CRM Yesterday, Today & Tomorrow

Angeli Beltran | Managing Director | Dentsu Mobius |@angelibeltran

“The  purpose  of  a  business  is  to    create  and  keep  a  customer.”

-­‐  Peter  Drucker  

Nestlé Club“Good Food, Good Life”

Nestlé Club

“Building  a  life-­‐long  rela0onship  with  consumers  is  important  to  Nestlé.”

-­‐  Au  Alipao,  VP  Consumer  Services,  Nestle  Philippines

Nestlé Club Yesterday (c late ‘90s)

• Enjoined  125,000  high  value  member  households• Member  communica0ons  via  personalized  direct  mail  and  magazines• Brought  members  to  interact  with  each  other  via  Brand  and  Club  Events• New  Product  and  Recipe  Development  via  Test  Kitchen• Customer  feedback  via  Hotline,  PO  box  • Member-­‐Get-­‐Member  program

As a result,• Program  increased  the  share  of  Nestle  brands  within  the  “cupboard”  among  

members  from  5  out  of  10  to  8  out  of  10.  • Nestle  Club  member  base  had  significantly  more  insistors  and  preferrers  for  

Nestle  brands  vs  non  member  base.• Members  regularly  recommended  Nestle  brands  to  their  family  and  friends• Members  gave  feedback  via  mail  and  phone  calls

What is CRM?

Building stronger relationships with customers

by delivering delightful experiences at every customer interaction,

ultimately winning customer’s advocacy,

resulting to the business’ long term profitability.

Simply,

�MY BRAND�

What customers want has not changed

• Know  who  I  am• Communicate  Relevantly• Listen  and  Respond  to  Me• Be  Consistent• Surprise  and  Delight  Me  • Involve  Me• Value  Me• Empower  Me

Technology : change in behaviour and communications

Consumers  gather  informa0on  and  share  readily  to  others

� � � � �

AZen0on    Interest      Search        Ac0on        Share

The Age of the Empowered Customer

•Collaborate  with  brands•Personalized  experience  •Highly  informed  and  empowered  by  internet  and  social  channels•Highly  communica0ve•Socially  connected•Need  to  feel  valued  con0nuously

The Traditional Funnel

The  Tradi0onal  Funnel  was  Linear

CRM Yesterday

Paid OwnedMagazine  CouponsMagazine  InsertsSurvey  Forms

MailersInsertsEvents

Email/Phone

Member  Get  MemberWOM

Earned

Database

• Priority:  capture  data  for  direct  communica0ons• S0ll  one-­‐way,  and  adver0sing  focused• The  “earned  media”  was  a  consequence  and  “measure”of  loyalty

The Consumer Decision Journey3The consumer decision journey

How consumers make decisionsEvery  day,  people  form  impressions  of  brands  from  touch  points  such   as  advertisements,  news  reports,  conversations  with  family  and  friends,  and  product  experiences.  Unless  consumers  are  actively  shopping,  much  of  that  exposure  appears  wasted.  But  what  happens  when  something  triggers  the  impulse  to  buy?  Those  accumulated  impressions  then  become  crucial  because  they  shape  the  initial-­consideration  set:  the  small  number  of  brands  consumers  regard   at  the  outset  as  potential  purchasing  options.

The  funnel  analogy  suggests  that  consumers  systematically  narrow  the   initial-­consideration  set  as  they  weigh  options,  make  decisions,  and   buy  products.  Then,  the  postsale  phase  becomes  a  trial  period  deter-­ mining  consumer  loyalty  to  brands  and  the  likelihood  of  buying   their  products  again.  Marketers  have  been  taught  to  “push”  marketing  toward  consumers  at  each  stage  of  the  funnel  process  to  influence  their  behavior.  But  our  qualitative  and  quantitative  research  in  the  auto-­ mobile,  skin  care,  insurance,  consumer  electronics,  and  mobile-­telecom  industries  shows  that  something  quite  different  now  occurs.

Actually,  the  decision-­making  process  is  a  more  circular  journey,  with   four  primary  phases  representing  potential  battlegrounds  where  

Q3 2009CDJExhibit 2 of 4Glance: The decision-making process is now a circular journey with four phases: initial consideration; active evaluation, or the process of researching potential purchases; closure, when consumers buy brands; and postpurchase, when consumers experience them. Exhibit title: The consumer decision journey

After purchasing a product or service, the consumer builds expectations based on experience to inform the next decision journey.

Consumers add or subtract brands as they evaluate what they want.

