1. Katy Raines
CRM – Why
bother?
Christiansand, January 2012

2. CRM – Why bother?
 A reminder of CRM
 The changing marketing environment
 What CRM Can deliver
 Building a picture of the customer
 A Good CRM system

3. A reminder of CRM
1. Not all customers are equally valuable
2. It costs 5 times more to acquire a
customer than keep an existing one
3. Customers have different needs, which
need to be reflected in your marketing
communications with them

4. Frequency
1. All customers are not equally valuable
8+ times
per year 2%
60%
year
% of income in 1
5-7 times
per year 4%
2-4 times 25%
per year 26%
Once
15%
per year 68%
% of bookers in 1 year

5. Retention
2. Keeping customers costs 5x less
New audiences
Retained customers
Lost / lapsed customers

6. Segmentation
3. Customers have different needs
These people have
2% different needs
From these people
4%
26%
68%
% of bookers by frequency band

7. Ulster Orchestra,
Belfast
 ‘Old’ model
 Were sending all their customer the same thing – a
large 32-page season brochure, costing £1 per issue
 Return on investment 1.6:1
 ‘New model’
 Sent different customers different things
 For 90% of the customers this meant sending them
LESS information, but more RELEVANT
 Return on Investment increased to 21:1

8. The changing marketing
environment
Digital
explosion = Consumers
bombarded with content
Growthof tools and sites to ‘aggregate’
and make sense of content for
consumers to digest
Expectation of content matched to
need and preference
NB. This is no longer a ‘nice to have’ –
it’s essential!

9. email content - relevant
Tailored to match
my previous
purchases
General
message
to
everyone

10. Web content - relevant

11. And what about Social Media?
Customer
‘tunes in’ at
various points
Organisation
Broadcasts messages
Social Media
Sends direct
Organisation messages Customer
CRM / Direct
Marketing
They are different tools for different purposes

12. The results
Opportunity – to build loyalty and affinity
by reflecting their needs back to them
with relevant (and personalised) content
Threat – customers will ignore your
content as it isn’t relevant, and you will
lose them

13. What a good CRM programme can
deliver
 Increased frequency from existing customers
 Keeping more customers year on year
 Reduced marketing costs and improved
return on investment
 Brand affinity and loyalty
 Improved customer insight to aid business
planning and programme/product
development

14. Building a picture of the customer
Purchasing Social media behaviour
behaviour Re-tweets
Frequency Likes
Recency
Types of product
Response to
comms
Purchase
The Clicks
Customer Timing
Type
Attitudes and preferences
Stated comms preferences Profile
Stated product preferences Geography
Feedback / comments Demographics –
age, income etc.

15. Customised communications
Product choices
Picture of
the
customer
Timing of
comms
Type of comms

16. Symphony Hall Birmingham
600 events per year
The

Customer Mostly ‘one night’
shows
2200 seats
 over ½ million
audiences each year

17. Symphony Hall Birmingham –
challenges
Too much ‘choice’ and information for the
customer to make sense of
The
Wide range of events
Customer
Events changing daily – often going on sale
at late notice
Customers are annoyed if things sell out
before they’ve heard about them

18. Building a picture of the customer
Purchasing
behaviour
Contact details
gathered /
checked with
Response to
each purchase
comms
Record response
The to direct mail
Customer Record ‘click’
response to email
Attitudes and preferences
Data sign-up process gathers Profile
preferred communication Geo-demographic
method information ‘appended’
Later emails encourage to record to show likely
customers to tell us product age, income etc.
preferences (eg. classical)

19. Different communications
Classical Music audiences
- Season confirmed 1 year ahead
- Like to see ‘full programme’ to make selections
- Like printed brochures rather than digital
Picture of
the
customer
- ‘Classical music’ brochure sent by post 3 times
per year
- Personalised booking form and incentives to
subscribe early
- Email used as a reminder (but sparing)

20. Different communications
Rock and Pop audiences
- Events getting confirmed all the time
- Big names can sell out in a day
- They don’t want to miss the chance to book
Picture of
- Are used to 100% digital communications from
the
competitors customer
- Weekly ‘On sale’ announcements, and ‘don’t miss
this month’
- Reducing / minimal printed communications

21. Personalised e-
bulletins
Picture of
the
customer
Events ‘match’ customer profile
based on:
- Previous product purchase
- Stated product preferences
- Clicks on previous emails
Other events listed here

22. MARKETING EFFECTIVENESS
Marketing ROI (all tix) Spend per seat sold (all tix)
14.00
£1.40
13.50
£1.35
13.00
£1.30
12.50
£1.25
12.00
11.50 £1.20
11.00 £1.15
2008-09 2009-210 2010-11 2008-09 2009-2010 2010-11

23. What do you need from a CRM
system? (5 steps)
 Initial
and ongoing data capture linked to
purchasing behaviour
 Sensible segmentation and data analysis:
 Frequency/Recency
 Value
 Product type
 Tools
 To implement personalised approach
 To measure effect

24. The CRM process
1. Gather data
2. Analyse and segment
3. Implement
Testing and
- Product proposition
- Communications methods
refining
4. Measure

25. The picture gets more detailed
Purchasing
behaviour
Frequency
Recency
Types of artform /
Response to
product
comms
Purchase
The Clicks
Customer Timing
Type
Attitudes and preferences
Stated comms preferences Profile
Stated Artform / product Demographics –
preferences age, income etc.
Feedback / comments

26. The messages get more effective
Product choices
Picture of
the
customer
Timing of
comms
Type of comms

27. Good luck!
Katy Raines
Partner, Indigo-Ltd
www.indigo-ltd.com
katy.raines@indigo-ltd.com
twitter: @katyraines