The document outlines a five step approach to strategic planning: 1. Preparation including a historical review and joint planning sessions. 2. Creation of a strategic plan based around business objectives and strategies. 3. Development of tactics to implement each strategy and prioritizing executions. 4. Creating an implementation roadmap to schedule tactics testing. 5. Documenting testing details like goals, targets, and analysis to optimize performance.

1. The Five Step Approach to
Creating Strategic Planning Road Maps
for Customer Acquisition Success
Russell Kern, President & Founder
KERN
Becky Graham, Marketing Group Manager
Auto Club Enterprises

2. Should You Do Strategic Planning?
• CMO not hearing you or uncertain where you
are going and why
• Crisis of the minute management
• Great plans go awry
• Funding elusive
• Funds squandered

3. Difference Between Strategy and Tactics
STRATEGY is done above the shoulders
TACTICS are done below the shoulders
Sun Tzu philosophy

5. Strategy: Protect Dress Shoes in the Rain
Tactic: Use mini-umbrellas on each foot

6. Strategy v. Tactic
Strategy
• Be the market share
leader in terms of sales in
the mid-market in our
industry.
Tactic
• Offer lower cost
solutions than
enterprise competitors
without sacrificing
white-glove service for
first three years of
customer contracts

7. Strategy v. Strategic Planning
Strategy
• A carefully devised plan
of action to achieve a
goal
• The art of developing
and carrying out such a
plan
Strategic Planning
• The planning of all
activities for the good of
the business to ensure a
competitive advantage
and profitability

8. Benefits of Strategic Planning
• Better communication within organization
• Improved resource allocation
• Development of innovations
– programs, strategies, tactics, channels, methods
• Clarity of focus of team
• Reduction in redundancies
• Easier to onboard new team members
• Results, Revenue and Implementation
Improvements
9% to 14% improvements of go to market operations within 120 days

10. Competitive Advantage Assessment
1. Barriers to Entry
– How easy is it for others to enter your market?
2. Threat of substitution
– Are there other products and services that can easily be substituted for
yours?
3. Bargaining power of buyers
– Are a small number of buyers responsible for a large portion of your
sales?
4. Bargaining power of suppliers
– Do you have multiple suppliers? Are there substitutes you can use?
5. Rivalry among current competitors
– How intense is the rivalry among the firms you compete with?

11. Five Steps To Strategic Success

12. Closed Loop Approach To Strategic Planning
Strategic Ideation and Mapping
Step 1 - preparation
Historical review, joint planning
sessions
Step 2 – output
Create strategic plan based
around business objective
Implementation Roadmap
Step 4 - output
Schedule implementations of each
tactic and test based on priority
Strategy Brief
Step 5 - output
Document testing details: goal,
target, timing, offers, creative, test
plan, market selection, media
allocations
Execution
Step 6 - implementation
Create, produce, approve
Results Analysis
Step 7- measurement
Measure performance, analyze
results and provide
recommendations for optimization
Step 3 - Output
Create tactics for a given
strategy. prioritize tactical
executions

13. Step 1: Effective Leadership
Who’s running the show?
The leader of the planning process must
be able to share knowledge and ideas
while transmitting a sense of urgency
and enthusiasm to others.

14. Team Work

15. Step 2: Select Implementation Approach
Two Approaches To Planning
• Top down:
– Given a business goal, determine the strategies and tactics to
make it happen
• Bottom up:
– Look at what is effective/efficient and build up to the goal

16. Top Down Model
Objective
Strategies
Tactics
Grow Revenue
Add and Retain
High-Value Customers
Existing New
Customer Experience Proposition
Basic Requirements
Multiple Ad Format
Placement
Relevancy
Differentiations
Personal Experiences
Multiple Channels
Mobile Market
Ad Placement Strategy Personalization Experience
Develop and Implement
Marketing Programs
Develop and Implement
Personalized Marketing Programs
Deliver Personalized
Experiences

17. Bottom Up Model
Objectives
Strategies
Channels
Tactics

18. Step 3: Determine Visualization Methodology

19. KERN’S StrategyMaster™ Visualization

20. Step 4: Run Ideation Session

21. Guidelines for Session Management
• Set objectives, then establish major strategic territories as
“placeholders”
• Generate as many tactics as possible for a
given strategy without evaluation
• Conduct one-on-one sessions to hone group generated
tactics
• Conduct “consensus” sessions with larger group
to review refined strategies and tactics, making adjustments
as needed

22. Step 5: Prioritization and Road Mapping
Planning and Testing
Roadmap
Quarter Q1 Q2 Q3 Q4
Campign Period M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 M16 M17
Mail Dates 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Offer Periods
1.1 AUDIENCE SPECIFIC
CONTACT/FREQUENCY
STRATEGIES
1.1.1.
1.1.1.1. Core
1.1.1.2. Leads
1.1.1.3.
1.1.1.4. Cancelled &
Pending
1.1.1.5.
1.1.2. Campaign
1.2 IDENTIFY & TEST
1.2.1. Test New Lists
1.2.2. Launch
‐‐ Leads
‐
‐‐ Cancelled & Pending
‐‐ Other
1.2.3. Explore
1.2.4. Develop Additional
Models
1.3 TARGET AND INCREASE
1.3.1. Model & Track
1.3.2. Test Creative
• All tactics evaluated
on:
– Biggest impact to
the business
– Fastest or optimum
time to implement
– Complexity to
implement
– Risk to implement

