The Asian CRM market was smaller but is growing and taking a shift into customer service due to technological advances in the Internet and E-Commerce. AMR research says it will be worth 16.8 billion in 2003. Asian companies have begun moving away from generalization model of marketing towards the specialization model. Companies are beginning to understand the importance of CRM because it costs 5 times as much to acquire a new customer than to retain an existing customer. Within the Asian Market, China is the main target because it is critical for growth due to its size and strategy.
Opportunities for Grey WW-HK/China to enhance its business model * Asian market is entering into a customer service era. Grey by adopting a CRM system early it will give them leverage to enhance their business model as the Asian market enters into a customer service era. * GRM could help provide business solutions. Costs of acquiring a new customer are so high making a CRM system even more valuable. * There is no current system so Grey can introduce state of the art CRM tools. * One to one customer relationships and one stop customer service support. * Strengthen the existing relationships within their organization. This will help build long-term relationships.
Threats for Grey WW-HK/China to enhance its business model
* Increase in competition due to the shift in CRM in the Asian market * Customer expectations are rising
* Technological advances are allowing online companies to produce highly competitive products with lower prices, increasing competitive pressure * Cost of acquiring new customers is increasing; it is now 5 times as expensive as keeping an existing customer.
2. What options (think high-level, i.e. at the organization entity level) does Grey...