FROM DIRECT MARKETING TO CUSTOMER COMMUNICATION … · 2013. 8. 1. · –Rigorous project...
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March 27-29, 2012 Xplor International Conference & Vendor Forum 1 FROM DIRECT MARKETING TO CUSTOMER COMMUNICATION MANAGEMENT (CCM) ADAPTING MARKETING ACTIVITIES IN A CHANGED FINANCIAL ENVIRONMENT GMC Software Technology Michael Bucka
Transcript of FROM DIRECT MARKETING TO CUSTOMER COMMUNICATION … · 2013. 8. 1. · –Rigorous project...
March 27-29, 2012 Xplor International
Conference & Vendor Forum 1
FROM DIRECT MARKETING TO
CUSTOMER COMMUNICATION
MANAGEMENT (CCM) ADAPTING MARKETING ACTIVITIES IN A CHANGED
FINANCIAL ENVIRONMENT
GMC Software Technology Michael Bucka
From direct marketing to customer communication management
Agenda
1. Who we are.
2. Financial crises initiates marketing cost cutting.
3. Executives must look after bottom line profitability.
4. Tunnel vision is an inadequate response for
directing campaigns in crisis situations.
5. Customer Communication Management is a
convincing alternative.
6. Five points to remember and to think about.
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From direct marketing to customer communication management
Who we are
• Michael Bucka
– 1989: IT department of a large mail order company
– 1992: responsible for confidential bank and insurance processes
– Responsible for the coordination and technical handling for short time
digital printing processes
– 1999: joined GMC, started as technical manager for D and A
– Since 2000: CE/EE GMC Software Technology GmbH,
responsible for Germany an CEE
• GMC Software Technology
– Founded 1986
– Headquarter GMC Software AG in Appenzell, Switzerland
– Privately held
– > 320 employees, 150 in the software development
– Over 8.500 users in more than 1,000 companies worldwide
– Subsidiaries in more than 35 countries
– ISO certificated, CMMI L3
Financial crises initiates marketing cost
cuts.
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From direct marketing to customer communication management
Financial crises initiates marketing cost cuts.
• Advertisement market in Germany has not recovered
from the financial crisis in 2008.
• Total expenses for advertisements still decreases.
• Decrease is more moderate than the years before
(only 1 percent).
• “Dialogue” marketing media is causing the decrease
(2/3 of the total advertisement market).
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From direct marketing to customer communication management
Companies are acting pro-cyclical
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* Source: Statistisches Bundesamt (Wiesbaden)/MRSC/TNS Infratest , Deutsche Post, Dialog Marketing Monitor 2011
2006 2007 2008 2009 2010
Total advertisement expenses in relation to gross domestic product
Total costs advertising
GDP
-2,8 +5,6 -4,8 -1,0
From direct marketing to customer communication management
Expenses for dialogue marketing in € bn.
After years of decreasing marketing budgets, firms estimate an increase from 1,9 Percent points for 2011, until 2013 an increase of 4,3 percent points.
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estimated estimated
Dialogue marketing recovers last
* Source: Deutsche Post, Dialog Marketing Monitor 2011
Executives must look after bottom line
profitability.
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From direct marketing to customer communication management
As an example,
Michael Roach, CGI,
representing the executive perspective.
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From direct marketing to customer communication management
Michael E. Roach, President and
Chief Executive Officer CGI Canada • CGI
– 31,000 professionals in 125 offices worldwide
– More than 35 years long-term growth
– Providing end-to-end IT and business process services that facilitate the
ongoing evolution of clients' businesses
– Commitments:
o Helping clients achieve their business goals
o Provide professionals with rewarding careers
o Offer shareholders superior returns over time
• A focus on the fundamentals:
– Rigorous project monitoring resulting in 95 % on-time, on-budget delivery
– Committed to world-class service levels with over 98 % exceeded or met
– Among the lowest attrition rates in the industry –
with 90 % of professionals owners
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From direct marketing to customer communication management
Mike Roach presents CGI 2011 results
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From direct marketing to customer communication management
Mike Roach‘s core points
• Every decision revolves around creating and providing sustainable value for stakeholders.
• For clients: Helping by innovation no matter the economic conditions, allowing to do more with less.
• For members: Fostering an ownership culture that incents and rewards contributions.
• For shareholders: Delivering strong financial results to provide a superior return for the long term.
CGI delivering to help all stakeholders succeed.
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From direct marketing to customer communication management
What does that mean for the executive agenda?
Three key aspects:
- Enterprise value
- Overall profit
- Potential for growth
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From direct marketing to customer communication management
Does the executive agenda overlap with the
operational agenda?
Communication takes place on two different levels
• The bottom line goals are set on the management level.
• The middle management has to operate on different marketing activities, often with a restricted perspective.
Do we need bridges to combine both levels of direction!
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Tunnel vision is an inadequate response for
directing campaigns.
Particularly in crisis situations.
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From direct marketing to customer communication management
The core problem: Campaign direction with a
restricted view and blinding out anything aside
the campaign itself
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From direct marketing to customer communication management
The traditional way to manage a dialogue
campaign Campaigns are often managed as isolated projects:
1. The creative idea
2. The target group
3. The volume
4. The address files
5. The production process
6. The distribution process
7. Opening rates
8. Response rates
9. Etc. etc. …
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From direct marketing to customer communication management
Optimizing a complicated machine
• Managing campaigns in
this approach:
Looking for the right
screw to adjust.
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From direct marketing to customer communication management
How can we build bridges?
• Enterprise values are determined by an
excellent customer communications
process
• Customer communications represents
business.
• Customer communications is the most
frequent face of a firm.
• Customer communications can be used
as a platform for maintaining customer
engagement.
• All elements of dialogue marketing play a
major role in building valuable customer
relationships!
