Customer Loyalty in Cross-Channel Marketing Programs - DMA 2013 Chicago

Customer Loyalty in Cross-Channel Marketing Programs

!  Lars Crama Business Development Director, 2organize, Oxyma Group

Email [email protected] > Twitter @larscrama

WINNING CUSTOMERS HEARTS AND MINDS

QUESTION:

“How many plas=c cards are in your wallet?”

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)

25% households

High Customer

Engagement

High Revenue

Contribu=on

1.   ABOUT KRUIDVAT 2.   THE CROSS CHANNEL LOYALTY PROGRAM 3.   MARKETING PERFORMANCE IMPROVEMENT 4.   KEY TAKE-‐AWAYS


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

KRUIDVAT BENELUX

!  Stores -‐ 800 NL /180 BEL

!  12.000 Employees

!  Media expenditure •  Over 70 Million Euro

!  Loyalty Program •  Start 2011 in The Netherlands

THE CHALLENGE

INCREASE CUSTOMER LOYALTY

LEARN FROM CUSTOMER INTERACTIONS


KRUIDVAT LOYALTY PROGRAM

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

PRODUCT

CATEGORIES

Divided in 4 Categories

PRODUCT CATEGORIES

Beauty Health

Baby Men

CROSS-‐CHANNEL SEGMENTATION

Generic Offers

Loyalty Offers

LOYALTY OFFERS

Loyalty Segments

+200 sub-‐segments

Loyalty Offers

Generated Daily

Product Push by procurement and/or supplier(s)

Customer Behaviour Clicks -‐ Buying

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4

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6

2

1

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

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

ACKNOWLEDGEMENTS

Jury Award Market

ers Voice Award

25% € 1.000.000 ac;va;ons/mth


QUESTION:

“Who performs tests on their marke=ng campaigns?”

QUESTION:

“Who performs tests on ALL their marke=ng campaigns?”

HOW DO WE MAINTAIN / IMPROVE RESULTS?

HOW DO WE STAY RELEVANT?

HOW DO WE PLAN IMPROVEMENTS OVER TIME?




MARKETING PERFORMANCE IMPROVEMENT CYCLE

Customer VALUE


Customer VALUE


1. Set Goals

2. Set KPI’s

3. Plan

4. Prepare

Customer VALUE


1. Set Goals

2. Set KPI’s

3. Plan

4. Prepare

5. Contact

6. Follow up 7. Monitor

8. Op;mize

Customer VALUE


1. Set Goals

2. Set KPI’s

3. Plan

4. Prepare

5. Contact


8. Op;mize

9. Report

10. Analyze

11. Discuss

12. Improve

Customer VALUE


1. Set Goals

2. Set KPI’s

3. Plan

4. Prepare

5. Contact


8. Op;mize

9. Report

10. Analyze

11. Discuss

12. Improve

Customer VALUE




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

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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)

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




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!”


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

YOUR CHALLENGE?

Good luck! Good luck winning your customers’ hearts and minds

Email: [email protected] Phone: +31-‐6-‐51506820 Twimer: @larscrama