how to launch a event ticketing sales business on mobile [part 4 - customer acquisition and...

HOW TO LAUNCH A EVENT TICKETING SALES

BUSINESS ON MOBILE ROCKET FUEL FOR

ASPIRING MOBILE MARKETERS

@FLEPHDOTCOM

CUSTOMER ACQUISITION & RETENTION

SECTION FOUR

WHAT IS THE DIFFERENCE BETWEEN CUSTOMER ACQUSITION

AND CUSTOMER RETENTION?

SO…

CUSTOMER ACQUISITION REFERS TO TECHNIQUES USED

TO ACQUIRE CUSTOMERS

CUSTOMER RETENTION IS A STRATEGIC PROCESS

DESIGNED TO KEEP OR RETAIN CUSTOMERS

CUSTOMER ACQUISITION AND RETENTION

IT COSTS 4 TIMES AS MUCH TO ACQUIRE A CUSTOMER

THAN IT DOES TO RETAIN A CUSTOMER

WHAT YOU NEED TO KNOW!

INSIGHT

BRAND EXPERIENCE SPECTRUM

ACQUISITION STRATEGY RETENTION STRATEGY

ATTENTION COMMITMENT ENGAGEMENT DEFECTION

THE DRIVERS OF CUSTOMER CHURN

NEGATIVE BRAND

CURRENCY

SUM TOTAL OF ALL CUSTOMER

EXPERIENCES ACROSS ALL

BRAND TOUCHPOINTS

FEELING OF NOT BEING

UNDERSTOOD

CONSUMER BRAND

PRINCIPLE DRIVER FOR CUSTOMER

DEFECTION

ACQUISITION MARKETING OVERVIEW

OUR CUSTOMER

CAMPAIGN # 1

CAMPAIGN # 2

CAMPAIGN # 3

CAMPAIGN #4

THE CURRENT APPROACH – “We have a campaign now who can we send it to?” THE CAMPAIGN A CUSTOMER RECEIVES IS BASED ON – Which campaign is being run – When it is run – How long since the last campaign contact NB: CUSTOMERS ARE BEING TARGETED WITH SALES MESSAGES

RETENTION MARKETING OVERVIEW

OUR CUSTOMER

CAMPAIGN # 1

CAMPAIGN # 2

CAMPAIGN # 3

CAMPAIGN # 4

THE NEW APPROACH: – “We react to customer actions and contact them when their actions indicate that we should” THE CAMPAIGN A CUSTOMER RECEIVES IS TYPICALLY BASED ON: – What they have done – What tickets they have bought NB: CUSTOMERS ARE ENGAGED IN A CONVERSATION RELEVANT TO WHAT THEY HAVE PURCHASED AND HOW THEY ARE INTERACTING WITH THE BRAND

ACQUISTION MESSAGING

RETENTION MESSAGING

PERSONALISED

CUSTOMER LEAD

RELEVANT

VALUE PROPOSITION

BRAND

BRAND MESSAGING vs BRAND EXPERIENCES

BRAND LEAD EXPERIENCE COLLABORATIVE EXPERIENCE

CONSUMER BACKLASH Unsubcribes

ü  Unlikes ü  Negative Word of

Mouth ü  Customer Defection

ü  Negative PR ü  Loss of Sales

BRAND EXPERIENCES vs CUSTOMER RETENTION

BRAND LEAD EXPERIENCE

COLLABORATIVE EXPERIENCE

TIME

CUSTOMER RETENTION

RELATIONSHIP MARKETING

1.  TRANSACTIONAL MARKETING Mainly relevant in low-priced, low-profit margin businesses e.g. retail / FMCG

2.  RELATIONSHIP MARKETING Extremely relevant in highly-competitive and high-profit margin markets e.g. financial services sector

MARKETING TYPES

WHAT IS RELATIONSHIP MARKETING?

