Premium Essay

Audi's Three Steps to a Winning Crm Strategy

In: Business and Management

Submitted By phanhuyen2310
Words 2339
Pages 10
Case Studies, CS-21-2550
E. Thompson, A. Bona

Research Note
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.

Core Topic
Customer Relationship Management:
Creating Business Value for CRM
Key Issue
What is a CRM strategy, and how does it relate to and integrate with other enterprise business strategies, processes and operations? Audi is a leading manufacturer in the prestige automobile market.
In 2002 it produced more than 735,000 cars, generating revenue of over 22.6 billion euros. Audi is part of the Volkswagen (VW)
Group and is headquartered in Germany. It has over 51,000 employees and sells through over 5,000 dealers across more than 100 countries.
Problem: Audi's customer relationship management (CRM) initiative started because of:
• Changes in customer buying behavior.
• Customer relationship improvements in other industries.
• Competitor pressure, exacerbated by impending block exemption rules in Europe.
• Difficulties in managing customer relationships in a dealeroriented, multitier sales organization.
Two immediate factors that drove Audi to invest in CRM were that: a) Audi believed its acquisition and loyalty rates could be improved and b) more customers were seeking direct contact with their car manufacturer, so the customer experience was not as dependent on the dealer. Audi needed a more systematic approach to developing customer lifetime value. In 1999, in a review of its overall sales and marketing strategy, Audi identified
CRM as a required core competency for business success.
CRM poses a number of challenges for an automotive manufacturer. There are multiple customer "touch points" like
direct...

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