Customer Relationship Management Club France

1 Solution INBOX 14/10/09

Customer Relationship Management

Unlock the sleeping potentials


Roadmap

Inbox

Evolution in the context,

One to One & CRM

Experience in retail

And tomorrow,…


Introduction Founded in 2001 in Paris, opened aMoscow office in 2008

40 collaborators, consultants, statisticians& web developers

From analytical CRM to operational CRM :from web & data mining to developmentof « bespoke » CRM solutions

In-depth multi-sectorial knowledgeCustomer Relationship universe

« Inbox is a consulting firm specialized in customers marketing : analysis of behaviors,

design of relational action plans, reset of loyalty program, … from the analysis of

customers' data and their relationship with the company, we build and develop tools to get

a better knowledge and understanding of their habits and then do influence their

relationship with the Company »

http://www.inbox.fr/ru/


What we do ?

Data management : to manage a 360°customer vision

Knowledge : to understand the customer behavior

Animation : to influence the customer behavior

Relational Marketing : to interact with each customer

Optimization : to maximize the Return on Investment

Activities steering : to deliver the relevant marketing information

Consulting : to bring relevant & operational recommendations

Training : to develop & increase your know-how


Evolutions in the context,…


A new context arose,… so new?

Private consumption has been one of themain pillars of Russian GDP growth overthe last 10 years.

And should continue to be, even at lower path,…

Household expenditures at constant prices

BR

IC C

ou

ntr

ies

-%

of

gro

wth


To a certain extent, yes… as,

A progressive saturation of the consumers’ needs

Improvement in the offer

Catch-up of the economy (globalization)

A Russian consumer more demanding

Higher penetration of foreign goods, services

Higher exposure to foreign markets

Over the period 2000 – 2010:

Issuance of “discount card”:

Discount first & last

BUT:

Value destructive

Absence of differentiation

• 55% of the CRM initiatives have missed

their targets(Gartner Group – 2009)

• 50% of multi-programs penetration in key urban centers

• 70% of purchase decision making process remains at the point of sales

(Inter-Act System – 2008)

0.2%

20.2%

47.7%

31.8%

Ни одной

От 1 до2

От 3 до 5

Более чем 5

Quantity of cards


One to One & CRM

A strategic vision


Positioning

Target

SWOT Analysis

Distance

Capacity to federate

Communication

Competition Communication

Budget

HR

DEFINITION

Customer Relationship Management

Action to manage, organize the linksbetween different persons who do

exchange – positively or negatively – under commercial terms goods and/or services

within constraints (budgetary, human resources, commercial pressure) which lead to necessary arbitration and then,

selection and targeting

Training, job description What for? Me too or Strategic pillar?

Where do I stand today?

Alone or in partnership

Which resource allocations for which results?

Perceived image


10 Basic Rules of Success

Clearly define from the beginning realistic targets (industry, sector,…)

Build a Business Case and keep it up-to-date

Obtain and keep the support of the General Management

Execute quickly the project to obtain quick results

Limit and control the perimeter of the CRM project

Be aware of change management

Get involved the users throughout the project

Drive (manage) strictly the project

Get it properly integrated into your environment

Measure the results with agreed and shared K.P.I


Customer DB

Channel Management

Relational Marketing

Customer Service

Sales Productivity

New Product Development

Strategic Marketing

Key advantages of DB set-up

Definition of price policy

Client & Customer Segmentation

Profitability & Efficiency of DM programs

Margin analysis per distribution channel

Customers expectations & preferences

Geo-marketing (competitive analysis) Cost of recruitment or retention of customers

In-depth customers’ knowledge, history of the relations

Market trends

Customer expectation

Sales history per products categories

Demand, volume, profitability simulations

Efficiency of the sales process

Customer satisfaction (follow-up,…)

