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Presentasjon Katy Raines, Indigo Ltd, CRM-seminar i Kristiansand 13.1.12
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Katy Raines
CRM – Why
bother?
Christiansand, January 2012
About me
Music Graduate, Cambridge University
Spent 15 years running Marketing departments in UK theatres
Consultant since 2004, specialising in Customer Loyalty and data-driven marketing
Clients include Royal Shakespeare Company, Opera North, The Lowry, Symphony Hall, Birmingham, Ulster Orchestra
CRM – Why bother?
A reminder of CRM
The changing marketing environment
What CRM Can deliver
Building a picture of the customer
A Good CRM system
A reminder of CRM
1. Not all customers are equally valuable
2. It costs 5 times more to acquire a
customer than keep an existing one
3. Customers have different needs, which
need to be reflected in your marketing
communications with them
Frequency
1. All customers are not equally valuable
2%
4%
26%
68%
8+ times
per year
5-7 times
per year
2-4 times
per year
Once
per year
60%
25%
15%
% of bookers in 1 year
% o
f inco
me
in 1
year
Retention
2. Keeping customers costs 5x less
Lost / lapsed customers
Retained customers
New audiences
Segmentation
3. Customers have different needs
2%
4%
26%
68%
These people have
different needs
From these people
% of bookers by frequency band
Ulster Orchestra,
Belfast
‘Old’ model
Were sending all their customer the same thing – a
large 32-page season brochure, costing £1 per issue
Return on investment 1.6:1
‘New model’
Sent different customers different things
For 90% of the customers this meant sending them
LESS information, but more RELEVANT
Return on Investment increased to 21:1
The changing marketing
environmentDigital explosion = Consumers
bombarded with content
Growth of tools and sites to ‘aggregate’ and make sense of content for consumers to digest
Expectation of content matched to need and preference
NB. This is no longer a ‘nice to have’ –it’s essential!
email content - relevant
Tailored to match
my previous
purchases
General
message
to
everyone
Web content - relevant
And what about Social Media?
CRM / Direct
Marketing
Organisation Customer
Organisation
Customer
Sends direct
messages
Broadcasts messages
Social Media
‘tunes in’ at
various points
They are different tools for different purposes
The results
Opportunity – to build loyalty and affinity
by reflecting their needs back to them
with relevant (and personalised) content
Threat – customers will ignore your
content as it isn’t relevant, and you will
lose them
What a good CRM programme can
deliver
Increased frequency from existing customers
Keeping more customers year on year
Reduced marketing costs and improved return on investment
Brand affinity and loyalty
Improved customer insight to aid business planning and programme/product development
Building a picture of the customer
The
Customer
Purchasing
behaviour
Frequency
Recency
Types of productResponse to
comms
Purchase
Clicks
Timing
Type
Attitudes and preferences
Stated comms preferences
Stated product preferences
Feedback / comments
Profile
Geography
Demographics –
age, income etc.
Social media behaviour
Re-tweets
Likes
Customised communications
Picture of
the
customer
Product choices
Timing of
comms
Type of comms
Symphony Hall Birmingham
The
Customer
600 events per year
Mostly ‘one night’
shows
2200 seats
over ½ million
audiences each year
Symphony Hall Birmingham –
challenges
The
Customer
Too much ‘choice’ and information for the customer
Wide range of events
Events changing daily – often going on sale at late notice
Customers are annoyed if things sell out before they’ve heard about them
Building a picture of the customer
The
Customer
Purchasing
behaviour
Contact details
gathered /
checked with
each purchaseResponse to
comms
Record response
to direct mail
Record ‘click’
response to email
Attitudes and preferences
Data sign-up process gathers
preferred communication
method
Later emails encourage
customers to tell us product
preferences (eg. classical)
Profile
Geo-demographic
information ‘appended’
to record to show likely
age, income etc.
Different communications
Picture of
the
customer
Classical Music audiences
- Season confirmed 1 year ahead
- Like to see ‘full programme’ to make selections
- Like printed brochures rather than digital
- ‘Classical music’ brochure sent by post 3 times
per year
- Personalised booking form and incentives to
subscribe early
- Email used as a reminder (but sparing)
Different communications
Picture of
the
customer
Rock and Pop audiences
- Events getting confirmed all the time
- Big names can sell out in a day
- They don’t want to miss the chance to book
- Are used to 100% digital communications from
competitors
- Weekly ‘On sale’ announcements, and ‘don’t miss
this month’
- No printed communications at all
Personalised e-
bulletins
Picture of
the
customer
Events ‘match’ customer profile
based on:
- Previous product purchase
- Stated product preferences
- Clicks on previous emails
Other events listed here
MARKETING EFFECTIVENESS
11.00
11.50
12.00
12.50
13.00
13.50
14.00
2008-09 2009-210 2010-11
Marketing ROI (all tix)
£1.15
£1.20
£1.25
£1.30
£1.35
£1.40
2008-09 2009-2010 2010-11
Spend per seat sold (all tix)
What do you need from a CRM
system?
Initial and ongoing data capture linked to purchasing behaviour
Sensible segmentation and data analysis: Frequency/Recency
Value
Product type
Tools
To implement personalised approach
To measure effect
The CRM process
1. Gather data
2. Analyse and segment
3. Implement
- Product proposition
- Communications methods
4. Measure
Testing a
nd
refinin
g
The picture gets more detailed
The
Customer
Purchasing
behaviour
Frequency
Recency
Types of artform /
productResponse to
comms
Purchase
Clicks
Timing
Type
Attitudes and preferences
Stated comms preferences
Stated Artform / product
preferences
Feedback / comments
Profile
Demographics –
age, income etc.
The messages get more effective
Picture of
the
customer
Product choices
Timing of
comms
Type of comms
Good luck!
Katy Raines
Partner, Indigo-Ltd
www.indigo-ltd.com
twitter: @katyraines
Data Capture
Initial data capture – at enquiry or point of purchase
Adding future data to the picture:
purchase behaviour (what, when, how much?)
Stated preferences (product, types of communications)
Response to communications (clicks, likes etc)
Data Capture
The ‘norm’ for ticketed organisations in the UK
Free galleries
Imperial War Museum, London
Cinemas / retail / leisure - no time to take complex information at point of sale
Chapter Arts Centre, Cardiff
House of Fraser department store
Costa Coffee
The data ‘transaction’ – why will
someone give you their data?
In exchange for:
Information about events (eg. arts
organisations) – but they expect it to be
tailored
Loyalty rewards and discounts (eg.
airlines, hotels)
Special treatment (eg. bookshops – VIP
shopping or book signing events)
Analysis and Data mining
First time attenders/ purchasers
Purchasers who have stopped buying
from you (‘Lapsed’ customers)
Behaviour and purchase patterns
Response to communications
Value analysis (lifetime)
Implementation
“Rules’ for who is contacted when (eg. first timers, lapsed, etc) and automation around these if possible
Tools to allow personalisation of content based on:
previous purchase
Stated preferences
Response to communications
Measurement
Simple ways to track effect of
communications
% response rates
Return on investment