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eCRM Strategy W

2015_02_25 Tap King eCRM Strategy

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Page 1: 2015_02_25 Tap King eCRM Strategy

eCRM Strategy

W

Page 2: 2015_02_25 Tap King eCRM Strategy

W

Develop an integrated eCRM program that creates behavioural change and drives frequent, repeat purchase of Tap King refills

by directly engaging and incentivising the Occasional Kings consumer segment.

Purpose of this document

Page 3: 2015_02_25 Tap King eCRM Strategy

W The challenge

We were concerned that Occasional Kings needed a more critical and completely different motivation

to what has been offered before, in order to to kickstart and maintain a Tap King refill behaviour.

So we took stock and revised the offer.

Page 4: 2015_02_25 Tap King eCRM Strategy

W Profile of an Occasional King

Purchase Behaviour: • <3 x TK purchases

• Habitual tension:

• Want to get in and out (32%) but

• Influenced by promotions (44%)

• Willing to pay for quality (products, services & experiences)

• Early adopters / influencers

Drinking behaviour: • Carefree me time

• Mostly at their home with partner

• While consuming media (40%)

• Seeking ‘escape’ and to treat themselves

Top Royal Pursuits: 1. Movies (39% of Kings)

2. Entertaining (37% of Kings)

3. Tech / Gadgets (32% of Kings)

Demographics: • Even mix of males and females

• 28 - 39 years old

• High income earners

• Urban dwellers

Liquid of choice

Page 5: 2015_02_25 Tap King eCRM Strategy

W Supporting data

Sales vs Loyalty by Brand

0%

7.5%

15%

22.5%

30%

TN TED HSD XXXX JBP 150 L. Chancer

% of TK Sales % of Loyal Kings (3 + Freq)

Loyal Kings

Occasional Kings

Sales Behavioural

Page 6: 2015_02_25 Tap King eCRM Strategy

W Content

Value Proposition

Program Development

Buyer Journey

Communications Plan

Content and Contact Plan

Next Steps

Page 7: 2015_02_25 Tap King eCRM Strategy

W Value proposition

Be the King of your Domain with entertainment on tap.

Watch whatever you want, whenever you want all while enjoying the best draught beer in the comfort of your castle.

Page 8: 2015_02_25 Tap King eCRM Strategy

W Fresh approach: Entertainment on Tap

Our eCRM strategy is anchored by a major entertainment service launch, keenly anticipated by our target audience.

We will leverage the popularity of Netflix in Australia and create a two tiered loyalty scheme that will encourage trial, prompt refill

sales and reward consistent purchasers.

Ultimately, our eCRM program will provide an in-home beer experience like no other and allow us to develop a strong,

ongoing consumer loyalty program.

Page 9: 2015_02_25 Tap King eCRM Strategy

Launching March 31st

W

Page 10: 2015_02_25 Tap King eCRM Strategy

W Picture it…

+ =

1 MONTH

SUBSCRIPTION

Page 11: 2015_02_25 Tap King eCRM Strategy

Media streaming: Business case

Tap King is a premium priced, high quality offering that relies on loyalty and referrals.

A recent study by Spotify shows the many loyalty and price elasticity attributes that exist in people who stream media.

Capturing consumers with these attributes helps to deliver brand advocacy and protects against switching.

W

Page 12: 2015_02_25 Tap King eCRM Strategy

W Media streaming: Consumer case

Media streaming (in particular VSOD) services have the highest intrinsic value of any other offer currently available, as far as our

Occasional Kings are concerned.