Individualization of the client knowledge

Individualization of the offers


Beyond the mirror,…


From the Funnel… …to Vortex

High Capital Intensity High Content Intensity

Marketing Sales Marketing

Generate Loyalty

Optimize processes

Increase value

performance

Reduce costs

“Tell me what you want, I’ll tell you what you need”

“Tell me what you need, I’ll tell you what I want”


But different marketing is required,…

• Consumer Insights

• Product/brand benefits

• Monologue

Product

Marketing

• Consumer Behaviors

• Consumer aspiration

• Dialogue

Consumer

Marketing

Today

Tom

orro

w


A different focus, even though…

“Don’t wonder what your country can do for you, but what you can do for your country”

JFK

“Don’t wonder what your customer can do for you, but what you can do for your customer”

JM Lehu

.

… we’re convinced to BE consumer focus. Indeed, there is a constant

need to listen, understand, engage so as to build a dialogue.


A different strategy to agree upon,…

Brand is the end

Brand is the mean

The content of the communication

overcomes the direct universe of the brand

and proposes the consumer to get free access to

a world – the brand is the “pass”

It understates a strategy ofcontent instead of advertisingor advertainment .


Your mission : to build proximity

A great proximity with the customer is A KEY axis of differentiation vs competitors- it aims at creating a link based on mutual capability to:

• Listen, exchange, share

• Thank, punish, reward

• Federate, value, entertain

-5

0

5

10

15

20

25

30

35

40

1 2 3 4 5 6 7

Customer profitability over time

Price premium

Referrals

Reduced operating costs

Repeated order

Cross Sales

Base profit

Acquisition

Average length of customer relationship (years)

Because a LOYALcustomer is WORTH it

PHS CRM - US - 2008


Your target: to collect DATA

Any person in contact with the customer is a :

DATA COLLECTION POINT (DCP)

Consolidation of the data intocommon database

De-duplication of the contacts (recommended)

InterfaceReporting

Retained Customers Program

New Customer Cultivation Program

Any point of contact with the customer is a :

DATA COLLECTION PROMOTER (DCP)


Your weapon: CRM analytics tools

Segmentation

Assessment

Selection

• Behavioral

• Potential/Value

• Scoring

• Expertise

• Target

• Constraint

100,000

70,000

28,000

The best potential of results and R.O.I

Prospects for special offer, new offer,…


Ex : Performance of a score (1/2)

Taux d'achat d'un crédit à la consommation par classe de score

0.12% 0.07%0.31%

0.77% 0.66%1.00%

1.21%

1.78%

3.01%

8.08%

1.70%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

0 1 2 3 4 5 6 7 8 9

Classe de score de souscription

Ta

ux

d'a

ch

at

Rate of subscription of a loan by cluster of score

Cluster of score of subscription

Rat

e o

f su

bsc

rip

tio

n


Ex : Performance of a score (2/2)

Courbe de concentration du score d'appétence de crédit à la consommation

0.0%

47.5%

65.2%

100.0%99.2%98.8%96.9%

92.4%88.5%

82.7%

75.6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

% cumulé de clients

% c

um

ulé

d'a

ch

ete

urs

Concentration curb of appeal score to consumption loan

% c

um

ula

tive

bu

yers

% cumulative client base


Experience in retail

Men Fashion Retail chain


Context & targets

Context:• Ready-to-wear chain, operating through 140 outlets is looking at developing its

profitability relying on a strategy based upon relational marketing

• An existing loyalty program gathering up to 300 000 cardholders more or lessactive

Targets:

• The chain wish to: Develop the sales

Invest while controlling discount

Improve the loyalty of the customers

• Using: Performing loyalty program

Customer knowledge

Pro-active multi-channel communication


Project milestones

Audit of the customer behaviour

Identification of performance levers

Creation of a new loyalty program

• Economic analysis & impact of the different proposed scenario

• Choice of the program

• Implementation

• Launch

Set-up of a marketing database

Implementation of the reporting tools

Design of the actions plan

Input of scores assessing return

Input of the tool of return simulation

Implementation of the e-CRM management program

Ad’hoc surveys through online questionaires to assess their expectations and satisfactions


