marketing services
TRANSCRIPT
Services marketing
What is that?
2
You
3
We
4
Objectives
• Understand the importance of services marketing
• Be customer oriented and focus• Build operational plans• Raise awareness on quantitative
insights• Evaluate the required skills and
levers to build profitable services strategies
Summary
1. What is services marketing2. Investments3. Funnel analysis4. Marketing plan5. Build Loyalty6. Organization of the department7. Call-center Management 8. Sales pitch9. Database marketing and segmentation
What is services
marketing ?
-1-
The reference
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Broché: 648 pagesEditeur : Pearson Education; Édition : 7 (1 janvier 2010)Collection : Pearson EducationLangue : AnglaisISBN-10: 0136118747ISBN-13: 978-0136118749
The service-goods continuum
• 64% of GDP is on services, 77% in France
– Source: the World Factbook 2008
• Companies tend to increase service in their offer:
IBM / DELL / S&P500
DELL
S&P500
HBR IBM Decade of Transformation
Few definitions…
• Manufacturing– Order-taking – External– Transaction
• Services marketing– Interactive– Internal– Relational / One-to-
one
• Direct marketing– Database marketing– Digital
• Customer service / CRM
Customer value
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Marketing services and key success factors
• THE STRENGTH OF THE BRAND
– Intangibility: Services lack the tactile quality of goods
– The customer buys the reputation for expertise and for expected performance.
– Differentiation on the brand and management of positioning
• THE RIGHT PRODUCT AT THE RIGHT TIME
– Simultaneity/Perishability: A customer uses a service if time and place of production meets its expectations and needs.
– Interaction: Marketing plan optimization, development of multi-channel distribution (website, branches, telemarketing, mailing, SMS, e-mailing, interactive answering service…)
• PERSONALISATION
– Variability / Heterogeneity: Service varies from one customer to another, from one employee to another, from one store to another…
– Enhancing value: Management and supervision of customer relation (CRM): sales leaflets / POS / Scripts and personalised service through segmentation.
• INNOVATION / SERVICES
– Differentiation: innovation quickly copied– Innovation: stimulation by continuous R&D
to offer innovative products and services (web customer services / Interactive answering service, new devices)
1222Thefourservicemarketingmyths..22
The 7P’s• Importance to integrate new concepts in order to generate intimacy…
In a multichannel environment
Permission PersuasionPersonalization Presence
Brand awareness & reputation
Importance to choose the right time of contact
Optimize the preferred distribution channel
Helpful and not too pushy, customer feels it’s a service
The customer makes a decision when he is ready
Importance to integrate behavioral information
Adaptable scripts Active listening to
propose the right offer at the right time.
We only use data that customers gave us permission on their chosen channel
It is a privilege to have a conversation with the customer. The contact is valuable and sacred.
Mono-channel Price Product Promotion Place
PeopleCustomer ServicePhysical Evidence
Process
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"I know half my advertising isn't working, I just don't know which half.” William Lever
• Marketing is about maximizing performance of the investments
$ REVENUE / $ INVESTMENT
• The objective is to reduce the half…– Work with procurement and negotiate – Always challenge the allocations– Find new way to push your offer– Analyze the performance– Push high value products– Understand the full value chain
Investments- 2 -
Investments
• Marketing Investments = Creative + MediaCreative / Comm = Concept + Execution Media = Buying + Planning
• List of media:
OFF ON
ATLCapex / mass-media
Press, TV, Billboard, Radio, Cinema
Display, E-pub, Social-Network, e-pub…
BTLCurrent expenditure
Mailing, Catalogs, Telemarketing, PR, sales promotions…
SEM, Affiliation, Aggregators, e-mailing…
Dunod Publicitor
Media communication
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31 billions € invested in 2011 (UDA)
18Chiffres_cles_des_annonceurs_2012
Contacts on push medias: CPM x Impact = wCPM
To generate memorization, call-to-action on reply pulled
channelsLeading to responses : POS, call-center, e-mail, mobile or website
Media Buying
PLV BillboardOutdoor Internet,
BannerNewspaper
RadioTVCinema
CPM < 2€Mass reach
CPM between 2€ and 5€ CPM > 5€Narrowed reach
Magazines
DirectMailTelemarketing
Source: JCDecaux – Comparatif C/000 contacts par pays et media
Online marketing
+ techniques : RTBM, retargeting, virtual agents, co-browsing…
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ATL Media planning
• GRP = Reach of the targeted audience (%) x Frequency (#)
• GRP values are commonly used by media buyers to compare/plan the advertising strength between various media vehicles, period, format of communication.
