marketing in recession
DESCRIPTION
Here are six specific strategies to attract, retain, and grow a profitable customer base even in a recession.TRANSCRIPT
Marketing Through the Recession: 6 Strategies to Acquire, Retain and Grow Profitable Customers
Sallie BurnettPresident Customer Insight Group, [email protected]
December 7, 2010
AcquisitionLoyaltyMigrationReferralRetention UpgradeWin-back
Data miningMarket researchModelingProfilingResponse analysisSegmentation
Creative design and copyDigital marketingE-mail designFulfillmentInkjet imagingLaser printingLettershopPrintingPrint on demandProgram managementWebsite design and content
InsightInsight StrategyStrategy ExecutionExecution
Customer Insight Group, Inc.
Copyright 2010 Customer Insight Group, Inc.
Agenda
How are Companies Responding to the Recession
Six Tips and Strategies
Question and Answer
Copyright 2010 Customer Insight Group, Inc.
How are Companies Responding to the Recession?
» Cutting marketing and communications budgets while expectations increase.
» CFO’s are increasing demands for reporting, accountability and measurable results.
» Shifting spend from branding and other forms of push marketing to measurable and relationship-based strategies such as search marketing, email marketing, lead nurturing, loyalty marketing and online communities.
Copyright 2010 Customer Insight Group, Inc.
How are Companies Responding to the Recession?
“If you’re in a room full of twenty people,
and they’re all talking, all you hear is noise.
But if 19 stop talking, suddenly the
one person who’s still talking
can be heard the loudest”
Copyright 2010 Customer Insight Group, Inc.
Firms maintaining marketing budgets during recession significantly outperform their rivals in the following years.
27%
131%
30%
256%
0% 100% 200% 300%
1974/75 US
Recession
1981/82 US
Recession
Sales advantage over 2 years Sales advantage over 4 years
Source; McGraw Hill Study
How are Companies Responding to the Recession?
Copyright 2010 Customer Insight Group, Inc.
Source; Tony Hillier analysis of Profit Impact Marketing Study (PIMS) data 2001
10
98
0
2
4
6
8
10
Profitabilty During Recession
Cut Marketing Maintained Marketing Increased Marketing
How are Companies Responding to the Recession?
Cutting advertising in the short term doesn’t boost profits by much.
Copyright 2010 Customer Insight Group, Inc.
How are Companies Responding to the Recession?
0.6
0.9
1.7
0
0.5
1
1.5
2
Increase In Market Share During Recovery
Cut Marketing Maintained Marketing Increased Marketing
-0.8
0.6
4.3
-1
0
1
2
3
4
5
Profitability Increase During Recovery
Cut Marketing Maintained Marketing Increased Marketing
During the recession recovery phase, companies that increase marketing yield long-term dividend in terms of profitability and market share.
Source; Tony Hillier analysis of Profit Impact Marketing
Study (PIMS) data 2001
Copyright 2010 Customer Insight Group, Inc.
#1 Leverage Customer Insight to Create Competitive Advantage
Six Tips and Strategies
What is Customer Insight?
How do you know you have it?• Not something that is obvious or immediately apparent
• Can be based on one data point or many
• Grounded in customer understanding often rooted in observed anomalies
• Clear or deep perception of the customer that you can act on to achieve business
objectives
• Not just the voice of the customer, instead using customer creatively for innovation
Copyright 2010 Customer Insight Group, Inc.
Six Tips and Strategies
#1 Leverage Customer Insight to Create Competitive Advantage
Who is the customer?
+What are the preferred channels of communication?
+How often do they want to hear from you?
+How can you meet more of their needs?
+What stage is the relationship?
Deliver Value in Every Interaction
Copyright 2010 Customer Insight Group, Inc.
#2 Take Programs Off Auto Pilot
Six Tips and Strategies
Take a fresh look at your loyalty, new customer, retention, win-back, new mover, trigger programs, etc.– For each program look at the KPI of success– Determine if the programs are achieving business objectives– Identify changes that can be made to improve results– Prioritize based on costs, ease of execution, and expected
bottom line impact
Copyright 2010 Customer Insight Group, Inc.
