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The CRM solution for Consumer Goods FMCG Industry FMCG

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The CRM solution for the Consumer Goods (FMCG) Industry updating customer relationsThe CRM solution for the Consumer Goods (FMCG) Industry update’s marketing.manager is one of Europe’s leading standard Customer Relationship Management solution. The vertical industry paperproduct suite for the consumer goods industry considers the specific requirements of the consumer goods industry. Needless to say, on the well proven basis of update’s CRM suite marketing.manager. Consumer Goods> Challenges facing the consumer The update CRM standard goods industry update marketing.manager for Consumer Goods combines the strengths of marketing.manager — one of Europe’s most > Strategies successful standard CRM software — with the specific > CRM with update requirements of the FMCG industry. Sector-specific workflows and requirements such as the administration of listing fees and > The update approach advertising costs or POS inventory management are fully integrated. > The solution at a glance: selected functionality of marketing.manager The update concept for Consumer Goods Simplify, speed up and boost sales — these are the objectives > Benefits update is striving to meet when developing systems for modern CRM and which at the same time represent the promise against > The update CRM suite: which our solutions are measured by over 700 companies every product overview day. Should you decide to implement the CRM suite marketing.manager for Consumer Goods, you will not only be able to simplify, speed up and boost sales but you will also be able to rise to numerous other challenges with relative ease. Modern CRM solutions will enable you to identify opportunities easily and make sense of complex relationships, ensuring your company is well placed to exploit new media and communication channels. Our product suite integrates all modern communication channels on one single platform. The marketing.manager for Consumer Goods suite has been designed to meet the specific needs of the consumer goods industry. update software AG | A-1040 Vienna | Operngasse 17 -21 | Austria Tel.:+43/1/878 55-0 | Fax:+43/1/878 55-200 | info.at@update4>> | .update> Challenges facing the consumer goods Decreasing efficiency of traditional ad-industry vertising initiatives The global consumer goods industry of the new A strong brand was considered the one and only key millennium is characterised by a number of trends: to success in the nineties, driving companies to in-vest significantly in traditional marketing activities. ?? Trend towards concentration The number of campaigns as well as expenditure on ?? Diversification of sales channels advertising was continually increased throughout ?? Decreasing efficiency of traditional advertis-the nineties in a bid to improve market presence ing initiatives and raise brand awareness. ?? Falling brand recognition versus increasing Today, big sellers of branded goods invest upwards price consciousness of 10 percent of their revenues in marketing. Over 50,000 brands are today vying for the consumers Trend towards concentration attention in Germany alone (Prof. Dr. Achim Spiller, Fewer and fewer big chains continue to swallow up Georg August University G??ttingen, lecture ;Brand the selling area and increase market share. In Ger-Policy;, March 2001). This is coupled with a constant many, the 6 biggest groups accounted for over 90 decline in efficiency, however. percent of total revenue in the non-food sector in 2001 (A.C. Nielsen 2002). In Austria, 5 discounters On the one hand, overwhelming consumers with account for over 90 percent of the food market. In information runs the risk of missing the target. On almost every European country, the 3 biggest trad-the other hand, the costs of traditional advertising ing companies account for more than 50 percent of have risen exorbitantly in some cases. In the USA, for revenues. example, the cost per thousand viewers for TV ad-vertising has increased by more than 500 percent This trend brings little opportunity and yet repre-since the seventies (Esch, F.-.R. und A. Wicke, sents a significant challenge for the consumer goods Herausforderungen und Aufgaben des Markenman-industry: the near-monopoly held by the larger con-agements, Wiesbaden 1999). sumer chains has shifted the balance between manufacturer and seller in favour of the seller. During the nineties, expenditure on traditional ad-Manufacturers are being forced to accept high list-vertising increased much more than revenue among ing fees and decreasing margins and to compete the top 16 in Germanys consumer goods sector with house brands. (source: Marketing fr Frequently Purchased Consumer Goods, Prof. Dr. Henrik Sattler, Friedrich-Schiller-University Jena, 2001). Diversification of sales channels Electronic markets are playing a more important In the USA, the