Master C R M Day 4

Hanoi 2008

CRM

Marketing Automation&

Campaign Management

Master Master Basic phases in CRM

Acquisition

Retention

Understand

Differentiate

Interact

Deliver

Develop

Personalize

Master Master CRM global architecture

Market placeLegal environementTargets & Segments

Frontoffice

Backoffice

Supplier PartnerEDI EDI

Company

Master Master Marketing automation

Global framework

Communication& Integration

Processes &PerformanceOffered

Services &Motivation

Applications &Technologie

PeopleSkills &PoliciesPlanning &

(Team)Management

KnowledgeManagement

ChannelManagement

MarketingAutomation

Master Master

DatabaseOne customer

with many interactionsto one company

Decision Support System

Customer

Cards & POS

Call center & Audiotext

Internet& Extranet

Sales Force Automation

Mail, Fax & Coupons

E.I.S. & OLAP Data Mining Campaign Mgmt

Type of toolsType of tools

C.M. C.M. C.M. C.M. C.M.


Automated interaction

“More and more, companies are using interactive technology to communicate with customers without human intervention and giving access to more parts of the company and even to partners.”

Bruce Kasanoff, CEO of Accelerating1to1


But marketing automation is more about changing the way we do business and interact with the customerEfficiently in each channelTrough all coordinated channels

If you're sending the wrong message to the wrong customer it doesn't matter how fast or cost-effective you become. It still won't increase revenues


Creativity cannot be automated ! Marketing automation doesn ’t save you from being

good at: Strategic positionning Action planning Action design and layout Analysing the results

Marketing automation helps only at improving operations Send up reaction times Efficency in action deployment and follow-up

Master Master Communication Process

Organization

WHO do you want to

communicate with ?

WHAT do you want to communicate

HOW do you organise the

communication

RESULT of your communication

process

Master Master Campaign Management

Target selections Criteria management List manegement

Campaign planning Message definition Sequence of actions & reactions

In function of objectives of the marketing plan Available channels to handle customer responses

Campaign execution In function of the channel Keep trac of the responses

Respons analysis Actions responses Return On Invest

Master Master Campaign classical structure

Marketing plan Strategic objectives Duration

Campaigns Communication objectives Global budget

Actions Channel & Media Planning

Timming Synchronisation

Promotions Costs elements

Master Master Functions & tools needed

Organization

Target Selection

MessageDefinition

Interactionmanagement

ResultsAnalysis

Master Master Target selections

Selection tools External OLAP tools Selection module included in the C.M. tool Standard SQL selections

Operations Define the target Count the number of contacts in a targeted group Define the selection criteria Attribute the criteria to the selection group Select the contacts Use other defined group for deduplication

Master Master Target Selection

Select list

Select graph type (2D, 3D, bar, line, pie,...)

Select what you want to see

Drill down on audience

Mail report, print report,...

Master Master Target Selection

THEN:

Define audience segment through point-and-click

FIRST:

Explore your contact potential•Look for interesting target groups•Get insight in relevancy

Master Master Message definition

Communication objective(s) E.g.: Traffic building, reward, …

Offer E.g.: A car to win, -20%, Extra service …

Call to action E.g.: Call now to book your test drive, Come visit us,

Answer the questions … Tone of voice

E.g.: Dynamic, Classical, Official, … Style

E.g.: Short, promotional, serious, … Message text

Master Master Message definition

Selected Test-userYVETTE DUCHAMPSPersonnal message

Not subscribed to newsletter

Master Master Campaign execution

In function of the channel Import the selections in the C.M. tool Plan the type of response(s)

Same channel Other channel Non foreseen responses

Find the way to integrate the action responses Merge the creation material and the data

Personnalization Pay attention to the way the customer will get the result

Master Master

• ‘Communication is about conversations with contacts’ • Automate communication scenarios!

