Integrated strategies for customer loyalty and value optimization
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Integrated strategies for customer loyalty and value optimization

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Integrated strategies for customer loyalty and value optimization Integrated strategies for customer loyalty and value optimization Presentation Transcript

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  • Integrated Strategies for Customer Loyalty and Value Optimization Presented By: David Azulay – The Kern Organization Judy Mitchell – The Kern Organization Dan Ferguson – DIRECTV Karlene Swalley – Clearwire 2
  • “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 Illhan, Entrepreneur and Founder of Crazy Johns (Mobile phone retailer) According to research done by Bain & Company: No company is immune to the pressures of the market. But companies that focus on building loyal relationships… are better positioned to remain strong.3
  • 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 Why?4
  • Return customers tend to buy more from a company over time, and as they do, the cost to serve them declines Customers often pay a premium to continue to do business, rather than switch to a competitor with whom they are unfamiliar and uncomfortable5
  • Today’s Agenda Introductions The Importance of a Customer Communications Strategy Getting Started –10 Key Steps Cases –DIRECTV & Clearwire Moderated Panel Discussion Q&A6
  • Introducing Our Panelists David Azulay Dan Ferguson Judy Mitchell Karlene SwalleySenior Vice President, Senior Director of Vice President, Senior Customer Client Services, Marketing, Client Services, Base MarketingThe Kern Organization DIRECTV The Kern Organization Manager, Clearwire7
  • The Importance of a Customer Communications Strategy Just as important to have retention strategy in place as acquisition strategy It costs more to acquire a new customer than it does to keep one 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 point8
  • Getting Started – 10 Key Steps 1. Know your objectives 2. Define methods of measurement and success metrics 3. Conduct a communications audit 4. Listen to your customers 5. Determine customer lifecycle phases 6. Define targets and messaging 7. Plot the journey 8. Set Test and Implementation Plans 9. Create a brand 10. Go to market and refine again9
  • Step 1: Know Your Objectives Primary –Should be quantifiable • Example: Increase revenues by 10%; 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? • Align costs and ROI to meeting your goals10
  • Step 2: Define Methods of Measurement and Success Metrics • Improved customer satisfaction scores • Positive testimonials • Lower churn rates • Increased revenue or purchases • New customer referrals • Higher online registrants • Other qualitative and quantitative measures? – Always good to look at more than one11
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  • Step 3: Conduct a Communications Audit • Dedicate resources – commit 2-4 months • Review all existing metrics • Analyze impact of current touches on costs and revenues • Perform competitive analysis • Evaluate current offer library • Build a map of existing communications to identify gaps/holes/opportunities to better address customer needs • Result should enable specific plans by segment, customer type, etc.13
  • Step 3: Communications Audit Evaluate contact strategy variations based on customer segment Questions to ask yourself: What actions do you want prospective customers to take as they move through their relationship with you? What channels are they likely to prefer? What will define success for each type of dialogue? Be sure to make improvements based on findings14
  • Step 3: Communications Audit Evaluate All Touch Points15
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  • Step 4: 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 account17
  • Step 4: Listen to Your Customers Risk Treat- ment18
  • Step 4: Listen to Your Customers SURVEY FOLLOW UP TREATMENT Weekly 1 2 3 4 5 6 7 10 5 0 Landing Page Thank You EM Thank You, Tell us how we can help EM OBTM Offer No open A Reason 1 Products No click thru Offer B Reminder EM EM No open A B Financial Reason 2 No click thru “Call us -- we Reminder can help” & EM IBTM # EM Reason 3 related Service Test to determine effectiveness of benefit Value Value Value communications EM 1 EM 2 EM 3 Roll into Loyalty if good response Reason 4 Other Benefit Benefit Benefit EM 1 EM 2 EM 319
  • Step 5: Determine Customer Lifecycle Phases Activation Winback On-boarding Churn Engagement Litigation Communications framework, data, investment & measurement strategies need Adoption Loyalty to be specific by phase Renewal Growth Retention Nurture20
  • Step 5: Determine Customer Lifecycle Phases Create specific strategies for each stage21
  • Step 5: Customer Lifecycle Phases Investment Strategy Based on your likelihood for good lifetime value and churn litigation, you can determine how much money to put into a campaign22
