Top Banner
Katy Raines CRM Why bother? Christiansand, January 2012
34

CRM foredrag v/Katy Raines

Jul 07, 2015

Download

Business

Presentasjon Katy Raines, Indigo Ltd, CRM-seminar i Kristiansand 13.1.12
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: CRM foredrag v/Katy Raines

Katy Raines

CRM – Why

bother?

Christiansand, January 2012

Page 2: CRM foredrag v/Katy Raines

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, Ulster Orchestra

Page 3: CRM foredrag v/Katy Raines

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

Page 4: CRM foredrag v/Katy Raines

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

Page 5: CRM foredrag v/Katy Raines

Frequency

1. All customers are not equally valuable

2%

4%

26%

68%

8+ times

per year

5-7 times

per year

2-4 times

per year

Once

per year

60%

25%

15%

% of bookers in 1 year

% o

f inco

me

in 1

year

Page 6: CRM foredrag v/Katy Raines

Retention

2. Keeping customers costs 5x less

Lost / lapsed customers

Retained customers

New audiences

Page 7: CRM foredrag v/Katy Raines

Segmentation

3. Customers have different needs

2%

4%

26%

68%

These people have

different needs

From these people

% of bookers by frequency band

Page 8: CRM foredrag v/Katy Raines

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

Page 9: CRM foredrag v/Katy Raines

The changing marketing

environmentDigital 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!

Page 10: CRM foredrag v/Katy Raines

email content - relevant

Tailored to match

my previous

purchases

General

message

to

everyone

Page 11: CRM foredrag v/Katy Raines

Web content - relevant

Page 12: CRM foredrag v/Katy Raines

And what about Social Media?

CRM / Direct

Marketing

Organisation Customer

Organisation

Customer

Sends direct

messages

Broadcasts messages

Social Media

‘tunes in’ at

various points

They are different tools for different purposes

Page 13: CRM foredrag v/Katy Raines

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

Page 14: CRM foredrag v/Katy Raines

What a good CRM programme can

deliver

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

Page 15: CRM foredrag v/Katy Raines

Building a picture of the customer

The

Customer

Purchasing

behaviour

Frequency

Recency

Types of productResponse to

comms

Purchase

Clicks

Timing

Type

Attitudes and preferences

Stated comms preferences

Stated product preferences

Feedback / comments

Profile

Geography

Demographics –

age, income etc.

Social media behaviour

Re-tweets

Likes

Page 16: CRM foredrag v/Katy Raines

Customised communications

Picture of

the

customer

Product choices

Timing of

comms

Type of comms

Page 17: CRM foredrag v/Katy Raines

Symphony Hall Birmingham

The

Customer

600 events per year

Mostly ‘one night’

shows

2200 seats

over ½ million

audiences each year

Page 18: CRM foredrag v/Katy Raines

Symphony Hall Birmingham –

challenges

The

Customer

Too much ‘choice’ and information for the customer

Wide range of events

Events changing daily – often going on sale at late notice

Customers are annoyed if things sell out before they’ve heard about them

Page 19: CRM foredrag v/Katy Raines

Building a picture of the customer

The

Customer

Purchasing

behaviour

Contact details

gathered /

checked with

each purchaseResponse to

comms

Record response

to direct mail

Record ‘click’

response to email

Attitudes and preferences

Data sign-up process gathers

preferred communication

method

Later emails encourage

customers to tell us product

preferences (eg. classical)

Profile

Geo-demographic

information ‘appended’

to record to show likely

age, income etc.

Page 20: CRM foredrag v/Katy Raines

Different communications

Picture of

the

customer

Classical Music audiences

- Season confirmed 1 year ahead

- Like to see ‘full programme’ to make selections

- Like printed brochures rather than digital

- ‘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)

Page 21: CRM foredrag v/Katy Raines

Different communications

Picture of

the

customer

Rock 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

- Are used to 100% digital communications from

competitors

- Weekly ‘On sale’ announcements, and ‘don’t miss

this month’

- No printed communications at all

Page 22: CRM foredrag v/Katy Raines

Personalised e-

bulletins

Picture of

the

customer

Events ‘match’ customer profile

based on:

- Previous product purchase

- Stated product preferences

- Clicks on previous emails

Other events listed here

Page 23: CRM foredrag v/Katy Raines

MARKETING EFFECTIVENESS

11.00

11.50

12.00

12.50

13.00

13.50

14.00

2008-09 2009-210 2010-11

Marketing ROI (all tix)

£1.15

£1.20

£1.25

£1.30

£1.35

£1.40

2008-09 2009-2010 2010-11

Spend per seat sold (all tix)

Page 24: CRM foredrag v/Katy Raines

What do you need from a CRM

system?

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

Page 25: CRM foredrag v/Katy Raines

The CRM process

1. Gather data

2. Analyse and segment

3. Implement

- Product proposition

- Communications methods

4. Measure

Testing a

nd

refinin

g

Page 26: CRM foredrag v/Katy Raines

The picture gets more detailed

The

Customer

Purchasing

behaviour

Frequency

Recency

Types of artform /

productResponse to

comms

Purchase

Clicks

Timing

Type

Attitudes and preferences

Stated comms preferences

Stated Artform / product

preferences

Feedback / comments

Profile

Demographics –

age, income etc.

Page 27: CRM foredrag v/Katy Raines

The messages get more effective

Picture of

the

customer

Product choices

Timing of

comms

Type of comms

Page 29: CRM foredrag v/Katy Raines

Data Capture

Initial data capture – at enquiry or point of 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)

Page 30: CRM foredrag v/Katy Raines

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

Chapter Arts Centre, Cardiff

House of Fraser department store

Costa Coffee

Page 31: CRM foredrag v/Katy Raines

The data ‘transaction’ – why will

someone 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)

Page 32: CRM foredrag v/Katy Raines

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)

Page 33: CRM foredrag v/Katy Raines

Implementation

“Rules’ for who is contacted when (eg. first timers, lapsed, etc) and automation around these if possible

Tools to allow personalisation of content based on:

previous purchase

Stated preferences

Response to communications

Page 34: CRM foredrag v/Katy Raines

Measurement

Simple ways to track effect of

communications

% response rates

Return on investment