GGA Conference 09 - Shai Eilon
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Transcript of GGA Conference 09 - Shai Eilon
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Shai Eilon
“ A one night stand or life long passion –creating relationships to last a life
time”
Shai Eilon
GGA - Spreading the Love
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Why bother persuading
your customers to stay?
Is this really worth it?
Shouldn’t we give up on
customers who don’t come back to us?
Is it really possible to create a relationship with
customers or is it a myth?
So, Is It A One Night Stand Or Life Long Passion?
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Why Driving Loyalty By Developing Long Lasting Relationship With Your Customers Is Important?
• Will keep you closer to your customers – ‘listening mode’
• Enable you to innovate and react to trends faster then your competitors
• Will become one of your biggest fixed assets
• Drive higher frequency, increase spend and reactivate sleepers –
Increase ‘Share of Wallet’
• Improve your marketing efficiency
• Will attract partners, suppliers and clients - stronger position in the
market
• Will make your brand stand out amongst the increased volume of
information and messages consumers are exposed to everyday
• Distaste with aggressive, disruptive marketing
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The Role Of eCRM Within Marketing & The Key Measures
+XX%
+XX%
+XX%
+XX%
TargetBrand
PR
SEM
Customer Experience
(UI)
CRM
CRM/ Marketing
Directors
Accountable
Unique Visitors
Conversion
Repeat Purchase/
Loyalty
Efficiency
Measure
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Does Size Matter?
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Does The Size Of Your Organisation Matter?
No it doesn’t!
The key to success is to keep it simple and customer focused!
No matter what size of organisation you are – the same principles apply
Let’s look at the key components of how to create a successful CRM programme
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Data collection
Unified Cust dbase
Data Analysis
CRM Goal & Objectives
Contact Strategy
Structured Comms plan
SMS
Direct Mail
Site
FOUNDATIONS STRATEGY IMPLEMENTATION
UNDERSTAND YOUR DATA AND KNOW HOW TO USE
Key Components Of A Successful CRM Programme
Tracking, reporting, learning & insight
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Data collection
Unified Cust dbase
Data Analysis
CRM Goal & Objectives
Contact Strategy
Structured Comms plan
SMS
Direct Mail
Site
FOUNDATIONS STRATEGY IMPLEMENTATION
UNDERSTAND YOUR DATA AND KNOW HOW TO USE
Key Components Of A Successful CRM Programme
Tracking, reporting, learning & insight
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The Transformation We Are All Aiming For
Traditional Customer Centric
Untargeted
All the Same
One Way
Ad-hoc
Relevant
Personalised
Dialog
Structured & consistent
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RECENCY:
ACTIVE = PURCHASED IN THE LAST 12 MONTHS
DORMANT - PURCHASED 12-18 MONTHS AGO
SLEEPERS = PURCHASED 18+ MONTHS AGO
FREQUENCY:
NEW = CUSTOMERS WITH 1 PURCHASE IN THEIR LIFETIME
DEVELOPING = CUSTOMERS WITH 2 PURCHASES IN THEIR LIFETIME
LOYAL = CUSTOMERS WITH 3+ PURCHASES IN THEIR LIFETIME
RECENCY
Where To Start? Recency Frequency Value Segmentation
50%
15%
35%
ACTIVE
SLEEPERS
DORMANT
VALUE
44% of value
19% of value
37% of value
3+ = LOYAL
2 = DEVELOPING
1 = NEW
FREQUENCY
13%
16%
71%
3+ = LOYAL
2 = DEVELOPING
1 = NEW
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How To Use The Segmentation To Develop Relationship And
Drive Loyalty
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
Active
Customer
Base
New(1 Purchase)
Developing(2 purchases)
Loyal(3+ purchases)
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
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Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
Active
Customer
Base
New
Developing
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
- Not enough information- Include wide range of
offers- Strong & attractive
offers to convert them
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Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant
Sleepers Developing
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
New(1 Purchase)
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Repeat Purchase & Segmentation Model
Subscribers
Only
Site Visitors
Convert subscribers onlyto become customers
Dormant
Sleepers Developing
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
New- Specific to their
purchase- Send immediately after- Welcoming tone
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Repeat Purchase & Segmentation Model
Subscribers
Only
Site Visitors
Convert subscribers onlyto become customers
Dormant
Sleepers Developing
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
New(1 Purchase)
1 purchase
- Brand value: how are you different to other competitors?
- Atmosphere & community sense
- Soft message to establish awareness
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New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant
Sleepers
Loyal
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
Developing(2 purchases)
- Well done: you converted them to a 2nd
purchase- Be more direct and try
xsell other items- Use information you
now have about them to improve relevancy
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Developing
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant
Sleepers
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
Loyal(3+ purchases)
3+ purchases
- Now they are more engaged with your brand/company
- Can be more bold with the messages
- Just need to trigger them to come back
- Offer some benefits to retain them.
- Involve them more and give them a sense of ownership
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Loyal
Developing
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
- Oh dear, you nearly lost them
- Not too late: try to win them back.
- Be gentle they may have a good reason
- Try to find out why they became inactive
- Return to generic messages and offers –maybe you got it wrong
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Loyal
Developing
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
- Is it the end of the relationship?
- Try again, be a bit more direct
- Remind them what’s good about your company, services and offers.
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Loyal
Developing
New
Repeat Purchase & Segmentation Model
Subscribers
Only
Consumers
Convert subscribers onlyto become customers
Dormant(12-18 months ago)
Sleepers(18+ months ago)
VIP
Failed to purchase in 12 months period
Drive Repeat Purchase
Welcome
- Lead NC to 2nd Purchase
Developing
- Lead to next 3rd & 4th Purchases
Loyal
- Ensure long term Loyalty & x-selling
i.e. lead to ‘VIP’
Re-activate lapsed customers
Transactionalcommunications
Active
Customer
Base
- Last resort: try to incentivise to bring them back.
- This will be more expensive but still cheaper than acquiring a new customer.
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Get Started With CRM -- Practical Notes
1. Review current set up:� Technology -- Data collection, Database, Analysis and insight to understand customers� Human Resource -- Who in your organisation is the owner of CRM� Business buy-in� Legal compliance
2. Strategy and programme structure:� What are your core business goals and objectives?� What should your CRM goal and objective be to support you core business objectives?� Define the key measures for your CRM area and agree a realistic target� Segment your customer base specifically to the nature of your business -- RFV, products, artists,
genres etc.� Create a 'Contact Strategy' for your customer segments to achieve your goal, objectives and
targets� Now prepare a detailed 'Communication Plan' ideally for the next 12 months.
3. Prepare for execution:� Identify the communication channels and best tools to deliver those communications -- Email,
SMS, DM etc.� Design templates, define tonality, copy write, legal disclaimers etc.� Test your processes and systems internally before launching.
4. Implement your plan:� Start executing your campaigns� Get Smarter with each interaction: track, analyse, review and modify to optimise your activities.
CRM is an evolving journey just like any other relationship
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Questions?
Please do not hesitate to contact me with any questions you may have
following today’s presentation:
M: +44 (0) 7977 511398