Crm Part 1 & 2


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This is a presentation we did on Customer Relationship Management for the ArtsReach Conference

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  • Crm Part 1 & 2

    1. 1. CRM – Back to Basics <ul><li>A Two-Part CRM Presentation </li></ul><ul><li>(Getting on the same page together) </li></ul><ul><li>The Market Research </li></ul><ul><ul><li>What we can learn… </li></ul></ul><ul><ul><li>Walking a Customer Service Talk </li></ul></ul><ul><ul><li>What we need to do. </li></ul></ul><ul><ul><li>Jon Hardie </li></ul></ul><ul><ul><li>Rebecca Krause-Hardie </li></ul></ul><ul><ul><li>Audience Works </li></ul></ul><ul><ul><li>Copyright 2007 </li></ul></ul>
    2. 2. Three core pieces of research inform our discussion today <ul><li>Initiators & Responders: Leveraging Social Context to Build Audiences </li></ul><ul><ul><ul><li>Alan Brown / Knight Foundation </li></ul></ul></ul><ul><li>The One Number You Need to Grow </li></ul><ul><ul><ul><li>Frederick F Reichheld / Harvard Business Review (HBR) </li></ul></ul></ul><ul><li>Perfect Message - the Perfect Moment </li></ul><ul><ul><ul><li>Kirthi Kalyanam & Monte Zweben / HBR </li></ul></ul></ul>
    3. 3. Leveraging Social Context <ul><li>Initiators & Responders </li></ul><ul><li>by Alan Brown </li></ul><ul><ul><li>56% of our audiences fill our seats because someone else invited them </li></ul></ul><ul><ul><li>Initiators invite Responders </li></ul></ul><ul><ul><li>Their value can be as much as 3 times the average subscriber </li></ul></ul>
    4. 4. Social Context <ul><li>Who invites you to an event, has as much to do with your decision to attend as other factors such as program, artist, menu, etc. </li></ul><ul><li>Regarding your potential attendees: </li></ul><ul><li>No matter how many brochures you send to Responders - it’s unlikely they’ll ever act on their interests without an external stimulus - an invitation from a friend or family member. </li></ul>
    5. 5. Social Context - Initiators <ul><li>Initiators are a small group but your most loyal consumers - 18% - (think Type A cultural consumers) - are the glue that holds your audience together. </li></ul><ul><li>They are twice as likely as those who are not initiators to be interested in attending </li></ul><ul><li>They attend significantly more events </li></ul><ul><li>They are more likely to say that arts plays a ‘major role’ in their lives </li></ul>
    6. 6. The One Number You Need to Grow By Frederick Reichheld (HBR) <ul><li>“ How likely is it that you’d recommend (your organization) to a colleague?” </li></ul><ul><li>not very likely 1 2 3 4 5 6 7 8 9 10 very likely </li></ul><ul><li>What is the ratio of your Promoters (those who strongly agree with a 9 or 10 rating to your </li></ul><ul><li>Detractors (any answer less than 7) </li></ul><ul><li>Your target ratio should be 75-80% </li></ul><ul><li>The Dangers of Your Detractors </li></ul><ul><li>collateral damage issues </li></ul>
    7. 7. The Perfect Message, at the Perfect Moment By Kirthi Kalyanam & Monte Zweben (HBR) <ul><ul><li>Most customers don’t want to hear from you most of the time. Because they have a life! </li></ul></ul><ul><ul><li>But when they do, How do you seize the moment? </li></ul></ul><ul><ul><li>The question “when” - like most marketing questions - can be answered by technology: specifically, by a new computer-based model called ‘dialogue marketing’. </li></ul></ul>
    8. 8. Dialogue Marketing Concept <ul><li>Dialogue marketing - allows you to listen to customer needs and respond </li></ul><ul><ul><ul><li>just in time </li></ul></ul></ul><ul><ul><ul><li>with just the right message </li></ul></ul></ul><ul><ul><ul><li>With just the right channel </li></ul></ul></ul><ul><li>Its principal advantages over older approaches are that it is completely interactive, exploits many communication channels, and is ‘relationship aware’: that is, it continuously tracks every nuance of the customer’s interaction with the business. </li></ul>
