5. Objectives
• Understand the importance of services
marketing
• Be customer oriented and focus
• Build operational plans
• Raise awareness on quantitative insights
• Evaluate the required skills and levers to
build profitable services strategies
6. Summary
1. What is services marketing
2. Investments
3. Funnel analysis
4. Marketing plan
5. Build Loyalty
6. Organization of the department
7. Call-center Management
8. Sales pitch
9. Database marketing and segmentation
8. The reference
8
Broché: 648 pages
Editeur : Pearson Education;
Édition : 7 (1 janvier 2010)
Collection : Pearson Education
Langue : Anglais
ISBN-10: 0136118747
ISBN-13: 978-0136118749
9. The service-goods continuum
• 64% of GDP is on services, 77% in
France
– Source: the World Factbook 2008
• Companies tend to increase service in their offer:
10. IBM / DELL / S&P500
DELL
S&P500
HBR IBM Decade of Transformation
11. Few definitions…
• Manufacturing
– Order-taking
– External
– Transaction
• Services marketing
– Interactive
– Internal
– Relational / One-to-one
• Direct marketing
– Database marketing
– Digital
• Customer service / CRM
Customer
value
11
12. Marketing services and key success
factors
• THE STRENGTH OF THE
BRAND
– Intangibility: Services lack the tactile quality of
goods
– The customer buys the reputation for expertise and
for expected performance.
– Differentiation on the brand and management of
positioning
• THE RIGHT PRODUCT AT THE
RIGHT TIME
– Simultaneity/Perishability: A customer uses a
service if time and place of production meets its
expectations and needs.
– Interaction: Marketing plan optimization,
development of multi-channel distribution (website,
branches, telemarketing, mailing, SMS, e-mailing,
interactive answering service…)
• PERSONALISATION
– Variability / Heterogeneity: Service varies from
one customer to another, from one employee to
another, from one store to another…
– Enhancing value: Management and supervision of
customer relation (CRM): sales leaflets / POS / Scripts
and personalised service through segmentation.
• INNOVATION / SERVICES
– Differentiation: innovation quickly copied
– Innovation: stimulation by continuous R&D to
offer innovative products and services (web
customer services / Interactive answering service,
new devices)
1222Thefourservicemarketingmyths..22
13. The 7P’s
• Importance to integrate new concepts in order to generate intimacy…
In a
multichannel
environment
Permission PersuasionPersonalization Presence
Brand awareness &
reputation
Importance to choose the
right time of contact
Optimize the preferred
distribution channel
Helpful and not too pushy,
customer feels it’s a
service
The customer makes a
decision when he is ready
Importance to integrate
behavioral information
Adaptable scripts
Active listening to
propose the right offer at
the right time.
We only use data that
customers gave us
permission on their chosen
channel
It is a privilege to have a
conversation with the
customer. The contact is
valuable and sacred.
Mono-channel Price Product Promotion Place
People
Customer Service
Physical Evidence
Process
13
14. "I know half my advertising isn't working, I
just don't know which half.” William Lever
• Marketing is about maximizing
performance of the investments
$ REVENUE / $ INVESTMENT
• The objective is to reduce the half…
– Work with procurement and negotiate
– Always challenge the allocations
– Find new way to push your offer
– Analyze the performance
– Push high value products
– Understand the full value chain
18. 31 billions € invested in 2011 (UDA)
18Chiffres_cles_des_annonceurs_2012
19. Contacts on push medias: CPM x Impact = wCPM
To generate memorization, call-to-action on reply pulled channels
Leading to responses : POS, call-center, e-mail, mobile or website
Media Buying
PLV Billboard
Outdoor Internet,
Banner
News
paper
Radio
TV
Cinema
CPM < 2€
Mass reach
CPM between 2€ and 5€ CPM > 5€
Narrowed reach
Magazines
Direct
Mail
Telemarketing
Source: JCDecaux – Comparatif C/000 contacts par pays et media
21. ATL Media planning
• GRP = Reach of the targeted audience (%)
x Frequency (#)
• GRP values are commonly used by media buyers to compare/plan
the advertising strength between various media vehicles, period,
format of communication.
• Difficulty to evaluate the reach and to be precise about the
audience…
• The goal is to obtain the highest possible GRPs at the lowest
possible cost, while remaining focused on the target market.
• The cost per GRP allows to compare the efficiency of the investment
on the targeted audience.
