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Attention to Retention

Case Competition: Clear Channel
Business Environment
                                 None


                                   ?
                                                 Carat,
                                               Mindshare

      Weak
                             CLEAR CHANNEL
DSB, CPH Airport,                                    3F, Coca Cola DK,
                                    &
 Banedanmark                                             Arla foods
                              AFA JCDECAUX
                                                       Problematic



                              TV2 & TV3
                      High   Advertising, JP
                              advertising
Issues
Main issue:
• Clear Channel experience a high decree of sporadic
  rebuy

• The economic profit of longterm relationships are
  almost none

• The Clear Channel brand has a lesser recognition rate
  among the customers

• The salesforce’s main focus is on attention, rather than
  retention.
Solutions
• Transfer the focus from Transactional
  marketing to Relationship marketing

• Build up recognition throughout the
  excisting customerbase

• Find new differentiation advantages in the
  Outdoor Market vs. mass media
  advertising
Relationship management
       Creation of loyalty, customer portfolio

                                     Repeat patronage
                    High                                             Low


           Strong
                           Loyalty                 Latent loyalty


Attitude
strength

                       Spourious loyalty                No loyalty
           Weak
Customer groups
• Loyal customers
  – 79 customers, with an average gross
    spending of 2.6 million DKKR over three years
    • Example:


• Spourious loyal customers
  – 269 companies, with an average spending of
    1.3 million DKKR over three years
    • Example:
Operational level: Solution 1
Attention to retention campaign
• Target group: Spourious Loyal Customers.

• Create an independent team, to set-up 1 or 2
  market events. Consisting of sales personnel,
  a sales director and a creative staff member.

• Theme: Cross media development: Outdoor
  Mobile Marketing
Event
• 1st Goal: Create relationships
  – Means: Get around the media agencies, and
    have direct contact with customers
  – Succesfactor: Get 5-15 direct customers relations


• 2nd Goal: Heighten attitude (recognition) for
  the Clear Channel brand within the target
  group
  – Means: Show the positive effect of combining
    traditional outdoor advertising with digital media
Invitation
Augmented reality
Operational level: Solution 2
Website optimization
• Create chat function on webpage
  – Customer is able to get live support staff feedback
  – Opportunity to create personal relationships

• Create customer login page
  – Campaign dashboard, with information on current and
    recent campaigns purchased
  – Gives valuable feedback on campaign performance
  – Reduce the need of analysis made by media
    agencies
Tactical level solution
• Target group: Large loyal customers

• Book 2-3 meetings a year, with relationship
  building as a context

• Gather relevant data and information on
  customer needs on:
  – Cross media advertising
  – Ways to improve Clear Channels retention
Strategic level solution
• Knowledge gathered from the loyal client
  meetings, should:
  – Make a base for new product development

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Attention to retention

  • 1. Attention to Retention Case Competition: Clear Channel
  • 2. Business Environment None ? Carat, Mindshare Weak CLEAR CHANNEL DSB, CPH Airport, 3F, Coca Cola DK, & Banedanmark Arla foods AFA JCDECAUX Problematic TV2 & TV3 High Advertising, JP advertising
  • 3. Issues Main issue: • Clear Channel experience a high decree of sporadic rebuy • The economic profit of longterm relationships are almost none • The Clear Channel brand has a lesser recognition rate among the customers • The salesforce’s main focus is on attention, rather than retention.
  • 4. Solutions • Transfer the focus from Transactional marketing to Relationship marketing • Build up recognition throughout the excisting customerbase • Find new differentiation advantages in the Outdoor Market vs. mass media advertising
  • 5. Relationship management Creation of loyalty, customer portfolio Repeat patronage High Low Strong Loyalty Latent loyalty Attitude strength Spourious loyalty No loyalty Weak
  • 6. Customer groups • Loyal customers – 79 customers, with an average gross spending of 2.6 million DKKR over three years • Example: • Spourious loyal customers – 269 companies, with an average spending of 1.3 million DKKR over three years • Example:
  • 7. Operational level: Solution 1 Attention to retention campaign • Target group: Spourious Loyal Customers. • Create an independent team, to set-up 1 or 2 market events. Consisting of sales personnel, a sales director and a creative staff member. • Theme: Cross media development: Outdoor Mobile Marketing
  • 8. Event • 1st Goal: Create relationships – Means: Get around the media agencies, and have direct contact with customers – Succesfactor: Get 5-15 direct customers relations • 2nd Goal: Heighten attitude (recognition) for the Clear Channel brand within the target group – Means: Show the positive effect of combining traditional outdoor advertising with digital media
  • 11. Operational level: Solution 2 Website optimization • Create chat function on webpage – Customer is able to get live support staff feedback – Opportunity to create personal relationships • Create customer login page – Campaign dashboard, with information on current and recent campaigns purchased – Gives valuable feedback on campaign performance – Reduce the need of analysis made by media agencies
  • 12. Tactical level solution • Target group: Large loyal customers • Book 2-3 meetings a year, with relationship building as a context • Gather relevant data and information on customer needs on: – Cross media advertising – Ways to improve Clear Channels retention
  • 13. Strategic level solution • Knowledge gathered from the loyal client meetings, should: – Make a base for new product development