Beyond Marketing: Beyond Marketing: Customer Relationship Customer Relationship

Management (CRM)Management (CRM)

Alokesh BanerjeeAlokesh Banerjee

Session Goals & Session Goals & AgendaAgenda

1.1. Understand CRM, Understand CRM, Components & StrategiesComponents & Strategies2.2. Understand CRM Understand CRM Best Practices, Value & ROIBest Practices, Value & ROI3.3. Understand How Arts Groups Can Understand How Arts Groups Can Best Use CRMBest Use CRM

  • Arts Group CRM Success:Arts Group CRM Success: A Customer and A Customer and

Competitive NecessityCompetitive Necessity (25 min)(25 min)

• Permission-BasedPermission-Based E-Mail Marketing: The E-Mail Marketing: The Future of Audience DevelopmentFuture of Audience Development (25 min)(25 min)

• Q&A Q&A (25 min)(25 min)

Arts Group CRM Success:Arts Group CRM Success:

A Customer and A Customer and Competitive NecessityCompetitive Necessity

ASPIREASPIRETotal Customer Development Total Customer Development tmtm

Why CRM is aWhy CRM is a Customer Customer and Competitive Necessityand Competitive Necessity

• It typically It typically costs 5-10 timescosts 5-10 times as much to acquire a new customer as it as much to acquire a new customer as it does to retain an existing one.does to retain an existing one.

• ““Some companies can Some companies can boost profits by almost 100% by retaining just boost profits by almost 100% by retaining just 5%5% more of their customers.” Harvard Business Review more of their customers.” Harvard Business Review (Reicheld & Sasser)(Reicheld & Sasser)

• A recent McKinsey study showed that the average A recent McKinsey study showed that the average new customernew customer spends spends $24.50$24.50 at a given web site in the at a given web site in the first 3 monthsfirst 3 months as a shopper. as a shopper. The average The average repeat customer spends $52.50 every 3 monthsrepeat customer spends $52.50 every 3 months..

• Most companies Most companies lose 50%lose 50% of their customers in 5 years of their customers in 5 years (Harvard University)(Harvard University)

• On average On average only 15%only 15% of a site’s customers consider themselves of a site’s customers consider themselves loyalloyal to it. The loyalty rating among people who had experienced a problem to it. The loyalty rating among people who had experienced a problem was was only 6%.only 6%. Customers who had not experienced problems indicated Customers who had not experienced problems indicated a customer loyalty rating of a customer loyalty rating of 19%.19%. The loyalty rating among customers The loyalty rating among customers who had experienced problems but were satisfied with the way they who had experienced problems but were satisfied with the way they were handled: were handled: 21%.21%. (Digital Idea)(Digital Idea)

• 70% of repeat purchases70% of repeat purchases are made out of are made out of indifference indifference to the seller, to the seller, NOT loyalty. NOT loyalty. (eLoyalty)(eLoyalty)

• The web customer is ‘The web customer is ‘only 1 clickonly 1 click away from your competition’. away from your competition’.

What is Customer What is Customer Relationship Management Relationship Management

(CRM)?(CRM)?

Customer Relationship Management (CRM) is: Customer Relationship Management (CRM) is: the integration of sales, marketing, service the integration of sales, marketing, service and support strategy, process, people and and support strategy, process, people and technology to maximize customer technology to maximize customer acquisition, value, relationships, retention acquisition, value, relationships, retention and loyalty.and loyalty.• A Redesigning of your Business from the Outside In.A Redesigning of your Business from the Outside In.• Customers, Data and Database at the Center of your Customers, Data and Database at the Center of your

Organization (Customer-centricity).Organization (Customer-centricity).• A organization-wide single customer view.A organization-wide single customer view.• A Foundation for “A Foundation for “1to1 Marketing: Treating Different 1to1 Marketing: Treating Different

Customers Differently” (Single Ticket Buyer vs. Subscriber)Customers Differently” (Single Ticket Buyer vs. Subscriber)• A Means to Your Total Customer Development Ends.A Means to Your Total Customer Development Ends.

Total Customer DevelopmentTotal Customer Development™™ HierarchyHierarchy

Interactive Marketing Management

Customer Relationship Management

Customer Innovation Management tm

Customer Quality Management tm

Cause Marketing Management

Customer Experience Management

Customer Lifecycle Management

Customer Evangelism Management tm

Customer Actualization Management tm

CRM StrategiesCRM Strategies

Customer AcquisitionCustomer Acquisition• Gain the greatest number of new “Best” customers as early in their Gain the greatest number of new “Best” customers as early in their

“lifespan” as possible.“lifespan” as possible.

Customer RetentionCustomer Retention• Retain and expand your business and relationships with your customers Retain and expand your business and relationships with your customers

through up-selling, cross-selling and servicing.through up-selling, cross-selling and servicing.

Customer LoyaltyCustomer Loyalty• Offer programs to ensure that your customers happily buy what you Offer programs to ensure that your customers happily buy what you

offer only from you.offer only from you.

Customer EvangelismCustomer EvangelismEnable loyal customers to become a volunteer sales force.Enable loyal customers to become a volunteer sales force.

Cost ReductionCost Reduction• Reduce costs related to marketing, sales, customer service and support.Reduce costs related to marketing, sales, customer service and support.

Improve ProductivityImprove ProductivityEnhance your e-business strategies.Enhance your e-business strategies.

