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Transcript of Marketing with Customer Information…. © Copyright The Square Window Ltd. 2005 Agenda ...
Marketing with Customer Information…
© C
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The
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05
Agenda
Introduction– Why keep customer information– Data Basics– The Customer Database
Using data you already have
Enhancing your data
Using Enhanced data
Summary
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How Can Data Help You…?
It’s About Sales:
Winning new customers
Getting existing customers to buy more
Keeping existing customers buying again & again.
Achieving your business objectives
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Specifically…
Understanding relative value of different customers
Building a ‘picture’ of best customers and finding prospects who ‘look like’ best customers
Spotting potential – identify future best customers and identifying quick wins
Understanding the most effective way to communicate with different customer groups
Using personalisation to increase the impact of marketing
Tailoring your communications to influence purchase behaviourUsing Your M
arketing Budget Wisely!
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Data ‘Basics’ : Data Protection Act
Be aware of your responsibilities under the data protection act
Be aware of opt-outs and opt-ins
‘Notification’ – have you done it?
Covers B2B as well as B2C marketing
www.informationcommissioner.gov.uk – Click on ‘Small Business Guidance’
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Data ‘Basics’ : Hygiene
Storing data costs money– Only capture and keep what you need
Data Hygiene– c. 5% of postcodes change each year– c. 3-5% of population move each year– c. 26% of senior executives change jobs each year– People die– People register on ‘Preference’ services
Out-dated data wastes money; impacts your ‘brand’– Free data audits available online
– E.g.: www.experian-intact.com
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Data ‘Basics’ : Managing Your Data
In House:– MS Excel– MS Access– Bespoke– Off-the-shelf software – e.g. ACT, Goldmine
http://www.netintent.co.uk/netsolve/
Outsourced– Database management provider
Your Database
A Mailing List or a Business Asset?
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Data: Consumer Databases
Promotional Historyoffers sent
responses
Promotional Historyoffers sent
responses
Contact Detailsnameaddress email tel no.
Contact Detailsnameaddress email tel no.
Transactions date of purchase value productchannel
Transactions date of purchase value productchannel
Personal Detailsagegender children
Personal Detailsagegender children
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Data: Business-to-Business Databases
Contact Detailscontact name (s)address email tel no.
Contact Detailscontact name (s)address email tel no.
Company Detailssizeindustry financialscredit risk
Company Detailssizeindustry financialscredit risk
Transactions date of purchasevalue productchannel
Transactions date of purchasevalue productchannel
Contact Historysales meetings
proposals
tenders
Contact Historysales meetings
proposals
tenders
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Turning ‘Data’ Into ‘Information’
Data mining– Create a Single Customer View
Interrogating your database(s) to:– Gain insight into how your customers are behaving– Segment your customers based on:– Products bought, Purchase channel, Value,
Demographics
How…?– Reports– Excel spreadsheets– Data bureau.
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Useful Customer Information
Transactional: Purchase cycle
Purchase history – What they’ve bought/not bought– Recency, frequency, value
Descriptive: Demographics
‘Lifestyle’
Using Existing Data
Enhancing Your data
Using Enhanced data
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Profit
80%
Existing Customers – Why Bother?!
It costs 3 – 8 times more to win a new customer than to sell to an existing one
CustomersCustomers
20%
67% of customers ‘defect’ due to lack of contact.(McGraw Hill)
…Your existing customers are often your
BEST and CHEAPEST source of additional sales
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Useful Customer Information
Transactional: Purchase cycle
Purchase history – What they’ve bought/not bought– Value– Recency, frequency, value
Descriptive: Demographics
‘Lifestyle’
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Purchase Cycle
new
one timers
growing loyal
lapsed
enquirer
non-converters
Enquirers – Have they bought yet?
New Buyers - Have they bought again?
Lapsed Customers – Can they be ‘reactivated’?
One Timers
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Enquirer Follow-Up
Dear Simon
Thanks for using Insuresupermarket.com…
We noticed you haven’t filled in the registration section…
…when you do have the registration number we could provide many more competitive quotes…
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Purchase History – Sorting By Value
Rank your customers by spend Spilt them into groups of equal number Total the value of each group
20% of customers = 80% of value
CustomersGroup Value % ValueGroup 1 5,000 800,000£ 80%Group 2 5,000 100,000£ 10%Group 3 5,000 50,000£ 5%Group 4 5,000 30,000£ 3%Group 5 5,000 20,000£ 2%Total 25,000 1,000,000£ 100%
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05 ? Use Shamelessly(!)
Ask for:
• Referrals (MGM)
• Testimonials
• Feedback
High
Low
Value: Best Customers…Keep Them Buying
• Delight
• Inform
• Reward
• Thank
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Value: Medium Value Customers
Increase Order Values or Frequency
• Inform
• Incentivise
• Encourage
• Thank
Look-alikes:
Esp. those with similar characteristics to your best customers
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Keeping in Touch: Breeze & Wyles
Newsletter developed: “added value rather than hard sell”
Raise their profile and strengthen ties with existing customers
Total campaign cost £648
• 1,500 mailed - 200 responses
• Upsurge in enquiries linked to articles in the newsletter
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Value: Low Value Customers…
Low Priority
Maintain
• Inform
• Thank
(Are they costing you money to serve?!)
