Katy Raines

CRM – just get
started!
Hovden, Sept 2013
About me
 Music

Graduate, Cambridge University

 Spent

15 years running Marketing departments in UK
theatres

 Consul...
CRM – Just get started!
 A reminder

of CRM

 The

changing marketing environment

 The

CRM cycle

 What
 The

CRM C...
A reminder of CRM
1.

Not all customers are equally valuable

2.

It costs 5 times more to acquire a
customer than keep an...
Frequency
1. All customers are not equally valuable
8+ times
per year

2%

5-7 times
per year

2-4 times
per year

Once
pe...
Retention
2. Keeping customers costs 5x less
New audiences

Retained customers

Lost / lapsed customers
Segmentation
3. Customers have different needs
2%
4%
26%

68%
% of bookers by frequency band

These people have
different ...
Ulster Orchestra,
Belfast
 ‘Old’

model

Were sending all their customer the same thing – a
large 32-page season brochure...
The changing marketing
environment
Digital

explosion = Consumers
bombarded with content

Growth

of tools and sites to ...
email content - relevant

Tailored to match
my previous
purchases
General
message
to
everyone
Web content - relevant
And what about Social Media?
Customer
‘tunes in’ at
various points

Organisation
Broadcasts messages
Social Media

Organis...
The results
– to build loyalty and affinity
by reflecting their needs back to them
with relevant (and personalised) conten...
The CRM cycle
New
customer

50%

Purchase

Purchase

Frequenc
y
Purchase

Purchase

Lapsed
customer
The CRM cycle – building blocks
New customer

What can you do
to welcome new
customers?
Purchase
Can you
recognise a new
c...
My local farm shop – seasonal
New customer
produce invited
Enquiry
New customers
to join the ‘veg-watch’
list – to be info...
The CRM cycle – another stage
Enquiry
New
customer
Purchase

Purchase

Frequenc
y
Purchase

Purchase

Lapsed
customer
French Gite aimed at young families
New customer
Enquiry
Nothing done with
enquirers who didn’t
book

New
customerFrequenc...
The CRM cycle – French Gite
Enquiry
New
customer
Purchase

Purchase

Frequenc
y
Purchase

Purchase

Lapsed
customer
Hotel near Legoland Resort,
Windsor
Enquiry
New
customer
Pre-visit email with all
details about my stay
Purchase

Post-vis...
What a good CRM programme can
deliver
 Increased
 Keeping

frequency from existing customers

more customers year on yea...
Building a picture of the customer
Purchasing
behaviour
Frequency
Recency
Types of product

Social media behaviour
Re-twee...
Customised communications
Product choices

Picture of
the
customer
Timing of
comms
Type of comms
Symphony Hall Birmingham

600

events per year

The

Customer

Mostly ‘one night’
shows

2200


seats

over ½ million
...
Symphony Hall Birmingham –
challenges
Too

much ‘choice’ and information for the
customer

Wide

range of events
The
Cus...
Symphony Hall Birmingham
 ‘Old’

model – one size fits all

Were sending all their customer the same thing – a
large 32-p...
Logo

Classical

Rock/Pop/Ent
ertainment

Jazz, Folk,
World,
Roots

Family
Classical

Logo

Rock/Pop/Ent
ertainment

Jazz, Folk,
World,
Roots

Family
Symphony Hall Birmingham
 ‘Old’

model – one size fits all

Were sending all their customer the same thing – a
large 32-p...
USUS CRM Project 2012-2015
 Working

closely with 6 USUS members who want to
focus on CRM


Kino Sør



Kilden



Dyre...
Building a picture of the customer
Purchasing
behaviour
Frequency
Recency
Types of product

Social media behaviour
Re-twee...
Dyreparken
Social media

Booking system
Website / CMS

Hotel bookings

The
Customer

Email software
On site services
Customised communications
Product choices

Picture of
the
customer
Timing of
comms
Type of comms
Customised communications
Product choices

Picture of
the
customer
Timing of
comms
Type of comms
Kragero Resort


Data analysis of booking database:



Identified Key segments:

Leisure

Business
Spa

Golf

Families

...
USUS CRM Project 2012-2015
 What
 How
 How

are we learning?

can you benefit from our learning?

can you get started, ...
USUS CRM Project 2012-2015
What are we learning?
Data
What

works?

Seeing

the bigger picture
What are we learning about CRM?
1. Data


It starts with good customer data capture



We can learn a lot just from look...
CRM: Just Get Started
1. Data
 What

data do you already have about your
customers?





Enquiries?
Bookings?
Value?
...
CRM: Just Get Started
1. Data
 How



could you improve your data collection?

Quantity
Quality
What are we learning about CRM?
2. Learning what works
 We

need to know what has worked

 We

need a ‘baseline’ positio...
CRM: Just Get Started
2. Learning what works
Comparing 2 email campaigns
Income per email sent (average)

All customers
Se...
CRM: Just Get Started
2. Learning what works
 Can

you measure the effectiveness of your
marketing activity?

 Can

you ...
What are we learning about CRM?
3. Seeing the bigger picture
 We

need to understand how CRM can deliver on
business perf...
CRM: Just Get Started
Seeing the bigger picture
Typical business measures
Business Performance


Total Sales (NOK)



To...
CRM: Just Get Started
Seeing the bigger picture
Business Performance

Marketing Effectiveness

Customer Engagement

Are we...
CRM: Just Get Started
Seeing the bigger picture
Business Performance


Total Sales (NOK)


Marketing Effectiveness


To...
Example – Business Performance
Average £
Customers Sales income per customer
5500
£345,000
£62.73

Customers
New Customers...
Example – Marketing Effectiveness
Marketing ROI
14.00
13.50

Marketing ROI

13.00

Total income

12.50

Total marketing sp...
Example: Customer Engagement
Frequency
8+ times
per year

2%

5-7 times
per year

2-4 times
per year

Once
per year

% of ...
Example: Customer Engagement
Retention

2010-11

% retention

2011-12

2012-13

43%

29%

30%

Average over 3 years = 34%
CRM: Just Get Started
Seeing the bigger picture
Business Performance


Total Sales (NOK)


Marketing Effectiveness


To...
CRM: Just Get Started
Next steps
 How


Follow the progress of the case studies – presentations at
future USUS events

...
Thanks!

Katy Raines
Partner, Indigo-Ltd

www.indigo-ltd.com
katy.raines@indigo-ltd.com
twitter: @katyraines
CRM - just get started by Katy Raines
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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