Master C R M Day 4
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Transcript of Master C R M Day 4
Hanoi 2008
CRM
Marketing Automation&
Campaign Management
Master Master Basic phases in CRM
Acquisition
Retention
Understand
Differentiate
Interact
Deliver
Develop
Personalize
Master Master CRM global architecture
Market placeLegal environementTargets & Segments
Frontoffice
Backoffice
Supplier PartnerEDI EDI
Company
Master Master Marketing automation
Global framework
Communication& Integration
Processes &PerformanceOffered
Services &Motivation
Applications &Technologie
PeopleSkills &PoliciesPlanning &
(Team)Management
KnowledgeManagement
ChannelManagement
MarketingAutomation
Master Master
DatabaseOne customer
with many interactionsto one company
Decision Support System
Customer
Cards & POS
Call center & Audiotext
Internet& Extranet
Sales Force Automation
Mail, Fax & Coupons
E.I.S. & OLAP Data Mining Campaign Mgmt
Type of toolsType of tools
C.M. C.M. C.M. C.M. C.M.
Master Master Marketing automation
Automated interaction
“More and more, companies are using interactive technology to communicate with customers without human intervention and giving access to more parts of the company and even to partners.”
Bruce Kasanoff, CEO of Accelerating1to1
Master Master Marketing automation
But marketing automation is more about changing the way we do business and interact with the customerEfficiently in each channelTrough all coordinated channels
If you're sending the wrong message to the wrong customer it doesn't matter how fast or cost-effective you become. It still won't increase revenues
Master Master Marketing automation
Creativity cannot be automated ! Marketing automation doesn ’t save you from being
good at: Strategic positionning Action planning Action design and layout Analysing the results
Marketing automation helps only at improving operations Send up reaction times Efficency in action deployment and follow-up
Master Master Communication Process
Organization
WHO do you want to
communicate with ?
WHAT do you want to communicate
HOW do you organise the
communication
RESULT of your communication
process
Master Master Campaign Management
Target selections Criteria management List manegement
Campaign planning Message definition Sequence of actions & reactions
In function of objectives of the marketing plan Available channels to handle customer responses
Campaign execution In function of the channel Keep trac of the responses
Respons analysis Actions responses Return On Invest
Master Master Campaign classical structure
Marketing plan Strategic objectives Duration
Campaigns Communication objectives Global budget
Actions Channel & Media Planning
Timming Synchronisation
Promotions Costs elements
Master Master Functions & tools needed
Organization
Target Selection
MessageDefinition
Interactionmanagement
ResultsAnalysis
Master Master Target selections
Selection tools External OLAP tools Selection module included in the C.M. tool Standard SQL selections
Operations Define the target Count the number of contacts in a targeted group Define the selection criteria Attribute the criteria to the selection group Select the contacts Use other defined group for deduplication
Master Master Target Selection
Select list
Select graph type (2D, 3D, bar, line, pie,...)
Select what you want to see
Drill down on audience
Mail report, print report,...
Master Master Target Selection
THEN:
Define audience segment through point-and-click
FIRST:
Explore your contact potential•Look for interesting target groups•Get insight in relevancy
Master Master Message definition
Communication objective(s) E.g.: Traffic building, reward, …
Offer E.g.: A car to win, -20%, Extra service …
Call to action E.g.: Call now to book your test drive, Come visit us,
Answer the questions … Tone of voice
E.g.: Dynamic, Classical, Official, … Style
E.g.: Short, promotional, serious, … Message text
Master Master Message definition
Selected Test-userYVETTE DUCHAMPSPersonnal message
Not subscribed to newsletter
Master Master Campaign execution
In function of the channel Import the selections in the C.M. tool Plan the type of response(s)
Same channel Other channel Non foreseen responses
Find the way to integrate the action responses Merge the creation material and the data
Personnalization Pay attention to the way the customer will get the result
Master Master
• ‘Communication is about conversations with contacts’ • Automate communication scenarios!
