Praag 280809v 0.9

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  • Thank you for inviting me As far as i know i am not inveted by the “mexiacan flu” so questions can be asked during my presentation
  • Last weeks I am having troubles concetrating at work, Why Why Because we are building one of the greenest office buildings in the netherlands (almost CO2 neutral) Approximatley 2 milion customers It’s origins go way back,
  • As a traditional energy distributor We are moving up and down the value chain Investing in green production And looking for customers who are willing to produce energy or take part in for example wind projects
  • 65k overeenkomsten, waarom zo selectief?
  • Competitive irrelevance --- > increasing consumer distrust?! Distinctive = onderscheidend
  • A customer doesn’t see the difference Here are some screen shots of different commercials of dutch energy suppliers, pick your favourite!
  • Competitors analysis An energy company can differentiate on many things Some are relevant, some not. But it differs per consumers This is in general the case in the dutch market
  • Because we are not selling patotous are we? Altough there is a lot of differentiation (french friend, baked, etc
  • It’s not only an effective sales channel what makes the world go round, it’s all of them together
  • ENECO Retail uses different sales channels to win consumers
  • Target Warm campaigns  endorsement! greenpeace says… Targed segmented response, with consumers responded to this campaign and where are the look-a-likes Combine total portfolio in offering (zonnepanelen en levering or ketel & energy product) Event marketing, moment van verhuizen, uithuizen is important, nieuwbouw Combined database; installatiebedrijven en geen retail klant?
  • First Letter 2,4% 1st reminder 1,7% 2nd reminder 0,5% TM 8,3%
  • First Letter 2,4% 1st reminder 1,7% 2nd reminder 0,5% TM 8,3%
  • Is everyone familiar with door 2 door parties? Check your data, don’t send disceased persons “a welcome back”
  • Is everyone familiar with door 2 door parties?
  • First Letter 0,7% 1st reminder 2,2% TM 2,2%
  • Conversion ratio (overall) 1.43%
  • Once you have clicked we find you
  • The connection between search and display audience questions and advertiser answers. This new Toyota – Does it come with GPS – the new Toyota has GPS built in Is it safe for kids – the new Toyota has titanium braces and airbags Is it environmentally friendly – does great miles to gallon and has low CO emissions. Eventually using dynamic data, like mash-ups sequencing against search… I can do all of this without EVER visiting a clients website. This is a true digital experience – a conversation between advertiser and consumer!!! This is ADVERTSING 2.0!!!
  • If you have a proposition based on cunsumer insight And create a nice mailpack based on the above Make sure that the sales person (tm, d2d) tells the same sales pitch And if so, makes sure he acts in line with your brand profile If so make sure that your systems, switching, billing machines convince the customer he has done right1
  • Target Warm campaigns  greenpeace says… Targed segmented response, with consumers responded to this campaign and where are the look-a-likes Combine total portfolio in offering (zonnepanelen en levering or ketel & energy product) Event marketing, moment van verhuizen, uithuizen is important, nieuwbouw Combined database; installatiebedrijven en geen retail klant?
  • Target Warm campaigns  greenpeace says… Targed segmented response, with consumers responded to this campaign and where are the look-a-likes Combine total portfolio in offering (zonnepanelen en levering or ketel & energy product) Event marketing, moment van verhuizen, uithuizen is important, nieuwbouw Combined database; installatiebedrijven en geen retail klant?
