Successful Customer Communications Strategies in

8 Steps and 2 Case Studies

David Azulay – Kern Dan Ferguson – DIRECTV Michelle Degen– Clear

Introducing Our Panelists

David Azulay SVP, Client Services

KERN

Dan Ferguson Senior Director of Marketing

DIRECTV

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Michelle Degen Marketing Manager

Clearwire

This may seem simple, but you need to give customers what they want, not what you think they want. And, if you do this, people will keep coming back. -John Ilhan, Entrepreneur and Founder of Crazy John's Mobile Phone (Australia)

Bain & Company. "Cost-Cutting Ideas for Now That Won't Impair Clients Later." Tennessee Society of CPAs. Accounting Office Management & Administration Report, June 2009.

“ “ Companies that focus on building loyal relationships are better positioned to remain strong. - Bain & Company

“ “

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Consider the cost of serving a long- standing customer versus the cost of courting a new one…

5% increase in customer retention produces more than a 25% increase in profit

Bain & Company. "Cost-Cutting Ideas for Now That Won't Impair Clients Later." Tennessee Society of CPAs. Accounting Office Management & Administration Report, June 2009.

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Today’s Agenda

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• Introductions • Importance of a Customer Communications Strategy • Getting Started – 8 Key Steps • Cases

− DIRECTV − CLEAR

• Panel Discussion / Q&A

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We are multi-channel CRM and Acquisition agency providing strategic, creative and analytical leadership for data-driven direct programs to

maximize marketing ROI, ASAP. Our logo symbolizes the intersection of all of the services and solutions that we offer.

The Importance of a Customer Communications Strategy

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- It is just as important to have a retention strategy in place as an acquisition strategy. - It costs more to acquire a new customer than it does to keep a current customer. - Most customers want to be appreciated and thanked along the way for their business. - Expectations are increasing. Customers expect their experience to be consistent, relevant and personalized at every touch point.

Getting Started – 8 Key Steps

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1. Know your objectives and success metrics

2. Conduct a communications audit

3. Listen to your customers

4. Determine customer segmentation and investment strategy

5. Plot customer lifecycle phases and timing

6. Define messaging strategy

7. Set test and implementation roadmap

8. Go to market and refine

Step 1: Know Your Objectives and Success Metrics

Primary: Should be quantifiable Example: Increase revenues by xx%; Increase renewals or mitigate churn by xx%

Secondary: Should be extensions of meeting primary goals Example: Satisfied customers and advocates, which lead to increased purchases and increased revenues; increase customer opt in; generate buzz

Are these realistic and measurable? Align costs and ROI to meeting your goals

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Keep a Daily Pulse on the Metrics Customer Communications Dashboard

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Step 2: Conduct a Communications Audit

• Build a map of existing communications to identify gaps/holes/opportunities

• Review all existing communication metrics (open rates, response rates, etc.)

• Evaluate (or build) current offer library

• Analyze impact of current touches on goals, costs and revenues

• Perform competitive analysis

• Insights should enable specific plans by segment, customer type, etc.

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Communication Audit: Evaluate contact strategy based on customer segment

Questions to ask yourself:

• What actions do you want each customer segment to take?

• What channel is each segment likely to prefer?

• What will define success for each type of communication?

• Are improvements based on findings?

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• Use immediate feedback channels – Surveys, one on one interviews, focus groups • Build longer term feedback channels – Customer panels to contact regularly for feedback • Be prepared to act on the information you hear – Customers appreciate being asked for their feedback but expectations are that their opinion will be taken into account (especially in Social Media Channels)

Step 3: Listen to Your Customers

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Clearwire Example:

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Satisfaction Survey Email

Step 4: Determine Customer Segmentation and Investment Strategy

Use available customer data (transactional, revenue, tenure) to determine investment — both frequency of communication and richness of offer

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Step 5: Plot Lifecycle Phases and Timing

Activation

On-boarding

Engagement

Adoption

Growth

Nurture Retention

Renewal

Loyalty

Churn Mitigation

Winback/ Reactivation

Communications framework, data,

investment & measurement strategies need to be specific by

phase

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Sample Activation Phase

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Sample Nurture Phase

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Sample Renewal Phase

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Sample Reactivation Phase

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Step 6: Define Messaging Strategy

• Creating a brand or “voice” for your communications so that all touches are consistent

– Make sure the communication objective is being met (i.e., cross-sell, educate, upsell, etc.)

• Carry the branding throughout the customer’s lifecycle even if touches are internally managed by different groups

– All touches should clearly be coming from one company

• Personalize where possible – Targeted, personalized, relevant messages ensure customer engagement for lifetime loyalty

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Example: Messaging Mapped by Segment

Customer Segment

Benefits message

Product Features and Benefits

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Examples of Effective Customer Communication “Branding”

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Step 7: Set Test and Implementation Roadmap

• An implementation plan will help ensure that no steps are overlooked and that each team member is clear on their role

• Participation by key stakeholders and support teams is a critical component to the success of the implementation process

• Build in milestones and check points after key steps

• Schedule implementation with enough time to read results accurately and rollout next steps

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SEPT

ANAL

YTIC

S O

PER

ATIO

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CR

EATI

VE

DEL

IVER

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OCT NOV DEC JAN FEB MAR APRIL

PILOT LAUNCH

DISCOVERY AND DEVELOPMENT TEST AND LEARN

PLAN

NIN

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STR

ATEG

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CRM Strategy and Planning Second Half Planning

Mechanics / Value Prop Review

Brand Immersion Process Review Finalize Scope Billing Setup

Ongoing Status Meetings / Updates

Client On-Boarding

Review Actuals vs. Projections

Process Review Client Sat Review

Review Actuals vs. Projections

Process Review Client Sat Review

3-Month Ops Checkpoint

Review Actuals vs. Projections

Process Review Client Sat Survey

6-Month Ops Checkpoint Ops Checkpoint

Revise Campaign Briefs (as Needed)

Strategic Review of Campaign Results

Campaign Briefs

Exploratory Data Analysis

Establish Reporting Standards

Develop Models / Value Segmentation

Test Design and Setup

Targeting Strategy

Quick Wins Analysis and Implementation

Ongoing Analysis, Reporting and Testing

Template Development

Creative Execution and Optimization

Tech Audit / Campaign Management Engine Ongoing Production Management

Operational Review Partner Integration (Tech and Output)

Example: Implementation Roadmap

Comm Framework and Executional

Confirmation

Step 8: Go to Market and Refine

Strategic Ideation and Mapping Step 1 - Prepare Conduct historical review; identify key Business Objectives; conduct joint strategic ideation sessions for each Objective Step 2 – Map Map Objectives and corresponding Strategies

Implementation Roadmap Step 4 - Schedule Prioritize and schedule implementation of each Tactical Program

Strategy Brief Step 5 - Document & Approve Document and review details of each Test Program: goal, target, timing, quantities, offers, creative, market selection and channels

Execution Step 6 - Implement Create, produce and deploy

Results Analysis Step 7- Measure Measure performance, analyze results and make recommendations for optimization

Step 3 - Develop Brainstorm and develop specific Tactics for each Strategy

The structure ensures the plan is focused on achieving the goals, with enough flexibility to adapt to changing market conditions and shifts in strategic priorities

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Case Studies

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Case Study: DIRECTV Building a New Customer On-Boarding Strategy

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Case Study: CLEAR Developing a Customer Communications Program

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Discussion / Q&A

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Thank You!

If you would like us to email you a copy of the presentation,

please leave your business card upfront

David Azulay dazulay@kernagency.com

818-703-8775 @davidazulay