The “Customer”The “Customer”

Customer SegmentsCustomer Segments• Suspects, Visitors, Prospects, Subscribers, Patrons, Suspects, Visitors, Prospects, Subscribers, Patrons,

Members, Ticket Buyers, Users, Consumers, VIPs, Volunteers, Members, Ticket Buyers, Users, Consumers, VIPs, Volunteers, Annual / Major Donors, Advisors, Advocates, Legislators, Annual / Major Donors, Advisors, Advocates, Legislators, Strategic Partners, Sponsors …Strategic Partners, Sponsors …

• What data do really you have on your customers’What data do really you have on your customers’ Problems, Pains, Problems, Pains, Fears, Needs, Wants, Likes, Goals, Influences, Relationships, Fears, Needs, Wants, Likes, Goals, Influences, Relationships, Affiliations, Alliances, Experiences, Aspirations, Options, Affiliations, Alliances, Experiences, Aspirations, Options, Expectations, Questions, Knowledge, Skills, Activities, Attention, Expectations, Questions, Knowledge, Skills, Activities, Attention, Communications, Interactions, Emotions, Memories, Satisfaction, Communications, Interactions, Emotions, Memories, Satisfaction, Perceptions, Beliefs, Admirations, Attitudes, Opinions, Values, Perceptions, Beliefs, Admirations, Attitudes, Opinions, Values, Learning, Ideas, Motivations, Objections, Priorities, Choices, Learning, Ideas, Motivations, Objections, Priorities, Choices, Behaviors, Personality, Self-Concepts, Trust, Loyalty, Attention, Behaviors, Personality, Self-Concepts, Trust, Loyalty, Attention, Recognition, Time, Energy, Risks, Investments, Rewards, ROI, Recognition, Time, Energy, Risks, Investments, Rewards, ROI, Lifestyle, Lifecycle Stage, Social Class, Culture, Sub-culture, Age, Lifestyle, Lifecycle Stage, Social Class, Culture, Sub-culture, Age, Family, Education, Hobbies, InterestsFamily, Education, Hobbies, Interests…?…?

CRM PeopleCRM People

““Customers”Customers”• Suspects, Visitors, Prospects, Subscribers, Patrons, Suspects, Visitors, Prospects, Subscribers, Patrons,

Members, Ticket Buyers, Users, Consumers, VIPs, Members, Ticket Buyers, Users, Consumers, VIPs, Volunteers, Annual / Major Donors, Advisors, Volunteers, Annual / Major Donors, Advisors, Advocates, Legislators, Strategic Partners, Sponsors …Advocates, Legislators, Strategic Partners, Sponsors …

UsersUsers• Management, Employees, VisitorsManagement, Employees, Visitors

SuppliersSuppliers• Services - ConsultantsServices - Consultants

• CRM / Customer Development ExpertsCRM / Customer Development Experts

• Products - TechnologyProducts - Technology• Software, Hardware, ConnectivitySoftware, Hardware, Connectivity

CRM Processes / MappingCRM Processes / Mapping

Re-examine all of your Re-examine all of your customer managementcustomer management business processes.business processes.

Re-/define where CRM provides the Re-/define where CRM provides the greatest value greatest value to your “best” customers and your organizationto your “best” customers and your organization.. Don’t “repave the cow paths”Don’t “repave the cow paths”

IncrementallyIncrementally implement CRM to improve implement CRM to improve toptop targeted processes.targeted processes. Ex. Ex. Subscription RenewalSubscription Renewal processes processes

Customer Relationship Customer Relationship Management CRM ModelManagement CRM Model

Non-Profit / Arts Organization Non-Profit / Arts Organization eCRMeCRM Model Model

Non-Profit / Arts Non-Profit / Arts Organization Organization eCRMeCRM Systems Systems

E-MarketingE-Marketing ManagementManagement• E-mail Marketing:E-mail Marketing: Alerts, E-Newsletter Management Alerts, E-Newsletter Management• E-Surveying:E-Surveying: Progressive Profiling Management Progressive Profiling Management• Viral Marketing: Viral Marketing: Tell-a-Friend ManagementTell-a-Friend Management• Web Design: Web Design: Registration, Subscription, VIP ManagementRegistration, Subscription, VIP Management• Online CommunityOnline Community / E-Suggestion Box / Blog Management / E-Suggestion Box / Blog Management• E-Commerce:E-Commerce: Memberships, Event Registration Management Memberships, Event Registration Management• Affiliate Management:Affiliate Management: Sponsorship Management Sponsorship Management (Boston Symphony)(Boston Symphony)

• Reporting / Analysis: Reporting / Analysis: Profiles, Behaviors…Profiles, Behaviors…

CRM Technology / CRM Technology / InfrastructureInfrastructure

Operating SystemsOperating Systems• Windows 9x…, Mac, Unix, Linux, BrowserWindows 9x…, Mac, Unix, Linux, Browser

Point Solutions vs. SuitePoint Solutions vs. Suite• Homegrown, Packaged or HostedHomegrown, Packaged or Hosted• Toolkit, Integrated Best of Breed or All-in-OneToolkit, Integrated Best of Breed or All-in-One

Application/Data IntegrationApplication/Data Integration• Accounting, Financial, Other SystemsAccounting, Financial, Other Systems

IT / ConsultantIT / Consultant• Support, Budget, TimeSupport, Budget, Time

Why Arts OrganizationsWhy Arts Organizations Must Adopt CRM Must Adopt CRM

• Arts groups today are struggling to Arts groups today are struggling to do more with lessdo more with less..• Rising competitionRising competition for entertainment/donor dollars, for entertainment/donor dollars,

especially as supporters reduce the number of causes they especially as supporters reduce the number of causes they support.support.

• TThe he needneed for new programs and services for new programs and services continues to growcontinues to grow..• Budgets have tightenedBudgets have tightened in the wake of declining in the wake of declining

endowments, reduced government, corporate and endowments, reduced government, corporate and foundation funding.foundation funding.

• Organizations Organizations are finding it are finding it tougher to sustain salestougher to sustain sales, , fundraising and other forms of constituent support as fundraising and other forms of constituent support as ttraditionalraditional marketing models are not working as well.marketing models are not working as well.

• Must Must add and integrate additional customer information and add and integrate additional customer information and communication channels communication channels to respond to demand.to respond to demand.

• The “New Consumer” / “Buyer-Centric” market The “New Consumer” / “Buyer-Centric” market demands itdemands it..

The “New Consumer” /The “New Consumer” / “Buyer-Centric” Market “Buyer-Centric” Market

RelevancyRelevancy• I am nI am not overloaded by irrelevant data.ot overloaded by irrelevant data.

ExperiencesExperiences• I seek “Memorable and Remarkable Experiences” over Products.I seek “Memorable and Remarkable Experiences” over Products.

AttentionAttention• I am uI am unwilling to wastenwilling to waste attention. You must earn It. attention. You must earn It.

ValueValue• I eI expect to receive 2-3x value in return for investing my attention.xpect to receive 2-3x value in return for investing my attention.