• Difficulty to evaluate the reach and to be precise about the audience…
• The goal is to obtain the highest possible GRPs at the lowest possible cost, while remaining focused on the target market.
• The cost per GRP allows to compare the efficiency of the investment on the targeted audience.
• For press, selectivity of the media is used instead of ReachMedia planning
media_buyTV Media Planning
• Promise
• Proof / Evidence
• Promotion
• Main objectives
• CONTEXT
• OFFER
• TONE
• Problems to solve
• Regulatory
• Dispositif
• Retro planning
• Target / segments
• Tone
What is a creative brief…
Chart, brand awareness, brand positioning…
Creative Brief
9 ways to improve your ad by DDB
• Show your product as large as possible• Include the product name in the headline• Add in some “news” about your product• Never use negative words in headlines• Show people enjoying the product• Make the logo as big as possible• Add snazzy copy, bullets, and sales points• Always localize ads, eg. make it American
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Do not interfere with the creative process per se
259_ways_to_improve_an_ad
Agency return and legal aspects
• Check: proposal must respect the brief• Legal validation and regulation compliance is required• Legal has important impact on a communication. • One word sums up the relationship between "legal" and "marketing" NEGOTIATION• Sometimes we can not avoid the legal requirements• Best solution: apply the legal requirement with the biggest part of creativity
COMMU-NICATION
LEGALCREATIVITY
CONSTRAINTS
Conception:1. Define the product to promote2. Conception and integration in the
marketing plan3. Define a budget4. Realize a brief
Prepress1. OK to engrave (BAG)2. Photoengraving3. OK to press (BAT)
Press start1. Printing & BAR2. Routing3. Shaping
• Very processed to secure the investments
What is execution… The mailing example
27Mailing descriptif technique
Printing
• 2 types of printing– with plate– without plate
to choose with plate depends on quality, quantity and cost
UNIT COST
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Providers consultation
Suppliers list
• According to the specificities of your need• Benchmark other subsidiaries• RFI (Request For Information) if necessary
RFP preparation
• Stakeholders identification for the RFP Committee
• Tendering document approval
• Selection criteria
Issue of the RFPRequest for proposal
• Non Disclosure Agreement
• Issue of the RFP including:• Evaluation grids• Answer sheet for
standardized replies• Check lists• Contract template
• Questions & Answers
Funnel Analysis
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The funnel dictatorship - AIDA
The original AIDA sales funnel, from a 1949 pharmaceutical sales manual
Awareness line
Funnel or Hourglass
Satisfaction / Retention / Upsell / Evangelism
ATL - From GRP to sales
ProcessRetentionFollow-up
conversion
60,000Issued forms
22,000Received forms
20,000contracts
100,000Calls
100 million Views
60%
issued 36% received
90% contractualized
0,1% Calls
Communication& media planningefficiency
Salesefficiency
Mix of one-step and 2-step subscription process50% one-step and 50% 2-step
500 GRP/month 1st monththen 200-300 GRP/monthDuring 6 months mini
PROCESS• Talk to the
audience• Generate
awareness• Grow interest• Increase
desire• Push to
action
CUSTOMERS
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BTL – From lead to customer
Improve the conversion ratios at every steps of the funnel :
Lead
Prospect
Contact
Customer
Campaign design, conception and implementation
Campaign analysis
View > Read/Listen > Desire > Contact > Request
Receive > Realize > Collect > Retain
View the messagePay attention to the content
Respond
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The emailing funnel
35benchmark_courtDigital-Marketer-2012
Marketing plan- 4 -
What customer impact
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From shouting to trust…
Endless headlong…
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Databases and Flows
Cost of acquisition: CAImage / Brand awareness / Promotion
Customers / Ex-customers
Split per segments
ProfitService / Management / Data-mining
Partner / white labeldatabase
Transformation campaigns
Customer marketingLoyalty
Prospect database
Acquisitionmarketing
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Web analytics
ONLINE
SEM
Ad Serving
Affiliate
Social Media
