Presentation given to the Century Media Workshop - London, September 2007

1. Customer Retention How to use digital media & eCRM to get up close and personal with YOUR customers Thom Poole Jonathan Richards September 2007

3. Why us? A quick biography of Thom Poole & Jonathan Richards

6. Understanding integration Understanding how to integrate digital media & digital marketing

9. Message alignment Buy This buy this Look here Register here

10. Communications model A linear model of communication (based on Schramm (1995) and Shannon & Weaver (1962) – from Fill (1999))

14. Campaigns

15. Extreme branding

17. Integrated campaigns – the way to go

18. O2 Advert © Thom Poole 2005

24. Trust lifecycle Time Level of Trust Unaware Build Trust Confirm Trust Maintain Trust Register/Transact/Confirm Consider/Validation/Assess Browse/Search/Compare Trial Threshold Purchase Threshold Habit Threshold Untrust phase Extrinsic Intrinstic Recommendation © Poole (2005), adapted from Reynolds (2000)

26. Resource alignment - 1 Back-office personnel clearly recognise how they impact the customer experience. Everyone is a customer to someone else Back-office personnel detached from the customer Adopting the philosophy: “ T he customer ’s problem is my problem, and therefore, I will facilitate resolution ” “ N ot my problem ” syndrome Clear accountability and ownership of the customer Lack of ownership of the customer Measured based on customer success (e.g. satisfaction, retention, revenue, profitability, share of wallet) Measured on individual and departmental productivity (e.g. new revenue, calls answered) Rewarded for customer-centric behaviour. When deviation occurs outside of tolerance or a negative result occurs, coaching takes place to improve employees ’ future decision making Reprimanded for deviating from process Perform against policies and procedures, under-standing that they were designed to enable the customer to do business with you - n ot meant to be a customer obstacle. When exceptions occur, the objective is to determine how to meet the customer ’s need and facilitate meeting that need without placing the burden on the customer to figure it out Driven by script with no latitude to deviate on behalf of the customer All personnel are skilled in managing interpersonal relationships Not adept at managing interpersonal relationships Your people have the greatest influence on the customer experience Empower them to delight the customer People & structure Customer-Centric Requirements Realities Plaguing Non-Customer- Centric Companies Principle Resource

27. Resource alignment - 2 Customer ’s entire experience is managed holistically Customers managed on a transactional level (e.g., individual orders, inquiries, issues) Transparency/full disclosure provided to the customer Lack of information. Customer is not allowed to “l ook behind the curtain. ” Being easy to do business with. The customer is buffered from the intricacies of the organisation Organisation is difficult to do business with. Seams of the organisation are exposed to the customer Processes designed from the outside in to enable customers to do business with you Processes designed from the inside out, focused on intra-departmental efficiencies Be easy to do business with Process Customer-Centric Requirements Realities Plaguing Non-Customer- Centric Companies Principle Resource

28. Resource alignment - 3 Design the customer experience “b efore market” Products and services When launching a product or service, the customer experience is “d esigned ” in advance The customer experience is considered “a ftermarket ” in a reactive manner Needs of existing customers and improving their experiences are the primary driving forces Designed and launched based on features/ functions anticipated to capture “n ew revenue ” from “n ew customers” Implemented to enable customers to do business with you more effectively and efficiently Implemented with a focus on efficiency gains, resulting in obstacles for the customer Implemented to automate improved operating models and processes Implemented in response to business problems, automating existing bad practices Automate effective customer-focused practices Technology Customer-Centric Requirements Realities Plaguing Non-Customer- Centric Companies Principle Resource

32. Exercise 5

33. Exercise 4

34. Exercise 3

35. Exercise 2

36. Exercise 1

38. Take a break Back in 15 minutes

39. Practical methods For identifying and targeting the right customer

43. Types of CRM E-CRM Propensity Modelling System Complex ERM System CRM System Contact database Simple rotodex

47. Data collection Know what you know

52. Examples of customer data Company Individual

53. Examples of customer data

55. Examples of transactional data Problem resolution Sales opportunities

56. Examples of transactional data Accounting data

58. Examples of 3 rd party data

60. Examples of collecting data Web forms Workflow key tasks

67. Data mining - tools Advanced reporting tools – many software products have these built in. Business intelligence tools – have been expensive and hard to use but getting better. Data Mining specific – often little more that BI. Choice depends on how much you want the tool to do for you? Microsoft Excel – now has conditional formatting

68. Data mining - example

81. Break for Lunch Back promptly in an hour, please

82. Segmentation Dividing your market up

88. Plotting segments Margin Lucratives (1%) Risky Volume Drivers (2%) Demanding Savvies (9%) Moderates (5%) Occasional Savvies (13%) Risky Occasionals (33%) Safe Occasionals (29%) Safe Low Traders (6%) И Axes represent all customer average Bubble sizes represent segment size 3 6 9 12 150 400 Spend per Customer 4,000 Volume per Customer

90. The net worth of each segment 9% 19% 28% 5% 6% 11% 13% 4% 10% 33% 12% 16% 29% 8% 11% 6% 5% 40% 1% 9% 18% 2% 2% 2% Segment Size Spend Volume Safe Low Traders Safe Occasionals Risky Occasionals Occasional Savvies Moderates Demanding Savvies Risky Volume Drivers Margin Lucratives

93. Amazon

94. Example of e-CRM

98. e-CRM example 1 A workflow process kicks in to allocate the lead to the most appropriate sales resource

101. e-CRM example 2 The support team can view Simon’s cases against his record or their own ‘My CRM’

103. Exercise 15 Going Home Mark Knopfler

104. Exercise 14 Going Home Mark Knopfler

105. Exercise 13 Going Home Mark Knopfler

106. Exercise 12 Going Home Mark Knopfler

107. Exercise 11 Going Home Mark Knopfler

108. Exercise 10 Hymn by Barclay James Harvest

109. Exercise 9 Hymn by Barclay James Harvest

110. Exercise 8 Hymn by Barclay James Harvest

111. Exercise 7 Hymn by Barclay James Harvest

112. Exercise 6 Hymn by Barclay James Harvest

113. Exercise 5 Hymn by Barclay James Harvest

114. Exercise 4 Heartbeats by Jose Gonzalez

115. Exercise 3 Heartbeats by Jose Gonzalez

116. Exercise 2 Heartbeats by Jose Gonzalez

117. Exercise 1 Heartbeats by Jose Gonzalez

119. Testing Testing your methods, on- and offline

125. The anatomy of an AdWord Title 25 characters Description line 1 Description line 2 35 characters 35 characters

127. Exercise 10 Pra Manha Da Lata

128. Exercise 9 Pra Manha Da Lata

129. Exercise 8 Pra Manha Da Lata

130. Exercise 7 Pra Manha Da Lata

131. Exercise 6 Pra Manha Da Lata

132. Exercise 5 Pra Manha Da Lata

133. Exercise 4 Pra Manha Da Lata

134. Exercise 3

135. Exercise 2

136. Exercise 1

138. Let’s take a break Back in 15 minutes

139. Measuring your Return on Investment You are in business to make money

146. Forrester Research Web Analytics Providers

153. Quantifying the CLV

154. Integrating sales and financial

155. Integrating sales and financial

166. Thank you Thank you for your patience, interest and input. Thom Poole - [email_address] Jonathan Richards - [email_address]