    9. 9. Dialogue Marketing In Action <ul><li>Striking up a conversation </li></ul><ul><li>Identifying decision moments or actions </li></ul><ul><li>Offering choices that respond to those moments </li></ul><ul><li>Have dialogue menus that respond to market segments and become more specialized as the prospects respond </li></ul><ul><li>You can use meal service decision points as a model </li></ul><ul><ul><li>identify meal service transactions, timing, choices, responses </li></ul></ul><ul><li>Dialogue examples include: </li></ul><ul><ul><li>Event notification </li></ul></ul><ul><ul><li>Repurchase reminders </li></ul></ul><ul><ul><li>Inventory and Price Alerts </li></ul></ul><ul><li>Life Cycle Progressions moving through increasing levels of loyalty, from the point of first contact to their bequest! </li></ul>
    10. 10. Synthesis <ul><li>Listen to our audience (Really Listen) </li></ul><ul><li>Be responsive to their needs (Walk the Talk) </li></ul><ul><li>Do it at just the right moment (For Them) </li></ul><ul><li>But - How do we do that? </li></ul><ul><li>Or not… </li></ul>
    11. 11. Resistance to Change <ul><li>Our data systems can’t do that </li></ul><ul><li>We don’t have the staff </li></ul><ul><li>We don’t have the money </li></ul><ul><li>We’ve never done it that way before </li></ul><ul><ul><li>Albert Einstein’s definition of insanity is doing the same thing over, and over again, … and expecting a different result” </li></ul></ul><ul><ul><li>What do we want for outcomes? </li></ul></ul>
    12. 12. Opportunities (or opportunities lost) <ul><li>People’s expectations are not driven by your particular institution, but by the standards of everyday life. </li></ul><ul><li>What is available elsewhere? </li></ul><ul><li>What level of service do I come to expect? </li></ul><ul><li>I want to buy what I want, when I want it! </li></ul><ul><li>Hint: its 10X cheaper to do proactive customer care via a sustained dialog that anticipates needs; than our often business as usual, reactive, emergency room, customer service … when what is delivered is broken! </li></ul>
    13. 13. <ul><li>Let’s see how we can actually put these ideas into practice </li></ul><ul><li>Walking The Talk with </li></ul><ul><li>Customer Service </li></ul>
    14. 14. Fasten Your Seat Belts
    15. 15. CRM - Back to Basics Part 2 <ul><li>Walking The Customer Service Talk </li></ul><ul><li>What we need to do </li></ul><ul><li>Jon Hardie, AudienceWorks </li></ul>
    16. 16. Our most loyal customers will grow our businesses for us, by referral … but only if we let them!
    17. 17. How?
    18. 18. <ul><li>“ Our only path to profitable growth may lie in our ability to turn our most loyal customers … into our marketing department!” </li></ul><ul><li>Frederick F. Reichheld </li></ul>
    19. 19. What exactly does that take? <ul><li>Institution-wide commitment </li></ul><ul><li>Consistent messages </li></ul><ul><li>Customer focused relationships </li></ul><ul><li>Dialog based conversations </li></ul><ul><li>Making it easy </li></ul>
    20. 20. Institution Wide Commitment <ul><li>This means alignment </li></ul><ul><li>This means understanding </li></ul><ul><li>This means agreement </li></ul><ul><li>This means buy-in </li></ul><ul><li>This means shared ownership </li></ul><ul><ul><li>… from the very center to the farthest edge </li></ul></ul><ul><ul><li>… everybody rowing in the same direction </li></ul></ul>
    21. 21. Customer Focused Relationships <ul><li>How effectively do we communicate? </li></ul><ul><li>How well do we listen? </li></ul><ul><li>Do we listen and respond at the right moments? </li></ul><ul><li>What do we want our customers to remember? </li></ul><ul><li>What do our customers say about us? </li></ul>
    22. 22. What happens when… <ul><li>The customer gets lost? </li></ul><ul><li>We push our guesses of what we think the customer wants? </li></ul><ul><li>In direct mail with 2% response rates, we are wrong in guessing what our customers want, and need, and when they need it … 98% of the time. </li></ul><ul><li>When are overwhelmed with the daily grind we develop an Edifice Complex. </li></ul>
    23. 23. Something to think about… <ul><li>After all of our marketing efforts… </li></ul><ul><li>All of our direct mail … </li></ul><ul><li>All of our print ads… </li></ul><ul><li>All of our telemarketing… </li></ul><ul><li>All of our email blasts… </li></ul><ul><li>The research indicates that it only only takes (2) experiences of customer dis-service before their goodwill and all the investment goes south … along with all of their friends. (remember that referral marketing goes both ways) It only take 11 hours on the runway … just ask Jet Blue. (churn & burn is expensive) </li></ul>
