The document discusses the implementation of trigger-based marketing to enhance customer loyalty, emphasizing its effectiveness compared to traditional marketing methods. It outlines critical success factors, including the need for real-time decision-making tools and the importance of speed in response to customer actions. Additionally, it addresses common misconceptions and roadblocks organizations may face when adopting this approach.

1. Implementing Trigger-based
Marketing to Drive
Customer Loyalty
Adam Ramshaw
Director
aramshaw@genroe.com
Genroe (Australia) Pty Ltd
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T: +61 2 8821 6800
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© Genroe (Australia) Pty Ltd. All Rights Reserved @Genroe

2. Customer Loyalty Management
INITIATE LISTEN UNDERSTAND DESIGN ACT
• Assess current • Understand • Analyse the • Plan the • Implement
approaches what your data to identify required
and capabilities customers want Customer initiatives
Loyalty Drivers • Holistic; or
• Engage the • Measure how • Specific
organisation well are you • Calculate the
delivering Incremental • Target the
Value of highest value
Opportunities changes to the
business
We help our clients to generate more value from
their existing customers.
2

3. First some context
• What we’re talking about today
– Trigger based marketing
– Event driven marketing
– Event based marketing
• Context
– Pre-sale
• Acquisition and Inbound marketing
– Lead nurturing
– Post-Sale
• Customer management
– Retention
– Up-sell
– Cross-sell

4. Today
• Value Proposition
– The value can you expect to drive within your organisation by
implementing trigger-based marketing
• Getting Started
– The tools, processes, skills and approaches you need to be
successful
– The first steps you need to take to start making change in your
business
• Critical Success Factors
– The factors that will drive your long term success
• Roadblocks
– The roadblocks (real and perceived) to overcome in order to be
successful
4

5. Event based marketing is more effective
EBM programs are typically 2 to 12
times more effective than traditional
direct marketing programs.
5
Source: http://www.customerthink.com/article/event_based_marketing_banks_changes_behavior

6. How much more effective…
• OCBC Bank
– Customer acquisition
• EBM campaigns have achieved conversion rates of up to 45%.
– Customer Satisfaction
• One service event with SMS support increased customer satisfaction by
20% over the control
• FBTO (Dutch insurance company)
– Website visitors that calculated premiums but did not purchase
were outbound contacted and converted at 33%
Source: http://www.1to1media.com/View.aspx?DocID=29738
6
http://www.magiq.com/media/news/fbtoseemagiq.aspx

7. How much more effective…
• Nab
– Identified more than 3m sales opportunities that have led to about
500,000 customer conversations: 16%
• Large Regional US Bank
– Within the first week of a recent EBM deployment
• Identified more than 3,000 trigger events with a better than 40%
success rate
• 5,000 "on-boarding" triggers, of which 1,500 generated incremental
business
Source: http://www.americanbanker.com/btn_issues/19_6/-280136-1.html
7
http://www.customerthink.com/article/event_based_marketing_banks_changes_behavior

8. How much more effective…
• ING
– Response Rates
• Average rates considerably higher than traditional direct marketing.
• For savings accounts
– Response rates are as high as 60%.
– €20 million p.a. earnings increase from direct marketing
effectiveness.
– Lower direct marketing costs
• Reduction in direct marketing costs of 35% per year.
• Onlineshoes.com
– Launched trigger based abandoned cart emails at 3 day mark
• 400% increase in open rate
• 1,000% increase in click-throughs
• 1,200% increase in conversions
• 1,000% increase in revenue per email
Source: “ING Delivers Personalized Product Offers Across Channels In Real Time”, Forrester Research Inc 2009
8
http://www.retailonlineintegration.com/article/trigger-based-emails-help-onlineshoescom-grow-its-revenues-416386/1

9. How much more effective…
9
Source: “Trigger Marketing: Timing is Everything”, Aberdeen Group, 2008

10. EBM delivers results
• Increased conversion rate
• Lower costs
• But is only a part of an integrated approach
– Lifecycle
– EBM
– Segmentation
10

11. Getting Started requires a change in approach
• The old approach
– “We have a campaign
Campaign Campaign Campaign now who can we send it
2 3 4 to?”
• The campaign a
Campaign Campaign
customer receives,
1 5 depends on
– Which campaign is being
run
– When it is run
– How long since the last
campaign contact
– etc.
• Customers are targeted
with sales messages.
11

12. Event Based Marketing Approach
• The approach is
– “We react to the
customer’s actions and
contact them when their
actions indicate we
should.”
• The campaign a customer
receives depends on
– What they have done
Campaign
1
Campaign
5
– What products they hold
– etc.
• Customers are engaged in
a conversation relevant to
Campaign Campaign Campaign what they have purchased
2 3 4
and how they are
interacting with us.
12

13. Prerequisites
• Minimum practical requirements
– Ability to monitor customer behaviour
• Customer database
– Ability to decide what to do
• Real time, rules based decisioning engine
– Ability to execute in a timely fashion
• Campaign management software
• Email marketing automation software
• Ability to input to face to face / contact centre channel
– Ability to report on what happened
• Nice to haves
– Centralised customer database
– Data integration and hygiene software
– Cross-channel integration infrastructure
– Data mining software
– Predictive analysis expertise
– Centralised product/services database
13
Source: Adapted from “Trigger Marketing: Timing is Everything”, Aberdeen Group, 2008

14. Developing your first campaigns
Identify
Triggers
Create
Optimise
Responses
Test /
Operationalise
Evaluate
14

15. Triggers
• Brain storming
– Easier
– Place to start
– Make a big list!
– What treatments
are possible?
– Discard what
cannot be actioned
• Data analysis
– Harder
– Needs more skills
– Longer term
insights
15

