Marketing and Customer Care for Credit UnionsPresentation Transcript
Marketing and Customer Care– “Reaching out to the widercommunity – Meetingmembers needs anddemands”By Chris Gibson,Marketing andCommunications ManagerandNandini Das, Marketingand CommunicationsOfficer
PART 1The Marketing Strategy
Part 1: The marketing strategy1. Introduction2. What is marketing?3. Planning a marketing strategy
Our experience• Worked in marketing and communications for over 8 years mainly in not-for-profit/public sector• Learnt from making mistakes as all good marketing professionals have• Jack of all trades, master of none – not strictly true but…• Have worked on the All Wales Credit Union Support Programme for the last year – that‟s the extent of our credit union knowledge but we‟re learning fast!• Your input today will make this session a success
Your experience• What have been your marketing successes?• What hasn‟t worked so well?• What are the main barriers you face to recruiting new and retaining existing customers?
What is Marketing?“Marketing is the management process for identifying,anticipating and satisfying customer requirementsprofitably”- CIM definition
What is marketing?• Not just advertising and/or selling• Helps you interpret your customer wants and needs and match or exceed them• The marketing process is central to the business performance of your organisation• It provides you with the best possible chance to survive in a competitive market place
This is why effective marketing is especially important forcredit unions...
A marketing strategy is one part of the bigger picture• The marketing strategy focuses on markets and customers and is just one part of business strategy.• Business strategy takes a broader view that includes other business functions such as manufacturing and operations, finance, quality, purchasing and supply chain, and information and communication technology.• For example, a business objective may be to increase sales. Marketing objectives to achieve this would be to reach new customers, promote repeat buying among existing customers and launch new products.
Marketing strategy• A marketing strategy is needed to help an organisation focus on their most fundamental requirements… Research Analyse Other factors Identify that influence needs and attitudes to purchasing customers preferences promotion decisions
Marketing strategy: The processMarketing Objectives, Audience Channels SWOT Marketing plan Messaging Audit targets, KPIs segmentation
Marketing strategy: The marketing audit• Detailed and on-going investigation of the market and its sub markets or segments• Look at the social, political, economic, cultural and technological trends which are shaping the market• Reflection of your organisation‟s own position within the market• Ensure resources can be marshalled to enable your organisation to change or influence the market
Marketing strategy: The marketing plan• Define objectives, targets and performance measurements• Within budget!• The marketing strategy should then be reflected in a specific plan of action• This is not fixed – it should be revised and updated throughout the year
Marketing strategy: Mission statement The Social Investment Business’• A mission statement mission statement: should be a definition of 1. To have a transformative effect on the organisation, what it the sector – strengthening the sector at both the organisational does and for whom and strategic level, so that it is more sustainable and valued in• Must provide direction public service delivery 2. To bring more money into the without restricting sector, to meet the high demand for social investment and to support opportunities this with knowledge and expertise• Must reflect needs of the 3. To be a thought leader for social investment, based on our target market demonstrable success in helping civil society organisations of all sizes do more of what they do best
Marketing strategy: Values• Values should both inspire and guide employees in acceptable behaviours• Values are about „walking the talk‟ and should be Clearly articulated and communicated Timeless Rewarded when behaviour matches values Followed by everyone in the organisation
Marketing strategy: Helpful tools• Perceptual maps - a diagrammatic technique that attempts to visually display the perceptions of customers or potential customers• Portfolio analysis - An analysis of elements of a companys product mix to determine the optimum allocation of its resources.
Marketing strategy: Perceptual maps [Practical]
Part 2: Audience/customer segmentation1. Audience segmentation2. Customer profiling3. 5 steps to customer segmentation
What is audience segmentation?• “Mass personalisation”• Smaller the organisation the easier it is to provide a personal and bespoke service• Grouping customers allows you to continue to offer a high level of value and service to customers as you grow• Effective segmentation can avoid energy being wasted on undifferentiated offerings that fail to please anyone.
Why is audience segmentation important?