Desire For Knowledge and IndividualityDesire For Knowledge and Individuality• I desire information that is valuable to me because it enables me to decide I desire information that is valuable to me because it enables me to decide

what to do, and how best to do it.what to do, and how best to do it.

Decoded ComplexityDecoded Complexity• I will turn to reliable sources of “evaluated” information and may find it I will turn to reliable sources of “evaluated” information and may find it

convenient to complete my purchase at the same time, and at the same convenient to complete my purchase at the same time, and at the same point.point.

The “New Consumer” /The “New Consumer” /“Buyer-Centric” Market“Buyer-Centric” Market

Not Deliberately Misled or ConfusedNot Deliberately Misled or Confused• Your uncoordinated marketing communications result in a lack of Your uncoordinated marketing communications result in a lack of

congruency or no “single version of the truth” to me.congruency or no “single version of the truth” to me.

Organizational MemoryOrganizational Memory• I expect all employees that I interact with to “know” me.I expect all employees that I interact with to “know” me.

Respects PrivacyRespects Privacy• My data is not shared with anyone and is only used to improve My data is not shared with anyone and is only used to improve

your value and service my needs.your value and service my needs.

Problems and NeedsProblems and Needs• I expect you to solve my current and future problems and needs I expect you to solve my current and future problems and needs

quickly, professionally and efficiently.quickly, professionally and efficiently.

Can Quickly Find Information Pertinent to Current InterestsCan Quickly Find Information Pertinent to Current Interests• Ideal: Let me define what information I am interested in, and “an Ideal: Let me define what information I am interested in, and “an

agent” would go and find it for me, and report back later in a form, agent” would go and find it for me, and report back later in a form, at a time, on a device, and over a medium appropriate to me.at a time, on a device, and over a medium appropriate to me.

CRM Goals, Benefits and CRM Goals, Benefits and ValueValue

Increased Hard / Soft Results ($,%,#)Increased Hard / Soft Results ($,%,#) Internal:Internal: Revenue,Revenue, Margins, Profitability, Results, ROI, Margins, Profitability, Results, ROI,

ROA, Conversion Rates, Knowledge, Strategy, Efficiency, ROA, Conversion Rates, Knowledge, Strategy, Efficiency, Effectiveness, Creativity, Products, Innovation, Morale, Effectiveness, Creativity, Products, Innovation, Morale, Customer Focus…Customer Focus…

External:External: Customer Acquisition, Up-selling, Cross-selling, Customer Acquisition, Up-selling, Cross-selling, Personalization, Interaction, Feedback, Service, Satisfaction, Personalization, Interaction, Feedback, Service, Satisfaction, Loyalty, Evangelism, Relationships, Value, Understanding…Loyalty, Evangelism, Relationships, Value, Understanding…

Decreased Hard / Soft Results Decreased Hard / Soft Results ($,%,#)($,%,#) Internal:Internal: Costs,Costs, Time, Errors, Employee Defection, Time, Errors, Employee Defection,

Frustration, Fear, Uncertainty, Doubt… Frustration, Fear, Uncertainty, Doubt… External:External: Customer Issues, Complaints, Attrition, Churn Customer Issues, Complaints, Attrition, Churn

Dissatisfaction…Dissatisfaction…

CRM MetricsCRM Metrics

Response RatesResponse Rates• Well-executed Well-executed event-driven marketingevent-driven marketing campaigns typically campaigns typically

deliver response rates of the order of deliver response rates of the order of 25% - 50%.25% - 50%.Increased SalesIncreased Sales• A well-used CRM system typically yields a direct sales A well-used CRM system typically yields a direct sales

revenue increase of revenue increase of 10%-20%.10%-20%.Customer RetentionCustomer Retention• Improvement of Average Observed Customer benefitImprovement of Average Observed Customer benefit 10%-18%10%-18% for for

Customers That Formally Measured.Customers That Formally Measured.

ROI JustificationROI Justification• AA 10%10% improvement in customer retention and increased improvement in customer retention and increased

revenuesrevenues and a and a 14%14% increase in customer satisfaction, increase in customer satisfaction, though small, can provide all the justification any company though small, can provide all the justification any company needs to implement a CRM system. needs to implement a CRM system. ((Aberdeen Group 2003)Aberdeen Group 2003)

CRM Project PlanningCRM Project PlanningCRM Innovation ManagementCRM Innovation Management tmtm

1. Investigate Needs1. Investigate Needs• Define SuccessesDefine Successes• Identify GapsIdentify Gaps

Define Organizational / Customer RequirementsDefine Organizational / Customer Requirements• Use Cases, Internal/External ProcessesUse Cases, Internal/External Processes• Features, Functions and TechnicalFeatures, Functions and Technical

2. Create Ideas2. Create Ideas• Business Case, CRM PlanBusiness Case, CRM Plan

• Cost Justification, ROICost Justification, ROI

4. 4. Evaluate SolutionsEvaluate Solutions• Select based on Best Fit to RequirementsSelect based on Best Fit to Requirements

CRM Project ManagementCRM Project Management

4. Activate Plans4. Activate Plans• Prioritize - ScopePrioritize - Scope• Design - ReviewDesign - Review• Install - ConfigureInstall - Configure• Pilot - AdjustPilot - Adjust• Launch - MeasureLaunch - Measure• Support - GrowSupport - Grow

CRM Best Practices / CRM Best Practices / Critical Success FactorsCritical Success Factors

Customer-Centric DesignCustomer-Centric Design• Leverage Your Marketing Plan, Strategies and Segments.Leverage Your Marketing Plan, Strategies and Segments.• Based on Customer Value, Requirements and Related Processes.Based on Customer Value, Requirements and Related Processes.

Project Plan and MethodologyProject Plan and Methodology• Establish Prioritized and Firm Requirements, Scope, Team.Establish Prioritized and Firm Requirements, Scope, Team.• Nuggets: Demonstrate credibility-building quick results first.Nuggets: Demonstrate credibility-building quick results first.

Top Management SponsorshipTop Management Sponsorship• Secure On-going Figurehead, Vision, Communication, Commitment.Secure On-going Figurehead, Vision, Communication, Commitment.

User Buy-in and UseUser Buy-in and Use• Train, Fun, Communication, Enthusiasm, Motivation, Workshops, Support, Train, Fun, Communication, Enthusiasm, Motivation, Workshops, Support,

Recognition, Rewards, Punishment?Recognition, Rewards, Punishment?

