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IntegratingAllDirectMarketingChannelstoBuildCustomerLoyaltyABMWCaseStudyKayMadati,RelationshipMarketingManagerBMWArthurMiddletonHughes,VPforStrategicPlanningM\SDatabaseMarketingTheDMA84thAnnualMcCormickPlace,ChicagoTuesday,October30th200110:00AM–11:15AM第一頁,共五十二頁。1950-2000Brandsbuiltbymassadvertising1985-2000DatabaseMarketingarrived,butnotintegratedwithmassadvertising.1996-2000TheInternetarrived,butnotintegratedwithDBMormassadvertising2001BMWbringsthemalltogetherHowbrandmarketinghasevolved第二頁,共五十二頁。BMWcustomerswant:ArealizationofthebrandpromisePerformance,safety,technology,innovationRecognitionServiceInformationConvenienceHelpfulnessBMWBuyersNotNecessarilyDrivenbyPrice第三頁,共五十二頁。PersonalProfitfromPurchase= a(usefulnessofproduct) +b(perceivedbrandvalue) -c(moneycost) -d(timeorinconvenience)HowBMWBuyersMakePurchaseDecisions第四頁,共五十二頁。Constructors
Peoplewhobuilddatabases
Merge/Purge,Hardware,SoftwareCreators
PeoplewhounderstandstrategyBuildloyaltyandrepeatsalesYouneedbothkinds!Twokindsofdatabasemarketingpeople第五頁,共五十二頁。In2000,BMWbuiltarobustcustomerandprospectdatabasedesignedto:ProvideacomprehensiveviewoftheautomotiveandfinancialservicesBMWcustomerDelivershortterm,incrementalrevenuethroughopportunisticmarketingprogramsIncreasecustomerloyaltythroughunderstandingandabilitytodeliverrelevant,timelycommunicationSecureBMW’splaceinitscustomers’livesbyidentifyingwhichhouseholdsaregoodtargetsforadditionalBMWpurchasesSituationAnalysis第六頁,共五十二頁。BMWnowhasacentralsystemofmeasurementTheBMWReportCentermonitorscommunicationsandresponsefromprospectsandcustomersMeasurementincludescostperresponseandcostpersaleBMWnowhastheabilitytoviewprospectsaswellcustomersinitsuniverseThisallowsBMWtoviewthefullshopper-ownercyclefromfirstpointofcontact,throughsaleandcrosssaleThenewmarketingdatabasecontainsabroadrangeofinformationontheBMWconsumerCampaign,response,andfinancialservicedata190appendedindividualandhouseholddatapointsBMWSituationII第七頁,共五十二頁。AllowingafullviewoftheBMWcustomerdeliverssmartertargetingandprofit-generatingupsellandcrosssellopportunitiesWhichvehicleownersarebesttargetsforcreditcards?HowcanBMWcardownersincreasethelifetimevalueofthevehicleowners?Wherearethepocketsofourmostprofitablecustomers?WhichcustomerswilldeliveradditionalrevenuethroughfinancialservicesproductsaftertheyhavedisposedoftheirBMW?BMWSituationIII第八頁,共五十二頁。Improvetheeffectivenessofmarketingprogramsintheyears2001–2003inorderto:ReturntoBMWthecostofthedatabasebuildPayfordatabasemaintenancegoingforwardIncreasetherevenuepercustomerovertimeIncreasetheprofitpercustomerIncreasethelifetimevalueofthecombinedBMWautomobileandfinancialservicescustomerBMWDatabaseMarketingGoals第九頁,共五十二頁。ConsistentmeasurementandenhancementofBMWmarketingprogramsAbilitytoprioritizeprospectsandcustomersbasedontheirlikelihoodtobuyIdentificationof“l(fā)owhangingfruit”–programsthatcanbequicklyimplementedtogeneraterevenueintheshorttermRefinementofcustomercommunicationsTestingresultsagainstControlGroupsHowBMWmeasuresreturnoninvestment第十頁,共五十二頁。ControlgroupsmeasuretheeffectivenessofeachprogramNon-mailedgroupsthataremeasuredagainstthemailedgroupsReportsontheBMWReportCenterprovideaconsistentformofmeasurementCostperlead,responseandsalemeasurementCross-penetrationofproductpurchasesControlsandMeasurement第十一頁,共五十二頁。