vauxhall uk crm programme
TRANSCRIPT
GM Information Page 1
InformationTechnology
Vauxhall UK CRM Program
By George Hammond
GM Information Page 2
InformationTechnology
Contents Introduction
− Customer Lifecycle Process Industry Trends
− 2015 Automotive Industry Highlights− Leading Marketing Automation Platforms
2015 CRM Strategy− 2015 Program − 2015 Voucher Strategy and KPI’s
2016 Voucher Program Customer Journey− Cross/Up–selling to current Vauxhall customers− Converting new prospects into Vauxhall car purchasers
Preference Centre Business Case Engagement Process and Hours Successful Drivers
GM Information Page 3
InformationTechnology
Introduction
GM Information Page 4
InformationTechnology
Goal Is To Deliver The Company’s Propositions In The Most Effective Way Possible Along The Customer Lifecycle Process.
Welcome Strategies
Cross-Sell / Up-Sell Strategies
Win-Back Strategies
Attrition Management
GM Information Page 5
InformationTechnology
Industry Trends
GM Information Page 6
InformationTechnology
2015 Automotive Industry Highlights CUSTOMERS WANT A SEAMLESS EXPERIENCE ACROSS THE LIFECYCLE
− New entrants are a real threat: One-half of customers are interested in buying a car from a tech company like Apple or Google
− Customers expect more and more from manufacturers and dealers: they value technical expertise and regular personalised comms / offers and open to sharing their data
− Satisfaction is not enough: When it comes to repurchase, high levels of satisfaction are needed to create strong feelings of loyalty
MANUFACTURERS CAN USE INNOVATION TO STRENGTHEN THEIR POSITION− Interest in connected vehicles technology is high (i.e. smart GPS’s)− People are willing to pay significant amounts for autonomous driving: Around 79% of
respondents across expressed this interest− Mobility services complement car ownership: Over 70% of those who are interested in
using mobility services also want to own a car (i.e. car share schemes)
Source: Cap Gemini research (based on 7,500 customers worldwide)
GM Information Page 7
InformationTechnology
MARKETING AUTOMATION SOFTWARE: MARKET LEADERS
Source: www.hubspot.net
GM Information Page 8
InformationTechnology
2015 CRM Strategy
GM Information Page 9
InformationTechnology
2015 Program (Proxy of 2011 Program)
Event Description KPI Measures 2015 Result 2016 Goal 2016 Result
Customer Voucher
Customer Voucher shown on high volume journey that leads to a sale.
Leads, Sales Conversion
Website Call-To-Action Conversion Call-To-Action form completion.
Form conversion rate, Leads
Contact Time Metrics
Time it takes for dealer/sales person to a lead
Average time per region / dealer / sales person
Golden Ticket
Sales person wins a golden ticket if they contact a lead within one hour. X no of tickets become a £100 shopping voucher. Volume of tickets
Form Dwell Pop-Up
Short form appears whenever a user is about to abandon a test drive request
Short form conversion rate, Leads
GM Information Page 10
InformationTechnology
Focusing On Voucher Offer Program Using High Volume Customer Journeys
Journey Targeted
Customer Targeted
Total Pages Along
Journey
Call to Actions on
Journey
VoucherPop-Up
On
Leads Lost On
Key Page
Sales Conversion Rate
(internet voucher campaign)
Sales Volume
Opportunity
Locate a Dealer(Corsa 5 Door)
New 8Test Drive,
Configurator, Dealer Locater
5th Page 1,599 16.72% 267
Repeat 8Test Drive,
Configurator, Dealer Locater
4th Page 4,236 16.72% 708
Corsa 3 Door
New 4 Configurator 4th Page 54,651 16.72% 9,138
Repeat 4 Configurator 3rd Page 96,928
16.72% 16,207
New AstraNew 4 Configurator 4th Page 56,346 9.19% 5,181
Repeat 4 Configurator 3rd Page 104,486 9.19% 9,607
Used Car (Corsa Range)
New 4 Locate a Dealer 4th Page 4,329 16.72% 724
