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Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
Implementing trigger-based-marketing-to-drive-customer-loyalty
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Implementing trigger-based-marketing-to-drive-customer-loyalty

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An introduction to event based marketing that is applicable to business to business and business to consumer companies.

An introduction to event based marketing that is applicable to business to business and business to consumer companies.

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  • 1. Implementing Trigger-based Marketing to Drive Customer Loyalty Adam Ramshaw Director aramshaw@genroe.com Genroe (Australia) Pty Ltd Contact Us T: +61 2 8821 6800This information is for the exclusive use of the meeting attendees. Use of this information for info@genroe.comany other purpose must have written consent from Genroe. www.genroe.com© Genroe (Australia) Pty Ltd. All Rights Reserved @Genroe
  • 2. Customer Loyalty Management INITIATE LISTEN UNDERSTAND DESIGN ACT • Assess current • Understand • Analyse the • Plan the • Implement approaches what your data to identify required and capabilities customers want Customer initiatives Loyalty Drivers • Holistic; or • Engage the • Measure how • Specific organisation well are you • Calculate the delivering Incremental • Target the Value of highest value Opportunities changes to the business We help our clients to generate more value from their existing customers.2
  • 3. First some context• What we’re talking about today – Trigger based marketing – Event driven marketing – Event based marketing• Context – Pre-sale • Acquisition and Inbound marketing – Lead nurturing – Post-Sale • Customer management – Retention – Up-sell – Cross-sell
  • 4. Today • Value Proposition – The value can you expect to drive within your organisation by implementing trigger-based marketing • Getting Started – The tools, processes, skills and approaches you need to be successful – The first steps you need to take to start making change in your business • Critical Success Factors – The factors that will drive your long term success • Roadblocks – The roadblocks (real and perceived) to overcome in order to be successful4
  • 5. Event based marketing is more effective EBM programs are typically 2 to 12 times more effective than traditional direct marketing programs.5 Source: http://www.customerthink.com/article/event_based_marketing_banks_changes_behavior
  • 6. How much more effective… • OCBC Bank – Customer acquisition • EBM campaigns have achieved conversion rates of up to 45%. – Customer Satisfaction • One service event with SMS support increased customer satisfaction by 20% over the control • FBTO (Dutch insurance company) – Website visitors that calculated premiums but did not purchase were outbound contacted and converted at 33% Source: http://www.1to1media.com/View.aspx?DocID=297386 http://www.magiq.com/media/news/fbtoseemagiq.aspx
  • 7. How much more effective… • Nab – Identified more than 3m sales opportunities that have led to about 500,000 customer conversations: 16% • Large Regional US Bank – Within the first week of a recent EBM deployment • Identified more than 3,000 trigger events with a better than 40% success rate • 5,000 "on-boarding" triggers, of which 1,500 generated incremental business Source: http://www.americanbanker.com/btn_issues/19_6/-280136-1.html7 http://www.customerthink.com/article/event_based_marketing_banks_changes_behavior
  • 8. How much more effective… • ING – Response Rates • Average rates considerably higher than traditional direct marketing. • For savings accounts – Response rates are as high as 60%. – €20 million p.a. earnings increase from direct marketing effectiveness. – Lower direct marketing costs • Reduction in direct marketing costs of 35% per year. • Onlineshoes.com – Launched trigger based abandoned cart emails at 3 day mark • 400% increase in open rate • 1,000% increase in click-throughs • 1,200% increase in conversions • 1,000% increase in revenue per email Source: “ING Delivers Personalized Product Offers Across Channels In Real Time”, Forrester Research Inc 20098 http://www.retailonlineintegration.com/article/trigger-based-emails-help-onlineshoescom-grow-its-revenues-416386/1
  • 9. How much more effective…9 Source: “Trigger Marketing: Timing is Everything”, Aberdeen Group, 2008
  • 10. EBM delivers results • Increased conversion rate • Lower costs • But is only a part of an integrated approach – Lifecycle – EBM – Segmentation10
  • 11. Getting Started requires a change in approach • The old approach – “We have a campaign Campaign Campaign Campaign now who can we send it 2 3 4 to?” • The campaign a Campaign Campaign customer receives, 1 5 depends on – Which campaign is being run – When it is run – How long since the last campaign contact – etc. • Customers are targeted with sales messages.11
  • 12. Event Based Marketing Approach • The approach is – “We react to the customer’s actions and contact them when their actions indicate we should.” • The campaign a customer receives depends on – What they have done Campaign 1 Campaign 5 – What products they hold – etc. • Customers are engaged in a conversation relevant to Campaign Campaign Campaign what they have purchased 2 3 4 and how they are interacting with us.12
  • 13. Prerequisites • Minimum practical requirements – Ability to monitor customer behaviour • Customer database – Ability to decide what to do • Real time, rules based decisioning engine – Ability to execute in a timely fashion • Campaign management software • Email marketing automation software • Ability to input to face to face / contact centre channel – Ability to report on what happened • Nice to haves – Centralised customer database – Data integration and hygiene software – Cross-channel integration infrastructure – Data mining software – Predictive analysis expertise – Centralised product/services database13 Source: Adapted from “Trigger Marketing: Timing is Everything”, Aberdeen Group, 2008
  • 14. Developing your first campaigns Identify Triggers Create Optimise Responses Test / Operationalise Evaluate14
