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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

Red CrossCustomer Analysis

Final ReportDecember 2002

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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

AGENDA

Project Goals 3 Methodology 4 Survey Information and Response Rates 5 Awareness 7 Consumer Resources 10 Budget/Decision Maker 11 Organization Value Drivers 12 Summary of Findings 14 Recommendations 15 Next Steps 16 Appendix 17

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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

Project Goals

Identify companies or organizations that may be potential customers

Determine what makes an organization likely to purchase goods/services from the Red Cross

Pinpoint the factors that organizations use to evaluate partner relationships

Provide recommendations to improve sales in the Health and Safety Services division

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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

Methodology

Conducted Telephone Surveys for in-depth data gathering and higher response rates Coordinated with UMBS professors to ensure a valid random sample was achieved Utilized Red Cross database of customers and prospects

Segmented Customers Non-Customer (Cold Calls) Red Cross Customer (Non-AED) AED Customer

Determine Industries to be included in the surveys Healthcare Manufacturing Service Government Schools

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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

Survey Factors

Organization Demographics Industry Type of organization Size

Important values to companies when purchasing health and safety products

Decision-maker for purchase of health and safety product

Current Awareness of Red Cross products and services

Annual Budget

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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

Survey Response Rates

Responses were from a wide variety of industries

Non-Customer Red Cross Customer AED Customer

29 Responses

~ 10-15% Response Rate

32 Responses

~ 10-15% Response Rate

15 Responses

~ 50% Response Rate

Service41%

School13%Mfg.

13%

Retail13%

Govt.20%

Other7%Govt.

4%

Retail26%

Mfg.7% School

11%

Service45%

Govt.7%

Serv.34%

Other14%

Mfg.14%

School31%

Approximately 400 total calls were made over a 3 week period in November

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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

Awareness : Non-Customers

•Extremely High awareness of the Red Cross and its mission to train individuals in First Aid/CPR•Medium awareness of AEDs•Low awareness that the Red Cross places AEDs•Extremely low market placement of AEDs

Percent Awareness

38%

90%

7%

59%

7%

31%

3%

0%

20%

40%

60%

80%

100%

PurchaseCPR & 1st

Aid

Aware RedCross Offers

CPR & 1stAid

Aware ofother

Companiesthat Offer

CPR

Aware ofAEDs

Purachasedan AED

Aware RedCross Sells

AEDs

Aware ofother

Companiesthat SellAEDS

Category

Pe

rce

nt

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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

Awareness : Red Cross Customers

•High awareness of the Red Cross and its mission to train individuals in First Aid/CPR•High awareness of AEDs•Medium awareness that the Red Cross places AEDs•Extremely low market placement of AEDs

Percent Awareness

81%

100%

13%

88%

7%

57%

7%

0%

20%

40%

60%

80%

100%

Purchase CPR &1st Aid

Aw are RedCross OffersCPR & 1st Aid

Aw are of otherCompanies that

Offer CPR

Aw are of AEDs Purachased anAED

Aw are RedCross Sells

AEDs

Aw are of otherCompanies that

Sell AEDS

Categories

Pe

rce

nt

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Awareness : AED Customers

•Nearly 75% of all purchasers of AEDs from the Red Cross became aware of AEDs through other Red Cross sponsored events or people trained by the Red Cross.

Advised by Inf luencer

20%

Other 27%

Upsold f rom CPR/1st Aid

Courses 53%

AED Awareness Generation

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Consumer Resources

Contact the Red Cross

Influencer (EMT, Nurse, Friend or Relative with previous training)

Internet

Yellow Pages

Potential Customers will use a variety of channels to research health and safety purchases

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Budget and Decision Makers

•Small companies: Possible to communicate directly with the decision-maker.

•Large companies: Necessary to navigate several levels of bureaucracy, often having to communicate with the corporate office in order to sell goods/services locally.

Fewer than 200 employees Greater than 200 employees

Decision-maker •President•Owner•Influencer

•Committee•Human Resources•Specialist (Risk Mgr.)•Corporate Office

Annual Budget 88% less than $5K 77% less than $5K

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Value Drivers

Consistently the most important factors named were the previous relationship an organization had with the Red Cross and a recommendation from a colleague, friend or relative.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

Price Relationship Recommendation Adtl Services AdditionalProducts

ProfessionalSales Process

AED

Generic Customers

Cold Call

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Sample comments from selected surveys

‘We continue to do business with the Red Cross because they always provide quality training and we support the goals of their organization’

‘We get recertified every year, and we never even think of getting training from another organization’

‘Whenever we need any type of safety training, the first organization I think of is always the Red Cross’

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Summary of Findings

The Red Cross’ brand recognition is extremely high. The majority of people are aware that the Red Cross offers First Aid/CPR training

Approximately 80% of survey respondents indicated that the Red Cross is the first and only organization they contact for First Aid/CPR training

Those who continue to purchase goods/services from the Red Cross do so because of their positive relationship with the Red Cross in the past

New customers purchase goods/services from the Red Cross because of general awareness of the products offered or based on the recommendation of an “influencer”

Consumers value the support that a Red Cross contact provides them, but they prefer not to be directly solicited

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C O M M U N IT Y C O N S U L T IN G C L U BC O M M U N IT Y C O N S U L T IN G C L U B

Recommendations

Continue to cross-market products at Red Cross training classes and events

Educate the influencers – build a pyramid of involvement with the Red Cross

Manage customer relationships to induce repeat purchases Focus effort on retaining and mining current customers Ensure potential customers have ready access to information about

Red Cross products Concentrate marketing efforts on partnering with local civic,

religious, and employment organizations Use Border’s as a case study in the proper way to approach large

companies to sell goods/services Continue to sell to U of M / EMU

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Next Steps and Additional Projects

Revisit marketing contact strategy Update database and actively contact companies to maintain a working

relationship Evaluate the current web positioning strategy

Identify influencers and organizations with which to partner

Initiate a study to increase retention ratios

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Appendix