23. TKO Action Item
OTA Action Item
APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH
1.1 Improve Targeting
Begin Prospect Database
Discussions
Test alternating monthly resting
approach
Focus on top 20 performing lists
until degradation
Determine frequency/resting
strategy
List plan customized by market Competitive list exchange
Move list selection control from
franchisees to HQ
Analyze 6 month history of each
list
Analyze data, quality of lead
source for scalability
Develop contact frequency/
resting strategy
Confirm available universe of
top 20 B2B Partners
Segment house file into 3
categories: Lead, Registered no
Show, Attend no Sale
Build financial proformas for DR
print
Identify all potential low‐cost
lead gen sources (DR Print, DRTV,
Infomercial, Content excerpts in
Social Media)
Viral Marketing Campaign
Look at geo footprint of B2B
generated leads & radius to
locations
Secure 10% of file from each
franchise
Expand testing ground to
markets beyond Irvine
Validate positive test results Test DM only vs. DM & OBTM
Increase test quantity minimum
to 15K per cell
1.2 Develop Offer Strategy
Track response by segment
Change CD title to be customer
friendly (Secret Title)
Gas Card Early‐bird offer ‐ flash drive Nominal fee for PTW
Charge for PTW w/special guest
speaker
Magazine Free 3‐month Trial
Co‐funded gift (software on flash
drive)
1 Kindle per session as door
prize
One‐on‐one consultation on CD
title
Limited time access to SRC #10 Teaser OE‐Let
Trader's Library Discount, Trip
Drawing, Discovery Network
product, Money back guarantee,
1.2.2. Tailor Offer to Lifestyle or
Transitional Key Events
CD Content related to life
transition‐‐Change Your Life CD
Aspirational Book
1.3 Develop High‐Performance Creative Executions
Reserved exclusive spot Presenter Profile Drive online with PURLS Out of town Guest Speaker Financing Available
Force qualification in large
markets
Brand integrated package Survey‐2 step, email data to EC Investor Newsletter
Student testimonials w/photos ‐
message related to life transition
event
1.3.2. Test Unique "Breakthrough"
Formats
Check/voucher package refresh
1.3.3. Determine Contact Strategy
Determine Creative Rotation
Strategy
All‐Star event
build up
1.3.4. Develop Lead Package
Customer needs‐driven vs.
product driven message‐From
The Desk Of
1.4 Improve Conversion to Show
1.4.1. Develop Conversion Strategy by
Segment
Segment out & get counts by
tenure
Email Contact Strategy OBTM to PTW registrants
Automated VM Reminder
(reinforce offer)
Pre‐approval offer Mobile text reminder
Send physical gift (CD?) prior to
PTW date
1.4.2. Online Integration
1.4.3. Improve EC Conversion Rates
Public stack ranking of EC
performance (close rates, show
rates)
Detailed Package
(educate on products, benefits
based)
1.1.3. Develop List Testing
Methodology
OTA 2010‐11 Direct Marketing Roadmap
8/15/2010
1.3.1. Test Messaging and "Look &
Feel"
Customize landing pages to match creative & offer
1.2.1. Conduct Offer Testing
1.1.1. Improve Prospect List
Performance
1.1.2. Build & Optimize House File

24. Rebecca Graham’s
slides here
(Not available until conference)

26. Six Guidelines To Follow On Your Own
1. Set clear objectives
2. Get management buy-in to process
3. Know your results history
4. Focus on strategy
5. Don't try to get it all done in one session
6. Be patient

27. Guidelines to Making the Planning Process Work
• Planning calendar
– By business unit
– Schedule agency one-on-one planning sessions
– Participation mandatory
• Kick off with historical performance overview
• Ground rules for “safe” conversation:
• One clear overarching measureable goal
• Confirm team’s understanding between an objective, strategy
and tactic

28. Focus on Innovation
There’s no guarantee that innovative ideas will come from your
planning. However….
without a well defined planning process, you rarely come up with
new innovative ideas, programs and strategies.

29. Insights From 7 Years of Managing
Planning Processes
• Strategic plans and road maps as living document
– Repeat cycle every 90-to-120 days
• Spread out your testing
– Can’t do everything at once
• Flexibility and adaptability
– Changes to test and/or executional calendar
• Patience
– Consensus meetings take time

30. Strategic Planning White Paper
Go to
kernagency.combuildingblocks
for a free white paper

31. Connect with us at
kernagency.com, Facebook or Twitter
www.twitter.com/thekernorg
www.kernagency.com www.facebook.com/thekernorg

32. Discussion / Q&A

33. Thank You!
If you would like us to email you a copy of the
presentation, please leave your
business card up front.
Russell Kern
rkern@kernagency.com
818-703-8775