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hesitate to contact us
Campaign execution
Interaction management
Master Master
Guide contacts to your BUSINESS GOAL with Microweb:- Lead acquisition- Product upsell- ...
audience
Invitation mail
Filter: personalize microweb
Survey form1
Survey form2
Interprete result
Populate list
Response page
Master Master Respons analysis
Numer of responses Quality of the responses Costs
Fix costs Creation In production Management (DB, Marketing, …)
Variable costs Production / contact
Printing Production Sending (e-mail, post, media)
Promotion rewards Return On Invest
Master Master
Select your view:-Time period-Unique users vs overall actions
Master Master Opposition between KPI’s
Quality of service vs Cost of operations Long inbound calls Live call vs automated treatment Use of call number in communication
Revenue per customer vs CRM Investment Segmentation Integration costs
Life Time Value vs Actual ROI Elements of the calculation
Etc, …
Hanoi 2008
Campaign Management in the different channels
Master Master Technical solutions
Example of campaign management tool screens
Master Master Campaign Management in channels
Interactive Voice Respons Automated call handling
Use dial tone (E.g. Phone banking, Fax back) Voice recognition
In Call Center With CTI and ACD Inbound
To mange responses to a campaign Depend on the application
Outbound Using scripts Tele sales operator
Master Master Campaign Management in channels
Inbound call-center operations
Master Master Campaign Management in channels
Fax Automated fax system
time of sending fax responses
e-mailing Inbound
Structure mails Text minning tools e-mail fulfilment tools
Outbound List management Broadcasters
Master Master Campaign Management in channels
Mailings Address extraction Memorized send mails
Creation List of contacts
SFA List integration in the SFA tool To do definition Follow-up tracking
SMS Short message broadcast platform Interaction scenarios management
Others: Bannering, ...
Hanoi 2008
Key steps in marketing automation projects
Master Master The key steps
1. Develop a Vision Like any automation project, companies need to understand
the problems they're trying to solve. Maximize the automation effort by identifying where you can
make the quickest gains. Consider how the marketing automation system will fit with
existing marketing processes existing systems other company systems
Data sources Specific campaign management systems
Master Master The key steps
2. Understand the Organizational Impact Take a holistic approach Identify all the areas that touch customers
marketing sales telesales customer service
Consider opportunities to implement marketing tools such as auctions, exchanges and portals
Consider the human factor (egos and power struggles) Customer ownership presents a major obstacle Senior management must encourage employees to look at
marketing automation as an alternative approach
Master Master The key steps
3. Think Process First When you're talking about automation, you're talking
process. Many aspects of marketing are process-oriented
Planning steps for marketing activities Action execution Coordination and data acquisition
Some software products have work-flow built into them: If the processes aren’t thought through, it will be useless Don’t use predefined model that doesn’t match your goals You have to choose a process yourself and train the people so
they're ready for it and then automate it
Master Master The key steps
4. Organize Around the Customer Add new channels to the marketing mix multiplies the
complexities of managing marketing messages Product managers may be targeting unrelated messages to the
same people Multi-channel communication increases complexity
New communications technology dictates the need for new forms of customer interaction
Accomplished through developing teams to manage particular customer segments.
Design the right mix of promotions and campaigns to suit the customer
Master Master The key steps
5. Earn Customers' Trust most marketing automation systems today are being used to
supercharge communication Sales commission-based way of doing business Risk of bother the customer Making it harder and harder to reach them over time.
Use the technology to establish a more powerful and profitable way of satisfying customer needs
Permission marketing Don't betray a customers' trust by selling their information on the
open market Earn the customer's trust and willingness to share information
Opt-in lists Contact them only when it's really in their interest
Master Master The key steps
6. Monitor Data Integrity The foundation of any successful automation project is a clean
database Ongoing data quality Update procedures Develop data dictionary master file which defines the terms used
in the database (meta data) Put business users in charge of data categories
products customers sales
Give IT an person in the company to help Managing the data in chasing down and solving problems
Master Master The key steps
7. Choose Software Carefully You need to make sure you understand how the components
will fit together with your other systems. Ask vendors to show you
How information will get merged How much code needs to be written How quickly it can be implemented
Ask the vendors to demonstrate their products through a prototyping exercise.