Track Key Metrics and GrowTrack Key Metrics and Grow• Increased / Decreased Sales, Costs, Profitability, Satisfaction $, %, #…Increased / Decreased Sales, Costs, Profitability, Satisfaction $, %, #…

How well has CRM solved your current business problems and delivered How well has CRM solved your current business problems and delivered results?results?

Arts OrganizationsArts OrganizationsCRM Case StudiesCRM Case Studies

• The Royal Shakespeare CompanyThe Royal Shakespeare Company:: Needed first-rate data analysis of our Needed first-rate data analysis of our customer information and feedback to inform programming, pricing and customer information and feedback to inform programming, pricing and virtually every other aspect of their business. Wanted to create an organization virtually every other aspect of their business. Wanted to create an organization that was thoroughly customer informed. “We can now confidently predict that that was thoroughly customer informed. “We can now confidently predict that the use of CRM is going to help us to achieve most of our business objectivesthe use of CRM is going to help us to achieve most of our business objectives. . It shows that we can all benefit: we will be more efficient and - because we will It shows that we can all benefit: we will be more efficient and - because we will be better informed - we can be bolder in our decision making. And it works at be better informed - we can be bolder in our decision making. And it works at every level from artistic planning decisions down to seating plans."every level from artistic planning decisions down to seating plans."

• Carnegie Museums of PittsburghCarnegie Museums of Pittsburgh:: Increased its email house file more than Increased its email house file more than 50 %50 % in just 8 months. Now sends quarterly newsletters to members.  The average in just 8 months. Now sends quarterly newsletters to members.  The average online gift is online gift is 16 %16 % higher than offline gifts.  Attendance is up for events that are higher than offline gifts.  Attendance is up for events that are marketed & managed online. marketed & managed online. 

• HoustonPBSHoustonPBS:: Raised more than Raised more than $123,000$123,000 online via pledge drives in 14 online via pledge drives in 14 months.  Has completed months.  Has completed 33%33% of event registrations online. Used online of event registrations online. Used online communications in the wake of eliminating roughly communications in the wake of eliminating roughly $150,000$150,000 annually in paper- annually in paper-based communications.  Just launched a “members only” area, offering a wide based communications.  Just launched a “members only” area, offering a wide array of services, which will help to grow loyalty.array of services, which will help to grow loyalty.

Arts Group Arts Group CRM Issues & ExamplesCRM Issues & Examples

How can Arts organizations:How can Arts organizations:·   ·   Employ basic CRM strategies to get more out of Employ basic CRM strategies to get more out of

under-targeted / marketed contacts that languish under-targeted / marketed contacts that languish on mailing lists, or are used inconsistently at best?on mailing lists, or are used inconsistently at best?

• Intercept/E-/Surveys to discover and capture Intercept/E-/Surveys to discover and capture contacts (demographics, past interactions, contacts (demographics, past interactions, interests, needs, behaviors,interests, needs, behaviors, problems, problems, aspirations…),aspirations…), desired format and frequency of desired format and frequency of communications to communications to segment segment and increase and increase marketing relevancy and value.marketing relevancy and value.

• Incentives, Opt-in Registrations, Subscriptions, E-Incentives, Opt-in Registrations, Subscriptions, E-Newsletters, Auto-Responder “Courses”… Newsletters, Auto-Responder “Courses”…

Arts Group Arts Group CRM Issues & ExamplesCRM Issues & Examples

How can Arts organizations:How can Arts organizations:·  ·  Use an upgraded CRM program to increase ROI on Use an upgraded CRM program to increase ROI on

the best customers/ heavier users?the best customers/ heavier users?• You You MUSTMUST understand what your Customers understand what your Customers THINKTHINK

and how they behave through continual question-and how they behave through continual question-asking and capture it in your enhanced CRM asking and capture it in your enhanced CRM database to drive loyalty & evangelism marketing database to drive loyalty & evangelism marketing communications and campaigns.communications and campaigns.

• Improved Customer E-/Surveying, Profiling, Improved Customer E-/Surveying, Profiling, Segmenting, Targeting, Communication, Segmenting, Targeting, Communication, Interaction, Conversion, Up-Sell/Cross-Sell, Loyalty, Interaction, Conversion, Up-Sell/Cross-Sell, Loyalty, Viral E-Mail, VIP Program, Evangelism.Viral E-Mail, VIP Program, Evangelism.

Arts Group Arts Group CRM Issues & ExamplesCRM Issues & Examples

How can Arts organizations:How can Arts organizations:·  ·  Begin to think about solving problems and use a Begin to think about solving problems and use a

CRM system for their users i.e. providing concierge CRM system for their users i.e. providing concierge type services to incent attendance and make things type services to incent attendance and make things easier?easier?

• Leverage The Experience Economy / Customer Experience Leverage The Experience Economy / Customer Experience Management (CEM): Need to transform your value delivery to Management (CEM): Need to transform your value delivery to constantly creating memorable and remarkable customer constantly creating memorable and remarkable customer experiencesexperiences vs. “selling” art, tickets, admissions. vs. “selling” art, tickets, admissions.

• Remove barriers to Non-attendance by E-/Surveying, Remove barriers to Non-attendance by E-/Surveying, recording in your CRM database, partnering/extending your recording in your CRM database, partnering/extending your services offering, and target Direct Mail/E-Mail/Web marketing. services offering, and target Direct Mail/E-Mail/Web marketing.

• Save customers time. Think/Act like Amazon.comSave customers time. Think/Act like Amazon.com

Arts Group Arts Group CRM Issues & ExamplesCRM Issues & Examples

How can Arts organizations:How can Arts organizations:·   ·   Use a CRM program to quickly respond to Use a CRM program to quickly respond to

changing market realities?changing market realities?• Down economic conditions, war and the growing Down economic conditions, war and the growing

uncertainties require maximizing “mind-share” uncertainties require maximizing “mind-share” with your constituents, getting them involved, and with your constituents, getting them involved, and increasing and sustaining your relevance.increasing and sustaining your relevance.