SO…

RELATIONSHIP MARKETING IS A STRATEGY DESIGN TO

FOSTER CUSTOMER LOYALTY, INTERACTION AND LONG-

TERM ENGAGEMENT

PRINCIPLES OF RELATIONSHIP MARKETING

THE KEY

RELATIONSHIP BUYER

RELATIONSHIP CAMPAIGNS

CONSUMER BUYING TYPES

TRANSACTIONAL BEST DEAL FOCUSED

UNLOYAL FOCUSED ON TRUST

WANT RELIABLE PRODUCTS WANT TO BE RECOGNISED AND REMEMBERED “I WIN AND YOU WIN” MINDESET ORIENTATION

OUR DESIRED CUSTOMER

CONNECTING WITH THE CONSUMER

CUSTOMER RETENTION

RELATIONSHIP MARKETING

RELATIONSHIP BUYERS

+ BOOST IN PROFITS

DIGITAL CHANNELS RETENTION STRATEGY TARGET CUSTOMER BUSINESS OBJECTIVE

GOAL: GROW THE LTV

OF OUR CUSTOMER

SMS & USSD

WHY DO WE NEED IT?

TO ILLUSTRATE THE IMPACT OF CUSTOMER CHURN

LET’S TAKE A LOOK AT THE BUSINESS IMPLICATIONS

DIRECT LOSS

INDIRECT LOSS

CUSTOMER DEFECTION

BUSINESS IMPLICATIONS OF DEFECTION

1. DIRECT LOSS The impact of Customer Lifetime Value (CLV) on our mobile ticketing business: §  Assuming that the LTV of a customer is $3,600

and we lose 1 000 customers per year to the competition, the direct loss incurred by the company each year is $360,000 (assuming the LTV period = 12 months).

DIRECT LOSS

2. INDIRECT LOSS Refers to the “ripple effect” of the potential loss based on word of mouth: §  Assuming that just one of these defecting

customers with a LTV of $3,600 tells 12 people (each with an average circle of influence of 250) about a bad experience with our brand - and if only 1% of their network decide not to buy - this will result in a compounded $9 million loss in potential revenue each year.

INDIRECT LOSS

CONCEPTUAL FRAMEWORK FOR MODELLING CLV

COMPANY VALUE

CLV

CUSTOMER ACQUISITION

CUSTOMER RETENTION

CUSTOMER EXPANSION

CLV HELPS US TO UNDERSTAND: 1. How much did we pay to acquire customers from each marketing channel? 2. Did we acquire the best kind of customers? 3. How much should we spend on keeping them? MARKETING PROGRAMS

CUSTOMER RETENTION CAMPAIGN PROCESS

CUSTOMER DATA ANALYSIS

•  PURCHASE HISTORY •  BEHAVIOURS | WANTS |

NEEDS | ASPIRATIONS •  VALUE SEGMENTATION •  SEGMENTATION CHURN

OUTREACH PLANNING

•  COMMUNICATIONS / MESSAGING

•  CHANNEL STRATEGY

PREDICTIVE CHURN

MODELLING

•  CUSTOMER CHURN STAGES

•  ANTICIPATE CUSTOMER LOSS

•  DEFINED EVENTS / TRIGGERS

EXECUTION AND

REPORTING

•  CHURN REDUCTION RATIO

•  FINANCIAL IMPACT •  COST SAVINGS •  INCREASE IN CLV

:: THIS IS THE GAME CHANGER ::

RELATIONSHIP MARKETING SYSTEMS BACK OFFICE SYSTEMS CUSTOMER PROFILING DIGITAL CHANNELS CUSTOMER

VALUE SEGMENTATION HIGH | MEDIUM | LOW

SMS & USSD

CRM

BI

OEM

BSS

BLC

EXPERIENCE PERSONAS PREDICTIVE MODELLING

EVENTS / TRIGGERS

DATABASE

TYPES OF EVENTS / TRIGGERS

• EVENT PURCHASES • THRESHOLD PURCHASES

TRANSACTIONAL

• NEW REGISTRATIONS

• DORMANT ACCOUNTS

BEHAVIOURAL • BIRTHDAYS • GIFTING

CUSTOMER LIFE

• PURCHASE FREQUENCY

• PREDICTIVE MODELLING

ANALYTICAL

:: WELCOME TO “MARKETING AUTOMATION” ::

CUSTOMER ACQUISITION & RETENTION •  THE DIFFERENCES BETWEEN ACQUISITION & RETENTION •  THE CUSTOMER BRAND EXPERIENCE SPECTRUM •  THE DRIVERS OF CUSTOMER CHURN •  BRAND MESSAGES vs BRAND EXPERIENCES •  THE PRINCIPLES OF RELATIONSHIP MARKETING •  THE IMPACT OF CUSTOMER CHURN ON BUSINESS PROFITS •  EVENT BASED MARKETING TRIGGERS AND SYSTEMS

SECTION FOUR – WHAT HAVE WE LEARNT