Australian movie and technology enthusiasts have demonstrated that they value these services well above the financial cost of

acquiring them by:

• Australians being notoriously the highest consumers of pirated entertainment content in the world

• 340,000 Australians currently hacking TV streaming services overseas - and paying for it - in order to view their content

Page 13: 2015_02_25 Tap King eCRM Strategy

W Media streaming and the Occasional King

Purchase Behaviour: • <3 x TK purchases

• Habitual tension:

• Want to get in and out (32%) but

• Influenced by promotions (44%)

• Willing to pay for quality (products, services & experiences)

• Early adopters / influencers

Drinking behaviour: • Carefree me time

• Mostly at their home with partner

• While consuming media (40%)

• Seeking ‘escape’ and to treat themselves

Top Royal Pursuits: 1. Movies (39% of Kings)

2. Entertaining (37% of Kings)

3. Tech / Gadgets (32% of Kings)

Demographics: • Even mix of males and females

• 28 - 39 years old

• High income earners

• Urban dwellers

Liquid of choice

Page 14: 2015_02_25 Tap King eCRM Strategy

W Why Netflix? - Consumer case

*Source: Google.com/trends comparative search, Australia 24th February 2015 *Source: Sandvine video downstream sources, USA, 2013

Page 15: 2015_02_25 Tap King eCRM Strategy

W Why Netflix? - Business case

Brand fit

Monthly mechanic

Growth / interest

Cost / value adds

O

TBC

No hardware barrier

TBC TBC TBC TBC TBC

O

OOO

Page 16: 2015_02_25 Tap King eCRM Strategy

W Content

Value Proposition

Program Development

Buyer Journey

Communications Plan

Content and Contact Plan

Next Steps

Page 17: 2015_02_25 Tap King eCRM Strategy

W Program mechanic

SILVER: Aquire (Mandatory)

GOLD: Retain (Additional)

Additional 2 x refills

*We are currently developing a partnership to secure pricing subsidies from Netflix in exchange for our co-investment in their awareness and trial targets and Samsung in exchange for new TV launch promotion.

Trigger

Reward

Surprise & Delight

33,500 unitsReward cap

Monthly, basic . subscription ($9.99)

entertainment pack: The more codes, the more chance

4 x Tap King kingies

N/A

Monthly, basic . subscription ($9.99)

Page 18: 2015_02_25 Tap King eCRM Strategy

W Phasing & Sales analysis

*Worst case scenario - not including partnership subsidies from Netflix.

20% Loyalty 80% Loyalty50% Loyalty

Each option uses a total of 33,500 Netflix basic subscriptions and costs < $340,000*

Total ARs: 16,750

Loyal ARs: 3,350

Total beer sold (L): 321,600

Total ARs: 9,570

Loyal ARs: 4,785

Total beer sold (L): 275,616

Total ARs: 6,700

Loyal ARs: 5,360

Total beer sold (L): 257,280

Page 19: 2015_02_25 Tap King eCRM Strategy

W

4500

9000

13500

18000

MAY JUN JUL AUG SEP OCT

214,400

235,840

257,280

278,720

300,160

321,600

20% repeat ongoing engagement

= GOLD: Retain (Additional)

= SILVER: Acquire (Mandatory)

= Cumulative Beer volume (L)

Page 20: 2015_02_25 Tap King eCRM Strategy

W 20% repeat ongoing engagement

Page 21: 2015_02_25 Tap King eCRM Strategy

W

4500

9000

13500

18000

MAY JUN JUL AUG SEP OCT

122,496

153,120

183,744

214,368

244,992

275,616

50% repeat ongoing engagement

= GOLD: Retain (Additional)

= SILVER: Acquire (Mandatory)

= Cumulative Beer volume (L)

Page 22: 2015_02_25 Tap King eCRM Strategy

W 50% repeat ongoing engagement

Page 23: 2015_02_25 Tap King eCRM Strategy

W

4500

9000

13500

18000

MAY JUN JUL AUG SEP OCT

85,760

120,064

154,368

188,672

222,976

257,280

50% repeat ongoing engagement

= GOLD: Retain (Additional)

= SILVER: Acquire (Mandatory)

= Cumulative Beer volume (L)

Page 24: 2015_02_25 Tap King eCRM Strategy

W 50% repeat ongoing engagement

Page 25: 2015_02_25 Tap King eCRM Strategy

W Content

Value Proposition

Program Development

Buyer Journey

Communications Plan

Content and Contact Plan

Next Steps

Page 26: 2015_02_25 Tap King eCRM Strategy

W

Welcome to Entertainment on Tap

Welcome back to Entertainment on Tap

Email

TK code 1

TK Code 2

TK Code 3

TK Code 3

Email

TK code 1

TK Code 2

Buyer journey

Page 27: 2015_02_25 Tap King eCRM Strategy

W Preferred platform

Dedicated App Responsive Websitevs.