• Create a community. Use marketing metaphors.Create a community. Use marketing metaphors.• Leverage E-/Surveys, E-Marketing/E-Mail, Web Leverage E-/Surveys, E-Marketing/E-Mail, Web

Site, Communities, Blogs, Testimonials, Customer Site, Communities, Blogs, Testimonials, Customer Concern Management database, FAQs…Concern Management database, FAQs…

WHAT CRM Tactics Can We Do WHAT CRM Tactics Can We Do Quickly, Easily, Inexpensively & Quickly, Easily, Inexpensively &

Get Results?Get Results?

1.1. Define Your CRM Process, Requirements and Select a System Define Your CRM Process, Requirements and Select a System that:that:

• Best Meets Your Current & Future Requirements.Best Meets Your Current & Future Requirements.• Delivers that Greatest Value to Your Customers - Ask ThemDelivers that Greatest Value to Your Customers - Ask Them2.2. Implement and Leverage the CRM System:Implement and Leverage the CRM System:• Based on your Marketing/Project Plan & Business Case.Based on your Marketing/Project Plan & Business Case.• Define, Target, Personalize, Test, Manage, Measure, Tune Define, Target, Personalize, Test, Manage, Measure, Tune

integrated Offline/Online Marketing Campaigns.integrated Offline/Online Marketing Campaigns.3.3. Develop & Segment Your Contact List / Database:Develop & Segment Your Contact List / Database:• Top 20%, Most Valuable / Best Potential Customers, Network Top 20%, Most Valuable / Best Potential Customers, Network

Hubs/Media, Influentials by Interests, Needs…Hubs/Media, Influentials by Interests, Needs…• Partner on “Fit” Lists, Marketing Campaigns etc.Partner on “Fit” Lists, Marketing Campaigns etc.• Make contacts aware of your Privacy & Data Protection Policy as Make contacts aware of your Privacy & Data Protection Policy as

an initial E-Mail message & Campaign.an initial E-Mail message & Campaign.

Arts Group Arts Group CRM SummaryCRM Summary

·  ·  Arts Groups should focus on CRM:Arts Groups should focus on CRM: • Ease of Use, Intuitive interfaces, Broad but not deep Functionality, Ease of Use, Intuitive interfaces, Broad but not deep Functionality,

Being Rapidly Deployable and Having a Lower Cost to Buy and Being Rapidly Deployable and Having a Lower Cost to Buy and Maintain to:Maintain to:– Increase Customer Acquisition, Retention, Loyalty and EvangelismIncrease Customer Acquisition, Retention, Loyalty and Evangelism– Increase Efficiency and Effectiveness - ProductivityIncrease Efficiency and Effectiveness - Productivity– Increase Revenue and Decrease Time and CostsIncrease Revenue and Decrease Time and Costs

• SegmentSegment and c and consider the onsider the valuevalue and appropriateness of and appropriateness of communication channels and timing, responsiveness and communication channels and timing, responsiveness and honesty in customer inquiries for information.honesty in customer inquiries for information.

• Permission-based MarketingPermission-based Marketing, Permission E-Letters, E-/Surveys, , Permission E-Letters, E-/Surveys, E-Mail: E-Newsletters, E-Postcards, Viral Marketing/Word of E-Mail: E-Newsletters, E-Postcards, Viral Marketing/Word of Mouth, Online Communities, Registration, Memberships, Mouth, Online Communities, Registration, Memberships, E-/Contests, E-Cause Campaigns / Events…E-/Contests, E-Cause Campaigns / Events…

Arts Group Arts Group CRM 3 Final ThoughtsCRM 3 Final Thoughts

1.1. ““As you better understand your customer base, you will be able to As you better understand your customer base, you will be able to develop ever better business rules and processes, which will fuel develop ever better business rules and processes, which will fuel personalisation engines, drive customer contact strategies and personalisation engines, drive customer contact strategies and maximise marketing effectiveness.”maximise marketing effectiveness.”

2.2. ““Continuing to deliver a consistently improving experience to Continuing to deliver a consistently improving experience to consumers across multiple channels will determine a company’s consumers across multiple channels will determine a company’s ability to retain customers over time, thereby enhancing their ability to retain customers over time, thereby enhancing their lifetime value to the company.”lifetime value to the company.”

3.3. eCRM / E-Mail marketing on-the-job training is playing with fire. eCRM / E-Mail marketing on-the-job training is playing with fire. “It is “It is important to work with a team experienced in delivering successful important to work with a team experienced in delivering successful eCRM projects and integrating them with existing business eCRM projects and integrating them with existing business processes. eCRM / E-Marketing, more than any other discipline, processes. eCRM / E-Marketing, more than any other discipline, represents the ultimate fusion of marketing and IT skills and represents the ultimate fusion of marketing and IT skills and knowledge.“knowledge.“

4.4. 1 Year Benchmark: How much have you improved your key 1 Year Benchmark: How much have you improved your key customer development metrics by May 17, 2004?customer development metrics by May 17, 2004?

CRM meets eCRM: An Executive BriefingCRM meets eCRM: An Executive Briefing, , February 2001, February 2001, Ashley FriedleinAshley Friedlein

Arts Group CRM Success:Arts Group CRM Success:

A Customer and A Customer and Competitive NecessityCompetitive Necessity

ASPIREASPIRETotal Customer Development Total Customer Development tmtm

November 2000 - Present

The Joyce Foundation

The eCAPA Experience:

Permission Based Permission Based MarketingMarketing

• A program based on consumers A program based on consumers granting a marketer permission to granting a marketer permission to communicate with them.communicate with them.

Call to Action:Call to Action:

Sign up for eCAPA and receive Sign up for eCAPA and receive special offers for Chicago Theatre special offers for Chicago Theatre eventsevents

Basics of eCAPA Basics of eCAPA Membership:Membership:

• Anyone with an email address can join at no Anyone with an email address can join at no costcost

• Members have ability to purchase tickets to Members have ability to purchase tickets to most Chicago Theatre shows before general most Chicago Theatre shows before general publicpublic

• Members will occasionally receive email only Members will occasionally receive email only offers for discounted or free ticketsoffers for discounted or free tickets

• Members will never have their name/email Members will never have their name/email address sold or given to another organization.address sold or given to another organization.

