The Five Step Approach to
Creating Strategic Planning Road Maps
for Customer Acquisition Success
Russell Kern, President &...
When Strategic Planning Is Right For You?
•
•
•
•
•
•
•

CMO not hearing you
CMO is uncertain of where you are going
Cultu...
Strategy verses Tactics

STRATEGY is done above the shoulders
TACTICS are done below the shoulders

Sun Tzu philosophy
Strategy: Protect Women’s Shoes When it Rains

Tactic: Mini-umbrellas
Strategic Planning Benefits
9% to 14% improvements of go to market operations within 120 days
• Better communication
• Imp...
Five Steps To Strategic Success
Closed Loop Approach To Strategic Planning

Strategic Ideation and Mapping
Step 1 - preparation
Historical review, joint p...
Step 1: Effective Leadership
Who’s running the show?
The leader of the planning process must be
able to:
• Manage the proc...
Step 2: Implementation Approach
• Top down:
– Given a predetermined business goal, identify all the strategies
and their c...
Top Down Model
Grow Revenue

Objective
Add and Retain
High-Value Customers

Existing

New

Strategies
Customer Experience ...
Bottom Up Model
2010 Revenue $100 Million

Objectives
Acquire New Customers
50%

Strategies

Channels

Efficiency with
Bes...
Step 3: Determine Strategic
Visualization Methodology

Source: Stine Arensbach, Head of Strategic Visualizaiton, KPMG
KERN’S StrategyMaster™ Visualization
Step 4: Strategic Ideation
Session Guidelines
• Set objectives, then establish strategic territories as
“placeholders”
• Generate as many tactics as ...
Step 5: Prioritize and Road Map
2010 OTA Strategy Map – 12/14/09

Overall Goal:

STRATEGIES OBJECTIVES

80/BIS per month/
...
AAA Planning Story
Who is the Automobile Club of Southern California?
Road Side
Assistance

Financial

Life Insurance

Travel

Automotive

Di...
Who is the Automobile Club of Southern California?
Largest affiliate in the AAA Federation serving 21 unique states
Conquering Planning Barriers
• Focusing on variety of channels

• Collaborating cross-functional resources
• Understanding...
What Does a Successful Strategic Partnership Look Like?
A Successful Strategic Partner Will…
• Excite curiosity
• Bring passion for analytics
• Challenge the team to think bigger...
Implementing the Planning Process

Goal for the Strategic Engagement:
Drive up response while producing cost
effective dir...
Applying the 5 Steps to Strategic Success
STEP 1. Effective Leadership in place
STEP 2. Implementation Approach Establishe...
Staying True to DR Fundamentals

Production
Efficiencies
Data-Driven Testing
• Align marketing and data teams internally
• Optimize core segments
• Identify high performing cluste...
Offer-Driven Testing
• Urgency increases response

• Explore integrated digital media with traditional DM
• Keep the offer...
Creative-Driven Testing
Operations and Efficiencies
Greatest Benefits Realized

Generated 43% increase in response
and 31% improvement in KPI over
previous year (2011 over 20...
Greatest Benefits Realized
Intangible Benefits Going into 2014

• Improved rigor, discipline and focus
• Enriched historic...
Insights Gained From Planning Process
• Flexibility and adaptability
• Spread testing across the road map calendar
• Be pa...
Two More Insights
• Focus on Innovation
• Without time rarely come up with new
ideas, programs and strategies
• Don’t get ...
Summary
• Strategic planning DOES move the needle
–
–

•
•
•
•

Finds new solutions
Improves existing ops, processes and p...
Discussion / Q&A
New: Free eReport from KERN

