Presentation Transcript

1. How does your DM, CRM or CLV strategy look like?
2. What is the analysis of your common situation? Are You satisfied with the flow of new customers? Are the customers you are recruiting profitable? Gaining customers Is the retention rate correct? Are the “right” customers leaving you ( = non-profitable)? Can you identify and activate passive customers or customers you are about to lose? Keeping customers Cultivating customers Are your customers buying everything they can from you? Are you satisfied with additional sales or cross-sales? Regaining customers Do you fully understand why your customers leave you? Are your customers coming back?
3. What has experience taught us of thevalue of our customers? In most of enterprises, despite the line of business, the average share of customers is rarely more than 30 %! To gain an extra euro from an existing customer is 5-10 times cheaper than from a prospect! There is a direct link between high market share and the profitability of a company.
4. Why working with data of customers? “Everybody” knows that it is 5-10 times more expensive to gain a new customer than to keep the existing. “Everybody” knows that you can develop your existing customership with additional sales and cross-selling (= improve your market share). We need to know the value of our customers to be able in the best manner to divide the existing resources to gain maximum profitability We need in a “positive way” to discriminate our customers and prospects to gain, keep, cultivate and regain the most potential ones. The database gives credible facts of the outcome of different marketing investments.
5. The way of looking at marketing has changed DA direct advertisement 1960-70 Respons The rate of answers / % DM database marketing 1980-90 ROI Net Sales/the costs of activity per activity CRM customer relationship management 2000 > ROMI and CLV (customer lifetime value) The growth of the portfolio of customers Focus on products Focus on sales Focus on channel Short-term Mass Focus on products Focus on sales Focus on channel Short-term One-to-one Focus on customer Focus on sales Focus on profitability Long term One-to one
6. What are the limitations and possibilities of the different aspects? DA direct advertisement 1960-70 Respons The rate of answers / % DM database marketing 1980-90 ROI Net Sales/the costs of activity per activity CRM customer relationship management 2000 > ROMI and CLV (customer lifetime value) The growth of the portfolio of customers REGISTERS of names and addresses to customers + prospects. REGISTERS of names and addresses to customers + prospects AND customer behavior with identification of a card (or similar) REGISTERS of names and addresses to customers + prospects AND customer behavior with identification of a card (or similar) AND flow of customers and the reasons to it.
7. How we increase the lifetime income We ensure that the customer buys more frequently We ensure that the customer buys for more at any occasion We ensure that the customers stay as customers for longer period (The Annual Income per Customer = Customer frequency x the average purchase The Lifetime Income = The Annual Income per Customer x duration)
8. Customer Lifetime Cycle Ensure the Customers choice by collecting customer data, ensure re-sales, place the customer in the accurate segment of value. Understand the reasons of termination of relationship by behaving politely and by asking if we can keep them informed of what is going on. Active win-back Regain New Start to build the Customer Relationship by rewarding and engaging, give hints and inspiration. Finish Keep Save Additional Sales and cross-sales by giving the customer possibilities of purchasing more products and services. Keep the customer by showing them the additional value of the relationship Cultivate Getting ”bored” Proactive regenerating of the relationship with profitable customers
9. The new Marketing Plan for more accurate communication with customers Type of Activity Process driven Season driven Product driven Goal Gain Keep Retention % Cultivate Growth of frequency Value of individual Regain % purchase Regain
10. Changing the behavior from Focus on Products to Focus on Clients means: The collecting of Customer Data is a primary issue!! The whole organization must focus on collecting and up-dating information of prospects, existing customers and lost customers. Use the Customer Data to enable better decision making (communication, price setting, range of products, organization etc.). Database Opinion Creative communication Organisation Accurate information gives you opportunity to communicate more efficient with Flow of Customers and Behavior-related issues > increases your CLV. Gives you opportunity to work on right prospects to become customers. Give the organization all the reports and analysis needed for a profitable cultivating of your customers.
