Customer Data How to add value to it Thom Poole Head of Portal Customer Interaction © Thom Poole 2005 Knexus – May 2005
Customer Data – How to add value to it <ul><li>Business objectives </li></ul><ul><li>Who is your customer? </li></ul><ul><...
Why I’m here <ul><li>Web & e-marketing trailblazer since 1992  </li></ul><ul><li>Taught e-marketing for 7 years  </li></ul...
What are your business objectives? 1 © Thom Poole 2005
What are your business objectives? <ul><li>What are the business objectives? </li></ul><ul><li>Drive revenue and usage for...
Who is your customer? 2 © Thom Poole 2005
Your customers <ul><li>Identify them </li></ul><ul><li>Online demographics are different to offline </li></ul><ul><ul><li>...
Target your customers  <ul><li>What makes them tick? </li></ul><ul><li>Marketing = exploitation! </li></ul><ul><li>It is n...
Attract them … <ul><li>‘ People buy from their friends’ </li></ul><ul><li>Trust builds loyalty  </li></ul><ul><li>Trust wi...
Encourage interaction 3 © Thom Poole 2005
TRUST! Trust lifecycle adapted from Reynolds (2000)
Getting the customer to return <ul><li>Have compelling, up-to-date content </li></ul><ul><li>Hold competitions (and learn ...
Relationship marketing <ul><li>We want it It’s profitable, makes us more relevant to customers and is at the heart of mark...
When customers control the relationship
Tracking 4 © Thom Poole 2005
Shopping trolley abandonment <ul><li>Are they really buyers? </li></ul><ul><li>Change of mind? </li></ul><ul><li>Bored or ...
Cost of conversion <ul><li>E-mail is a cheap medium, but there is still a cost associated with the development, copywritin...
Integrated campaigns – the way to go
Knexus – May 2005 © Thom Poole 2005
Commercial factors 5 © Thom Poole 2005
Existing customers <ul><li>&quot; Raising customer retention rates by five percentage points could increase the value of a...
Frequency of contact <ul><li>How many e-mails are too many? </li></ul><ul><li>How often is too often? </li></ul><ul><li>Wh...
Driving sales Figures – o2.co.uk Apr. 2004 Unique Visitors 3.3 mill Referrals to shop 40% Basket abandonment 55% Misc. err...
Next steps 6 © Thom Poole 2005
Aligning systems Shops Web Care Mktg
Consistent communications <ul><li>Build a trusted brand image across all media and all chann els </li></ul><ul><li>Be cons...
Senior management buy-in <ul><li>This can take investment </li></ul><ul><li>It needs controlling </li></ul><ul><li>It need...
Thom Poole Head of Portal Customer Interaction [email_address] Customer data – How to add  value to it Thank You © Thom Po...
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Customer Data - How to add value to it

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Customer Data - How to add value to it