increasingly difficult framework role in todays Fast Moving Consumer Goods indus-conditions of traditional advertising have already led try. Online perfumeries or the increase in the num-to a significant reallocation of marketing budgets; ber of home delivery companies taking orders today, over 50 percent of marketing expenditure is online are symptomatic of the internet era. Given earmarked for direct sales support initiatives (trade that well-established brands which consumers know and consumer promotions etc.). and trust are already being traded on the internet, the challenge for manufacturers striving for success on e-markets lies in strengthening brand awareness and customer relations. Industry Paper | Consumer Goods September 2004 Page 2 Changes and errors excepted ;Managing CRM with Faceless Customers; is one of Falling brand recognition versus the challenges looked at by Frederick Newell in his increasing price consciousness best-seller ;loyalty>;. Newell calls for the use of Not least because of the success of large discount CRM tools to strengthen the brand loyalty of the chains have there been a drop in brand recognition right (i.e. most profitable) customers. Since the clas-and an increase in price consciousness. This trend is sic 1:1 CRM approach of the service industry, for especially true of the food industry. In 1989, 51 per-example, cannot be taken by manufacturers of cent of consumers said they bought most of their goods, Newell recommends using those channels groceries wherever they were cheapest. This figure that will reach the right (most profitable) customer had risen to 63 percent by 2000. segments. Increasing brand loyalty through good customer relations is still the best way of competing By contrast, in 1989 66 percent of consumers said against the house brands of the multi-million dollar they always stuck to the same brand of a particular chains. product, compared with 60 percent of consumers in 2000 (source: GFK). On average, todays German The channels best suited to these types of CRM consumer buys 3.9 different brands per product strategy and which focus directly on the end cus-group in 3.4 different shops, i.e. not only is brand tomer include the internet as well as customer loy-recognition on the decline, so is customer loyalty. alty schemes. And this brings us to the other aspect of CRM strategies in the consumer goods industry: channel partners as well as consumers are both cus-Strategies tomers of consumer goods enterprises. A number of strategies are open to consumer goods companies hoping to combat the aforementioned Once youve understood that and realised that CRM trends. Whatever route they choose, however, they also needs to be used to foster relationships with should be looking to openly embrace a customer-channel partners, therell be one more partner on centric culture. your side and one less competitor to worry about. Professional Customer Relationship Management CRM with update (CRM), based on cutting-edge software technology, is critical in todays business world, and any com-updates marketing.manager for Consumer Goods pany able to work more closely with its channel is a cutting edge, standard CRM software solution partners stands to do well, even in times of eco-designed to meet the specific needs of the nomic downturn, and this doesnt just apply to consumer goods industry. The integrated software manufacturers of premium brands. package boasts full CRM functionality: Gartner Group released a report in April 2002 enti-?? Sales and marketing support and the opti-tled ;CRM for the Consumer Goods Industry: The mum support of trade promotions; Time Is Right;. ;The time is right for CG companies to ?? Sales management, including precision broaden their CRM capabilities,; says Dale management of listing fees; Hagemeyer, Senior Research Analyst at Gartner. He ?? Management of customer loyalty pro-maintains that reducing the conflict and profit drain grammes, including the use associated with trade promotions should be a key of electronic channels such as the internet element in any successful CRM strategy (manufac-and mobile communications. turers spend an average of 13 percent of sales reve- nue on trade promotions): ;CRM is the focal point The solution boasts appropriate functionality and that optimizes the manufacturer/retailer relation-database info areas for handling and automating the ship by minimizing the administrative angst related following typical tasks: to trade promotions and ensuring that brokers and ?? Contact Management sales agents are actively selling the most-profitable mix of products.; ?? Calendar / Scheduling ?? Campaign Management Gartner, as well as other renowned CRM specialists, ?? Telemarketing / Telesales points out that Customer Relationship Management ?? Lead Tracking in the consumer goods sector needs to be inter-?? Opportunity Management preted more widely than the classic definition of ?? Account Management CRM would allow us. ?? Sales