NO RESPONSE

CLICK THROUGHBUT NO SUBSCRIPTION

SUBSCRIPTION

ON SUBSCRIPTION

Wait 2 weeks

Wait 2 days

Conference invitation with link on

subscription form

Reminder

Thanks for subscribing

In case you want more information do not

hesitate to contact us

Campaign execution

Interaction management

Master Master

Guide contacts to your BUSINESS GOAL with Microweb:- Lead acquisition- Product upsell- ...

audience

Invitation mail

Filter: personalize microweb

Survey form1

Survey form2

Interprete result

Populate list

Response page

Master Master Respons analysis

Numer of responses Quality of the responses Costs

Fix costs Creation In production Management (DB, Marketing, …)

Variable costs Production / contact

Printing Production Sending (e-mail, post, media)

Promotion rewards Return On Invest

Master Master

Select your view:-Time period-Unique users vs overall actions

Master Master Opposition between KPI’s

Quality of service vs Cost of operations Long inbound calls Live call vs automated treatment Use of call number in communication

Revenue per customer vs CRM Investment Segmentation Integration costs

Life Time Value vs Actual ROI Elements of the calculation

Etc, …

Hanoi 2008

Campaign Management in the different channels

Master Master Technical solutions

Example of campaign management tool screens

Master Master Campaign Management in channels

Interactive Voice Respons Automated call handling

Use dial tone (E.g. Phone banking, Fax back) Voice recognition

In Call Center With CTI and ACD Inbound

To mange responses to a campaign Depend on the application

Outbound Using scripts Tele sales operator


Inbound call-center operations


Fax Automated fax system

time of sending fax responses

e-mailing Inbound

Structure mails Text minning tools e-mail fulfilment tools

Outbound List management Broadcasters


Mailings Address extraction Memorized send mails

Creation List of contacts

SFA List integration in the SFA tool To do definition Follow-up tracking

SMS Short message broadcast platform Interaction scenarios management

Others: Bannering, ...

Hanoi 2008

Key steps in marketing automation projects

Master Master The key steps

1. Develop a Vision Like any automation project, companies need to understand

the problems they're trying to solve. Maximize the automation effort by identifying where you can

make the quickest gains. Consider how the marketing automation system will fit with

existing marketing processes existing systems other company systems

Data sources Specific campaign management systems


2. Understand the Organizational Impact Take a holistic approach Identify all the areas that touch customers

marketing sales telesales customer service

Consider opportunities to implement marketing tools such as auctions, exchanges and portals

Consider the human factor (egos and power struggles) Customer ownership presents a major obstacle Senior management must encourage employees to look at

marketing automation as an alternative approach


3. Think Process First When you're talking about automation, you're talking

process. Many aspects of marketing are process-oriented

Planning steps for marketing activities Action execution Coordination and data acquisition

Some software products have work-flow built into them: If the processes aren’t thought through, it will be useless Don’t use predefined model that doesn’t match your goals You have to choose a process yourself and train the people so

they're ready for it and then automate it


4. Organize Around the Customer Add new channels to the marketing mix multiplies the

complexities of managing marketing messages Product managers may be targeting unrelated messages to the

same people Multi-channel communication increases complexity

New communications technology dictates the need for new forms of customer interaction

Accomplished through developing teams to manage particular customer segments.

Design the right mix of promotions and campaigns to suit the customer


5. Earn Customers' Trust most marketing automation systems today are being used to

supercharge communication Sales commission-based way of doing business Risk of bother the customer Making it harder and harder to reach them over time.

Use the technology to establish a more powerful and profitable way of satisfying customer needs

Permission marketing Don't betray a customers' trust by selling their information on the

open market Earn the customer's trust and willingness to share information

Opt-in lists Contact them only when it's really in their interest


6. Monitor Data Integrity The foundation of any successful automation project is a clean

database Ongoing data quality Update procedures Develop data dictionary master file which defines the terms used

in the database (meta data) Put business users in charge of data categories

products customers sales

Give IT an person in the company to help Managing the data in chasing down and solving problems


7. Choose Software Carefully You need to make sure you understand how the components

will fit together with your other systems. Ask vendors to show you

How information will get merged How much code needs to be written How quickly it can be implemented

Ask the vendors to demonstrate their products through a prototyping exercise.

