traction on crm
DESCRIPTION
Tractions view on CRM presented at Imedia summit in the Hunter ValleyTRANSCRIPT
Relationship Marketing Explained
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
What is Relationship Marketing?
It emphasises customer retention and satisfaction, rather than a dominant focus on point-of-sale transactions. (1)
“The sale merely consummates the courtship, at which point the marriage begins. The quality of the marriage determines whether there will be continued or expanded business, or troubles and divorce.” (2)
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
The Five Stepsof Relationship Marketing
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
attract > engage > analyse and profile > target > build a relationship
attract
attract > engage > analyse and profile > target > build a relationship
engage
attract > engage > analyse and profile > target > build a relationship
analyse&profile
attract > engage > analyse and profile > target > build a relationship
target
attract > engage > analyse and profile > target > build a relationship
buildarelationship
Defensive marketing• Reduce customer turnover• Increase customer loyalty
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Offensive marketing• Obtain new customers• Increase customer purchase frequency
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
The four pillars of Relationship
Marketing
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infrastructure > people > intelligence > process
infrastructure
infrastructure > people > intelligence > process
people
infrastructure > people > intelligence > process
intelligence
infrastructure > people > intelligence > process
intelligence
infrastructure > people > intelligence > process
process
RelationshipMarketingStrategies
• Change focus• Think about your weaknesses
• Stay in contact• Provide value• Show appreciation• Be responsive• Grow and adapt• Train and monitor
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
RelationshipMarketingStrategies
• Encourage registration• Ask more• Allow choice of format• Allow choice of frequency• Allow choice of content• Track user interaction• Reward customer loyalty• Encourage recommendation• Encourage feedback• Respond quickly
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Relationship
Marketing in action
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Vue Overview
• UK’s leading operator of modern multiplex cinemas with more than 600 screens that attract over 32 million customers every year
• MMS is digital comms partner, charged with overhauling all digital channels
• Objectives are to consistently:
• Retain high frequency and value customers (increase average purchase value)
• Identify and attract potential high value (profitable) customers
• Encourage existing and potential high value customers to purchase online
• Maximise advertising and sponsorship revenue by creating a value from the customer insights available
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Vue Profiling
A typical Vue customer profile – Londoners
General• Mostly single customer households• Aged 18-44• Fairly evenly split by gender• Living as singles or married
independents (no children)• Tend to visit more than the cinema
closest to their home
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Vue Profiling
• A clear understanding of profit margins• Access to ticket sales data crucial • Assessing current value (spend)• Potential value modelling
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Vue targeting – value focus
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Vue deployment – email channel
• Dynamic (Personalised)
Content
Registration ConfirmationFilm Times
Promotions
FILM RECOMMENDATION 1
FILM RECOMMENDATION 2
FILM RECOMMENDATION 3
Online Ticket Booking Confirmation
Reactivation
20 content targets, 5 audienceSegments = 1,860,480 combinations
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Vue deployment – email channel
Initial contact or re-contact Members
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Vue deployment – email channel
Initial contact or re-contact Members
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Vue Activity Summary
• Personalised content• Customer lifecycle management• Triggered messaging
• Functional• Event based• Transactional• Lifecycle• Predictive modelling
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Vue Objectives Review
• Objectives/Result:
• Retain high frequency and value customers
• Lower churn rate achieved, increase in ticket purchase frequency and increased the average spend
• Attract potential high value customers
• Higher sign up in key regions
• Encourage existing and potential high value customers to purchase online
• Improved ticket sales online (42% incr. 08/09) plus increased traffic prior to in cinema purchase
• Maximise advertising and sponsorship
• Ticket alerts driving direct sales and second sell from cross sell opportunities, now able to tap local area marketing as well as broad reach
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Relationship Marketing Summary
• Improves customer retention• Reduces cost of marketing• Identifies priority customers• Word of mouth• A customer for life• Fewer competitors• Provides advertising opportunities
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.
Questions?
Copyright MassMedia Studios Pty Limited. Not to be copied or distributed without permission.