• For press, selectivity of the media is used instead of Reach
Media planning
media_buy
TV Media Planning
23. • Promise
• Proof / Evidence
• Promotion
• Main objectives
• CONTEXT
• OFFER
• TONE
• Problems to solve
• Regulatory
• Dispositif
• Retro planning
• Target / segments
• Tone
What is a creative brief…
Chart,
brand awareness,
brand positioning…
Creative Brief
24. 9 ways to improve your ad by DDB
• Show your product as large as possible • Include
the product name in the headline • Add in some
“news” about your product • Never use negative
words in headlines • Show people enjoying the
product • Make the logo as big as possible • Add
snazzy copy, bullets, and sales points • Always
localize ads, eg. make it American
24
26. Agency return and legal aspects
• Check: proposal must respect the brief
• Legal validation and regulation compliance is required
• Legal has important impact on a communication.
• One word sums up the relationship between "legal" and "marketing" NEGOTIATION
• Sometimes we can not avoid the legal requirements
• Best solution: apply the legal requirement with the biggest part of creativity
COMMU-
NICATION
LEGALCREATIVIT
Y
CONSTRAINTS
27. Conception:
1. Define the product to promote
2. Conception and integration in the
marketing plan
3. Define a budget
4. Realize a brief
Prepress
1. OK to engrave (BAG)
2. Photoengraving
3. OK to press (BAT)
Press start
1. Printing & BAR
2. Routing
3. Shaping
• Very processed to secure the investments
What is execution… The mailing
example
27Mailing descriptif technique
28. Printing
• 2 types of printing
– with plate
– without plate
to choose with plate depends on quality, quantity and cost
28
29. Providers consultation
Suppliers list
• According to the
specificities of your
need
• Benchmark other
subsidiaries
• RFI (Request For
Information) if
necessary
RFP preparation
• Stakeholders
identification for the
RFP Committee
• Tendering document
approval
• Selection criteria
Issue of the RFP
Request for proposal
• Non Disclosure
Agreement
• Issue of the RFP
including:
• Evaluation grids
• Answer sheet for
standardized replies
• Check lists
• Contract template
• Questions & Answers
33. ATL - From GRP to sales
Process
RetentionFollow-up
conversion
60,000
Issued forms
22,000
Received forms
20,000
contracts
100,000
Calls
100 million
Views
60%
issued 36%
received
90%
contractualized
0,1%
Calls
Communication
& media planning
efficiency
Sales
efficiency
Mix of one-step and 2-step subscription process
50% one-step and 50% 2-step
500 GRP/month 1st month
then 200-300 GRP/month
During 6 months mini
PROCESS
• Talk to the
audience
• Generate
awareness
• Grow interest
• Increase desire
• Push to action CUSTOMERS
33
34. BTL – From lead to customer
Improve the
conversion ratios at
every steps of the
funnel :
Lead
Prospect
Contact
Customer
Campaign design,
conception and
implementation
Campaign
analysis
View > Read/Listen > Desire > Contact > Request
Receive > Realize > Collect > Retain
View the message
Pay attention
to the content
Respond
34
39. Databases and Flows
Cost of acquisition: CAImage / Brand awareness / Promotion
Customers / Ex-customers
Split per segments
Profit
Service / Management / Data-mining
Partner / white label
database
Transformation
campaigns
Customer marketing
Loyalty
Prospect database
Acquisition
marketing
39
40. Web analytics
ONLINE
SEM
Ad Serving
Affiliate
Social Media
Email
Data
WebHouse
Data flows & Multichannel approach
OFFLINE
Decisioning &
Personalization
Web-CentricCustomer Centric
40
Personalized Email Real-Time Targeting
41. Test and learn
•Be pragmatic, simple and efficient
•Launch initiatives
•Don’t focus on the problems you may
not have
NOW
NEW
NEXT
Investment Split
42. TEST AND LEARN
• In order to learn, you have to take risks, you have to be patient…
• You will learn… over time
42
43. • Split the marketing plan execution from the testing process
• Building a test can be long and subject to vary in term of retro-
planning. It will now be disconnected from standard.
Test/Roll-out process
Workflow Targeting Execution Sending Reporting
Standard campaign : semi-automatization, KPI and trackers
Campaign determined in the marketing plan
Campaign manager 1
Test preparation Execution Targeting
Test
analysis
Test campaign : prepared separately with dedicated analysis
C.M.2
43
44. PMU
• Les produits en ligne du PMU ont bénéficié d’un haut niveau de
‘cross selling’ avec plus du tiers des nouveaux clients
‘paris sportifs’ ou ‘poker’ pariant également sur les courses
hippiques, dont la croissance des enjeux en ligne est de 20% sur
l’année.
44
47. Four C’s of Customer Loyalty
aptive, onvenience- seeker
ontented and ommitted.
