IE381 Management Information Systems Korean SIS case Chosun Daily -CRM

1. Reader Customer Journalism IE381 Management Information SystemsKorean SIS caseChosun Daily -CRM POSTECHClass Term Project Spring 2006 MIS Group #5

2. Contents Investigation Design Implementation Evaluation Future Work

3. Company Background INVESTGATION Design Problems Implementation Evaluation Future Work

4. Chosun Daily Background Number One In Korea

5. Problem • Localized Offline Customer Database • Spend lots of money in customer acquisition • No direct channel to customers • No managed information on long term customers. I moved to my new apartment and I have subscribe to Chosun Daily again I am a life time customer of Chosun Daily, but they don’t give me any discount.

6. Scope Investigation Design Planning Implementation Key Success Factor Evaluation Future Work Infrastructure

7. Scope (May 2003 – May 2005) • Infrastructure building • Integration of localized customer DB • Establishment of Online Customer Loyalty Program • Classification of articles suited to detailed customer segments

8. Planning (2 Steps) Infrastructure First! CRM Implementation Next!

9. Key Success Factor in CRM Customer Database Standardization Efficiency Integration Capacity Stability Flexibility

10. Infrastructure Branch/Office Customer Analysis Multi- dimensional Analysis Customer Center Executives & Sales & Publishing Sales DW Data Integration OLAP System Publishing Data Extraction Conversion Integrated Billing Data Analysis Mart Campaign Management Internet Premium Customer Homepage CTI Web Email External Data Branch Customer

11. Investigation Design Implementation Evaluation Future Work

12. STEP 1 STEP 2 STEP 3 STEP 4 Stepwise Implementation Data Collection Data Extraction Establish CRM Strategy & Implementation Apply CRM Customer Information Integration Data Refinement

13. Subsidiary Companies PROBLEM Customer information is not integrated

14. Integration Differentiate Customer Profitability (Distinguish Long-term Customers) Integrated Billing System Create a Database Analysis + Customer Selection Keep Transferred Customers Customer Targeting + Relationship Marketing Increase Transition Cost Single Sing On Metrics

15. Customer Information Customer Interaction Direct Indirect Banks Telecom Retail Airlines Packaged Goods Drugs High Interaction Frequency Personal Computers Internet Infrastructures Low

16. STEP 1 STEP 2 STEP 3 STEP 4 Stepwise Implementation Data Collection Data Extraction Establish CRM Strategy & Implementation Apply CRM Customer Information Integration Data Refinement

17. Customer Retention Program Frequency/ Loyalty Program Create a Database Analysis Customer Service Customization Customer Selection CRM Satisfaction Customer Targeting Relationship Marketing Rewards Program Community Building Metrics

18. Premium Service for Long Term Customers! MorningPlus Premium Service Email address, preference, age, family relation ships Education Event Life Entertainment Tool for Collecting Further Customer Information Customer Center Inside Chosun Additional service & content provider

19. Investigation Intangible Benefits Design Implementation Evaluation Tangible Benefits Future Work

20. Intangible benefits Customer Acquisition Customer Retention Enhance Customer Loyalty Efficiency in Sales/Marketing

21. Tangible benefitsWhy is a Long Term Customer important? Profit Long term customer Time 1 year 2 years 3 years When the customer churn rate is high

22. Sales No clear effect in sales Chosun Daily is a private company and it tends to reduce sales to avoid tax The newspaper industry is losing sales due to other competitors such as online portals Source: KorCham

23. Investigation Design Implementation Evaluation Future Work

24. Reference • HP Success Stories • Chosun Daily CRM • Chosun Ilbo AD Journal 2004 Summer • Chosun Ilbo AD Journal 2005 Spring • Korea Press Foundation, Monthly Newspaper and Broadcasting

25. Q&A

26. THANK YOU MIS is One of the Best Courses in POSTECH!

27. Appendix

28. Appendix