Why is customer segmentation important?• No customers are the same• Meet the needs of large numbers of customers If you try to• Maintain/increase profits as business please grows everyone• Retain customers by providing products and services specifically for them you‟ll• Communicate messages relevant to your end up target audience pleasing• Avoid competition from larger no one competitors by focussing on specialist needs
Data - “Data is the new oil”• Get data and use it!• Only relevant data• Even old data can be useful• Use existing customer information where possible• How to get new data? E.g. Newsletter sign up for new and existing customers, competitions for new customers, events etc.• Data Protection legislation - http://www.theidm.com/marketing-training/courses/data- protection-in-practice/
How to segment your audience – 5 steps1. Establish which customers are profitable2. Profile your customers3. Define customer groups4. Decide which customer groups you will target5. Compile a target list of prospective customers
Step 1: Establish which customers are profitable[Practical]• Use your own experience and knowledge• When evaluating customer proﬁtability, think of the 80/20 rule (80% of the proﬁts are produced by top 20% of proﬁtable customers and 80% of the costs are produced by top 20% of unproﬁtable customers)• Profitable customers may be those that save regularly, take out regular loans and repay those loans – look after those customers!
Step 2: Profile your customers [Practical]• How do they use your financial services or products?• How and how often do they use your financial services or products?• Are they looking for a particular benefit that your service or service product?• How do they live their lives and does that reflect why they buy your products or services?• Is it, where they are based, live or work?
Customer profiling• Determining which customers are profitable• Are they „good‟ for the business• What are the characteristics of those customers• “Profiling”• Attract those customers
Example of „profiling‟ – Car manufacturerUsage NeedsRunning about in cities and towns Economy, small size, limited luggage capacityFamily/passenger Seating capacity, carrying luggage capacity, safety, economy, priceBusiness Status, appearance and finish, reliabilityLeisure driving Appearance, sporty, speedLocal deliveries Carrying capacity, and courier economy, reliability, security
Step 3: Define customer groups [Practical]• Identify one or more customer groups• List a number of groupings that have common characteristics• Look at the services you are currently offering• Do they appeal to these customer groups• If not > product development
Step 4: Decide which customer groups you will target[Practical] Objectives Grouping A Grouping B• Should be able to satisfy their needs with the same marketing mix Few 1 2• Group should be unique and react competitors specifically to the marketing mix you offer Potential for 2 1 higher• It should be expressed in clear terms margins that correlate to the purchasing Growth 2 3 decision potential• It should be identifiable – you can Mainly large 1 3 find data on this group organisation• The group should be large enough to s cover fixed costs Total 6 9
Step 5: Compile a target list of prospective customers[Practical]• You now need to find your new prospects• Use your own data• Collect new data• Buy a list from a commercial source• Decide on the messaging and marketing mix appropriate to your target audience
PART 3Understanding your customer
Part 3: Understanding your customer1. Customer service2. Customer behaviour3. Talking to your audience4. Messaging
Customer service is integral to an effective marketingcampaign“Customer Service is what your business delivers toachieve customer satisfaction. Excellence in customerservice, using the idea of relationship marketing, can helpyou retain customers.”The Chartered Institute of Marketing
From „transactional‟ marketing to „relationship marketing‟• Marketing has moved from „transactional marketing‟ to „relationship marketing‟• Relationship marketing will help ensure customers are Less likely to go to your competitors It is said that it costs More satisfied, therefore more likely to up to 10 times as recommend you to others much to win a new customer than to Less likely to tell others about bad keep an existing one” experiences Focus on those with highest potential lifetime value• A happy customer also leads to the added bonus that your staff will feel good!
4 steps to improving customer service1. Identify which of your external customers are the most valuable2. Identify your internal and external customers3. Find out what level of service your customers want4. Develop customer service standards and a programme to provide customer satisfaction and help build loyalty
Step 1: Identify which of your external customers are themost valuable• Prioritise the level of customer service you offer• Develop a profile so that you can target more new customers in the profitable groups.• The lifetime value of different customer groups will differ, as will the expectations of these groups.
Step 2: Identify your internal and external customers• Identify all the „internal customers‟ involved in getting your product or service to the end customer• Ensure they all understand the impact they have on others in this „chain‟• The service given to other parts within your organisation will also impact on the level of service given to the external customer
Step 3: Find out what level of service your customers want• Carry out customer satisfaction surveys to identify an appropriate level of service for each• Areas to check include Quality of service Accuracy of service Promptness of response Satisfaction with facilities Staff attitude and behaviour Complaint handling• Equivalent staff surveys are also useful > happy staff = happy customers!
