February 2010

Marc RothSenior Marketing Manager

Lifecycle Marketing

In simple terms, life-cycle marketing is

about profiling a customer's relationships with a company or brand over time

in order for marketers to reach them more

effectively. In reality, life-cycle marketing can

be hard to pin down and harder still to

implement. To begin successfully putting

theory into action, marketers must capture

the right data to identify their profitable

customers and to understand their

behavior over time. Forrester

Research

Meeting Goals

• Understand the different stages of our client lifecycle• Review ideas and plans to improve CSI, increase and

optimize contact points• Review some initial data from analytics• Review next steps, synergies• Discuss/Brainstorm

Agenda• Overview of the Life Cycle

– Brand Awareness– Enrollment (Birth)– Ongoing Communication– Regular Interaction– Recalls– Renewal– Cancellation (Death)

• Contact Strategies• Next Steps

The Lifecycle Stages

Brand Awareness

New Client Enrolment

Communication from the Company

Interaction with the Company

Renewal/Retention Process

Passive Phase Active Phase Decision Phase

MarketingPublic Relations

Welcome letterNewslettersSurveys, offers

Information RequestsProblem ResolutionCar Recovery

Defector

Yes

Ambassador

No

Value Creation and Brand Management

Client-Driven Business Processes and Tools

Integration of Life Cycle Marketing Communication is key from enrollment to cancellation

Product Positioning & Competition, Communication & Public Relations. Brand Awareness / Notoriety, Recovery Rate

Customer Service, Quality Control, Communication, FCR

CRM / Customer Profiling, 1-1 Marketing and Communication Tools, Renewal and Customer Retention Processes, Metrics and Reporting Tools

Customer Experience Customer Experience

Client-driven Business Process and Tools

The ideal modelMONTH 1 2 3 4 5 6 7 8 9 10 11 12

All Customers (Consumer)Content

Welcome Package x

Concierge Information x x

Register your unit x x

2nd unit - BOGO or discount x x

Email Generating Contest Win Gas for a Year ($1,000)

x x x

Recovery Stories x x

Refer-a-Friend x x x

Renewal PreSell x x

Renewal Reminder x

Customer Survey xFormat

Email x x x x x xMail x Dealer x Marketing Purposes

Product Promotion x x x x

Relationship Managementx x

Marketing Data Collectionx x x x x

Consumer Insight x xCustomer Acquisition x x x x x

Brand Awareness

Sets up a warm client for a sale; establishes a positive company image and a need for the product and service• Plan for targeted front-facing customer awareness

– Current awareness in Quebec is high (74%)– Current awareness in Ontario is average (26%)

• Need to re-associate Boomerang/LoJack as a leader and expert in recovery, that we play a role in protection, security, common sense and lifestyle

• Ideally associate the wallet card with ongoing benefits– Concierge– Local business discounts/national chains

New Client Enrollment (Birth)

How we introduce a client to the Boomerang/LoJack experience

• POP messaging revision– Collateral survey• Competitive positioning- Pricing modeling• Touch point is handled by third party– Process at POP – length, satisfaction, knowledge– Survey results

Communication from the Company

Maintaining a dialogue and awareness (proactive)• Welcome package – tangibility, community, class• Confirmation/registration• Concierge• Newsletters – Testimonials, Concierge, Contests,

Engagement• Ad hoc news and recoveries• Surveys, offers• Referral program• Incremental unit pricing (buy one, get one 50% off)

Interaction with the Company

“Don’t call us, we’ll call you” (reactive)• Call monitoring and trending• On hold messaging• Scripting, greetings and close, tone• All customer facing employees trained• Recall/Quality control notices• Confirmation of information sheets• Invoicing

Renewal/Retention Process

Putting it to the test• New renewal process– AutoRenewal (Passive/Active), Regular Renewal (Active)• Form design• Concierge value-added service (measure)• Online element• Refer-a-friend • Loyalty program and offers (Baton Rouge)

Recall Notice

Make it a good thing• Thank you note “helping maintain our quality of

service”• 3 months free for inconvenience and displacement• Concierge• Contest entry?

Cancellation (Death)

“Until we meet again”• Passive or active• Win back offers• Letter of termination• Ongoing Improvement survey (why did you go?)• Previous client reactivation discount

Renewal Contact Strategies

Contract End Date

-30 Days 20 Days 5 Days 60 Days

Outbound call (efficiency?)

Renewal Form + Concierge Insert

Letter + Renewal Form “Final Notice”

Termination Notice (Win Back)

Automatic Cancellation in ERP System

Current Customer Contact Strategy - Canada

Observations and Next Steps

Initial observations to date

• Length does matter– -60 to -30 reduces number of renewing clients

• Segmentation will improve CSI– Some areas are more at risk than others

• AutoRenewal works– Less hassle, leads to 90% renewal

• Teach transferability– Most cancellations are for ‘new car/lease over’

Contract End Date

-35 Days 5 Days -15 Days 30 Days

Renewal Form (Second Notice)

Renewal Form (Final Notice)

Service Interruption Notice (Call to action)

Automatic Cancellation in ERP System

Proposed Renewal Contact Strategy

-60 Days

Renewal Form

NEW contact point

(mailing)

NEW contact point

(Winback call/message)

Mailing insert: Why you need a recovery device,

Concierge

Mailing insert: Why you need a recovery device,

Concierge

Mailing insert: Why you need a recovery device

Q2 LifeCycle Marketing DeliverablesActivity Contact

PointClient

SegmentLifeCycle

Stage Call to actionIncremental

Cost Cost CentreActions required to

reach ROIMetric to measure

Launch Date

New Termination Letter All Cancellation Call in number;

winback 0 None 0 Reactivations after letter

May 1 2010

Mailing -60 days before CED All Renewal Renew Contract 3500 Ops 1150 25

renewals at -60 to -30 period

versus previousMay 1 2010

Automobile Theft Awareness Month All Brand

Awareness Download booklet TBD Marketing 1130 n/a

Booklet downloads,

mini-site interaction,

contest entries

june 30 2010

Post Recall Thank you letter

All clients on recall during

periodRecall Survey 0 None 0 Survey

completionsMay 1 2010

Customer Newsletter Consumers Brand

Awareness Survey, contest 2000 Marketing 1130 0 survey, contest

entriesjune 1 2010

Collections LettersAll

oustanding payments

Collections Pay owing amount 0 None 0Successful collections payments

april 15 2010

Cancelled Client Survey

All terminated contracts

within period

Cancellation Complete Survey 0 None 0 Survey completions

may 15 2010

AutoBill Letter Corporate Clients

Renewal/ Collections

Renew and Pay Contract 0 None 0

Renewal rate change over

period, payments

outstanding

April 5 2010

Phases to come

• Phase 2 – Q3/Q4 2010– Identify ‘at risk’ segments with low renewal rates, add

additional contact points/educational materials/programs– Create/adjust targeted renewal strategy to communicate

based on segments– Evaluate all electronic contact points for effectiveness,

establish baseline to measure from– Evaluate online payments portal?

Thank you!