Relationship Marketing Explained Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

What is Relationship Marketing? It emphasises customer retention and satisfaction, rather than a dominant focus on point-of-sale transactions. (1) “ The sale merely consummates the courtship, at which point the marriage begins. The quality of the marriage determines whether there will be continued or expanded business, or troubles and divorce.” (2) Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

The Five Steps of Relationship Marketing Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

attract > engage > analyse and profile > target > build a relationship attract

attract > engage > analyse and profile > target > build a relationship engage

attract > engage > analyse and profile > target > build a relationship analyse & profile

attract > engage > analyse and profile > target > build a relationship target

attract > engage > analyse and profile > target > build a relationship build a relationship

Defensive marketing Reduce customer turnover Increase customer loyalty Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Defensive marketing

Reduce customer turnover

Increase customer loyalty

Offensive marketing Obtain new customers Increase customer purchase frequency Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Offensive marketing

Obtain new customers

Increase customer purchase frequency

The four pillars of Relationship Marketing Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

infrastructure > people > intelligence > process infrastructure

infrastructure > people > intelligence > process people

infrastructure > people > intelligence > process intelligence

infrastructure > people > intelligence > process intelligence

infrastructure > people > intelligence > process process

Relationship Marketing Strategies Change focus Think about your weaknesses Stay in contact Provide value Show appreciation Be responsive Grow and adapt Train and monitor Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Change focus

Think about your weaknesses

Stay in contact

Provide value

Show appreciation

Be responsive

Grow and adapt

Train and monitor

Relationship Marketing Strategies Encourage registration Ask more Allow choice of format Allow choice of frequency Allow choice of content Track user interaction Reward customer loyalty Encourage recommendation Encourage feedback Respond quickly Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Encourage registration

Ask more

Allow choice of format

Allow choice of frequency

Allow choice of content

Track user interaction

Reward customer loyalty

Encourage recommendation

Encourage feedback

Respond quickly

Relationship Marketing in action Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Vue Overview UK’s leading operator of modern multiplex cinemas with more than 600 screens that attract over 32 million customers every year MMS is digital comms partner, charged with overhauling all digital channels Objectives are to consistently: Retain high frequency and value customers (increase average purchase value) Identify and attract potential high value (profitable) customers Encourage existing and potential high value customers to purchase online Maximise advertising and sponsorship revenue by creating a value from the customer insights available Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

UK’s leading operator of modern multiplex cinemas with more than 600 screens that attract over 32 million customers every year

MMS is digital comms partner, charged with overhauling all digital channels

Objectives are to consistently:

Retain high frequency and value customers (increase average purchase value)

Identify and attract potential high value (profitable) customers

Encourage existing and potential high value customers to purchase online

Maximise advertising and sponsorship revenue by creating a value from the customer insights available

Vue Profiling A typical Vue customer profile – Londoners General Mostly single customer households Aged 18-44 Fairly evenly split by gender Living as singles or married independents (no children) Tend to visit more than the cinema closest to their home Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

A typical Vue customer profile – Londoners

General

Mostly single customer households

Aged 18-44

Fairly evenly split by gender

Living as singles or married independents (no children)

Tend to visit more than the cinema closest to their home

Vue Profiling A clear understanding of profit margins Access to ticket sales data crucial Assessing current value (spend) Potential value modelling Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

A clear understanding of profit margins

Access to ticket sales data crucial

Assessing current value (spend)

Potential value modelling

Vue targeting – value focus Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Vue deployment – email channel Dynamic ( Personalised ) Content Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission. Registration Confirmation Film Times Promotions Online Ticket Booking Confirmation Reactivation 20 content targets, 5 audience Segments = 1,860,480 combinations

Dynamic ( Personalised ) Content

Vue deployment – email channel Initial contact or re-contact Members Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Vue deployment – email channel Initial contact or re-contact Members Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Vue Activity Summary Personalised content Customer lifecycle management Triggered messaging Functional Event based Transactional Lifecycle Predictive modelling Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Personalised content

Customer lifecycle management

Triggered messaging

Functional

Event based

Transactional

Lifecycle

Predictive modelling

Vue Objectives Review Objectives/Result: Retain high frequency and value customers Lower churn rate achieved, increase in ticket purchase frequency and increased the average spend Attract potential high value customers Higher sign up in key regions Encourage existing and potential high value customers to purchase online Improved ticket sales online (42% incr. 08/09) plus increased traffic prior to in cinema purchase Maximise advertising and sponsorship Ticket alerts driving direct sales and second sell from cross sell opportunities, now able to tap local area marketing as well as broad reach Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Objectives/Result:

Retain high frequency and value customers

Lower churn rate achieved, increase in ticket purchase frequency and increased the average spend

Attract potential high value customers

Higher sign up in key regions

Encourage existing and potential high value customers to purchase online

Improved ticket sales online (42% incr. 08/09) plus increased traffic prior to in cinema purchase

Maximise advertising and sponsorship

Ticket alerts driving direct sales and second sell from cross sell opportunities, now able to tap local area marketing as well as broad reach

Relationship Marketing Summary Improves customer retention Reduces cost of marketing Identifies priority customers Word of mouth A customer for life Fewer competitors Provides advertising opportunities Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.

Improves customer retention

Reduces cost of marketing

Identifies priority customers

Word of mouth

A customer for life

Fewer competitors

Provides advertising opportunities

Questions? Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.