lovesac crm vision 062015
TRANSCRIPT
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CONTENTS
• What CRM is and is not• Goals of CRM• CRM Lifecycle• CRM Trends• Strategic Priorities• First Next Steps
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Customer Relationship Management…
• It affects the customer’s experience (CEM).• It’s a strategy, not a project or a quick win.• It’s more about people, process and cultural change than it is
about technology.
The payback can be substantial if used strategically and as an integrated part of the business function(s).
What it is and is not:
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Goals of CRM
• To improve the quality and satisfaction of each interaction• To move customers from a transactional interaction to an
emotional relationship.• To maximize the profitability of those relationships.• To have an accessible 360-degree view of buyers, prospects
and customers.
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CRM Lifecycle
Welcome Back
Lapsed Program
Purchase Experience
Welcome Program
Retention Program
Satisfaction Survey
Cross Sell/ Up Sell
Event Invitation
Surprise & Delight
Loyalty Offers
We Miss You
Reactivation Program
Re-enticement
CUSTOMER LIFETIME
CUST
OM
ER V
ALU
E
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CRM Trends
1. Content• Marketers are creating shareable content and microsites to highlight
products and promotions but also deliver targeted messages around relevant topics –e.g. information at the prospects stage and offers and engagement at later stages.
• Some brands are finding that content can be four times more effective than a traditional marketing campaign – often in niches that have little direct relation to the products they sell.– Nike– Louis Vuitton - art– Burberry - music
CRMtrends.com
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CRM Trends
2. Social Media Optimization• The effectiveness of social media marketing is supporting the creation of
more shareable moments (Facebook becomes a more meaningful marketing platform).
• Optimization includes:– Segmenting customers by social role, e.g. influencers– Using social activities to support SEO– Contributing to a 360o view of the customer
CRMtrends.com
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CRM Trends
3. Customer Experience• Consumers today have more choices than ever and are more frugal with
their time and more discerning in their choices. This affords them the luxury of demanding more.
• CRM is now charged with:– Offering a holistic experience across all brand touch points. – The online experience consistent with in-person off line. – Infrastructure that allows for knowledge sharing and “smart”
communications.– Creating a sense of discovery, inspiration and entertainment
(emotional connection) – in stores and online.
CRMtrends.com
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CRM Trends
4. Personalization and Customization• Companies are seeking to know more about their customers and use that
insight to talk, engage and interact with them more often and more meaningfully by:– Learning customer habits– Acting on customer behaviors– Offering more proactive services (e.g. design consultation)– Offering intelligent choices based on ones already made
CRMtrends.com
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CRM Trends
5. Omnibrand as well as Omnichannel
• It takes an indivisible organization to implement a truly optimal customer-centric strategy – one consistent brand “voice”.
• It’s about finding that group of people that love your brand and figuring out how to truly engage them at all touch points.
• It’s about finding new sets of customers and finding a strong value proposition that will engage and retain them.
• It’s about thinking, early enough, about the organizational structure, the competency of teams and the incentive systems of teams.
DM News 8/12/14
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Strategic Priorities
1. Clear Vision and Objectives• What is the ultimate vision and mission for the brand’s relationship with
customers and prospects?• What are the key, measureable objectives of the program? • What is the cultural readiness of the organization to adopt a holistic
customer-centric approach to business?• What does world class CRM look like across the organization?
2. Cross-Organizational CRM Leadership• Include each functional group in leading the implementation of the strategy. • Consider people, processes and technology as all will be affected. • The leadership team needs to clearly define their CRM strategy in terms every
Asssociate can understand.3
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Strategic Priorities3. Data Strategy • Collect Data – from each customer interaction so that we can identify behaviors, attitudes,
needs, propensities, intentions, etc.• Implement segmentation, overlay and append plan.• What data do we have?• What data do we need?• Define and map data requirements.
4. Analytics• Identify who our customers are across multiple touch points and behaviors –
channels, product categories, seasonality, etc.• Understand interaction between channels in impacting customer behavior.• Differentiate customer segments – RFM, demographic, psychographic, lifestyle,
attitudinal, etc., including life stages.• Prioritize. What is the customer worth? What is their potential worth (LTV)?• Use predictive analytics to understand what, when and where to communicate and
influence future customer/prospect behavior.
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Strategic Priorities5. Experience/Communications Planning• Map out the journeys of customers interacting across the organization to
understand where and in what way our business touches or interacts with the customer. At every one of these touch points identify:– A piece(s) of data– Opportunity to impact– Gaps
• Define customer experience goals. Articulate the customer experience – current state and future state.
• Through customer/prospect research, determine the needs of customers throughout their purchase journey and after as a customer.
• Agree on desired customer behaviors. – consensus on what the customer experience will be…from the customer’s perspective.
• What communications can we deliver that helps the customer make decisions and take the actions that give them the best experience and better outcome?
• Monitor the customer experience. Put ourselves in their shoes.
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Strategic Priorities
6. Channel Strategy• What channels are most effective for acquisition vs engagement vs
advocacy vs conversion (purchase)?• What messaging will lead where and what do we want the customer
to do there?• How does CRM integrate with other activities in the channel(s)?
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Strategic Priorities7. Content Strategy• An integrated customer content strategy and process is the heart of CRM.• How much and what type of content is needed to feed the program?• What content needs to be planned vs reactive?• Determine topical themes, forms, channels, tone and cadence of the
relationship with contacts. • Identify the process for creating the content (internal/external), how it’s
created (production, design, approvals) and when it will be published (editorial calendar).
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Strategic Priorities8. Technology• Configuration and implementation that delivers against the strategy.• Determine the stages of relationship with prospects/customers,
map out the moments for contact interaction, and identity the necessary workflows required by employees to make it happen.
• Standardize and integrate for a seamless flow of data and integrated analytics.
• Automate processes. Utilize software to support the unique CRM strategy of the organization.
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Strategic Priorities9. Metrics/Measurements
• Develop KPIs to measure whether the CRM program is a success. • Clear measures that show everyone the value of adopting and
applying the strategic initiatives. • An implementation plan, including a feedback loop that allows
everyone to highlight wins and challenges.• Celebration of excellence when it is achieved – how do we know we
are at a point of excellence?
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Strategic Priorities10. Continuous Improvement• Dialogue with customers. Learn (and store) customers’ personal needs and
profiles. Target service to each individual to make them feel important and show we value the relationship.
• Empower Associates with the ability to make timely decisions and please the customer (within reason).
• Test, test, test – Troubleshoot on a small scale, focus on ROI, experiment with marketing messages, channels, etc.
• Train, train, train –Investing in one-to-one or group training as well as continued support will help to establish adoption and unlock the value of the program among Associates:– A communication plan for sharing the actionable items within the
strategy. – Progress charts that show what has been implemented and where.– An education program for the entire organization, including 3rd parties
who may have involvement in the interactions with customers.
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First Next Steps
• Action immediate priorities – e.g. customer information capture in Netsuite – next 2 weeks.
• Define and document current state and future state systems, data flows, work flows (including what’s working and what needs work (prioritize) – next 30 days.
• Look for and action “low hanging fruit” – group effort asap.• Research and document customer journeys – next 60 days.