Find out how the software handles a real-life situation within your own company

Better appreciation for what the software can and can't do


8. Watch Outsourced Components When technology is constantly changing, outsourcing pieces

of your marketing automation can be an excellent alternative install a million-dollar software application host it for $15,000 to $20,000 per month

Your outsourcing strategy should be consistent with the information that you need Make sure they're capturing and keeping information for future

business Make sure the hosted applications aren't core to your business


9. Test and Learn Technology is allowing marketers to understand which

promotions or campaigns appeal to specific audiences. analytical capabilities are often underutilized

Data mining OLAP

What's needed is a rigorous campaign management discipline strong planning codified the campaign development process analytical capabilities use a scientific method to continually refine the mix understand customer buying behavior


10. Work Toward Cross-Channel Consistency One of the problems with marketing automation is that

customer intimacy tends to be implemented in bite-sized pieces.

Insure that each individual channel is well managed make sure they're being treated well across all channels

Providing consistent high-level service across all channels will become increasingly important.

The next challenge will be real-time synchronization across all channels

More complicated than off-line campaign management Need a better technology integration

Hanoi 2008

Case Study

Happy Days on-line activities

Master Master

• Volumes of almost 250.000 e-mail contacts • Mailings are profile-driven

large data uploads for every campaign• Campaign creation time consuming in ASP mode• In house response management• Internet infrastructure available at Happy Days• Email & Internet competence available at Happy Days• High-volume & high frequency

clear ROI for in-house product

Case study: Happy Days

Master Master

Strategy Subscription on Website Syncronisation with corporate off-line database Initiate email communication with objectives

Branding of Happy Days Increase number of pageviews on Happy Days

website Motivate people to register on the website Convince people to redeem their points online


Master Master

ListOpt-in email addresses via website

Almost 120.000 email addresses of people who registered via the Happy Days website

Opt-in email addresses from paper formsAlmost 80.000 email addresses of people who

indicated opt-in when subscribing to the Happy Days program


Master Master

Content Dynamic content

Content in 2 languages: French & Dutch Content segmentation based profile info Personalized greetings, points balance,.. Contact sensors to monitor site impact

Static content Links to Happy Days website Announcements about the program Events linked with the program Contests ...


Master Master

Personalized greeting

Points balance

Product promotions

Announcements


Master Master

Delivery E-mail is being sent in auto-sense format:

E-mail is being displayed in HTML or plain text at the recipient, depending on his e-mail client (Outlook / Outlook Express / ...)

Repartition HTML – Plain text± 90% HTML (more effective)± 10% plain text

Bounced mails are flagged in the database


Master Master

Response Unsubscription rate : 0,59 % Total clickthrough rate : 40,64 % Active period of mailing : ± 1 week


Master Master

9/03/02 13/03/0 17/03/02 21/03/0 25/03/0 29/03/0

Impact on website: Visitor sessions

E-mail send

x 6

Permanent raiseof ± 30%


Hanoi 2008

Databases &

Business Intelligence

Master Master CRM global architecture

Market placeLegal environementTargets & Segments

Frontoffice

Backoffice

Supplier PartnerEDI EDI

Company

Master Master

Database

Customer

Cards & POS

Call center & Audiotext

Internet& Extranet

Sales Force Automation

Mail, Fax & Coupons

C.A.S.A. method for integrated marketing & CRMC.A.S.A. method for integrated marketing & CRM

Collect

Analyse

Strategy

Medias Integrated Marketing

Action

E.I.S. & OLAP Data Mining Campaign Mgmt

Master Master The DB as cornerstone of CRM

360° Customer view & analysis

360° Customer view & analysis

* customer profiling

* Behavior Analysis

* Web Site analysis Web LogsWeb Logs

Internal Data(Sales, …)

Internal Data(Sales, …)

Customer Database

Customer Database

External Data(demographic, competitors, …)

External Data(demographic, competitors, …) Off line

contactsOff line contacts

WWW

Master Master Use of meta-data

Example of dimensions

Channel

Area

Time

Customer

Customer

Customer Group

All Customers

Sales Person/Broker

Channel

All Channels

Month

All Years

City Province Regions Country

Product Group

All Products

Year

Product

Master Master Top - down data modeling process

Identify the different data sets involved Describe the kind of relation between

them Organize the data sets among dimensions

(Who, What, Where, When, Why ?) Validate your choices Describe the fields in each data set Qualify & comment each field to obtain

the physical data model Describe validation rules, domains sets...

that will apply to each field.

