Everything you need to know about eCRM Everything You Need To Know About eCRM.
Post on 16-Jan-2016
Everything You Need To Know About eCRM
What is CRM?ConsumerRelationshipMarketingeCRM takes this online
The benefits?Highly targetedCost effective
The eCRM processThere are 4 key steps:
Find your fansCollect their informationBuild a relationship with themCommercialise this relationship
The power of permissionThe principle of permission is the key strength of eCRMThe consumer gives us their permission to communicate directly with themThis means consumers are far more likely to engage and respond to a call to action than with traditional advertisingWithout their permission, its effectiveness is dramatically reduced
The benefits of signing upWhy would a consumer give their permission for us to contact them? We need to provide a service:
Exclusive content and competitionsGig pre-salesRegular news bulletinsProximity - direct contact with artistsPriority - they will always be the first to know
To reap the rewards of a direct relationship with our fans, there must be benefits for them
R.E.S.P.E.C.TAs with any relationship, we need to treat our consumers with respect.
If the consumer knows they are valued, they will be more likely to buy our products.
Consumer careInvest time and effort building a relationship between your artist and their fansSend them regular communicationsKeep the promises made at the point of registration (Proximity, priority etc)Talk to them even if you have nothing to sellDo not send them irrelevant informationAsk them what they want and react to their answers, make your campaigns interactive Personalise communications where possibleThank them for playing their part
The difference between eCRM60%+ open rates50%+ click ratesTypical 26% retail click rateSaint Etienne have used direct email communication to build a strong relationship with their fansRecipients of their email newsletter have actively requested information about the band by joining their mailing listCommunication is maintained outside of album cyclesThe band write their own copy and regularly generate interesting content for their fansTheir efforts are rewarded by very healthy response rates and a commercially valuable mailing list
and email AdvertisingGenerally Gabriellas emails have very good open rates ~ 40%This email was no different, but the click rate was only 6%Gabriella fans are eager for information, but they have no real relationship with FrankmusikThis significantly reduces the effectiveness of the emailThe content makes little effort to capitalise on the opportunity to introduce Frank to a new audienceInstead it jumps straight in with a prompt to buy his new singleThe low click rate shows that this approach was not a success
What could be improved?Build a relationship between the Gabriella Cilmi fans and Frankmusik before you push for salesUse Gabriella to introduce his music to her fans. What Im listening to / Spotify playlistCan Frankmusik cover a Gabriella Cilmi track?Drive interested consumers to sign up to the Frankmusik databaseThe quantity of consumers that receive an email is irrelevant if the message is wrongThe focus should always be on sending high quality communications to well selected data
Knowledge in numbersConsider the demographics of your target audience whenever you are introducing a new artistThe Gabriella Cilmi database is 70% male and the most popular age group is 41-45The Frankmusik database has an even gender split and the most popular age group is 17-20Were there more suitable databases to target?Could we have tried introducing Frankmusik to several artist databases and only pursuing those we get the best reaction from?
Music fans Vs. Artist fansWeve got the contact details of 1000s of music fans Why build databases for specific artists when we can already communicate with so many fans of similar genre?
Soulsavers - direct campaign comparisonTwo emails were sent to promote the new Soulsavers albumThe first was sent to 323 Soulsavers fansThis had an open rate of 52.32% and 55 total clickthroughs to buy; a very high retail click rate of 33%The second was sent to the V2 Music Newsletter database of 34719 consumers. This had an open rate of only 8.49% and 38 total clickthroughs to buy a retail click rate of 1.3%
Soulsavers - direct campaign comparisonThat the newsletter sent to nearly 35k V2 Music fans generated less actual clicks to retail than the email sent to 323 actual Soulsavers fans demonstrates the importance of building a dedicated database for each artistThese results are typical of the poor consumer response to information about artists they have not actively requested
Data collectionConsumer data collected online or offline is stored in our eCRM system Vice VersaWe need continuous organised data collection activities for all our artistsThis includes basic data capture activities as well as more complicated campaignsConsider what will appeal to each specific fanbase when thinking about sign-up incentives
Individual email reportCheck the individual email report (under the Reports menu) in Vice Versa to monitor the success of your email campaigns.Identify weak areas (clickthroughs / open rates) and aim to improve them in future activities.
eCRM - who does it well?Why?They collect a massive amount of data about users of Amazon.comIt enables them to match customers with products on an individual basis and target their eCRM campaigns accordinglyThis approach generates very high response rates
Why can we do it better?Each of our artists is a brand - like AmazonAmazon have invested time and resource into developing their brandThis creates loyal and passionate consumersOur fans are equally passionate about our artistsNobody (not even Amazon) can match the level of artist access and information we can give our fansThis is our trump card. It separates us from the competition and we need to play it wherever possibleThis is especially important for artists with an ecommerce strategy
eCRM campaign timelineBelow is a generalised timeline of the initial stages of an eCRM campaign. This process should transform unfamiliar fans into willing consumers, but remember that you need to find and register potential consumers and develop an ongoing dialogue with them before you can begin successfully commercialising the relationship.
Any email@example.com 7471 5438
Instead of interrupting consumers with an advertisement, we find the target audience of an artist and build a mutually beneficial relationship with them over time through email and SMS communication.Purchase opportunities are woven into these communications.Long term approach to marketing - contrast with interruption marketing where the consumer must respond immediately.eCRM gives us ongoing opportunities to convince consumers to buy our product and encourages fan loyalty.Targeting is second to none - speak directly to fans of your artists.Carve out specific demographics (age, gender, location etc).Consumers can respond instantly to a call to action.Accurate tracking / reporting.
Cost effective - especially compared with traditional advertising.In house system means no per-email cost.Build reusable email templates to reduce costs further.
Simple steps but harder than they look.Where are the fans of your artist likely to be found? This will vary from artist to artist.When building a relationship with the consumer you need to ask yourself two questions - What do they want from the relationship? Can you supply it?Use reporting in Vice Versa (our eCRM system) to identify what your consumers want Then give it to them.
All four steps are vital to a successful eCRM campaign.
An eCRM plot needs to tailored to each artist there is no one size solution.By contrast, an absence of permission:Yields a poor consumer response to campaigns.Harms our relationship with our consumers, which is detrimental to future campaigns.Other non-profit services which benefit retailers:Amazon product reviews / ratings.Apple product experts.
Equally, eCRM is not a hippy philosophy.Its aim like traditional advertising is to make money.The principles of permission and respect for consumers make business sense If you adhere to them, you will make more money form your eCRM campaigns.It is a myth that eCRM is low effort marketing... Time and budget must be invested to get the most from a campaign.The suitability of these suggestions will vary from artist to artist.May not be possible for all artists all of the time.Interactivity and artist participation are key.Two examples to show an important distinctionIts the right idea we have a link between Frank & Gabriella. We want to make take advantage of this.But eCRM gives us the opportunity to do much more than just advertise to our fans.Were missing a significant opportunity to create fans and earn money if we limit ourselves to these kind of communicationsVice Versa has a comprehensive suite of reports with information about our fans and their habits.Make best use of these to maximise the effectiveness of your campaigns, especially when cross promoting new artists to fans of other acts.Imagine if theyd put some time into collecting more SoulSavers fansFlorence 60155 fans on facebook VS 17185 on database
Also have to account for:
Data age (People changing email addresses etc)Non-fans signing upChanging tastes of fanbaseChanging style of artists
Look at whats working for your artist What pushes your consumers buttons?Tailor your campaigns accordingly.This is the most important slide in this presentation.Our fans are passionate about music we need to use this to our advantage.