Repeat 4 Locate a Dealer 3rd Page 161,060 16.72% 26,930
ZafiraNew 4 Configurator 4th Page 12,393 11.56% 1,433
Repeat 4 Configurator 3rd Page 29,898 11.56% 3,456
GM Information Page 11
InformationTechnology
2015 Cumulative Voucher Program KPI’s
• Money off vouchers are 2015 best performing vouchers and so they become the control group voucher when testing is done in 2016
Brand Voucher OfferVoucher Offer Visitors
Voucher Redemptions
Voucher Conversion Rate Car Sales
3 Door Corsa£200 off Purchase Price 10,000 800 8.00% 100
3 Door Corsa 2 Year Free Warranty 8,000 600 7.50% 90
3 Door Corsa20% of 1st Year's Insurance Free 6,000 400 6.67% 80
3 Door CorsaFree MOT for first 3 years 4,000 200 5.00% 70
3 Door Corsa 3% off Purchase Price 2,000 100 5.00% 60
GM Information Page 12
InformationTechnology
2016 Voucher Program Customer Journey
GM Information Page 13
InformationTechnology
Cross/Up–Selling To Current Vauxhall Customers
On-going Program Optimisation
Project Timeline
Phase 2Phase 1
Profiling Current Buyers
Tailored Content For Buyers- Mailing Tests
• Creative / Comms OptimisationBuyers
Increase Purchasers
Phase 3
Buyers RFV Segmentation
• Email opens• Email clicks• Web visits• Purchase value
• Mosaic• Salutation• Gender• Location• Web Behaviour
Product Categories Offers
• Model purchases• Purchase value
• Updated contact details• Updated mosaic• Lifestyle / Lifestage Insight• Model / Assesory Preferences
Merging customer
database with social media
data
Creative Mailing
• Previous phase’s insights drive purchases & CRM strategy: − Greater personalisation− Relevant cross-up / sells− Relevant competitions/ offers / loyalty schemes− Preferred products− Right channels
GM Information Page 14
InformationTechnology
OPTIMISING CHANNELS THROUGH RECENCY, FREQUENCY, MONETARY VALUE SEGMENTATION
Recency of email/web clickthroughs1- Over 6 months2 - Within last 6 months3 - Within last 3 months4 - Within last 2 months5 - Within last 1 month
Frequency of email/web clickthroughs1- Every 12 months2 - Every 6 months3 - Every 3 months4 - Every 2 months5 - Every 1 month
Highest
Recency
Frequency Average Monetary
Value
5 High Value 5 5
4 4 4
3 Medium Value 3 3
2 2 2
1 Low Value 1 1
Lowest
• Based on customer contact and engagement data an RFM segmentation model can be used to optimise channel use.• High value offers can be used to reward customers who interact and redeem through digital channels more frequently (web, email, facebook). • Direct mail / telemarketing channels can be used for lower value customers who do not respond frequently to digital channels. This option also allows us to understand customer experience issues.
GM Information Page 15
InformationTechnology
Evaluating Email Campaigns To Inform Testing
• We’ve seen an increase in open rates with the discount offer subject lines proving more effective than urgency style subject lines in October.
• Key words in the subject line combined with the secondary offer on the creative, plus the change of delivery day to Monday may have contributed to the uplift in open and click rates.
• A/B Testing or Multivariate Testing for some or all of these variables may help to optimise results further.
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Performance By Newsletter Message- All Data
HTML Open %
Click to Open %
GM Information Page 16
InformationTechnology
Email Testing Schedule
• Using the above testing schedule for the key variables we identified, we can check whether marketing communication alternatives really do optimise open/click rates across the customer base.
• At the end of the testing process we would be able to choose the optimum marketing communication option for the customer base.
