customer relationship management why bother? (slideshare)
TRANSCRIPT
Katy Raines
CRM – Why bother?
Christiansand, January 2012
CRM – Why bother?
A reminder of CRM
The changing marketing environment
What CRM Can deliver
Building a picture of the customer
A Good CRM system
A reminder of CRM
1. Not all customers are equally valuable
2. It costs 5 times more to acquire a customer than keep an existing one
3. Customers have different needs, which need to be reflected in your marketing communications with them
Frequency1. All customers are not equally valuable
2%
4%
26%
68%
8+ times per year
5-7 times per year
2-4 times per year
Onceper year
60%
25%
15%
% of bookers in 1 year
% o
f inco
me in
1
year
Retention2. Keeping customers costs 5x less
Lost / lapsed customers
Retained customers
New audiences
Segmentation 3. Customers have different needs
2%
4%
26%
68%
These people have different needs
From these people
% of bookers by frequency band
Ulster Orchestra, Belfast
‘Old’ model Were sending all their customer the same thing –
a large 32-page season brochure, costing £1 per issue
Return on investment 1.6:1
‘New model’ Sent different customers different things For 90% of the customers this meant sending
them LESS information, but more RELEVANT Return on Investment increased to 21:1
The changing marketing environmentDigital explosion = Consumers bombarded with content
Growth of tools and sites to ‘aggregate’ and make sense of content for consumers to digest
Expectation of content matched to need and preference
NB. This is no longer a ‘nice to have’ – it’s essential!
email content - relevant
Tailored to match my previous purchasesGeneral
message to everyone
Web content - relevant
And what about Social Media?
CRM / Direct Marketing
Organisation
Customer
Organisation
Customer
Sends direct messages
Broadcasts messages
Social Media
‘tunes in’ at various points
They are different tools for different purposes
The results
Opportunity – to build loyalty and affinity by reflecting their needs back to them with relevant (and personalised) content
Threat – customers will ignore your content as it isn’t relevant, and you will lose them
What a good CRM programme can deliverIncreased frequency from existing customers
Keeping more customers year on year
Reduced marketing costs and improved return on investment
Brand affinity and loyalty
Improved customer insight to aid business planning and programme/product development
Building a picture of the customer
The Customer
Purchasing behaviourFrequencyRecencyTypes of product Response to
commsPurchase
ClicksTimingType
Attitudes and preferences
Stated comms preferencesStated product preferences
Feedback / comments
ProfileGeography
Demographics – age, income
etc.
Social media behaviourRe-tweets
Likes
Customised communications
Picture of the
customer
Product choices
Timing of comms
Type of comms
Symphony Hall Birmingham
The Customer
600 events per year
Mostly ‘one night’ shows
2200 seats
over ½ million audiences each year
Symphony Hall Birmingham – challenges
The Customer
Too much ‘choice’ and information for the customer to make sense of
Wide range of events
Events changing daily – often going on sale at late notice
Customers are annoyed if things sell out before they’ve heard about them
Building a picture of the customer
The Customer
Purchasing behaviour
Contact details gathered /
checked with each purchase Response to
commsRecord
response to direct mail
Record ‘click’ response to
Attitudes and preferences
Data sign-up process gathers preferred
communication methodLater emails encourage
customers to tell us product preferences (eg.
classical)
ProfileGeo-demographic
information ‘appended’ to record to show likely age,
income etc.
Different communications
Picture of the
customer
Classical Music audiences
- Season confirmed 1 year ahead- Like to see ‘full programme’ to make
selections- Like printed brochures rather than digital
- ‘Classical music’ brochure sent by post 3 times per year
- Personalised booking form and incentives to subscribe early
- Email used as a reminder (but sparing)
Different communications
Picture of the
customer
Rock and Pop audiences
- Events getting confirmed all the time- Big names can sell out in a day- They don’t want to miss the chance to book- Are used to 100% digital communications
from competitors
- Weekly ‘On sale’ announcements, and ‘don’t miss this month’
- Reducing / minimal printed communications
Personalised e-bulletins
Picture of the
customerEvents ‘match’ customer profile based on:- Previous product
purchase- Stated product
preferences- Clicks on previous emails
Other events listed here
MARKETING EFFECTIVENESS
2008-09 2009-210 2010-1111.00
11.50
12.00
12.50
13.00
13.50
14.00
Marketing ROI (all tix)
2008-09 2009-2010
2010-11£1.15
£1.20
£1.25
£1.30
£1.35
£1.40
Spend per seat sold (all tix)
What do you need from a CRM system? (5 steps)
Initial and ongoing data capture linked to purchasing behaviour
Sensible segmentation and data analysis: Frequency/Recency Value Product type
ToolsTo implement personalised approachTo measure effect
The CRM process
1. Gather data
2. Analyse and segment
3. Implement- Product proposition- Communications
methods
4. Measure
Test
ing a
nd
refinin
g
The picture gets more detailed
The Customer
Purchasing behaviourFrequencyRecencyTypes of artform / product
Response to commsPurchase
ClicksTimingType
Attitudes and preferences
Stated comms preferencesStated Artform / product
preferencesFeedback / comments
ProfileDemographics –
age, income etc.
The messages get more effective
Picture of the
customer
Product choices
Timing of comms
Type of comms
Good luck!
Katy Raines
Partner, Indigo-Ltd
www.indigo-ltd.com
twitter: @katyraines