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Customer Communication Management
is a convincing alternative
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From direct marketing to customer communication management
Brand strength has an impact on enterprise
value.
Interbrand:
• Brand strength measures the ability of the brand to secure the delivery
of expected future earnings.
• Performance in these dimensions is judged relative to other brands in
the industry, and in the case of exceptional brands, relative to other
world-class brands.
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Source: http://www.interbrand.com/de/best-global-brands/best-global-brands-methodology/Overview.aspx
From direct marketing to customer communication management
Customer communication has an impact
on brand strength.
Interbrand refers to three key aspects in the assessment:
• Financial performance of the branded products or services
• Role of brand in the purchase decision process
• Strength of the brand
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Source: http://www.interbrand.com/de/best-global-brands/best-global-brands-methodology/Overview.aspx
From direct marketing to customer communication management
Factors for brand strength
Internal factors
Clarity
Commitment
Protection
Responsiveness
External factors
- Authenticity
- Relevance
- Differentiation
- Presence
- Understanding
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http://www.interbrand.com/de/best-global-brands/best-global-brands-methodology/Brand-Strength.aspx
From direct marketing to customer communication management
Customer communications’ impact to
the brand value
Two examples
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From direct marketing to customer communication management
Abstract from the
2010 Annual report
“To us, effective marketing involves striking a balance
between inspirational and operational approaches. To
maximize brand love and brand value, we believe in
the importance and enduring impact of powerful story
telling that engage consumers with our brands and
company. Consumers increasing use of digital
technology means we must actively participate to co-
create the content and conversation of our brands.”
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From direct marketing to customer communication management
Abstract from the 2011
Annual report Germany
My burger – the direct dialogue with guests and fans
A highlight of the last year was the crowd-sourcing action “my burger.” The interactive event generated 116,000 burger-creations and 1.5 million votes cast and a lot of fun. Besides it was one of the most successful events concerning sales in the restaurants. “Not only brands decide what customers like. Our guests tell us what they like and need and what they want to consume. With our brand, we actively will reflect our clients’ diverse needs and expectations. This development will be an important aspect in our marketing,” says Bane Knezevic (CEO Germany). The actual second edition from “my burger” already breaks all records of the first edition.
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From direct marketing to customer communication management
How did the idea of Customer
Communication Management develop?
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Direct
Transactional
TransPromo
Customer
Communications
Management
From direct marketing to customer communication management
Path of Innovation
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Social
Communications
Document Composition
Process Management Automation
Customer
Engagement
Customer Communication
Management
From direct marketing to customer communication management
Market trends in customer communication
1. Customers demand individual preferences to be fulfilled
• 85% believed marketing was irrelevant
• 77% say companies should let them decide how they can contact them
• 85% use at least one technology or service to avoid marketing messages
(e.g. Spam filters, Pop-up blockers, etc.)
(Forrester)
2. Brand management, consistency of communications, cost reduction
Gartner identifies these as drivers that grew CCM inquires by 125 %
within 2 years
3. From Communications to Conversations
“Engaging consumers…will no longer just be about marketing and
communicating to them but will be about connecting and socializing with
them”
(Deloitte)
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From direct marketing to customer communication management
CCM trends
Increasing demand for CCM solutions
multi channel, individualized print and e-delivery, closed loop campaign, response
management
Relevant communications, delivered at the right time, through buyers preferred
channel is key
Social media, mobile devices and internet based services have changed buyers
behavior
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From direct marketing to customer communication management
The key objectives for Customer
Communication Management
Manage and track end-to-end process of multiple campaign activities from central point
Controlled process to deliver target messages, at the right time, through the optimal channel
Better customer insight, stronger segmenting and targeting
Refining customer messages, building conversations
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From direct marketing to customer communication management
Example: the selection funnel
1st Selection
2nd Selection
3rd Selection
4th Selection
Database
SMS
PURL, Survey,
Lottery
Simple Mailing
(e.g. b/w)
Premium Mailing
(e.g. 4c,
individualised
etc.) 1:1
Response Analytics
= Closed Loop
Data enrichment as a value driver.
From direct marketing to customer communication management
Value creation: The critical tools
1st Selection
2nd Selection
3rd Selection
4th Selection
Database
SMS (e.g.)
PURL, Survey,
Lottery
Simple Mailing
(e.g. b/w)
Premium Mailing
(e.g. 4c,
individualised
etc.) 1:1 Response Analytics
= Closed Loop
Multi
Channel
Creative
functions
Auto-
mation
Campaign
Mgt.
Response
Mgt. Customer
Preference
Customer
Analytics
From direct marketing to customer communication management
Value creation through closed loop steering
1st Selection
2nd Selection
3rd Selection
4th Selection
SMS (e.g.)
PURL, Survey,
Lottery
Simple Mailing
(e.g. b/w)
Premium Mailing
(e.g. 4c,
individualised
etc.) 1:1 Response Analytics
= Closed Loop
Database
Five points to remember and to think about.
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From direct marketing to customer communication management
Five points to “take home”
1. Bottom line value and bottom line profit will drive executive agendas
rather than isolated projects or particular direct campaigns.
2. This focus will predictably be even stronger in crisis situations.
3. Customer communication has an impact on brand strength.
Brand strength has an impact on enterprise value.
That is the dialogue marketing’s access to the executive agenda.
4. Customer Communication Management (CCM)
goes beyond campaign management.
5. The challenge: Manage end-to-end process of multiple campaign
activities from a central point. Deliver target messages, at the right
time, through the optimal channel.
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© GMC Software AG
Thank you!
Michael Bucka
GMC Software Technology
General Manager CEE
GMC Software Technology Inc.
529 Main St # 223
Charlestown, MA 02129
(617) 241-5665
