Grey worldwide strategic repositioning through crm

1. Grey Worldwide :
Strategic Repositioning
Through CRM
Harvard Business school case

2. What is Grey WW-HK/China?
What do they do?

3. Background
• Established in 1978
• Communications industry
– Focuses on Communication
– Wide range of Marketing
• 16 global partner companies across the world
• Specializes in Integrated Marketing Expertise

4. What is the present scenario?

5. Looking to expand its base in
Asian Markets, especially China

6. Objectives of the company?

7. • Create customer value through GRM
• Integrated Marketing Approach
• Shift focus from Brand equity to customer
equity

8. • Strengthen integrated customer
knowledge database
• Assess and arrive at measurable Return of
investment goals
• Take CRM platforms across the
organization

9. • One-to-one customer relations
• One stop support management
• Focus on GRM to provide best solutions

10. What are the issues being faced?

11. Rising Consumer
Expectations

12. New Technologies resulting
in low price competitors

13. Increasing Competition

14. Other issues?
• Increasing cost of acquiring new customers
• Pure-online players producing competitive
high quality products at lower prices
• Strong price pressure
• Smaller Asian Market

15. CRM in Asia?

16. • Smaller Market
• AMR Research says CRM industry would
be $17b by 2003
• Including CRM for 600 million difficult than
60 million
• 14 times growth is expected between 1986
to 1999

17. Some trivia
• Cost to acquire new customer is 5 times
than retaining the new customer
• Only 50% of sales are accounted from
CRM performance
• 11 customers acquired by spending $3500
whereas 23 customers retained for same
cost

18. So, what is the strategy used then?

19. Do not compete on cost with
competition

20. Build a better, efficient and cost effective
CRM strategy

21. Repositioning with defined e-marketing

22. Data mining and customer focus as key
focus area

23. Differentiate from competitors through CRM
preposition

24. Customer
Management
Plan
Customer
care
Customer
growth
Customer
Loyalty
Customer
Acquisition

25. Philosophy for customer
Management focus
• Build Brands
• Develop and manage customers
• Create positive brand experience for
customers
• Knowledge of customers through constant
dialogue

26. Grey Relationship Management
Brand Futures+ - Target companies that had
traditional marketing needs.
GRM Charter – Target companies that has strong
marketing and brand but want to develop the CRM
vision and plan.

28. GRM Philosophy
• Create, identify, evaluate, enhance Grey IP
• Institutionalize key processes and strategies that
are developed through customer interaction
• Cross functional skill development for team

29. What steps can be followed by
Grey to implement the CRM
solution?

30. • Perform customer analysis, segmentation
and market analysis
• Know more about customers faster than
competition and turn that knowledge into
action even faster
• Campaigns and programmes leading
towards CRM strategy

31. • Online and offline strategic consulting
• Educating customers about products and
benefits/risks
• Look for external opportunities to raise
revenue as part of cost cutting

32. • Develop strategies and products to retain
existing customers
• GRM philosophy training to employees
• Redefine customer value
• Deliver customer centric strategy by
integrating and evolution of strong
feedback mechanism

33. • Interaction with customers through CRM,
one stop helpdesk..
• Process optimization in front-end and
back-end office systems
• Position itself as trusted, sustainable
partner among clients
• This solution should be customizable to
support future expansion for Grey

34. CRM implementation ideally positions Grey
in the optimum space of Knowledge and
Strategy execution

36. And how do we measure the
effectiveness of the CRM
implementation?

37. • Brand equity
• Customer Loyalty
• Customer Retention

38. References
• https://hbr.org/product/grey-worldwide-
strategic-repositioning-through-
crm/HKU164-PDF-ENG
• Janemcalevey.com
• http://www.authorstream.com/

39. Disclaimer
Created by S Varadharajan, IIT Madras,
during an internship by Prof. Sameer
Mathur, IIM Lucknow.
www.IIMInternship.com