  1. 1. Customer Data How to add value to it Thom Poole Head of Portal Customer Interaction © Thom Poole 2005 Knexus – May 2005
  2. 2. Customer Data – How to add value to it <ul><li>Business objectives </li></ul><ul><li>Who is your customer? </li></ul><ul><li>Encouraging interaction </li></ul><ul><li>Tracking </li></ul><ul><li>Commercial factors </li></ul><ul><li>Next steps </li></ul>
  3. 3. Why I’m here <ul><li>Web & e-marketing trailblazer since 1992 </li></ul><ul><li>Taught e-marketing for 7 years </li></ul><ul><ul><li>e-Commerce </li></ul></ul><ul><ul><li>Web design for marketers (and the terrified!) </li></ul></ul><ul><ul><li>CRM </li></ul></ul><ul><li>Written papers on ‘Data Privacy’ , ‘The Marketing Art of the Opt-in’ and ‘Trust in Business and Marketing’ </li></ul><ul><li>Written a book on ‘ethical e-marketing’ called ‘Play It By Trust’ </li></ul><ul><li>Head of Portal Customer Interaction at O 2 – focus on customer centricity and ethics </li></ul>
  4. 4. What are your business objectives? 1 © Thom Poole 2005
  5. 5. What are your business objectives? <ul><li>What are the business objectives? </li></ul><ul><li>Drive revenue and usage for mobile phones and the network </li></ul><ul><li>What are the e-business objectives? </li></ul><ul><li>To provide customers with a user-friendly sales and support channel </li></ul><ul><li>How do the e-business objectives fit into business? </li></ul><ul><li>Providing a sales channel at very low servicing cost to increase income, and provide self-help customer care at very low cost. Will also be used to gather and maintain customer profiles for CRM activities </li></ul>
  6. 6. Who is your customer? 2 © Thom Poole 2005
  7. 7. Your customers <ul><li>Identify them </li></ul><ul><li>Online demographics are different to offline </li></ul><ul><ul><li>Ambitious Techies </li></ul></ul><ul><ul><li>Budgeters </li></ul></ul><ul><ul><li>Professional Functionals </li></ul></ul><ul><ul><li>Status Seekers </li></ul></ul><ul><ul><li>Young Socials </li></ul></ul>
  8. 8. Target your customers <ul><li>What makes them tick? </li></ul><ul><li>Marketing = exploitation! </li></ul><ul><li>It is no good developing applications for the elderly if they are unlikely to use them </li></ul>“ I don’t know who you are, I don’t know your company, I don’t know your company’s products, I don’t know what your company stands for, I don’t know your company’s customers, I don’t know your company’s record, I don’t know your company’s reputation, Now – what was it you wanted to sell me?” MORAL: Sales start before your salesman calls – with business publication advertising
  9. 9. Attract them … <ul><li>‘ People buy from their friends’ </li></ul><ul><li>Trust builds loyalty </li></ul><ul><li>Trust will drive profit </li></ul>Trust-focused value chain (adapted from Porter, 1998) “ .. how could we get past the Catch 22 at the start of every relationship – I don’t know you, so why should I trust you? As well as being involving, dialogue also has a powerful side effect – it builds trust “ anon
  10. 10. Encourage interaction 3 © Thom Poole 2005
  11. 11. TRUST! Trust lifecycle adapted from Reynolds (2000)
  12. 12. Getting the customer to return <ul><li>Have compelling, up-to-date content </li></ul><ul><li>Hold competitions (and learn from the answers/interests) </li></ul><ul><li>Use online surveys (again, learn from the results) </li></ul><ul><li>Feature customer contributions – communities are big </li></ul><ul><li>Answer questions on your site </li></ul><ul><li>Use a newsletter to encourage them back </li></ul><ul><li>Provide a customer area for forums, self-help, community </li></ul>
  13. 13. Relationship marketing <ul><li>We want it It’s profitable, makes us more relevant to customers and is at the heart of marketing theory </li></ul><ul><li>“I don’t want a relationship with your company” PROBLEM – what do you do now? </li></ul>
  14. 14. When customers control the relationship
  15. 15. Tracking 4 © Thom Poole 2005
  16. 16. Shopping trolley abandonment <ul><li>Are they really buyers? </li></ul><ul><li>Change of mind? </li></ul><ul><li>Bored or blocked? </li></ul><ul><li>Registration barrier? </li></ul><ul><li>True cost displayed late? </li></ul><ul><li>Will come back … sometime! </li></ul><ul><li>What can we do about it? </li></ul><ul><li>Sample </li></ul><ul><li>Ask </li></ul><ul><li>Track </li></ul>S.A.T
  17. 17. Cost of conversion <ul><li>E-mail is a cheap medium, but there is still a cost associated with the development, copywriting, etc </li></ul><ul><li>Response rates can be higher than offline because of the immediacy of click through – O2 sees between 7 and 15% </li></ul>E-mail out £ Click through Conversion £
  18. 18. Integrated campaigns – the way to go
  19. 19. Knexus – May 2005 © Thom Poole 2005
  20. 20. Commercial factors 5 © Thom Poole 2005
  21. 21. Existing customers <ul><li>&quot; Raising customer retention rates by five percentage points could increase the value of an average customer by 25 to 100 percent ” Frederick F. Reichheld (1996) </li></ul><ul><li>It costs 5 times more to get a new client than to keep an existing one and existing clients are much more profitable than new ones </li></ul><ul><li>So … </li></ul>Cross-sell Up-sell
  22. 22. Frequency of contact <ul><li>How many e-mails are too many? </li></ul><ul><li>How often is too often? </li></ul><ul><li>When does a requested mailing become SPAM? </li></ul><ul><li>Let your customers decide and control the frequency </li></ul>9 Less than once a month 33 Once a month 17 Once every two weeks 19 Once a week 9 2 or 3 times a week 6 Once a day 3 More than once a day % Marketing Comms frequency
  23. 23. Driving sales Figures – o2.co.uk Apr. 2004 Unique Visitors 3.3 mill Referrals to shop 40% Basket abandonment 55% Misc. errors 12%
  24. 24. Next steps 6 © Thom Poole 2005
  25. 25. Aligning systems Shops Web Care Mktg
  26. 26. Consistent communications <ul><li>Build a trusted brand image across all media and all chann els </li></ul><ul><li>Be consistent about your relationship with your custome r </li></ul><ul><li>Use an integrated approach to all marcoms </li></ul>
  27. 27. Senior management buy-in <ul><li>This can take investment </li></ul><ul><li>It needs controlling </li></ul><ul><li>It needs cross-functional support, and take up </li></ul><ul><li>Add value to your customer data and you will add value to your relationship </li></ul><ul><li>This will build trust </li></ul><ul><li>Being trustworthy is profitable </li></ul>
  28. 28. Thom Poole Head of Portal Customer Interaction [email_address] Customer data – How to add value to it Thank You © Thom Poole 2005

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