Katy RainesCRM – Whybother?Christiansand, January 2012
About me Music   Graduate, Cambridge University Spent15 years running Marketing departments in UK theatres Consultant  ...
CRM – Why bother? A reminder   of CRM The   changing marketing environment What   CRM Can deliver Building   a picture...
A reminder of CRM1.   Not all customers are equally valuable2.   It costs 5 times more to acquire a     customer than keep...
Frequency1. All customers are not equally valuable                      8+ times                      per year   2%       ...
Retention2. Keeping customers costs 5x less              New audiences               Retained customers            Lost / ...
Segmentation 3. Customers have different needs                                 These people have            2%            ...
Ulster Orchestra,Belfast ‘Old’   model  Were sending all their customer the same thing – a   large 32-page season brochu...
The changing marketingenvironmentDigital      explosion = Consumers bombarded with contentGrowthof tools and sites to ‘a...
email content - relevant                             Tailored to match                             my previous            ...
Web content - relevant
And what about Social Media?                                                             Customer                         ...
The resultsOpportunity  – to build loyalty and affinity by reflecting their needs back to them with relevant (and persona...
What a good CRM programme candeliver Increased   frequency from existing customers Keeping   more customers year on year...
Building a picture of the customer           Purchasing                   Social media behaviour            behaviour     ...
Customised communications                  Product choices                      Picture of                         the    ...
Symphony Hall Birmingham                   600    events per year                The                                 Cus...
Symphony Hall Birmingham –challengesToo much ‘choice’ and information for the customerWide   range of events            ...
Building a picture of the customer            Purchasing             behaviour           Contact details             gathe...
Different communicationsClassical Music audiences- Season confirmed 1 year ahead- Like to see ‘full programme’ to make sel...
Different communicationsRock and Pop audiences-   Events getting confirmed all the time-   Big names can sell out in a day...
Personalised e-bulletins                                  Picture of                                     the              ...
MARKETING EFFECTIVENESS        Marketing ROI (all tix)                     Spend per seat sold (all tix)14.00             ...
What do you need from a CRMsystem? Initial      and ongoing data capture linked to purchasing behaviour Sensible     seg...
The CRM process                        1. Gather data                    2. Analyse and segment                        3. ...
The picture gets more detailed           Purchasing            behaviour            Frequency             Recency         ...
The messages get more effective                  Product choices                      Picture of                         t...
Good luck!                          Katy Raines                     Partner, Indigo-Ltd                    www.indigo-ltd....
Data Capture      data capture – at enquiry or point ofInitial purchaseAdding    future data to the picture:  purchase ...
Data Capture The   ‘norm’ for ticketed organisations in the UK Free   galleries  Imperial   War Museum, London Cinemas...
The data ‘transaction’ – why willsomeone give you their data?In   exchange for:  Information  about events (eg. arts   o...
Analysis and Data miningFirst   time attenders/ purchasersPurchasers  who have stopped buying from you (‘Lapsed’ custome...
Implementation“Rules’  for who is contacted when (eg. first timers, lapsed, etc) and automation around these if possible...
MeasurementSimple      ways to track effect of communications %  response rates  Return on investment
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CRM foredrag v/Katy Raines

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Presentasjon Katy Raines, Indigo Ltd, CRM-seminar i Kristiansand 13.1.12

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  • Going in the right direction Improved ROI is reflected in the reduced spend per seat sold
  • The picture of the customer gets more and more clear
  • CRM foredrag v/Katy Raines