  • Praag 280809v 0.9

    1. 1. 2009 Prague Energy Meeting Eneco Retail 2009 v 0.9 The Netherlands Marketing Retail Jorg Verweij Manager Marketing & Sales
    2. 2. Contents 1 2 3 4 Eneco Company Profile Market analysis & the effect of the crisis Ways to optimize sales channels Creating different propositions and channels
    3. 3. 1 Company profile <ul><li>About Eneco </li></ul>
    4. 4. <ul><li>Eneco stands for energy continuity in a sustainable manner </li></ul><ul><li>Two million customers, >20% Market share </li></ul>Eneco Company Profile Reliable, entrepreneurial, professional Greenpeace states: Eneco the cleanest energy company in NL
    5. 5. 2 <ul><li>Market Developments </li></ul><ul><li>Impact of crisis </li></ul>Market Analysis
    6. 6. Market trends/ facts in the Netherlands <ul><li>Growing number of customers switch. </li></ul><ul><li>Market churn in 2009 10% -15%. </li></ul><ul><li>But Dutch Government claims switch intentation goes down! </li></ul>1.Switches increase ! 2.intention goes down Push channels under pressure <ul><li>Existing push channels are more regulated, release call me not register oktober 2009 ->protect themselves </li></ul><ul><li>High cancellation rates in cooling period </li></ul>Push market <ul><li>Switching is in approximately 70% of cases “forced” </li></ul><ul><li>Large numbers of acquisition means less “customer quality” at a higher price </li></ul>1 2 3 4 Media spendings are increasing <ul><li>Media attention, competitors rising budgets (2009 expenditure, 200% higher as in 2008!) </li></ul>Acquisition power ‘green’ is marginal 5 <ul><li>Acquisition sustainibility in mind customer limited </li></ul><ul><li>Customers are environmentally conscious, </li></ul><ul><li>but don’t want to act or pay. </li></ul><ul><li>Price perception is primary reason for switching </li></ul>The result of the above
    7. 7. the consumer THE CONSUMER The dutch consumer is annoyed
    8. 8. <ul><li>Energy providers call in chorus that they are the cheapest, is this so? </li></ul><ul><li>This market approach is growing distrust of suppliers . </li></ul><ul><li>Name recognition, service and distinctive crucial for recruitment ambitions </li></ul>Competitive irrelevance Is this because energy is a commodity? Or is this caused by the way we all approach the market? 7 Market trends/ facts in the Netherlands
    9. 9. … differentation is tough but crucial
    10. 10. The consumer doesn’t see the difference <ul><li>- Price </li></ul><ul><li>environment </li></ul><ul><li>Complaints </li></ul><ul><li>Betrouwbaarheid </li></ul><ul><li>safety </li></ul><ul><li>Speed </li></ul><ul><li>Brand </li></ul><ul><li>expertise </li></ul><ul><li>appearance </li></ul><ul><li>Knowledgeable </li></ul><ul><li>empatie </li></ul><ul><li>etc </li></ul>Zone of competitive irrelevance Typical supplier (not good not bad) Low High Market average Zone of competitive irrelevance Value Curve “ Ideal” Value Curve we have a winner!!
    11. 11. … differentation is tough but crucial
    12. 12. Impact of economic crisis to the overall energy market… Increase Price sensitivity with regard to big spendings This increases switching intention <ul><li>Investment in energy decrease are being postponed ( new solar power, CV kettle) </li></ul><ul><li>Instead of buying a house they buy a new tv set! </li></ul><ul><li>Increase in bad debt </li></ul>Description of trends <ul><li>Total energy consumption has decreased by 5%. Mainly through a decrease in industry production </li></ul><ul><li>No changing consumer behaviour related to consumption </li></ul><ul><li>Customers are increasingly aware of their spending. </li></ul><ul><li>A financial crisis is a typical period when consumers re-evaluate their regular buying process. Their preferences change. </li></ul><ul><li>Due to decrease demand the overall oil price went down the first part of 2009, results in consumer price decrease of 25% </li></ul>Drop of oil prices Decrease in energy consumption Increased awareness Increased price sensitivity Postpone large spendings
    13. 13. ……… 3 <ul><li>Ways to optimize sales channels </li></ul>Sales channels
    14. 14. The basic principles remain KEY 1 + 1 = 3 <ul><li>Conversion </li></ul><ul><li>Gross Margin </li></ul><ul><li>Profit </li></ul><ul><li>Branding, Share of Voice </li></ul><ul><li>Differentiation </li></ul><ul><li>Image </li></ul><ul><li>Sponsoring </li></ul><ul><li>Partnerships </li></ul><ul><ul><li>Listen to customers and </li></ul></ul><ul><ul><li>market trends </li></ul></ul><ul><ul><li>Effective use of spend </li></ul></ul><ul><ul><li>Efficient sales channels </li></ul></ul><ul><ul><li>Operational excellence </li></ul></ul>+ Nett Result Brand Preference Marketing & Sales Effectiveness
