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IntegratingAllDirectMarketingChannelstoBuildCustomerLoyaltyABMWCaseStudyKayMadati,RelationshipMarketingManagerBMWArthurMiddletonHughes,VPforStrategicPlanningM\SDatabaseMarketingTheDMA84thAnnualMcCormickPlace,ChicagoTuesday,October30th200110:00AM–11:15AM1950-2000Brandsbuiltbymassadvertising1985-2000DatabaseMarketingarrived,butnotintegratedwithmassadvertising.1996-2000TheInternetarrived,butnotintegratedwithDBMormassadvertising2001BMWbringsthemalltogetherHowbrandmarketinghasevolvedBMWcustomerswant:ArealizationofthebrandpromisePerformance,safety,technology,innovationRecognitionServiceInformationConvenienceHelpfulnessBMWBuyersNotNecessarilyDrivenbyPricePersonalProfitfromPurchase= a(usefulnessofproduct) +b(perceivedbrandvalue) -c(moneycost) -d(timeorinconvenience)HowBMWBuyersMakePurchaseDecisionsConstructors
Peoplewhobuilddatabases
Merge/Purge,Hardware,SoftwareCreators
PeoplewhounderstandstrategyBuildloyaltyandrepeatsalesYouneedbothkinds!TwokindsofdatabasemarketingpeopleIn2000,BMWbuiltarobustcustomerandprospectdatabasedesignedto:ProvideacomprehensiveviewoftheautomotiveandfinancialservicesBMWcustomerDelivershortterm,incrementalrevenuethroughopportunisticmarketingprogramsIncreasecustomerloyaltythroughunderstandingandabilitytodeliverrelevant,timelycommunicationSecureBMW’splaceinitscustomers’livesbyidentifyingwhichhouseholdsaregoodtargetsforadditionalBMWpurchasesSituationAnalysisBMWnowhasacentralsystemofmeasurementTheBMWReportCentermonitorscommunicationsandresponsefromprospectsandcustomersMeasurementincludescostperresponseandcostpersaleBMWnowhastheabilitytoviewprospectsaswellcustomersinitsuniverseThisallowsBMWtoviewthefullshopper-ownercyclefromfirstpointofcontact,throughsaleandcrosssaleThenewmarketingdatabasecontainsabroadrangeofinformationontheBMWconsumerCampaign,response,andfinancialservicedata190appendedindividualandhouseholddatapointsBMWSituationIIAllowingafullviewoftheBMWcustomerdeliverssmartertargetingandprofit-generatingupsellandcrosssellopportunitiesWhichvehicleownersarebesttargetsforcreditcards?HowcanBMWcardownersincreasethelifetimevalueofthevehicleowners?Wherearethepocketsofourmostprofitablecustomers?WhichcustomerswilldeliveradditionalrevenuethroughfinancialservicesproductsaftertheyhavedisposedoftheirBMW?BMWSituationIIIImprovetheeffectivenessofmarketingprogramsintheyears2001–2003inorderto:ReturntoBMWthecostofthedatabasebuildPayfordatabasemaintenancegoingforwardIncreasetherevenuepercustomerovertimeIncreasetheprofitpercustomerIncreasethelifetimevalueofthecombinedBMWautomobileandfinancialservicescustomerBMWDatabaseMarketingGoalsConsistentmeasurementandenhancementofBMWmarketingprogramsAbilitytoprioritizeprospectsandcustomersbasedontheirlikelihoodtobuyIdentificationof“l(fā)owhangingfruit”–programsthatcanbequicklyimplementedtogeneraterevenueintheshorttermRefinementofcustomercommunicationsTestingresultsagainstControlGroupsHowBMWmeasuresreturnoninvestmentControlgroupsmeasuretheeffectivenessofeachprogramNon-mailedgroupsthataremeasuredagainstthemailedgroupsReportsontheBMWReportCenterprovideaconsistentformofmeasurementCostperlead,responseandsalemeasurementCross-penetrationofproductpurchasesControlsandMeasurementIncreasedcommunicationeffectivenessIntegrateddatabaseusedbyallgroupsIncreasedefficiency––TherightinformationtotherightcustomerattherighttimeReducedcommunicationexpenseFewerpiecesmailedwithhighereffectivenessIncreasedcustomerparticipationIncreasedcustomersatisfactionIncreasedcorporateandcenterprofitsAhigherlevelofdatafromandaboutBMWcustomersBenefitstoBMWRelationshipMarketingStrategyAllprogramsarebuiltonastate-of-the-artcustomerrelationshipmanagementdatabasewhichprovides:MoreinformationonownersandprospectsthanBMWhaseverassembledbeforePowerfultoolstosupportBMWloyaltyandprospectconversionprogramsAutomatedcommunicationthatsupportstheOwnerExperienceTheDatabaseIncreasecustomerloyaltyIncreaseprospectconversiontosalesratioIncreasevehiclesalesthroughexistingcustomersMaintainexistingBMWhouseholdrecordsKeepcommunicationcostsdownwhileincreasingeffectivenessDevelopaconsistentprocessofprogrammeasurement2001DatabaseMarketingGoalsUsethemarketingdatabasetorealizeacommunicationsdialoguewithbothourprospectsandourcustomersSystematicuseofcustomizedinformationtoattractandretaincustomersFacilitatemutuallybeneficialandrelevantinformationexchangesIncreaseownerloyaltyandcustomeracquisitionratesStrengthenBMWbrandperceptionattheindividualcustomerlevelBMWRelationshipMarketingObjectivesConsumerCommunicationsWelcomeKitLoyaltyCommunicationsProspectPrioritization/ExtendingtheDialogueBMWMagazineEnhancementsBMWOwner’sCircleFinancialServicesProgramsCreditCard&BankingCustomerAcquisitionCrossSellandUpSellMarketingOpportunistic“QuickWin”ProgramsCoreCommunicationsProgramTheOwnerWelcomeKitAstatickitInformationonBMW,theBrandBMW,theCompanyBMW,theProductsItwelcomedpeopletothebrand,butofferednorealtasteoftheBMWExperienceTheoldwelcomekitwas:Apersonalwelcomekit–thatownersrealizewascreatedjustforthemItarriveswithinthefirst30daysItisadialogueopener,aninvitationtotheBMWexperiencethatextendsoverafullyearEachofthekitpiecesenhanceyourperceptionoftheBMWBrandandtheExperienceMultiplecallstoactionwhichleadyoudeeperintotheExperienceItinherentlyfostersthecollectionofinformationneededforfurtherrelationshipdialogueThenewBMWwelcomekitWeeklyfeedofnewownersfromthedatabaseRapidrecordcleanupformailingWeeklyfulfillmentofcorrectednames,addressesanddatatothewelcomekitprogramMonthlymaintenanceofthedatabasewhichsupportsallownerandprospectcommunicationsTheDatabaseSupportstheWelcomeKitTask:ProvideindividualcustomerdataforpersonalizedwelcomekitfulfillmentStrategy:ProvidenewownerpersonalizedfulfillmentinformationonaweeklybasisRecoverkeyinformationrequestedMaintainownerfilesbasedoncollectedinformationforfutureprogramsIdentifycustomersbymodel,financialstatus,andpreparatorysegmentation(i.e.loyalty,activity,etc.)WelcomeKitFulfillmentProcessLoyaltyandOwnerCommunicationsBMWcustomersarefiercelyloyaltotheirbrandLoyaltycanbemeasured:itistherepurchaserateSuccessfulloyaltyisatwowaystreetCustomerloyaltycanbestrengthenedbyrelevantpersonalcommunicationsBMWLoyaltyinitiativescovertheentireownershipexperienceWelcomeKit,Newsletters,BMWMagazine,MultipleVehicleOwnerprogramsTheLoyaltySituationIncreaseBMWprofitsthrough:IncreasedrepurchasebyexistingownersIncreasingthenumberofBMW’’sperhouseholdIncreasedsalesofBMWpreviouslyownedvehiclesIncreaseduse/purchaseofBMWFSproductsEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:OwnerswhogetthecommunicationsOwnerCommunicationGoalsGeneralGoals:ImmersionintheBMWExperiencePromotionofOwner’’sCirclePurchaseofBMWaccessoriesTo3and4yearBMWowners.Goals:IncreasetherepurchaserateMultipleBMWsineachhouseholdWidespreaduseofBMWFinancialServicesproductsTonewBMWowners,Goals:PurchaseBMWfinancialservicesproductsCaptureinformationabouttheirpreferences,lifestyles,automobileinterests,etc.usefulforfurtherdialogLoyaltyBuildingNewslettersOngoingcollectionofnewsandinformationofinteresttoBMWownersOwnersurveystodeterminepreferencesfor:News,information,andtopicsCommunicationChannel(emailorprint)FrequencyBeginwithaprintednewslettertogatheremailaddressesMovetoemailnewslettersasquicklyaspossibleMultipleofferstogenerateownerresponsePromotetheuseofOwner’’sCircleNewsletterStrategyNewproductsBMWawardsSportsstarsthatdriveBMWsRatingsbyleadingcarmagazinesWhytheBMWenginesaresuperiorThehistoryofBMWEventcalendarMagazinereprintsSponsorshipsBMWBrandValuesRoadsideAssistanceServicingrequirementsBMWInsuranceBMWcreditcardsBMWAccessoriesDrivingEventsBMWtradeinpricesBMWOwnerClubsOwner’sCircleWorldnewsfeaturingBMWNewsletterContentBMWMagazineBMWpublishesahigh-valuemagazinetoitsownersinthefirsttwoyearsaftertheirpurchaseBecauseofitsuniversaldistribution,themagazinecanbemorethanamagazineItcanbeadatacollectiontoolforfurtherpersonalizedcommunicationsMagazineStrategy-BeforeCaptureadditionalinformationoncustomersEmailAddressesPurchaseIntentions:ownersidentifyingthemselvesasenteringthepurchasecycleAllowBMWownerstopurchasemerchandiseProvidedirectiontoBMWOnlineStoreforpurchasePushregistrationonOwner’sCircleEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:OwnerswhogetthecommunicationsMagazineStrategyTodayExtendingtheDialogue–ProspectMessagesIncreaseprospectconversiontosellmoreBMWautomobilesProvideasteadyflowof““qualified”leadstoBMWCentersMakecommunicationsinteractiveContinuallyimprovetheconversionratesbybetterprospectingMeasuretheconversionratebyCenter,Region,ProspectLifestyle,IncomeGoalsoftheProspectManagementSystemProspectsdevelopedfromallcontactsources:Telephone,DirectMail,AutoShows,Events,InternetRapidlyqualifiedandscoredCentersreceivequalifiedleadselectronicallywithin48hoursofreceiptProspectsgetBMWmessagewithin48hoursEveryleadtrackedelectronically,withdaily,weekly,&monthlyreportsforBMWmanagementonthewebAutomatedDatabaseProcessesScoringmodelsforincomingprospectrequestsdeterminepriorityFocusonpriorityA&BprospectsMovingtolowerprioritiesasthesystemsprovesitselfFullyintegratedcreativeimplementationinbothelectronicandpapermediaaswellaseventsTestscoringmodelsagainstanticipatedresponseandadjustasneededUtilizea5%controlgroupforaperiodofoneyearforreportingcomparisonsTestingandImplementationStrategySalesResponseToelectronicvs.paperPredeterminedvs.RelationalOffersandincentivesModelingsuccess%prospectconversion(historical)MediapreferenceautomatedsystemCostofprogramCostofsalesMeasurementsoftheProspectProgramMeasuringsuccessthroughthedealersScoredleadssenttoeachdealerConversionsaremeasuredmonthlyEachdealerconversationratiocalculatedProgramsuccessmeasuredbycomparingdealertodealerconversionratioDealer,Market,RegionandNationalaverageconversionratioscreatemeasurablebenchmarksAboveaveragedealersmanagetheirleadsbetterDirectMailandE-mailintegratedcommunicationplanAlternatingcontentdeliverymediumsEachreinforcingtheonethatcamebeforeitUseofdatabaseinformationtodrivecustomizationandrelevanceEachcommunicationintroducinganewpieceoftheBMWExperienceAllcommunicationstieintowebactivitiesIntegrationwithoff-lineandonlinemarketingactivitiesProspectsgiventheopportunitytoopt-outatanypointProspectsremovedfromprogramiftheypurchaseavehicleProspectProgramCommunicationsStrategyImmerseandinvitetheprospectintotheBMWExperienceReinforcetheinitialcontactwithBMWEducateastothedepthoftheBrandProductsandServicesPointtheprospecttowardsatestdriveandthedealerReinforcecoremarketingcommunicationobjectivesabout:BrandValuesBrandHeritageProductattributesTheBMWOwnershipExperienceProgramCommunicationsObjectivesNewproductsBMWintheNewsBMWTechnologyandInnovationBMWSafetyThehistoryofBMWandBMWBrandValuesEventinvitationsTestdriveincentivesBMWgiftsMagazinereprintsBMWFinancialServicesproductsProgramContentObjectivesSellmorecarsby:ImmediateScoringofProspectsImmediateelectronicCenternotificationofleadsImmediatecommunicationswiththeprospectContinuallyengagethecustomerintheExperienceProvidemoreinformationonthedepthoftheBrandReducethecostpercarsoldProvideManagementwithaccurate&timelyknowledgeoftheprospectandsalesprocessIncreasetheoveralleffectivenessoffutureprospectingprogramsbylearningfromthisoneProspectSystemBenefitsQuickwins:XfactorprogramsTheBMWDatabaseoffersahugeopportunitytoutilizeinformationtorefineBMWprogramsXFactorprogramsarebuiltondatamining,anddeliver:HighlyeffectivemarketingprogramsIncrementalrevenueopportunitiesLowcostpersaleIncreasedcustomer/prospectcontactandsatisfactionXFactorSituationTheLoyaltyandProspectPrograms,combinedwiththedatabase,offergreatpotentialforcreative,interactiveXfactorprograms:ContestsProgramsforWomen/MinoritiesSpecialEventsReferralProgramsCertifiedPreviouslyOwnedCarsSecondBMWsineveryhomeLifestyleProgramsCongratulatoryMailingsto3+BMWOwnersXFactorInitiativesPlusimprovedreporting,querydevelopmentandahalfdozennewideastobedevelopedandimplementedduringtheyearXFactor:somethingneweveryquarterIdentifywaystobuildrelationshipswithfemaleowners:BringthemtotheBrand,andkeepthemlongerAppealtotheiruniqueneedsRecognizethepurchasingpowerandinfluencethatautomotivemarketerstypicallyignoreProvidetoolsthatreducepre-dealervisitanxietyTailoredcommunicationsthathighlightwhatwomenarelookingforLivechatsupportbyfemalesDevelopanetworkoffemalesalesrepsX1Women’sProgramIdentifyhouseholdsthatareprimeprospectstopurchaseasecondBMWAnalyzemultiplepurchasehouseholdsTargetgroupsmostlikelytopurchaseaCPOvehicleHouseholdswithteenagersoryoungadultsIdentifyseasonality––graduation,etc.TesttheprogramoncurrentBMWowners,thenrollouttoprospectsX2:CertifiedPreviouslyOwnedProgramIdentifythosecurrentownerswhoaremostlikelytopurchaseanew7SeriesBMWInvitethesespecialpeopletobeamongasmallgroupwhoareallowedtopreviewthenew7seriesAppealtotheirappreciationofinclusionbyaskingfortheirfeedbackandopinionAllowthemtobeamongthefirsttotestdriveNotifythemperiodicallyofthestatusofthevehicleX3:Series7LaunchIdentifythosecurrentownerswhoaremostlikelytopurchasetheMINICreateauniquelifestylemessagetotheseownersAppealtotheearlyadapterFocusonactivelifestylesGetthemtopreviewonthewebandoptintomarketingmessagesX4:MiniLaunchDevelopaprogramthatuniquelyappealstotheBMWownerCommunicatethepersonalityofthebrandReinforcetherelationshipthattheBMWownerhaswiththeircarAttheanniversaryofpurchase,sendane-cardtoownersDirectthemtoamicrositetogetane-birthdaygiftX5:BirthdayCardsDatabaseprovidesthecentralfocusfor:OwnerloyaltycommunicationprogramsProspectcommunicationsOpportunistic“QuickWin””ProgramsMeasurementofsuccessBuildingBMWBrandLoyaltySummary:BMWhasputitalltogether謝謝1月月-2316:41:2116:4116:411月月-231月月-2316:4116:4116:41:211月-231月-2316:41:212023/1/616:41:219、靜靜夜夜四四無無鄰鄰,,荒荒居居舊舊業(yè)業(yè)貧貧。。。。1月月-231月月-23Friday,January6,202310、雨中中黃葉葉樹,,燈下下白頭頭人。。。16:41:2116:41:2116:411/6/20234:41:21PM11、以我獨(dú)獨(dú)沈久,,愧君相相見頻。。。1月-2316:41:2116:41Jan-2306-Jan-2312、故人江海別別,幾度隔山山川。。16:41:2116:41:2116:41Friday,January6,202313、乍乍見見翻翻疑疑夢(mèng)夢(mèng),,相相悲悲各各問問年年。。。。1月月-231月月-2316:41:2116:41:21January6,202314、他鄉(xiāng)鄉(xiāng)生白白發(fā),,舊國(guó)國(guó)見青青山。。。06一一月月20234:41:21下下午16:41:211月-2315、比不了得就就不比,得不不到的就不要要。。。一月234:41下下午1月-2316:41January6,202316、行動(dòng)出成果果,工作出財(cái)財(cái)富。。2023/1/616:41:2116:41:2106January202317、做做前前,,能能夠夠環(huán)環(huán)視視四四周周;;做做時(shí)時(shí),,你你只只能能或或者者最最好好沿沿著著以以腳腳為為起起點(diǎn)點(diǎn)的的射射線線向向前前。。。。4:41:21下下午午4:41下下午午16:41:211月月-239、沒有失失敗,只只有暫時(shí)時(shí)停止成成功!。。1月-231月-23F
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