1、IntegratingAllDirectMarketingChannelstoBuildCustomerLoyaltyABMWCaseStudyKayMadati,RelationshipMarketingManagerBMWArthurMiddletonHughes,VPforStrategicPlanningM\SDatabaseMarketingTheDMA84thAnnualMcCormickPlace,ChicagoTuesday,October30th200110:00AM–11:15AM,,1950-2000Brandsbuiltbymassadvertising1985-20
2、00DatabaseMarketingarrived,butnotintegratedwithmassadvertising.1996-2000TheInternetarrived,butnotintegratedwithDBMormassadvertising2001BMWbringsthemalltogether,Howbrandmarketinghasevolved,BMWcustomerswant:ArealizationofthebrandpromisePerformance,safety,technology,innovationRecognitionServiceInformat
3、ionConvenienceHelpfulness,BMWBuyersNotNecessarilyDrivenbyPrice,PersonalProfitfromPurchase=a(usefulnessofproduct)+b(perceivedbrandvalue)-c(moneycost)-d(timeorinconvenience),HowBMWBuyersMakePurchaseDecisions,ConstructorsPeoplewhobuilddatabasesMerge/Purge,Hardware,SoftwareCreatorsPeoplewhounderstandstr
4、ategyBuildloyaltyandrepeatsalesYouneedbothkinds!,Twokindsofdatabasemarketingpeople,In2000,BMWbuiltarobustcustomerandprospectdatabasedesignedto:ProvideacomprehensiveviewoftheautomotiveandfinancialservicesBMWcustomerDelivershortterm,incrementalrevenuethroughopportunisticmarketingprogramsIncreasecustom
5、erloyaltythroughunderstandingandabilitytodeliverrelevant,timelycommunicationSecureBMW’splaceinitscustomers’livesbyidentifyingwhichhouseholdsaregoodtargetsforadditionalBMWpurchases,SituationAnalysis,BMWnowhasacentralsystemofmeasurementTheBMWReportCentermonitorscommunicationsandresponsefromprospectsan
6、dcustomersMeasurementincludescostperresponseandcostpersaleBMWnowhastheabilitytoviewprospectsaswellcustomersinitsuniverseThisallowsBMWtoviewthefullshopper-ownercyclefromfirstpointofcontact,throughsaleandcrosssaleThenewmarketingdatabasecontainsabroadrangeofinformationontheBMWconsumerCampaign,response,
7、andfinancialservicedata190appendedindividualandhouseholddatapoints,BMWSituationII,AllowingafullviewoftheBMWcustomerdeliverssmartertargetingandprofit-generatingupsellandcrosssellopportunitiesWhichvehicleownersarebesttargetsforcreditcards?HowcanBMWcardownersincreasethelifetimevalueofthevehicleowners?W
8、herearethepocketsofourmostprofitablecustomers?WhichcustomerswilldeliveradditionalrevenuethroughfinancialservicesproductsaftertheyhavedisposedoftheirBMW?,BMWSituationIII,Improvetheeffectivenessofmarketingprogramsintheyears2001–2003inorderto:ReturntoBMWthecostofthedatabasebuildPayfordatabasemaintenanc
9、egoingforwardIncreasetherevenuepercustomerovertimeIncreasetheprofitpercustomerIncreasethelifetimevalueofthecombinedBMWautomobileandfinancialservicescustomer,BMWDatabaseMarketingGoals,ConsistentmeasurementandenhancementofBMWmarketingprogramsAbilitytoprioritizeprospectsandcustomersbasedontheirlikeliho
10、odtobuyIdentificationof“lowhangingfruit”–programsthatcanbequicklyimplementedtogeneraterevenueintheshorttermRefinementofcustomercommunicationsTestingresultsagainstControlGroups,,HowBMWmeasuresreturnoninvestment,ControlgroupsmeasuretheeffectivenessofeachprogramNon-mailedgroupsthataremeasuredagainstthe
11、mailedgroupsReportsontheBMWReportCenterprovideaconsistentformofmeasurementCostperlead,responseandsalemeasurementCross-penetrationofproductpurchases,ControlsandMeasurement,IncreasedcommunicationeffectivenessIntegrateddatabaseusedbyallgroupsIncreasedefficiency–Therightinformationtotherightcustomeratth