  • 15. Triggers • Brain storming – Easier – Place to start – Make a big list! – What treatments are possible? – Discard what cannot be actioned • Data analysis – Harder – Needs more skills – Longer term insights15
  • 16. Types of triggers • Customer initiated – Purchases – Deliveries – Services contacts – Account openings/closures – Web hits • Reactionary – Things a customer does in reaction to what you have done • Clicking through to links in your email newsletter • Analytic – Non-obvious insights that you glean from the data • Scoring, statistical or other models – As simple as RFM or as complex as you like16
  • 17. Some really useful new approaches…. For more information: “Calculating Retail Sales Forecasts, Customer Life Time Value, and other customer variables” http://bit.ly/oSg0Xy17 Source: “Probability Models for Customer-Base Analysis”, Peter Fader, Bruce Hardie, 2009
  • 18. Create the response • What will be done?18
  • 19. It is not always clear what to do? • Customer deposits $21,564 in their transaction account? – Have they just been made redundant? – Sold their car? – Sold some shares? – Moved money from another bank? – Received an insurance payout?19
  • 20. Create the response • What will be done? • Can it be done? • How will it be done? – Inbound – Outbound • Who will do it? – How will they know to do it?20
  • 21. Evaluate Success • Set up measurement process early – Identify goals early – Create a dashboard • Point in Time Campaign Vs Event Campaign Measurement21
  • 22. Operationalise • Automate – The number of simultaneous campaigns will explode – Many more, much smaller campaigns – You will need to automate. • Customer Contact Framework – The complexity of customer contact will explode – You need to set yourself up for success.22
  • 23. The Customer Contact Framework prioritises and control customer contact A comprehensive, set of rules to define when and how a customer can be Contact contacted by the Rules organisation. Customer Contact Framework A segment by A comprehensive segment, cell by history of every cell, plan for the attempted, campaign Contact Contact unsuccessful and contacts that a Calendar History successful contact customer will that the receive over their organization has lifecycle. with a customer.23
  • 24. Optimising • Only after you get the basics done • Question to answer: – If I have more than one treatment that I can execute for this customer which should I choose?24
  • 25. Getting started, in summary • Start simple Identify • Use what you already have Triggers available – Data wise – Communication wise Create Optimise Responses • Prepare for long term requirements Operationalise Test / Evaluate • Dedicate some marketing resources to making it happen25
  • 26. Critical Success Factors • Pick the right channel for the right trigger – Black box triggers are better implemented via automated systems • Inbound Channels Pre-think the actions • Speed / Timing – “The shelf-life of an EBM trigger is approximately three days, and success rates fall sharply during that period” – You must be able to react quickly.26 Source: “Event-Based Marketing Helps Banks Pinpoint and Benefit From Changes in Customer Behaviour”, Dan Smith, 2008
  • 27. How important is speed? It can be very important!27 Source: The Lead Response Management Study, 2009
  • 28. Critical Success Factors • Technology requirements – Ability to monitor customer behaviour • Customer database – Ability to decide what to do • Real-time, rules based, decisioning engine – Ability to execute in a timely fashion • Campaign management software • Email marketing automation software • Ability to input to face to face / contact centre channel – Ability to report on what happened28 Source: Adapted from “Trigger Marketing: Timing is Everything”, Aberdeen Group, 2008
  • 29. Measurement is critical to long term success29 Source: “How Interactive Marketers Should Rethink Traditional Approaches To Campaign Management”, Forrester, June 2011
  • 30. What should you report on?30 Source: “Trigger Marketing: Timing is Everything”, Aberdeen Group, 2008
  • 31. Summary of Critical Success Factors • Pick the right channel for the right trigger • Inbound Channels: Pre-think the actions • Speed / Timing • Have the right tools • Measure success31 Source: “Event-Based Marketing Helps Banks Pinpoint and Benefit From Changes in Customer Behaviour”, Dan Smith, 2008
  • 32. Roadblocks (that aren’t really there) • “Determining what treatment to perform can be really hard!” – But once it’s done you can reap the benefits for the long term. • “Our data is not good enough” – It is never perfect but it is always good enough to do something • “How do we pull all of the data into one place so we can get a whole of customer view?” – This one is tough, no doubt, but start with what you have and build.32
  • 33. Roadblocks (that aren’t really there) • “I’m already implementing a new acquisition campaign every quarter/month/week and that’s really tough how am I going to build 400!” – The incremental approach means that you just keep adding to the pile. – You need to focus on repeatable, automatable, higher volume, triggers. – Don’t try to “boil the ocean” – focus your efforts33
  • 34. Roadblocks (that aren’t really there) • “Won’t my customers be unhappy if they think we’re looking over their shoulder all the time?” – It all depends on how you deliver the treatment. • “We really can’t afford all of the new systems required” “We can’t get on the IT roadmap for 12 months.” – Most systems are deliverable as Software as a Service so costs are operational and IT does not need to get as involved. – Think incremental34
  • 35. Today • Value Proposition – EBM programs are typically 2 to 12 times more effective than traditional direct marketing programs. • Getting Started – Start simple – Use what you already have available – Prepare for long term requirements – Dedicate some marketing resources to making it happen • Critical Success Factors – Report, report, report – Speed/Timing • Roadblocks – Are not nearly as large as they may seem35
  • 36. Implementing Trigger-basedMarketing to DriveCustomer LoyaltyQuestions(I will email a copy of this presentation toeveryone that registered.) Contact Us T: +61 2 8821 6800 info@genroe.com www.genroe.com @Genroe

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