Post on 28-Mar-2016
description
Swift Runner Sports
Ekeleme | Kohlitz | Powers | Shepelwich | Weeden
Driving growth and profits through customer focused strategies
SITUATION ANALYSIS | OPPORTUNITY | OBJECTIVES
BRAND STRATEGY | CRM STRATEGY | APPENDIX
SITUATION ANALYSIS
IncentiveLoyalty
Program($10 off)
FreeShipping
(order over $75)
15% Discount (order over
$100)
Invited/ No Response $66.11
Received Emailor
Participant$70.11 $69.11 $68.92
No Emailor
Not Invited$63.02 $65.98 $66.47
OPPORTUNITY
Increase frequency of purchase across all running
demographics
Determine the running needs of each customer segment
OBJECTIVES
Surviving Customers
Segment % of Total Customers Segment Value from Annual Spend
Surviving Customers
1/year 24% $8.8M
Surviving Customers
2/year 11% $8MSurviving
Customers
3/year 8% $8.1M
Surviving Customers
4+/year 5% $10.1M
New Customers
1/year 40% $14.6M
New Customers
2/year 7% $5.1M
New Customers
3/year 4% $4M
New Customers
4+/year 1% $2M
Totals 100% $60.7M
Shift from being owners of avid to being owners of running
BRAND STRATEGY
CRM STRATEGY
Increase share of wallet with customers
Re-align our resources around our most valuable opportunity
Identify additional revenue streams based on consumer insight
Product Development
Sales
Superior Customer
Experience
Retention and Win-Back
Customers
Targeting and Marketing
Functions of The CRM Cycle
Run More Motivational Tool
Swift Runner Sports | For the active runner
xSearchhttp://www.swiftrunnersports.com/runmore
YO U ’ R E O N T H E R I G H T T R A C K !RUN 1 RUN 2 RUN 3 RUN 4
TIME
DISTANCE
8:15 7:58 7:57 7:42
KEEP LOGGING YOUR TIMES!
1 MILE 1 MILE 1 MILE 1 MILE
EMAIL:
PASSWORD:RUN MORE!
RUN MORE MOTIVATIONAL TOOL
Front End
Input information on health status
Personalized content specific to goals
2-3 mi/wk
8+ mi/wk
4-7 mi/wk
Casual
New
Intermediate
Avid
MONTHLY INPUT-BASED EMAILS
RUN MORE MOTIVATIONAL TOOL
Back End
Mining data to build algorithms and assign
messaging
Determine metrics of success based on conversion rates
Seasonal Marketing
WINTER
Apparel PushFree Shipping
SHOES
Apparel PushFree Shipping
SPRING SUMMER FALL
SHOES
TextWINTER
Apparel PushFree Shipping
SHOES
Apparel PushFree Shipping
SPRING SUMMER FALL
SHOES
WHAT: Apparel Push WHY: Avid runners purchasing habits
WINTER
Apparel PushFree Shipping
SHOES
Apparel PushFree Shipping
SPRING SUMMER FALL
SHOES
TextWINTER
Apparel PushFree Shipping
SHOES
Apparel PushFree Shipping
SPRING SUMMER FALL
SHOES
WHAT: Shoe Push WHY: On average shoes should be replaced every 300 miles.
Spring has arrived
FREE SHIPPING
WITH EVERY ORDER
Enter in the SWIFTSPRING code to redeem your free shipping at checkout.
SALE3 DAYS ONLY! ENDS MARCH 5TH.
And so has our selection of
the best running wear for the
season.
S H O P N O W
Dear Sarah,
Loyalty & Referral
REFERRAL PROGRAM
= $10
$25
$50
=
=
LOYALTY & REFERRAL PROGRAM
RUN MORE MOTIVATIONAL TOOL
PRIMARY TARGET: AVID RUNNERS
SECONDARY TARGET: INTERMEDIATE RUNNERS
PRIMARY TARGET: CASUAL RUNNERS
SECONDARY TARGET: ALL OTHER RUNNERS
SEASONAL MARKETING
TARGET: ALL RUNNERS
1,600,000
233,000
127,00020,000
1,000,000
20,000
Loyalty Emails*Run More ToolReferral Emails*Monthly Incentive Emails*Seasonal Incentive Emails*Race Sponsorships
*Assuming $250 CPM
Budget= $3MM
$71.8M
MINDSETACTION
APPENDIX
IncentiveFree
Shipping (order over $75)
Average Order Size
Received Email $69.11
No Email $65.98
IncentiveLoyalty
Program($10 off)
Average Order Size Average # Orders
Participants $70.11 1.1
Invited/No Response $66.11 0.85
Not Invited $63.02 0.83
Incentive15% Discount
(order over $100)Average Order Size
Received Email $68.92
No Email $66.47
IncentiveLoyalty
Program($10 off)
FreeShipping
(order over $75)
15% Discount (order over
$100)
Orders 13,661 3,456 2,397
Revenue/Order $19.16 $11.23 $10.17
Cost $53,020 $24,192 $35,955
Incentive Program Comparison
IncentiveLoyalty
Program($10 off)
FreeShipping
(order over $75)
15% Discount (order over $100)
Costs $10 - ($10 x .32)* = $6.80 $7 $15 - ($15 x .32)* =$10.20
Response Rate 13,661 / 50,000 = .273 8,125 / 50,000 = .1625 7,375 / 50,000 = .1475
Acquisition Cost $6.80 / .273 = $24.91 $7 / .1625 = $43.08 $10.20 / .1475 = $69.15
Acquisition Costs
*accounting for 32% profit margin
CasualRunner$10.79
IntermediateRunner$44.81
AvidRunner
$97.68-$256.12
Customer Segments
% of Customers # of CustomersYearly Spend Per Segment
1/year 64% 375,283 $23.6 mil
2/year 18% 103,472 $13 mil
3/year 12% 67,854 $12 mil
4+/year 6% 34,871 $12.1 mil
Totals 100% 581,480 $60.7 mil
Purchases/Year
% of Customers
Survival Rate
% of Recurring Customers
% of New Customers in
Segments
1/year 64% 39% 24% 40%
2/year 18% 59% 11% 7%
3/year 12% 71% 8% 4%
4+/year 6% 78% 5% 1%
2008 Customers Base: 581,480
Surviving Customers
Segment % of Total Customers# of Customers/
SegmentCustomers X Annual
Spend
Segment Value from Annual
Spend
Surviving Customers
1/year 24% .24 x 581,480 = 139,556 139,556 x $63 = $8.8M
Surviving Customers
2/year 11% .11 x 581,480 = 63,963 63,963 x $126 = $8MSurviving
Customers
3/year 8% .08 x 581,480 = 46,519 46,519 x $176 = $8.1M
Surviving Customers
4+/year 5% .05 x 581,480 = 29,074 29,074 x $349 = $10.1M
New Customers
1/year 40% .4 x 581,480 = 232,592 232,592 x $63 = $14.6M
New Customers
2/year 7% .07 x 581,480 = 40,704 40,704 x $126 = $5.1MNew
Customers3/year 4% .04 x 581,480 = 23,260 23,260 x $176 = $4M
New Customers
4+/year 1% .01 x 581,480 = 5,815 5,815 x $349 = $2M
Totals 100% = 581,480 $60.7M