Find out how the software handles a real-life situation within your own company
Better appreciation for what the software can and can't do
Master Master The key steps
8. Watch Outsourced Components When technology is constantly changing, outsourcing pieces
of your marketing automation can be an excellent alternative install a million-dollar software application host it for $15,000 to $20,000 per month
Your outsourcing strategy should be consistent with the information that you need Make sure they're capturing and keeping information for future
business Make sure the hosted applications aren't core to your business
Master Master The key steps
9. Test and Learn Technology is allowing marketers to understand which
promotions or campaigns appeal to specific audiences. analytical capabilities are often underutilized
Data mining OLAP
What's needed is a rigorous campaign management discipline strong planning codified the campaign development process analytical capabilities use a scientific method to continually refine the mix understand customer buying behavior
Master Master The key steps
10. Work Toward Cross-Channel Consistency One of the problems with marketing automation is that
customer intimacy tends to be implemented in bite-sized pieces.
Insure that each individual channel is well managed make sure they're being treated well across all channels
Providing consistent high-level service across all channels will become increasingly important.
The next challenge will be real-time synchronization across all channels
More complicated than off-line campaign management Need a better technology integration
Hanoi 2008
Case Study
Happy Days on-line activities
Master Master
• Volumes of almost 250.000 e-mail contacts • Mailings are profile-driven
large data uploads for every campaign• Campaign creation time consuming in ASP mode• In house response management• Internet infrastructure available at Happy Days• Email & Internet competence available at Happy Days• High-volume & high frequency
clear ROI for in-house product
Case study: Happy Days
Master Master
Strategy Subscription on Website Syncronisation with corporate off-line database Initiate email communication with objectives
Branding of Happy Days Increase number of pageviews on Happy Days
website Motivate people to register on the website Convince people to redeem their points online
Case study: Happy Days
Master Master
ListOpt-in email addresses via website
Almost 120.000 email addresses of people who registered via the Happy Days website
Opt-in email addresses from paper formsAlmost 80.000 email addresses of people who
indicated opt-in when subscribing to the Happy Days program
Case study: Happy Days
Master Master
Content Dynamic content
Content in 2 languages: French & Dutch Content segmentation based profile info Personalized greetings, points balance,.. Contact sensors to monitor site impact
Static content Links to Happy Days website Announcements about the program Events linked with the program Contests ...
Case study: Happy Days
Master Master
Personalized greeting
Points balance
Product promotions
Announcements
Case study: Happy Days
Master Master
Delivery E-mail is being sent in auto-sense format:
E-mail is being displayed in HTML or plain text at the recipient, depending on his e-mail client (Outlook / Outlook Express / ...)
Repartition HTML – Plain text± 90% HTML (more effective)± 10% plain text
Bounced mails are flagged in the database
Case study: Happy Days
Master Master
Response Unsubscription rate : 0,59 % Total clickthrough rate : 40,64 % Active period of mailing : ± 1 week
Case study: Happy Days
Master Master
9/03/02 13/03/0 17/03/02 21/03/0 25/03/0 29/03/0
Impact on website: Visitor sessions
E-mail send
x 6
Permanent raiseof ± 30%
Case study: Happy Days
Hanoi 2008
Databases &
Business Intelligence
Master Master CRM global architecture
Market placeLegal environementTargets & Segments
Frontoffice
Backoffice
Supplier PartnerEDI EDI
Company
Master Master
Database
Customer
Cards & POS
Call center & Audiotext
Internet& Extranet
Sales Force Automation
Mail, Fax & Coupons
C.A.S.A. method for integrated marketing & CRMC.A.S.A. method for integrated marketing & CRM
Collect
Analyse
Strategy
Medias Integrated Marketing
Action
E.I.S. & OLAP Data Mining Campaign Mgmt
Master Master The DB as cornerstone of CRM
360° Customer view & analysis
360° Customer view & analysis
* customer profiling
* Behavior Analysis
* Web Site analysis Web LogsWeb Logs
Internal Data(Sales, …)
Internal Data(Sales, …)
Customer Database
Customer Database
External Data(demographic, competitors, …)
External Data(demographic, competitors, …) Off line
contactsOff line contacts
WWW
Master Master Use of meta-data
Example of dimensions
Channel
Area
Time
Customer
Customer
Customer Group
All Customers
Sales Person/Broker
Channel
All Channels
Month
All Years
City Province Regions Country
Product Group
All Products
Year
Product
Master Master Top - down data modeling process
Identify the different data sets involved Describe the kind of relation between
them Organize the data sets among dimensions
(Who, What, Where, When, Why ?) Validate your choices Describe the fields in each data set Qualify & comment each field to obtain
the physical data model Describe validation rules, domains sets...
that will apply to each field.
Hanoi 2008
Analytical CRM
or
Business Intelligence
Master Master Basic phases in CRM
Acquisition
Retention
Understand
Differentiate
Interact
Deliver
Develop
Personalize
Master Master Business Intelligence
Some definition of B.I.
A broad category of software's and solutions for gathering,
consolidating, analyzing, and providing access to data in a way that lets enterprise users make
better business decisions.
A broad category of software's and solutions for gathering,
consolidating, analyzing, and providing access to data in a way that lets enterprise users make
better business decisions.
Gartner Group - 1993
Master Master Type of B.I. questions
Sales: Do we succeed in launching our new product ? Who are our
best vendors ? Which sectors are 20% above and below the forecast ? Can you analyse the gap ?
Purchasing: Who are our major suppliers ? What is the amount of
purchase by supplier ? Finance and controlling:
Where are we now in comparison with budget ? What are the forecasts for the next 3 months ?
Human resources: What is the turnover rate this month by Business Unit ? Is it
increasing ?
Master Master Type of B.I. questions
Marketing: What type of action is the most effective?
Results analysis Who are my clients/prospects?
Profile analysis How to improve the segmentation of my database
Scoring Where to open new stores ?
Potential analysis How improve customer behavior knowledge ?
Life style
Master Master About analysis and statistics
Rule Nr 1: “garbage in = garbage out”, take conclusions on accurate & populated data
Rule Nr 2: “Don’t interpret results, understand them.” e.g.: Bread statistics ;-)
More than 98 percent of convicted felons are bread users.
More than 90 percent of violent crimes are committed within 24 hours of eating bread.
Primitive tribal societies that have no bread exhibit a low incidence of cancer, Alzheimer's, Parkinson's disease, and osteoporosis. Etc.
Master Master Type of data
Definition of hard and soft languages
HARD SOFT
Univoque Multiple sence
contexted
e.g. 0 1MVX 1,12
PRINTM/F
BLEU(color, to be … )
Easy to analyse Coded Difficult or impossible to
analyse
DATAMINING TEXT MINING
Master Master Type of analysis
Results analysis Action response Contact & Response costs Return On Invest
Segmentation Profile Géomarketing
Click streams Surfing behavior
Segmentation & forecast RFM LTV
Text mining E.g. E-mail fulfilment
Master Master …what happened, why and what will happen ?
* Jim Berkowitz, ShowCase
Master Master Differences between Datamining and OLAP
Quartal
Month
In function of detailed data and agregates
OLAPTOP
Down
Year
E.G.DATAMINING
UP
Bottom
Count &Simple functions
Complexstatistics
Master Master Type of views
Geographical Mapping &
Traffic Lighting
Boston MatrixPlot
Graphics - 3D Bars
95% 95%65% 65%
+
75% Likelyhood of failure
Budget
Forecast
Target
95% ConfidenceLimit
95% ConfidenceLimit
ForecastingNeural Networks
Hanoi 2008
Basic segmentation
Master Master Basic segmentation
Identified Prospects
Targeted suspects
10 % clients = 40 % revenueTop
Heavy users
Medium buyers
Light consumers
High 20 % = 30 % revenue
Mid 30 % = 20 %
Bottom 40 % =10 %
RevenueClients
Master Master
Development
Brand Loyalty
Acquisition
Identified Prospects
Targeted suspects
Top 10 %Top
Heavy users
Medium buyers
Light consumers
High 20 %
Mid 30 %
Bottom 40 %
Basic segmentation
Master Master « All consumers are not created equal ! »
Data from 1/1 to 31/10/2002
Hanoi 2008
Results Analysis
Master Master Results analysis
Action basedNeed coding
per channelper cycleper periodper segment or source file
Need interactioncoupons, fax, letters, … Interactive media
Call centers, DRTV, DRRadio, … Internet POS, payment terminals, ...
