customer centricity marketing masterclass in lisbon
TRANSCRIPT
Customer centric marke/ng
Which is the biggest reason for customers leaving you ?
Influenced by friends
Turned away by indifference
A;racted by compe//on
Indifference is everywhere • The bank -‐ > only when they want something from me
• The u/lity -‐> only when terms change • The insurance -‐> only when trying to up/cross-‐sell me, but no alert on policy renewals
• The airlines -‐> useless offers every week • The hotels -‐> even more useless offers weekly
Ask yourself; how many posi<ve interac<ons does it take to change a nega<ve percep<on or indifference? How many nega/ve interac/ons to reverse the percep/on?
Measure the customer experience and refer individual feedback to your database
-‐ Ask ques/ons -‐ Store sa/sfac/on score on individual customer
-‐ Use in segmenta/on
Top Tip
Dialogue and a lots of interac?vity
Connect, Tweet, talk, share – in as many channels as you care
Michael Leander > www.michaelleander.me > TwiAer: @michaelleander My secret email > [email protected]
Twi;er hashtag: #MCCM
Tomorrow’s marke?ng execu?ve is challenged. Seriously challenged.
Crucial to business. Yet incapable of mee?ng expecta?ons. There is too much to manage and not enough of
anything to do it well.
How big is the challenge?
5 4 1
In years, 50% of customers leave
In years, 50% of employees leave
In year, 50% of investors leave
Source: The Loyalty Effect, Frederick Reichheld
CUSTOMER BRAND LOYALTY
INTERNAL BRAND LOYALTY
INVESTOR BRAND LOYALTY
Meet Good ‘ol AIDA A = AAen<on (Awareness) I = Interest D = Desire
A = Ac<on
Meet the new AIDA A = AAen<on (Awareness) I = Interest D = Desire
E = Engagement
A = Ac<on
Engage me Shares & comments
Meet the new AIDA A = AAen<on (Awareness) I = Interest D = Desire
E = Engagement
A = Ac<on
Shares & comments
Eyeballs
Engage
$
Engage
Nurture
Re-‐ac<vate
Keeping anyone’s aAen<on is super difficult.
You need to “nudge” consistently.
And some?mes push hard.
Ques/on is how do you remain interes/ng to the customer? -‐ Frequency -‐ Relevancy -‐ Value add Days since last purchase
People forget easily Level of interest declines rapidly. With no communica<on even more and quicker
@shivsingh hAp://goingsocialnow.com
The purpose of a business is to create a customer who creates customers
Make it simple for customers to do what they want to do, “wherever”, whenever
SAS SUCKS
Member for 19 years
Wife, au pair & 3 children Transac/on
volume in excess of € 250.000
Average 8 flights pr. month with Star Alliance
Super connected
Strong voice in social space
Last flight 10 days ago
Life/me: Another 25 years
Food for thought about the customer experience
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• 70% of the customers buying decision are based on how they feel they are being treated
• 69% of the customers say, that emo/ons count for more than half of the total buying experience
• A good customer experience is told to 8 people • A bad customer experience is told to 22 people • It takes 10 good experiences to make up for one bad
Retain Customers
Target Marke/ng
Increase Spend & Frequency
Build Brand Loyalty
Build Customer Rela/onship
Differen/ate vs. Compe//on
Acquire New Customers
Gain Customer Insight
Increase Revenue
The (customer) experience maUers Buzz words don’t
Mission isn’t to embrace omnichannel at all cost,
but to enforce a greater emphasis on customer centricity – and –
find ways to op<mize marke<ng spend
Model for content, customiza/on and personaliza/on planning
Can your visitors FURDIC ? – Find – Understand – Relate – Do – Interact – Complete (transac<on)
Can your audience FURDIC ?
– Find > what are they looking for and why? – Understand > what do they need to understand ? – Relate > what might they relate to? – Do > what would they like to do? – Interact > how and when would they like to interact with us?
– Complete (transac<on) > what would they want to complete, or how would they like to transact?
