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Chris Denton over Customer Relationship Management
The document discusses customer relationship management (CRM) strategies tailored for the arts, emphasizing the importance of engaging and retaining audiences through effective communication and understanding customer behavior. It highlights a case study of the Barbican Centre, which details key customer analysis, retention rates, spending habits, and the impact of consistent engagement on revenue. Additionally, it provides actionable tips for implementing a successful CRM strategy, underscoring the need for data quality and organizational buy-in.
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Chris Denton over Customer Relationship Management
- 1. Customer Relationship Management Developing ways to engage and retain your audiences
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- 3. Customers and Relationships foryou: for your customer: Lifetime Relevance Trust Profitable Passion Cost-effective Recognition Higher ROI
- 4. ALL CUSTOMERS AREEQUAL You CAN and SHOULD give up on some of them. But which ones…?!
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- 6. Why is CRMimportant for the arts?
- 8. Changing circumstances -then Organisation Customer TELL AND SELL
- 9. Changing circumstances -now COMMUNICATION CUSTOMER COMMUNITY CONVERSATION
- 10. Changing circumstances… What constitutesa cultural experience, how will it be delivered and how will it be consumed? How and where will our brands need to feature? The nature of relationships will evolve. Audience expectation as customers.
- 11. Creating a CRMstrategy Case study – Barbican Centre
- 12. Customers – keyquestions • Who are our customers? • What do we really know about them? • Are we communicating with them in the right ways, through the right channels, at the right time and as cost effectively as possible? • What are we actually saying about our brand when we do talk to them? • Are they loyal to us? • If they are loyal, are we treating them with respect?
- 14. New customer attritionrate Year 1 2 3 4 5
- 15. % of patronsagainst % of income to Ce ntre 64% % database % income 31% 27% 17%16% 19% 14% 5% 7% 1% 1 Visit 2 Visits 3-5 Visits 6-9 Visits 10+ Visits
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- 18. Data Capture and Hygiene Customer Analytical Experience Tools Reporting Online & KPIs CRM Coding Membership (Audience Journey) New Segmenting Audience Audiences Strategy Predictive Modelling
- 19. Data Capture and Hygiene New Customer Analytical Experience Tools Reporting Online & KPIs CRM Coding Membership (Audience Journey) New Segmenting Audience Audiences Strategy Predictive Modelling
- 20. New Audience Strategy A consistent and managed relationship from the point of first booking
- 21. Data Capture and Hygiene New Customer Analytical Experience Tools Reporting Online & KPIs CRM Coding Membership (Audience Journey) New Segmenting Audience Audiences Strategy Predictive Modelling
- 22. Membership • Average memberspent £138 per year compared with £41 for the average non-member. • 25% of members spent over £200 on events compared with 8% of non-members. • Members purchased 21% of total audience tickets and made up a third of repeat attenders.
- 23. Data Capture and Hygiene New Customer Analytical Experience Tools Reporting Online & KPIs CRM Coding Membership (Audience Journey) New Segmenting Audience Audiences Strategy Predictive Modelling
- 24. CRM is aboutmore than just data…
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- 26. Personal Action Plan Describea specific current situation that you feel could be done differently: How will this change according to the Barbican Customer Experience project? How will you measure success?
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- 28. Those visiting morethan once increased by 28% in the two years after launch % Increase in Frquent Customers 2004 & 2006 35% 30% 25% 20% 15% 10% 5% 0% Twice Three - Five S + ix % increase in those visitors attending in each category
- 29. • There wasa 31% increase in revenue generated by returning customers - up by an additional £1.2 million • Those attending 3-5 times generated 40% more revenue in 2008 than 2006 • Welcome packs - 16% more likely to book a repeat visit within ONE month of their first visit than those on test cells • Retention risen from 5% to 14% after 5 years • 26% increase in bookings overall
- 30. Direct Mail SpendVs Income £2,000,000 + 45% £1,643,007 £1,500,000 £1,130,637 £1,000,000 £500,000 -20% £360,601 £290,081 £0 spend Income
- 31. Top tips… • Don’tview CRM in isolation • Current data sources? (360 • Get buy in from the CEO – degree view?) whole organisation • Rules, tools, reports responsibility • Data quality – rubbish • How customer centric now? in, rubbish out • Brand consistency and vision • Be relevant - always clear? • Test everything • Customer knowledge? • Empower staff to go the extra mile • Small steps make a difference!
- 32. Thank you chris@chris-denton.com Cultural marketing,brand, CRM, fundraising, digital and business development
Editor's Notes
- #3 State of mindPhilosophyYou can’t just ‘DO’ CRMNot off the shelf piece of software you plug inThe best software in the world will not deliver good CRM unless it is supported by a vision and a strategyNOT about automation or making things happen more quicklyIT IS ABOUT THE WHOLE OF YOUR ORGANISATION UNDERSTANDING THE IMPORTANCE OF YOUR CUSTOMER, HOW IMPORTANT IT IS TO DO EVERYTHING IN YOUR COLLECTIVE POWER TO MAKE THEM HAPPY AND TO TRY TO ENSURE THEY REMAIN LOYAL TO YOU.So rather than a process, a system, a set of formulae or data sets, good CRM is about winning heartsCRM is about loyaltyCRM is about strong relationshipsCRM is about making people prioritise what you can offer them over and above other things they might chose to doCRM is about making people love you.
