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Global approach to engage with local consumers

Global approach to engage with local consumers. Agnes Gawel Consumer First 06 – Brussels, 25th October 2006. Key topics. Centralized approach; designing and creating processes, structure and guidelines for a global email communication with consumers in 65 countries.

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Global approach to engage with local consumers

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  1. Global approach to engage with local consumers Agnes Gawel Consumer First 06 – Brussels, 25th October 2006

  2. Key topics • Centralized approach; designing and creating processes, structure and guidelines for a global email communication with consumers in 65 countries. • Segmentation and targeting of +100 million consumers – how to find out and address their needs? • Establishing a track record of success to prove that e-marketing works - exploring ROI in consumer interaction and loyalty.

  3. The marketplace • The market place: more than 950 million phones to be sold in 2006 • Maturing industry: from feature- to brand-driven

  4. The marketplace • The market place: more than 950 million phones to be sold in 2006 • Maturing industry: from feature- to brand-driven

  5. Who’s the customer? • Consumer vs customer: who owns the relationship? • Consumer in control

  6. Consumer interaction points PC applications Phone kit Material In-device SEMC Web Marketing Operator Web Word of Mouth Operator CC Store SEMC CC

  7. Sony Ericsson online

  8. Campaign mgt platform Global product db Regional contact db CIP database Marketing campaign database Local contact db Local campaign db Local service db Online marketing at Sony Ericsson • Scattered global, regional & local databases • No consistent data structure or data collection • No consistent online communication • Build one central contact db • Create a tactical framework

  9. Email marketing– maintaining the relationship, creating a dialogue • 12-15 global campaigns to 65 countries in 30 languages E-newsletters Launch e-mails Campaign emails “Profile e-mails”

  10. Implementation of knowledge - Example of segmentation: different recipients of the same newsletter Ownership based headers Product related top items Targeted informational content Market specific content Preference or behavior based content

  11. Segmentation model • Attributes are pieces of user information relevant for segmentation, profiling, marketing or administration purposes • Attributes are either: • derived from the user’s input (registration, surveys or user stated preferences) • derived from user’s behavior • computed from other attributes • Computed attributes are derived from other attributes to simplify targeting, segmenting and classifying the consumer

  12. Segmentation model Use attributes scoring to identify consumers • Sony Ericsson uses consumer communication categories in order to target marketing • A segmentation scoring model is used to map a customer to the right category • Only attributes that affect what category a user belongs to are input to the segmentation model • Attributes that are not input to the segmentation model can still be used for other types of personalization and targeting (e.g. on-line behavior) • The scoring model can be used regardless of the user’s profile maturity, i.e. the number of available attributes. Scoring Model Attributes

  13. Customer Lifetime Value • Companies spend approx. 95% of their marketing € on new-sales • On average only 40% of customers are loyal • 60 % of a company’s customers are seen as prospects, not customers • Transaction is part of the relation – not the relation

  14. Consumer value - loyalty Loyalty rate Registration rate Total loyalty: 43,5% 10% 75% Advanced CLM Total loyalty: 41,0% Registration 5% 60% Basic CLM Total loyalty: 39,8% 2% 30% No CLM Consumer base Total loyalty: 39,8% No registration 40% No CLM

  15. Next phase MyPhone – a closer link with the consumer through personalization A personal user centered area • in which the engagement with Sony Ericsson mobile phones is extended online • and user experience is optimized • with content and services representing customer services, product functionality and Sony Ericsson .com • based on the preferences, needs and behavior of the user.

  16. Round up • Global approach with local awareness is feasible worldwide • It requires solid technology combined with a sound strategy. • It’s a never ending process for improvement (analysis & learning) • It requires both top management involvement as local field people • It certainly pays of (strong brand recognition at highest efficiency) Contact: Agnes Gawel eDM & CRM manager agnes.gawel@sonyericsson.com

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