25% omnichannel can work too
The considera<on is Where are you customers and what do they use each channel for? Where do you need to be? Will each channel provide the ROI you require? Which channels are merely serving as support to other channels?
What is your percep?on about your current aUribu?on?
Channel % spend Rate effec/veness 1 = low 5 = max
Solo or part of cross-‐channel?
Email marke<ng
Online adver<sing
Offline adver<sing
Direct mail / printed catalogues
Social media
What is your percep?on about your current aUribu?on?
Channel % spend Rate effec/veness 1 = low 5 = max
Solo or part of cross-‐channel?
% of customers who prefer this channel?
Sell, Educate, Nurture, Branding
Email marke<ng
Direct mail / printed catalogues
Social media
Pueng It All Together:
• An average of 19% of customers respond to one or more strategies • The overall reten<on rate goes up by 19.3% • Orders per year and average order size also increase significantly • These numbers are illustra<ve. You can create your own numbers using
tests and controls
% Sales or Percent % Change % Change % ChangeCustomers Customers in Orders/ Average
Strategy Affected Responding Retention Year Order1 Phone Calls 10% 10.00% 1.00% 1.00% 1.00%2 Personalized Letters 30% 5.00% 1.50% 1.50% 1.50%3 Personalized Email 20% 5.00% 1.00% 2.00% 4.00%4 Email Newsletters 20% 5.00% 1.00% 2.00% 4.00%5 Gold Member Services 5% 40.00% 2.00% 1.00% 2.00%6 Loyalty Program 40% 10.00% 4.00% 4.00% 4.00%7 Birthday Club 20% 5.00% 1.00% 4.00% 5.00%8 Shift to Multi Channel 20% 10.00% 2.00% 2.00% 2.00%9 Next Best Product 80% 5.00% 4.00% 4.00% 4.00%
10 Segment Strategies 60% 3.00% 1.80% 1.80% 1.80%All Customer Impact 30.5% 19.60% 19.30% 23.30% 29.30%
Breathe media agnos?c
Remember! Audience media preferences differ depending on purpose
Mul?channel marketers mul?ply ROMI by 5, 10, 15
Quality over quan?ty – specific audience over broadly defined
Looking for tall male
followers with dark hair,
between 25-‐35.
Omnichannel = Delivering a truly seamless experience across touch points, channels and
devices
What your customers expect
What your customers experience
Divorce your brand from this pathe?c stat
… and become part of this stat
(c) Michael Leander Nielsen, 2009
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Differen<ated Communica<on shows customer
care
OMNIPRESENCE MULTI-‐CHANNEL
be where your profitable customers and likely to
become profitable prospects are
What is the simple solu/on?
Market share or something else?
Share of Heart How do you earn it ?
How would you earn share of heart and how to measure it?
Earn it Measure it
Share of
Wallet
How do you measure Share of Wallet?
Share of Influence
How do you find influencers and how do you tag them?
Customer centricity means focus on the right customers
Create meaningful customer segments -‐ try to spot the unprofitable customers &
remember One Size Doesn’t Fit All
79.67%
24.82%15.83%
1.52%
-21.83%
-‐40.00%
-‐20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
5% 11% 28% 28% 28%
This 28% lost 22% of the bank’s profits!
Bank Customers by Profitability
Whom is your ideal customer?
• List characteris<cs of your ideal customer based on the customers you have
• Do Twin segmenta<on to iden<fy prospects
Share of Voice
Own The Experience from A to Z
THE CUSTOMER Experience
OMNICHANNEL
RELEVANCE EMPOWERMENT
Innova<on reflec<ng the <mes we are
living in
The balancing
act
Give everybody all they want or give the ones that maAer all they want
or give the ones that maAer what is
possible and reasonable
The value of the (customer)
experience is more important
than the channel mix
Create a customer vision/strategy
Customer
Knowledge
Customer Value
Customer Expecta<on
Balanced effort
Integra<on
Customer Experience
Customer Experience How do we ensure that customers get the same experience across all touch points? On which level must the experience be consistent across all channels?
Integra<on How do we share knowledge of our customers? How do we plan and implement customer ac<vi<es across the company? How close do we want to integrate ourselves with customers and partners?
