customer loyalty in cross-channel marketing programs - dma 2013 chicago
DESCRIPTION
This session presented by Selligent will enable attendees to get the right insight on relationship marketing best practices and the importance of engagement and loyalty programs. Actual examples show how cross-channel marketing programs can help increasing the engagement, trust, loyalty and value of customers. Lars Crama, Business Development Director at 2organize, explains the multichannel approach and other key success factors of the loyalty program launched by A.S.Watson, the world's largest health, beauty & lifestyle retailer, for its brand Kruidvat in the Benelux. While more than ever marketers are eager to engage their customers, few Loyalty cards survive. So how has A.S.Watson been able to activate this card active in more than 25% of all households in the Netherlands? Showing great conversions and results? Just attend this session and you will know!TRANSCRIPT
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Customer Loyalty in Cross-Channel Marketing Programs
! Lars Crama Business Development Director, 2organize, Oxyma Group
Email [email protected] > Twitter @larscrama
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WINNING CUSTOMERS HEARTS AND MINDS
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QUESTION:
“How many plas=c cards are in your wallet?”
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The average person carries around 17 plas=c cards in their wallets or purses.
(including credit and debit cards, store cards, library memberships, driving licenses, national insurance, organ donor and loyalty cards. Source: http://newslite.tv/2012/09/17/we-all-have-bulging-wallets-bu.html)
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25% households
High Customer
Engagement
High Revenue
Contribu=on
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1. ABOUT KRUIDVAT 2. THE CROSS CHANNEL LOYALTY PROGRAM 3. MARKETING PERFORMANCE IMPROVEMENT 4. KEY TAKE-‐AWAYS
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1. ABOUT KRUIDVAT 2. THE CROSS CHANNEL LOYALTY PROGRAM 3. MARKETING PERFORMANCE IMPROVEMENT 4. KEY TAKE-‐AWAYS
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PART OF…
! A.S. Watson -‐ The world's largest health, beauty & lifestyle retailer
• Over 10,000 stores opera;ng 20 retail brands in 33 markets worldwide
! Europe’s largest luxury perfumeries & cosme=cs retailer
! Over 1,600 stores in 16 markets, opera=ng under mul=ple retail brands
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KRUIDVAT BENELUX
! Stores -‐ 800 NL /180 BEL
! 12.000 Employees
! Media expenditure • Over 70 Million Euro
! Loyalty Program • Start 2011 in The Netherlands
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THE CHALLENGE
INCREASE CUSTOMER LOYALTY
LEARN FROM CUSTOMER INTERACTIONS
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1. ABOUT KRUIDVAT 2. THE CROSS CHANNEL LOYALTY PROGRAM 3. MARKETING PERFORMANCE IMPROVEMENT 4. KEY TAKE-‐AWAYS
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KRUIDVAT LOYALTY PROGRAM
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TARGET GROUP
90% Women Housewives
Above 20 Years
Divided in 4 Personas (Lifestyles)
CUSTOMER SEGMENTATION
Mariska Young Mother
Saskia Starter
Claire Older Mother
Corrie Grandmother
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PRODUCT
CATEGORIES
Divided in 4 Categories
PRODUCT CATEGORIES
Beauty Health
Baby Men
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CROSS-‐CHANNEL SEGMENTATION
Generic Offers
Loyalty Offers
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LOYALTY OFFERS
Loyalty Segments
+200 sub-‐segments
Loyalty Offers
Generated Daily
Product Push by procurement and/or supplier(s)
Customer Behaviour Clicks -‐ Buying
3
4
5
7
6
2
1
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Campaign Layer
CROSS-‐CHANNEL CAPABILITIES
eStore Website
Stores
Mobile App
eMail Welcome email
Data Layer
Loyalty Program -‐ Customer Life Cycle Management -‐ Event Driven Marke;ng
Sales
Sales
Interac;ons Transac;ons Segmenta;ons
Registra;ons
Registra;ons Ac;va;ons
Ac;va;ons Offers Daily/weekly
AcKvaKon -‐ 24hrs Valid -‐ 1 week
Offers Daily/weekly
Offers Daily/weekly
Loyalty Card Customers
Birthday email
Baby Mamma email
1
4
3
2
6
5
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CROSS-‐CHANNEL CAPABILITIES
Campaign Layer
eStore Website
Stores
Mobile App
eMail Welcome email
Data Layer
Loyalty Program -‐ Customer Life Cycle Management -‐ Event Driven Marke;ng
Sales
Sales
Interac;ons Transac;ons Segmenta;ons
Registra;ons
Registra;ons Ac;va;ons
Ac;va;ons Offers Daily/weekly
AcKvaKon -‐ 24hrs Valid -‐ 1 week
Offers Daily/weekly
Offers Daily/weekly
Loyalty Card Customers
Birthday email
Baby Mamma email
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ACKNOWLEDGEMENTS
Jury Award Market
ers Voice Award
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25% € 1.000.000 ac;va;ons/mth
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1. ABOUT KRUIDVAT 2. THE CROSS CHANNEL LOYALTY PROGRAM 3. MARKETING PERFORMANCE IMPROVEMENT 4. KEY TAKE-‐AWAYS
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QUESTION:
“Who performs tests on their marke=ng campaigns?”