    24. 25. Consistent Messages <ul><li>Examples of Customer Dis-service </li></ul><ul><li>Care to share </li></ul><ul><li>your most embarrassing </li></ul><ul><li>Lessons Learned? </li></ul>
    25. 26. What is our underlying attitude about our customers? <ul><li>Are they the problem? </li></ul><ul><li>What do we mean by customer service? </li></ul><ul><li>What are the alternatives? </li></ul><ul><li>What’s the payoff? </li></ul>
    26. 27. How effective are referrals <ul><li>What percent of our new business comes from referrals from our loyal patrons? </li></ul><ul><li>60% </li></ul><ul><li>What’s the conversion rate on passionate referrals from your most loyal customers? </li></ul><ul><li>75% </li></ul><ul><li>What is our conversion rate direct mail? </li></ul><ul><li>2% </li></ul><ul><li>You do the math! </li></ul>
    27. 28. Loyalty is <ul><li>“ Loyalty is the willingness of someone, an employee, customer, or friend, to make an investment or personal sacrifice to strengthen a relationship.” </li></ul><ul><li>Frederick Reichheld </li></ul>
    28. 29. Loyalty is not…. <ul><li>Is not about price </li></ul><ul><li>Its not accurately measured by repeat purchases may be habitual </li></ul><ul><li>It DOES mean… </li></ul><ul><li>“ Sticking to an institution that gives good value over the long term, even if the customer does not receive the best price in a particular transaction.” </li></ul>
    29. 30. Customer Service <ul><li>It’s all about the cup of coffee </li></ul><ul><li>How do you acknowledge your customer’s loyalty? </li></ul><ul><li>How well do you listen? </li></ul><ul><li>What’s your plan for a dialogue? </li></ul>
    30. 31. Dialogue Marketing <ul><li>Take the time to Identify and flowchart major decision-tree pathways - from the customer’s perspective! </li></ul><ul><li>Start by reviewing each of your interactions and transactions with each major customer group </li></ul><ul><li>Consider their entire life cycle with you and each of your staff members </li></ul>
    31. 32. Dialogue Marketing Steps <ul><li>Offer a range of choices </li></ul><ul><li>Create choices that respond to: </li></ul><ul><ul><li>Market segments </li></ul></ul><ul><ul><li>That become more specialized </li></ul></ul><ul><ul><li>That adapt as prospects respond and interact with you over time </li></ul></ul>
    32. 33. Dialogue Examples <ul><li>Event notification </li></ul><ul><li>Repurchase reminders </li></ul><ul><li>Inventory / Price Alerts </li></ul><ul><li>Special Occasions </li></ul>
    33. 34. A couple of effective Relationship Management Tools <ul><ul><ul><ul><li>Orbit </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>What is ORBIT </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>How was it created </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>How is it used </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>RetrieverPost </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>What is Retriever Post </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>How is it used </li></ul></ul></ul></ul></ul>
    34. 35. <ul><li>Follow The Yellow Brick Road </li></ul><ul><li>Identify the frequent communications </li></ul><ul><li>Ask what triggers those communications to make them more timely </li></ul><ul><li>Add a question or call to action with each communication </li></ul><ul><li>Prepare alternative responses </li></ul><ul><li>Create series of urgent calls to action that kick in if your call goes unanswered </li></ul><ul><li>Think about Life Cycle Progressions </li></ul>
    35. 36. Let’s Review <ul><li>Create & Sustain Value & Loyalty: </li></ul><ul><li>by investing in: </li></ul><ul><li>Institutional Stakeholder Alignment </li></ul><ul><ul><li>all together now </li></ul></ul><ul><li>Product Excellence – </li></ul><ul><ul><li>only the nest </li></ul></ul><ul><li>Superb Customer Care – </li></ul><ul><ul><li>In every transaction – (think of meal service) </li></ul></ul>
    36. 37. Help customers grow your business <ul><li>Ask them & Listen (no faux listening) </li></ul><ul><li>Build Trust & Value over time </li></ul><ul><li>Sing to them - everyone to them .in the same key … but not the same song to every customer - needs differ </li></ul><ul><li>Respond at just the right moment in just the right way with your dialogue </li></ul><ul><li>Keep rowing together - little by little </li></ul>
    37. 38. Thank you! Jon Hardie Rebecca Krause-Hardie [email_address] 978-575-1454