EmailData
WebHouse
Data flows & Multichannel approach
OFFLINE
Decisioning & Personalizatio
n
Web-CentricCustomer Centric
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Personalized Email
Real-Time Targeting
Test and learn
•Be pragmatic, simple and efficient•Launch initiatives•Don’t focus on the problems you may not have
THINK BIG
START SMALL
SCALE FASTNOW
NEW
NEXT
Investment Split
TEST AND LEARN
• In order to learn, you have to take risks, you have to be patient…
• You will learn… over time
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• Split the marketing plan execution from the testing process• Building a test can be long and subject to vary in term of
retro-planning. It will now be disconnected from standard.
Test/Roll-out process
Workflow Targeting Execution Sending Reporting
Standard campaign : semi-automatization, KPI and trackersCampaign determined in the marketing plan
Campaign manager 1
Test preparation Execution TargetingTest
analysis
Test campaign : prepared separately with dedicated analysis
C.M.2
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PMU
• Les produits en ligne du PMU ont bénéficié d’un haut niveau de ‘cross selling’ avec plus du tiers des nouveaux clients ‘paris sportifs’ ou ‘poker’ pariant également sur les courses hippiques, dont la croissance des enjeux en ligne est de 20% sur l’année.
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Build Loyalty-5-
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Mc Donald loyalty & repeat sales
UPSELLACQUISITION CROSS-SELL
Four C’s of Customer Loyalty
• Captive, Convenience- seeker Contented and
Committed.
• It is argued that “the model proposed in the paper differentiates between those customers that are inertial in attitude and behavior, and those that have a positive orientation”
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Focus on customer experience
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#UXorientation
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A/B testingConjoint analysis
What Drives Customers to Switch Away from a Service Firm?
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Organization of the department
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The segment-centric marketing organization
1. Every time you break out a new segment, you have to dedicate resources to it.2. The more specific a segment is, the more specific your marketing to it can be — and, accordingly, the better you’ll perform within it.
“Tiger teams” for audience segments
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The benefits of this segment team approach include:• more focus for messaging and engagement with customers• more continuity for customers, since all their touchpoints with the
company — search, social, email, web — maintain that targeted perspective in harmony
• more agility as the team managing the segment is small and has end-to-end control over their strategy and production — minimal coordination overhead
• more experimentation as segment teams are encouraged to tailor ideas to their audience and can take risks that are relatively small in scale
• more learning for segment team members, who get visibility to the entire lifecycle of customer marketing from day one, constantly innovating at each point
Call Center Management
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The 4 pillars for telesales efficiency
Reduce
Costs
Improve
Productivit
y
Ensure
Satisfaction
Mitigate
Risks
You need to balance those elements that may be contradictory between themselves
ECONOMIC PERFORMANCE
SOCIAL AND ETHICAL PROGRESSES
1. Use standardized reports to assess the performance
2. Work on technology (dialer, IVR, …)
3. Implement lean and quality programs for continuous improvement
1. Choose your model and structure the floor
2. Adapt the size of your teams with activity
3. Structure the activity and the floor
4. Run tenders regularly with procurement teams
1. Document and adapt your processes to your risks
2. Focus on compliance and legal constraints
3. Standardize your scripts and check your sales to make sure you treat the customer fairly (TCF)
Work on employee and customer satisfaction
1. Develop leadership skills of your supervisors
2. Have strong training methods and programs
3. Make your staff happy
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Topics For Staff For Customers
Why is their first impression key?
