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The Five Step Approach to Creating Strategic Planning Road Maps
for Customer Acquisition Success
Russell Kern, President & FounderKERN
Katie Majerus, Marketing ManagerAuto Club Enterprises
When Strategic Planning Is Right For You?
• CMO not hearing you • CMO is uncertain of where you are going • Culture of crisis of the minute management• Great plans go awry• Funding elusive• Funds squandered• Programs stuck in a rut, not advancing
Strategy verses Tactics
STRATEGY is done above the shoulders
TACTICS are done below the shoulders
Sun Tzu philosophy
Strategy: Protect Women’s Shoes When it Rains
Tactic: Mini-umbrellas
Strategic Planning Benefits
• Better communication• Improved resource allocation• Identification of innovations
– programs, strategies, tactics, channels, • Clarity of focus for team • Reduction in redundancies• Easier to onboard • Results, Revenue and Implementation
Improvements
9% to 14% improvements of go to market operations within 120 days
Five Steps To Strategic Success
Closed Loop Approach To Strategic Planning
Strategic Ideation and MappingStep 1 - preparationHistorical review, joint planning sessionsStep 2 – outputCreate strategic plan based around business objective
Implementation RoadmapStep 4 - outputSchedule implementations of each tactic and test based on priority
Strategy BriefStep 5 - outputDocument testing details: goal, target, timing, offers, creative, test plan, market selection, media allocations
ExecutionStep 6 - implementationCreate, produce, approve
Results AnalysisStep 7- measurementMeasure performance, analyze results and provide recommendations for optimization
Step 3 - OutputCreate tactics for a given strategy. prioritize tactical executions
Step 1: Effective Leadership
Who’s running the show?
The leader of the planning process must be able to:
• Manage the process• Share critical knowledge• Foster innovations • Transmit a sense of urgency and
enthusiasm to others.
Step 2: Implementation Approach
• Top down:– Given a predetermined business goal, identify all the strategies
and their corresponding tactics to achieve the goal
• Bottoms up:– Look at historical performance of a given set of tactics, build up
from the bottom an integrated plan of tactics and strategies to achieve the goal.
Top Down Model
Objective
Strategies
Tactics
Grow Revenue
Add and RetainHigh-Value Customers
Existing New
Customer Experience Proposition
Basic RequirementsMultiple Ad Format
PlacementRelevancy
DifferentiationsPersonal Experiences
Multiple ChannelsMobile Market
Ad Placement Strategy Personalization Experience
Develop and Implement Marketing Programs
Develop and Implement Personalized Marketing Programs
Deliver Personalized Experiences
Bottom Up Model
Objectives
Strategies
Channels
Tactics
2010 Revenue $100 Million
Acquire New Customers50%
Cross Sell to Existing Customers 50%
Efficiency with Best Channels
Test New Channels
Efficiency with Best Channels
Test New Channels
Improve DM CRMSocial MediaOptimize
SearchTele Newsletter Events
Control Buster Tests
- Offer Strategy - Data Model - Creative Concepts
Online Programs
SEO ReviewFan Development
1:1 Relevancy Improvements
Data Usageemail structure
Automation
Content Delivery
Design EnhancementsCustomer Feedback
Step 3: Determine Strategic Visualization Methodology
Source: Stine Arensbach, Head of Strategic Visualizaiton, KPMG
KERN’S StrategyMaster™ Visualization
Step 4: Strategic Ideation
Session Guidelines
• Set objectives, then establish strategic territories as “placeholders”
• Generate as many tactics as possible for a given strategy without evaluation
• Conduct one-on-one sessions post large group session to hone ideas
• Conduct “consensus” sessions with larger group to review refined strategies and tactics, making adjustments as needed
TKO Action Item
OTA Action Item
APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH
1.1 Improve Targeting
Begin Prospect Database Discuss ions
Test al ternating monthly resting approach
Focus on top 20 performing li s ts until degradation
Determine frequency/resting strategy
Lis t plan customized by market Competitive li s t exchange
Move l is t selection control from franchisees to HQ
Analyze 6 month history of each li st
Analyze data, quali ty of lead source for scalabi l ity
Develop contact frequency/ resting s trategy
Confirm available universe of top 20 B2B Partners
Segment house file into 3 categories : Lead, Registered no
Show, Attend no Sale
Bui ld financial proformas for DR print
Identify all potential low-cost lead gen sources (DR Print, DRTV, Infomercial , Content excerpts in
Social Media)
Viral Marketing CampaignLook at geo footprint of B2B generated leads & radius to
locations
Secure 10% of fi le from each franchise
Expand testing ground to markets beyond Irvine
Val idate pos itive test resul ts Test DM only vs . DM & OBTM
Increase test quantity minimum to 15K per cel l
1.2 Develop Offer Strategy
Track response by segmentChange CD title to be customer
fr iendly (Secret Title)Gas Card Early-bird offer - flash drive Nominal fee for PTW
Charge for PTW w/special guest speaker
Magazine Free 3-month TrialCo-funded gift (software on flash
drive)
1 Kindle per session as door prize
One-on-one consultation on CD title
Limited time access to SRC #10 Teaser OE-LetTrader's Library Discount, Trip
Drawing, Discovery Network product, Money back guarantee,
1.2.2. Tailor Offer to Lifestyle or Transitional Key Events
CD Content related to l ife transition--Change Your Life CD
Aspirational Book
1.3 Develop High-Performance Creative Executions
Reserved exclus ive spot Presenter Profile Drive onl ine with PURLS Out of town Guest Speaker Financing AvailableForce qual ification in large
markets
Brand integrated package Survey-2 step, emai l data to EC Investor NewsletterStudent testimonials w/photos -
