Crm Part 1 & 2

CRM – Back to Basics A Two-Part CRM Presentation (Getting on the same page together) The Market Research What we can learn… Walking a Customer Service Talk What we need to do. Jon Hardie Rebecca Krause-Hardie Audience Works Copyright 2007

Three core pieces of research inform our discussion today Initiators & Responders: Leveraging Social Context to Build Audiences Alan Brown / Knight Foundation The One Number You Need to Grow Frederick F Reichheld / Harvard Business Review (HBR) Perfect Message - the Perfect Moment Kirthi Kalyanam & Monte Zweben / HBR

Leveraging Social Context Initiators & Responders by Alan Brown 56% of our audiences fill our seats because someone else invited them Initiators invite Responders Their value can be as much as 3 times the average subscriber

Social Context Who invites you to an event, has as much to do with your decision to attend as other factors such as program, artist, menu, etc. Regarding your potential attendees: No matter how many brochures you send to Responders - it’s unlikely they’ll ever act on their interests without an external stimulus - an invitation from a friend or family member.

Social Context - Initiators Initiators are a small group but your most loyal consumers - 18% - (think Type A cultural consumers) - are the glue that holds your audience together. They are twice as likely as those who are not initiators to be interested in attending They attend significantly more events They are more likely to say that arts plays a ‘major role’ in their lives

The One Number You Need to Grow By Frederick Reichheld (HBR) “ How likely is it that you’d recommend (your organization) to a colleague?” not very likely 1 2 3 4 5 6 7 8 9 10 very likely What is the ratio of your Promoters (those who strongly agree with a 9 or 10 rating to your Detractors (any answer less than 7) Your target ratio should be 75-80% The Dangers of Your Detractors collateral damage issues

The Perfect Message, at the Perfect Moment By Kirthi Kalyanam & Monte Zweben (HBR) Most customers don’t want to hear from you most of the time. Because they have a life! But when they do, How do you seize the moment? The question “when” - like most marketing questions - can be answered by technology: specifically, by a new computer-based model called ‘dialogue marketing’.

Dialogue Marketing Concept Dialogue marketing - allows you to listen to customer needs and respond just in time with just the right message With just the right channel Its principal advantages over older approaches are that it is completely interactive, exploits many communication channels, and is ‘relationship aware’: that is, it continuously tracks every nuance of the customer’s interaction with the business.

Dialogue Marketing In Action Striking up a conversation Identifying decision moments or actions Offering choices that respond to those moments Have dialogue menus that respond to market segments and become more specialized as the prospects respond You can use meal service decision points as a model identify meal service transactions, timing, choices, responses Dialogue examples include: Event notification Repurchase reminders Inventory and Price Alerts Life Cycle Progressions moving through increasing levels of loyalty, from the point of first contact to their bequest!

Synthesis Listen to our audience (Really Listen) Be responsive to their needs (Walk the Talk) Do it at just the right moment (For Them) But - How do we do that? Or not…

Resistance to Change Our data systems can’t do that We don’t have the staff We don’t have the money We’ve never done it that way before Albert Einstein’s definition of insanity is doing the same thing over, and over again, … and expecting a different result” What do we want for outcomes?

Opportunities (or opportunities lost) People’s expectations are not driven by your particular institution, but by the standards of everyday life. What is available elsewhere? What level of service do I come to expect? I want to buy what I want, when I want it! Hint: its 10X cheaper to do proactive customer care via a sustained dialog that anticipates needs; than our often business as usual, reactive, emergency room, customer service … when what is delivered is broken!

Let’s see how we can actually put these ideas into practice Walking The Talk with Customer Service

CRM - Back to Basics Part 2 Walking The Customer Service Talk What we need to do Jon Hardie, AudienceWorks

Our most loyal customers will grow our businesses for us, by referral … but only if we let them!

“ Our only path to profitable growth may lie in our ability to turn our most loyal customers … into our marketing department!” Frederick F. Reichheld

What exactly does that take? Institution-wide commitment Consistent messages Customer focused relationships Dialog based conversations Making it easy

Institution Wide Commitment This means alignment This means understanding This means agreement This means buy-in This means shared ownership … from the very center to the farthest edge … everybody rowing in the same direction

Customer Focused Relationships How effectively do we communicate? How well do we listen? Do we listen and respond at the right moments? What do we want our customers to remember? What do our customers say about us?

What happens when… The customer gets lost? We push our guesses of what we think the customer wants? In direct mail with 2% response rates, we are wrong in guessing what our customers want, and need, and when they need it … 98% of the time. When are overwhelmed with the daily grind we develop an Edifice Complex.

Something to think about… After all of our marketing efforts… All of our direct mail … All of our print ads… All of our telemarketing… All of our email blasts… The research indicates that it only only takes (2) experiences of customer dis-service before their goodwill and all the investment goes south … along with all of their friends. (remember that referral marketing goes both ways) It only take 11 hours on the runway … just ask Jet Blue. (churn & burn is expensive)

Consistent Messages Examples of Customer Dis-service Care to share your most embarrassing Lessons Learned?

What is our underlying attitude about our customers? Are they the problem? What do we mean by customer service? What are the alternatives? What’s the payoff?

How effective are referrals What percent of our new business comes from referrals from our loyal patrons? 60% What’s the conversion rate on passionate referrals from your most loyal customers? 75% What is our conversion rate direct mail? 2% You do the math!

Loyalty is “ Loyalty is the willingness of someone, an employee, customer, or friend, to make an investment or personal sacrifice to strengthen a relationship.” Frederick Reichheld

Loyalty is not…. Is not about price Its not accurately measured by repeat purchases may be habitual It DOES mean… “ Sticking to an institution that gives good value over the long term, even if the customer does not receive the best price in a particular transaction.”

Customer Service It’s all about the cup of coffee How do you acknowledge your customer’s loyalty? How well do you listen? What’s your plan for a dialogue?

Dialogue Marketing Take the time to Identify and flowchart major decision-tree pathways - from the customer’s perspective! Start by reviewing each of your interactions and transactions with each major customer group Consider their entire life cycle with you and each of your staff members

Dialogue Marketing Steps Offer a range of choices Create choices that respond to: Market segments That become more specialized That adapt as prospects respond and interact with you over time

Dialogue Examples Event notification Repurchase reminders Inventory / Price Alerts Special Occasions

A couple of effective Relationship Management Tools Orbit What is ORBIT How was it created How is it used RetrieverPost What is Retriever Post How is it used

Follow The Yellow Brick Road Identify the frequent communications Ask what triggers those communications to make them more timely Add a question or call to action with each communication Prepare alternative responses Create series of urgent calls to action that kick in if your call goes unanswered Think about Life Cycle Progressions

Let’s Review Create & Sustain Value & Loyalty: by investing in: Institutional Stakeholder Alignment all together now Product Excellence – only the nest Superb Customer Care – In every transaction – (think of meal service)

Help customers grow your business Ask them & Listen (no faux listening) Build Trust & Value over time Sing to them - everyone to them .in the same key … but not the same song to every customer - needs differ Respond at just the right moment in just the right way with your dialogue Keep rowing together - little by little

Thank you! Jon Hardie Rebecca Krause-Hardie [email_address] 978-575-1454

Crm Part 1 & 2

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Crm Part 1 & 2