Hanoi 2008

Analytical CRM

or

Business Intelligence

Master Master Basic phases in CRM

Acquisition

Retention

Understand

Differentiate

Interact

Deliver

Develop

Personalize

Master Master Business Intelligence

Some definition of B.I.

A broad category of software's and solutions for gathering,

consolidating, analyzing, and providing access to data in a way that lets enterprise users make

better business decisions.

A broad category of software's and solutions for gathering,

consolidating, analyzing, and providing access to data in a way that lets enterprise users make

better business decisions.

Gartner Group - 1993

Master Master Type of B.I. questions

Sales: Do we succeed in launching our new product ? Who are our

best vendors ? Which sectors are 20% above and below the forecast ? Can you analyse the gap ?

Purchasing: Who are our major suppliers ? What is the amount of

purchase by supplier ? Finance and controlling:

Where are we now in comparison with budget ? What are the forecasts for the next 3 months ?

Human resources: What is the turnover rate this month by Business Unit ? Is it

increasing ?

Master Master Type of B.I. questions

Marketing: What type of action is the most effective?

Results analysis Who are my clients/prospects?

Profile analysis How to improve the segmentation of my database

Scoring Where to open new stores ?

Potential analysis How improve customer behavior knowledge ?

Life style

Master Master About analysis and statistics

Rule Nr 1: “garbage in = garbage out”, take conclusions on accurate & populated data

Rule Nr 2: “Don’t interpret results, understand them.” e.g.: Bread statistics ;-)

More than 98 percent of convicted felons are bread users.

More than 90 percent of violent crimes are committed within 24 hours of eating bread.

Primitive tribal societies that have no bread exhibit a low incidence of cancer, Alzheimer's, Parkinson's disease, and osteoporosis. Etc.

Master Master Type of data

Definition of hard and soft languages

HARD SOFT

Univoque Multiple sence

contexted

e.g. 0 1MVX 1,12

PRINTM/F

BLEU(color, to be … )

Easy to analyse Coded Difficult or impossible to

analyse

DATAMINING TEXT MINING

Master Master Type of analysis

Results analysis Action response Contact & Response costs Return On Invest

Segmentation Profile Géomarketing

Click streams Surfing behavior

Segmentation & forecast RFM LTV

Text mining E.g. E-mail fulfilment

Master Master …what happened, why and what will happen ?

* Jim Berkowitz, ShowCase

Master Master Differences between Datamining and OLAP

Quartal

Month

In function of detailed data and agregates

OLAPTOP

Down

Year

E.G.DATAMINING

UP

Bottom

Count &Simple functions

Complexstatistics

Master Master Type of views

Geographical Mapping &

Traffic Lighting

Boston MatrixPlot

Graphics - 3D Bars

95% 95%65% 65%

+

75% Likelyhood of failure

Budget

Forecast

Target

95% ConfidenceLimit

95% ConfidenceLimit

ForecastingNeural Networks

Hanoi 2008

Basic segmentation

Master Master Basic segmentation

Identified Prospects

Targeted suspects

10 % clients = 40 % revenueTop

Heavy users

Medium buyers

Light consumers

High 20 % = 30 % revenue

Mid 30 % = 20 %

Bottom 40 % =10 %

RevenueClients

Master Master

Development

Brand Loyalty

Acquisition

Identified Prospects

Targeted suspects

Top 10 %Top

Heavy users

Medium buyers

Light consumers

High 20 %

Mid 30 %

Bottom 40 %

Basic segmentation

Master Master « All consumers are not created equal ! »

Data from 1/1 to 31/10/2002

Hanoi 2008

Results Analysis

Master Master Results analysis

Action basedNeed coding

per channelper cycleper periodper segment or source file

Need interactioncoupons, fax, letters, … Interactive media

Call centers, DRTV, DRRadio, … Internet POS, payment terminals, ...