    15. 15. Pull Push Outbound Promo Teams Direct Mail D2D Online Inbound Sales Sales Channel improvements have been identified - through-the-line campaigns are key <ul><li>Improve quality of records </li></ul><ul><li>Training staff </li></ul><ul><li>Campaign information </li></ul><ul><li>New web site </li></ul><ul><li>Dedicated marketing team </li></ul><ul><li>Improve funnels – improve experience </li></ul>Joint Promotions <ul><li>Improve quality of records </li></ul><ul><li>Training staff </li></ul><ul><li>Campaign information </li></ul><ul><li>Clothing </li></ul><ul><li>Commissions </li></ul><ul><li>Efficient routing </li></ul><ul><li>Based on leads </li></ul><ul><li>Benchmark </li></ul><ul><li>Dedicated channel manager </li></ul><ul><li>Local presence - visibility </li></ul><ul><li>Event marketing </li></ul><ul><li>Supporting overall campaign </li></ul><ul><li>Partnering with large companies </li></ul><ul><li>Retailers, banks etc </li></ul><ul><li>Leverageing strong image Eneco </li></ul>Online Inbound Direct Mail Online Inbound D2D Direct Mail Online Inbound Outbound D2D Direct Mail Online Inbound Outbound D2D Direct Mail Online Inbound Promo Teams D2D Direct Mail Online Inbound
    16. 16. Eneco is optimizing the entire sales/ proposition funnel (examples) Target Attract Convert Retain <ul><li>1) Warm campaign through leads/ endorsement </li></ul><ul><li>2) Target segmented response (L A L ) </li></ul><ul><li>3) Combined customer databases </li></ul><ul><li>4) Event Marketing (new construction) </li></ul><ul><li>5) Combine channels & tactics </li></ul><ul><li>6) Manage on marketing costs per channel/ product/ combination </li></ul>1) Awareness & consideration: review current position Eneco 2) Life Time Value 3) Cost per Order deals 4) Propositions based on customer insights 5) Use of sponsoring 6) Combine total portfolio in offering 1) Decrease drop-out by keeping promise and improve data quality 2) Combine sales channels in offering 3) Measure channel performance 4) Measure individual sales agent performance 5) Improve online funnels 6) Convince doubting potential ( I doubt brochure) 1) Actively reduce churn 2) Comparison of churn levels with benchmarks 3) Immediate win-back attempt 4) Save desk 5) Churn prediction
    17. 17. Lose Switch – Eneco is reliable Case Insights Process improvements <ul><li>Former Eneco customers, recently switched </li></ul><ul><li>>70% Pushed </li></ul><ul><li>price perception (price advantage?) </li></ul><ul><li>Right thing? </li></ul><ul><li>mistakes during switch </li></ul><ul><li>On the ball (shorter on switch moment) </li></ul><ul><li>Increased data quality </li></ul><ul><li>Agent incentives </li></ul><ul><li>Measure results </li></ul>Proposition Results <ul><li>Reliable, we know each other longer than today </li></ul><ul><li>We fix the switch for you </li></ul><ul><li>Off course we match the price! </li></ul><ul><li>… .of the former customers we reach by phone 50% becomes Eneco again </li></ul><ul><li>Especially high return on new entrants </li></ul>
    18. 18. Proposition example: Welcome back Case Insights Process improvements <ul><li>Former Eneco customers, that switched a year ago </li></ul><ul><li>Switched for offer (mostly price) </li></ul><ul><li>Disappointed about new energy supplier </li></ul><ul><li>They want to switch back </li></ul><ul><li>They still recall us </li></ul><ul><li>They still think positive about us </li></ul><ul><li>Direct mail: </li></ul><ul><ul><li>First Letter </li></ul></ul><ul><ul><li>1st reminder </li></ul></ul><ul><ul><li>2nd reminder (to those we can’t call) </li></ul></ul><ul><li>TM: </li></ul><ul><ul><li>1 week after the 2nd reminder </li></ul></ul><ul><ul><li>TM shorter on first reminder </li></ul></ul><ul><ul><li>Strengthening of feeling through postcard </li></ul></ul>Proposition Results <ul><li>We didn’t forget you! </li></ul><ul><li>We want you back! </li></ul><ul><li>That’s why we have this special offer for you. </li></ul><ul><li>Latest results Q2 2009 (response): </li></ul><ul><li>> 10% response </li></ul>
