Customer Relationship Management

It’s all about connections…

Introduction

In your opinion, what is the biggest marketing challenge facing

advertisers?

much more propositions…Each day, the average consumer encounters about 3.000 daily advertising messages.

Not more time

Not more money

Attention is key

Differentiationis key

Connectionis key

The 3 major advertising trends

Shoot louder

Interactivity From passive to active advertising

Shoot louder

Personalisation

Advertising is only boring when you’re not interested

in the message

Shoot louder

New (use of) Media

TALK GLOBAL

Standard & Poors Advertising Survey Dec. 2005

How to connect to such a connected consumer ?

CRM does it better !

What is CRM ?

• Customer Relationship Management is

- The best way to create a strong personalized relation with

each client

- Leading to intimacy and loyalty

- The best way to develop client knowledge

- A competitive advantage booster

- A coordinated way to optimize communication

What is CRM ?

• CRM is NOT

- Sending advertising by post

- A one way untargeted communication

CRM is a closed loop

Data

ClientBaseIn

form

atio

n

Analysis

Message

Strategy

Feedback

CRM is complementary to other media

• The different communication means have an impact on different levels Coverage

Top of mind & reactivity

Loyalty & relationship building

Mass media

Direct Marketing

CRM

CRM is customer focused

• Multi-media

• Segmented client approach

• Learning relationship

• To improve profit and client loyalty

CRM is relevant

• Short term CRM allows to- Manage large numbers of clients with a personal touch

- Generate interactions, traffic & sales- Manage marketing costs : recruiting a new client costs 5

times more than keeping a client loyal

• Long term CRM- Increases loyalty & profit per client

- Helps to manage the most valuable brand’s asset: its clients!

CRM is relevant

• It increases the brand image power

- By working on the relational aspects of the image • “VIP club member” feeling of CRM

- By providing content to enhance “specialist” image

of the brand

The « Explore More » Case

How to build…

• A solid and rich customer database

• A state-of-the art Community Magazine

• An effective interactive relationship platform with the customers of the brand

• A commercial success with proven sales uplift

All this mainly based on content vs pure promotions

The Retail concept

The Facts: start from scratch…

• In June 2009 - A.S.Adventure is a successful retailer on the Belgian market, with main focus on expansion and increase of the number of shops

- There were 28 shops in June 2009

- The brand was not in the possession of one single customer data

- The brand had no channel for fast and effective communication with its customers

The Objectives: building a strong community• Building a community, strongly anchored in content

(expertise, best in class, …), using in other words a part of the DNA of the brand A.S. Magazine

• Inviting the customers to join an ‘advantage’ program (no cash back, rebates ea, just a tailor-made information program) Explore More

• Monitoring a high percentage of sales, attributing these to specific customer id’s and starting to communicate with content e-campaigns, in order to increase

– The customer’s number of shop visits– The customer’s average basket size

The concept

First step: create a community around

a very strong magazine

First step: create a community around a very strong magazine

The specs of the A.S.Magazine

• Distributed 4 times / year

- The first year free for all A.S. customers

- From the first year on free for all Explore-More cardholders, sold in the A.S. stores to all other customers

- After 18 months also sold in the Belgian Bookshops

• 80p of content

• 20p of ads

A.S.Magazine one of Europe’s most popular magazines

• 300.000 readers

• Reading time: 40 min. (European Benchmark: 25 min.)

• 82% of the articles are read / + 50 % read the entire magazine

• First self-supported magazine in Belgium

Source : Custo, April 2010

Second step: make the customers identify by joining up the Explore More program (communication POS)

Second step: make the customers identify by joining up the Explore More program (communication in Magazine)

Third step: the customer is member of ExploreMore

The results – More than 300.000 members in one year

The results – 80 % of netsales registered with card (65 weeks ago this was 0%)

4.000 new cards every week

The customer buys articles and receives…

• A) E-letters - Generic info about the brand and what’s going on in and around the shops

- Really for each customer

- This information is non-specific

- Monthly

E-letters

The results – e-letters

Average of + 30% of unique open rates (IAB Belgian’s benchmark: 25%)

The customer buys articles and receives…• Flash mails

- Information about the brand- Specific advantages for cardholders

• Partner actions

• Pre-sales campaigns

• Add-on services and products

• Increase brand awareness and bring dynamic in the program

• This information is mostly profile-specific (local action, limited target,…)

Flashmails

The results – Flashmails (generic info mails)

Average of + 40% of unique open rates up to 92%

The customer buys articles, articles are linked to customer identification and customer receives…

• Triggermails- Inform about the customer’s specific purchases

• Additional info• How to use• Additional and need-for products

- Take him back to the shop- Up-selling & cross-selling

• All these mails are purchase-specific and are the heart of the program, they inform the customers and generate incremental business

Triggermails

The results – Triggermails (generic info mails)

Average of + 70% of total open rates up to 90%Cardholder’s yearly shop visits increase from 2,4 to +4

Average basket for cardholders raise from 64,7 Euros to 94,3 Euros

The customer buys articles and receives…

• Reward info- Specific rewards (valid 1 < month) to thank him for a year loyalty

Reward info

The results – Reward info (coupon rewarding 1year of loyalty)

Participants Total amount of voucher values

Average voucher value

Total amount of money spent

Average basket size

17.723 € 315.085,64 € 17,8 € 1.103.597 € 62,26

Conclusion

Conclusions : CRM does it better !

• Unique Click Through far above standards

• Raise of the visit frequency

• Raise of the average basket

• A stable growth of revenue with 10% since December 2009

• Qualitative content approach highly contributes to the brand positioning

Thank you for your attention