IncreasedcommunicationeffectivenessIntegrateddatabaseusedbyallgroupsIncreasedefficiency–TherightinformationtotherightcustomerattherighttimeReducedcommunicationexpenseFewerpiecesmailedwithhighereffectivenessIncreasedcustomerparticipationIncreasedcustomersatisfactionIncreasedcorporateandcenterprofitsAhigherlevelofdatafromandaboutBMWcustomersBenefitstoBMW第十二頁,共五十二頁。RelationshipMarketingStrategy第十三頁,共五十二頁。Allprogramsarebuiltonastate-of-the-artcustomerrelationshipmanagementdatabasewhichprovides:MoreinformationonownersandprospectsthanBMWhaseverassembledbeforePowerfultoolstosupportBMWloyaltyandprospectconversionprogramsAutomatedcommunicationthatsupportstheOwnerExperienceTheDatabase第十四頁,共五十二頁。IncreasecustomerloyaltyIncreaseprospectconversiontosalesratioIncreasevehiclesalesthroughexistingcustomersMaintainexistingBMWhouseholdrecordsKeepcommunicationcostsdownwhileincreasingeffectivenessDevelopaconsistentprocessofprogrammeasurement2001DatabaseMarketingGoals第十五頁,共五十二頁。UsethemarketingdatabasetorealizeacommunicationsdialoguewithbothourprospectsandourcustomersSystematicuseofcustomizedinformationtoattractandretaincustomersFacilitatemutuallybeneficialandrelevantinformationexchangesIncreaseownerloyaltyandcustomeracquisitionratesStrengthenBMWbrandperceptionattheindividualcustomerlevelBMWRelationshipMarketingObjectives第十六頁,共五十二頁。ConsumerCommunicationsWelcomeKitLoyaltyCommunicationsProspectPrioritization/ExtendingtheDialogueBMWMagazineEnhancementsBMWOwner’sCircleFinancialServicesProgramsCreditCard&BankingCustomerAcquisitionCrossSellandUpSellMarketingOpportunistic“QuickWin”ProgramsCoreCommunicationsProgram第十七頁,共五十二頁。TheOwnerWelcomeKit第十八頁,共五十二頁。AstatickitInformationonBMW,theBrandBMW,theCompanyBMW,theProductsItwelcomedpeopletothebrand,butofferednorealtasteoftheBMWExperienceTheoldwelcomekitwas:第十九頁,共五十二頁。Apersonalwelcomekit–thatownersrealizewascreatedjustforthemItarriveswithinthefirst30daysItisadialogueopener,aninvitationtotheBMWexperiencethatextendsoverafullyearEachofthekitpiecesenhanceyourperceptionoftheBMWBrandandtheExperienceMultiplecallstoactionwhichleadyoudeeperintotheExperienceItinherentlyfostersthecollectionofinformationneededforfurtherrelationshipdialogueThenewBMWwelcomekit第二十頁,共五十二頁。WeeklyfeedofnewownersfromthedatabaseRapidrecordcleanupformailingWeeklyfulfillmentofcorrectednames,addressesanddatatothewelcomekitprogramMonthlymaintenanceofthedatabasewhichsupportsallowner andprospect communicationsTheDatabaseSupportstheWelcomeKit第二十一頁,共五十二頁。Task:ProvideindividualcustomerdataforpersonalizedwelcomekitfulfillmentStrategy:ProvidenewownerpersonalizedfulfillmentinformationonaweeklybasisRecoverkeyinformationrequestedMaintainownerfilesbasedoncollectedinformationforfutureprogramsIdentifycustomersbymodel,financialstatus,andpreparatorysegmentation(i.e.loyalty,activity,etc.)WelcomeKitFulfillmentProcess第二十二頁,共五十二頁。LoyaltyandOwnerCommunications
