Case Studies, CS-21-2550
E. Thompson, A. Bona
14 January 2004
Audi's Three Steps to a Winning CRM Strategy
This case study shows how Audi takes reactive, proactive
and selective approaches to customer relationship
management. It believes its three-step strategy will create
lasting ties with customers.
Customer Relationship Management:
Creating Business Value for CRM
What is a CRM strategy, and how does it
relate to and integrate with other enterprise
business strategies, processes and
Audi is a leading manufacturer in the prestige automobile market.
In 2002 it produced more than 735,000 cars, generating revenue
of over ...view middle of the document...
Customer contact is
often infrequent, and the relationship is primarily with the dealer,
not directly with the manufacturer, which makes it difficult to
ensure a consistent customer experience. Contact between Audi
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and its customers is often a result of negative experiences like
repairs and maintenance. There is often difficulty in convincing
dealers that it would be worth their while to give valuable
customer data back to the manufacturer.
Objective: Audi sees CRM as a strategic marketing discipline for
systematically acquiring and retaining customers. It is taking a
long-term approach to CRM in that, at any one moment, it is
involved with between 30 and 50 different projects around the
world. This case study looks at the results of some of the first 50
Audi's approach can be summarized using Gartner's Eight
Building Blocks of CRM Framework (see "The Eight Building
Blocks of CRM").
Audi's brand values are in being sporty, progressive and
sophisticated, and in having an association with leading-edge
automotive technology. Behind Audi's vision for CRM was the
idea that innovation, intensive dialogue and unique customer
orientation would convince customers to establish long-term
partnerships with it. Audi has analyzed key life stages to look for
customer needs such as improved mobility, convenience and
more space. For example, parents with a new child may want
more passenger space, and a customer who has taken up golf
may want more trunk space.
Customers need to be heard and made aware of what's available
in the Audi product range; otherwise they will look elsewhere. In
its vision of CRM, Audi decided to differentiate between the
entire customer experience and a subset of this, known as the
"contact experience." Audi was aware that the customer
experience is affected by many factors, including car design,
availability of spare parts, the test drive and the attitude of the
dealer. Audi chose to focus on the contact experience, where
some immediate effect could be felt.
The goals of Audi's CRM strategy are to improve directly the
customer's acquisition levels and loyalty. The CRM strategy is
interrelated with the brand, sales and IT strategies for Audi and
the VW group. Audi started by analyzing core...