3. Introduction Founded in 2001 in Paris, opened a Moscow office in 2008 40 collaborators, consultants, statisticians & web developers From analytical CRM to operational CRM : from web & data mining to development of « bespoke » CRM solutions In-depth multi-sectorial knowledge Customer Relationship universe « Inbox is a consulting firm specialized in customers marketing : analysis of behaviors, design of relational action plans, reset of loyalty program, … from the analysis of customers' data and their relationship with the company, we build and develop tools to get a better knowledge and understanding of their habits and then do influence their relationship with the Company »
4. What we do ? Data management : to manage a 360°customer vision Knowledge : to understand the customer behavior Animation : to influence the customer behavior Relational Marketing : to interact with each customer Optimization : to maximize the Return on Investment Activities steering : to deliver the relevant marketing information Consulting : to bring relevant & operational recommendations Training : to develop & increase your know-how
6. A new context arose,… so new? Household expenditures at constant prices Private consumption has been one of the main pillars of Russian GDP growth over the last 10 years. And should continue to be, even at lower path,… BRIC Countries - % of growth
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8. 70% of purchase decision making process remains at the point of sales(Inter-Act System – 2008) Issuance of “discount card”: Discount first & last BUT: Value destructive Absence of differentiation
10. Customer Relationship Management What for? Me too or Strategic pillar? Training, job description Action to manage, organize the links between different persons who do exchange – positively or negatively – under commercial terms goods and/or services within constraints (budgetary, human resources, commercial pressure) which lead to necessary arbitration and then, selection and targeting DEFINITION Which resource allocations for which results? Where do I stand today? Perceived image Alone or in partnership
11. 10 Basic Rules of Success Clearly define from the beginning realistic targets (industry, sector,…) Build a Business Case and keep it up-to-date Obtain and keep the support of the General Management Execute quickly the project to obtain quick results Limit and control the perimeter of the CRM project Be aware of change management Get involved the users throughout the project Drive (manage) strictly the project Get it properly integrated into your environment Measure the results with agreed and shared K.P.I
12. Key advantages of DB set-up Margin analysis per distribution channel Customers expectations & preferences Geo-marketing (competitive analysis) Cost of recruitment or retention of customers In-depth customers’ knowledge, history of the relations Definition of price policy Client & Customer Segmentation Profitability & Efficiency of DM programs Individualization of the client knowledge Individualization of the offers Market trends Customer expectation Sales history per products categories Demand, volume, profitability simulations Efficiency of the sales process Customer satisfaction (follow-up,…)
14. From the Funnel… …to Vortex High Capital Intensity High Content Intensity Generate Loyalty Optimize processes Increase value performance Reduce costs Marketing Marketing Sales “Tell me what you need, I’ll tell you what I want” “Tell me what you want, I’ll tell you what you need”
16. A different focus, even though… “Don’t wonder what your country can do for you, but what you can do for your country” JFK “Don’t wonder what your customer can do for you, but what you can do for your customer” JM Lehu … we’re convinced to BE consumer focus. Indeed, there is a constant need to listen, understand, engage so as to build a dialogue.
