CRM - just get started by Katy Raines

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Presentasjon CRM Katy Raines på Usus samling Hovden høsten 2013

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CRM - just get started by Katy Raines

  1. 1. Katy Raines CRM – just get started! Hovden, Sept 2013
  2. 2. About me  Music Graduate, Cambridge University  Spent 15 years running Marketing departments in UK theatres  Consultant since 2004, specialising in Customer Loyalty and data-driven marketing  Clients include Royal Shakespeare Company, Opera North, The Lowry, Symphony Hall Birmingham, Wales Millennium Centre, Ulster Orchestra  Now working with USUS on 4 year project to improve CRM effectiveness
  3. 3. CRM – Just get started!  A reminder of CRM  The changing marketing environment  The CRM cycle  What  The CRM Can deliver USUS project – what we’re learning – how to get started (if you haven’t already)  CRM
  4. 4. A reminder of CRM 1. Not all customers are equally valuable 2. It costs 5 times more to acquire a customer than keep an existing one 3. Customers have different needs, which need to be reflected in your marketing communications with them
  5. 5. Frequency 1. All customers are not equally valuable 8+ times per year 2% 5-7 times per year 2-4 times per year Once per year % of income in 1 year 60% 4% 26% 68% % of bookers in 1 year 25% 15%
  6. 6. Retention 2. Keeping customers costs 5x less New audiences Retained customers Lost / lapsed customers
  7. 7. Segmentation 3. Customers have different needs 2% 4% 26% 68% % of bookers by frequency band These people have different needs From these people
  8. 8. Ulster Orchestra, Belfast  ‘Old’ model Were sending all their customer the same thing – a large 32-page season brochure, costing £1 per issue  Return on investment 1.6:1   ‘New model’ Sent different customers different things  For 90% of the customers this meant sending them LESS information, but more RELEVANT  Return on Investment increased to 21:1 
  9. 9. The changing marketing environment Digital explosion = Consumers bombarded with content Growth of tools and sites to ‘aggregate’ and make sense of content for consumers to digest Expectation of content matched to need and preference NB. This is no longer a ‘nice to have’ – it’s essential!
  10. 10. email content - relevant Tailored to match my previous purchases General message to everyone
  11. 11. Web content - relevant
  12. 12. And what about Social Media? Customer ‘tunes in’ at various points Organisation Broadcasts messages Social Media Organisation Sends direct messages Customer CRM / Direct Marketing They are different tools for different purposes
  13. 13. The results – to build loyalty and affinity by reflecting their needs back to them with relevant (and personalised) content Opportunity – customers will ignore your content as it isn’t relevant, and you will lose them Threat
  14. 14. The CRM cycle New customer 50% Purchase Purchase Frequenc y Purchase Purchase Lapsed customer
  15. 15. The CRM cycle – building blocks New customer What can you do to welcome new customers? Purchase Can you recognise a new customer? Frequency Do you know a customer’s purchasing patterns? Purchase What can you do to increase the frequency they buy from / visit you? Purchase Purchase How do you know when someone has lapsed? Lapse What can you do when they go?
  16. 16. My local farm shop – seasonal New customer produce invited Enquiry New customers to join the ‘veg-watch’ list – to be informed when different produce New available Frequency customer Regular updates via email and social Purchase Purchase media: - Asparagus season was 3 weeks early Frequenc in 2011 - Fruit season was y non-existent in 2012 Purchase - Vouchers for Purchase redemption to monitor Lapse Requests to Lapsed update mailing customer list preferences
  17. 17. The CRM cycle – another stage Enquiry New customer Purchase Purchase Frequenc y Purchase Purchase Lapsed customer
  18. 18. French Gite aimed at young families New customer Enquiry Nothing done with enquirers who didn’t book New customerFrequency Fantastic re-purchase Purchase1/3 of families Purchase rates: came back at least one more year – many Frequenc 5 every year for years y Purchase Purchase Lapse Built-In lapse Lapsed rate – when customer kids >6
  19. 19. The CRM cycle – French Gite Enquiry New customer Purchase Purchase Frequenc y Purchase Purchase Lapsed customer
  20. 20. Hotel near Legoland Resort, Windsor Enquiry New customer Pre-visit email with all details about my stay Purchase Post-visit email to Purchase check on my experience Frequenc y Purchase Purchase Lapsed customer
  21. 21. What a good CRM programme can deliver  Increased  Keeping frequency from existing customers more customers year on year  Reduced marketing costs and improved return on investment  Brand affinity and loyalty  Improved customer insight to aid business planning and programme/product development
  22. 22. Building a picture of the customer Purchasing behaviour Frequency Recency Types of product Social media behaviour Re-tweets Likes The Customer Attitudes and preferences Stated comms preferences Stated product preferences Feedback / comments Response to comms Purchase Clicks Timing Type Profile Geography Demographics – age, income etc.
  23. 23. Customised communications Product choices Picture of the customer Timing of comms Type of comms
  24. 24. Symphony Hall Birmingham 600 events per year The  Customer Mostly ‘one night’ shows 2200  seats over ½ million audiences each year
  25. 25. Symphony Hall Birmingham – challenges Too much ‘choice’ and information for the customer Wide range of events The Customer changing daily – often going on sale at late notice Events Customers are annoyed if things sell out before they’ve heard about them
  26. 26. Symphony Hall Birmingham  ‘Old’ model – one size fits all Were sending all their customer the same thing – a large 32-page season brochure, every 2 months The  Return on investment average 1.5:1  Customer  ‘New model’ Sent different customers different things  First round of communications for Classical Music  Return on Investment increased to 9:1 
