Presentasjon CRM Katy Raines på Usus samling Hovden høsten 2013

1. Katy Raines
CRM – just get
started!
Hovden, Sept 2013

2. About me
 Music
Graduate, Cambridge University
 Spent
15 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, Wales
Millennium Centre, Ulster Orchestra
 Now
working with USUS on 4 year project to improve
CRM effectiveness

3. CRM – Just get started!
 A reminder
of CRM
 The
changing marketing environment
 The
CRM cycle
 What
 The
CRM Can deliver
USUS project – what we’re learning
– how to get started (if you haven’t
already)
 CRM

4. A reminder of CRM
1.
Not all customers are equally valuable
2.
It costs 5 times more to acquire a
customer than keep an existing one
3.
Customers have different needs, which
need to be reflected in your marketing
communications with them

5. Frequency
1. All customers are not equally valuable
8+ times
per year
2%
5-7 times
per year
2-4 times
per year
Once
per year
% of income in 1
year
60%
4%
26%
68%
% of bookers in 1 year
25%
15%

6. Retention
2. Keeping customers costs 5x less
New audiences
Retained customers
Lost / lapsed customers

7. Segmentation
3. Customers have different needs
2%
4%
26%
68%
% of bookers by frequency band
These people have
different needs
From these people

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. The changing marketing
environment
Digital
explosion = Consumers
bombarded with content
Growth
of tools and sites to ‘aggregate’
and make sense of content for
consumers to digest
Expectation
of content matched to
need and preference
NB. This is no longer a ‘nice to have’ –
it’s essential!

10. email content - relevant
Tailored to match
my previous
purchases
General
message
to
everyone

11. Web content - relevant

12. And what about Social Media?
Customer
‘tunes in’ at
various points
Organisation
Broadcasts messages
Social Media
Organisation
Sends direct
messages
Customer
CRM / Direct
Marketing
They are different tools for different purposes

13. The results
– to build loyalty and affinity
by reflecting their needs back to them
with relevant (and personalised) content
Opportunity
– customers will ignore your
content as it isn’t relevant, and you will
lose them
Threat

14. The CRM cycle
New
customer
50%
Purchase
Purchase
Frequenc
y
Purchase
Purchase
Lapsed
customer

15. The CRM cycle – building blocks
New customer
What can you do
to welcome new
customers?
Purchase
Can you
recognise a new
customer?
Frequency
Do you know a
customer’s
purchasing
patterns?
Purchase
What can you do to
increase the frequency
they buy from / visit
you?
Purchase
Purchase
How do you
know when
someone has
lapsed?
Lapse
What can you
do when they
go?

16. My local farm shop – seasonal
New customer
produce invited
Enquiry
New customers
to join the ‘veg-watch’
list – to be informed
when different produce
New
available
Frequency
customer
Regular updates via
email and social
Purchase
Purchase
media:
- Asparagus season
was 3 weeks early
Frequenc
in 2011
- Fruit season was
y
non-existent in
2012
Purchase
- Vouchers for Purchase
redemption to
monitor
Lapse
Requests to
Lapsed
update mailing
customer
list
preferences

17. The CRM cycle – another stage
Enquiry
New
customer
Purchase
Purchase
Frequenc
y
Purchase
Purchase
Lapsed
customer

18. French Gite aimed at young families
New customer
Enquiry
Nothing done with
enquirers who didn’t
book
New
customerFrequency
Fantastic re-purchase
Purchase1/3 of families
Purchase
rates:
came back at least
one more year –
many Frequenc 5
every year for
years
y
Purchase
Purchase
Lapse
Built-In lapse
Lapsed
rate – when
customer
kids >6

19. The CRM cycle – French Gite
Enquiry
New
customer
Purchase
Purchase
Frequenc
y
Purchase
Purchase
Lapsed
customer

20. Hotel near Legoland Resort,
Windsor
Enquiry
New
customer
Pre-visit email with all
details about my stay
Purchase
Post-visit email to
Purchase
check on my
experience
Frequenc
y
Purchase
Purchase
Lapsed
customer

21. What a good CRM programme can
deliver
 Increased
 Keeping
frequency from existing customers
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

22. Building a picture of the customer
Purchasing
behaviour
Frequency
Recency
Types of product
Social media behaviour
Re-tweets
Likes
The
Customer
Attitudes and preferences
Stated comms preferences
Stated product preferences
Feedback / comments
Response to
comms
Purchase
Clicks
Timing
Type
Profile
Geography
Demographics –
age, income etc.

23. Customised communications
Product choices
Picture of
the
customer
Timing of
comms
Type of comms

24. Symphony Hall Birmingham
600
events per year
The

Customer
Mostly ‘one night’
shows
2200

seats
over ½ million
audiences each year

25. Symphony Hall Birmingham –
challenges
Too
much ‘choice’ and information for the
customer
Wide
range of events
The
Customer
changing daily – often going on sale
at late notice
Events
Customers
are annoyed if things sell out
before they’ve heard about them

26. Symphony Hall Birmingham
 ‘Old’
model – one size fits all
Were sending all their customer the same thing – a
large 32-page season brochure, every 2 months
The
 Return on investment average 1.5:1

Customer
 ‘New
model’
Sent different customers different things
 First round of communications for Classical Music
 Return on Investment increased to 9:1


27. Logo
Classical
Rock/Pop/Ent
ertainment
Jazz, Folk,
World,
Roots
Family

28. Classical
Logo
Rock/Pop/Ent
ertainment
Jazz, Folk,
World,
Roots
Family

29. Symphony Hall Birmingham
 ‘Old’
model – one size fits all
Were sending all their customer the same thing – a
large 32-page season brochure, every 2 months
The
 Return on investment average 1.5:1

Customer
 ‘New
model’
Sent different customers different things
 First round of communications for Classical Music
 Return on Investment increased to 9:1


30. USUS CRM Project 2012-2015
 Working
closely with 6 USUS members who want to
focus on CRM

Kino Sør

Kilden

Dyreparken

Kragero Resort

Canal Street Jazz and Blues Festival

Grimstad Bys Museums
 Reporting
back and showing progress to USUS
Cluster as we go along

31. Building a picture of the customer
Purchasing
behaviour
Frequency
Recency
Types of product
Social media behaviour
Re-tweets
Likes
The
Customer
Attitudes and preferences
Stated comms preferences
Stated product preferences
Feedback / comments
Response to
comms
Purchase
Clicks
Timing
Type
Profile
Geography
Demographics –
age, income etc.