• It is argued that “the model proposed in
the paper differentiates between those
customers that are inertial in attitude and
behavior, and those that have a positive
orientation”
47
52. The segment-centric marketing
organization
1. Every time you break out a new segment, you have to dedicate
resources to it.
2. The more specific a segment is, the more specific your marketing to
it can be — and, accordingly, the better you’ll perform within it.
53. “Tiger teams” for audience segments
53
The benefits of this segment team approach include:
• more focus for messaging and engagement with customers
• more continuity for customers, since all their touchpoints with the company
— search, social, email, web — maintain that targeted perspective in
harmony
• more agility as the team managing the segment is small and has end-to-
end control over their strategy and production — minimal coordination
overhead
• more experimentation as segment teams are
encouraged to tailor ideas to their audience and
can take risks that are relatively small in scale
• more learning for segment team members, who
get visibility to the entire lifecycle of customer
marketing from day one, constantly innovating
at each point
55. The 4 pillars for telesales efficiency
Reduce
Costs
Improve
Productivity
Ensure
Satisfaction
Mitigate
Risks
You need to balance those elements that may be contradictory between themselves
1. Use standardized reports to assess the
performance
2. Work on technology (dialer, IVR, …)
3. Implement lean and quality programs for continuous
improvement
1. Choose your model and structure the floor
2. Adapt the size of your teams with activity
3. Structure the activity and the floor
4. Run tenders regularly with procurement teams
1. Document and adapt your processes to your risks
2. Focus on compliance and legal constraints
3. Standardize your scripts and check your sales to
make sure you treat the customer fairly (TCF)
Work on employee and customer satisfaction
1. Develop leadership skills of your supervisors
2. Have strong training methods and programs
3. Make your staff happy
55
56. Topics For Staff For Customers
Why is their first
impression key?
What are they going to
say?
How long will they stay? More than the salary, providing a
career path, developing specific
reward programs with strong
learning curve and mentoring tools
will have an important impact on
your turnover
More than the price, the quality of the
relationship, the advice and the
responsiveness is a key element to
retain your customers
Have an employee referral
program and use it as a KPI for
employee satisfaction
Implement net promoter score to
measure the impact of your initiatives
Pay attention to materials,
welcome process, logistics,
headset, office & desk
configuration…
Your telemarketing staff is your customer
first impression. If they are happy, they
will exceed customer expectation and
provide wow effects
Happy staff = Happy Customers
56
57.
58. Architecture of a script
- High personalization in the introduction phase depending on customer
profile, segment and history
- Strong personalization of the offer + sales argumentation after
discovering then understanding customer needs and buying levers.
Introduction Discovery Argumentation Wrap-up Take Leave
Introduction
Segment A
Introduction
Segment B
Introduction
Segment C
Discovery
Main Q/A
Discovery
Q/A 2
Discovery
Q/A 1
Argumentation
OFFER X
X defined upon
Segment
And Discovery
Objection handling
PERSONALIZED
Upon Segment
And Discovery
Take-Leave
Standard compliant
with Brand spirit
Wrap-Up
Positive
Process 1
Take-Leave
Negative
Process 2
Offer
library
59. The funnel of the successful sales pitch
1. Identify
Introduce
yourself &
company
without taking
a breath
before your
next sentence
2. Get
attention &
interest
Use an
informative
statement that
combines
attention and
interest
3. Engage the
customer
Using informative
information &
asking some
questions blending
in a trial close or
two.
4.Create
desire
Position yourself
more as a
consultant than a
solicitor
5.Convince
The OK flows
easily with your
conviction for the
sales call
Ex (2):Our Company is
conducting water testing in your
area this month and I'm calling
to schedule a convenient time
for this 5-minute test to see if
your water results are similar to
the other homes tested in your
area."
Ex(3):
Client -"Is the water safe to drink?"
Phone salesperson - "It has tested
within safe limits, but many
contaminants were found. (Trial
Close) If you would like, I will send
out our free report on our findings
about contaminants found in your
area so far. We will also test your
water supply to see how it
compares."
Build the desire to a point
where conviction is received.
Ex (4) :
"On Tuesday and
Wednesday afternoon our
rep. will be testing on your
street between 5 and 6 PM.
We wanted you to know if you
hear a knock at your door that
it’s not a salesman, it’s just
us."
Initiate contact
• Get their attention
• Create relationship, empathy
Gather information
• Probe
• Questioning
• Detect needs, fears and worries
• Anchoring with intonation
Argumentation
• Main products features and benefits
• Value statements
• Presenting back and story-telling
• Inoculate against objections
• Raise alternative offers
Close
• Summarize
• Get formal agreement
60. Cheat sheet – Objection handling
View objections as an opportunity to strengthen your sale
Welcome, acknowledge, and resolve them.