    1. 1. Katy RainesCRM – Whybother?Christiansand, January 2012
    2. 2. About me Music Graduate, Cambridge University Spent15 years running Marketing departments in UK theatres Consultant since 2004, specialising in Customer Loyalty and data-driven marketing Clients include Royal Shakespeare Company, Opera North, The Lowry, Symphony Hall, Birmingham, Ulster Orchestra
    3. 3. CRM – Why bother? A reminder of CRM The changing marketing environment What CRM Can deliver Building a picture of the customer A Good CRM system
    4. 4. A reminder of CRM1. Not all customers are equally valuable2. It costs 5 times more to acquire a customer than keep an existing one3. Customers have different needs, which need to be reflected in your marketing communications with them
    5. 5. Frequency1. All customers are not equally valuable 8+ times per year 2% 60% year % of income in 1 5-7 times per year 4% 2-4 times 25% per year 26% Once 15% per year 68% % of bookers in 1 year
    6. 6. Retention2. Keeping customers costs 5x less New audiences Retained customers Lost / lapsed customers
    7. 7. Segmentation 3. Customers have different needs These people have 2% different needs From these people 4% 26% 68%% of bookers by frequency band
    8. 8. Ulster Orchestra,Belfast ‘Old’ model  Were sending all their customer the same thing – a large 32-page season brochure, costing £1 per issue  Return on investment 1.6:1 ‘New model’  Sent different customers different things  For 90% of the customers this meant sending them LESS information, but more RELEVANT  Return on Investment increased to 21:1
    9. 9. The changing marketingenvironmentDigital explosion = Consumers bombarded with contentGrowthof tools and sites to ‘aggregate’ and make sense of content for consumers to digestExpectation of content matched to need and preferenceNB. This is no longer a ‘nice to have’ –it’s essential!
    10. 10. email content - relevant Tailored to match my previous purchasesGeneralmessagetoeveryone
    11. 11. Web content - relevant
    12. 12. And what about Social Media? Customer ‘tunes in’ at various points Organisation Broadcasts messagesSocial Media Sends direct Organisation messages Customer CRM / Direct Marketing They are different tools for different purposes
    13. 13. The resultsOpportunity – to build loyalty and affinity by reflecting their needs back to them with relevant (and personalised) contentThreat – customers will ignore your content as it isn’t relevant, and you will lose them
    14. 14. What a good CRM programme candeliver Increased frequency from existing customers Keeping more customers year on year Reduced marketing costs and improved return on investment Brand affinity and loyalty Improved customer insight to aid business planning and programme/product development
    15. 15. Building a picture of the customer Purchasing Social media behaviour behaviour Re-tweets Frequency Likes Recency Types of product Response to comms Purchase The Clicks Customer Timing TypeAttitudes and preferencesStated comms preferences ProfileStated product preferences Geography Feedback / comments Demographics – age, income etc.
    16. 16. Customised communications Product choices Picture of the customer Timing of comms Type of comms
    17. 17. Symphony Hall Birmingham 600 events per year The  Customer Mostly ‘one night’ shows 2200 seats  over ½ million audiences each year
    18. 18. Symphony Hall Birmingham –challengesToo much ‘choice’ and information for the customerWide range of events The CustomerEvents changing daily – often going on sale at late noticeCustomers are annoyed if things sell out before they’ve heard about them
    19. 19. Building a picture of the customer Purchasing behaviour Contact details gathered / checked with Response to each purchase comms Record response The to direct mail Customer Record ‘click’ response to emailAttitudes and preferencesData sign-up process gathers Profile preferred communication Geo-demographic method information ‘appended’ Later emails encourage to record to show likely customers to tell us product age, income etc. preferences (eg. classical)
    20. 20. Different communicationsClassical Music audiences- Season confirmed 1 year ahead- Like to see ‘full programme’ to make selections- Like printed brochures rather than digital Picture of the customer- ‘Classical music’ brochure sent by post 3 times per year- Personalised booking form and incentives to subscribe early- Email used as a reminder (but sparing)
    21. 21. Different communicationsRock and Pop audiences- Events getting confirmed all the time- Big names can sell out in a day- They don’t want to miss the chance to book Picture of- Are used to 100% digital communications from the competitors customer- Weekly ‘On sale’ announcements, and ‘don’t miss this month’- No printed communications at all
    22. 22. Personalised e-bulletins Picture of the customerEvents ‘match’ customer profilebased on:- Previous product purchase- Stated product preferences- Clicks on previous emails Other events listed here
    23. 23. MARKETING EFFECTIVENESS Marketing ROI (all tix) Spend per seat sold (all tix)14.00 £1.4013.50 £1.3513.00 £1.3012.50 £1.2512.0011.50 £1.2011.00 £1.15 2008-09 2009-210 2010-11 2008-09 2009-2010 2010-11
    24. 24. What do you need from a CRMsystem? Initial and ongoing data capture linked to purchasing behaviour Sensible segmentation and data analysis:  Frequency/Recency  Value  Product type Tools  To implement personalised approach  To measure effect
    25. 25. The CRM process 1. Gather data 2. Analyse and segment 3. Implement Testing and - Product proposition - Communications methods refining 4. Measure
    26. 26. The picture gets more detailed Purchasing behaviour Frequency Recency Types of artform / Response to product comms Purchase The Clicks Customer Timing TypeAttitudes and preferencesStated comms preferences Profile Stated Artform / product Demographics – preferences age, income etc. Feedback / comments
    27. 27. The messages get more effective Product choices Picture of the customer Timing of comms Type of comms
    28. 28. Good luck! Katy Raines Partner, Indigo-Ltd www.indigo-ltd.com katy.raines@indigo-ltd.com twitter: @katyraines
    29. 29. Data Capture data capture – at enquiry or point ofInitial purchaseAdding future data to the picture:  purchase behaviour (what, when, how much?) Stated preferences (product, types of communications) Response to communications (clicks, likes etc)
    30. 30. Data Capture The ‘norm’ for ticketed organisations in the UK Free galleries  Imperial War Museum, London Cinemas / retail / leisure - no time to take complex information at point of sale  ChapterArts Centre, Cardiff  House of Fraser department store  Costa Coffee
    31. 31. The data ‘transaction’ – why willsomeone give you their data?In exchange for:  Information about events (eg. arts organisations) – but they expect it to be tailored  Loyalty rewards and discounts (eg. airlines, hotels)  Special treatment (eg. bookshops – VIP shopping or book signing events)
    32. 32. Analysis and Data miningFirst time attenders/ purchasersPurchasers who have stopped buying from you (‘Lapsed’ customers)Behaviour and purchase patternsResponse to communicationsValue analysis (lifetime)
    33. 33. Implementation“Rules’ for who is contacted when (eg. first timers, lapsed, etc) and automation around these if possibleToolsto allow personalisation of content based on:  previous purchase  Stated preferences  Response to communications
    34. 34. MeasurementSimple ways to track effect of communications % response rates  Return on investment

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