  27. 27. Logo Classical Rock/Pop/Ent ertainment Jazz, Folk, World, Roots Family
  28. 28. Classical Logo Rock/Pop/Ent ertainment Jazz, Folk, World, Roots Family
  29. 29. Symphony Hall Birmingham  ‘Old’ model – one size fits all Were sending all their customer the same thing – a large 32-page season brochure, every 2 months The  Return on investment average 1.5:1  Customer  ‘New model’ Sent different customers different things  First round of communications for Classical Music  Return on Investment increased to 9:1 
  30. 30. USUS CRM Project 2012-2015  Working closely with 6 USUS members who want to focus on CRM  Kino Sør  Kilden  Dyreparken  Kragero Resort  Canal Street Jazz and Blues Festival  Grimstad Bys Museums  Reporting back and showing progress to USUS Cluster as we go along
  31. 31. Building a picture of the customer Purchasing behaviour Frequency Recency Types of product Social media behaviour Re-tweets Likes The Customer Attitudes and preferences Stated comms preferences Stated product preferences Feedback / comments Response to comms Purchase Clicks Timing Type Profile Geography Demographics – age, income etc.
  32. 32. Dyreparken Social media Booking system Website / CMS Hotel bookings The Customer Email software On site services
  33. 33. Customised communications Product choices Picture of the customer Timing of comms Type of comms
  34. 34. Customised communications Product choices Picture of the customer Timing of comms Type of comms
  35. 35. Kragero Resort  Data analysis of booking database:  Identified Key segments: Leisure Business Spa Golf Families Couples Different email content to each segment  Has it worked?
  36. 36. USUS CRM Project 2012-2015  What  How  How are we learning? can you benefit from our learning? can you get started, or move on to the next stage?
  37. 37. USUS CRM Project 2012-2015 What are we learning? Data What works? Seeing the bigger picture
  38. 38. What are we learning about CRM? 1. Data  It starts with good customer data capture  We can learn a lot just from looking at the data Canal Street Jazz & Blues Festival Residents Day trippers Overnights 17% 20% 11% 25% 10% 73% 70% 2011 2012 12% 63% 2010
  39. 39. CRM: Just Get Started 1. Data  What data do you already have about your customers?     Enquiries? Bookings? Value? Preferences?  How   do you use this data now? To understand more about your customers and inform your marketing activity (eg. Canal St) To target them with more relevant marketing communications (eg. Kragero Resort, Kino Sør)
  40. 40. CRM: Just Get Started 1. Data  How   could you improve your data collection? Quantity Quality
  41. 41. What are we learning about CRM? 2. Learning what works  We need to know what has worked  We need a ‘baseline’ position  In many cases we don’t have the systems / processes in place to do this  It doesn’t have to be complicated
  42. 42. CRM: Just Get Started 2. Learning what works Comparing 2 email campaigns Income per email sent (average) All customers Segment 1 Segment 2 Segment 3 average (all) Unsegmented Segmented (old) (new) £0.17 £0.22 £1.57 £0.23 £0.17 £0.36 Baseline position Comparison Has it worked? 112%
  43. 43. CRM: Just Get Started 2. Learning what works  Can you measure the effectiveness of your marketing activity?  Can you compare the success of different activities?  What  How could you put in place to do this? would you create the ‘baseline’ measure(s) to compare against?
  44. 44. What are we learning about CRM? 3. Seeing the bigger picture  We need to understand how CRM can deliver on business performance  We need to SHOW others (internally) why a CRM focus will pay off in the LONG term
  45. 45. CRM: Just Get Started Seeing the bigger picture Typical business measures Business Performance  Total Sales (NOK)  Total Customers  Total Marketing Spend
  46. 46. CRM: Just Get Started Seeing the bigger picture Business Performance Marketing Effectiveness Customer Engagement Are we selling more / growing? Is our marketing spend achieving more? Are our customers more engaged with us / our brand?
  47. 47. CRM: Just Get Started Seeing the bigger picture Business Performance  Total Sales (NOK)  Marketing Effectiveness  Total Marketing Spend Total Customers   Customer Frequency % sales from retained  Customer Retention customers vs new  Marketing ROI (return customers on investment)  Customer Engagement % customers retained vs new
  48. 48. Example – Business Performance Average £ Customers Sales income per customer 5500 £345,000 £62.73 Customers New Customers Retained customers Income New Customers Retained customers Average £ per customer £136.36 30% 65% £31.17 70% 35% New Customers Retained customers
  49. 49. Example – Marketing Effectiveness Marketing ROI 14.00 13.50 Marketing ROI 13.00 Total income 12.50 Total marketing spend 12.00 11.50 11.00 2008-09 2009-210 2010-11
  50. 50. Example: Customer Engagement Frequency 8+ times per year 2% 5-7 times per year 2-4 times per year Once per year % of income in 1 year 60% 4% 26% 68% % of customers in 1 year 25% 15%
  51. 51. Example: Customer Engagement Retention 2010-11 % retention 2011-12 2012-13 43% 29% 30% Average over 3 years = 34%
  52. 52. CRM: Just Get Started Seeing the bigger picture Business Performance  Total Sales (NOK)  Marketing Effectiveness  Total Marketing Spend Customer Engagement  Customer Frequency % sales from retained  Customer Retention customers vs new  Marketing ROI (return customers on investment)  Total Customers  % customers retained vs new + by campaign + by segment
  53. 53. CRM: Just Get Started Next steps  How  Follow the progress of the case studies – presentations at future USUS events  How    you can benefit from the USUS project: you can get started or move forwards Take a ‘self-assessment’ of your CRM capability Complete our ‘CRM Basic’ Toolkit Talk to your USUS Account Manager
  54. 54. Thanks! Katy Raines Partner, Indigo-Ltd www.indigo-ltd.com katy.raines@indigo-ltd.com twitter: @katyraines

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