To know & to act

Client

Segmentationto know

Relational Strategyto drive the commercial relation

Churn (score)to prevent from possible departure

Sensitivity to campaignsAppeal & risk

Sensitivity to private sales

Price Elasticity

Penetration

FashionAppeal

Product renewalAppeal

PrescriptionAppeal

Email / InternetAppeal


The choice of proximity

Accompany the customer in itsrelation with the chain with the aimto:• Increase the penetration of chain

• Assist its loyalty pattern in the courseof the time

• Monitor budget constraints (ROI,discounts)

Through:• Campaigns with coupons optimizing

the usage of discount and R.O.I

• Development of qualitative relationbased on advices, recommendationswith respect to its profile andpreferences (without discount)

Using Emailing, S.M.S alerts – internet site– and occasionally mailing

For example, the relational actions planwas covering the following steps:

Newsletter, Special offers constantlyindividualized

• Alerts

• Birthday celebration

• Private shopper (by appointment)

• Private Web Space – appearing as the summary of the customer’s relations with the chain –

History of purchases

Collection of points (if any)

Recommendations upon next purchases

Invitation to events or collection shows

Pre-set list of items to be checked in shop


Customer web private space


A relation with the product

Regular information and special offers:• Best of : every month (without offer)

• Products renewal list in accordance with date of last purchase – focus on product – limited discount on specific items: Shirts Suits Tee shirt (before holidays)

• Cross selling (daily offer + ticket) Offers with discount on complementary

offers to last purchases Information without discount on

complementary products to last purchases

• Special offers on forecasted overstock => does help the management of possible

overstock situation by issuing special offers at lower discount than standard SO


Online survey through questionaire


After a year, the activation brought…

Rather low increase in the average basket (+3,3%) but a more significant one in average turnover (+ 16,2%) as the customer visited the chain more ofter

Overall turnover of loyal customer grew by 43%


Make the C.R profitable

A MUST

Before, to develop the loyalty meant:• Heavy investments without necessarily R.O.I measurement

• Choice in IT solutions without prior definition of the strategy

Nowadays, one signe will : MAKE PROFITABLE, meaning:• To develop the turnover and reduce the churn

• To drop the commercial costs and optimize the processes

To achieve so, you need to :

Know, Act and Measure


The efficiency at hand

WhereShare of profit

WhoShare of Mind

HowShare of Heart

Greatest

effectiveness

The more I buy, the more I get!

They take care of me!

They know what I need!


And tomorrow, the engine of knowledge…

The knowledge calls the knowledge which calls the steering:

• Knowledge of their customers is a major stake in commercial development

• “Quality" of their customers & the marketing campaigns become a growth driver of the turnover as well as an excellent means to pilot this last one

This thirst of knowledge, relieved by a certain number of actors, tends to measure very exactly future acts disregarding the " behavioral noise " related to – this isn’t a science

At last, sharing the information remains today difficult in many companies• Reading different from the same figure • Different sizes (formats) of reporting• Difficulties to obtain or interpret results (profits)• …


A context where access to information is getting faster,… really faster

The emergence of cost effective and interactive channelsengaged the industrialization of the customer relation.

Even though, this need isn’t fully shared by any companybecause of:• Cultural barriers• R.O. I

It runs ahead. And current blocking situations met incompanies, are mainly due to difficulty for people,departments, teams to work together on a project thatcommits the company as a whole


Thank you for your

attention

I’m pleased to answer your questions


Your contact person:

INBOX RUSSIA

Mr Vincent Lootens

Executive Director

INBOX Russie

Entuziastov Schosse, 56

111123 Moscou

Тel.: +7 495 672 23 49

Fax: +7 495 786 99 22

Cell :+7 985 763 23 91

[email protected]

Documents

Customer Relationship Management Club France