Balanced effort How do we balance our efforts in rela<on to the customers value? What effect does that have in our ac<vi<es? How far will we go? How do we focus on loyalty, reten<on and cross sales?
Customer Expecta<ons When are the customer in touch with us and why? Which expecta<ons do they have and how do we live up to them? How do we communicate with the customers? What impact does customer sa<sfac<on have on revenue and profit?
Customer Value Which customers have which value? How do we measure it? Which customers will we aAract, retain or develop? Which service will we provide the defined segments?
Knowledge of Customers How do we collect knowledge of our customers In which touch points? How do we use this knowledge? How can we enrich and increase our own knowledge
Map the customer journey
Personalize and/or customize the experience push/pull
The right message to the right person at the right /me using the most effec/ve channel
Quick win in Portugal: Email marke/ng and then expand to marke/ng
automa/on Master personaliza?on and right
message to right person
Marke?ng automa?on drives ROI • Marke/ng
automa/on drives a 14.5 % increase in sales produc/vity
• and a 12.2 % reduc<on in marke<ng overhead
Even simple marke<ng automa<on based on behavior will increase marke<ng ROI
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Simple marke?ng automa?on Day 1 Day 3
Customer lifecycle marke?ng automa?on Differen?ated approach addresses different needs
1Pre Sale
2Sale
3 Past SalePre Departure
4Departure
5 Arrival 1. destination
6 Travel & experience
7 Comming home
8 Evaluation& Reliving
9 Next Pre Sale
Profiling and knowledge of where the customer is in the ”wheel” opens up for a coordinated and relevant dialogue before,
during and aler the ini?al sales transac?on
Transac<onal Behavioral Targeted
Example Travel
SMS/Email
Insurance Car rental
Excursions Car rental
Recommend to friends
A few examples
Customer Engagement
1:1 personalisa<on
Offers and campaigns –personalisa<on
Various methods to ease booking – new op<mized booking engine
Personalised offers based on past travel and booking history etc. Real <me pricing
Various personalised offers mainly aAemp<ng to upsell to passengers depending on P-‐type
Integra<on with ECM and Campaign automa<on for personalized email conversa<ons
Adver/sing on Facebook based on behavior on hotels.com
Great email engagement, but ..
Same email address, two different senders – received at the
same ?me
…. And should we men?on that hotels.com perceives their customers to be fools !
A few pointers on what your next steps could be
Profiling segment
Understand your customers and learn about their behavior
Unsilo your customer data
Silos
Make
You Suck
Move from sender to recipient control
How to work with profiling (B2B example)
BANT = Budget, Authority, Need, Timeline
Remember: No profiling results in very poor segmenta?on
Predict customers immediate needs, future needs, quality of past experiences
• The buying center DIO: decide, influence, obstruct • Map customer sa<sfac<on and leverage RFM & loyalty scoring in your communica<on • Know where the fric<on is, know where/when new opportuni<es arise
Refine customer profiles and invest smartly in building the best database • A good database will
increase your compe<<ve advantage
• Permission marke<ng implementa<on is a must
• Con/nuously appending knowledge to your customer profiles sets winners apart from losers
• Relevancy, <ming, precision targe<ng
What is essen?al for you to know about your target audience?
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Antudinal data -‐ Opinions -‐ Preferences -‐ Needs -‐ Desires
Interac/on data -‐ Offer/order -‐ Click behavior online -‐ Response behavior -‐ Referral behavior
Historic data • Orders • Transac<ons • Usage history • Payment history Orders
Personal data • AAributes • Characteris<cs • Misc. info • (Geo)demographics
Match content and offers to stages – use persona’s if relevant to your situa?on
Prerequisites > Profile insights > Content to match > Good database & marke<ng execu<on system > A clear objec<ve driven plan on what you want to accomplish
Understand buyer journey
Track, log and use behavior proac<vely
Bring transac<onal (€ data) into play
Master one channel at a <me
Be open to all channels, ROMI should be a decisive factor, not channel-‐fashion
