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19 Wundermentals
from
Being Direct Making Advertising Pay
# 8 Create Relationships
Relationships continue to grow encounters
do not. The better the buyer seller
relationship, the greater the profit
The 60 30 10 Rule in DM
60% of the success of your direct response
marketing program will be selecting the right
audience and reaching them with your message.
30% of the success of your direct response
program will be making the best possible offer to
this highly selected audience.
10% of the success of your direct response
program will be the creative, and excellent
presentation.
Chairman:
Is it right for our firm?
Managing Director:
Will it help the business
run better?
Finance Head :
Is it good value?
Marketing Head
:
Will it help the sales
force?
Operations Manager:
Is it reliable?
User:
Is it easy to use?
Secretary:
Does my boss need it?
To summarise
Generating leads
Generating store trafc
Responding to competitive activity
Generating customer loyalty
Generating new customers/referrals
Improving sales force effciency
Improving customer service
Increasing customers average purchase amounts generating
higher sales
Announcing store hours/sales/new locations
Augmenting media advertising to top prospects and select
customers
If you want to do something, chances are, Direct Mail can help you
accomplish it. Effectively and efficiently.
Enlightened companies
remember information for
customers,
not about them."
20 225 Rule
In a HBR article, Cooper and Kaplan discovered that
the famous Pareto Principle of 20 80 Rule had to be
revised
A 20 225 Rule was actually operating : 20 % of
your customers were generating 225 % of profits.
The middle 70 % of your customers were hovering
around the break-even point, and 10 % of customers
were losing 125 % of profits !
Direct
TV
ITM/OTM
TV
Delivery Requirements
Radio
Outdoor
Media
Internet
Face to Face
Tailored Value Propositions
Direct Mail
Continuous Learning
CRM Processes
Referral
Segmentation
Lead generation
Customer investment Lead conversion Win back
Cross-sell / optimize
management
Brand Management and CRM are both big issues within the Marketing Dept, and within the company as a whole - but rarely in the same room, or with the same
people. But is this starting to change?
BRAND MANAGEMENT
Reflects to the customer what the
company and / or product stands for
CRM is harder
Values
Attitudes
Imagery
Words
Creative
coherence of product
features
tone and style of customer
contact - written or spoken
visual appearance
Delivers:
relationship strategy
who to contact
CRM
consistent product or
service proposition
delivered to the customer
over lifetime of relationship
Segment
Discerning Connoisseurs
Nature of communication
Offers, (3 for 2)
Distribution channels
Niche stores
Fashion club
Direct
Mail order
Superstores
CUSTOMER DEVELOPMENT
Savings Path
Relationship
stage
Events
Re mortgage Path
Contact rules
RETENTION
Prioritised
Segments
Adopting a CRM strategy requires the customer to be put at the centre of the organisation.
This will require changes to infrastructure, systems and processes, organisation and culture.
Such changes must be allowed to evolved over time - they cannot be implemented on a single big bang
From traditional
campaign driven
To CRM driven
ANALYSIS
HYPOTHESIS
Infra structure
CREATE
GENERIC VALUE
PROPOSITION
DELIVER
COMMUNICATE
TARGETED
VALUE
PROPOSITION
RESULTS
INFRA STRUCTURE
CAPABILITY
Business processes
Organisation
Systems
Skills
ACTION
Many so called CRM programmes are still focused around product campaigns. These will provide business benefit in terms of
improved efficiency, but might more correctly be described as better direct marketing
customer segmentation
customer propensity to purchase
products
key event data in customer
relationship
SA
LE
SC
AM
AP
AI
GN
S
APR
JUL
OCT
JAN
Customer 1
Customer 2
Customer 3
Customer 4
Customer 5
Customer .
FROM: Finding customers that are right for each product
Products: 1
Processes and systems infra structure broken down into three major stages
understand customer
segments, their value, and
decide ambitions are for
each
MARKETING FACTORY
focus on continuous
performance assessment to
optimise communications
CHANNEL
CUSTOMER
CONTACT
MANAGEMENT
create seamless customer
handling capability across
all channels
information driven sales
prompts to direct customer
dialogue
channels to co-ordinate
activities as required
CRM Strategy
Organisation
Business
Processes
Marketing/
Sales skills
Information
Technology
Brand Management
CRM
Strategy
Organisation
Business
Processes
Marketing/
Sales skills
Information
Technology
Concentrate on customers
more than prospects
Why retailers lose customers
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2.
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5.