  • Step 6: Define Targets and Messaging • Know your strategy – Education, cross-sell, etc. • Determine available data – Revenue, tenure, products purchased, etc • Consider attributes for segmentation – Profile or model against most profitable customers to identify opportunities within your base • Personalize where possible – Targeted, personalized, relevant messages ensure customer engagement for lifetime loyalty23
  • Step 6: Messaging HierarchyCustomer SegmentBenefits message Product Features and Benefits24
  • Step 7: Plot the Journey• Define key stages to reach customers – Before contract expiration – After 3 months of no purchase activity – On purchase or activation anniversary date• Determine which targets are highest value to your organization to set frequency accordingly• Test different formats and channels to get the most bang for your buck25
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  • Step 8: Set Test and Implementation Plan • Evaluate audiences that are most critical to impacting goals – Identify groups of customers that will move the needle on your business most if more engaged – Identify best media mix to reach your audience • Set revenue goals to make sure costs are offset and positive ROI is achieved • Schedule implementation with enough time to read results accurately and rollout next steps • An implementation plan will help ensure that no steps are overlooked and that each team member is clear on their role30
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  • Step 9: Create a Brand • Consider a “voice” for your communications so that all touches are consistent • Make sure look and feel of touches are clearly from the same family of communications – Informational, promotional, whatever the objective • Carry the branding throughout the customer’s lifecycle even if touches are internally managed in different groups – All touches should clearly be coming from one company32
  • Step 9: Create Brand Incentives for Customers33
  • Step 10: Go to Market and Refine Build the communications map Refine strategies to Define the target to test test again against control Measure results against objectives34
  • Case Studies35
  • Case Study: DIRECTV Building a New Customer On-Boarding Strategy • The Business Problem – In 2008, DIRECTV found that the number of new customers that were churning off the platform within their first 90 days was on the rise and communication weren’t consistent across the various internal groups • The Solution – Launched project to create an on-boarding strategy – Executed the 10 key steps above beginning with setting quantifiable objectives to: • Reduce churn and improve engagement • Increase customer satisfaction numbers • Improve installation experience – Created an integrated multi-channel plan to reach customers via installers, email, direct mail, and phone during their first 30 days of service36
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  • Case Study: DIRECTV Building a New Customer On-Boarding Strategy • The Results • In 2011, conducted a review and found an increase in all key metrics including reduced churn and improved customer satisfaction • Next Steps • Now building the 2.0 version to evolve to a hyper-customized approach based on psychographic and lifestyle information to increase relevance – Asking key questions at registration to target messages – Respecting how customers want to be contacted – Creating a community online through a Welcome Center – Integrating the website into the experience rather than just sending customers there38
  • Case Study: Clearwire Developing a Customer Communications Program • Started with zero customers and had to develop a plan • Closely aligned to 10 step process to develop a CRM program • Set priorities and timeline • Internal mapping39
  • StrategyMaster™ Planning Process • Designed to help marketers make significant improvements to their communication programs • Will establish a visual strategic mapping framework to help manage tactical implementations of marketing activities aligned around specific strategies that have been determined to achieve the given goal(s) • The first three steps within our strategic process include: – Strategic planning – Visual mapping – Road mapping and prioritization of implementation plans • The structure ensures the plan is rooted in activities that are focused on achieving the goals and objectives established • Designed to ensure that the plan is adhered to, while being flexible to adapt to changing market conditions and shifts in strategic priorities • Participation by key stakeholders and support teams is a critical component to the success of the planning process40
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  • Need for Multi Channel Approach• Only 20% of customers open one or more emailswith weekly contact strategy• Although DM 5X cost of EM – the CPS were thesame opening up available universe and increasingthe total number of reactivations  DM had X times higher response rate  DM had X times higher take rate 44
  • Thank You Q&A 45