Your SlideShare is downloading. ×
0
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
4   Developing & Retaining Customers   Profitable Multi Channel Marketing   March 2010
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

4 Developing & Retaining Customers Profitable Multi Channel Marketing March 2010

1,220

Published on

Developing & Retaining Customers …

Developing & Retaining Customers
So, you’ve acquired a customer (or at least someone who’s bought once). How do you go about converting them into a truly valuable ‘long term’ customer and how do you evaluate how much to spend on them and when to stop?

Published in: Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,220
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
116
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Developing and Retaining Customers
  • 2. What we’re covering <ul><li>Defining the customer </li></ul><ul><li>Developing customers </li></ul><ul><li>Segmenting your customers </li></ul><ul><li>Understanding your costs </li></ul><ul><li>Contact frequency </li></ul><ul><li>Optimising performance </li></ul><ul><li>Contact strategies </li></ul><ul><li>Data and Testing </li></ul><ul><li>Summary </li></ul>
  • 3. Defining your customer
  • 4. Who are we talking about? … . you know about and have bought from you … .. you know about and have never bought from you … .. you know nothing about and have bought from you You know nothing about and have never bought from you
  • 5. Customer Acquisition vs Customer Development
  • 6. How does a customer define you? <ul><li>Customers buy from you because </li></ul><ul><ul><li>You provide a product or service they want at a point in time </li></ul></ul><ul><ul><li>At a price they consider realistic </li></ul></ul><ul><ul><li>With a service that they find acceptable </li></ul></ul><ul><ul><li>And because they trust you (or at least don’t distrust you) </li></ul></ul><ul><li>Generally they won’t buy from you any more if any one of these elements is no longer true </li></ul>
  • 7. Defining ‘a customer’ <ul><li>‘ Customer’ is a very broad concept </li></ul><ul><li>Many ways to define a customer </li></ul><ul><ul><li>buyer </li></ul></ul><ul><ul><li>multibuyer </li></ul></ul><ul><ul><li>active </li></ul></ul><ul><ul><li>best </li></ul></ul><ul><ul><li>lapsed </li></ul></ul><ul><ul><li>new </li></ul></ul><ul><ul><li>profitable </li></ul></ul><ul><ul><li>………… .. </li></ul></ul>
  • 8. Defining ‘a customer’ <ul><li>‘ How you define ‘customer’ in your business depends on a variety of factors </li></ul><ul><li>Such as: </li></ul><ul><ul><li>Cost of recruitment </li></ul></ul><ul><ul><li>AOV </li></ul></ul><ul><ul><li>Purchase frequency </li></ul></ul><ul><ul><li>Lifetime value </li></ul></ul><ul><ul><li>Contact cost </li></ul></ul><ul><li>Final analysis - its all down to profitability </li></ul>
  • 9. Developing customers
  • 10. Developing customers <ul><li>You’ve just spent money on acquiring a customer </li></ul><ul><li>What do you do next? </li></ul>
  • 11. Developing customers <ul><li>How do you ‘tempt’ customers to buy more? </li></ul><ul><li>How do you decide which customers are most likely to buy? </li></ul><ul><li>How do you decide on the most appropriate temptation(s)? </li></ul><ul><li>How do you decide how much to spend and when? </li></ul>
  • 12. Developing customers <ul><li>The big advantages of marketing to customers are: </li></ul><ul><ul><li>You know who they are </li></ul></ul><ul><ul><li>You know what they bought </li></ul></ul><ul><ul><li>You know may know what triggered the purchase </li></ul></ul><ul><ul><li>You certainly know how they bought it </li></ul></ul><ul><li>Developing customers is about using, and building on, this information to drive sales through a planned contact strategy </li></ul>
  • 13. Developing customers <ul><li>Who’s going to give the best return? </li></ul><ul><li>Most common modelling is RFM </li></ul><ul><ul><li>Recency </li></ul></ul><ul><ul><li>Frequency </li></ul></ul><ul><ul><li>Monetary </li></ul></ul><ul><li>More complex modelling can refine this but get the basics right first. </li></ul>
  • 14. Segmentation
  • 15. Segmenting your customers
  • 16. Segmenting your customers <ul><li>Which groups contribute most - and least </li></ul>
  • 17. Segmenting your customers <ul><li>And how many customers in each? </li></ul>95% of profitable customers?
  • 18. Segmenting your customers <ul><li>And how many customers in each? </li></ul>95% of profitable customers?
  • 19. Understanding costs
  • 20. Understand your costs Customer Mailing Affiliates PPC
  • 21. Particularly in the ‘grey’ areas
  • 22. Contact frequency
  • 23. Contact Frequency
  • 24. Contact frequency
  • 25. Optimising performance