11. Information of Customers Database Opinion Creative communication Organisation What sort of knowledge do we have of our customers in our database and how do we update the information always to have a correct insight of a customer? contact information demography sosiodemography customer history response history areas of interest/preferences plans for future permission marketing Database
12. Opinion of customers Database Opinion How do we work more systematically and structurally with our customer information to be all the time able to learn more to make better decisions? customer analysis flow of customers the customer CLV migration of customers share of customers and potential to grow scoring analyses segmentation and customer profile customer profitability sales and marketing processes Creative communication Organisation Opinion
13. Creative communication Database Opinion How do we use our opinion to produce creative communication which gives the effectiveness desired and affects the customers as desired? directed information based on information about the customer/prospect always many possibilities to respond and must be measurable link together product, calendar and behavior- based communication take care of your brand in directed communication be ready to use rewards to strengthen the effect/put it in your budget from the beginning Creative communication Organisation Creative communication
14. Organization based and focused on Customers. How do we support the organization to be more effective on successful development of customers? the leaderships understanding and commitment to develop the work for the customers a responsible person for the CRM, who is forming the strategy and is in charge for operations new key figures for measuring development of customers and loyalty. a registered policy always to test new solutions, despite the cost per unit. Database Opinion Creative communication Organisation Organisation
15. The corner stones for successful DM andthe different issues importance in theeffectiveness of direct marketing? The choosing of desired target group c. 40 % The offer c. 30 % Timing c. 15 % Design, text and structure c. 15 % to be noticed: every part of a campaign must be done 100 %.
16. Step one:The Target Group, whom should I contact? How do you find your target groups for your seasonal or product activities? Use the classic “RFM-method” R = Recency (has recently been doing business with you). F = Frequency (has been several times in contact with you or purchased) M = Monitary (has purchased for a remarkable amount).
17. Step two : What shall I offer? The offer must include one or many of the advantages mentioned: earn or save money save time convenience improving your health keep your position gain respect hang along missing critic security for your family purchase smartly avoid physical pain fulfilling your desires keeping up a good reputation having beautiful things be able to attract the opposite sex becoming respected as an individual enjoying life succeeding better than “your neighbor” to avoid problems
18. Step three A: When do I have to act? New customers Active Customers + top 20 % Wish them welcome + average 20-70 % give them chance + bottom 30 % Passive Customers Lost customer Wish them welcome / get new purchase React Regain Have purchased during last 8 month. Have not purchased during last 8 month Have not purchased during last 12 month.
19. Step tree B: When do i have to act? Season related: e.g. weather Christmas birthday Individually related: age sex living place Product related: news extra services out-let
20. Step four: How should I present the offering: The Key components in a Sales letter The Envelope The Responding card The Sales letter Brochure
21. Envelope: Name and address without any tricks. Though, BIGNAME, is well used. It must always be tested, whether information on envelope OR blank works! Differ yourself from all the other mailings. Take into the production ALWAYS something which wakes up the interest. There is two sides on the envelope.
22. Sales letter: You just glance at the entire letter, then one reads what is most interesting. You have only a few a seconds to awaken some ones interest. It is always from one person to one person. The “Johnson box” tells the advantage in few words. Short words, short sentences, headlining (in between). Extra advantage, active P.S. Answers people awaits: What are you doing for me, if I approve Your offer? How do you do it? Who is in charge for the promises you given? For whom else have you given this? What will it cost me? How can I be in contact with you?
23. The Respond card Ad in the receivers data > make it easy to buy. Give the receiver a limited time “window” to act. Always repeat the offering, the card must function as a “stand alone”.
24. The Brochure Gives a wider picture of the product/service itself. Gives possibilities to present satisfied users/buyers. Gives a “certification” that the sender has a large range of solutions. Gives opportunity to additional sales. Give opportunity to cross-sales. Can be used for big or many pictures. Gives opportunity to build up the brand. Stays with the customer after the return card is sent away.
25. Some conclusions build up a customer “club” (= database). Start now, techniques are irrelevant. try your way out: test, learn, make mistakes, adjust, return. be proactive. use a lot of time to strengthen the loyalty among the most profitable customers. develop different offers to promote additional or cross-sales. find interests of value to ensure, that you feel bad to leave the community. listen to your customer and do investigate how satisfied they really are with your solutions > act according to this information. develop proactively your offers in the perspective in which living situation your customer is. send out systematically offers in a tempting manor. test, test and test.