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    mash68
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    Greater South Telephone implemented a successful data mart consolidation pilot program that achieved a 65% ROI and $27 million savings in one year. They now propose to implement an analytical Customer Relationship Management (CRM) solution to create a single integrated view of customer behavior and improve customer acquisition, retention, and profitability. The ROI calculation estimates a 33.79% ROI over 5 years with $1.689 million net margin after taxes on a $5 million investment based on targeting customer segments like married couples with children that spend more on average.

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    Greater South Telephone implemented a successful data mart consolidation pilot program that achieved a 65% ROI and $27 million savings in one year. They now propose to implement an analytical Customer Relationship Management (CRM) solution to create a single integrated view of customer behavior and improve customer acquisition, retention, and profitability. The ROI calculation estimates a 33.79% ROI over 5 years with $1.689 million net margin after taxes on a $5 million investment based on targeting customer segments like married couples with children that spend more on average.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    14 views6 pages

    Greater South Telephone

    Uploaded by

    mash68
    Greater South Telephone implemented a successful data mart consolidation pilot program that achieved a 65% ROI and $27 million savings in one year. They now propose to implement an analytical Customer Relationship Management (CRM) solution to create a single integrated view of customer behavior and improve customer acquisition, retention, and profitability. The ROI calculation estimates a 33.79% ROI over 5 years with $1.689 million net margin after taxes on a $5 million investment based on targeting customer segments like married couples with children that spend more on average.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Greater South Telephone

    Implementation of Customer Relationship Management

    GST Brief history


    Year 1903 third largest local exchange carrier Year 2000 Providing a complete menu of state-of-the-art telecommunications services 13 million customer base 11 states 28,000 employees - $ 6 billion annual turnover Objective Improve Sales Revenue & Maximize Marketing Investments How ? Leverage the new Enterprise Data Warehouse (EDW) with Analytical Customer Relationship Management (CRM) solutions.

    Current Situation
    Data mart consolidation pilot program successfully implemented with a ROI of 65% and savings of $ 27 million in 1 year. Customer information could be accessed quickly, but no analytical tools available to improve take rates. Run cost for current CRM - $ 3 million annually with no measurable ROI. CRM resulted in Updated call center & new sales force automation tool.

    New Proposal
    To have single integrated view of the customers behavior by modeling of detailed data, thereby improving customer acquisition, customer retention and customer profitability. Implement analytical CRM solutions. First phase Business Discovery completed.

    ROI calculation
    Customer relevant for proposed CRM Incremental take rate Average monthly revenue Gross Margin Cost of calling incremental customers Depreciation Professional Services (consulting) Ongoing Maintenance AMC charges SOW bill Frauds Cost of capital Total Costs Net Margin (-) Taxes Net margin after taxes Investment ROI 5% $ 42 40% $5 13,000,000 650,000 27,300,000 10,920,000 3,250,000 1,000,000 1,000,000 200,000 630,000 50,000 1,365,000 700,000 8,195,000 2,725,000 1,035,500 1,689,500 5,000,000 33.79%

    5% 14%

    Suggested Solutions
    The new CRM will help in targeting relevant customers. For example, married couples with two phones and children spend about 20% more on a monthly basis than the typical customer spends. Instead of obtaining 3rd party data, we plan to use incentivized referral program to existing customers for reliable sourcing of potential customers. Appropriate time frame for analysis will be from 2nd year, since the 1st year will be focusing on setting up of the systems and begin data collection.

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