#3 Track & Manage Customer Value Migration
Six Tips and Strategies
Next 12 Month SpendMigration Best Deceile 2 Decile 3 Decile 4
Best 20% 5% 1.4% 0.2%Decile 2 5% 11% 4% 8%Decile 3 2.3% 6% 7% 12%Decile 4 1.6% 3% 13% 9%La
st
12
M
on
th
Sp
en
d
Significant Growth Opportunity.
Losing Share of Wallet
Stable, Room for ImprovementContinue Focus on Retention
Copyright 2010 Customer Insight Group, Inc.
#4 Proactively Manage Customer Life-cycle With Brand
Six Tips and Strategies
Value to the Customer
Val
ue
to t
he
Org
aniz
atio
n
Unqualified Customer
Unqualified Customer
Prospective Customer
Prospective Customer
AdvocateAdvocate
CustomerCustomer
Repeat CustomerRepeat
Customer
Copyright 2010 Customer Insight Group, Inc.
#4 Proactively Manage Customer Life-cycle With Brand
Six Tips and Strategies
Copyright 2010 Customer Insight Group, Inc.
#4 Proactively Manage Customer Life-cycle With Brand
Six Tips and Strategies
Encourage immediate search…
Offer anincentive topurchase…
Copyright 2010 Customer Insight Group, Inc.
#4 Proactively Manage Customer Life-cycle With Brand
Six Tips and Strategies
Come back today!
Benefits galore!
Copyright 2010 Customer Insight Group, Inc.
#4 Proactively Manage Customer Life-cycle With Brand
Six Tips and Strategies
Copyright 2010 Customer Insight Group, Inc.
#5 Listen and Respond to Customer’s Needs
Six Tips and Strategies
59% Most marketing and advertising has very little relevance to me.Source: Yankelovich Consumer Trust Study
14%
Say companies use their personal information to send them advertisements that are relevant to their wants and needs.
Copyright 2010 Customer Insight Group, Inc.
#5 Listen and Respond to Customer’s Needs
Six Tips and Strategies
59.0%
33.0%
29.0%
20.0%
16.0%
15.0%
Provide special offers based on my priorpurchases
If I have not been on a site in a while send me areiminder with an incentive to return
Make recommendaitons on prior purchases
None of the above
Limit content to the product categories where Ihave shown an inerest
Greet me by name
Source: Double-Click Consumer Loyalty Survey 2Q 2007 Copyright 2010 Customer Insight Group, Inc.
#5 Listen and Respond to Customer’s Needs
Six Tips and Strategies
Relevant email campaigns drive 9 times more revenue and deliver 18 times more net profit than broadcast emailing.
QuickTime™ and a
decompressorare needed to see this picture.
Copyright 2010 Customer Insight Group, Inc.
#5 Listen and Respond to Customer’s Needs
Six Tips and Strategies
Source: Double-Click Consumer Loyalty Survey 2Q 2007
The NFL database is comprised of 75 different variables including demographics, the NFL Shop, the NFL Extra Credit Card; travel and hotels. Customers’ favorite teams are tagged and information is broken out starting with team affinity then subsequently based on purchase behavior.
Copyright 2010 Customer Insight Group, Inc.
#6 Double Down on Best Customers
Six Tips and Strategies
Starbucks– The company's shares dived 42% last year on signs that
consumers were falling out of love with Starbucks. – Customer Insights lead the way in the solution:
A complete reinvention of brewed coffee in-store, that will be brought to life by baristas across the U.S., who will scoop and grind a new unique coffee blend, connecting customers to the early days of Starbucks;The first phase of a Starbucks Card Rewards program, rewarding registered cardholders and providing unique new benefits when using their cards in Starbucks stores;The launch of MyStarbucksIdea.com, Starbucks first online community, that takes the Starbucks Experience outside the store and enables customers to play a role in shaping the company’s future.
Copyright 2010 Customer Insight Group, Inc.
Six Tips and Strategies
1. Leverage Customer Insight to Create Competitive Advantage
2. Take Programs Off Auto Pilot
3. Track & Manage Customer Value Migration
4. Proactively Manage Customer Life-cycle With Brand
5. Listen and Respond to Customer’s Needs
6. Double Down on Best Customers
Copyright 2010 Customer Insight Group, Inc.
Sallie Burnett, President, Customer Insight Group, Inc.
ph: 303.422.9758
www.customerinsightgroup.com
Join the conversation at on our two blogs:
http://www.customerinsightgroup.com/marketinglibrary/
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