marketing @ customer

Marketing @ Customer

Enterprise Marketing Platform

There is only one profit center and that is the customerDr. Peter Drucker

August 4, 2009 © Loyalty Management Services 2

Speaker : Radu Silaghi

Retail Experience (Milestones)

Artima (Chief Purchasing & Marketing Officer; shareholder)

Billa Romania (Purchasing Manager)

Metro Cash & Carry (Senior Category Manager)

Education : MBA in Marketing


Marketing is an investment in customers,

therefore

marketing alone must be a profit maker


Loyalty Platform is designated to

• Companies• Brand Owners or Retailers• Direct use by Marketing Department• Campaigns run by marketer itself• Multi – channel enabled• Easy integratable with existing campaigns• Does not exclude the agency (campaign &

template creation)


Uses

• Know your customer, know what he responds at• Segment customers• Target promotions best suited for each segment• Run multi – channel promotion ( SMS, e-mail,

web, print, telemarketing, chat server )• Follow customers automatically during their

lifetime (thus increase Customer Lifetime Value)• Develop sales in slow moving areas or shops• Run ad-hoc in-store promotions• Support newly launched brands


Uses

• Cross - Sell products with higher margins• Up - Sell suited customers to pricier products• Create a Club for the Brand• Create and sustain Advocacy Groups (Forums,

Frequent Answers, )• Inside the Club, create Special Interest Groups

( ex: wine lovers, baby club, healthy living )• Survey customers on different topics• Reward customer loyalty• Get rapid Feedback on various topics of interest


Advantages

• NO maintenance required

• NO additional investment required

• NO technical person required

• Predictable costs

• Under P&L, costs shown as operations not financial


Personal Data Compliance

• Romanian Law 677/2001

• EU Directive 95/46/EC

• US Department of Commerce Safe Harbor Regulations

• EU L215/7 acceptance of US-Safe Harbor


SecurityAccess :• Secured application access ( SSL )• Firewall and intrusion detection systems• Access from designated computers ( NAT )

Data : • Encrypted personal data

Application : • User can access and view only permitted information• Data cannot be modified by user

Physical security : • 24/7/365 security• Biometric access card• Datacenter location (US & RO in future)


Marketing Facts

• 20% customers make 80% of profits and bottom 30% of customers eat 50% of profit

• 25%-85% profit increase by increasing retention with 5%

• 4%-5% revenue increase and 10% market share increase for loyalty users compared to non-loyalty users AC Nielsen Tracking Survey

• 6x more expensive to acquire new customers than to keep existing ones


Marketing Facts

• 82% of customers whose problems are solved will buy again

• 6x more likely to repurchase totally satisfied customers than satisfied customers

• 65%-85% of customers changing supplier were satisfied with former one

• 4% of complaints are heard by a average business; 96% do not give feedback; 91% of them never return


Marketing Automation

AudienceBenefit : Heavy personalized communication

• Audience can be profiled

• Profile Lists updated instantly

• Customized surveys for Profiles

• Implementation of marketing calendar



CampaignsBenefit : All types of campaigns possible

• Campaigns profiled to consumers

• Campaigns uni-wave / multi-wave

• Campaigns uni-channel / multi-channel (web, e-mail, telefon, SMS, MMS, postal mail)

• Fully automated campaigns



Indicators

Benefit : Visible results

• Campaign Impact Evaluation

• Measurable Return On Investment per campaign


Frequent Topics

• I am a Brand Manager, how can I use this platform ?

• Use it in all the stages to deploy multi-channel campaigns


Frequent Topics

• How can we start without a customer database ?

• Built you database like this :√ give a free gift √ give free enrollment in a lottery√ stimulate recommendation for

enrollment by using existing campaigns

√ label all products and stimulate enrollment

√ ask feedback, get data√ ask reviews, get data√ ask suggestions, get data√ ask riddles, get data √ organize contests, get data√ ask quiz, get data√ organize games, get data

√ run simultaneous Promotions : Trade and Consumer Promotions


Frequent Topics

• Why should I complicate my existence when sales are OK ?

• Because: When competition hits, you ca only react. Most frequently by cutting prices which costs you a lot of profit without guaranteeing customer loyalty. There is only 1 price leader AND price sensitive customers are not loyal.

• We invest heavily in advertising and trade promotions and it pays off.

• Advertising is a one-way communication that works up to a point. Today situation is not going to remain like this forever. Communication is a 2-way method giving you a better and direct understanding of your consumers. Decide if you want to play as leader or follower. Best-in-class performers are proactive not reactive.


Frequent Topics• It is too complicated for us.

• Loyalty Management Services can do it for you.