第二十三頁,共五十二頁。BMWcustomersarefiercelyloyaltotheirbrandLoyaltycanbemeasured:itistherepurchaserateSuccessfulloyaltyisatwowaystreetCustomerloyaltycanbestrengthenedbyrelevantpersonalcommunicationsBMWLoyaltyinitiativescovertheentireownershipexperienceWelcomeKit,Newsletters,BMWMagazine,MultipleVehicleOwnerprogramsTheLoyaltySituation第二十四頁,共五十二頁。IncreaseBMWprofitsthrough:IncreasedrepurchasebyexistingownersIncreasingthenumberofBMW’sperhouseholdIncreasedsalesofBMWpreviouslyownedvehiclesIncreaseduse/purchaseofBMWFSproductsEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:OwnerswhogetthecommunicationsOwnerCommunicationGoals第二十五頁,共五十二頁。GeneralGoals:ImmersionintheBMWExperiencePromotionofOwner’sCirclePurchaseofBMWaccessoriesTo3and4yearBMWowners.Goals:IncreasetherepurchaserateMultipleBMWsineachhouseholdWidespreaduseofBMWFinancialServicesproductsTonewBMWowners,Goals:PurchaseBMWfinancialservicesproductsCaptureinformationabouttheirpreferences,lifestyles,automobileinterests,etc.usefulforfurtherdialogLoyaltyBuildingNewsletters第二十六頁,共五十二頁。OngoingcollectionofnewsandinformationofinteresttoBMWownersOwnersurveystodeterminepreferencesfor:News,information,andtopicsCommunicationChannel(emailorprint)FrequencyBeginwithaprintednewslettertogatheremailaddressesMovetoemailnewslettersasquicklyaspossibleMultipleofferstogenerateownerresponsePromotetheuseofOwner’sCircleNewsletterStrategy第二十七頁,共五十二頁。NewproductsBMWawardsSportsstarsthatdriveBMWsRatingsbyleadingcarmagazinesWhytheBMWenginesaresuperiorThehistoryofBMWEventcalendarMagazinereprintsSponsorshipsBMWBrandValuesRoadsideAssistanceServicingrequirementsBMWInsuranceBMWcreditcardsBMWAccessoriesDrivingEventsBMWtradeinpricesBMWOwnerClubsOwner’sCircleWorldnewsfeaturingBMWNewsletterContent第二十八頁,共五十二頁。BMWMagazine第二十九頁,共五十二頁。BMWpublishesahigh-valuemagazinetoitsownersinthefirsttwoyearsaftertheirpurchaseBecauseofitsuniversaldistribution,themagazinecanbemorethanamagazineItcanbeadatacollectiontoolforfurtherpersonalizedcommunicationsMagazineStrategy-Before第三十頁,共五十二頁。CaptureadditionalinformationoncustomersEmailAddressesPurchaseIntentions:ownersidentifyingthemselvesasenteringthepurchasecycleAllowBMWownerstopurchasemerchandiseProvidedirectiontoBMWOnlineStoreforpurchasePushregistrationonOwner’sCircleEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:OwnerswhogetthecommunicationsMagazineStrategyToday第三十一頁,共五十二頁。ExtendingtheDialogue–ProspectMessages第三十二頁,共五十二頁。IncreaseprospectconversiontosellmoreBMWautomobilesProvideasteadyflowof“qualified”leadstoBMWCentersMakecommunicationsinteractiveContinuallyimprovetheconversionratesbybetterprospectingMeasuretheconversionratebyCenter,Region,ProspectLifestyle,IncomeGoalsoftheProspectManagementSystem第三十三頁,共五十二頁。Prospectsdevelopedfromallcontactsources:Telephone,DirectMail,AutoShows,Events,InternetRapidlyqualifiedandscoredCentersreceivequalifiedleadselectronicallywithin48hoursofreceiptProspectsgetBMWmessagewithin48hoursEveryleadtrackedelectronically,withdaily,weekly,&monthlyreportsforBMWmanagementonthewebAutomatedDatabaseProcesses第三十四頁,共五十二頁。ScoringmodelsforincomingprospectrequestsdeterminepriorityFocusonpriorityA&BprospectsMovingtolowerprioritiesasthesystemsprovesitselfFullyintegratedcreativeimplementationinbothelectronicandpapermediaaswellaseventsTestscoringmodelsagainstanticipatedresponseandadjustasneededUtilizea5%controlgroupforaperiodofoneyearforreportingcomparisonsTestingandImplementationStrategy第三十五頁,共五十二頁。