Marketing In Recession

Marketing Through the Recession: 6 Strategies to Acquire, Retain and Grow Profitable Customers Sallie Burnett President Customer Insight Group, Inc. [email_address]

Customer Insight Group, Inc. Acquisition Loyalty Migration Referral Retention Upgrade Win-back Data mining Market research Modeling Profiling Response analysis Segmentation Creative design and copy Digital marketing E-mail design Fulfillment Inkjet imaging Laser printing Lettershop Printing Print on demand Program management Website design and content Insight Strategy Execution Copyright  2009 Customer Insight Group, Inc.

Agenda
How are Companies Responding to the Recession
Six Tips and Strategies
Question and Answer
Copyright  2009 Customer Insight Group, Inc.

How are Companies Responding to the Recession?
Cutting marketing and communications budgets while expectations increase.
CFO’s are increasing demands for reporting, accountability and measurable results.
Shifting spend from branding and other forms of push marketing to measurable and relationship-based strategies such as search marketing, email marketing, lead nurturing, loyalty marketing and online communities.

How are Companies Responding to the Recession? “ If you’re in a room full of twenty people, and they’re all talking, all you hear is noise. But if 19 stop talking, suddenly the one person who’s still talking can be heard the loudest” Copyright  2009 Customer Insight Group, Inc.

How are Companies Responding to the Recession? Firms maintaining marketing budgets during recession significantly outperform their rivals in the following years. Source; McGraw Hill Study Copyright  2009 Customer Insight Group, Inc.

Cutting advertising in the short term doesn’t boost profits by much.
Source; Tony Hillier analysis of Profit Impact Marketing Study (PIMS) data 2001 Copyright  2009 Customer Insight Group, Inc.

During the recession recovery phase, companies that increase marketing yield long-term dividend in terms of profitability and market share.
Source; Tony Hillier analysis of Profit Impact Marketing Study (PIMS) data 2001 Copyright  2009 Customer Insight Group, Inc.

What is Customer Insight?
How do you know you have it?
Not something that is obvious or immediately apparent
Can be based on one data point or many
Grounded in customer understanding often rooted in observed anomalies
Clear or deep perception of the customer that you can act on to achieve business objectives
Not just the voice of the customer, instead using customer creatively for innovation
#1 Leverage Customer Insight to Create Competitive Advantage Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #1 Leverage Customer Insight to Create Competitive Advantage
Who is the customer?
+
What are the preferred channels of communication?
+
How often do they want to hear from you?
+
How can you meet more of their needs?
+
What stage is the relationship?
Deliver Value in Every Interaction Copyright  2009 Customer Insight Group, Inc.

Take a fresh look at your loyalty, new customer, retention, win-back, new mover, trigger programs, etc.
For each program look at the KPI of success
Determine if the programs are achieving business objectives
Identify changes that can be made to improve results
Prioritize based on costs, ease of execution, and expected bottom line impact
#2 Take Programs Off Auto Pilot Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #3 Track & Manage Customer Value Migration Significant Growth Opportunity. Losing Share of Wallet Stable, Room for Improvement Continue Focus on Retention Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #4 Proactively Manage Customer Life-cycle With Brand Value to the Customer Value to the Organization Unqualified Customer Prospective Customer Advocate Customer Repeat Customer Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #4 Proactively Manage Customer Life-cycle With Brand Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #4 Proactively Manage Customer Life-cycle With Brand Encourage immediate search… Offer an incentive to purchase… Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #4 Proactively Manage Customer Life-cycle With Brand Come back today! Benefits galore! Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #4 Proactively Manage Customer Life-cycle With Brand Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #5 Listen and Respond to Customer’s Needs 59% Most marketing and advertising has very little relevance to me. Source: Yankelovich Consumer Trust Study 14% Say companies use their personal information to send them advertisements that are relevant to their wants and needs. Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #5 Listen and Respond to Customer’s Needs Source: Double-Click Consumer Loyalty Survey 2Q 2007 Copyright  2009 Customer Insight Group, Inc.

Six Tips and Strategies #5 Listen and Respond to Customer’s Needs Relevant email campaigns drive 9 times more revenue and deliver 18 times more net profit than broadcast emailing. Copyright  2009 Customer Insight Group, Inc.

The NFL database is comprised of 75 different variables including demographics, the NFL Shop, the NFL Extra Credit Card; travel and hotels. Customers’ favorite teams are tagged and information is broken out starting with team affinity then subsequently based on purchase behavior.
#5 Listen and Respond to Customer’s Needs Source: Double-Click Consumer Loyalty Survey 2Q 2007 Copyright  2009 Customer Insight Group, Inc.

Starbucks
The company's shares dived 42% last year on signs that consumers were falling out of love with Starbucks.
Customer Insights lead the way in the solution:
A complete reinvention of brewed coffee in-store, that will be brought to life by baristas across the U.S., who will scoop and grind a new unique coffee blend, connecting customers to the early days of Starbucks;
The first phase of a Starbucks Card Rewards program, rewarding registered cardholders and providing unique new benefits when using their cards in Starbucks stores;
The launch of MyStarbucksIdea.com, Starbucks first online community, that takes the Starbucks Experience outside the store and enables customers to play a role in shaping the company’s future.
#6 Double Down on Best Customers Six Tips and Strategies Copyright  2009 Customer Insight Group, Inc.

Leverage Customer Insight to Create Competitive Advantage
Take Programs Off Auto Pilot
Track & Manage Customer Value Migration
Proactively Manage Customer Life-cycle With Brand
Listen and Respond to Customer’s Needs
Double Down on Best Customers

Sallie Burnett, President, Customer Insight Group, Inc. ph: 303.422.9758 e: sallie@customerinsightgroup.com www.customerinsightgroup.com Join the conversation at on our two blogs: http://www.customerinsightgroup.com/marketinglibrary/ http://www.customerinsightgroup.com/loyaltyblog/

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Marketing In Recession

by Sallie Burnett on May 14, 2009

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