January 2013 February 2013 March 2013
A - Test (50%) January (control) February (control) March (control)
B - Test (50% split in 2)
Percentage Discount vs Value Discount
Subject line & Secondary offer match vs Subject line & Main offer match
Monday Delivery vs Tuesday Delivery
Document overall winning email
Overall winner is used as control next month
Overall winner is used as control next month
Overall winner is used as control next month
GM Information Page 17
InformationTechnology
Executing a Strong Welcome Strategy to Convert New Prospects into becoming Vauxhall Customers.
You never get a second chance to create a first impression.
A well executed welcome strategy to new prospects pushes product/brand attributes and sets expectations for future contact.
It encourages the new prospect to become excited about your marketing communications and increases the likelihood they will be active in your program.
A good welcome strategy is also appropriate because new prospects who have signed up to your program are more likely to open/click on an email or browse the company’s website.
It can improve the improve the recency, frequency and monetary value of your new prospects.
GM Information Page 18
InformationTechnology
Meet Miss Phillips:Age: 30Occupation: Accountant, City FirmIncome: £65,000 per annumLives in London
• Miss Phillips has just signed up for Vauxhall emails after receiving a FTAF link from her Uncle, who is the Finance Director of a Management Consultancy.
• Her first email sets expectations for future communications. She notes down details but does not click on anything.
GM Information Page 19
InformationTechnology
Welcome Strategy Development
Welcome creative – set expectations,
reiterate brand & benefits Yes
No
Promotional creative –
personalised offers / deals /
contentYes
Welcome Message 1
Promotional - Message 2
No
Promotional - Message 3
Promotional - Message 3
Promotional creative 2
Promotional - Message 3
Promotional - Message 3
Yes
No
On-going Email Program Optimisation
• More personalised offers• Preferred products • Tailored Cross/Up sell
Promotional - Message 2
• More aggressive messages (i.e.buy by Dec 30th and get £500 off ! )
Evaluate Performance / Use Best Practise and
Implement Improvements
GM Information Page 20
InformationTechnology
Meet Miss Phillips:Age: 30Occupation: Accountant, City FirmIncome: £65,000 per annumLives in London
• Miss Phillips second email is more tailored. Seeing as there is not a great deal in the way of profile data, the second email is tailored by mosaic and gender. • Based on this additional data, email number 2 pushes out a deal for the new 3-door Corsa which she opens and clicks on.• She gets her first Newsletter and is offered the chance to become a fan of the Vauxhall brand experience via Facebook.• Miss Phillips now regularly enters forums via facebook and gains access to latest chat, content reviews and campaigns on Corsas.• She now regularly forwards relevant product campaigns to her social network.
GM Information Page 21
InformationTechnology
Welcome Strategy Development
Welcome creative – set expectations,
reiterate brand & benefits Yes
No
Promotional creative –
personalised offers / deals /
contentYes
Welcome Message 1
Promotional - Message 2
No
Promotional - Message 3
Promotional - Message 3
Promotional creative 2
Promotional - Message 3
Promotional - Message 3
Yes
No
On-going Email Program Optimisation
• More personalised offers• Preferred products • Tailored Cross/Up sell
Promotional - Message 2
• More aggressive messages (i.e.buy by Dec 30th and get £500 off ! )
Evaluate Performance / Use
Best Practise and Implement
Improvements
• Becomes a Vauxhall brand experience facebook fan
GM Information Page 22
InformationTechnology
Vauxhall would evaluate the performance of current welcome strategy for new prospects by analysing:
− Time between sign-up date and first sent message for new customers− Time between first message and first, second, third open / click for new customers − Number of delivered messages before first, second, third open / click− Number of abusers and unsubscribers by first, second, third sent message
This identifies how new prospects react to Vauxhall program after they join, enabling us to recommend an appropriate welcome sequence: − Welcome to Vauxhall / Thank you – Day 1− Promotional creative: Personalised offers, Downloadable content – Day 7− How is the user experience ? / Would you like us to alert you on specific product
offers ? – Day 14− Promotional creative: Greater personalisation, cross sell suggestions – 1 month− Can we help you in any other way ? – 2 months− Promotional creative: Greater personalisation, up sell suggestions – 3 months
We would profile new prospects by email behaviour, website behaviour and personal demographics.