• We are in a price-war. What’s the way out ?

• Know your customer, understand what he expects and differentiate yourself. Make sure your differentiation matches their expectation, not what you think about them, or you’ll lose them on the process.

• We already have a loyalty program.

• Perfect. There are programs and programs. Depends what you have, what are the profits generated and what you want to realize further. Customer expectations are evolving. Competition exists also in marketing. There is no such best program ever.


Frequent Topics

• We have a loyalty program where we give discounts and points.

• Giving discounts ( = cutting margins ) is expensive. Giving point son top of discounts is utterly suicidal. Loyalty at it’s core (as mastered by Tesco ) is about knowing your customers and rewarding them for shopping with you, not overspending. Loyalty is a rewarding learning process.

• How do we calculate the cost of program ?

• Depends on what program you have, please contact us for further details.


Frequent Topics

• What are the uses for a brand manufacturer ?

• Loyalty is equally important for brand manufacturers as for retailers. Retailers frequently behave like “gate keepers” blocking many because consumer initiatives brand manufacturers have or because they “squeeze” extra marketing money from each initiative. Such initiative on brand manufactures side are “My Coke Rewards”, “Miller High Life”, so. The mechanics behind these programs are :

― consumers register with the web site― after purchasing goods, consumers register goods based on EAN― the system allocate points based on a pre-defined value in points

of each product― points are used to buy exclusive goods available only for members


Frequent Topics

• What’s the gain in loyalty ? Do you have some figures ?

• See a simple comparison, with neutralized names and industries

Average Basket Romania Central Europe

Members 8,2 € +50% 21,7 € +105%

Non Members 5,5 € 10,5 €

The more customers you have, the more profitable it is. The more members you have, the more profitable it is. The more frequent members shop, the more profitable it is.

More examples available by request


Frequent Topics• What are the uses for a pharmacy ?

• There are some particularities for pharmacies, due to the assortment (prescriptions, OTC, cosmetic, so) and therefore customers. Communication is vital and highly appreciated. Being top of mind, you’ll be his first choice. Follow the customer during his lifecycle evolution. Some avenue you can pursue :

― Develop customer clubs and interest groups within the club― For the prescriptions, after identifying the disease, keep the

customer informed about news in his area of interest. You can even schedule communications with the frequency needed to refresh his medicine stock.

― For the OTC, be more active and go further and Up-sell and Cross-sell. Distribute limited time coupons. You can go as aggressive as the supermarkets are.

― Cosmetic range is a even wider avenue for communication and marketing.

― Take brand manufacturers and suppliers in the program on the promotion side not only by supplying information and content

― Transfer trade marketing initiative into consumer marketing


Frequent Topics

• What are the applications for a pet shop ?

• Pet owners are very attached to their animals. Using this platform, you can make promotions specially suited for the age of animal. System will keep track of age and make only the promotions relevant for that age group. Similarly you can sell related services. And like any other retailer, you can roll segmented promotions.

• Can this be applied for clothes retailing ?

• Yes. Areas like stock liquidation, overstock, first order size, product order per size, use information from this this platform. Know your customer measures, update their evolution and tailor your promotions accordingly. Make customized promotions for you your customer size and they will come to buy.


Frequent Topics

• A baby retailer, can make use of this platform ?

• Specially for babies with high growth rate, follow them automatically during these stages. Upgrade them automatically from one age group to the next one. Parents are very carefully about kids, promote what they need. Keep customer informed with specialized literature (provided by producers) and their parents loyalty.

• What’s in it for a eye glasses retailer ?

• Know what lens power has each customer. Make renewal promotions at the right time. Use information for contact lens user. Reduce financial investment in stocks and optimize promotions. Track lens power evolution. Sell additional medical services.


Frequent Topics

•How a segmentation would look like ?

•Below is an example for a grocery chain.


Conclusions

Loyalty for is about adding value for customers, shareholders and company not justifying costs

• Marketer : constant contact, direct 2-ways communication, immediate impact evaluation

• Consumer : timely answered inquiries, relevant communication,

satisfied customers

BETTER KNOWLEDGE OF MY CONSUMERSSECURES THE BUSINESS


Thank You for Interest

I’ll Value Your Feedback and Questions

Radu Silaghi0743 15 81 94

[email protected]

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mailto:[email protected]?subject=Prezentarea Marketing @ Customer din Slideshare.net

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Segments


Uni – Wave Campaign


Multi - Wave Campaign


Surveys


Enrollment – Recommendation

marketing @ customer

Business

suited customers

new customers

profit increase

marketing departmentcampaigns

revenue increase

baby club

profit center

market share increase