message related to l ife transition event
1.3.2. Test Unique "Breakthrough" Formats
Check/voucher package refresh
1.3.3. Determine Contact Strategy Determine Creative Rotation Strategy
All -Star event bui ld up
1.3.4. Develop Lead PackageCustomer needs-driven vs.
product driven message-From The Desk Of
1.4 Improve Conversion to Show
1.4.1. Develop Conversion Strategy by Segment
Segment out & get counts by tenure Emai l Contact Strategy OBTM to PTW registrants
Automated VM Reminder (reinforce offer) Pre-approval offer Mobi le text reminder
Send physical gift (CD?) prior to PTW date
1.4.2. Online Integration
1.4.3. Improve EC Conversion RatesPubl ic s tack ranking of EC
performance (close rates , show rates)
Detai led Package (educate on products , benefits
based)
1.1.3. Develop List Testing Methodology
OTA 2010-11 Direct Marketing Roadmap8/15/2010
1.3.1. Test Messaging and "Look & Feel"
Customize landing pages to match creative & offer
1.2.1. Conduct Offer Testing
1.1.1. Improve Prospect List Performance
1.1.2. Build & Optimize House File
Overall Goal:
80/BIS per month/per franchise
$250 CPB
1.1Improve
Targeting
1.5Increase Channel
Integration
2.1Identify
Production Efficiencies
2.2Identify D.P.
Savings
2.3Identify List
Data Efficiencies
1.4Improve
Conversion to Show
1.2Develop Offer
Strategy
2010 OTA Strategy Map – 12/14/09
STR
ATEG
IES
TAC
TICS
OB
JEC
TIVE
S
2.4Other
1.3Develop High-Performance
Creative Executions
1.0Lift Response by 30%
2.0Reduce Costs by 10%
1.5.11.2.1
1.2.2
2.1.1
2.1.2
1.3.1
1.3.4
1.3.2
1.3.3
1.4.1
1.4.2nline Integration
1.4.3
1.1.1
1.1.2
1.1.3
1.5.2
1.5.3
2.1.3
2.1.4
2.2.1
2.3.2
2.3.1
Prepared by The Kern Organization for Online Trading Academy
2.4.1
2.4.2
2.4.3
Step 5: Prioritize and Road Map
AAA Planning Story
Financial
Road SideAssistance
Life Insurance
Automotive Travel
Discount Program P & C Insurance
Who is the Automobile Club of Southern California?
Who is the Automobile Club of Southern California?
Largest affiliate in the AAA Federation serving 21 unique states
Conquering Planning Barriers
• Focusing on variety of channels
• Collaborating cross-functional resources
• Understanding uniqueness of markets• Goals• Culture
• Managing KPIs business wide
• Aligning strategies across senior management
What Does a Successful Strategic Partnership Look Like?
A Successful Strategic Partner Will…• Excite curiosity
• Bring passion for analytics
• Challenge the team to think bigger
• Strive to avoid insignificant test and learn efforts
• Focus on efficiency, optimization and innovation
• Help identify calculated risks with bigger wins
Implementing the Planning Process
Goal for the Strategic Engagement:
Drive up response while producing cost effective direct mail campaigns that would help grow the insurance business
Applying the 5 Steps to Strategic Success
STEP 1. Effective Leadership in place
STEP 2. Implementation Approach Established
STEP 3.Visualization Methodology
STEP 4.Ideation Session
STEP 5.Prioritization and Road Map
Staying True to DR Fundamentals
Production Efficiencies
Data-Driven Testing
• Align marketing and data teams internally
• Optimize core segments • Identify high performing clusters
• Former hand-raisers • Multiple-product users
• Seek new segment opportunities• Models for predicting buying propensity
• Determine lift in conversion and response KPI’s pretesting
• Embrace detailed and segmented production matrices
Offer-Driven Testing
• Urgency increases response
• Explore integrated digital media with traditional DM
• Keep the offers fresh and relevant
• Optmize your successes
• Honor your failures
Creative-Driven Testing
Operations and Efficiencies
Greatest Benefits Realized
Generated 43% increase in response and 31% improvement in KPI over previous year (2011 over 2012)
Greatest Benefits Realized
Intangible Benefits Going into 2014
• Improved rigor, discipline and focus • Enriched historical reference speeds tactical
considerations• Greater collaboration• Improved dashboards for quick decisions • Better forecasting and improved goal obtainment• More time for Innovation!
Insights Gained From Planning Process
• Flexibility and adaptability
• Spread testing across the road map calendar
• Be patient
• Strategic plans and road maps a living document
Two More Insights
• Focus on Innovation • Without time rarely come up with new ideas,
programs and strategies• Don’t get caught in death by 1000 tests
• Encourage Open Communication• Make it safe for sharing• Be open to improving status quo
Summary
• Strategic planning DOES move the needle– Finds new solutions– Improves existing ops, processes and programs
• Set clear objectives before you begin• Get management buy-in to process• Know your results history and competition• Embrace innovation and reduce Naysayer
noise
Discussion / Q&A
New: Free eReport from KERN
Go To:
kernagency.com\
improveresults
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Thank You! If you would like us to email you a copy of the
presentation, please leave your business card up front.
Russell [email protected]
818-703-8775
Katie [email protected]