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Breakout Session Presentation by Shai Eilon, CRM Consultant
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Shai Eilon
“ A one night stand or life long passion –creating relationships to last a life
time”
Shai Eilon
GGA - Spreading the Love
Why bother persuading
your customers to stay?
Is this really worth it?
Shouldn’t we give up on
customers who don’t come back to us?
Is it really possible to create a relationship with
customers or is it a myth?
So, Is It A One Night Stand Or Life Long Passion?
Why Driving Loyalty By Developing Long Lasting Relationship With Your Customers Is Important?
• Will keep you closer to your customers – ‘listening mode’
• Enable you to innovate and react to trends faster then your competitors
• Will become one of your biggest fixed assets
• Drive higher frequency, increase spend and reactivate sleepers –
Increase ‘Share of Wallet’
• Improve your marketing efficiency
• Will attract partners, suppliers and clients - stronger position in the
market
• Will make your brand stand out amongst the increased volume of
information and messages consumers are exposed to everyday
• Distaste with aggressive, disruptive marketing
The Role Of eCRM Within Marketing & The Key Measures
+XX%
+XX%
+XX%
+XX%
TargetBrand
PR
SEM
Customer Experience
(UI)
CRM
CRM/ Marketing
Directors
Accountable
Unique Visitors
Conversion
Repeat Purchase/
Loyalty
Efficiency
Measure
Does Size Matter?
Does The Size Of Your Organisation Matter?
No it doesn’t!
The key to success is to keep it simple and customer focused!
No matter what size of organisation you are – the same principles apply
Let’s look at the key components of how to create a successful CRM programme
Data collection
Unified Cust dbase
Data Analysis
CRM Goal & Objectives
Contact Strategy
Structured Comms plan
SMS
Direct Mail
Site
FOUNDATIONS STRATEGY IMPLEMENTATION
UNDERSTAND YOUR DATA AND KNOW HOW TO USE
Key Components Of A Successful CRM Programme
Tracking, reporting, learning & insight
Data collection
Unified Cust dbase
Data Analysis
CRM Goal & Objectives
Contact Strategy
Structured Comms plan
SMS
Direct Mail
Site
FOUNDATIONS STRATEGY IMPLEMENTATION
UNDERSTAND YOUR DATA AND KNOW HOW TO USE
Key Components Of A Successful CRM Programme
Tracking, reporting, learning & insight
The Transformation We Are All Aiming For
Traditional Customer Centric
Untargeted
All the Same
One Way
Ad-hoc
Relevant
Personalised
Dialog
Structured & consistent
RECENCY:
ACTIVE = PURCHASED IN THE LAST 12 MONTHS
DORMANT - PURCHASED 12-18 MONTHS AGO
SLEEPERS = PURCHASED 18+ MONTHS AGO
FREQUENCY:
NEW = CUSTOMERS WITH 1 PURCHASE IN THEIR LIFETIME
DEVELOPING = CUSTOMERS WITH 2 PURCHASES IN THEIR LIFETIME
LOYAL = CUSTOMERS WITH 3+ PURCHASES IN THEIR LIFETIME
RECENCY
Where To Start? Recency Frequency Value Segmentation
50%
15%
35%
ACTIVE
SLEEPERS
DORMANT
VALUE
44% of value
19% of value
37% of value
3+ = LOYAL
2 = DEVELOPING
1 = NEW
FREQUENCY
13%
16%
71%
3+ = LOYAL
2 = DEVELOPING
1 = NEW
How To Use The Segmentation To Develop Relationship And
Drive Loyalty
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
Active
Customer
Base
New(1 Purchase)
Developing(2 purchases)
Loyal(3+ purchases)
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
Active
Customer
Base
New
Developing
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
- Not enough information- Include wide range of
offers- Strong & attractive
offers to convert them
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant
Sleepers Developing
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
New(1 Purchase)
Repeat Purchase & Segmentation Model
Subscribers
Only
Site Visitors
Convert subscribers onlyto become customers
Dormant
Sleepers Developing
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
New- Specific to their
purchase- Send immediately after- Welcoming tone
Repeat Purchase & Segmentation Model
Subscribers
Only
Site Visitors
Convert subscribers onlyto become customers
Dormant
Sleepers Developing
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
New(1 Purchase)
1 purchase
- Brand value: how are you different to other competitors?
- Atmosphere & community sense
- Soft message to establish awareness
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant
Sleepers
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
Developing(2 purchases)
- Well done: you converted them to a 2nd
purchase- Be more direct and try
xsell other items- Use information you
now have about them to improve relevancy
Developing
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant
Sleepers
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
Loyal(3+ purchases)
3+ purchases
- Now they are more engaged with your brand/company
- Can be more bold with the messages
- Just need to trigger them to come back
- Offer some benefits to retain them.
- Involve them more and give them a sense of ownership
Loyal
Developing
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
- Oh dear, you nearly lost them
- Not too late: try to win them back.
- Be gentle they may have a good reason
- Try to find out why they became inactive
- Return to generic messages and offers –maybe you got it wrong
Loyal
Developing
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
- Is it the end of the relationship?
- Try again, be a bit more direct
- Remind them what’s good about your company, services and offers.
Loyal
Developing
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
- Last resort: try to incentivise to bring them back.
- This will be more expensive but still cheaper than acquiring a new customer.
Get Started With CRM -- Practical Notes
1. Review current set up:� Technology -- Data collection, Database, Analysis and insight to understand customers� Human Resource -- Who in your organisation is the owner of CRM� Business buy-in� Legal compliance
2. Strategy and programme structure:� What are your core business goals and objectives?� What should your CRM goal and objective be to support you core business objectives?� Define the key measures for your CRM area and agree a realistic target� Segment your customer base specifically to the nature of your business -- RFV, products, artists,
genres etc.� Create a 'Contact Strategy' for your customer segments to achieve your goal, objectives and
targets� Now prepare a detailed 'Communication Plan' ideally for the next 12 months.
3. Prepare for execution:� Identify the communication channels and best tools to deliver those communications -- Email,
SMS, DM etc.� Design templates, define tonality, copy write, legal disclaimers etc.� Test your processes and systems internally before launching.
4. Implement your plan:� Start executing your campaigns� Get Smarter with each interaction: track, analyse, review and modify to optimise your activities.
CRM is an evolving journey just like any other relationship
Questions?
Please do not hesitate to contact me with any questions you may have
following today’s presentation:
M: +44 (0) 7977 511398