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QUESTION:
“Who performs tests on ALL their marke=ng campaigns?”
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HOW DO WE MAINTAIN / IMPROVE RESULTS?
HOW DO WE STAY RELEVANT?
HOW DO WE PLAN IMPROVEMENTS OVER TIME?
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HOW DO WE MAINTAIN / IMPROVE RESULTS?
HOW DO WE STAY RELEVANT?
HOW DO WE PLAN IMPROVEMENTS OVER TIME?
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MARKETING PERFORMANCE IMPROVEMENT CYCLE
Customer VALUE
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MARKETING PERFORMANCE IMPROVEMENT CYCLE
Customer VALUE
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MARKETING PERFORMANCE IMPROVEMENT CYCLE
1. Set Goals
2. Set KPI’s
3. Plan
4. Prepare
Customer VALUE
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MARKETING PERFORMANCE IMPROVEMENT CYCLE
1. Set Goals
2. Set KPI’s
3. Plan
4. Prepare
5. Contact
6. Follow up 7. Monitor
8. Op;mize
Customer VALUE
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MARKETING PERFORMANCE IMPROVEMENT CYCLE
1. Set Goals
2. Set KPI’s
3. Plan
4. Prepare
5. Contact
6. Follow up 7. Monitor
8. Op;mize
9. Report
10. Analyze
11. Discuss
12. Improve
Customer VALUE
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MARKETING PERFORMANCE IMPROVEMENT CYCLE
1. Set Goals
2. Set KPI’s
3. Plan
4. Prepare
5. Contact
6. Follow up 7. Monitor
8. Op;mize
9. Report
10. Analyze
11. Discuss
12. Improve
Customer VALUE
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HOW DO WE MAINTAIN / IMPROVE RESULTS?
HOW DO WE STAY RELEVANT?
HOW DO WE PLAN IMPROVEMENTS OVER TIME?
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ENRICHING THE CUSTOMER PROFILE -‐ SCORECARD
Explicit Profile
Implicit Profile
Response Profile
Session Profile
Journey Profile
Customer Metadata
☺ TRANSACTIES ONLINE, OFFLINE + Favoriete recepten + Gebruik van appie / pickup / …. + Dichtstbijzijnde vestiging
☺ E-MAIL CONTACT HISTORIE + Campagne timing + Contactfrequentie + Omnichannel contact historie
+ Afhaakmomenten + Microconversies
+ Customer Journey milestones
☺ STATUS: actief, inactief ☺ SEGMENT: offline ,online,
hybride ☺ TYPE KLANT: B2B, B2C
J FACTS: best, good, occasional + Airmiles
+ Product affiniteit + Customer Referral Value
Now
Later
Future
• Explicit customer profile • Customer maintained profile: name, address, email, seengs,
favourites, configura;ons, preferences, product ra;ngs, reviews, Q&A, UGC, Social Media Content
• Implicit customer profile • Supplier maintained behavioural profile: online transac;ons,
offline transac;ons, product use, service use, interac;ons, socio-‐demographic data, psychographic data
• Response-‐profile • S;mulus-‐reponse-‐data related to func;onali;es and campaigns.
Include contact history, interac;on pressure, campaign response, s;mulus-‐sensi;vity
• Session-‐profile • Real-‐;me behavioural data: referring site, loca;on, campaign
exposure, use of site func;onali;es, customer intent
• Customer journey profile • Longitudinal cross channel behavioural data: mul; stage
decision process iden;fica;on, microconversions, engagement
• Customer meta data • Analy;cs generated customer data: recency/frequency/value
profile, LTV-‐profile, segmenta;on, engagement scoring, aetudinal scoring, sen;ment scoring
1
2
3
4
5
Creative Commons License - Customer Profiling Scorecard by 2organize.com is licensed under a Creative Commons Attribution NonCommercial 3.0 Unported License. Feel free to use it, we welcome all feedback.
