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BMW SMA Project on CRM

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Cynthia Lim

on 3 November 2015

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Transcript of BMW SMA Project on CRM

BMW Case Presentation:
A Global CRM Initiative

PART 1: THE BACKGROUND
Traditional, product-based marketing proved insufficient

Distribution channels more liberalised and complex

Emergence of Internet and E-commerce transforming consumer behavior

Traditional data collection (e.g. survey) failed to capture consumer behavior and motivation

Relationship marketing capabilities is required to manage customers directly across multiple channels

PART 5: IMPLEMENTATION OF CRM
In 2002, the Group’s new CEO, Helmut Panke adopted the strategy of internal growth through market & product development
2.2 DEFINITION & OBJECTIVES
EFFECTIVE CRM STRATEGY
5.2 Gantt Chart
POR :
VALERIA TELLO QUINTANA
LEIDY SANDOVAL BONILLA
YICETH CAPOTE FERNANDEZ
HAMER MOLINA ARGOTE
GRACIAS...
CONTENTS
PART 1:
INTRODUCTION TO BMW GROUP

PART 2:
CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

PART 3:
SMA ANALYSIS OF CRM
- VALUE CHAIN
- SWOT ANALYSIS
- PORTER'S FIVE FORCES
- BALANCED SCORECARD

PART 4:
BENEFITS OF CRM

PART 5:
IMPLEMENTATION OF CRM

- CRITICAL SUCCESS FACTORS
- GANTT CHART

CONCLUSION
REFERENCES
Bayerische Motoren Werke (BMW) AG was founded in 1916

Headquarter: Munich, Bayern, Germany

One of the "German Big 3" luxury automaker

BMW's marketing slogan since 1970s:
"The Ultimate Driving Machine"

Leading manufacturer of aero-engines during WW I & II
World's 10th largest automobile manufacturer (BMW, MINI, Rolls-Royce)


Primary focus on premium & luxury segment of the market
BMW GROUP:
POSITION IN 2003
Revenue: €41.5 billion; PBT of €3.2 billion
Delivered over 1.1 million of vehicles
1.1 THE GROUP'S OBJECTIVES
Launch new model every 3 months through to 2005
Raise annual sales by 40% for next 5 years
Achieve sales of 1.4 million vehicles
To become the No. 1 producer of premium cars
THE TARGET
1.2 THE GROUP'S CHALLENGES
Pressure on prices generated by increasing competition in the premium car market

Difficulty to sell high-end models in the flat and saturated European markets
2.1 THE NEED FOR CRM
Mitigate risks of losing customers
Reinforce customer loyalty
Improve repurchase rate
Thus achieving strategic fit for BMW
DEFINITION
A business strategy that focuses every business activity a business does on its customers
Designed to reduce cost, increase profitability by solidifying customer loyalty
CRM systems centralises information from all data sources (inside & outside the organisation) to provide a holistic view on customer relationships
OBJECTIVES
To provide a simple, efficient lead management tool with sophisticated marketing & management reporting capabilities

Example of CRM vendors: Siebel Systems, PeopleSoft & Oracle

Customers can communicate with BMW through a multitude of channels
2.3 CRM - HOW IT WORKS
Each time a customer interacts with any of a company’s touch points, the information that is collected (quantitative, qualitative, and behavioral) is sent to the company’s system databases
PART 4:
BENEFITS OF CRM
4.1 Prospect Management
4.2 Marketing
Allows marketing manager to create target group of customers for specific marketing projects

Supports marketing activities conducted by regular postal mail, electronic mail and SMS
4.3 Management Reporting
Consistency in reporting structure

Wide range of report options

Enable benchmarking at staff level in dealerships; and at dealership level for BMW Group

Examples of reports:
Enquiry level (walk-in, phone)
Lead conversions (by salesperson)
4.4 Other Benefits
Information sharing across dealerships

Better allocation of sales resources

Allow sales status reporting and benchmarking

Enable collaboration of customer and sales information
5.1 CRITICAL SUCCESS FACTORS
Planning and setting of direction
Managing service and communication
Strategizing technology relationships
Managing personnel and enterprise
Information protection
Strategizing resource investments and applications
Rewarding and acknowledging contribution
Correct implementation
Customer focused
With CSFs comes Best Practices
High level of communications
Management support
Strategy drives technology
Customer-oriented focus
CONCLUSION
PART 3:
SMA ANALYSIS ON CRM
FOCUS OF CRM
Integrate business processes and customer touch points so that information can be transformed into knowledge for future decision making
3.1 PORTER'S VALUE CHAIN
CRM improves linkages between every activity in the value chain
3.2 SWOT ANALYSIS
3.3 PORTER'S FIVE FORCES
3.4 BALANCED SCORECARD
Kim et al. proposed a CRM specific BSC that captures the various benefits of CRM
Increase effectiveness of prospect follow up

BMW's Road-to-a-sale;
1. Face-to-face meeting
2. Test drive
3. Appraisal
4. Sale
STRENGTHS
Identify and focus on profitable customers
Keeping and maintaining valuable information of customers
Increases sales efficiency
Ensures customer satisfaction
Having knowledge of potential customers
WEAKNESSES
Overload of unnecessary information
Will not succeed with just new data (need to include historical data)
Lack of cultural preparation
Costly to maintain
Difficult to integrate with existing management information systems
OPPORTUNITIES
Enhance customer satisfaction
Increasing sales base
Better relationship with customers
Improve customer interactions
THREATS
Use of technology decrease face-to-face interaction
Over-automation
Weak combination with back-office systems
Raising customer expectations
Customer brand loyalty leads to a propensity to continue purchasing, resistance to competitive offers & increase in price flexibility
Starting point of a CRM business model is the customer
Focuses on understanding & analysing customer information

Represents operational excellence & channel management of customer services & management processes


The benefits gained from customers (customer loyalty)


The level of satisfaction achieved by products or services
REFERENCES
Angela Haran, 2005, School of Computing, Dublin Institute of Technology, Kevin Street, Dublin 8, Ireland, Development of a framework to retain customers through customer relationship management

BMW Annual Report 2003, 2004, 2005, 2006

Francis Buttle, 2000, School of Management, Macquarie University, Sydney – The CRM Value Chain

Institute of Direct Marketing, July 2002 – The IDM Guide to CRM Mastery

Julien Couilloud, Eric Meyer, Nancy Prives, & Jon Stegen, 2004 - Customer Relationship Management (CRM)

Kim, J., and Suh, E., and Hwang, H. (2003). A model for evaluating the effectiveness of CRM using the balanced scorecard, Journal of interactive Marketing, Vol. 17, No. 2, p. 5-19.

Martin Reimann & Oliver Schilke & Jacquelyn S. Thomas, 2010, Customer relationship management and firm performance:the mediating role of business strategy, J. of the Acad. Mark. Sc

Patrick Amofah, Amer Ijaz, 2005, “Objectives, Strategies and expected benefits of CRM”, Pages 7-10)

Thomson, 2007 Customer Relationship Management Strategies for Business Markets, Chapter 4, 89-114, Part II, Managing Relationships in Business Marketing
The loyalty and profits achieved depends on customers' experiences on the brand's performance
BMW's aim of being the number one luxury car manufacturer in the world

A robust CRM is the best model moving forward and exhibits strengths BMW needs in achieving it's strategic direction

CRM to boost BMW's revenues by 15-20%, sales force efficiency by 50%, customer retention by 15% and customer satisfaction by 25%
PART 2 CRM
5.1 Identification of Tasks
THANK YOU
Full transcript