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BDMA – ROCK 25/10/2012

      HOW ENGAGED IS YOUR CUSTOMER?
      A PRAGMATIC APPROACH FOR TEH BOLTON GROUP BY STRATICS
      FILIP CORNE




Stratics © 2012 – Customer Value by Customer Insight
Bolton Group
        •     The Bolton Group is a fast-growing
              international company
              manufacturing and marketing a wide
              range of high quality branded
              consumer goods worldwide. The
              Group brand portfolio is rich of more
              than 50 product lines ranging from
              Food and Household Care products
              through Adhesives & Glues to
              Personal & Health Care and Beauty
              Care products.


                                                                      2
Stratics © 2012 – Customer Value by Customer Insight
Stratics – Filip Corne
        • Founded 2008 by Kris Vranken                 • Managing Partner, Stratics
                                                       • 18 jaar ervaring
        • 6 x minimal 18 years experience                 – Marktanalyse
          in Database Marketing, CRM,                     – Database Marketing, CRM &
          Direct Marketing                                   Event Driven Marketing
                                                          – Data Quality, Data
        • Our Clients:                                       Management
                                                          – Customer Value by Customer
                                                             Insight
                                                       • AC Nielsen – [Sopres –
                                                         WegenerDM – WDM - D-trix ]   3
Stratics © 2012 – Customer Value by Customer Insight
What we preach...
    Don’t count the people you reach




                Reach the people that count
Stratics © 2012 – Customer Value by Customer Insight   4
STRA-tegy meets tac-TICS
                                                                STRATEGY
                                                        Get     Keep    Grow   Winback


                            Identify
                                                              DB Management
            TACTICS




                         Differentiate
                                                              Segmentation
                            Interact                   Event Driven / Cross Channel

                           Customize                               1 to 1
Stratics © 2012 – Customer Value by Customer Insight                                     5
Relevant Data  Customer Insight
                                                Engagement
                                                               RELATIONSHIP
                                                 Aspirations
                                                               KNOWLEDGE
                                                Transactions
                                                               INFORMATION

                                                   Contact
                                                       Info
                                                               BASIC DATA

Stratics © 2012 – Customer Value by Customer Insight                        6
Engagement
            –   What is it – What is the philosophy behind Engagement Modelling?
                           –   Who are our Ambassadors ?
                           –   Who is opening our newsletters
                           –   Which Channels are preferred?
                           –   Friends, Referals, STF, …
                           –   Social activity
                           –   -...
            –   What can it tell us?
                           –   Level of engagement towards Brands / Products / Dialogue /...
                           –   Social influence

             Personalised interaction (dialogue)
Stratics © 2012 – Customer Value by Customer Insight                                           7
Customer Engagement

            –   “Repeated interactions that strengthen the emotional,psychological or physical
                investment a customer has in a brand.” Richard Sedley, cScape

            –   “The level of involvement, interaction,intimacy, and influence that an individual has
                with a brand over time.” Brian Haven, Forrester

            –   “A deeper, more meaningful connection between the company and the customer,
                and one that endures over time.” The Economist Intelligence Unit

            –   Customer engagement (CE) refers to the engagement of customers with one another,
                with a company or a brand. The initiative for engagement can be either consumer- or
                company-led and the medium of engagement can be on or offline. Wikipedia
Stratics © 2012 – Customer Value by Customer Insight                                                    8
Engagement vs Customer Value
      C
                                                                            Platinum
      u
      s
      t                                                              Gold
      o
      m
                                                            Silver
      e
      r

       V
                                                       Bronze
       a
       l
       u
                                        NEW
       e



                                                       Engagement Score
Stratics © 2012 – Customer Value by Customer Insight                                   9
Your MDB – The spider in the web

                                                       Shop visit info
                                                                         Campaign Info
                     Contact Info



                Transactional Info                                             Social Info



                                                                             Website visit info
                      Couponning info



                                     And it’s not a picture...it’s a movie
Stratics © 2012 – Customer Value by Customer Insight                                              10
How to Start?
            –   Weigh every trackable Client action
                                   –    Coupon printing
                                   –    Coupon redemption
                                   –    E-mail open Click
                                   –    Website visits
                                   –    STF
                                   –    Social Actions
                                   –    Participation to Savings Action
                                   –    ....
            –   Maximize flow-back possibilites to the MDB
                                   –    Website Registration
                                   –    Facebook Connect
                                   –    ...
            –   Introduce the Time Effect
                                   –    Someone who engaged yesterday is stronger than someone who did 1 month ago

Stratics © 2012 – Customer Value by Customer Insight                                                                 11
Category       Reaction Type   Weight
                                        Home Care      website          0,05
                                        Home Care      contest          0,10
                                        Home Care      savingaction     0,10
                                        Home Care      refund           0,15
                                        Home Care      email            0,05
                                        Home Care      coupon           0,15
                                        Home Care      voucher          0,20
                                        Home Care      social           0,10
                                        Food           website          0,05
                                        Food           contest          0,15
                                        Food           savingaction     0,10
                                        Food           refund           0,10
                                        Food           email            0,10
                                        Food           coupon           0,10
                                        Food           voucher          0,20
                                        Food           social           0,10
                                        Pharma         website          0,20
                                        Pharma         contest          0,10
                                        Pharma         savingaction     0,20
                                        Pharma         refund           0,10
                                        Pharma         email            0,15
                                        Pharma         coupon           0,00
                                        Pharma         voucher          0,00
                                        Pharma         social           0,10

                                                                                12
Stratics © 2012 – Customer Value by Customer Insight
Number of        Average weight /   Consumer value at   Total consumer
                       Category Users
                                                                 consumers            consumer          entry level           value
                     NEW CONSUMERS --> no modification (100%)
                     Consumers with declared information
                                                                    €0,00                                                    €0,00
                     Consumers without declared information (for this group   we use average values based on research)
                       Home Care                                   14.692                1,16              €21,90         €373.030,93
                       Food                                          156                 1,15              €11,72          €2.093,97
                       Pharma                                         18                 1,16              €66,87          €1.402,39
                                                                 €14.865,20                                               €376.527,28
                     ACTIVE 1 CONSUMERS --> no modification (100%)
                     Consumers with declared information
                                                                       0                                                     €0,00
                     Consumers without declared information (for this group   we use average values based on research)
                       Home Care                                   16.138                1,42              €21,90         €500.436,42
                       Food                                          356                 1,18              €11,72          €4.900,23
                       Pharma                                         20                 1,31              €66,87          €1.797,49
                                                                 €16.514,56                                               €507.134,14
                     ACTIVE 2 CONSUMERS --> modification 75%
                     Consumers with declared information
                                                                    €0,00                                                    €0,00
                     Consumers without declared information (for this group   we use average values based on research)
                       Home Care                                    4.713                1,25              €51,03         €226.080,94
                       Food                                         4.261                1,14              €27,31         €99.347,27
                       Pharma                                       4.813                1,11              €155,81        €622.524,57
                                                                 €13.786,88                                               €947.952,78
                     ACTIVE 3 CONSUMERS --> modification 50%
                     Consumers with declared information
                                                                    €0,00                                                    €0,00
                     Consumers without declared information (for this group   we use average values based on research)
                       Home Care                                       9                 1,15               €9,40            €48,65
                       Food                                           40                 1,10               €5,03           €110,91
                       Pharma                                          0                 0,00              €28,70            €0,00
                                                                   €49,00                                                   €159,56
                     Grand Total (all consumers : declared + not declared)
                                                                 €27.551,00                                              €1.831.773,76
                                                                                                                                          13
Stratics © 2012 – Customer Value by Customer Insight
Impact Engagement score on Open Rate Email
60%                                                    50%    53%
                         37%          37%
40%

20%        10%                                                                    Open Rate %

  0%                                                                              Average Open Rate %
         1 X LOW        2 LOW       3 MEDIUM       4 HIGH    5 X HIGH

                                Engagement Class


                                                                            Impact Engagement score on Click 2 Open Rate Email
                                                                                                        52%       56%
                                                               60%
                                                               40%       26%         27%        30%
                                                               20%
                                                                                                                            Click 2 Open Rate%
                                                                0%
                                                                                                                            Average Click 2 Open Rate%
                                                                        1 X LOW     2 LOW    3 MEDIUM   4 HIGH   5 X HIGH

