New Study Shows Consumer Goods Company CJ Corporation Achieves Double-Digit Returns with CRM from SA

The study, conducted by the ROI Review, a publication of Peppers and Rogers Group, concludes an internal rate of return (IRR, returns after break-even) of 15 percent over three years for Korean consumer goods manufacturer Cheil Jedang Corporation (CJ), a worldwide producer of sugar, flour, cooking oil and processed food. After evaluating a competing CRM point product, CJ saw significant value in SAPs integrated approach to CRM as a way to deliver a more customer- focused business strategy. By leveraging its existing enterprise resource planning (ERP) infrastructure from SAP with mySAP CRM, CJ was able to increase revenues, improve customer acquisition and reduce marketing costs by more effectively using customer data -- a direct result of integrating marketing, sales and service processes with critical back-office operations. Prior to using mySAP CRM, CJ outsourced a variety of discrete consumer marketing campaigns and was unable to share, manage or use campaign information since it was held by a third party. CJ now executes its 94 annual campaigns in-house, achieving a total cost reduction of $839,000 (KRW 987 million). Using mobile sales capabilities with mySAP CRM, CJs sales force has immediate access to promotional, product and service information for improved customer retention and acquisition. CJ has already seen an increase in sales of $252,000 (KRW 297 million) by better identifying revenue opportunities with existing customers. CJs interaction center also contributes $1.3 million (KRW 1.5 billion) to the companys overall IRR calculation by improving service levels based on more accurate business-to-business (B2B) and business-to- consumer (B2C) customer profiles -- information that can also be leveraged to impact the companys marketing and product development efforts. Increased customer service and refined marketing initiatives for existing customers are expected to help CJ realize $1.2 million (KRW 1.4 billion) in retained revenue by June 2005. CJ Corporation is among a number of companies that have achieved positive returns using mySAP CRM.