Traction on CRM

Relationship Marketing Explained

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What is Relationship Marketing?

It emphasises customer retention and satisfaction, rather than a dominant focus on point-of-sale transactions. (1)

“The sale merely consummates the courtship, at which point the marriage begins. The quality of the marriage determines whether there will be continued or expanded business, or troubles and divorce.” (2)


The Five Stepsof Relationship Marketing


attract > engage > analyse and profile > target > build a relationship

attract


engage


analyse&profile


target


buildarelationship

Defensive marketing• Reduce customer turnover• Increase customer loyalty


Offensive marketing• Obtain new customers• Increase customer purchase frequency


The four pillars of Relationship

Marketing


infrastructure > people > intelligence > process

infrastructure


people


intelligence


intelligence


process

RelationshipMarketingStrategies

• Change focus• Think about your weaknesses

• Stay in contact• Provide value• Show appreciation• Be responsive• Grow and adapt• Train and monitor


RelationshipMarketingStrategies

• Encourage registration• Ask more• Allow choice of format• Allow choice of frequency• Allow choice of content• Track user interaction• Reward customer loyalty• Encourage recommendation• Encourage feedback• Respond quickly


Relationship

Marketing in action


Vue Overview

• UK’s leading operator of modern multiplex cinemas with more than 600 screens that attract over 32 million customers every year

• MMS is digital comms partner, charged with overhauling all digital channels

• Objectives are to consistently:

• Retain high frequency and value customers (increase average purchase value)

• Identify and attract potential high value (profitable) customers

• Encourage existing and potential high value customers to purchase online

• Maximise advertising and sponsorship revenue by creating a value from the customer insights available


Vue Profiling

A typical Vue customer profile – Londoners

General• Mostly single customer households• Aged 18-44• Fairly evenly split by gender• Living as singles or married

independents (no children)• Tend to visit more than the cinema

closest to their home


Vue Profiling

• A clear understanding of profit margins• Access to ticket sales data crucial • Assessing current value (spend)• Potential value modelling


Vue targeting – value focus


Vue deployment – email channel

• Dynamic (Personalised)

Content

Registration ConfirmationFilm Times

Promotions

FILM RECOMMENDATION 1



Online Ticket Booking Confirmation

Reactivation

20 content targets, 5 audienceSegments = 1,860,480 combinations



Initial contact or re-contact Members



Initial contact or re-contact Members


Vue Activity Summary

• Personalised content• Customer lifecycle management• Triggered messaging

• Functional• Event based• Transactional• Lifecycle• Predictive modelling


Vue Objectives Review

• Objectives/Result:

• Retain high frequency and value customers

• Lower churn rate achieved, increase in ticket purchase frequency and increased the average spend

• Attract potential high value customers

• Higher sign up in key regions

• Encourage existing and potential high value customers to purchase online

• Improved ticket sales online (42% incr. 08/09) plus increased traffic prior to in cinema purchase

• Maximise advertising and sponsorship

• Ticket alerts driving direct sales and second sell from cross sell opportunities, now able to tap local area marketing as well as broad reach


Relationship Marketing Summary

• Improves customer retention• Reduces cost of marketing• Identifies priority customers• Word of mouth• A customer for life• Fewer competitors• Provides advertising opportunities


Questions?


Traction on CRM

Business

relationship target

customer retention

high frequency

ticket purchase frequency

choice of frequency

single customer households

new customers

defensive marketing