12、erighttimeReducedcommunicationexpenseFewerpiecesmailedwithhighereffectivenessIncreasedcustomerparticipationIncreasedcustomersatisfactionIncreasedcorporateandcenterprofitsAhigherlevelofdatafromandaboutBMWcustomers,BenefitstoBMW,RelationshipMarketingStrategy,Allprogramsarebuiltonastate-of-the-artcusto
13、merrelationshipmanagementdatabasewhichprovides:MoreinformationonownersandprospectsthanBMWhaseverassembledbeforePowerfultoolstosupportBMWloyaltyandprospectconversionprogramsAutomatedcommunicationthatsupportstheOwnerExperience,TheDatabase,IncreasecustomerloyaltyIncreaseprospectconversiontosalesratioIn
14、creasevehiclesalesthroughexistingcustomersMaintainexistingBMWhouseholdrecordsKeepcommunicationcostsdownwhileincreasingeffectivenessDevelopaconsistentprocessofprogrammeasurement,2001DatabaseMarketingGoals,UsethemarketingdatabasetorealizeacommunicationsdialoguewithbothourprospectsandourcustomersSystem
15、aticuseofcustomizedinformationtoattractandretaincustomersFacilitatemutuallybeneficialandrelevantinformationexchangesIncreaseownerloyaltyandcustomeracquisitionratesStrengthenBMWbrandperceptionattheindividualcustomerlevel,BMWRelationshipMarketingObjectives,ConsumerCommunicationsWelcomeKitLoyaltyCommun
16、icationsProspectPrioritization/ExtendingtheDialogueBMWMagazineEnhancementsBMWOwner’sCircleFinancialServicesProgramsCreditCard&BankingCustomerAcquisitionCrossSellandUpSellMarketingOpportunistic“QuickWin”Programs,,CoreCommunicationsProgram,TheOwnerWelcomeKit,AstatickitInformationonBMW,theBrandBMW,theC
17、ompanyBMW,theProductsItwelcomedpeopletothebrand,butofferednorealtasteoftheBMWExperience,Theoldwelcomekitwas:,Apersonalwelcomekit–thatownersrealizewascreatedjustforthemItarriveswithinthefirst30daysItisadialogueopener,aninvitationtotheBMWexperiencethatextendsoverafullyearEachofthekitpiecesenhanceyourp
18、erceptionoftheBMWBrandandtheExperienceMultiplecallstoactionwhichleadyoudeeperintotheExperienceItinherentlyfostersthecollectionofinformationneededforfurtherrelationshipdialogue,ThenewBMWwelcomekit,WeeklyfeedofnewownersfromthedatabaseRapidrecordcleanupformailingWeeklyfulfillmentofcorrectednames,addres
19、sesanddatatothewelcomekitprogramMonthlymaintenanceofthedatabasewhichsupportsallownerandprospectcommunications,TheDatabaseSupportstheWelcomeKit,Task:ProvideindividualcustomerdataforpersonalizedwelcomekitfulfillmentStrategy:ProvidenewownerpersonalizedfulfillmentinformationonaweeklybasisRecoverkeyinfor
20、mationrequestedMaintainownerfilesbasedoncollectedinformationforfutureprogramsIdentifycustomersbymodel,financialstatus,andpreparatorysegmentation(i.e.loyalty,activity,etc.),WelcomeKitFulfillmentProcess,LoyaltyandOwnerCommunications,BMWcustomersarefiercelyloyaltotheirbrandLoyaltycanbemeasured:itisther
21、epurchaserateSuccessfulloyaltyisatwowaystreetCustomerloyaltycanbestrengthenedbyrelevantpersonalcommunicationsBMWLoyaltyinitiativescovertheentireownershipexperienceWelcomeKit,Newsletters,BMWMagazine,MultipleVehicleOwnerprograms,TheLoyaltySituation,IncreaseBMWprofitsthrough:Increasedrepurchasebyexisti
22、ngownersIncreasingthenumberofBMW’sperhouseholdIncreasedsalesofBMWpreviouslyownedvehiclesIncreaseduse/purchaseofBMWFSproductsEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:Ownerswhogetthecommunications,OwnerCommunicationGoals,GeneralGoals:Im
23、mersionintheBMWExperiencePromotionofOwner’sCirclePurchaseofBMWaccessoriesTo3and4yearBMWowners.Goals:IncreasetherepurchaserateMultipleBMWsineachhouseholdWidespreaduseofBMWFinancialServicesproductsTonewBMWowners,Goals:PurchaseBMWfinancialservicesproductsCaptureinformationabouttheirpreferences,lifestyl