• Members can opt out at any timeMembers can opt out at any time

Our Philosophy:Our Philosophy:

Only send messages that Only send messages that have value to the consumer.have value to the consumer.

eCAPA: The First YeareCAPA: The First Year

• Most addresses collected via lobby Most addresses collected via lobby interceptsintercepts

• 5-10% of audiences typically 5-10% of audiences typically responded (150-350 email responded (150-350 email addresses for a sold out show)addresses for a sold out show)

• 4,000 names by Spring 20014,000 names by Spring 2001

eCAPA: The First YeareCAPA: The First Year

• Almost all email addresses entered Almost all email addresses entered manually by Chicago Theatre staffmanually by Chicago Theatre staff

• Database hosted by list-serv companyDatabase hosted by list-serv company– Emails sent in text formatEmails sent in text format– No segmentationNo segmentation– No information on click-thrus, bounces or No information on click-thrus, bounces or

opt-outsopt-outs– Effectiveness measured entirely by number Effectiveness measured entirely by number

of purchases made with ticket codeof purchases made with ticket code

eCAPA: The Second eCAPA: The Second YearYear

August, 2001: August, 2001:

CAPA receives funding from the Joyce CAPA receives funding from the Joyce Foundation to further develop program Foundation to further develop program with an emphasis on attracting African-with an emphasis on attracting African-American and Hispanic audiences, and American and Hispanic audiences, and with a goal toward sharing “best with a goal toward sharing “best practices” with other organizationspractices” with other organizations

eCAPA: The Second eCAPA: The Second YearYear

• November 2001: CAPA conducts November 2001: CAPA conducts online survey sent to 7,878 online survey sent to 7,878 subscribers (326 respond)subscribers (326 respond)

Survey Respondent Survey Respondent DemographicsDemographics

• 73% female73% female• 70% have no children in household70% have no children in household• EthnicityEthnicity

– 64% Caucasian64% Caucasian– 26% African American26% African American– 6% Hispanic6% Hispanic– 2% Asian2% Asian

Survey Respondent Survey Respondent DemographicsDemographics

eCAPA

2%

12%

24%

31%

29%

1%

64+

55-64

45-54

35-44

21-34

20 or under

Survey Respondent Survey Respondent Email UsageEmail Usage

• BusinessBusiness– Several times a day (66%)Several times a day (66%)– Once a day (8%)Once a day (8%)– N/A (21%)N/A (21%)– 2-3 times a week (3%)2-3 times a week (3%)– Once a week (2%)Once a week (2%)

• PersonalPersonal– Several times a day (52%)Several times a day (52%)– Once a Day (24%)Once a Day (24%)– 2-3 times a week (13%)2-3 times a week (13%)– Less than once a week (5%)Less than once a week (5%)– N/A (4%)N/A (4%)

Why do you delete Why do you delete unread email?unread email?

• Not interested in subject line (67%)Not interested in subject line (67%)

• Don’t know who from (42%)Don’t know who from (42%)

• Looked like spam (33%)Looked like spam (33%)

Where did you sign up Where did you sign up for eCAPAfor eCAPA??

• 48% at Chicago Theatre event48% at Chicago Theatre event

• 35% via the CAPA website35% via the CAPA website

• 12% via ticketmaster.com12% via ticketmaster.com

(In past year higher percentages coming (In past year higher percentages coming from Ticketmaster and CAPA websites)from Ticketmaster and CAPA websites)

ResponsivenessResponsiveness

• 32% have purchased tickets after 32% have purchased tickets after receiving e-mailreceiving e-mail– 25% of men25% of men– 18% of women18% of women

• 20% forward eCAPA e-mails to 20% forward eCAPA e-mails to othersothers

Customer Satisfaction Customer Satisfaction

88% very or somewhat satisfied88% very or somewhat satisfied

6% somewhat unsatisfied6% somewhat unsatisfied

1% mostly unsatisfied1% mostly unsatisfied

5% n/a5% n/a

How Often Do You Want How Often Do You Want Emails?Emails?

• Once a week (30%)Once a week (30%)• As often as new info is As often as new info is

available (26%)available (26%)• Twice a month (21%)Twice a month (21%)• Once a month (11%)Once a month (11%)

What Do Audiences What Do Audiences Want?Want?

• Discounts (99%)Discounts (99%)• Ticket presale (97%)Ticket presale (97%)• Getting regular info via e-mail (94%)Getting regular info via e-mail (94%)• Ability to link to further info on artist or Ability to link to further info on artist or

event (92%)event (92%)• Special offers from sponsors (88%)Special offers from sponsors (88%)

eCAPA: Spring 2002eCAPA: Spring 2002

• Database is about 10,000 strongDatabase is about 10,000 strong• Ticket sales positively affected:Ticket sales positively affected:

– December 2001: 450 tickets to December 2001: 450 tickets to Concert for a Landmine Free WorldConcert for a Landmine Free World

– May 2002: 818 tickets for over May 2002: 818 tickets for over $40,000 to Ellen DeGeneres$40,000 to Ellen DeGeneres

– July 2002: CAPA raffled 50 tickets to July 2002: CAPA raffled 50 tickets to “Road to Perdition” – “Road to Perdition” – received 1700 received 1700 requests in 24 hoursrequests in 24 hours

May 2002: Getting May 2002: Getting FancierFancier

• Began using PatronMail, an Began using PatronMail, an internet-based Application Service internet-based Application Service ProviderProvider– Sending HTML emails, as well as textSending HTML emails, as well as text– Track open rates, click-thrus, opt-outs, Track open rates, click-thrus, opt-outs,

referrals and bouncesreferrals and bounces– Allows users to indicate preferences - Allows users to indicate preferences -

segmentationsegmentation

Text E-MailText E-Mail

HTML E-MailHTML E-Mail

Why Segmentation?Why Segmentation?

““I signed up because I wanted to get I signed up because I wanted to get tickets for Prince – I don’t care tickets for Prince – I don’t care about Donny Osmond!”about Donny Osmond!”