Step 4: Develop customer service standards and a programme toprovide customer satisfaction and help build loyalty• Develop customer service standards that reflect the findings in your survey results• Even for a small business, a few basic standards will contribute to better customer service• Some pointers: Involve customers and staff, state standards clearly and document them, link standards to company goals, make them achievable and easy to understand, develop a culture, review standards…
Understanding your customer• Understanding customers is the key to giving them good service. To give good customer care you must deliver what you promise.• Good customer service can positively effect customer loyalty• Three key ways to understand your customer1. put yourself in their shoes and try and look at your business from their point of view2. collect and analyse data in order to shed light on their buying behaviour3. simply to ask them what they think
Customer Behaviour: Is your product any use to me? Recognise Search for Evaluation Use product Need or information all options Purchase or service Problem or solutionYour customer has a problem.• Do you know what it is?• Do you know how to solve it?• Does your solution really work?• Can you do it better than your competition?• Tell them what to do about their problem
Let your messages do the talking• Mission statement• Tagline• The elevator pitch• Emails• Phone• Sales and marketing material (leaflets, website)• Press releases
Messaging: Talking but more importantly listening to youraudiences• Many methods you have for learning about customers (surveys, focus groups, phone questionnaires)• Sometimes the simplest approach is just to talk to them!• Some organisations are afraid of what theyll find when engaging customers directly• Listening to your customers will provide you with the tools to speak directly to their wants and needs
A snapshot of what the public think of credit unions?The below comments were posts made after seeing the Dragonsavers video:• Be great if everyone in Britain used credit unions instead of high street banks. Peoples money being used as it should be, not being gobbled up in the dark arts , corruption, charges and bonus payments of the mainstream financial system.• I like the idea of CUs and looked into joining my local CU. However, I found it very hard to contact them by phone and the only weekly opening they have is during working hours. I know that deposits at CUs are protected by the deposit protection scheme just like banks but Im not sure Im comfortable with depositing money where I cant get it back easily.• I see from the dragonsavers website that loans charge 28% apr - that doesnt seem too affordable to me.• and the interest / dividend on savings is only 1.5%, plus savings require 7 days notice for withdrawal.• he point from the video was that although the credit union offers an alternative to higher interest loans, loans arent really their main focus. It is the community aspect, the volunteering, the education of its members in better personal finance and so on that is worthy of investigation.• There are many credit unions who offer (more or less) full banking facilities to their members; after all why should someone not have access to their money, in the way that a bank customer has access, because they are on low income and cannot get a bank account.• Its way more affordable than the 4000% apr - and more - that payday loan companies such as Wonga charge.• CUs more than just lending money. Theres the community aspect, the fact that they have no fat-cat executives and shareholders.
Messaging: define your USP• Unique Selling Proposition• Helps customers save time by defining what makes your product or service different• Can be used for every product or service
Messaging: 6 tips to forming an effective marketingmessage [Practical]1. Capture the attention of your target market with a headline that clearly defines who you are talking to. If you are selling to retirees your headline might be something like, "If you are 65 or older.“2. Identify the problems, symptoms, issues, needs and wants of your target market. You must start with where they are and then move them to the action you want them to take. To continue our example, if you are looking for retired people to volunteer time to a cause your sub-head might read, " And looking for a way to make a difference in the lives of others".3. Provide a brief description of the product. This is the features of your product or service. Be sure you describe features that matter to the target market you are communicating with and that you describe them from the target markets prospective. In other words, talk about what your customer is buying - not what you are selling.4. Describe the benefit and the value that the customer will derive from purchasing your product or service (or from taking the action you want them to take). Again these benefits must be pertinent to the customer group you are selling to.5. Give your message credibility. This could include testimonials, case studies etc.6. Specifically state the action you want the recipient of your message to take. For example, "Pick-up the phone now and call…to register" is much more likely to lead to action than simply giving a telephone number and assuming that if the person wants to register they will call the number. Whenever possible, you will also want to offer multiple ways for people to take action (i.e. phone, email, fax, regular mail, and website).
PART 4The marketing mix
Part 4: The marketing mix1. The 7 P‟s2. Routes to market
Marketing mix – 7 P‟s for the service industry Physical Evidence Promotion Place Price People Product Process
Physical Evidence• Physical environment refers to all the tangible, visible touch points that your customer will encounter before they sign up• The customer has an opportunity to make judgments on the organisation• Customers will make perceptions based on their sight of the service on offer which will have an impact whether they make a positive or negative decision
Physical Evidence• Smart• Run-down• Interface• Comfort• Facilities• SecurityIf your premises are not up to scratch, whywould the customer think your service is?
Place• Where the customers come to buy the product must be appropriate and convenient for the customer• Right time, right place, right quantity etc.• Delivery performance have been shown to be one of the most important criteria when choosing a supplier• Place also refers to how you display your product to a consumer• Invert expectations!