24、es,automobileinterests,etc.usefulforfurtherdialog,LoyaltyBuildingNewsletters,OngoingcollectionofnewsandinformationofinteresttoBMWownersOwnersurveystodeterminepreferencesfor:News,information,andtopicsCommunicationChannel(emailorprint)FrequencyBeginwithaprintednewslettertogatheremailaddressesMovetoema
25、ilnewslettersasquicklyaspossibleMultipleofferstogenerateownerresponsePromotetheuseofOwner’sCircle,NewsletterStrategy,NewproductsBMWawardsSportsstarsthatdriveBMWsRatingsbyleadingcarmagazinesWhytheBMWenginesaresuperiorThehistoryofBMWEventcalendarMagazinereprintsSponsorshipsBMWBrandValues,RoadsideAssis
26、tanceServicingrequirementsBMWInsuranceBMWcreditcardsBMWAccessoriesDrivingEventsBMWtradeinpricesBMWOwnerClubsOwner’sCircleWorldnewsfeaturingBMW,NewsletterContent,BMWMagazine,BMWpublishesahigh-valuemagazinetoitsownersinthefirsttwoyearsaftertheirpurchaseBecauseofitsuniversaldistribution,themagazinecanb
27、emorethanamagazineItcanbeadatacollectiontoolforfurtherpersonalizedcommunications,MagazineStrategy-Before,CaptureadditionalinformationoncustomersEmailAddressesPurchaseIntentions:ownersidentifyingthemselvesasenteringthepurchasecycleAllowBMWownerstopurchasemerchandiseProvidedirectiontoBMWOnlineStorefor
28、purchasePushregistrationonOwner’sCircleEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:Ownerswhogetthecommunications,MagazineStrategyToday,ExtendingtheDialogue–ProspectMessages,IncreaseprospectconversiontosellmoreBMWautomobilesProvideasteady
29、flowof“qualified”leadstoBMWCentersMakecommunicationsinteractiveContinuallyimprovetheconversionratesbybetterprospectingMeasuretheconversionratebyCenter,Region,ProspectLifestyle,Income,GoalsoftheProspectManagementSystem,Prospectsdevelopedfromallcontactsources:Telephone,DirectMail,AutoShows,Events,Inte
30、rnetRapidlyqualifiedandscoredCentersreceivequalifiedleadselectronicallywithin48hoursofreceiptProspectsgetBMWmessagewithin48hoursEveryleadtrackedelectronically,withdaily,weekly,&monthlyreportsforBMWmanagementontheweb,AutomatedDatabaseProcesses,Scoringmodelsforincomingprospectrequestsdeterminepriority
31、FocusonpriorityA&BprospectsMovingtolowerprioritiesasthesystemsprovesitselfFullyintegratedcreativeimplementationinbothelectronicandpapermediaaswellaseventsTestscoringmodelsagainstanticipatedresponseandadjustasneededUtilizea5%controlgroupforaperiodofoneyearforreportingcomparisons,TestingandImplementat
32、ionStrategy,SalesResponseToelectronicvs.paperPredeterminedvs.RelationalOffersandincentivesModelingsuccess%prospectconversion(historical)MediapreferenceautomatedsystemCostofprogramCostofsales,MeasurementsoftheProspectProgram,Measuringsuccessthroughthedealers,ScoredleadssenttoeachdealerConversionsarem
33、easuredmonthlyEachdealerconversationratiocalculatedProgramsuccessmeasuredbycomparingdealertodealerconversionratioDealer,Market,RegionandNationalaverageconversionratioscreatemeasurablebenchmarksAboveaveragedealersmanagetheirleadsbetter,DirectMailandE-mailintegratedcommunicationplanAlternatingcontentd
34、eliverymediumsEachreinforcingtheonethatcamebeforeitUseofdatabaseinformationtodrivecustomizationandrelevanceEachcommunicationintroducinganewpieceoftheBMWExperienceAllcommunicationstieintowebactivitiesIntegrationwithoff-lineandonlinemarketingactivitiesProspectsgiventheopportunitytoopt-outatanypointPro