  • 26. Optimising Customer Performance <ul><li>For the vast majority of your customer base basic analysis tools will work fine. </li></ul><ul><ul><li>RFM analysis </li></ul></ul><ul><ul><li>Source of initial order </li></ul></ul><ul><ul><li>Possibly initial product category </li></ul></ul><ul><li>This will identify both </li></ul><ul><ul><li>Your existing ‘best’ customers </li></ul></ul><ul><ul><li>Those customer types which provide the best ROI and thus the ones you want to target and encourage </li></ul></ul><ul><li>Once you’ve got this data and acted on it you could look at more sophisticated modelling – it will fine tune the boundaries but is unlikely to change the general approach </li></ul>
  • 27. Optimising Customer Performance <ul><li>Monitor the structure of your database </li></ul><ul><li>If the numbers in the top left are rising you’re winning </li></ul>
  • 28. Optimising customer performance <ul><li>RFM would lead you to focus on the top left hand </li></ul><ul><li>More sophisticated modelling, such as regression analysis, might find subgroups to rule in or out linked to other variables </li></ul><ul><li>But this is more likely to impact the yellow areas than any other </li></ul>
  • 29. Customer strategies
  • 30. Customer strategies Contact methods <ul><li>Contact drives sales </li></ul><ul><ul><li>Variety of Contact Mechanisms </li></ul></ul><ul><ul><ul><li>Mailed catalogues </li></ul></ul></ul><ul><ul><ul><li>Other mailings (leaflets / postcards) </li></ul></ul></ul><ul><ul><ul><li>Bounceback catalogues </li></ul></ul></ul><ul><ul><ul><li>E-mail </li></ul></ul></ul><ul><ul><ul><li>Outbound telephone </li></ul></ul></ul><ul><ul><ul><li>Text </li></ul></ul></ul><ul><ul><li>And these can be enhanced with </li></ul></ul><ul><ul><ul><li>Offers </li></ul></ul></ul><ul><ul><ul><li>Promotions </li></ul></ul></ul><ul><ul><ul><li>Personalisation </li></ul></ul></ul>
  • 31. Customer strategies <ul><li>Different types of customer will be best served by differing strategies. For example: </li></ul><ul><ul><li>New customers (recent single buyers) </li></ul></ul><ul><ul><li>Existing customers (multibuyers) </li></ul></ul><ul><ul><li>Best customers (recent 2+ multibuyers) </li></ul></ul><ul><ul><li>Fading customers (6 - 9 month buyers) </li></ul></ul><ul><ul><li>Lapsed customers (9 month + buyers) </li></ul></ul>
  • 32. Customer strategies New customers (recent single buyers) <ul><li>Objective: Convert to Multi Buyer </li></ul><ul><ul><li>Welcome e-mail as soon as order likely to be delivered featuring: </li></ul></ul><ul><ul><ul><li>Greeting to the business </li></ul></ul></ul><ul><ul><ul><li>Feedback form asking to comment on experience </li></ul></ul></ul><ul><ul><ul><li>Product ‘offer’ related to add on to first purchase </li></ul></ul></ul><ul><ul><li>Catalogue mailing within 4 weeks </li></ul></ul><ul><ul><li>High frequency contact strategy (most frequent mailing and e-mail strategy) </li></ul></ul>
  • 33. Customer strategies Existing customers (multibuyers) <ul><li>Objective: Convert to higher level multibuyer and maintain recency value </li></ul><ul><ul><li>High frequency contact strategy by mail and e-mail </li></ul></ul><ul><ul><li>Introduce graduated promotions to contacts after first 1/3 of season </li></ul></ul>
  • 34. Customer strategies Best customers (recent 2+ multibuyers) <ul><li>Objective: Convert to yet higher level multibuyer and maintain recency value </li></ul><ul><li>These are the most valuable customers AND the ones that like your product and service the most </li></ul><ul><li>The aim should be frequent contact but there should be less need to promote </li></ul><ul><ul><li>High frequency contact strategy by mail and e-mail </li></ul></ul><ul><ul><li>Tailor e-mail / personalised print communication to reflect ‘special’ status </li></ul></ul><ul><ul><li>Exclusive product offers </li></ul></ul><ul><ul><li>Delay promotion to last 1/3 of season and focus on exclusivity / first chance to get offers. </li></ul></ul>
  • 35. Customer strategies Fading customers (6 - 9 month buyers) <ul><li>Objective: Catch before they fade away </li></ul><ul><ul><li>Lower frequency contact strategy </li></ul></ul><ul><ul><li>More use of e-mail </li></ul></ul><ul><ul><li>Stronger ‘come back’ promotions </li></ul></ul><ul><ul><li>Mail at start of season and with Sale catalogues </li></ul></ul>
  • 36. Customer strategies Lapsed customers (9 month + buyers) <ul><li>Objective: last chance to get back as buyers before abandoning </li></ul><ul><ul><li>Low frequency contact strategy </li></ul></ul><ul><ul><li>Heavy use of promotions / offers </li></ul></ul><ul><ul><li>‘ Last chance’ call to action </li></ul></ul><ul><li>Assess seasonality (e.g. gift buyers at Christmas) and tailor contacts accordingly </li></ul>
  • 37. Data & Testing

×