*Mobile first design, expanded to web.

Page 28: 2015_02_25 Tap King eCRM Strategy

W Content

Value Proposition

Program Development

Buyer Journey

Communications Plan

Content and Contact Plan

Next Steps

Page 29: 2015_02_25 Tap King eCRM Strategy

W Two phased communications

Phase One Phase Two

Test & Learn

Contained

33,500 Redemptions

May - Oct

Refine & Expand

Open

TBC

Oct +

Objective

Acquisition

Target

Timing

Page 30: 2015_02_25 Tap King eCRM Strategy

W Test & learn acquisition targets

95,000Exclusive outreach

6,700 - 16,750One off Silver participation

3,350 - 5,360

7-17%

20-80%

Ongoing Gold participation

SILVER: Aquire (Mandatory)

GOLD: Retain (Additional)

Page 31: 2015_02_25 Tap King eCRM Strategy

W …if we need it

250,000 +

Call in brand and partner support

Page 32: 2015_02_25 Tap King eCRM Strategy

W Test & learn production & comms timeline

Mar

Ad

dit

iona

l C

omm

s O

pti

ons

Pla

nned

C

omm

s

Apr May Jun Jul Aug Sep Oct Nov

Inte

rnal

/

Pro

duc

tion

Production v1.0 Production v2.0

Page 33: 2015_02_25 Tap King eCRM Strategy

W Entertainment on tap evolution

Phase 1 - test & learn: • 6 month program • 33,500 x Netflix codes • 1 x major Samsung prize pack • Digital communication only

April 2015

FY16

Phase 2 - expand & sustain: • Ongoing program • Additional Netflix functionality:

• Personalised profile area • “Other kings viewed” feature • Exclusive events • Direct debit trial

• Additional entertainment services (TBC): • Spotify, etc.

• Additional major prizes • Through the line communications

Page 34: 2015_02_25 Tap King eCRM Strategy

W Content

Value Proposition

Program Development

Buyer Journey

Communications Plan

Content and Contact Plan

Next Steps

Page 35: 2015_02_25 Tap King eCRM Strategy

W Role of each channel

Role Become the hub of the loyalty

program by providing information and access to

rewards

Immediate Steps Review UX and create seamless

login Link automated eDM’s to

registration and redemption

Role Inform and prompt action Provide reassurance and

guidance Deliver updates

Immediate Steps Create promotional introduction

of offer eDM Create eDM templates for each

King type Create informative Netflix eDM

Create drop off templates

Role Create interest

Drive traffic to website Conversion channel (subscribers)

Immediate Steps Create cut through ‘campaign

materials’ Push people through to new

content on website Communicate loyalty program

Develop referral messaging

Page 36: 2015_02_25 Tap King eCRM Strategy

W

Entertainment on Tap .

Example content

Your Netflix Subscription will end in 10 days

10 Trending shows on Netflix

Which Netflix blockbuster are you watching more of with your Entertainment on Tap

*Image and video content licensing are in scope of the partnership discussions with Netflix

vs.

Pick up more delicious draught beer to keep your

entertainment on tap

Page 37: 2015_02_25 Tap King eCRM Strategy

W Content

Value Proposition

Program Development

Buyer Journey

Communications Plan

Content and Contact Plan

Next Steps

Page 38: 2015_02_25 Tap King eCRM Strategy

W Next Steps & Timeline

Who What When

Lion Sign off on project scope 2nd March

White Provide confirmed SoW 5th March

Lion Approve SoW 10th March

Lion Confirm Samsung partnership & terms 13th March

White Confirm Netflix partnership & terms 13th March

White Begin production 16th March

White Tease program in March eDM 28th March

White / Lion Program launch 30th April - 14th May

White / Lion Initial program evaluation 1st June

*Timelines are based on discussed scope of works and assumptions and are subject to change is the scope does.

Page 39: 2015_02_25 Tap King eCRM Strategy

W

The end, or just the beginning..