Customer relationship management why bother? (slideshare)
- 1. Katy Raines CRM – Why bother? Christiansand, January 2012
- 2. CRM – Why bother? A reminder of CRM The changing marketing environment What CRM Can deliver Building a picture of the customer A Good CRM system
- 3. A reminder of CRM 1. Not all customers are equally valuable 2. It costs 5 times more to acquire a customer than keep an existing one 3. Customers have different needs, which need to be reflected in your marketing communications with them
- 4. Frequency 1. All customers are not equally valuable 8+ times per year 2% 60% year % of income in 1 5-7 times per year 4% 2-4 times 25% per year 26% Once 15% per year 68% % of bookers in 1 year
- 5. Retention 2. Keeping customers costs 5x less New audiences Retained customers Lost / lapsed customers
- 6. Segmentation 3. Customers have different needs These people have 2% different needs From these people 4% 26% 68% % of bookers by frequency band
- 7. Ulster Orchestra, Belfast ‘Old’ model Were sending all their customer the same thing – a large 32-page season brochure, costing £1 per issue Return on investment 1.6:1 ‘New model’ Sent different customers different things For 90% of the customers this meant sending them LESS information, but more RELEVANT Return on Investment increased to 21:1
- 8. The changing marketing environment Digital explosion = Consumers bombarded with content Growthof tools and sites to ‘aggregate’ and make sense of content for consumers to digest Expectation of content matched to need and preference NB. This is no longer a ‘nice to have’ – it’s essential!
- 9. email content - relevant Tailored to match my previous purchases General message to everyone
- 10. Web content - relevant
- 11. And what about Social Media? Customer ‘tunes in’ at various points Organisation Broadcasts messages Social Media Sends direct Organisation messages Customer CRM / Direct Marketing They are different tools for different purposes
- 12. The results Opportunity – to build loyalty and affinity by reflecting their needs back to them with relevant (and personalised) content Threat – customers will ignore your content as it isn’t relevant, and you will lose them
- 13. What a good CRM programme can deliver Increased frequency from existing customers Keeping more customers year on year Reduced marketing costs and improved return on investment Brand affinity and loyalty Improved customer insight to aid business planning and programme/product development
- 14. Building a picture of the customer Purchasing Social media behaviour behaviour Re-tweets Frequency Likes Recency Types of product Response to comms Purchase The Clicks Customer Timing Type Attitudes and preferences Stated comms preferences Profile Stated product preferences Geography Feedback / comments Demographics – age, income etc.
- 15. Customised communications Product choices Picture of the customer Timing of comms Type of comms
- 16. Symphony Hall Birmingham 600 events per year The Customer Mostly ‘one night’ shows 2200 seats over ½ million audiences each year
- 17. Symphony Hall Birmingham – challenges Too much ‘choice’ and information for the customer to make sense of The Wide range of events Customer Events changing daily – often going on sale at late notice Customers are annoyed if things sell out before they’ve heard about them
- 18. Building a picture of the customer Purchasing behaviour Contact details gathered / checked with Response to each purchase comms Record response The to direct mail Customer Record ‘click’ response to email Attitudes and preferences Data sign-up process gathers Profile preferred communication Geo-demographic method information ‘appended’ Later emails encourage to record to show likely customers to tell us product age, income etc. preferences (eg. classical)
- 19. Different communications Classical Music audiences - Season confirmed 1 year ahead - Like to see ‘full programme’ to make selections - Like printed brochures rather than digital Picture of the customer - ‘Classical music’ brochure sent by post 3 times per year - Personalised booking form and incentives to subscribe early - Email used as a reminder (but sparing)
- 20. Different communications Rock and Pop audiences - Events getting confirmed all the time - Big names can sell out in a day - They don’t want to miss the chance to book Picture of - Are used to 100% digital communications from the competitors customer - Weekly ‘On sale’ announcements, and ‘don’t miss this month’ - Reducing / minimal printed communications
- 21. Personalised e- bulletins Picture of the customer Events ‘match’ customer profile based on: - Previous product purchase - Stated product preferences - Clicks on previous emails Other events listed here
- 22. MARKETING EFFECTIVENESS Marketing ROI (all tix) Spend per seat sold (all tix) 14.00 £1.40 13.50 £1.35 13.00 £1.30 12.50 £1.25 12.00 11.50 £1.20 11.00 £1.15 2008-09 2009-210 2010-11 2008-09 2009-2010 2010-11
- 23. What do you need from a CRM system? (5 steps) Initial and ongoing data capture linked to purchasing behaviour Sensible segmentation and data analysis: Frequency/Recency Value Product type Tools To implement personalised approach To measure effect
- 24. The CRM process 1. Gather data 2. Analyse and segment 3. Implement Testing and - Product proposition - Communications methods refining 4. Measure
- 25. The picture gets more detailed Purchasing behaviour Frequency Recency Types of artform / Response to product comms Purchase The Clicks Customer Timing Type Attitudes and preferences Stated comms preferences Profile Stated Artform / product Demographics – preferences age, income etc. Feedback / comments
- 26. The messages get more effective Product choices Picture of the customer Timing of comms Type of comms
- 27. Good luck! Katy Raines Partner, Indigo-Ltd www.indigo-ltd.com katy.raines@indigo-ltd.com twitter: @katyraines