Master Master

- inbound

- outbound

Call center

Dealers

D.M.

Sales Force

Mass Media

Pre-sales Sales After-salesCycle

Channel Qualification Analysis Closing Support Up-sellingGeneration

Pre-sales Sales

Ž

Œ

Œ

Ž

‘

Œ

Use the SMART Dialog ModelUse the SMART Dialog ModelTMTM

to code your actionsto code your actions

SMART = specific, measurable, achievable, relevant and time-bound

Master Master Test methodology in direct marketing

Action planAction design

Selections of suitable samples

Key performance indicators

Send communication

Reactions

Results analysus

Concept selection

Communication fine tuning

Selections

Key performance indicators


Action responseResponse = Nbr. responses / Nbr. Sended

Depend on targetDepend on promotionDepend on action plan & media

Response typeDocumentation or informationVisit or commercial contactOnly the promotion


Contact & Response costs Don’t compare contact cost, compare

response costSplit useful contacts and others

Return On Invest Integrates sales resultsCosts

Action costsFulfillment costsFollow-up costs

Pay attention to Life Time Value

Hanoi 2008

Profile Analysis

Master Master Procedure for profile analysis

Enhance client database

EXTERNAL (Consu-Data)

EXTERNAL (Consu-Data)

GEOGRAPHICDATA

GEOGRAPHICDATA

INDIVIDUALDATA

INDIVIDUALDATA

COLLECTIVEDATA

COLLECTIVEDATA

age sexchildren uni/multicar nationality

age sexchildren uni/multicar nationality

Social class urbanisationMosaic types

Social class urbanisationMosaic types

provincedistrictneighbourhood

provincedistrictneighbourhood

Clientdatabase

Clientdatabase

Master Master Procedure

ComparisonComparison

indexindex

Enhanced client

database

Enhanced client

database

Population Reference

Population Reference

2nd hand New

70% 30%

35% 65%

200 46

E.g.: motor cycle

Master Master Procedure

5070

95110 117

60

020406080

100120140

< 21 21-29 30-39 40-49 50-59 60+

Age:

30

110

140

0

50

100

150

0 1 2 +

130 120100

70 6030

0

50

100

150

A B C1 C2 C3 D

Nbr of motor cycle: Social class:

40 to 60 yearsmin. 1, and mostly 2 carsHigh social class ...

Hanoi 2008

Scoring Analysis

Master Master Scoring analysis

Goal Reduce wastage Better segmentation Better response rates

Multi-variables analysis Analysis of clients & prospects data Attribute variables weight Simulate scores Build groups

Master Master Case study: Touring Club

Analysis Response analysis Scoring of the prospection database Response forecasting

Mailing Results comparison

forecast vs real life


Analyzed data

province / commune language nationality age Nbr. Of children (per age segments) family size composition of the family type habitation (house of apartment)

Nbr. Of cars New or second hand car type neighborhood social class MOSAIC type


Social class

0

20

40

60

80

100

120

-27 27-36 37-46 47-56 57-66 +66

11386 9487

119106

0

20

40

60

80

100

120

a b c1 c2 c3 d

117 11397103

8594

Age

Master Master Which variable is to be included in the model?

VARIABLES WEIGHTED DEVIATIONCar age 15,92MOSAIC type 12,61Language 12,16Provinces 10,89Car 7,51Social class 7,27...


GROUPS

0%

1%

2%

3%

4%

5%

6%

7%

1 2 3 4 5 6 7 8 9 10

6,06%

4,47%

5,91%

4,20%

3,45% 3,42%

2,82%2,52%

1,77%1,41%


+350319-349296-318275-295255-274234-254210-233182-209144-181

-144

6,065,914,474,203,453,422,822,521,771,41

123456789

10

173167185192197201208213223232

GROUPS NBR SCORE REPONS '99(x 1000) %


SELECTION '99

(1.550.000)

REJECTED ADDRESSES ± 400.000

HighScores

Contr

ol 5

0 0

00

LowScores

Hanoi 2008

GEOMARKETING

Segmentation & mapping

Master Master GEOMARKETING

Where are my customers? Where can I find people with the same

profile? ...