Go To:
kernagency.comimproveresults
Or give us your card
Thank You!
If you would like us to email you a copy of the
presentation, please leave your
business card up front.
Russell...
The Five Step Approach to Creating Strategic Planning Road Maps for Customer Acquisition Success
The Five Step Approach to Creating Strategic Planning Road Maps for Customer Acquisition Success
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  • ----- Meeting Notes (10/14/13 11:07) -----Who's here:Lenght of marketersAgency v. client sideWho's got programs that need improvement?Who feels they do planning but its not getting the results they need?
  • No time for planning-
  • Or Sun Tzu the famous Japanese philosopher who speaks about warfare and strategy. What is clear from these two quotes that I hope you understand is strategy is the process of thinking about how you are going to achieve your goal And tactics are the actions you are going to take within a given strategy.
  • When I was in college I always wanted to be a river raft boat captain. I thought it was the coolest thing to sit on a raft, float down the river and direct your crew and boat to run the rapids, with water splashing at you every which way. So I did my training, got my certification and set up to take a group of college buddies down the American river in the gold rush country of Sacramento. Now throughout out my training it was always sunny and hot on the river. If you fell in the river within a few minutes of getting back into the raft, your crew was dry. No harm done. On my first trip in charge of taking a group of friends, I was going solo. No other captains were with me, and the weather had turned overcast and cold. Ok, not so bad, it kept the water fights to a minimum. All was going fine until we came upon the famous class 4 rapid on the river called the Widow Maker. The fun part of about river running is they have all these death defying names for rapids, like satan's cesspool, the flipper, and xxx.The widow maker rapid was a big one, you had to set your boat straight down the river, pointing right at the middle of this giant standing wave, and then have your crew paddle like crazy to get enough speed to go up and over the wave without flipping the boat over on yourself.Long story short, the boat flipped, my crew got dumped out, we all had to swim for shore and rescue the boat and given the cold weather and water, we had to immediately deal with hypothermia. Not a good situation. I tell you this story to make a few key points about strategic planning. Our goal was clear- have a fun time with the college guys on a SaturdayOur strategy was clear- Let’s go down the riverOur tactic was clear – let’s use a raft.However our planning for potential problems and obstacles could have been much better. What I learned from not only this experience but from 30 years of working with marketers is we don’t spend enough time planning, formally evaluating our tactics, challenging our thinking and most importantly planning for contingencies when a problem presents itself.
  • Here is an example where the brief for the plan must have been:How can we protect women’s shoes in rainy weather
  • Numerous definitions of planningDifferent corporate cultures:Internal battleground for inter-department conflict negotiationsResource allocation based on power vs. corporate strategy“Blue-Sky” planning by spreadsheetPredictions about the futureUnsafe creative and lateral thinking environmentsNo time to planIdeas not accomplished from prior yearHard to get funding Hard to socialize strategic planInternal redundanciesNo coordination between business unitsCMO wants strategies for sustainable growthteam gets bogged down in tactics
  • To create a methodology that drives performance improvements of core programs, as well as, identify new solutions/strategies for growthTo have a documentation process that puts the marketing leaders in better command and control of their program with agency partners
  • One of the lessons we learned about strategic planning over the years is it can’t be done without effective leadership.The job of the leader is to get people involved, to transmit enthusiasm and to keep a sense of urgency on developing a set of outcomes.Without clear leadership, it is easy for a strategic planning process to take a back seat to the urgent of the minute and therefore not get the attention and focus it requires from all the various sources.
  • Visualization improves the comprehension of a given plan, enables faster on-boarding and provides a consistent vision to the team throughout their mission.Lots of ways to visual. This is one of the most fun but it requires a professional sketch artist to be part of your process, which is an incremental cost.
  • The Five Step Approach to Creating Strategic Planning Road Maps for Customer Acquisition Success