17. A different strategy to agree upon,… It understates a strategy of content instead of advertising or advertainment The content of the communication overcomes the direct universe of the brand and proposes the consumer to get free access to a world – the brand is the “pass”
18. Your mission : to build proximity A great proximity with the customer is A KEY axis of differentiation vs competitors - it aims at creating a link based on mutual capability to: Listen, exchange, share Thank, punish, reward Federate, value, entertain Because a LOYAL customer is WORTH it Average length of customer relationship (years) PHS CRM - US - 2008
19. Your target: to collect DATA Any point of contact with the customer is a : Any person in contact with the customer is a : Consolidation of the data intocommondatabase De-duplication of the contacts (recommended) DATA COLLECTION POINT (DCP) DATA COLLECTION PROMOTER (DCP) Reporting Interface Retained Customers Program New Customer Cultivation Program
20. Your weapon: CRM analytics tools 100,000 70,000 28,000 The best potential of results and R.O.I Prospects for special offer, new offer,…
21. Ex : Performance of a score (1/2) Rate of subscription of a loan by cluster of score Rate of subscription Cluster of score of subscription
22. Ex : Performance of a score (2/2) Concentration curb of appeal score to consumption loan % cumulative buyers % cumulative client base
24. Context & targets Context: Ready-to-wear chain, operating through 140 outletsis looking at developing its profitability relying on a strategy based upon relational marketing An existing loyalty program gathering up to 300 000 cardholdersmore or less active Targets: The chain wish to: Develop the sales Invest while controlling discount Improve the loyalty of the customers Using: Performing loyalty program Customer knowledge Pro-active multi-channel communication
25. Project milestones Audit of the customer behaviour Identification of performance levers Creation of a new loyalty program Economic analysis & impact of the different proposed scenario Choice of the program Implementation Launch Set-up of a marketing database Implementation of the reporting tools Design of the actions plan Input of scores assessing return Input of the tool of return simulation Implementation of the e-CRM management program Ad’hoc surveys through online questionaires to assess their expectations and satisfactions
26. To know & to act Relational Strategy to drive the commercial relation Segmentation to know Price Elasticity Churn (score) to prevent from possible departure Sensitivity to private sales Client Prescription Appeal Penetration Sensitivity to campaigns Appeal & risk Fashion Appeal Email / Internet Appeal Product renewal Appeal
27. The choice of proximity Accompany the customer in its relation with the chain with the aim to: Increase the penetration of chain Assist its loyalty pattern in the course of the time Monitor budget constraints (ROI, discounts) Through: Campaigns with coupons optimizing the usage of discount and R.O.I Development of qualitative relation based on advices, recommendations with respect to its profile and preferences (without discount) Using Emailing, S.M.S alerts – internet site – and occasionally mailing For example, the relational actions plan was covering the following steps: Newsletter, Special offers constantly individualized Alerts Birthday celebration Private shopper (by appointment) Private Web Space – appearing as the summary of the customer’s relations with the chain – History of purchases Collection of points (if any) Recommendations upon next purchases Invitation to events or collection shows Pre-set list of items to be checked in shop
29. A relation with the product Regular information and special offers: Best of : every month (without offer) Products renewal list in accordance with date of last purchase – focus on product – limited discount on specific items: Shirts Suits Tee shirt (before holidays) Cross selling (daily offer + ticket) Offers with discount on complementary offers to last purchases Information without discount on complementary products to last purchases Special offers on forecasted overstock => does help the management of possible overstock situation by issuing special offers at lower discount than standard SO
31. After a year, the activation brought… Rather low increase in the average basket (+3,3%) but a more significant one in average turnover (+ 16,2%) as the customer visited the chain more ofter Overall turnover of loyal customer grew by 43%
32. Make the C.R profitable A MUST Before, to develop the loyalty meant: Heavy investments without necessarily R.O.I measurement Choice in IT solutions without prior definition of the strategy Nowadays, one signe will : MAKE PROFITABLE, meaning: To develop the turnover and reduce the churn To drop the commercial costs and optimize the processes To achieve so, you need to : Know, Act and Measure
33. The efficiency at hand Where Share of profit Who Share of Mind How Share of Heart The more I buy, the more I get! Greatest effectiveness They know what I need! They take care of me!
34. And tomorrow, the engine of knowledge… The knowledge calls the knowledge which calls the steering: Knowledge of their customers is a major stake in commercial development “Quality" of their customers & the marketing campaigns become a growth driver of the turnover as well as an excellent means to pilot this last one This thirst of knowledge, relieved by a certain number of actors, tends to measure very exactly future acts disregarding the " behavioral noise " related to – this isn’t a science At last, sharing the information remains today difficult in many companies Reading different from the same figure Different sizes (formats) of reporting Difficulties to obtain or interpret results (profits) …
35. A context where access to information is getting faster,… really faster The emergence of cost effective and interactive channels engaged the industrialization of the customer relation. Even though, this need isn’t fully shared by any company because of: Cultural barriers R.O. I It runs ahead. And current blocking situations met in companies, are mainly due to difficulty for people, departments, teams to work together on a project that commits the company as a whole
36. Thank you for your attention I’m pleased to answer your questions