Management ?? Call Centre Integration Industry Paper | Consumer Goods September 2004 Page 3 Changes and errors excepted ??many demand coverage cycles as possible. A profit- Service Management able customer is one who brings in steady revenue ?? Order Processing for the entire duration of the customer relationship, ?? Workflow Management who brings in more revenue than the company ?? Document Management needs to spend on his acquisition and support. The ?? Analyses / Reporting concept of long-term customer relations is replacing ?? Decision Support the traditional, product-centric approach to mar-?? Web Integration keting. update’s marketing.manager is web-based and The key to successful CRM is intelligent, strategic supports multi-tenancy. All customer information information management, i.e. knowing what the can be exchanged and business processes triggered customer wants and doesnt want, knowing how over the internet. The benefits of this architecture profitable a customer really is and how much profit are numerous: can be achieved during the customer lifecycle. In short, any information which allows customer po-?? Integrating all sales channels means all em-tential to be exploited systematically rather than ployees can access a single knowledge base selectively. ?? The web can be exploited as a sales channel ?? Personalised customer contact and interac-Intelligent Customer Relationship Management also tive customer service allows companies to identify changes earlier and to ?? An intelligent, learning system, enhancing respond appropriately. marketing.manager for relations between customer and sales rep Consumer Goods is the ideal platform for strategic ?? Greater mobility, as sales reps are relieved CRM and covers all aspects of the customer lifecycle, of routine tasks from customer acquisition to everyday sales proc-?? Different user groups work in the same esses, customer service and the development of database without influencing each other long-term customer relations. ?? Joint use of data ?? Administration is made easier and mainte-Multi-channel CRM nance effort reduced ?? Data protection and organisational require-The use of mass communication media, particularly ments can be met easily as part of a CRM strategy, is key to the success of ?? Can be used internationally: available in 18 FMCG enterprises: it is no longer possible to reach languages, supports multiple currencies, the majority of consumers using traditional chan-boasts world-wide support, ensuring that nels such as direct mail or telemarketing while marketing.manager can be implemented maintaining an acceptable cost/benefit ratio. More locally and more companies are turning to channels such as marketing.manager enables update’s customers to the internet or mobile technologies, which allow for increase productivity in sales and marketing. interaction with a wider audience at much lower Growth rates equal to or far better than those cost. brought by other systems, are costing two to three updates marketing.manager for Consumer Goods times more can be achieved. is geared towards multi-channel CRM and boasts simple and standardised interfaces for all relevant The update approach communication channels. The Customer Lifecycle The solution at a glance: selected Customer relations are by no means a static re-functionality of marketing.manager for source, especially in a sector characterised by short Consumer Goods product lifecycles. A consumer might plump for one Cola soft drink today and go for a drink with higher Decision Support: update marketing.manager for caffeine content tomorrow. Even a trading company Consumer Goods helps you make the most of whose buyers enjoy good relations with the sales customer relations representatives of a branded goods enterprise can, In the marketing arena, communication and service because of staff changes on either side, become a policy is where the greatest potential for improving difficult customer. customer relations lies. On a market characterised CRM is all about lengthening the customer lifecycle by a strong predatory pricing policy and an intensive of profitable customers while striving to generate as price war, it is becoming increasingly difficult for Industry Paper | Consumer Goods September 2004 Page 4 Changes and errors excepted companies to stand out from the competition in The Transfer to Word Processor function allows terms of products. In most industries, service is the order vouchers to be exported to a word processing key to good customer relations, since services are program. Depending on the voucher type and quan-much harder to emulate than actual products. tity factor, the reps stocks are automatically re-duced or increased. updates CRM system addresses the needs and challenges of the FMCG sector. Refunding management As with orders, you can also document refunded Visit and route planning items (give-aways, product exchanges, and To make it easier for customer support operatives to discounts