Customer Relationship Management In India- Case Of Volkswagen India 666se

WHY CRM IS A NECESSITY! •

It typically costs 5-10 times as much to acquire a new customer as it does to retain an existing one.

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A recent McKinsey study showed that the average new customer spends $24.50 at a given web site in the first 3 months as a shopper. The average repeat customer spends $52.50 every 3 months.

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Most companies lose 50% of their customers in 5 years

(Harvard

University)

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70% of repeat purchases are made out of indifference to the seller, NOT loyalty. (eLoyalty)

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The web customer is ‘only 1 click away from your competition’.

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It takes 7 to 17 seconds to make a first impression.

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55% of sales happen because of the first impression only.

WHAT IS CUSTOMER RELATIONSHIP MANAGEMENT (CRM)? • Customer Relationship Management (CRM) is: the integration of sales, marketing, service and strategy, process, people and technology to maximize customer acquisition, value, relationships, retention and loyalty. • A Redeg of your Business from the Outside In. • Customers, Data and Database at the Center of your Organization (Customer-centricity). • 1to1 Marketing: Treating Different Customers Differently.

CRM STRATEGIES Customer Acquisition •

Gain the greatest number of new customers as early in their lifespan as possible.

Customer Retention •

Retain and expand your business and relationships with your customers through up-selling, cross-selling and servicing.

Customer Loyalty •

Offer programs to ensure that your customers happily buy what you offer only from you.

Customer Evangelism •

Enable loyal customers to become a volunteer sales force.

Cost Reduction Improve Productivity Enhance your e-business strategies.

CRM RESULTS Response Rates • Well-executed event-driven marketing campaigns typically deliver response rates of the order of 25% - 50%. Increased Sales • A well-used CRM system typically yields a direct sales revenue increase of 10%-20%. Customer Retention •

Improvement of Average Observed Customer benefit 10%-18% for Customers That Formally Measured.

ROI Justification

• A 10% improvement in customer retention and increased revenues and a 14% increase in customer satisfaction. (Aberdeen Group 2003)

CASE STUDY OF VOLKSWAGEN INDIA

PROFILE VIEW • Volkswagen (VW) is one of the world‟s leading automobile manufacturers and the largest carmaker in Europe. As Volkswagen pursues its goal of becoming the number one automaker in the world by 2018, India has become a key component of its strategy. India is currently the world‟s second fastest growing car market, with shipments expected to more than double by 2018.

CRM PRACTICE -1 “TALKING NEWSPAPER” • VW India created groundbreaking campaigns such as the world‟s first „talking newspaper‟ • It used light-sensitive chips to speak to readers about Volkswagen as they turned the pages of their morning newspaper. • The talking newspaper ad created a sensation in India, and garnered worldwide attention for taking print advertising to a new level. In one year, brand awareness more than quadrupled, increasing from 8 percent to a high of 37 percent.

CRM PRACTICE -2 “ATTRACTING WORKING PROFESSIONALS” • Challenge

• Create brand awareness among working professionals • Build loyalty and aspiration • Influence decision-making

• Solution • Establish VW-branded Company Page on LinkedIn • Enable LinkedIn to recommend their favorite VW models • Use LinkedIn Recommendation Ads to extend reach

CRM PRACTICE -2 “ATTRACTING WORKING PROFESSIONALS” • Why LinkedIn?

• #1 resource for career-minded professionals • Precise targeting by seniority and geography ensures match with affordability criteria, dealership locations

• Results • 2,700 product recommendations in 30 days • 2,300 new followers on VW India Company Page

• 960,000 viral updates about VW car models

CRM PRACTICE -3 “MADE IN INDIA” • Challenge: To foray into the small car segment

• Solution: The campaign created by DDB Mudra and executed by MediaCom, clearly displayed the made in India factor in the Polo which is rolling out of the Chakan plant in Pune.

CRM PRACTICE -4

CRM PRACTICE -5 “THINK BLUE CAMPAIGN”

CRM PRACTICE -5 “THINK BLUE CAMPAIGN”

VOLKSWAGEN PARTNERS WITH MINISTRY OF TOURISM • Keeping in line with this pledge, Volkswagen has undertaken many initiatives to keep Indian cities clean and green following the introduction of this campaign. • The biggest step so far comes now with the association with the Ministry of Tourism‟s „Clean India‟ campaign. Volkswagen will be ing the government in its initiative to keep India cleaner and greener. • This would help it garner more brand connect.

CRM PRACTICE -6 “INDIA ASSISTANCE PROGRAM” The services that this program will offer to their engers will be:

• Travel and accommodation of the engers in the incidence of immobilization or theft of the vehicle. • Transport to destination or habitual residence with luggage and personal belongings. • Towing of the vehicle to VW nearest dealer. • On site repair, if possible. • Dispatch of fuel; Wheel replacement. • Transportation, storage and safekeeping of the vehicle.

CRM PRACTICE -7 “PLANET VOLKSWAGEN” • A new digital campaign, like most of its other initiatives, it is rich in creativity and ideas. It features a rotating globe with different land masses for each of Volkswagen India‟s departments. • Since the brand is not very old but has caught on quickly with Indian people, many want to learn the heritage, technology and German company‟s background. • There‟s a Junior section targeted at kids who Volkswagen see as future customers.

FLEETCOM SYSTEM & CRM SOFTWARE • Volkswagen's Fleetcom system flexibly s the network of relationships comprising Volkswagen's subsidiaries, dealers and customers. • Oceans 5.0 CRM software provides Volkswagen with campaign management, management, history and an integrated contract management module. • Together both these softwares form a formidable CRM system for Volkswagen.