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Purchase History to Predict Behaviour
Customer Information can tell you:
Enquirers most likely to Convert– Use data capture to qualify at enquiry stage
Customers likely to lapse– Financial services – asking for their mortgage balance
Those most likely to:– Buy other products from you (cross-sell opportunities)– Spend more
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Purchase History
Recency, Frequency, Monetary Value: To make your communications work use RFM -
recency, frequency and monetary value. It’s tried and tested and works Your best prospects for selling to are the most
recent the most frequent and those with the highest monetary value
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05 £800£200£200£400
£300£300
£400 £700£300
£400£400
£300£100£200
TotalProduct CProduct BProduct ACustomer
Cross Sell Opportunities
What They’ve Bought / NOT Bought
Manufacturer X
Manufacturer Y
High Tech A
High Tech B
Travel Z
?
??
Using Existing Data
Enhancing Your data
Using Enhanced data
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Useful Customer Information
Transactional: Purchase cycle
Purchase history – What they’ve bought/not bought– Value– Recency, frequency, value
Descriptive: Demographics
‘Lifestyle’
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Adding To / Enhancing Your Data
DIY data-capture
Purchased data enhancements– Businesses – ‘demographics’– Consumers – ‘geo-demographics’, lifestyle
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DIY Enhancement
Customer Contact points– Enquiry– Purchase point– Post Purchase– Course of business
Capture methods:– Face-to-face– Questionnaires– Website– email
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Purchased Enhancement
Where to go…– B2C: Acorn (CACI), Acxiom, Prime Prospects– B2B: Mosaic (Experian), Dunn & Bradstreet
Data such as… – B2C: generic classification, income, lifestage, lifestyle,
newspaper readership, housing type, job type– B2B: generic classification, SIC codes, financial
information, key contacts
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Consumer Acorn Classifications
Wealthy Achievers
Wealthy Executives Affluent Greys
Flourishing Families
Wealthy Achievers
Wealthy Executives Affluent Greys
Flourishing Families
Urban Prosperity
Prosperous Professionals Educated Urbanites
Aspiring Singles
Urban Prosperity
Prosperous Professionals Educated Urbanites
Aspiring Singles
Comfortably Off
Starting Out Secure Families Settled Suburbia
Prudent Pensioners
Comfortably Off
Starting Out Secure Families Settled Suburbia
Prudent Pensioners
Moderate Means
Asian Communities Post Industrial Families
Blue Collar Roots
Moderate Means
Asian Communities Post Industrial Families
Blue Collar Roots
Hard Pressed
Struggling Families Inner City Adversity
Burdened SingleHigh Rise Hardship
Hard Pressed
Struggling Families Inner City Adversity
Burdened SingleHigh Rise Hardship
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Commercial Mosaic Example
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Commercial Mosaic Example
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Profiling - How Does It Work…?
Sample from your database
Matched against Data company’s ‘universe’
Analysis shows significant differences : your data v.
general populationOutput = Descriptive Profile of your typical customer group(s)
Profile can be used to select list/media/area of likely Prospects. Info can be
appended to your data records
Using Existing Data
Enhancing Your data
Using Enhanced data
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Using Enhanced Data…
Winning New Customers Communicating More Effectively
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Winning New Customers
Identifying good prospects
Using profile report or generic classifications to:– Identify ‘hot’ postcode sectors– Buy lists
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Postcode Sector Ranking Report
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Customer or Prospect Penetration
Ref: 15
To visualise your data to plan prospecting or expansion
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Buying Lists – Where to Go..
For - Email, SMS, Telephone, Mail
List Brokers online or offline
Lifestyle list providers (consumer)
Publishers
Business data providers
Published Directories - i.e. Yell
List swaps
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Buying Lists – What to Consider
Fully brief your data supplier Where did the list come from? When were the records last updated? Is it possible to test the list? Which Suppression files used?
– Mortality– TPS/MPS
Is a net names deal available? Is email data is “opt-in”? Can you advise on test options for emails? How many selections are available? Are there any restrictions? What options are available -i.e. one time use, multi-use?
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Communicating More Effectively
Making media choices – press, radio, email, mail, web
What to say:– Tailoring your ‘proposition’ – Anticipating customers’ requirements
How to say it:– Appropriate ‘tone of voice’.
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Tone Of Voice
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Make It Work For You Tomorrow…
Remember: Customer Information drives your marketing
Data/Information Audit– What have you got?
Analyse / Interrogate your data
– How could you use it?
– Where are your quick wins?
What other data would be useful? How to get it?
– Yourself – (Phone, Web, Mail) OR Bought-in
– Beware data ‘overload’
Think how to make it pay