    19. 19. Proposition example: Welcome Back Case Insights Process improvements <ul><li>Former Eneco customers, that switched a year ago </li></ul><ul><li>>70% pushed </li></ul><ul><li>Switched on Price perception </li></ul><ul><li>Disappointed about new energy supplier </li></ul><ul><li>Want to switch back, but don’t take action </li></ul><ul><li>Still recall us </li></ul><ul><li>Still think positive about us </li></ul><ul><li>Direct mail </li></ul><ul><ul><li>First letter </li></ul></ul><ul><ul><li>1 st reminder </li></ul></ul><ul><ul><li>2 nd reminder (to those we can’t call) </li></ul></ul><ul><li>TM </li></ul><ul><ul><li>1week after 2 nd reminder </li></ul></ul><ul><ul><li>TM shorter on 1 st reminder </li></ul></ul><ul><ul><li>Strengthening feeling trough postcard with mailpack </li></ul></ul>Proposition Results <ul><li>We didn’t forget you! </li></ul><ul><li>We want you back! </li></ul><ul><li>That’s why we have this special offer for you. </li></ul><ul><li>… latest results Q2 2009 </li></ul><ul><li>>10% response </li></ul><ul><li>Check your data selection! </li></ul>
    20. 20. Proposition example: Optimizing Push Case Insights Process improvements <ul><li>Decreasing name recognition </li></ul><ul><li>Decreasing conversion </li></ul><ul><li>Support sales channels </li></ul><ul><li>Distrust the energy companies, switching proces </li></ul><ul><li>Switching intention is still there </li></ul><ul><li>Price and reliability </li></ul><ul><li>Trough the line support </li></ul><ul><li>Magazine send to 1,1 milion households, with general market information and offer, send in small batches </li></ul><ul><li>D2D; immediate follow up in areas where the magazines are distributed </li></ul><ul><li>Efficient routing (look a likes) </li></ul><ul><li>Dedicated Channel Manager </li></ul><ul><li>TM: </li></ul><ul><ul><li>1 week after the magazine </li></ul></ul><ul><li>Improvement cancellations by 25% </li></ul><ul><li>Cost of Sale dropped 18% </li></ul><ul><li>TM doubled conversion </li></ul><ul><li>D2D slightly higher </li></ul><ul><li>Inbound sales! </li></ul>Impact
    21. 22. Proposition example: Change to wind power and get a free bicycle <ul><li>Combination of Brand & green product </li></ul><ul><li>Evidence for Sponsoring “Eneco tour” & New bike </li></ul><ul><li>ATL & BTL through the line </li></ul><ul><li>High Margin Product </li></ul>Improvement/details <ul><li>New and existing customers! </li></ul><ul><li>Running as we speak </li></ul>Impact <ul><li>Endorsement: 4 times olympic gold medal winner </li></ul><ul><li>Pull trough ATL & Online </li></ul>Information
    22. 23. Eneco Maintenance Suppliers; combined databases! Case Insights Process improvements <ul><li>Customers of Tempus and GSU (maintenance </li></ul><ul><li>“ I’d like to be serviced by one supplier for all my energy related products and services” </li></ul><ul><li>Direct mail: </li></ul><ul><ul><li>Tailormade proposition for different customers </li></ul></ul><ul><ul><li>Followed by a reminder </li></ul></ul><ul><li>TM: </li></ul><ul><ul><li>1 week after the reminder </li></ul></ul><ul><ul><li>TM shorter on first reminder </li></ul></ul>Proposition Results <ul><li>“ One stop shopping for energy and related services!” </li></ul><ul><li>Latest results Q2 2009 (response): > 5% response </li></ul>
    23. 24. Proposition example : Electronics retailer BCC Start October 1st <ul><li>No learning yet, start October 1 st. </li></ul>Improvement <ul><li>No learning yet, start October 1 st, </li></ul><ul><li>Target at least 1 000 new customers </li></ul><ul><li>Increase brand preference (p ositive brand association) </li></ul>Impact <ul><li>A-brand electronics retailer </li></ul><ul><li>Ordering in retail channel </li></ul><ul><li>retailer endorses Eneco as ‘Green’ </li></ul><ul><li>Offer: discounts up to 25% on all energy saving electronics </li></ul><ul><li>Full blown ATL and BTL campaign (print, TV, shopfloor, internet) </li></ul><ul><li>Action period 3 months </li></ul><ul><li>Sales incentive program on floor </li></ul>Case
    24. 25. Partnership BCC en Eneco Hoe gaan we dit communiceren? <ul><li>Tag-on TV </li></ul><ul><li>12 t/m 31 oktober </li></ul><ul><li>(Optioneel) </li></ul><ul><li>BCC H-A-H blad/folder: </li></ul><ul><li>Folder: week 42, 43 en 45 </li></ul><ul><li>Magazine: week 44 redactioneel stuk </li></ul><ul><li>Week 42: actieflyer </li></ul><ul><li>Vermelding op eneco.nl </li></ul><ul><li>Gedurende de gehele actieperiode </li></ul><ul><li>Verwijzing winkelvloer </li></ul><ul><li>Vermelding op </li></ul><ul><li>groenestekker.nl: </li></ul><ul><li>Gedurende de gehele actieperiode </li></ul><ul><li>Verwijzing winkelvloer </li></ul><ul><li>Winkelvloer: </li></ul><ul><li>Posters A0/A1 </li></ul><ul><li>Placemats </li></ul><ul><li>FAQ’s </li></ul><ul><li>Inlogpagina: www.eneco.nl/bcc </li></ul>