ANTWERPEN

MECHELEN

TURNHOUT

BRUSSEL-HOOFDSTADLEUVEN

NIVELLES

BRUGGE

DIKSMUIDE

IEPERKORTRIJK

OOSTENDE

ROESELARE

AALST

DENDERMONDE

EEKLO

GENT

OUDENAARDE

SINT-NIKLAAS

ATH

CHARLEROIMONS

MOUSCRON

SOIGNIES

THUIN

TOURNAI

HUY

LIEGE

VERVIERS

WAREMME

HASSELT

MAASEIK

TONGEREN

ARLON

BASTOGNE

MARCHE-EN-FAMENNE

NEUFCHATEAU

VIRTON

DINANT

NAMUR

PHILIPPEVILLE

Master Master Key Performance Indicators

Share of walletNumber of product within the companyNeed set

1 2 3 4 5 6 7 8

8&

+

05

10152025

30Cross selling effect

Customers Members

Hanoi 2008

RFM MODELS

Segmentation & forecasting

Master Master RFM models

RFM stands for : Recency

last buy period Often the most important Depend on activity type

Frequency

Number of buys

Number of buying periods

Number of products per households Monetary value

total amount of money

Master Master RFM models

GoalMesure, manage & increase fidelity Forecast & manage churn

simulationLife Time Valuetest alternatives

Adapt communication in frequency & type in content

Master Master RFM models are based on data

Historical data (N) Client Nr. Loyaly cards Invoices Delivery notes Credit cards Waranty cards Studies Coupons Contacts, ...

Identification (1) Name & address

Telephone

Birthdate

VAT Nr.

Bank account Nr.

Master Master RFM methodology

Analyse data to find the most discriminant criteria Activity type & level Cash flow

Build the RFM model historical data Segmentation of the database Validation over several time periods Adapt ratio’s Forecast evolution

Master Master Example of segmentation

number of buys last buy last buy last buy last buy on 2 years last month between between older 1 > 3 month 3 > 12 month 12 month

1 recent recent tried once non-active

2 to 5 trusty trusty sleepers non-active

5 to 10 very trusty trusty sleepers disappointed

10 & more very trusty very trusty gone disappointed

Master Master RFM forecasting

44.00044.000

23.20023.200

22.20022.200

19.50019.500

TOT: 108.900

DATABASE

0000

1010

0101

1111

BuyY1-Y2

Size

Master Master RFM forecasting

44,00044,000

23,20023,200

22,20022,200

19,50019,500

0000

1010

0101

1111

HOLDERS on 01/01/Y3

USERSIN Y3

9%

26%

50%

60%

4,000

6,000

11,100

11,700====

32,800

PS: 29% of new holders use their card

35,000 X 29% 10,200=43,000

Master Master Life Time Value

Measure the long term potential Forecast expenses evolution Forecast the churn Adapt the marketing plan

Expenses

Time

Segment 1

Segment 2


Different types of LTV Forecasted (base on company’s customer wallet knowledge) Actual (base on experience with a particular customer)

Variables Acquisition costs (direct and indirect costs) Margins (global over a period or per product) Retention costs

Marketing activities to reward and/or cross sell Complain management, …

Age, revenue level, type of product, ...


Formulas

LTV = net margins - retention costs - acquisition costs

LTV = pt mt Ct - dt + at +Rt) Ct - A

Where:n = numbers of periods of customer relationA = Acquisition costsp = propention to buy in the period t

m= net margin in the period. Can be detailed in function of the products and volumesd = design costsa = variable action cost (related to the volumes)R = Retention rewards costsC = distortion factor to get constant cost or revenue

t=1

n

t=1

n

Hanoi 2008

Thanks

Master C R M Day 4

Business

Transcript of Master C R M Day 4