Successful CustomerCommunications Strategies in 8 steps and 2 Case Studies Presented By: David Azulay – The Kern Organization Judy Mitchell – The Kern Organization Dan Ferguson – DIRECTV Michelle Degen– Clearwire
Introducing Our Panelists David Azulay Judy Mitchell Dan Ferguson Michelle Degen Senior Vice President Vice President Client Services Senior Director of Marketing Marketing Manager Client Services The Kern Organization DIRECTV Clearwire The Kern Organization2
This may seem simple, but you need to give customers what they want, not what you think they want. And, if you do this, people will keep coming back. - John Ilhan, Entrepreneur and Founder of Crazy Johns Mobile Phone (Australia) Companies that focus on building loyal relationships… are better positioned to remain strong. - Bain & Company 3Bain & Company. "Cost-Cutting Ideas for Now That Wont Impair Clients Later." Tennessee Society of CPAs. Accounting Office Management & Administration Report, June 2009.
Consider the cost of serving a long- standing customer versus the cost of courting a new one… 5% increase in customer retention produces more than a 25% increase in profit 4Bain & Company. "Cost-Cutting Ideas for Now That Wont Impair Clients Later." Tennessee Society of CPAs. Accounting Office Management & Administration Report, June 2009.
The Importance of a Customer Communications Strategy • It is just as important to have a retention strategy in place as an acquisition strategy. • It costs more to acquire a new customer than it does to keep a current customer. • Most customers want to be appreciated and thanked along the way for their business. • Expectations are increasing. Customers expect their experience to be consistent, relevant and personalized at every touch point.6
Getting Started – 8 Key Steps 1. Know your objectives and success metrics 2. Conduct a communications audit 3. Listen to your customers 4. Determine customer segmentation and investment strategy 5. Plot customer lifecycle phases and timing 6. Define messaging strategy 7. Set test and implementation roadmap 8. Go to market and refine7
Step 1: Know Your Objectives and Success Metrics Primary: should be quantifiable • Example: Increase revenues by xx%; Increase renewals or mitigate churn by xx% Secondary: should be extensions of meeting primary goals • Example: Satisfied customers and advocates, which lead to increased purchases and increased revenues; increase customer opt in; generate buzz Are these realistic and measurable? • Align costs and ROI to meeting your goals8
Step 2: Conduct a Communications Audit • Build a map of existing communications to identify gaps/holes/opportunities • Review all existing communication metrics (open rates, response rates, etc.) • Evaluate (or build) current offer library • Analyze impact of current touches on goals, costs and revenues • Perform competitive analysis • Insights should enable specific plans by segment, customer type, etc.10
Step 3: Listen to Your Customers• Use immediate feedback channels – Surveys, one on one interviews, focus groups• Build longer term feedback channels – Customer panels to contact regularly for feedback• Be prepared to act on the information you hear – Customers appreciate being asked for their feedback but expectations are that their opinion will be taken into account (especially in Social Media Channels)12
Step 6: Define Messaging Strategy • Creating a brand or “voice” for your communications so that all touches are consistent – Make sure the communication objective is being met (ie., cross- sell, educate, upsell, etc.) • Carry the branding throughout the customer’s lifecycle even if touches are internally managed by different groups – All touches should clearly be coming from one company • Personalize where possible – Targeted, personalized, relevant messages ensure customer engagement for lifetime loyalty15
Example: Messaging Mapped by SegmentCustomer Segment Benefits message Product Features and Benefits16
Examples of Effective Customer Communication “Branding”17
Step 7: Set Test and Implementation Roadmap • An implementation plan will help ensure that no steps are overlooked and that each team member is clear on their role • Participation by key stakeholders and support teams is a critical component to the success of the implementation process • Build in milestones and check points after key steps • Schedule implementation with enough time to read results accurately and rollout next steps18