SalesResponseToelectronicvs.paperPredeterminedvs.RelationalOffersandincentivesModelingsuccess%prospectconversion(historical)MediapreferenceautomatedsystemCostofprogramCostofsalesMeasurementsoftheProspectProgram第三十六頁,共五十二頁。MeasuringsuccessthroughthedealersScoredleadssenttoeachdealerConversionsaremeasuredmonthlyEachdealerconversationratiocalculatedProgramsuccessmeasuredbycomparingdealertodealerconversionratioDealer,Market,RegionandNationalaverageconversionratioscreatemeasurablebenchmarksAboveaveragedealersmanagetheirleadsbetter第三十七頁,共五十二頁。DirectMailandE-mailintegratedcommunicationplanAlternatingcontentdeliverymediumsEachreinforcingtheonethatcamebeforeitUseofdatabaseinformationtodrivecustomizationandrelevanceEachcommunicationintroducinganewpieceoftheBMWExperienceAllcommunicationstieintowebactivitiesIntegrationwithoff-lineandonlinemarketingactivitiesProspectsgiventheopportunitytoopt-outatanypointProspectsremovedfromprogramiftheypurchaseavehicleProspectProgramCommunicationsStrategy第三十八頁,共五十二頁。ImmerseandinvitetheprospectintotheBMWExperienceReinforcetheinitialcontactwithBMWEducateastothedepthoftheBrandProductsandServicesPointtheprospecttowardsatestdriveandthedealerReinforcecoremarketingcommunicationobjectivesabout:BrandValuesBrandHeritageProductattributesTheBMWOwnershipExperienceProgramCommunicationsObjectives第三十九頁,共五十二頁。NewproductsBMWintheNewsBMWTechnologyandInnovationBMWSafetyThehistoryofBMWandBMWBrandValuesEventinvitationsTestdriveincentivesBMWgiftsMagazinereprintsBMWFinancialServicesproductsProgramContentObjectives第四十頁,共五十二頁。Sellmorecarsby:ImmediateScoringofProspectsImmediateelectronicCenternotificationofleadsImmediatecommunicationswiththeprospectContinuallyengagethecustomerintheExperienceProvidemoreinformationonthedepthoftheBrandReducethecostpercarsoldProvideManagementwithaccurate&timelyknowledgeoftheprospectandsalesprocessIncreasetheoveralleffectivenessoffutureprospectingprogramsbylearningfromthisoneProspectSystemBenefits第四十一頁,共五十二頁。Quickwins:Xfactorprograms第四十二頁,共五十二頁。TheBMWDatabaseoffersahugeopportunitytoutilizeinformationtorefineBMWprogramsXFactorprogramsarebuiltondatamining,anddeliver:HighlyeffectivemarketingprogramsIncrementalrevenueopportunitiesLowcostpersaleIncreasedcustomer/prospectcontactandsatisfactionXFactorSituation第四十三頁,共五十二頁。TheLoyaltyandProspectPrograms,combinedwiththedatabase,offergreatpotentialforcreative,interactiveXfactorprograms:ContestsProgramsforWomen/MinoritiesSpecialEventsReferralProgramsCertifiedPreviouslyOwnedCarsSecondBMWsineveryhomeLifestyleProgramsCongratulatoryMailingsto3+BMWOwnersXFactorInitiatives第四十四頁,共五十二頁。Plusimprovedreporting,querydevelopmentandahalfdozennewideastobedevelopedandimplementedduringtheyearXFactor:somethingneweveryquarter第四十五頁,共五十二頁。Identifywaystobuildrelationshipswithfemaleowners:BringthemtotheBrand,andkeepthemlongerAppealtotheiruniqueneedsRecognizethepurchasingpowerandinfluencethatautomotivemarketerstypicallyignoreProvidetoolsthatreducepre-dealervisitanxietyTailoredcommunicationsthathighlightwhatwomenarelookingforLivechatsupportbyfemalesDevelopanetworkoffemalesalesrepsX1Women’sProgram第四十六頁,共五十二頁。IdentifyhouseholdsthatareprimeprospectstopurchaseasecondBMWAnalyzemultiplepurchasehouseholdsTargetgroupsmostl
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