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Marketing activities conducted outside the Web, including telemarketing activities, were transferred to the new system. The three main functions of the new system were 1. Importing. The system used the email address as a key. When this was not available, it constructed a match key from the rst and last names of the contact and the company name. A log was kept of all data imported to or exported from the database. 2. Processing. Country names, state names, area codes, phone numbers, zip codes, region codes, and activity dates were standardized. Competitors names were removed from the database. Standard SIC codes were appended. Leads were assigned to the appropriate salesperson. Incomplete records were agged, and blank elds were populated, either by software or manually. Separate tables were set up for individual contacts, activity information, event details, and data sources. 3. Reporting. Leads were furnished to the SalesLogix system daily. Daily, weekly, and monthly reports showed the growth of the database in the past, as well as the current volume of leads in the database. The system also created a weekly partner report to show the leads generated by partners.
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The new system decreased the cost per lead to about $50. It did so through Establishing a 100 percent tracking mechanism for every lead that was generated worldwide Setting up lead-quality metrics that ltered out 25 percent of the raw leads Increasing lead volume from 300 to 9600 per quarter Increasing online events from 2 per month to 12 per month Introducing biweekly e-marketing campaigns for customer and partner communications
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Bringing telemarketing in-house and integrating it with the lead ow process Setting up a global lead-distribution and lead-reporting system that operated through the Web
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BMW developed a unique program for building a relationship with prospects even before the prospect made a rm decision to purchase a car. The process was called Extending the Dialogue. BMW produces luxury cars that have a erce customer brand loyalty. At the time that BMW started this program, the entire luxury car marketplace was sharply down sales were 9 percent below the previous year s sales. In addition, BMW s key competitors, Mercedes Benz and Lexus, were expanding their product lines with strong product offerings. The start of the new BMW program was a real-time prospect scoring system that identi ed BMW s best prospects. The program was set up to communicate with these targeted prospects over a 6-week period. Before the program could begin, Kay Madati, director of relationship marketing, the genius behind the program for BMW, asked msdbm of Los Angeles for help in overcoming a number of signi cant obstacles: Twelve different data systems had to be combined into a common marketing database. BMW had to get multiple departments to cooperate with one another and to share their data freely with a central source. BMW had to create an environment in which there was unsel sh sharing of response and sales information among competing vendors. The company had to get a highly successful and independent dealer organization to share its information with BMW. It had to get prospects to describe their purchase intentions. It had to recognize that high-end consumers do not respond well to direct marketing efforts because they receive them from many companies.
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It had to deal with the fact that many consumers computer equipment had slow Internet connections and Web browsers (like AOL) that could not receive HTML emails. BMW had not yet computed the lifetime value of its customers. At rst, BMW could not deliver personalized content about the products that the customers owned or were interested in. BMW lacked a scoring system to determine who would be a great or a valuable prospect. In the past, BMW had not used accurate methods of evaluating success, such as control groups. BMW had to shift from being an entirely product-oriented company to being a customer-oriented company.
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