What are they going to say?
How long will they stay?
More than the salary, providing a career path, developing specific reward programs with strong learning curve and mentoring tools will have an important impact on your turnover
More than the price, the quality of the relationship, the advice and the responsiveness is a key element to retain your customers
Have an employee referral program and use it as a KPI for employee satisfaction
Implement net promoter score to measure the impact of your initiatives
Pay attention to materials, welcome process, logistics, headset, office & desk configuration…
Your telemarketing staff is your customer first impression. If they are happy, they will exceed customer expectation and provide wow effects
Happy staff = Happy Customers
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The Script
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Architecture of a script
- High personalization in the introduction phase depending on customer profile, segment and history
- Strong personalization of the offer + sales argumentation after discovering then understanding customer needs and buying levers.
Introduction Discovery Argumentation Wrap-up Take Leave
Introduction
Segment A
Introduction
Segment B
Introduction
Segment C
Discovery
Main Q/A
Discovery
Q/A 2Discovery
Q/A 1
Argumentation
OFFER XX defined upon
SegmentAnd Discovery
Objection handling
PERSONALIZEDUpon SegmentAnd Discovery
Take-Leave
Standard compliant with Brand spirit
Wrap-Up
PositiveProcess 1
Take-Leave
NegativeProcess 2
Offer library
The funnel of the successful sales pitch
1. Identify Introduce yourself & company without taking a breath before your next sentence
2. Get attention & interestUse an informative statement that combines attention and interest
3. Engage the customerUsing informative information & asking some questions blending in a trial close or two.
4.Create desirePosition yourself more as a consultant than a solicitor
5.ConvinceThe OK flows easily with your conviction for the sales call
Ex (2):Our Company is conducting water testing in your area this month and I'm calling to schedule a convenient time for this 5-minute test to see if your water results are similar to the other homes tested in your area."
Ex(3):Client -"Is the water safe to drink?" Phone salesperson - "It has tested within safe limits, but many contaminants were found. (Trial Close) If you would like, I will send out our free report on our findings about contaminants found in your area so far. We will also test your water supply to see how it compares."
Build the desire to a point where conviction is received.Ex (4) : "On Tuesday and Wednesday afternoon our rep. will be testing on your street between 5 and 6 PM. We wanted you to know if you hear a knock at your door that it’s not a salesman, it’s just us."
Initiate contact• Get their attention• Create relationship, empathy
Gather information• Probe• Questioning• Detect needs, fears and worries• Anchoring with intonation
Argumentation• Main products features and benefits• Value statements• Presenting back and story-telling• Inoculate against objections• Raise alternative offers
Close• Summarize• Get formal agreement
Cheat sheet – Objection handling
View objections as an opportunity to strengthen your sale Welcome, acknowledge, and resolve them. Be careful that your tone remains calm and not defensive Ask questions to get clarity and help you progress the sale. Know your product and your competition Always agree and then outweigh.
Objection QuestionIt’s more than I expected to pay
If you can give me an idea of how much you were looking to pay then we can see what we can do for that price. What price did you have in mind?
I need to think about it Of course. Have I provided you all the information in order to make your decision? What would help you to make your decision if you would have more time? Our discount can be offered only today, when would you like me to call you back?
It sounds very complicated Which bit is complicated? Where can I explain things more clearly?I’m really not sure I need all that...
From what I’ve described which aspects would you say were the “must haves”?
It’s not quite what I wanted What have I missed?I’m just not sure... I want you to be sure what do you need to hear from me to be comfortable to buy
today? Have you understood all the benefits? Are those benefits interesting for you?I need to discuss it with my partner
Is there a time I could ring and talk to you both?