Master Master
- inbound
- outbound
Call center
Dealers
D.M.
Sales Force
Mass Media
Pre-sales Sales After-salesCycle
Channel Qualification Analysis Closing Support Up-sellingGeneration
Pre-sales Sales
Ž
Œ
Œ
Ž
‘
Œ
Use the SMART Dialog ModelUse the SMART Dialog ModelTMTM
to code your actionsto code your actions
SMART = specific, measurable, achievable, relevant and time-bound
Master Master Test methodology in direct marketing
Action planAction design
Selections of suitable samples
Key performance indicators
Send communication
Reactions
Results analysus
Concept selection
Communication fine tuning
Selections
Key performance indicators
Master Master Results analysis
Action responseResponse = Nbr. responses / Nbr. Sended
Depend on targetDepend on promotionDepend on action plan & media
Response typeDocumentation or informationVisit or commercial contactOnly the promotion
Master Master Results analysis
Contact & Response costs Don’t compare contact cost, compare
response costSplit useful contacts and others
Return On Invest Integrates sales resultsCosts
Action costsFulfillment costsFollow-up costs
Pay attention to Life Time Value
Hanoi 2008
Profile Analysis
Master Master Procedure for profile analysis
Enhance client database
EXTERNAL (Consu-Data)
EXTERNAL (Consu-Data)
GEOGRAPHICDATA
GEOGRAPHICDATA
INDIVIDUALDATA
INDIVIDUALDATA
COLLECTIVEDATA
COLLECTIVEDATA
age sexchildren uni/multicar nationality
age sexchildren uni/multicar nationality
Social class urbanisationMosaic types
Social class urbanisationMosaic types
provincedistrictneighbourhood
provincedistrictneighbourhood
Clientdatabase
Clientdatabase
Master Master Procedure
ComparisonComparison
indexindex
Enhanced client
database
Enhanced client
database
Population Reference
Population Reference
2nd hand New
70% 30%
35% 65%
200 46
E.g.: motor cycle
Master Master Procedure
5070
95110 117
60
020406080
100120140
< 21 21-29 30-39 40-49 50-59 60+
Age:
30
110
140
0
50
100
150
0 1 2 +
130 120100
70 6030
0
50
100
150
A B C1 C2 C3 D
Nbr of motor cycle: Social class:
40 to 60 yearsmin. 1, and mostly 2 carsHigh social class ...
Hanoi 2008
Scoring Analysis
Master Master Scoring analysis
Goal Reduce wastage Better segmentation Better response rates
Multi-variables analysis Analysis of clients & prospects data Attribute variables weight Simulate scores Build groups
Master Master Case study: Touring Club
Analysis Response analysis Scoring of the prospection database Response forecasting
Mailing Results comparison
forecast vs real life
Master Master Case study: Touring Club
Analyzed data
province / commune language nationality age Nbr. Of children (per age segments) family size composition of the family type habitation (house of apartment)
Nbr. Of cars New or second hand car type neighborhood social class MOSAIC type
Master Master Case study: Touring Club
Social class
0
20
40
60
80
100
120
-27 27-36 37-46 47-56 57-66 +66
11386 9487
119106
0
20
40
60
80
100
120
a b c1 c2 c3 d
117 11397103
8594
Age
Master Master Which variable is to be included in the model?
VARIABLES WEIGHTED DEVIATIONCar age 15,92MOSAIC type 12,61Language 12,16Provinces 10,89Car 7,51Social class 7,27...
Master Master Case study: Touring Club
GROUPS
0%
1%
2%
3%
4%
5%
6%
7%
1 2 3 4 5 6 7 8 9 10
6,06%
4,47%
5,91%
4,20%
3,45% 3,42%
2,82%2,52%
1,77%1,41%
Master Master Case study: Touring Club
+350319-349296-318275-295255-274234-254210-233182-209144-181
-144
6,065,914,474,203,453,422,822,521,771,41
123456789
10
173167185192197201208213223232
GROUPS NBR SCORE REPONS '99(x 1000) %
Master Master Case study: Touring Club
SELECTION '99
(1.550.000)
REJECTED ADDRESSES ± 400.000
HighScores
Contr
ol 5
0 0
00
LowScores
Hanoi 2008
GEOMARKETING
Segmentation & mapping
Master Master GEOMARKETING
Where are my customers? Where can I find people with the same
profile? ...
