CRM: Happy-lock in as basis

Page 1 | July 2014 | Happy lock-in

The Marketing & Sales Consultants of BBDO Worldwide

“Happy lock-in” as basis for CRM in Digital AgeConcept Paper

Page 2 | July 2014 | Happy lock-in as basis for CRM in Digital Age

Agenda

Happy lock-inSuccess factor for CRM in Digital Age

CRM concept developmentProcess and methods2

1


Best practices: How brands create loyalty within their ecosystems

More than 28 m sports enthusiasts interact on a

regular basis with their peers in the Nike+ community

Over 700 m iOS devices sold. Repurchase rate of Apple products tops 90%

1.3 bn registered users of which 48% log onto

Facebook on a daily basis

Over 7.5 bn capsules sold in more than 60 countries

every year

Best practices

900 m reward program members and 80,000 are

joining each week

Miles & More has over 25 m members – less than 4,000

are part of the elite HON circle

More than 45 m members worldwide who book more than half of all

room nights

Every 5th ebook download in the US is a Kindle format


Nike+

Drive customer value through cross-selling

Value added through connected usage

Appealing brand attitude

CRM target

CRM mechanics


Apple

iPhone

Mac

AppleTV

Appstore

iCloud

iPod

iPad

iTunes

Create a “happy“ lock-in

Fuel cross- and up- selling

Sign-in as pre-requisite for usage

Seamless user experience between products and services

CRM target

CRM mechanics


Nespresso

App

Food

CollectionAccessories

Coffee makers

Boutique

Capsules

Club

Create a “happy“ lock-in

Appealing brand attitude

Hard lock-in compensated by clear benefits

CRM target

CRM mechanics


Amazon

Broadest cross- and up- selling

Increase ”share of wallet“

Single source of digital entertainment (Single-Sign-On)

Affordable end devices to consume digital content

CRM target

CRM mechanics


Facebook

Drive usage and increase ”share of time“

One registration for all services (Single-Sign-On)

CRM target

CRM mechanics


Starbucks

Coffee maker Collection

Blend

TeaBottled products

Syrup

Rewards card

Shops

Capsules

Fuel frequency at PoS

Unique and emotional brand attitude

CRM target

CRM mechanics


Lufthansa Miles & More

Miles&More Card & Credit

Card

App

Increase share of wallet (travel spendings)

Double lock-in points: redemption and status

Partnerships

Lounges

CatalogUpgrades

Priority LaneMagazine

CRM target

CRM mechanics


Marriott Rewards

Credit cardRewards card

App Increase share of wallet (overnight stays)

Double lock-in points: redemption and status

Website

Partnerships

Lounges

Status cards

CRM target

CRM mechanics


Lessons learned: CRM targets must be aligned with disruptive CRM mechanics

CRM targets CRM mechanics

…

Status model

Brand attitude

Single-Sign-On (SSO)

Reward points

Seamless user experience

Customer lock-in

Connected usage

Deg

ree of d

isrup

tion

Conquest

Loyalty

Brand experience

Sub-objective (examples)Core objectives

Boost member registration

Generate referrals and recommendations

…

Fuel purchase frequency

Promote cross- and up-selling

…

Create emotional lock-in

Raise customer satisfaction

…

1

2

3


Agenda

Happy lock-inSuccess factor for CRM in Digital Age

CRM concept developmentProcess and methods2

1


Objectives: The CRM concept contributes in three ways to establish a brand as ecosystem and individual access point

“What are the relevant touch points, triggers and data sources to identify customers for a brand signup?”

“How can we make customers

stay with a brand forever?”

“How can we motivate customers to use a brand on a

regular basis?”

JOIN

USESTAY

CRM-Backbone


Development stages: Depending on the maturity of the new a brand platform, different CRM objectives are in focus

JOIN

USESTAY

STAGE 1: Launch

Focus on generating registrations to build up a solid customer

base for a brand

USESTAY

JOIN

STAGE 2:Activation

Focus on stimulating usage to increase

activity level of registered customers

STAGE 3:Stabilisation

Focus on creating loyalty and usage to

establish a profitable and long-term relationship

STAY

JOIN

USE


JOIN: Working packages overview

Inform & activate

1

Identify & register

2

Develop a touchpoint-oriented

communication strategy to set call to

action (digital + physical touchpoints)

Establish teaser components for

enthusiasts and prospects (e.g. events)

Provide convenient registration process

Set upfront data requirements to ensure

maximum customer data quality

Result: Lots of registerd customers


USE: Working packages overview

Utilize & interact

3

Refer & recom-mend

4

Design engagement strategy for

constant customer dialogue

(e.g. via app push-service)

Develop concept to explore cross-selling

and up-selling potential

Identify triggers to stimulate referrals

Develop a brand ambassadors program

to increase external referrals

(e.g. via social media platforms)

Result: More revenue per customer through individualized communication


STAY: Working packages overview

Appreciate & reward

5

Win back6

Introduce qualification levels to create

recognition and exclusivity

Define bonus program to provide

customers with monetary benefits

Develop a reactivation concept to send

impulses to inactive customers

Create a churn management strategy to

prevent customer migration

Result: Longer customer relationship through emotional an monetary lock-in

Page 19 | June 2014 | Contract Management HELLA

Batten & Company GmbH, Königsallee 92, 40212 Düsseldorf, T +49.211.1379-8539, F +49.211.1379-8742, www.batten-company.comDüsseldorf • Johannesburg • London • Madrid • Moskau • München • Shanghai • Tel Aviv • Zürich

Dr. Christian von ThadenManaging Partner

Batten & CompanyKönigsallee 9240212 Düsseldorf

Fon: +49 (0) 211 1379 8748Fax: +49 (0) 211 1379 91 8748E-Mail: christian.von.thaden@ batten-company.com