower path,…

Household expenditures at constant prices

BR

IC C

ou

ntr

ies

- %

of

gro

wth

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To a certain extent, yes… as,

A progressive saturation of the consumers’ needs

Improvement in the offer

Catch-up of the economy (globalization)

A Russian consumer more demanding

Higher penetration of foreign goods, services

Higher exposure to foreign markets

Over the period 2000 – 2010:

Issuance of “discount card”: Discount first & last BUT: Value destructive Absence of differentiation

• 55% of the CRM initiatives have missed

their targets (Gartner Group – 2009)

• 50% of multi-programs penetration in key urban centers

• 70% of purchase decision making process remains at the point of sales

(Inter-Act System – 2008)

0,2%

20,2%

47,7%

31,8%

Ни одной

От 1 до2

От 3 до 5

Более чем 5

Quantity of cards

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One to One & CRM

A strategic vision

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Positioning

Target

SWOT Analysis

Distance

Capacity to federate

Communication

Competition Communication

Budget

HR

DEFINITION

Customer Relationship Management

Action to manage, organize the links between different persons who do

exchange – positively or negatively – under commercial terms goods and/or services

within constraints (budgetary, human resources, commercial pressure) which lead to necessary arbitration and then,

selection and targeting

Training, job description What for? Me too or Strategic pillar?

Where do I stand today?

Alone or in partnership

Which resource allocations for which results?

Perceived image

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10 Basic Rules of Success

Clearly define from the beginning realistic targets (industry, sector,…)

Build a Business Case and keep it up-to-date

Obtain and keep the support of the General Management

Execute quickly the project to obtain quick results

Limit and control the perimeter of the CRM project

Be aware of change management

Get involved the users throughout the project

Drive (manage) strictly the project

Get it properly integrated into your environment

Measure the results with agreed and shared K.P.I

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Customer DB

Channel Management

Relational Marketing

Customer Service

Sales Productivity

New Product Development

Strategic Marketing

Key advantages of DB set-up

Definition of price policy

Client & Customer Segmentation

Profitability & Efficiency of DM programs

Margin analysis per distribution channel

Customers expectations & preferences

Geo-marketing (competitive analysis) Cost of recruitment or retention of customers

In-depth customers’ knowledge, history of the relations

Market trends

Customer expectation

Sales history per products categories

Demand, volume, profitability simulations

Efficiency of the sales process

Customer satisfaction (follow-up,…)

Individualization of the client knowledge

Individualization of the offers

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Beyond the mirror,…

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From the Funnel… …to Vortex

High Capital Intensity High Content Intensity

Marketing Sales Marketing

Generate Loyalty

Optimize processes

Increase value

performance

Reduce costs

“Tell me what you want, I’ll tell you what you need”

“Tell me what you need, I’ll tell you what I want”

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But different marketing is required,…

• Consumer Insights

• Product/brand benefits

• Monologue

Product

Marketing

• Consumer Behaviors

• Consumer aspiration

• Dialogue

Consumer

Marketing

Today

Tom

orro

w

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A different focus, even though…

“Don’t wonder what your country can do for you, but what you can do for your country”

JFK

“Don’t wonder what your customer can do for you, but what you can do for your customer”

JM Lehu

.

… we’re convinced to BE consumer focus. Indeed, there is a constant

need to listen, understand, engage so as to build a dialogue.

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A different strategy to agree upon,…

Brand is the end

Brand is the mean

The content of the communication

overcomes the direct universe of the brand

and proposes the consumer to get free access to

a world – the brand is the “pass”

It understates a strategy of content instead of advertising or advertainment .

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Your mission : to build proximity

A great proximity with the customer is A KEY axis of differentiation vs competitors - it aims at creating a link based on mutual capability to:

• Listen, exchange, share

• Thank, punish, reward

• Federate, value, entertain

-5

0

5

10

15

20

25

30

35

40

1 2 3 4 5 6 7

Customer profitability over time

Price premium

Referrals

Reduced operating costs

Repeated order

Cross Sales

Base profit

Acquisition

Average length of customer relationship (years)

Because a LOYAL customer is WORTH it

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Your weapon: CRM analytics tools

Segmentation

Assessment

Selection

• Behavioral

• Potential/Value

• Scoring

• Expertise

• Target

• Constraint

100,000

70,000

28,000

The best potential of results and R.O.I

Prospects for special offer, new offer,…

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The efficiency at hand

Where Share of profit

Who Share of Mind

How Share of Heart

Greatest

effectiveness

The more I buy, the more I get!

They take care of me!

They know what I need!

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A context where access to information is getting faster,… really faster

The emergence of cost effective and interactive channels stimulates the industrialization of the customer relation. Even though, this need isn’t fully shared by any company because of: • Cultural barriers • R.O. I

It runs ahead. And current blocking situations met in companies, are mainly due to difficulty for people, departments, teams to work together on a project that commits the company as a whole