marketing with customer information…. © copyright the square window ltd. 2005 agenda ...

Marketing with Customer Information…

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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