Be careful that your tone remains calm and not defensive
Ask questions to get clarity and help you progress the sale.
Know your product and your competition
Always agree and then outweigh.
Objection Question
It’s more than I expected to pay If you can give me an idea of how much you were looking to pay then we can see what we can do for
that price. What price did you have in mind?
I need to think about it Of course. Have I provided you all the information in order to make your decision? What would help
you to make your decision if you would have more time? Our discount can be offered only today,
when would you like me to call you back?
It sounds very complicated Which bit is complicated? Where can I explain things more clearly?
I’m really not sure I need all
that...
From what I’ve described which aspects would you say were the “must haves”?
It’s not quite what I wanted What have I missed?
I’m just not sure... I want you to be sure what do you need to hear from me to be comfortable to buy today? Have you
understood all the benefits? Are those benefits interesting for you?
I need to discuss it with my
partner
Is there a time I could ring and talk to you both?
I’m going to have a look around
and might come back to you
What can I do now to help you make an informed decision?
It is too expensive Out framing is also a great tactic: simply ask a question for further clarification and offer 2
alternatives. For example, hit them with “are you concerned with the value of the product or your
current resources for funding?” Their answer will allow you to reposture if necessary.
61. Communication efficiency
• It has been proven that 70% of communication between people is non-verbal. This limits you to
the tools of 'voice and brain' to make the sale or appointment.
• Staying positive is a prerequisite for cold calling telesales. The most successful sales phone
scripts are influenced by a positive attitude. When people hear fear, anger or just plain boredom
they react with objections. On the other hand, it’s hard to shut down an enthusiastic positive
telemarketer.
Non-verbal
70%
Tone
20%
Words, Brain
10%The voice is driving energy, it reveals the
state of mind and the enthusiasm.
Use intonation to keep the customer
interest and illustrate the words: question
tone-up, command tone-down, statement
tone flat
The flow is used to reassure and make sure
you are understood.
The articulation is proving insurance.
SPEAK
63. Scopes
1. Research
– Conjoint analysis
– Market study
2. Surveys and enquiries
– Qualitative : focus groups, customer sastisfaction
(NPS: Net promoter scores)
– Quantitative
3. Database and mining
63Reibstein
64. Brand awareness
• – Notoriété assistée – Prompted awareness :
reconnaissance d’une marque à partir d’une liste
proposée aux personnes interrogées.
• – Notoriété spontanée – Spontaneous awareness :
citation d’une marque à l’évocation de la catégorie de
produits (ou du secteur d’activité).
• – Notoriété Top of mind – Top of mind awareness :
notoriété spontanée de premier rang. Se mesure par le
pourcentage de personnes qui citent spontanément une
marque, en première réponse.
64
65. Post-campaign analysis
• Scoring and mining: With
customer data and information
collected in the selection file, analysis
will be run in order to build a score.
Socio-demographics information,
data tags and behavioral information
will be used.
• Segmentation: on the longer run a
segmentation of the customer
database will be created in order to
identity the next best offer stream
and communication styles.
Gain chart
50%
80%
50% of the population
represents 80% of the
respondents
66. RFM Segmentation
• RFM is a method used for analyzing customer behavior and defining market segments. It is
commonly used in database marketing and direct marketing. If you don’t have RFM, it is
meaningless to consider any other kind of model.
Multidimensional testing
Frequen
cy 1
Frequen
cy 2
Frequenc
y 3
Frequenc
y 4
Recency
1
Recency
2
Recency
3
Recency
4
Monetary1
Monetary 2
Monetary 3
Monetary 4
Response
Rate
computation for optimal modelization
The combination of each criteria gives the score of
each cell – you need to determine the cut-off for
profitability
Recency - How recently did the customer
purchase?
Frequency - How often do they purchase?
Monetary Value - How much do they spend?
67. Aggregated
Customer
View
Datamart
Data
Warehouse
Databases
Repository
Data Management flows
67
Data Sources Data Management
DISTRIBUTION
(i.e. sales and services information)
Sales & Contacts History
Data about Prospects
Data about Customers
EXTERNAL DATA
(i.e. Partners’ database)
Demographics
Financials / Transactions
Contact History
Do not contact list
Survey / Questionnaire
Prior campaigns results
Phone, e-mail, …
INTERNAL
MANAGEMENT SYSTEM
Contracts
Demographics
Behaviors
Risks history
Survey / Questionnaire
Phone, e-mail, …
Segmentation
Scoring
Data Mining
Data Analytics / BI
software
Leads Generation
ETL software
Extract-Transform-Load
Reporting
Reporting Software
Sales Touch Points
Integrate tracking codes on all communication
for all touch points