    25. 26. Homepage takeover
    26. 27. Ebay/Marktplaats Case Insights Process improvements <ul><li>Targeted campaign in non-eneco area’s (zipp code) with exclusive eBay offer </li></ul><ul><li>Multichannel approach most succesful (email, home page takeover, retargetting, nabellen clicks) </li></ul><ul><li>Call me back- follow up TM high potential </li></ul><ul><li>Single shot EM poor </li></ul><ul><li>Follow up TM should be implemented permenantly </li></ul><ul><li>Reminder EM’s necessary for success </li></ul>Proposition Results <ul><li>Save eur 300,- per year </li></ul><ul><li>High Impact, visibility campaign </li></ul><ul><ul><li>Impressions 11mln </li></ul></ul><ul><ul><li>Average CTR 0.66% </li></ul></ul><ul><ul><li>Call me back banner CTR 3.44% </li></ul></ul><ul><li>Positive impact on price perception! </li></ul>
    27. 28. Retargetting
    28. 29. Expandable leaderboard
    29. 30. Call-me-back
    30. 31. Proposition Example: ASN Bank <ul><li>Customer base of bank is small ( 500k) </li></ul><ul><li>Acquisition via telephone marketing on customer base bank </li></ul>Improvement <ul><li>Increased loyalty by confirming sustainability (on brand) </li></ul><ul><li>High conversion </li></ul><ul><li>Low Cost of Sale </li></ul>Impact <ul><li>Dedicated Dutch Bank </li></ul><ul><li>Focused on sustainability </li></ul><ul><li>During the banking crisis </li></ul><ul><li>Offer: wind energy/ecogas and membership Zeekracht + save box </li></ul>Case: partnering with bank
    31. 32. We want to do this! Instead of acting like this…
    32. 33. 3 <ul><li>Creating different propositions and channels to acquire new customers </li></ul>Propositions EIB, WELKOM TERUG FIETSEN
    33. 34. bijlage We want to do this! We want to act like this!
    34. 35. <ul><li>Escape the commodity trap, differentiate! </li></ul><ul><li>Endorsement, leads, fact based marketing </li></ul><ul><li>Execute well </li></ul>
    35. 36. Eneco strategy: truly focused towards customer partnership Leads to price fight, decreasing margins etc Traditional, one way utility company Differentiator through open relation ship with customer ---> Customer becomes energy supplier and invests in green energy Moment of directional change
    36. 37. More and more people are willing to switch, different insights Switch aversie blijft Market trends Implicaties voor Eneco Early adopters tot early majority, insights might chance 15% van de markt 85% van de markt innovators Early adopters/ early majority late majority laggards
    37. 38. Eneco is optimizing the entire sales funnel Target Attract Convert Retain Gives up to 12 times higher conversion than ‘cold calling <ul><li>Warm campaign through leads and endorsement </li></ul>Gives up to 2 times higher response <ul><li>Continuous reviews of campaigns; target segmented response (look-a-likes) </li></ul>Gives up to 10 times higher response <ul><li>Combined customer database and combine total portfolio offering (energy product and kettle lease) </li></ul>? <ul><li>Event marketing (new construction, moving, use of sponsorship) gives up to </li></ul>? <ul><li>Leads can be expensive, conversion is king (focus on total cost of sale </li></ul>Action Effects
    38. 39. Eneco is optimizing the entire sales funnel Target Attract Convert Retain ? <ul><li>Convince Doubters (I doubt Brochure) </li></ul>? <ul><li>Immediate win-back attempt, keeps up to 30% happy customers </li></ul>? <ul><li>Create own leads database (Build your prospects history!) </li></ul>? <ul><li>Finish “unfinished weborders </li></ul>Increases conversion by 30% <ul><li>Decrease drop out by keeping promises and raising data quality </li></ul>? <ul><li>Support sales channels with trough the line or local support (insert / invliegen Huis aan Huis folder) </li></ul>? <ul><li>combine channels in offering (e.g email and telemarketing) </li></ul>? <ul><li>Dedicated Channels Managers result in increase in conversion </li></ul><ul><ul><ul><li>optimize sales scripts </li></ul></ul></ul><ul><ul><ul><li>measure channel performance </li></ul></ul></ul><ul><ul><ul><li>review individual sales agent performance </li></ul></ul></ul>? <ul><li>Improve online funnels </li></ul>Action Effects

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