Place• Retail• Wholesale• Mail order• Internet• Direct sales• Peer to peer• Multi channel
Place – Recreating your „shop‟ onlineYour Website• Dressing the shop: Look and feel• Stock room: content is king• Stacking the shelves: Organising your content• Shop floor: Determining functionality• Signage: Helping your customers find you• CCTV: What are your customers doing?
Place – Organising your web contentLife isn’t easy –5 top tips to make life easier for your users• Create a clear visual hierarchy• Take advantage of conventions• Break pages into clearly defined areas• Make things obvious and clickable• Minimise noiseLet‟s talk about navigation
Place – What should your website do?Convert!1. Get people to the site: SEO, banner ads, PPC, affiliates, targeted emails, blogs, social media, offline advertising, press coverage, point of sale promotion, flyers2. Persuade them to take the desired action: understanding buyer behaviour, clear call to action3. Build a lasting relationship to increase the lifetime value of the customer: earn their trust, anticipate their needs, reward them
Place – Finding your website• SEO or Search Engine Optimisation• Pay per click advertising• Affiliate or referral traffic
Website – example
Website – example
Website – example
People• Anyone that comes into contact with your customers will make an impression• Can have a profound effect – positive or negative• Brand reputation rests in the hands of your employees/volunteers• Trained, motivated with a good attitude!
People• Get the right people for the job• Customers cannot often separate the product or service from the staff member who provides it.• Level of sales support and advice provided by a business is one way of adding value to your offer• Which products account for the highest percentage of sales? Are you offering adequate after sales support? Are you adding value to those products?
Process• The process of giving a service, and the behaviour of those who deliver are crucial to customer satisfaction “I don‟t care how• Think – do customers have to your business runs, I wait? Are they kept informed? just want your Are your people helpful? Is your service efficiently carried systems to work!” out? Do your people interact in a manner appropriate to your service?
Product• Find out if there is a market for your product before you offer it• What do your customers either need or want?• Needs to have the right level of quality for now and in the future• Research - talk to your customers, use simple questionnaires, online survey tools etc.
Product• The product must have value “Why not try our to the customer not perceived Rolls Royce?” value attached by the organisation creating the product• It does not have to be tangible, it can be a loan or a savings account for example “But all I wanted• You should have systems in was a 1982 Lada!” place to regularly check what your customers think of your product• Don‟t go too far with product development!
Price• A product is only worth what customers are willing to pay for it• A smaller business can compete with larger businesses by providing extra services or details that offer customers better value for money• Thinking of price as „cost‟ to the customer helps to underline its importance• Price positions you in the market place – the more you charge, the more your customer will expect• Existing customers are less sensitive about price than new customers – a major reason for looking after them!
Promotion• Promotion is the way a company communicates what it does and what it can offer customers.• It includes activities such as branding, advertising, PR, corporate identity, sales management, special offers and exhibitions.• Promotion must gain attention, be appealing, tell a consistent message and above all else give the customer a reason to choose your product rather than someone else‟s
Promotion• Good promotion is not one-way communication – it paves the way for a dialogue with customers• Promotion should communicate the benefits that a customer obtains from a product, not just the features of the product• Whatever form your promotion takes, it should grab the attention of your customers. It should be easy to read and enable the customer to identify why they should buy your product
Promotion• Think of the most cost effective and value driven promotional tools• For example – a brochure may be an obvious choice but is not necessarily the best way of promoting your business• Once its printed, its fixed• A more cost effective alternative is to produce a folder with inserts, which can be customised to the bespoke requirements of your customer group
Promotion: Routes and strategies• Advertising • Special offers• Leaflets/posters • User trials• Direct mail • Free gifts• E-mail marketing • Competitions• Social Media • Joint ventures• Events • Endorsements
Advertising - examples
Advertising - examples
Advertising - examples
Advertising - examples
Advertising – 10 tips [practical]1. Go after your target audience2. Highlight your competitive advantage3. Establish an image4. You have to spend money to make money5. Don‟t allow your budget to run your advertising campaign6. Advertise in the right places7. Diversify8. Dont try to be everything to everyone9. Test your ads in advance10. Monitor your ads
E-mail marketing1. Get permission2. Plan your campaign3. Call to action4. Links5. Subject line6. Design7. Targeting8. Experiment9. Deliverability10. Measurement
Social Media• Twitter• Facebook• YouTube• Flickr• Prezi• Slideshare• SoundCloud
Q and A• Anything we haven‟t covered that you would like us to address?
Final sessionPractical: planning yourfuture marketing strategy
Thank you...• You can contact either Chris or Nandini on the business cards in your pack• If you ever want some advice, don‟t hesitate to contact us.