35、spectsremovedfromprogramiftheypurchaseavehicle,ProspectProgramCommunicationsStrategy,ImmerseandinvitetheprospectintotheBMWExperienceReinforcetheinitialcontactwithBMWEducateastothedepthoftheBrandProductsandServicesPointtheprospecttowardsatestdriveandthedealerReinforcecoremarketingcommunicationobjecti
36、vesabout:BrandValuesBrandHeritageProductattributesTheBMWOwnershipExperience,ProgramCommunicationsObjectives,NewproductsBMWintheNewsBMWTechnologyandInnovationBMWSafetyThehistoryofBMWandBMWBrandValuesEventinvitationsTestdriveincentivesBMWgiftsMagazinereprintsBMWFinancialServicesproducts,ProgramContent
37、Objectives,Sellmorecarsby:ImmediateScoringofProspectsImmediateelectronicCenternotificationofleadsImmediatecommunicationswiththeprospectContinuallyengagethecustomerintheExperienceProvidemoreinformationonthedepthoftheBrandReducethecostpercarsoldProvideManagementwithaccurate&timelyknowledgeoftheprospec
38、tandsalesprocessIncreasetheoveralleffectivenessoffutureprospectingprogramsbylearningfromthisone,ProspectSystemBenefits,Quickwins:Xfactorprograms,TheBMWDatabaseoffersahugeopportunitytoutilizeinformationtorefineBMWprogramsXFactorprogramsarebuiltondatamining,anddeliver:HighlyeffectivemarketingprogramsI
39、ncrementalrevenueopportunitiesLowcostpersaleIncreasedcustomer/prospectcontactandsatisfaction,XFactorSituation,TheLoyaltyandProspectPrograms,combinedwiththedatabase,offergreatpotentialforcreative,interactiveXfactorprograms:ContestsProgramsforWomen/MinoritiesSpecialEventsReferralProgramsCertifiedPrevi
40、ouslyOwnedCarsSecondBMWsineveryhomeLifestyleProgramsCongratulatoryMailingsto3+BMWOwners,XFactorInitiatives,Plusimprovedreporting,querydevelopmentandahalfdozennewideastobedevelopedandimplementedduringtheyear,XFactor:somethingneweveryquarter,Identifywaystobuildrelationshipswithfemaleowners:Bringthemto
41、theBrand,andkeepthemlongerAppealtotheiruniqueneedsRecognizethepurchasingpowerandinfluencethatautomotivemarketerstypicallyignoreProvidetoolsthatreducepre-dealervisitanxietyTailoredcommunicationsthathighlightwhatwomenarelookingforLivechatsupportbyfemalesDevelopanetworkoffemalesalesreps,X1Women’sProgra
42、m,IdentifyhouseholdsthatareprimeprospectstopurchaseasecondBMWAnalyzemultiplepurchasehouseholdsTargetgroupsmostlikelytopurchaseaCPOvehicleHouseholdswithteenagersoryoungadultsIdentifyseasonality–graduation,etc.TesttheprogramoncurrentBMWowners,thenrollouttoprospects,X2:CertifiedPreviouslyOwnedProgram,I
43、dentifythosecurrentownerswhoaremostlikelytopurchaseanew7SeriesBMWInvitethesespecialpeopletobeamongasmallgroupwhoareallowedtopreviewthenew7seriesAppealtotheirappreciationofinclusionbyaskingfortheirfeedbackandopinionAllowthemtobeamongthefirsttotestdriveNotifythemperiodicallyofthestatusofthevehicle,X3:
44、Series7Launch,IdentifythosecurrentownerswhoaremostlikelytopurchasetheMINICreateauniquelifestylemessagetotheseownersAppealtotheearlyadapterFocusonactivelifestylesGetthemtopreviewonthewebandoptintomarketingmessages,X4:MiniLaunch,DevelopaprogramthatuniquelyappealstotheBMWownerCommunicatethepersonalityo
45、fthebrandReinforcetherelationshipthattheBMWownerhaswiththeircarAttheanniversaryofpurchase,sendane-cardtoownersDirectthemtoamicrositetogetane-birthdaygift,X5:BirthdayCards,Databaseprovidesthecentralfocusfor:OwnerloyaltycommunicationprogramsProspectcommunicationsOpportunistic“QuickWin”ProgramsMeasurementofsuccessBuildingBMWBrandLoyalty,Summary:BMWhasputitalltogether,,