Segmentation = Better ResultsSegmentation = Better Results

• Campaigns sent to segmented lists have Campaigns sent to segmented lists have 49% open rate, compared to 27% in 49% open rate, compared to 27% in non-segmented lists (CAPA experience)non-segmented lists (CAPA experience)

• From May – October 2002, only 21 From May – October 2002, only 21 people on segmented lists (less than people on segmented lists (less than 1%) opted out – 555 (almost 4%) opt-out 1%) opted out – 555 (almost 4%) opt-out rate on non-segmented listsrate on non-segmented lists

• Relevance = RetentionRelevance = Retention

E-Survey / Progressive ProfilingE-Survey / Progressive Profiling

August 2002: August 2002: Time for a Check Up!Time for a Check Up!

• Second survey went to 10,464 people – Second survey went to 10,464 people – over 1,400 people respondedover 1,400 people responded

• Welcomed suggestions and comments Welcomed suggestions and comments on programming, eCAPA and theatre on programming, eCAPA and theatre experienceexperience

• Comments overwhelmingly positive: Comments overwhelmingly positive: consensus was consensus was “give us more!”“give us more!”

eCAPA User Comments eCAPA User Comments

““I enjoy the email updates. I enjoy the email updates. I don’t need any I don’t need any more mail at home to sort through and recycle.more mail at home to sort through and recycle. This system works great!” This system works great!”

““I like the I like the frequent but not intrusivefrequent but not intrusive nature of nature of your marketing. I like it that I’m informed your marketing. I like it that I’m informed about upcoming performances.”about upcoming performances.”

““I enjoy getting the e-mail remindersI enjoy getting the e-mail reminders, without , without which I would miss too many opportunities to which I would miss too many opportunities to see favorite performers.”see favorite performers.”

eCAPA List GrowtheCAPA List Growth

0

4000

7878

1119913525

15550

18962

23554

Click Right In!Click Right In!

Getting your eMarketing Getting your eMarketing Campaign StartedCampaign Started

Develop GuidelinesDevelop Guidelines

• What needs/wants will your email What needs/wants will your email program fulfill?program fulfill?

• How often will you communicate How often will you communicate with your subscribers?with your subscribers?

Check Out Your Check Out Your OptionsOptions

• Research internal software and external Research internal software and external hosting options for storing your hosting options for storing your databasedatabase

• We recommend making sure you can We recommend making sure you can track results and send HTML emailstrack results and send HTML emails

• HTML messages are 340% more HTML messages are 340% more effective, but some users still can’t effective, but some users still can’t receive them. Most ASPs have “sniffer” receive them. Most ASPs have “sniffer” technology .technology .

Sign up PatronsSign up Patrons

• Encourage direct mail patrons to move Encourage direct mail patrons to move to emailto email

• Make email program part of overall Make email program part of overall marketing scheme – include mentions in marketing scheme – include mentions in all materialsall materials

• Place sign-up prominently on websitePlace sign-up prominently on website• Make sure box office staff offer Make sure box office staff offer

information about email program and information about email program and encourage sign-up. encourage sign-up.

Methods of Building a Methods of Building a ListList

• Adding w/o permission – NO!Adding w/o permission – NO!• Opt-out: patrons must Opt-out: patrons must ununcheck boxcheck box• Opt-In: Customers indicate Opt-In: Customers indicate

willingness to receive infowillingness to receive info• Double opt-in: customer must reply Double opt-in: customer must reply

to email to be added to email to be added

Make Sure You Give Make Sure You Give Patrons What They WantPatrons What They Want

• Use on-line surveys to understand Use on-line surveys to understand patrons needspatrons needs

• Talk to patrons at venue, on phone, Talk to patrons at venue, on phone, via emailvia email

• Take their suggestions seriously – Take their suggestions seriously – they’re the boss!they’re the boss!

Internet MarketingInternet Marketing is Viral is Viral

Encourage and incent forwarding – a Encourage and incent forwarding – a relevant email can reach more people relevant email can reach more people through forwardingthrough forwarding

• CAPA recently entered patrons who told friends about CAPA recently entered patrons who told friends about eCAPA into a drawing for a Cirque du Soleil VIP package eCAPA into a drawing for a Cirque du Soleil VIP package – almost 1000 people passed the email on to their – almost 1000 people passed the email on to their friendsfriends

• April 2003’s “The Wiggles” presale went viral and April 2003’s “The Wiggles” presale went viral and resulted in over 2000 tickets sold and 100 new CAPA resulted in over 2000 tickets sold and 100 new CAPA membershipsmemberships

Use Good Subject Use Good Subject LinesLines

• You have 4-5 words to capture attentionYou have 4-5 words to capture attention• Be consistent so they’ll recognize youBe consistent so they’ll recognize you• Avoid “free”, “!!!” all caps and other Avoid “free”, “!!!” all caps and other

frequent “spam” terms – you might get frequent “spam” terms – you might get blockedblocked

• ““From” line should clearly indicate From” line should clearly indicate sender (in our case, CAPA Chicago)sender (in our case, CAPA Chicago)

The ProcessThe Process

• Develop offerDevelop offer• Create emailCreate email• TestTest• SendSend• Evaluate resultsEvaluate results

Keeping Your ListKeeping Your List

• Work hard to keep information Work hard to keep information relevant relevant

• Customer service is key – Customer service is key – designate someone to respond designate someone to respond quickly to problems or complaintsquickly to problems or complaints

• Never, never, never violate Never, never, never violate permission!permission!

Small Scale eMarketingSmall Scale eMarketing

• You can use Outlook/Lotus, etcYou can use Outlook/Lotus, etc• Remember to use bcc field!Remember to use bcc field!• Ask your friends to sign upAsk your friends to sign up• Mobilize members to recruit & Mobilize members to recruit &

share email addressesshare email addresses• Ask permission!Ask permission!• Make it interesting & compellingMake it interesting & compelling

The Future is Now!The Future is Now!

• Streaming videoStreaming video• Audio clips Audio clips

Currently just over half of email Currently just over half of email users can interact w/streaming users can interact w/streaming media, but that will go up!media, but that will go up!

Email marketing Email marketing benefits:benefits:

• InexpensiveInexpensive• Instant resultsInstant results• Encourages interactionEncourages interaction• Drives Ticket Sales RevenueDrives Ticket Sales Revenue• Drives Membership RevenueDrives Membership Revenue• Decreases Marketing CostsDecreases Marketing Costs

Conclusion:Conclusion:

Permission based email Permission based email marketing is an essential part marketing is an essential part of a well-rounded marketing of a well-rounded marketing planplan

Be sure to use email properly – Be sure to use email properly – get permission and be relevant!get permission and be relevant!