in kind) for each customer. Depending on plan visits, visit frequencies and predefined routes the voucher and quantity factor, the items are defined and maintained in the system. (quantities) entered are added to or deducted from the reps stocks. This ensures that only those items For example, a sales run is to last for 8 weeks, or 40 which may be refunded are displayed. Errors, and working days. A route is created for each working therefore time-consuming corrections, can thus be day and, depending on the required visit frequency, avoided. a customer is assigned to one or more routes. The planned visits can be copied automatically to the Window display and promotional calendar, and contacts automatically scheduled for material management customers at the relevant time. The administration of high-value POS material such Listing agreements as displays, shelf talkers, illuminated displays, shelves/furniture etc. is a major function of Listing agreements (which items, number of prod-marketing.manager. uct facings, price etc. the channel partner must of-fer, e.g. as agreed with Key Account Manager) are Items entered into the system can be checked each stored in the system by customer. time the customer is visited and any changes made accordingly. Users can see at a glance which promo-Listings may also be hierarchically passed on, i.e. tional material, at what value, is placed with which made available to subsidiaries or branch offices. customer, allowing cost-benefit analyses to be car-Listing information is of course available during or-ried out. der and POS entry, ensuring that agreements can be adhered to easily. Campaign Management POS - Point of Sale Selective campaign management is crucial, espe-cially during the introduction of non-generic prod-The POS function allows items to be monitored by ucts to the market. Targeting the right customers outlet according to various criteria (e.g. availability, will enable you to achieve maximum success: opti-placement, number of product facings etc.). A pre-mum campaign planning based on all sales and defined item list with various customer-related filter marketing information. options (listing, strategic item, special offers etc.) is shown, allowing the relevant information to be en-?? Efficient target group definition using nu-tered by item. merous freely definable selection criteria — create personal requirements profiles for Simple order entry each individual customer. ?? Campaign management with overview of Based on various voucher types and quantity fac-all action items and appointments (compe-tors, orders either impact (ex-car sales) or do not titions, loyalty schemes, telemarketing, di-impact (delivery note) on stocks. rect mailings, events, conferences, surveys etc.). Order serial entry shows items which have been fil-?? Management and analysis of results of all tered according to various criteria (listing, cam-sales and marketing activities. paign), allowing data to be entered quickly. When the sales quantity is entered, additional information such as price (standard or customer-specific), condi-Activity and action management tions etc. is automatically calculated by the system. The activity management function creates tasks (customer-related to dos for a defined period) for Industry Paper | Consumer Goods September 2004 Page 5 Changes and errors excepted specific customer groups (selections) which the user The update CRM suite: product overview sees when he makes a customer visit. An overview marketing.manager 6 is update’s CRM suite, of responses to all tasks can be displayed and ana-??consisting of the marketing.manager software and lysed centrally at any time. complementary update.modules. It supports our customers throughout the entire customer lifecycle, A sophisticated function allows actions to be linked from customer acquisition through to services for to tasks, thereby pointing users in the direction of regular customers. specific items in the Order, POS, Free Samples and Refunding info areas (e.g. main focus of sales runs, by customer group). Personalised stock control The stock control function allows each employee to manage his personal stocks and any number of stocks to be managed per employee. Stocks are cal-culated automatically based on the number of items booked in / out (orders, refundings, free samples, stock control). Regular inventories can be carried out centrally, so that stocks as of the current inven-tory date can be verified and reset. Benefits Rapid implementation, smooth operation ??A typical CRM project with update takes just 2 to 6 ?? update.win, the classic client for Microsoft ?? months, depending on the scale of the project, Windowsoperating systems. ??which speaks volumes about the Advanced Rapid ?? update.web allows the functionality of Implementation Package developed by update. marketing.manager to be accessed using a Web browser, enabling customers to post Works

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