1 3

4

2

The consumer considers an initial set of brands, based on brand perceptions and exposure to recent touch points.

Ultimately, the consumer selects a brand at the moment of purchase.

Moment of purchase

Initial- considerationset

Trigger

Active evaluationInformation gathering, shopping

Postpurchase experience

Loyalty loop

Ongoing exposure

Exhibit 2

The consumer decision journey

A  Circular  Journey

CRM Today

Paid OwnedWebsite

 (custom  content)EDM

Brand  Communi0esCustomer  Service

Social  Media  SitesBloggersReviews

Communi0es

Earned

Database

• Paid  Media  to  acquire  new  customers  by  driving  them  to  the  owned  channels• Owned  channels  are  opportuni0es  to  learn  more  about  customers,  predict  behavior  

to  understand  and  meet  needs• Earned  Media  is  a  placorm  to  bring  together  influencers  and  advocates  to    

collabora0vely  engage,  amplify  Word  of  Mouth,  gather  and  respond  to  customer  feedback

Google  AdsDisplay  AdsSocial  Ads

Relationship with the Empowered Customer

• Learn  who  your  customer  are• Understand  what  your  customers  want• Engage  them  in  a  dialogue• Empower  them!

DellListening and responding to what customers want

• Dell  asks  their  users  to  openly  rate  and  review  their  products• The  feedback  provides  input  to  product  development• Any  product  that  have  consistently  lower  than  3  star  ra<ng  are  discon<nued.  

P&GHelping moms solve everyday problems

• Launched  supersavvyme.co.uk  in  2009,  connec0ng  P&G’s  porcolio  of  brands  to  millions  of  moms.

• Demonstrated  how  P&G  brands  solve  problems  in  mom’s  lives

P&GHelping moms solve everyday problems

Mission  Control  serves  as  a  mul0-­‐tasking  tool  to  help  organize  their  lives.    Co  created  applica0on  made  by  moms  for  momsMums  were  also  able  to  reap  rewards,  unlock  s0ckers  which  they  could  swap  for  coupons,  crea0ng  a  huge  peak  in  sales

Canon EOS Creating a community for EOS Photographers

ChallengeExtend  the  life0me  value  of  the  EOS  customer  by  driving  the  sales  of  lens,  accessories  and  body  upgrades.

Canon EOS Creating a community for EOS Photographers

Customer)Need) Business)Opportunity)

•  Inspira)on+•  Hone+and+

Prac)ce+his+Cra3+•  Connect+with+

Fellow+Photographers+

•  New+skill+sets+have+to+be+matched+by+new+tools+

Canon EOS Creating a community for EOS Photographers

Help%me%perfect%my%cra-%with%your%exper4se%and%experience%

Teach&me&%

Introduce%me%to%a%world%where%we%all%understand%each%other%

Value&me%Connect&me%%

Rewards%and%Recogni4on%

Core  CRM  Idea:    Partner  in  your  quest  for  perfec0on

Canon EOS Creating a community for EOS Photographers

Canon EOS Creating a community for EOS Photographers

KMS CaliforniaEmpowering Stylists to be their own brand

ChallengeBrand  has  very  liZle  awareness,  and  for  the  few  who  know  of  it,  KMS  is  not  an  innova0ve  or  trendy  brand

a brand of

KMS CaliforniaEmpowering Stylists to be their own brand

Customer  InsightIf  stylists  are  empowered  to  further  develop  their  individual  crea0vity  in  style  and  business,  they  can  differen0ate  themselves  in  the  market.  

KMS CaliforniaEmpowering Stylists to be their own brand

Customer)Need) Business)Opportunity)

•  Inspira)on+•  Hone+and+

Prac)ce+his+Cra3+•  Connect+with+

Fellow+Photographers+

•  New+skill+sets+have+to+be+matched+by+new+tools+

Create  their  ownbrand  as  a  stylist

As  KMS  supports  themtheir  individual  expression,  there  will  be  more  styles  usingKMS  products

KMS CaliforniaEmpowering Stylists to be their own brand

Core  CRM  Idea:    FREEDOM OF INDIVIDUAL

STYLE EXPRESSIONKMS empowers you to develop

your own brand to further grow your business

KMS CaliforniaEmpowering Stylists to be their own brand

KMS CaliforniaEmpowering Stylists to be their own brand

Concept:    “Who  are  You?”  KMS  styles  co-­‐developed  with  stylists  

KMS CaliforniaEmpowering Stylists to be their own brand

KMS  styles  co-­‐developed  with  stylists  

KMS CaliforniaEmpowering Stylists to be their own brand

KMS  Pro  Stylist  Educa0on  Program

What‘s your style? A consultation, recommendation & retailing system that represents the KMS California vision on how to create personalized looks and how the client wants their hair to look when they leave the salon and be-tween visits. This seminar and class map are designed to build stylist’s skills to deliver superb client satis-faction through a step-by-step consultation process that goes beyond the in-salon experience.

outstanding, personalized consultations beyond the normal.

home care, tools and how to incorporate the consultation into the entire service.

to help clients recreate looks at home.