- #4 But also, there js another really important reason that is not often acknowledged….
- #5 Some of your customers are more valuable to your organisation than othersSome will require more care, focus and attention than othersSome have a greater potential than others do contribute financiallyOthers will NEVER respond to what you doThey may have come once for a whole variety of unique reasons (birthday, celebration, free ticket) and no matter what you say, they will not come back.A CRM strategy will help you determine who has potential and who doesn’tA CRM strategy will help you decide when AND IF you should give up on a customersA CRM strategy will free you up to focus on those who matter most to your organisationA CRM strategy will enable you to divert resources that you have saved by not communicating with everyone, into trying to win new customers
- #6 DON’T DEVELOP A CRM STRATEGY IN ISOLATION OF YOUR BROADER MARKETING AND COMMUNICATIONS VISIONBrand:PromiseExperienceMemoryWho you are, what you want people to buy intoCRM:How you tell the right people, at the right time, in the right way and with the right messageBeing clear about what your proposition is is as important as having the means to deliver the messageIF YOU DON’T HAVE A CLEAR BRAND PROPOSITION THEN SPEND TIME GETTING THIS RIGHTWHAT ARE YOUR VALUESWHAT IS YOUR VISIONHOW WILL CRM HELP RE-ENFORCE WHAT YOU WANT PEOPLE TO THINK ABOUT YOU
- #8 Economic reasonsWe need to generate more income from a variety of new sourcesWe need to think about how we currently do things and how we might adapt and change.How can we save money – generate more from less.We need to think about how we might work with other organisations in ways which we might never have dreamed of even 3 or 4 years agoBut more than anything, we need to retain the support and loyalty of our existing customers. Audiences, funders, sponsors, high net worth individuals. A Good CRM strategy should set out to consider how your relationship with different stakeholder groups can be developed, even during difficult times.But CRM also helps us to consider how to deal with some other issues facing our audiences….
- #9 The past 10 years has seen a huge shift in arts marketing The old way – arrogant – we put it on and you comeTake it or leave itOne way relationshipNow, things are very different….
- #11 What constitutes a cultural experience, how will it be delivered and how will it be consumed?How and where will our brands need to feature in the future in order to reach out to audiences?The concept of what a relationship looks like will continue to evolve and change.Audience expectation as customers – the arts need to be as sophisticated as the commercial sectorTHE IMPACT OF DIGITAL ON WHAT WE DO, HOW WE PRESENT IT, WHO CAN CONSUME IT AND WHERE will dramatically impact the sphere of influence of our organisations, and a CRM strategy needs to embrace the future – of relationships with people we may never meet or welcome to a physical venue.SO – hopefully we’ve convinced ourselves that CRM has a place for us. How do we start to develop a meaningful CRM strategy….
- #12 Important to remember that SMALL THINGS WILL MAKE A DIFFERENCEDon’t feel overwhelmed
- #17 DON’T DEVELOP A CRM STRATEGY IN ISOLATION OF YOUR BROADER MARKETING AND COMMUNICATIONS VISIONBrand:PromiseExperienceMemoryWho you are, what you want people to buy intoCRM:How you tell the right people, at the right time, in the right way and with the right messageBeing clear about what your proposition is is as important as having the means to deliver the messageIF YOU DON’T HAVE A CLEAR BRAND PROPOSITION THEN SPEND TIME GETTING THIS RIGHTWHAT ARE YOUR VALUESWHAT IS YOUR VISIONHOW WILL CRM HELP RE-ENFORCE WHAT YOU WANT PEOPLE TO THINK ABOUT YOU
- #25 Why tea and toilets?As much as you will hear today about the importance of data, segmentation, customer profiling and so onDon’t forget that CRM will only work well if other things in your organisation are well defined and running smoothly..RESEARCH – 55% of first timers and 36% of repeat attenders said one of the most important things that would seriously affect whether they chose to come back to a venue or whether they enjoyed their overall experience were the quality of the toilet facilities and the ability to buy a ‘nice cup of tea’. As much as we spend hours poring over data and trying to pigeon hole people into nice behavioural segments, we ignore the fact that we are dealing with REAL PEOPLE at our peril!!Your work can be underminedCannot view CRM in a siloYou have to work with others in your organisation to make CRM really work well.So – what is CRM?
- #33 Today I want to talk about how now, more than ever, your organisations brand can play an integral part in protecting you from the turbulent times we are living in.I was, for 10 years, the Director of marketing at London’s Barbican Centre and prior to that the Head of Marketing at the Southbank Centre. Since setting up my own consultancy 2 years ago I have worked with a wide range of clients in the UK, in Europe and in Asia includingOpera North (touring opera company)National GalleryNederlands Dans TheaterSerpentine GalleryBritish CouncilLocal AuthoritiesI am currently involved in developing the brand, marketing and communications strategy for the worlds largest cultural building programme – the West Kowloon Cultural District in Hong Kong. A massive project which will see 15 new cultural venues open over the next 10 years ranging from an 80,000 seat arena to a 100 seat black box theatre.All of these projects and clients have a common threadBRAND AND ITS ROLE IN SHAPING THE FUTURE SUCCESS OF THE ORGANISATION