                                                                                         Engagement Class




                                                                                                                                            14
Stratics © 2012 – Customer Value by Customer Insight
Conclusion
            –   Engagement scores are a usefull Customer Insight Tool
            –   Starting, taking first steps and learning are key
            –    It’s an on-going process
            –   Industry – Sector – Brand specific
            –   Component measurability might be tricky
            –   Linking Component is even be more difficult
            –   To be judged by actual € (transactions)
Stratics © 2012 – Customer Value by Customer Insight                    15
Have Fun & Thank you for listening!


                                              ????
                                           Filip Corne        +32 475 320 328
                                           Managing Partner
                                                              filip@stratics.be

                                                              http://be.linkedin.com/in/filipcorne

                                                              @filipcorne


Stratics © 2012 – Customer Value by Customer Insight

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Dcongres bdma Engagement modelling

  • 1. BDMA – ROCK 25/10/2012 HOW ENGAGED IS YOUR CUSTOMER? A PRAGMATIC APPROACH FOR TEH BOLTON GROUP BY STRATICS FILIP CORNE Stratics © 2012 – Customer Value by Customer Insight
  • 2. Bolton Group • The Bolton Group is a fast-growing international company manufacturing and marketing a wide range of high quality branded consumer goods worldwide. The Group brand portfolio is rich of more than 50 product lines ranging from Food and Household Care products through Adhesives & Glues to Personal & Health Care and Beauty Care products. 2 Stratics © 2012 – Customer Value by Customer Insight
  • 3. Stratics – Filip Corne • Founded 2008 by Kris Vranken • Managing Partner, Stratics • 18 jaar ervaring • 6 x minimal 18 years experience – Marktanalyse in Database Marketing, CRM, – Database Marketing, CRM & Direct Marketing Event Driven Marketing – Data Quality, Data • Our Clients: Management – Customer Value by Customer Insight • AC Nielsen – [Sopres – WegenerDM – WDM - D-trix ] 3 Stratics © 2012 – Customer Value by Customer Insight
  • 4. What we preach... Don’t count the people you reach Reach the people that count Stratics © 2012 – Customer Value by Customer Insight 4
  • 5. STRA-tegy meets tac-TICS STRATEGY Get Keep Grow Winback Identify DB Management TACTICS Differentiate Segmentation Interact Event Driven / Cross Channel Customize 1 to 1 Stratics © 2012 – Customer Value by Customer Insight 5
  • 6. Relevant Data  Customer Insight Engagement RELATIONSHIP Aspirations KNOWLEDGE Transactions INFORMATION Contact Info BASIC DATA Stratics © 2012 – Customer Value by Customer Insight 6
  • 7. Engagement – What is it – What is the philosophy behind Engagement Modelling? – Who are our Ambassadors ? – Who is opening our newsletters – Which Channels are preferred? – Friends, Referals, STF, … – Social activity – -... – What can it tell us? – Level of engagement towards Brands / Products / Dialogue /... – Social influence  Personalised interaction (dialogue) Stratics © 2012 – Customer Value by Customer Insight 7
  • 8. Customer Engagement – “Repeated interactions that strengthen the emotional,psychological or physical investment a customer has in a brand.” Richard Sedley, cScape – “The level of involvement, interaction,intimacy, and influence that an individual has with a brand over time.” Brian Haven, Forrester – “A deeper, more meaningful connection between the company and the customer, and one that endures over time.” The Economist Intelligence Unit – Customer engagement (CE) refers to the engagement of customers with one another, with a company or a brand. The initiative for engagement can be either consumer- or company-led and the medium of engagement can be on or offline. Wikipedia Stratics © 2012 – Customer Value by Customer Insight 8