Tuition: Isinveru ptiurEarly booking bonus: IsinveruiurSeating: Isinveru ptiurWhat to bring: Isinveru ptiur, od et faceaqui ape-rum re nitint moditate venimol entore dolut lant, quaerio este quas ent, ut harita qui dita comnimi, of-ficie ndesto oditiusamet quas sum sitiore, santintore noscscs

Provided: Isinveru ptiur, od et faceaqui aperum re nitint moditate venimol entore dolut lant, quaerio

PERSONALIZED STYLE RECOMMENDATION

15462_KMS_EduPortfolio12.indd 6-7 21.07.11 14:54

KMS CaliforniaEmpowering Stylists to be their own brand

Digital  Placorms  to  empower  individual  style  expression

KMS CaliforniaEmpowering Stylists to be their own brandmySalon  APP  as  insalon  consulta0on  tool,  allowing  stylists  to  manage  their  clients  in  an  innova0ve  way

KMS CaliforniaEmpowering Stylists to be their own brandmySalon  APP  as  insalon  consulta0on  tool,  allowing  stylists  to  manage  their  clients  in  an  innova0ve  way

Remember client‘s styles

KMS CaliforniaEmpowering Stylists to be their own brandmySalon  APP  as  insalon  consulta0on  tool,  allowing  stylists  to  manage  their  clients  in  an  innova0ve  way

Manage Appointments

KMS CaliforniaEmpowering Stylists to be their own brandmySalon  APP  as  insalon  consulta0on  tool,  allowing  stylists  to  manage  their  clients  in  an  innova0ve  way

Customer database

KMS CaliforniaEmpowering Stylists to be their own brandmySalon  APP  as  insalon  consulta0on  tool,  allowing  stylists  to  manage  their  clients  in  an  innova0ve  way

Order products directly

Volkswagen ChinaCreating the People’s Car with the People

ChallengeHow  can  Volkswagen  be  “the  people’s  car”  in  a  highly  compe00ve  market  that  demands  foreign  brands  to  localize  their  products?

Volkswagen ChinaCreating the People’s Car with the People

Solu0onCreate  the  people’s  car,  with  the  people!

Volkswagen ChinaCreating the People’s Car with the PeopleResults

•Received  121,000  ideas  for  future  automobiles  from  more  than  300,00  registra<ons.•Volkswagen  used  a  young  girl’s  idea  to  develop  the  floa<ng  car,  and  produced  a  video  to  demonstrate  “how  it  could  work”  with  electromagne<c  roads.  The  video  went  viral  with  more  than  13M  views.•The  campaign  generated  aGracted  11.6  million  unique  visitors,  with  3.1  million  fans  on  social  networks  (415,845  followers  on  Weibo)•The  brand  increased  unaided,  top-­‐of-­‐mind  awareness  by  8.3%

Volkswagen ChinaCreating the People’s Car with the People

CRM Yesterday vs TodayYesterday Today

CRM Tomorrow?

Tomorrow’s Technologies

•Integrated  func0onality  •Build  informa0on  connectors  between  disparate  placorms  to  filter,  process  and  analyze  data  to  produce  tangible  and  ac0onable  intelligence

•Populate  social  customer  profiles•End-­‐to-­‐end  cloud  services,  and  connect  with  customers  in  any  channels  they  desire

•Customized  web  content,  targeted  marke0ng

Technologies may change, but what customers want remain the same

• Know  who  I  am• Communicate  Relevantly• Listen  and  Respond  to  Me• Be  Consistent• Surprise  and  Delight  Me  • Involve  Me• Value  Me• Empower  Me

“The  purpose  of  a  business  is  to  create  and  keep  a  customer...

to  do  that,  you  have  to  do  those  things  that  will  make  people  do  business  with  you.  

All  other  truths  on  this  subject  are  merely  derivaOve.”

-­‐  Peter  Drucker  

CRM Yesterday, Today & Tomorrow

Angeli Beltran | Managing Director | Dentsu Mobius |@angelibeltran