Improving Customer Retention

Carmen Cimirro

CRM Manager – Bwin.it

Milan, Italy – March 2010

• Drive prospective customers to register

• Educate new users to overcome barriers to activation

• Educate and drive new users to overcome barriers to activation

• Increase success rates

• Build awareness

CRM: Moving towards Customer Retention

• Drive activity among best customers

• Reduce churn among active users

• Retain existing users

• Reward users

Acquisition Activation Retention

Initiatives

Key

channels

• Website - Onsite Marketing

• Direct Marketing

Objectives

• Customer Homepage highly personalized

• Ad hoc email, recurring emails

• Notification emails for main potential new actions

• Community area, forum, spotlight section

• Website - Onsite Marketing

• Direct Marketing/notification Email

• Community

• Loyalty

• Direct Marketing

• Community - Event

• CS VIP

• HomePage personalized

• Recurring emails for 1st

activation

• Activation promos

• Best user treatment program

• Contact service dedicated with 1st line email and phone call

• Loyalty program differentiated for main levels

• Community events, premium service, live chat…

Integrated CRM to support company’s growth and generate value

On site

MarketingDirect Marketing

Loyalty &

Rewarding

CRM:

3 Key Channels

Integrated CRM

to create value

The strategic pillars & operative levers

Direct Email

Marketing

Loyalty &

Rewarding

Promotion

management &

optimization

Re-engineering

automated recurring

email program

& Ad Hoc emailing

New user’s

segmentation model

Analysis to measure

DM impact on the BU

Fidelity &

Market Program

Loyalty Drivers

& ROI

Analysis to measure

the impact on the BU

Web-Onsite

Marketing

Costumer Centric HP

to maximize users

activity & retention

Special promo

and Premium services

CRM as Onsite Marketing communication

• Objectives:

Drive Activation by impacting key inflection points

in a user’s lifecycle

• Initiatives:

Homepage communication based on user’s past

activity and behavior* : Sign up bonus, educational

banner, merchandising

• Why?

Give relevant and timely information to existing

users and visitors in order to drive transactions on

the site.

Get users interested and instantly transport them

there as rapidly and directly possible

Accelerate the match-up of the right player and

the right product, at the right place and the right

time on the site

Scale and help users in ramping up & achieve

success

* i.e: Primary product of buying, last searched/browsed products, Recent Search/Browse, Demographics, Customer Lifetime

CRM as Direct Email Marketing Channel

• Objectives:

Drive Activation and retention by impacting key inflection points in a user’s lifecycleActivate and educate users Retain existing users to drive incremental activity

• Initiatives:

Re-engineering current recurring email programs, adding or reviewing new programs (i.e. lifecycle, likelihood…)Re-study the user’s segmentation combining behavior and transaction valueRe-design layout email content to ensure higher DM standard and the best reading user experience: event, couponing, promotion, istant-winCross-&up selling programs to existing users

• Why?Get users to complete 1

stsuccessful activity.

Incite new and repeat activity – Get them back into the “store”.Cross-sell and up-sell to existing users.Re-engage inactive and at-risk users who are no longer reachable via website onsite marketing

Contact Strategy: “90 Day Plan”

0-30 Days 30-90 Days 91+ Days

• Motivate users to confirm

registration and say thank you

• Remind of available resources

• Showcase product depth and

breadth

Registered User

(Reg’s)

Confirmed

Registered User

(not yet active)

NPA’s and AU

• Provide overview of site

• Educate and inform about how

to place the 1st action

• Address barriers

• Educate UNS players

• Reinforce SUC behavior

• Assist with ability to find the right

experience on the site

• Introduce features / formats

(chat live, big Deal…)

• Move players to up-selling

• “Low risk” identified products

• Introduce alternates to buying (i.e.

Fun, thrill and winning, making

money)

• Reduction of contact frequency

• Continue to educate UNS users

• Migrate users from single

products to multiple/many

• Implement new user

segmentation model

• Continue with new user

segmentation model

• Continue moving cross-selling

• Normalize communication

frequency

Acq

uis

itio

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cti

vati

on

Acti

vati

on

/ A

cti

vit

y

CRM & Direct Email Marketing Channel

CRM as Loyalty & Rewarding System

• Objectives:

Increase retentionSell more and more

• Initiatives:

Retention program / Market OfferVip programDedicated promo & ad hoc emails Special Event, Vip promotionsCS special treatmentCompelling offer

• Why?

Prevention of lapsing/declining activityKeep active users on the site Ensure a vibrant & exclusive site experienceReward with premium services the top customers

First

Experience

Predictable

Experience

(Brilliant Basics)

Differentiated

Experience

(Compelling Differentiators)

Customer

Loyalty

I’m comfortable!

It’s easy & safe

I’m really satisfied!

It delivers what it

promises

I’m cool!

Its Community is

SPECIAL

I’m delighted!

I’m SPECIAL for YOU

Moving towards Customer Retention means

making the customer feel special

CRM 2.0 - The vision

• More automated, timely, event-triggered campaigns, aggressively segment messaging.

• Investigate new content types, A/B test, new targeting types, new look and feel.

• Develop and optimize other DM Channels: SMS, outbound, telemarketing, snail mail, online

survey, live chat, social network to strengthen the relationship

• Develop Retention Marketing into a truly Integrated Customer Loyalty.

• Management: Homepage segmented, notification emails, loyalty drivers, best user treatment

concept

• Drive innovations: push CRM 2.0 and leverage product innovations via focused communication

• Test, go live, ask for any feedback, review, share insights and re-start

• Put the customer in the center of all activities

To address the challenges CRM 2.0 needs to focus on retention, even more than up to now

Build a Branded Customer Experience!

Thank you & see you soon!

Putting the customer

in the center of all activities and create a

"Branded Customer Experience"

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