Permission Based Email Permission Based Email MarketingMarketing

The Future of Audience The Future of Audience DevelopmentDevelopment

The Joyce Foundation

CRM ResourcesCRM Resources

• Websites, E-Zines, White PapersWebsites, E-Zines, White Paperso CRMCommunity.comCRMCommunity.como CRMGuru.comCRMGuru.como DestinationCRM.com (CRM Magazine)DestinationCRM.com (CRM Magazine)o SearchCRM.comSearchCRM.com

• Publications & ArticlesPublications & Articleso CRM Magazine www.DestinationCRM.com CRM Magazine www.DestinationCRM.com o 1 to 1 Magazine www.1to1.com 1 to 1 Magazine www.1to1.com o Customer Inter@ction Solutions Magazine www.cismag.com Customer Inter@ction Solutions Magazine www.cismag.com

• BooksBookso CRM Automation, Barton J. GoldenburgCRM Automation, Barton J. Goldenburgo The CRM Handbook, Jill DycheThe CRM Handbook, Jill Dycheo The Ultimate CRM Handbook: Strategies and Concepts for Building Enduring Customer Loyalty and Profitability, The Ultimate CRM Handbook: Strategies and Concepts for Building Enduring Customer Loyalty and Profitability,

John G. FreelandJohn G. Freelando CRM at the Speed of Light: Capturing and Keeping Customers in Internet Real Time, Paul GreenbergCRM at the Speed of Light: Capturing and Keeping Customers in Internet Real Time, Paul Greenberg

• Associations, Groups, Meetings & ConferencesAssociations, Groups, Meetings & Conferenceso Customer Relationship Management Association - CRMA-Chicago www.crma-chicago.org Customer Relationship Management Association - CRMA-Chicago www.crma-chicago.org o DCI CRM Conferences www.dci.comDCI CRM Conferences www.dci.como Association for the Advancement of Relationship Marketing - AARM www.aarm.org Association for the Advancement of Relationship Marketing - AARM www.aarm.org

• ConsultantsConsultantso ASPIRE - Arts Group CRM QuickStart* www.aspireto.com/AGCRMQS.htmASPIRE - Arts Group CRM QuickStart* www.aspireto.com/AGCRMQS.htmo Accenture www.accenture.com Accenture www.accenture.com o Cambridge Solutions www.cambridge-solutions.comCambridge Solutions www.cambridge-solutions.com

E-Marketing ResourcesE-Marketing Resources

• Websites, E-Zines, White PapersWebsites, E-Zines, White Paperso E-MailSherpa www.marketingsherpa.comE-MailSherpa www.marketingsherpa.como Full Sterne Ahead, Jim Sterne's E-Newsletter www.targeting.comFull Sterne Ahead, Jim Sterne's E-Newsletter www.targeting.como ClickZ www.clickz.comClickZ www.clickz.com

• Publications & ArticlesPublications & Articleso Direct Magazine www.DirectMag.com Direct Magazine www.DirectMag.com o 1 to 1 Magazine www.1to1.com 1 to 1 Magazine www.1to1.com o Direct Marketing News wwwDMnews.com Direct Marketing News wwwDMnews.com

• BooksBookso Permission Marketing, Seth Godin, Simon & SchusterPermission Marketing, Seth Godin, Simon & Schustero Unleashing the Idea Virus, Seth Godin, HyperionUnleashing the Idea Virus, Seth Godin, Hyperiono Don't Make Me Think, Steve Krug, New RidersDon't Make Me Think, Steve Krug, New Riderso Email Marketing, Jim Sterne and Anthony Priore, WileyEmail Marketing, Jim Sterne and Anthony Priore, Wiley

• Associations, Groups, Meetings & ConferencesAssociations, Groups, Meetings & Conferenceso Chicago Interactive Marketing Association (CIMA) www.ChicagoIMA.orgChicago Interactive Marketing Association (CIMA) www.ChicagoIMA.orgo Direct Marketing Association (DMA) www.DMA.comDirect Marketing Association (DMA) www.DMA.como American Marketing Association (AMA) www.MarketingPower.comAmerican Marketing Association (AMA) www.MarketingPower.com

• ConsultantsConsultantso ASPIRE - Arts Group E-Marketing QuickStart* www.aspireto.com/AGEMQS.htmASPIRE - Arts Group E-Marketing QuickStart* www.aspireto.com/AGEMQS.htmo Carat Interactive Carat Interactive www.carat-interactive.comwww.carat-interactive.como TMA E-Marketing www.tmaemarketing.com TMA E-Marketing www.tmaemarketing.com

Questions & AnswersQuestions & Answers

• Strategy?Strategy?• Process?Process?• People?People?• Technology?Technology?• Planning?Planning?• Implementation?Implementation?• Results?Results?• Other?Other?

Follow-Up Questions?Follow-Up Questions?

Tim SullivanTim Sullivan• Managing Consultant, ASPIRE - Total Customer Development Managing Consultant, ASPIRE - Total Customer Development

Consulting & Delivery Consulting & Delivery ((www.aspireto.com)www.aspireto.com)

• CRM and Interactive Marketing Pioneer and Innovator with 15 CRM and Interactive Marketing Pioneer and Innovator with 15 Years of Experience. Years of Experience. **(t **(tim.p.sullivan@aspireto.com)im.p.sullivan@aspireto.com)

• Board Member, Customer Relationship Management Board Member, Customer Relationship Management Association – CRMA-Chicago. Association – CRMA-Chicago. ((www.www.CRMA-Chicago.org)CRMA-Chicago.org)

**(773-252-4140) **(773-252-4140)

Jim HirschJim Hirsch• Vice President and Executive Director, Chicago Theatre and Vice President and Executive Director, Chicago Theatre and

Chicago Association for the Performing Arts – CAPA.Chicago Association for the Performing Arts – CAPA.• Other Relevant Credentials? Other Relevant Credentials? • ((www.CAPA.com)www.CAPA.com) ((JHirsch@CAPA.com) (312-263-1138)JHirsch@CAPA.com) (312-263-1138)

Thank YouThank You

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