    1. 1. The Five Step Approach to Creating Strategic Planning Road Maps for Customer Acquisition Success Russell Kern, President & Founder KERN Katie Majerus, Marketing Manager Auto Club Enterprises
    2. 2. When Strategic Planning Is Right For You? • • • • • • • CMO not hearing you CMO is uncertain of where you are going Culture of crisis of the minute management Great plans go awry Funding elusive Funds squandered Programs stuck in a rut, not advancing
    3. 3. Strategy verses Tactics STRATEGY is done above the shoulders TACTICS are done below the shoulders Sun Tzu philosophy
    4. 4. Strategy: Protect Women’s Shoes When it Rains Tactic: Mini-umbrellas
    5. 5. Strategic Planning Benefits 9% to 14% improvements of go to market operations within 120 days • Better communication • Improved resource allocation • Identification of innovations – programs, strategies, tactics, channels, • Clarity of focus for team • Reduction in redundancies • Easier to onboard • Results, Revenue and Implementation Improvements
    6. 6. Five Steps To Strategic Success
    7. 7. Closed Loop Approach To Strategic Planning Strategic Ideation and Mapping Step 1 - preparation Historical review, joint planning sessions Step 2 – output Create strategic plan based around business objective Results Analysis Step 7- measurement Measure performance, analyze results and provide recommendations for optimization Execution Step 6 - implementation Create, produce, approve Step 3 - Output Create tactics for a given strategy. prioritize tactical executions Implementation Roadmap Step 4 - output Schedule implementations of each tactic and test based on priority Strategy Brief Step 5 - output Document testing details: goal, target, timing, offers, creative , test plan, market selection, media allocations
    8. 8. Step 1: Effective Leadership Who’s running the show? The leader of the planning process must be able to: • Manage the process • Share critical knowledge • Foster innovations • Transmit a sense of urgency and enthusiasm to others.
    9. 9. Step 2: Implementation Approach • Top down: – Given a predetermined business goal, identify all the strategies and their corresponding tactics to achieve the goal • Bottoms up: – Look at historical performance of a given set of tactics, build up from the bottom an integrated plan of tactics and strategies to achieve the goal.
    10. 10. Top Down Model Grow Revenue Objective Add and Retain High-Value Customers Existing New Strategies Customer Experience Proposition Basic Requirements Multiple Ad Format Placement Relevancy Differentiations Personal Experiences Multiple Channels Mobile Market Ad Placement Strategy Tactics Personalization Experience Develop and Implement Marketing Programs Develop and Implement Personalized Marketing Programs Deliver Personalized Experiences
    11. 11. Bottom Up Model 2010 Revenue $100 Million Objectives Acquire New Customers 50% Strategies Channels Efficiency with Best Channels Improve DM Cross Sell to Existing Customers 50% Test New Channels Optimize Search Social Media Efficiency with Best Channels CRM Tele Test New Channels Newsletter Events Control Buster Tests Tactics Online Programs 1:1 Relevancy Improvements Content Delivery - Offer Strategy - Data Model - Creative Concepts SEO Review Fan Development Data Usage email structure Automation Design Enhancements Customer Feedback
    12. 12. Step 3: Determine Strategic Visualization Methodology Source: Stine Arensbach, Head of Strategic Visualizaiton, KPMG
    13. 13. KERN’S StrategyMaster™ Visualization
    14. 14. Step 4: Strategic Ideation
    15. 15. Session Guidelines • Set objectives, then establish strategic territories as “placeholders” • Generate as many tactics as possible for a given strategy without evaluation • Conduct one-on-one sessions post large group session to hone ideas • Conduct “consensus” sessions with larger group to review refined strategies and tactics, making adjustments as needed
