Dcongres bdma Engagement modelling

Stratics © 2012 – Customer Value by Customer Insight

HOW ENGAGED IS YOUR CUSTOMER?A PRAGMATIC APPROACH FOR TEH BOLTON GROUP BY STRATICS

BDMA – ROCK 25/10/2012

FILIP CORNE


Bolton Group• The Bolton Group is a fast-growing

international company manufacturing and marketing a wide range of high quality branded consumer goods worldwide. The Group brand portfolio is rich of more than 50 product lines ranging from Food and Household Care products through Adhesives & Glues to Personal & Health Care and Beauty Care products.

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Stratics – Filip Corne• Founded 2008 by Kris Vranken

• 6 x minimal 18 years experience in Database Marketing, CRM, Direct Marketing

• Our Clients:

• Managing Partner, Stratics

• 18 jaar ervaring

– Marktanalyse

– Database Marketing, CRM & Event Driven Marketing

– Data Quality, Data Management

– Customer Value by Customer Insight

• AC Nielsen – [Sopres –WegenerDM – WDM - D-trix ] 3

Stratics © 2012 – Customer Value by Customer Insight 4

What we preach...

Reach the people that count

Don’t count the people you reach


STRA-tegy meets tac-TICS

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Get Keep Grow Winback

Identify

Differentiate

Interact

Customize 1 to 1

Segmentation

DB Management

Event Driven / Cross Channel

STRATEGYTA

CT

ICS


Relevant Data Customer Insight

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Engagement

Aspirations

Transactions

Contact

InfoBASIC DATA

INFORMATION

KNOWLEDGE

RELATIONSHIP


Engagement– What is it – What is the philosophy behind Engagement Modelling?

– Who are our Ambassadors ?

– Who is opening our newsletters

– Which Channels are preferred?

– Friends, Referals, STF, …

– Social activity

– -...

– What can it tell us?– Level of engagement towards Brands / Products / Dialogue /...

– Social influence

Personalised interaction (dialogue)7


Customer Engagement

– “Repeated interactions that strengthen the emotional,psychological or physical investment a customer has in a brand.” Richard Sedley, cScape

– “The level of involvement, interaction,intimacy, and influence that an individual has with a brand over time.” Brian Haven, Forrester

– “A deeper, more meaningful connection between the company and the customer, and one that endures over time.” The Economist Intelligence Unit

– Customer engagement (CE) refers to the engagement of customers with one another, with a company or a brand. The initiative for engagement can be either consumer- or company-led and the medium of engagement can be on or offline. Wikipedia

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Engagement vs Customer Value

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C

u

s

t

o

m

e

r

V

a

l

u

e

Engagement Score

NEW

Bronze

Silver

Gold

Platinum


Your MDB – The spider in the web

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Contact Info

Transactional Info

Campaign Info

Social Info

Website visit infoCouponning info

Shop visit info

And it’s not a picture...it’s a movie


How to Start?– Weigh every trackable Client action

– Coupon printing

– Coupon redemption

– E-mail open Click

– Website visits

– STF

– Social Actions

– Participation to Savings Action

– ....

– Maximize flow-back possibilites to the MDB– Website Registration

– Facebook Connect

– ...

– Introduce the Time Effect– Someone who engaged yesterday is stronger than someone who did 1 month ago

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Stratics © 2012 – Customer Value by Customer Insight12

Category Reaction Type Weight

Home Care website 0,05

Home Care contest 0,10

Home Care savingaction 0,10

Home Care refund 0,15

Home Care email 0,05

Home Care coupon 0,15

Home Care voucher 0,20

Home Care social 0,10

Food website 0,05

Food contest 0,15

Food savingaction 0,10

Food refund 0,10

Food email 0,10

Food coupon 0,10

Food voucher 0,20

Food social 0,10

Pharma website 0,20

Pharma contest 0,10

Pharma savingaction 0,20

Pharma refund 0,10

Pharma email 0,15

Pharma coupon 0,00

Pharma voucher 0,00

Pharma social 0,10


Category UsersNumber of

consumers

Average weight /

consumer

Consumer value at

entry level

Total consumer

value

€0,00 €0,00

Home Care 14.692 1,16 €21,90 €373.030,93

Food 156 1,15 €11,72 €2.093,97

Pharma 18 1,16 €66,87 €1.402,39

€14.865,20 €376.527,28

0 €0,00

Home Care 16.138 1,42 €21,90 €500.436,42

Food 356 1,18 €11,72 €4.900,23

Pharma 20 1,31 €66,87 €1.797,49

€16.514,56 €507.134,14

€0,00 €0,00

Home Care 4.713 1,25 €51,03 €226.080,94

Food 4.261 1,14 €27,31 €99.347,27

Pharma 4.813 1,11 €155,81 €622.524,57

€13.786,88 €947.952,78

€0,00 €0,00

Home Care 9 1,15 €9,40 €48,65

Food 40 1,10 €5,03 €110,91

Pharma 0 0,00 €28,70 €0,00

€49,00 €159,56

€27.551,00 €1.831.773,76

Grand Total (all consumers : declared + not declared)

ACTIVE 2 CONSUMERS --> modification 75%

Consumers with declared information

Consumers without declared information (for this group we use average values based on research)

ACTIVE 3 CONSUMERS --> modification 50%



NEW CONSUMERS --> no modification (100%)



ACTIVE 1 CONSUMERS --> no modification (100%)




10%

37% 37%50% 53%

0%

20%

40%

60%

1 X LOW 2 LOW 3 MEDIUM 4 HIGH 5 X HIGH

Engagement Class

Impact Engagement score on Open Rate Email

Open Rate %

Average Open Rate %

26% 27% 30%

52% 56%

0%

20%

40%

60%

1 X LOW 2 LOW 3 MEDIUM 4 HIGH 5 X HIGH

Engagement Class

Impact Engagement score on Click 2 Open Rate Email

Click 2 Open Rate%

Average Click 2 Open Rate%


Conclusion– Engagement scores are a usefull Customer Insight Tool

– Starting, taking first steps and learning are key

– It’s an on-going process

– Industry – Sector – Brand specific

– Component measurability might be tricky

– Linking Component is even be more difficult

– To be judged by actual € (transactions)

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Have Fun & Thank you for listening!

Filip CorneManaging Partner

+32 475 320 328

[email protected]

http://be.linkedin.com/in/filipcorne

@filipcorne

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Dcongres bdma Engagement modelling