I’m going to have a look around and might come back to you
What can I do now to help you make an informed decision?
It is too expensive Out framing is also a great tactic: simply ask a question for further clarification and offer 2 alternatives. For example, hit them with “are you concerned with the value of the product or your current resources for funding?” Their answer will allow you to reposture if necessary.
Communication efficiency
• It has been proven that 70% of communication between people is non-verbal. This limits you to the tools of 'voice and brain' to make the sale or appointment.
• Staying positive is a prerequisite for cold calling telesales. The most successful sales phone scripts are influenced by a positive attitude. When people hear fear, anger or just plain boredom they react with objections. On the other hand, it’s hard to shut down an enthusiastic positive telemarketer.
Non-verbal 70%
Tone20%
Words, Brain10%
The voice is driving energy, it reveals the state of mind and the enthusiasm.
Use intonation to keep the customer interest and illustrate the words: question tone-up, command tone-down, statement tone flat
The flow is used to reassure and make sure you are understood.
The articulation is proving insurance.
SPEAK
Data Managementand tracking the
revenues
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Scopes
1. Research– Conjoint analysis– Market study
2. Surveys and enquiries– Qualitative : focus groups, customer
sastisfaction (NPS: Net promoter scores)– Quantitative
3. Database and mining
63Reibstein
Brand awareness
• – Notoriété assistée – Prompted awareness : reconnaissance d’une marque à partir d’une liste proposée aux personnes interrogées.
• – Notoriété spontanée – Spontaneous awareness : citation d’une marque à l’évocation de la catégorie de produits (ou du secteur d’activité).
• – Notoriété Top of mind – Top of mind awareness : notoriété spontanée de premier rang. Se mesure par le pourcentage de personnes qui citent spontanément une marque, en première réponse.
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Post-campaign analysis
• Scoring and mining: With customer data and information collected in the selection file, analysis will be run in order to build a score. Socio-demographics information, data tags and behavioral information will be used.
• Segmentation: on the longer run a segmentation of the customer database will be created in order to identity the next best offer stream and communication styles.
Gain chart
50%
80%
50% of the population represents 80% of the
respondents
RFM Segmentation
• RFM is a method used for analyzing customer behavior and defining market segments. It is commonly used in database marketing and direct marketing. If you don’t have RFM, it is meaningless to consider any other kind of model.
Multidimensional testing
Frequency 1
Frequency 2
Frequency 3
Frequency 4
Recency1
Recency2
Recency3
Recency4
Monetary1
Monetary 2
Monetary 3
Monetary 4
ResponseRate
computation for optimal modelization
The combination of each criteria gives the score of each cell – you need to determine
the cut-off for profitability
Recency - How recently did the customer purchase?Frequency - How often do they purchase?Monetary Value - How much do they spend?
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Aggregated Customer
View
DatamartData
Warehouse
Databases Repository
Data Management flowsData Sources Data Management
DISTRIBUTION(i.e. sales and services
information) Sales & Contacts
History Data about Prospects Data about Customers
EXTERNAL DATA(i.e. Partners’ database)
Demographics Financials /
Transactions Contact History Do not contact list Survey /
Questionnaire Prior campaigns
results Phone, e-mail, …INTERNAL
MANAGEMENT SYSTEM
Contracts Demographics Behaviors Risks history Survey /
Questionnaire Phone, e-mail, …
Segmentation Scoring
Data Mining
Data Analytics / BI software
Leads Generation
ETL software Extract-Transform-Load
Reporting
Reporting Software
Sales Touch Points
Integrate tracking codes on all communication for all touch points
Marketing + Technology
= Expertise
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For more
• Salon du marketing direct : www.mdirect-expo.fr/
» Salon du VAD Lille» www.vadconext.com/
• Marketing Direct magazine
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