32. Dyreparken
Social media
Booking system
Website / CMS
Hotel bookings
The
Customer
Email software
On site services

33. Customised communications
Product choices
Picture of
the
customer
Timing of
comms
Type of comms

36. Customised communications
Product choices
Picture of
the
customer
Timing of
comms
Type of comms

37. Kragero Resort

Data analysis of booking database:

Identified Key segments:
Leisure
Business
Spa
Golf
Families
Couples
Different email content to each segment

Has it worked?

38. USUS CRM Project 2012-2015
 What
 How
 How
are we learning?
can you benefit from our learning?
can you get started, or move on to the
next stage?

39. USUS CRM Project 2012-2015
What are we learning?
Data
What
works?
Seeing
the bigger picture

40. What are we learning about CRM?
1. Data

It starts with good customer data capture

We can learn a lot just from looking at the data
Canal Street Jazz & Blues Festival
Residents
Day trippers
Overnights
17%
20%
11%
25%
10%
73%
70%
2011
2012
12%
63%
2010

41. CRM: Just Get Started
1. Data
 What
data do you already have about your
customers?




Enquiries?
Bookings?
Value?
Preferences?
 How


do you use this data now?
To understand more about your customers and inform your
marketing activity (eg. Canal St)
To target them with more relevant marketing communications
(eg. Kragero Resort, Kino Sør)

42. CRM: Just Get Started
1. Data
 How


could you improve your data collection?
Quantity
Quality

43. What are we learning about CRM?
2. Learning what works
 We
need to know what has worked
 We
need a ‘baseline’ position
 In
many cases we don’t have the systems /
processes in place to do this
 It
doesn’t have to be complicated

44. CRM: Just Get Started
2. Learning what works
Comparing 2 email campaigns
Income per email sent (average)
All customers
Segment 1
Segment 2
Segment 3
average (all)
Unsegmented Segmented
(old)
(new)
£0.17
£0.22
£1.57
£0.23
£0.17
£0.36
Baseline
position
Comparison
Has it
worked?
112%

45. CRM: Just Get Started
2. Learning what works
 Can
you measure the effectiveness of your
marketing activity?
 Can
you compare the success of different activities?
 What
 How
could you put in place to do this?
would you create the ‘baseline’ measure(s) to
compare against?

46. What are we learning about CRM?
3. Seeing the bigger picture
 We
need to understand how CRM can deliver on
business performance
 We
need to SHOW others (internally) why a CRM
focus will pay off in the LONG term

47. CRM: Just Get Started
Seeing the bigger picture
Typical business measures
Business Performance

Total Sales (NOK)

Total Customers

Total Marketing
Spend

48. CRM: Just Get Started
Seeing the bigger picture
Business Performance
Marketing Effectiveness
Customer Engagement
Are we selling more /
growing?
Is our marketing spend
achieving more?
Are our customers more
engaged with us / our
brand?

49. CRM: Just Get Started
Seeing the bigger picture
Business Performance

Total Sales (NOK)

Marketing Effectiveness

Total Marketing
Spend
Total Customers


Customer Frequency
% sales from retained
 Customer Retention
customers vs new
 Marketing ROI (return
customers
on investment)

Customer Engagement
% customers retained
vs new

50. Example – Business Performance
Average £
Customers Sales income per customer
5500
£345,000
£62.73
Customers
New Customers
Retained customers
Income
New Customers
Retained customers
Average £ per
customer
£136.36
30%
65%
£31.17
70%
35%
New Customers
Retained customers

51. Example – Marketing Effectiveness
Marketing ROI
14.00
13.50
Marketing ROI
13.00
Total income
12.50
Total marketing spend
12.00
11.50
11.00
2008-09
2009-210
2010-11

52. Example: Customer Engagement
Frequency
8+ times
per year
2%
5-7 times
per year
2-4 times
per year
Once
per year
% of income in 1
year
60%
4%
26%
68%
% of customers in 1 year
25%
15%

53. Example: Customer Engagement
Retention
2010-11
% retention
2011-12
2012-13
43%
29%
30%
Average over 3 years = 34%

54. CRM: Just Get Started
Seeing the bigger picture
Business Performance

Total Sales (NOK)

Marketing Effectiveness

Total Marketing
Spend
Customer Engagement

Customer Frequency
% sales from retained
 Customer Retention
customers vs new
 Marketing ROI (return
customers
on investment)

Total Customers

% customers retained
vs new
+ by campaign
+ by segment

55. CRM: Just Get Started
Next steps
 How

Follow the progress of the case studies – presentations at
future USUS events
 How



you can benefit from the USUS project:
you can get started or move forwards
Take a ‘self-assessment’ of your CRM capability
Complete our ‘CRM Basic’ Toolkit
Talk to your USUS Account Manager

56. Thanks!
Katy Raines
Partner, Indigo-Ltd
www.indigo-ltd.com
katy.raines@indigo-ltd.com
twitter: @katyraines