16. Types of triggers
• Customer initiated
– Purchases
– Deliveries
– Services contacts
– Account openings/closures
– Web hits
• Reactionary
– Things a customer does in reaction to what you have done
• Clicking through to links in your email newsletter
• Analytic
– Non-obvious insights that you glean from the data
• Scoring, statistical or other models
– As simple as RFM or as complex as you like
16

17. Some really useful new approaches….
For more information:
“Calculating Retail
Sales Forecasts,
Customer Life Time
Value, and other
customer variables”
http://bit.ly/oSg0Xy
17
Source: “Probability Models for Customer-Base Analysis”, Peter Fader, Bruce Hardie, 2009

18. Create the response
• What will be done?
18

19. It is not always clear what to do?
• Customer deposits $21,564 in their transaction account?
– Have they just been made redundant?
– Sold their car?
– Sold some shares?
– Moved money from another bank?
– Received an insurance payout?
19

20. Create the response
• What will be done?
• Can it be done?
• How will it
be done?
– Inbound
– Outbound
• Who will
do it?
– How will they
know to do it?
20

21. Evaluate Success
• Set up measurement process early
– Identify goals early
– Create a dashboard
• Point in Time Campaign Vs Event Campaign Measurement
21

22. Operationalise
• Automate
– The number of simultaneous
campaigns will explode
– Many more, much smaller
campaigns
– You will need to automate.
• Customer Contact Framework
– The complexity of customer contact
will explode
– You need to set yourself up for
success.
22

23. The Customer Contact Framework prioritises and control
customer contact
A comprehensive, set of
rules to define when and
how a customer can be
Contact
contacted by the
Rules organisation.
Customer
Contact
Framework
A segment by A comprehensive
segment, cell by history of every
cell, plan for the attempted,
campaign
Contact Contact unsuccessful and
contacts that a Calendar History successful contact
customer will that the
receive over their organization has
lifecycle. with a customer.
23

24. Optimising
• Only after you get the basics done
• Question to answer:
– If I have more than one treatment
that I can execute for this customer
which should I choose?
24

25. Getting started, in summary
• Start simple
Identify
• Use what you already have Triggers
available
– Data wise
– Communication wise
Create
Optimise
Responses
• Prepare for long term
requirements
Operationalise Test / Evaluate
• Dedicate some marketing
resources to making it
happen
25

26. Critical Success Factors
• Pick the right channel for the right
trigger
– Black box triggers are better
implemented via automated systems
• Inbound Channels
Pre-think the actions
• Speed / Timing
– “The shelf-life of an EBM trigger is
approximately three days, and
success rates fall sharply during that
period”
– You must be able to react quickly.
26
Source: “Event-Based Marketing Helps Banks Pinpoint and Benefit From Changes in Customer Behaviour”, Dan Smith, 2008

27. How important is speed? It can be very important!
27
Source: The Lead Response Management Study, 2009

28. Critical Success Factors
• Technology requirements
– Ability to monitor customer behaviour
• Customer database
– Ability to decide what to do
• Real-time, rules based, decisioning
engine
– Ability to execute in a timely fashion
• Campaign management software
• Email marketing automation software
• Ability to input to face to face / contact
centre channel
– Ability to report on what happened
28
Source: Adapted from “Trigger Marketing: Timing is Everything”, Aberdeen Group, 2008

29. Measurement is critical to long term success
29
Source: “How Interactive Marketers Should Rethink Traditional Approaches To Campaign Management”, Forrester, June 2011

30. What should you report on?
30
Source: “Trigger Marketing: Timing is Everything”, Aberdeen Group, 2008

31. Summary of Critical Success Factors
• Pick the right channel for the right
trigger
• Inbound Channels:
Pre-think the actions
• Speed / Timing
• Have the right tools
• Measure success
31
Source: “Event-Based Marketing Helps Banks Pinpoint and Benefit From Changes in Customer Behaviour”, Dan Smith, 2008

32. Roadblocks (that aren’t really there)
• “Determining what treatment to perform can
be really hard!”
– But once it’s done you can reap the benefits
for the long term.
• “Our data is not good enough”
– It is never perfect but it is always good
enough to do something
• “How do we pull all of the data into one
place so we can get a whole of customer
view?”
– This one is tough, no doubt, but start with
what you have and build.
32

33. Roadblocks (that aren’t really there)
• “I’m already implementing a new acquisition
campaign every quarter/month/week and
that’s really tough how am I going to build
400!”
– The incremental approach means that you
just keep adding to the pile.
– You need to focus on repeatable,
automatable, higher volume, triggers.
– Don’t try to “boil the ocean” – focus your
efforts
33

34. Roadblocks (that aren’t really there)
• “Won’t my customers be unhappy if they
think we’re looking over their shoulder all
the time?”
– It all depends on how you deliver the
treatment.
• “We really can’t afford all of the new
systems required”
“We can’t get on the IT roadmap for 12
months.”
– Most systems are deliverable as Software as a
Service so costs are operational and IT does
not need to get as involved.
– Think incremental
34

35. Today
• Value Proposition
– EBM programs are typically 2 to 12 times more effective than
traditional direct marketing programs.
• Getting Started
– Start simple
– Use what you already have available
– Prepare for long term requirements
– Dedicate some marketing resources to making it happen
• Critical Success Factors
– Report, report, report
– Speed/Timing
• Roadblocks
– Are not nearly as large as they may seem
35

36. Implementing Trigger-based
Marketing to Drive
Customer Loyalty
Questions
(I will email a copy of this presentation to
everyone that registered.)
Contact Us
T: +61 2 8821 6800
info@genroe.com
www.genroe.com
@Genroe