Evaluating Current Welcome Program
GM Information Page 23
InformationTechnology
We would also evaluate the best practise of current welcome emails by looking at: − How you set expectations for content and email frequency up front− How you push brand values and clearly state benefits to the customer− The use of your preference centre to confirm customer information /
email frequency− Confirming Vauxhall customer service contact information
This evaluation would highlight where improvements can be made on:− Contact time− Contact frequency− Subject line− Creative content
Evaluating Current Welcome Program
GM Information Page 24
InformationTechnology
Preference Centre Business Case
GM Information Page 25
InformationTechnology
Preference Centre Business Case
• Data manipulation to summarize yearly billings for each customer status (i.e. Active, New etc…. )
• Extrapolate from billings data trend to produce BAU forecasts
• Extrapolate from BAU forecasts using a 0.5% growth factor to produce preference centre forecasts
• Over a 6 year period we expect preference centre revenue to consistently outperform business as usual revenue. Over this period we also expect to see an overall cash benefit of £120m from the preference centre.
2014 2015 2016 2017 2018 2019 Total£'000 £'000 £'000 £'000 £'000 £'000 £'000
Sales Revenue (from preference centre) 24,171 24,534 25,025 25,525 26,036 26,556 151,847
Sales Revenue (from business as usual) 24,051 24,412 24,900 25,398 25,906 26,424 151,092
Incremental Revenue 120 122 125 127 130 132 755
CostsTelemarketing 568 577 586 594 603 612 3,541 Direct Mail 4,220 4,283 4,348 4,413 4,479 4,546 26,289 Email 68 69 70 71 72 73 422 Data Acquisition 217 220 224 229 233 238 1,362 PC Development (Yr 1 only) 100PC OPEX (post-implementation) 15 15 15 15 15 75 PC CAPEX (post-implementation) 20 20 20 20 20 100 Contingency 52 52 53 53 54 55 319
Total Costs 5,225 5,236 5,315 5,395 5,477 5,560 32,207
Cash Benefit / (Loss) 18,947 19,298 19,710 20,130 20,559 20,997 119,640
GM Information Page 26
InformationTechnology
Engagement Process and Hours
GM Information Page 27
InformationTechnology
Engagement Process Access to George Hammond’s Services
− An assigned account manager will have full access to George Hammond’s services and will leverage the necessary skill set within that team.
Monthly Meetings− In-depth monthly meetings which review ongoing initiatives, refine engagement
plans and ensure objectives are met.
Weekly Status Meetings− Conduct weekly status calls with George Hammond and Vauxhall teams to ensure
momentum is kept.
Quarterly Analysis and Engagement Reviews− Onsite meetings to review larger analytics projects and plan upcoming analysis
projects for the quarter.
GM Information Page 28
InformationTechnology
CRM Programme Hours
GM Information Page 29
InformationTechnology
Successful Drivers
GM Information Page 30
InformationTechnology
Process Drivers of Change Program Champion
− Project design / plan
Senior Management / Stakeholder Buy in & Support− Educate/agree the strategies and means by which new approaches
can be established.
Business Strategy Development (Internal Audit)− Business objectives and competencies− Business competitors
Customer Strategy Development (External Audit)− Target customer segments− Business product choices
Specialist Staff Resource (i.e. Analysts, Account Management)
GM Information Page 31
InformationTechnology
Technical Drivers Complexity
− Effective Implementation of I.T. Systems− Effective Implementation of Customer Databases
Source Systems− Appropriate analysis tools− CRM system tools
Software compatibility Channel Integration (i.e. Email, DM, Call Centre) Customer value creation process
− Modelling / Segmentation− Attributing appropriate metrics to measure performance− A/B & Multivariate Testing
GM Information Page 32
InformationTechnology
End