(example Scorecard, NOT Kruidvat)
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ENRICHING THE CUSTOMER PROFILE ☺ TRANSACTIES ONLINE, OFFLINE + Favoriete recepten + Gebruik van appie / pickup / …. + Dichtstbijzijnde vestiging
☺ E-MAIL CONTACT HISTORIE + Campagne timing + Contactfrequentie + Omnichannel contact historie
+ Afhaakmomenten + Microconversies
+ Customer Journey milestones
☺ STATUS: actief, inactief ☺ SEGMENT: offline ,online,
hybride ☺ TYPE KLANT: B2B, B2C
J FACTS: best, good, occasional + Airmiles
+ Product affiniteit + Customer Referral Value
(example Scorecard, NOT Kruidvat)
• Explicit customer profile • Customer maintained profile: name, address, email, seengs, favourites, configura;ons, preferences, product
ra;ngs, reviews, Q&A, UGC, Social Media Content
• Implicit customer profile • Supplier maintained behavioural profile: online transac;ons, offline transac;ons, product use, service use,
interac;ons, socio-‐demographic data, psychographic data
• Response-‐profile • S;mulus-‐reponse-‐data related to func;onali;es and campaigns. Include contact history, interac;on pressure,
campaign response, s;mulus-‐sensi;vity
• Session-‐profile • Real-‐;me behavioural data: referring site, loca;on, campaign exposure, use of site func;onali;es, customer intent
• Customer journey profile • Longitudinal cross channel behavioural data: mul; stage decision process iden;fica;on, microconversions,
engagement
• Customer meta data • Analy;cs generated customer data: recency/frequency/value profile, LTV-‐profile, segmenta;on, engagement
scoring, aetudinal scoring, sen;ment scoring
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HOW DO WE MAINTAIN / IMPROVE RESULTS?
HOW DO WE STAY RELEVANT?
HOW DO WE PLAN IMPROVEMENTS OVER TIME?
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BUILDING THE BIGGER PICTURE – ONLINE CRM STRATEGY ROADMAP
2012 2013 2014 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Vision & Strategy Basics Quick Wins Customer Value Life Time Value Customer Journey
Customer Contact Strategy
Program Prospect Welcome
Order Follow Up Churn / Reten;on
EDM: abandoned cart EDM: customer journey Win back
EDM: behavioral events
Campaigns Bulk communica;on Simple segmenta;on
Segmenta;on Mul; channel Personalized Real ;me Interac;ve
Insights
Reports Hi-‐prio KPI’s All KPI’s Dashboards Balanced Scorecard
Analysis RFM Basic Segmenta;on Advanced Segmenta;on
LTV Behavioral segmenta;on
Value drivers Loyalty drivers
Share of Wallet Life style segmenta;on Engagement scoring
ROMI analysis
Marke=ng Performance Improvement
Monitor basic KPI’s Set up test-‐ and control groups
Simple A/B tes;ng
Advanced A/B tes;ng Mul;variate tes;ng campaigns
Advanced A/B tes;ng programs
Mul;variate tes;ng programs ROMI op;miza;on
Customer Data Integra=on Registra;ons Transac;ons
Customer Profiles Contact history
Demandware Survey data
Campaign feedback data Integrate business units
Web data Social media data Compe;tor data
External environment data
(example Roadmap, NOT Kruidvat)
“Small steps… with a vision!”
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1. ABOUT KRUIDVAT 2. THE CROSS CHANNEL LOYALTY PROGRAM 3. MARKETING PERFORMANCE IMPROVEMENT 4. KEY TAKE-‐AWAYS
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LEARNINGS
1. Find out what drives value for your customers to determine your programs success criteria
2. Be tac=cal in combining transac=onal and behaviourial data to allow highly relevant and personalized communica=on
3. Incorporate con=nuous improvement cycles
4. Design a roadmap that combines vision with quick results allowing you to enrich your customer profile over =me
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YOUR CHALLENGE?
Good luck! Good luck winning your customers’ hearts and minds
Email: [email protected] Phone: +31-‐6-‐51506820 Twimer: @larscrama
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