BMW CRM Initiative

CONTENTS

PART 1:

INTRODUCTION TO BMW GROUP

PART 2:

CUSTOMER RELATIONSHIP MANAGEMENT (CRM)

PART 3:

BENEFITS OF CRM

PART 4:
IMPLEMENTATION OF CRM - CRITICAL SUCCESS FACTORSGANTT CHARTCONCLUSIONREFERENCES

PART 1: THE BACKGROUND

Bavarian Motor Work(BMW) AG was founded in

1916Headquarter: 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

PART 2 CRM

THE NEED FOR CRM

Traditional, product-based marketing proved insufficient

Distribution channels more liberalised and complex

Emergence of Internet and E-commerce transforming consumer

behaviour

Traditional data collection (e.g. survey) failed to capture

consumer behaviour and motivation

Relationship marketing capabilities is required to manage

customers directly across multiple channels

Cont..

EFFECTIVE CRM STRATEGY

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

FOCUS OF CRM

Integrate business processes and customer touch points so that

information can be transformed into knowledge for future
decision making

OBJECTIVES

To provide a simple, efficient lead management tool with

sophisticated marketing & management reporting capabilities

Example of CRM vendors: Siebel Systems, PeopleSoft & Oracle

CRM - HOW IT WORKS

Customers can communicate with BMW through a multitude of

channels

Each time a customer interacts with any of a companys touch

points, the information that is collected (quantitative, qualitative,
and behavioral) is sent to the companys system databases

PART 3:BENEFITS OF CRM

Prospect Management

Increase effectiveness of prospect follow up

BMW's Road-to-a-sale;

1. Face-to-face meeting
2. Test drive
3. Appraisal
4. Sale

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

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)

Other Benefits

Information sharing across dealerships

Better allocation of sales resources

Allow sales status reporting and benchmarking

Enable collaboration of customer and sales information

PART 4: IMPLEMENTATION OF CRM