  • 9. Engagement vs Customer Value C Platinum u s t Gold o m Silver e r V Bronze a l u NEW e Engagement Score Stratics © 2012 – Customer Value by Customer Insight 9
  • 10. Your MDB – The spider in the web Shop visit info Campaign Info Contact Info Transactional Info Social Info Website visit info Couponning info And it’s not a picture...it’s a movie Stratics © 2012 – Customer Value by Customer Insight 10
  • 11. How to Start? – Weigh every trackable Client action – Coupon printing – Coupon redemption – E-mail open Click – Website visits – STF – Social Actions – Participation to Savings Action – .... – Maximize flow-back possibilites to the MDB – Website Registration – Facebook Connect – ... – Introduce the Time Effect – Someone who engaged yesterday is stronger than someone who did 1 month ago Stratics © 2012 – Customer Value by Customer Insight 11
  • 12. Category Reaction Type Weight Home Care website 0,05 Home Care contest 0,10 Home Care savingaction 0,10 Home Care refund 0,15 Home Care email 0,05 Home Care coupon 0,15 Home Care voucher 0,20 Home Care social 0,10 Food website 0,05 Food contest 0,15 Food savingaction 0,10 Food refund 0,10 Food email 0,10 Food coupon 0,10 Food voucher 0,20 Food social 0,10 Pharma website 0,20 Pharma contest 0,10 Pharma savingaction 0,20 Pharma refund 0,10 Pharma email 0,15 Pharma coupon 0,00 Pharma voucher 0,00 Pharma social 0,10 12 Stratics © 2012 – Customer Value by Customer Insight
  • 13. Number of Average weight / Consumer value at Total consumer Category Users consumers consumer entry level value NEW CONSUMERS --> no modification (100%) Consumers with declared information €0,00 €0,00 Consumers without declared information (for this group we use average values based on research) Home Care 14.692 1,16 €21,90 €373.030,93 Food 156 1,15 €11,72 €2.093,97 Pharma 18 1,16 €66,87 €1.402,39 €14.865,20 €376.527,28 ACTIVE 1 CONSUMERS --> no modification (100%) Consumers with declared information 0 €0,00 Consumers without declared information (for this group we use average values based on research) Home Care 16.138 1,42 €21,90 €500.436,42 Food 356 1,18 €11,72 €4.900,23 Pharma 20 1,31 €66,87 €1.797,49 €16.514,56 €507.134,14 ACTIVE 2 CONSUMERS --> modification 75% Consumers with declared information €0,00 €0,00 Consumers without declared information (for this group we use average values based on research) Home Care 4.713 1,25 €51,03 €226.080,94 Food 4.261 1,14 €27,31 €99.347,27 Pharma 4.813 1,11 €155,81 €622.524,57 €13.786,88 €947.952,78 ACTIVE 3 CONSUMERS --> modification 50% Consumers with declared information €0,00 €0,00 Consumers without declared information (for this group we use average values based on research) Home Care 9 1,15 €9,40 €48,65 Food 40 1,10 €5,03 €110,91 Pharma 0 0,00 €28,70 €0,00 €49,00 €159,56 Grand Total (all consumers : declared + not declared) €27.551,00 €1.831.773,76 13 Stratics © 2012 – Customer Value by Customer Insight
  • 14. Impact Engagement score on Open Rate Email 60% 50% 53% 37% 37% 40% 20% 10% Open Rate % 0% Average Open Rate % 1 X LOW 2 LOW 3 MEDIUM 4 HIGH 5 X HIGH Engagement Class Impact Engagement score on Click 2 Open Rate Email 52% 56% 60% 40% 26% 27% 30% 20% Click 2 Open Rate% 0% Average Click 2 Open Rate% 1 X LOW 2 LOW 3 MEDIUM 4 HIGH 5 X HIGH Engagement Class 14 Stratics © 2012 – Customer Value by Customer Insight
  • 15. Conclusion – Engagement scores are a usefull Customer Insight Tool – Starting, taking first steps and learning are key – It’s an on-going process – Industry – Sector – Brand specific – Component measurability might be tricky – Linking Component is even be more difficult – To be judged by actual € (transactions) Stratics © 2012 – Customer Value by Customer Insight 15
  • 16. Have Fun & Thank you for listening! ???? Filip Corne +32 475 320 328 Managing Partner filip@stratics.be http://be.linkedin.com/in/filipcorne @filipcorne Stratics © 2012 – Customer Value by Customer Insight