    16. 16. Step 5: Prioritize and Road Map 2010 OTA Strategy Map – 12/14/09 Overall Goal: STRATEGIES OBJECTIVES 80/BIS per month/ per franchise $250 CPB 1.0 Lift Response by 30% 1.1 Improve Targeting 1.1.1 1.2 Develop Offer Strategy 1.2.1 1.3 Develop HighPerformance Creative Executions 2.0 Reduce Costs by 10% 1.4 Improve Conversion to Show 1.5 Increase Channel Integration 1.5.1 1.3.1 2.1 Identify Production Efficiencies 2.1.1 2.2 Identify D.P. Savings 2.3 Identify List Data Efficiencies 2.2.1 2.3.1 2.4 Other 2.4.1 TACTICS 1.4.1 1.1.2 1.5.2 1.3.2 2.1.2 2.4.2 1.2.2 2.3.2 2.1.3 1.4.2 nline Integration 1.3.3 2.4.3 1.5.3 1.1.3 2.1.4 1.4.3 1.3.4 Prepared by The Kern Organization for Online Trading Academy
    17. 17. AAA Planning Story
    18. 18. Who is the Automobile Club of Southern California? Road Side Assistance Financial Life Insurance Travel Automotive Discount Program P & C Insurance
    19. 19. Who is the Automobile Club of Southern California? Largest affiliate in the AAA Federation serving 21 unique states
    20. 20. Conquering Planning Barriers • Focusing on variety of channels • Collaborating cross-functional resources • Understanding uniqueness of markets • Goals • Culture • Managing KPIs business wide • Aligning strategies across senior management
    21. 21. What Does a Successful Strategic Partnership Look Like?
    22. 22. A Successful Strategic Partner Will… • Excite curiosity • Bring passion for analytics • Challenge the team to think bigger • Strive to avoid insignificant test and learn efforts • Focus on efficiency, optimization and innovation • Help identify calculated risks with bigger wins
    23. 23. Implementing the Planning Process Goal for the Strategic Engagement: Drive up response while producing cost effective direct mail campaigns that would help grow the insurance business
    24. 24. Applying the 5 Steps to Strategic Success STEP 1. Effective Leadership in place STEP 2. Implementation Approach Established STEP 3. Visualization Methodology Introduced KERN’s StrategyMaster Planning TM STEP 4. Ideation Session Key stakeholders collaborated and agreed to strategic initiatives STEP 5. Prioritization and Road Map Individual market plans implemented
    25. 25. Staying True to DR Fundamentals Production Efficiencies
    26. 26. Data-Driven Testing • Align marketing and data teams internally • Optimize core segments • Identify high performing clusters • Former hand-raisers • Multiple-product users • Seek new segment opportunities • Models for predicting buying propensity • Determine lift in conversion and response KPI’s pretesting • Embrace detailed and segmented production matrices
    27. 27. Offer-Driven Testing • Urgency increases response • Explore integrated digital media with traditional DM • Keep the offers fresh and relevant • Optmize your successes • Honor your failures
    28. 28. Creative-Driven Testing
    29. 29. Operations and Efficiencies
    30. 30. Greatest Benefits Realized Generated 43% increase in response and 31% improvement in KPI over previous year (2011 over 2012)
    31. 31. Greatest Benefits Realized Intangible Benefits Going into 2014 • Improved rigor, discipline and focus • Enriched historical reference speeds tactical considerations • Greater collaboration • Improved dashboards for quick decisions • Better forecasting and improved goal obtainment • More time for Innovation!
    32. 32. Insights Gained From Planning Process • Flexibility and adaptability • Spread testing across the road map calendar • Be patient • Strategic plans and road maps a living document
    33. 33. Two More Insights • Focus on Innovation • Without time rarely come up with new ideas, programs and strategies • Don’t get caught in death by 1000 tests • Encourage Open Communication • Make it safe for sharing • Be open to improving status quo
    34. 34. Summary • Strategic planning DOES move the needle – – • • • • Finds new solutions Improves existing ops, processes and programs Set clear objectives before you begin Get management buy-in to process Know your results history and competition Embrace innovation and reduce Naysayer noise
    35. 35. Discussion / Q&A
    36. 36. New: Free eReport from KERN Go To: kernagency.comimproveresults Or give us your card
    37. 37. Thank You! If you would like us to email you a copy of the presentation, please leave your business card up front. Russell Kern rkern@kernagency.com 818-703-8775 Katie Majerus majerus.katie@aaa-calif.com
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