ANTWERPEN
MECHELEN
TURNHOUT
BRUSSEL-HOOFDSTADLEUVEN
NIVELLES
BRUGGE
DIKSMUIDE
IEPERKORTRIJK
OOSTENDE
ROESELARE
AALST
DENDERMONDE
EEKLO
GENT
OUDENAARDE
SINT-NIKLAAS
ATH
CHARLEROIMONS
MOUSCRON
SOIGNIES
THUIN
TOURNAI
HUY
LIEGE
VERVIERS
WAREMME
HASSELT
MAASEIK
TONGEREN
ARLON
BASTOGNE
MARCHE-EN-FAMENNE
NEUFCHATEAU
VIRTON
DINANT
NAMUR
PHILIPPEVILLE
Master Master Key Performance Indicators
Share of walletNumber of product within the companyNeed set
1 2 3 4 5 6 7 8
8&
+
05
10152025
30Cross selling effect
Customers Members
Hanoi 2008
RFM MODELS
Segmentation & forecasting
Master Master RFM models
RFM stands for : Recency
last buy period Often the most important Depend on activity type
Frequency
Number of buys
Number of buying periods
Number of products per households Monetary value
total amount of money
Master Master RFM models
GoalMesure, manage & increase fidelity Forecast & manage churn
simulationLife Time Valuetest alternatives
Adapt communication in frequency & type in content
Master Master RFM models are based on data
Historical data (N) Client Nr. Loyaly cards Invoices Delivery notes Credit cards Waranty cards Studies Coupons Contacts, ...
Identification (1) Name & address
Telephone
Birthdate
VAT Nr.
Bank account Nr.
Master Master RFM methodology
Analyse data to find the most discriminant criteria Activity type & level Cash flow
Build the RFM model historical data Segmentation of the database Validation over several time periods Adapt ratio’s Forecast evolution
Master Master Example of segmentation
number of buys last buy last buy last buy last buy on 2 years last month between between older 1 > 3 month 3 > 12 month 12 month
1 recent recent tried once non-active
2 to 5 trusty trusty sleepers non-active
5 to 10 very trusty trusty sleepers disappointed
10 & more very trusty very trusty gone disappointed
Master Master RFM forecasting
44.00044.000
23.20023.200
22.20022.200
19.50019.500
TOT: 108.900
DATABASE
0000
1010
0101
1111
BuyY1-Y2
Size
Master Master RFM forecasting
44,00044,000
23,20023,200
22,20022,200
19,50019,500
0000
1010
0101
1111
HOLDERS on 01/01/Y3
USERSIN Y3
9%
26%
50%
60%
4,000
6,000
11,100
11,700====
32,800
PS: 29% of new holders use their card
35,000 X 29% 10,200=43,000
Master Master Life Time Value
Measure the long term potential Forecast expenses evolution Forecast the churn Adapt the marketing plan
Expenses
Time
Segment 1
Segment 2
Master Master Life Time Value
Different types of LTV Forecasted (base on company’s customer wallet knowledge) Actual (base on experience with a particular customer)
Variables Acquisition costs (direct and indirect costs) Margins (global over a period or per product) Retention costs
Marketing activities to reward and/or cross sell Complain management, …
Age, revenue level, type of product, ...
Master Master Life Time Value
Formulas
LTV = net margins - retention costs - acquisition costs
LTV = pt mt Ct - dt + at +Rt) Ct - A
Where:n = numbers of periods of customer relationA = Acquisition costsp = propention to buy in the period t
m= net margin in the period. Can be detailed in function of the products and volumesd = design costsa = variable action cost (related to the volumes)R = Retention rewards costsC = distortion factor to get constant cost or revenue
t=1
n
t=1
n
Hanoi 2008
Thanks