Realizing Kodak’s Relationship Marketing Vision QUICKSCAN Results.ppt

,RealizingKodaksRelationshipMarketingVision:QUICKSCANResults,December16,1998,TodaysAgenda,IntroductionResourceallocationbothpersonnelProgramstructureInternet3.RMexemplarsarethosecompanieswithtransactionalinteractionwithcustomers.Thesefirmshavemovedbeyondjustcommunicationandaretransactingwiththeircustomersthroughrelationshipmarketing.,BestPracticesBenchmarks:8KeyFindings,4.AllfirmsreportsignificantROIorshareofwalletgainsovertime,farinexcessofwhatwouldhavebeenrealizedwithouttheadoptionofRM5.Arobustmarketingdatabaseservingsometimeshundredsofend-users,isofprimaryimportancetotheirRMsuccesses6.MatureRMpractitionershavemovedbeyondcommunicating“productsinsearchofpeople”andareanticipatingandfacilitating“peopleinsearchofproducts”,BestPracticesBenchmarks:8KeyFindings,7.Customerparticipationin“opting-into”theirRMprogram,andlettingthecustomerdirectthemarketingeffortssenttothem.Thekeytoconnectingisthroughthecultivationofenabledandempoweredcustomers.8.Internet.MostcompaniesareunsuretheexactroletheInternetwillplaybutagree:ItisabouttransactingVs.publishingItisaboutencouragingcustomerstointeractwiththecompany,RequirementsforImplementingRM,EstablishedmarketingvisionQuantifiablegoalsSeniormanagementcommitmentCentralizeddatabasemanagementthatrecordsallactivityStakeholderparticipation,DefinedRolesandResponsibilitiesSomekindofinternalgroupor“force”thatmakestherules:Theymayalso“own”thecustomerand/or“own”theprocessGatekeeperimplements/ensurescomplianceProcessforcreatingcontactstrategy(whogetswhatwhen)Occursregularly,RequirementsforImplementingRM,TheQuickScanResults,AssignmentGoals,WeproposedusingCustomerOwnership,OgilvyOnesproprietarystrategicapproach,todeterminetheopportunitytoincreaseKodakscustomerequityandreturnondirectmarketinginvestmentwithProfessionalPhotographersandtheirLabs.ThefirstphaseofthisprocessincludedtheQuickScananalysistoexamineK-Prosmarketingefforts,andtoidentifyavaluebasedsegmentationmethodologythatcouldbeusedtodevisecustomermanagementandmessagingstrategies,KeyProjectContacts,AlPolitiRetailPortraitSegmentManagerKodakProfessionalDivisionDavidLewisBusinessResearchProfessionalImagingDavidBaroneDatabaseMarketingManager-InsideSalesKodakProfessionalDivisionKevinRupertDirector,WWMarketingPlanning,BrandManagement,InformationSources,Fiverelevantdatabasesourcesofprofessionalphotographerand/orlabinformationCIWPro-RewardsPromiseofExcellenceVASRFinancialdatabasesAnumberofmarketresearchsourcesofinformationNielsenpaneldataAvarietyofprojectfocussedsurveysBrandequitystudiesArecentPortrabrandtrackingstudy,InformationaboutPhotographers,KeyFindingsSmallbaseofprofessionalphotographers(40,000)KodakhasahighmarketshareSmallpercentageofphotographersgeneratemuchoftherevenue(judgmentalobservation)Successfulphotographersgotolargerlabs(judgmentalobservation)AcomprehensivedatabaseofphotographersalreadyexistsAloyaltyprogramPro-Rewardsisalreadyinplace,ImplicationsSmallbaseidealforRelationshipMarketingEasiertostartbuildingandmaintainingloyaltySupportsargumentfordifferentialtreatmentEasiertotargethighvaluephotographersthroughlabdatabasesValuablestartingpointforidentifyinghighvaluecustomersSolidfoundationfromwhichtoevolveasuccessfulrelationshipmarketingprogram,InformationaboutLabs,KeyFindingsSmallbaseoflabs(about1100)KodakhasahighmarketshareLabsbelievethatKodakisinasuperiorpositiontohelprealizegrowthobjectives(judgmentalobservation)SmallpercentageoflabsgeneratemuchoftherevenueAcomprehensivedatabaseoflabsalreadyexists,ImplicationsSmallbaseidealforRelationshipmarketingEasiertostartbuildingandmaintainingloyaltyRelationshipMarketingiseasierforthemarketleaderThisiscriticalforRelationshipMarketingtobesuccessfulValuablestartingpointforidentifyinghighvaluecustomers,ResearchLimitations,LimitationsNosegmentationinitiated,andthereforenofocusonhighvaluesegmentsNoinformationaboutefficacyofexistingprograms:littleornodataminingperformedLackofco-ordinationbetweenindividualresearchstudies(Nielsen,brandtrackingetc)NodataondriversofbehavioraloremotionalloyaltyforKodakandcompetition,ImplicationsPossiblewastageofmarketingdollarsonlowvaluecustomersPaucityoflearningsmaymakeexistingprogramsinefficientLittlestrategicallyleveragableinformationavailableMakesitdifficulttodesigntargetedmarketingprograms,DatabaseLimitations,LimitationsNoteasilyqueryable”UpdatedatirregularintervalsSales/valueinformationisnotavailableforallrecords;onlyavailablefortopcustomersOverwriteexistinginformationwithupdatePromotionalhistory/campaignmanagementfeaturenotavailable,ImplicationsNotpracticalasaneffectivemarketingdatabaseMakesplanningandanalysislessreliableImplementationofaone-to-onerelationshipmarketingprogrambecomesdifficultHistoricaltrendanalysisisnotpossibleEssentialformeasuringefficacyandROIofrelationshipmarketingprograms,DifferentialMarketingAnalysis,DifferentialmarketingsegmentsconsumersonthebasisoftheamountofprofittheyarecapableofdeliveringNielsendatawasusedintheanalysisApanelof1,413professionalphotographerswereusedforanalysisEachofphotographerwasplacedintooneof9segmentsaccordingto:OverallfilmusagePercentageofKodakbrandfilmused,DifferentialMarketingAnalysis,#ofPhotographers#ofRolls,High(Top20%),3,240242,801,Low(50%SOR),3,360175,396,Medium(50-99%SOR),2,560201,396,High(100%SOR),Medium(Middle30%),5,320181,779,2,84093,353,4,120138,125,Low(Bottom50%),6,44085,046,4,28059,839,8,84098,488,VALUE,LOYALTY,DifferentialMarketingAnalysis,%ofPhotographers%ofRolls,High(Top20%),8.1%19.0%,Low(50%SOR),5.9%13.7%,Medium(50-99%SOR),6.4%15.8%,High(100%SOR),Medium(Middle30%),13.2%14.2%,7.1%7.3%,10.2%10.8%,Low(Bottom50%),16.2%6.7%,10.7%4.7%,22.2%7.7%,VALUE,LOYALTY,20%ofHighValuePhotographersaccountfor50%ofusage,VALUE,LOYALTY,DifferentialMarketingAnalysis,Atotalof36.2MMrollsarepurchasedannuallybythese40,000photographers,Low,High,3,2406.842,111,Low,2,3604.992,113,Medium,2,5605.732,238,High,Medium,5,3205.14967,2,8402.65934,4,1203.92953,6,4402.40373,4,2801.68394,8,8402.79316,#PhotographersRollsperYear(MM)Avg.Rolls/YrperPhotog.,DifferentialMarketingAnalysis,A15%cellswitchwillmove2,000photographersResultingin:-915KmoreKodakrollsboughtperyear;$2.3millioninincrementalrevenues(assumes$2.50perrolloffilm),VALUE,LOYALTY,Low,High,3,2406.842,111,Low,2,3604.992,113,Medium,2,5605.732,238,High,Medium,5,3205.14967,2,8402.65934,4,1203.92953,6,4402.40373,4,2801.68394,8,8402.79316,#PhotographersRollsperYear(MM)Avg.Rolls/YrperPhotog.,15%,15%,15%,15%,QuickScan-OutcomeScenarios,QuickScanforReadiness,Information,Infrastructure,Ready!,Gaps,Complete,Distributed,Integrated,KeyDatacapture,ReviewProcesses,KeyConclusions,KodakshouldprogresswiththerelationshipmarketingeffortKodakmustrealignandenhancesystems,strategiesandresourcestotakeonthistaskThereisaneedtogoontothenextstepofCustomerOwnershipPlanningIsKodakcommittedtotakeonthischallenge?,NextSteps:Options,OptionICompletedatagathering&analysisforQuickScanassignmentworkingcloselywithkeyplayerstolocatenecessarydataOptionIIFinishQuickScanMoveontoPhaseIIofCustomerOwnershipPlanningOptionIIIUndertakein-depthbenchmarkingengagementfocusingonkeyareasofcompetencytoachieveworldclassstatusindatabasemarketingDeliverables:StrategicBlueprintandStrategicRecommendationsBestPracticesscorecard,NextSteps:Options,OptionIVMaintaincurrentmarketingstrategywithProfessionalphotographers,Appendices,ConsultingTeam,CharlesDOyly,GroupAccountDirectorCharlesisGroupAccountDirectorforDigitalBrandsatOgilvyOne.HehasbusinessresponsibilityforGTE,K,Ameritrade,PetersonsPublishing,FordCredit,AIG,KimberleyClark&eChores.PriortojoiningOgilvyOne,CharleswasDirectorofInteractiveResearchatYankelovichPartnerswherehewasresponsibleforpublishingstudiesonthebehaviorsandattitudesoftheonlineconsumertohelpFortune500marketersdeveloponlinebusinessstrategies.CharleshasbeenaregularspeakeratmarketingconferencesintheUSandEurope(AdvertisingResearchFoundation,NewspaperAssociationofAmerica,Giga).CharlescametotheUSin1994whenhiredbyWandPartners,aninvestmentcompanyspecializingininformationindustryinvestments(YankelovichPartnerswasonesuchinvestment).AtWandhewasinvolvedinevaluatingthesalesandmarketingcapabilitiesofnewinvestments,aswellasbeingakeymemberofWandsmanagementconsultingpractice.CharlesstartedhismarketingcareerwithUnileverintheUK,workingacrossarangeofPersonalHealthcarebrands.CharleshasanMAinEconomicsfromEdinburghUniversityandadiplomainAccounting&Finance.Heismarried,livesinNewYork,andisinterestedinallsportsthatinvolvinghittingsmallballs.,ConsultingTeam,PaulaFedoris,DirectorofAnalyticalServicesMs.FedorisisarecentadditiontotheOgilvyOneteamandbrings13yearsexperienceindatabasemarketingwithaspecializationindataminingandanalysis.Ms.FedoriswillbespearheadingtheexpansionofOgilvyOnesAnalyticServicescapabilities.TheprimarymissionofAnalyticServicesistoassistourclientsinmanagingtheircustomersandmaximizingtheirvaluebydevelopinginformationwhichcanbeusedtomakebettermarketingdecisions.Specifically,herresponsibilitiesincludeoverseeingthedevelopmentandcompletionoftargetedmarketingsolutionsforOgilvyOnesclients.Thesesolutionsencompassstrategicmarketingconsulting,research,analysis/data-miningandpredictivemodeling.Ms.Fedorishasexperienceinemployingmarketingdatabasesandadvancedanalytictechniquesinbothconsumerandbusiness-to-businessmarketingenvironments.Ms.Fedorishasworkedinadiverserangeofindustriesincluding:financialservices,transportation,informationservices,insuranceandconsulting.PriortojoiningOgilvyOne,sheworkedatEpsilon(asubsidiaryofAmericanExpress),ChaseManhattan,AmericanInternationalGroupandCSXCorporation.Ms.FedorisreceivedherB.S.fromtheWhartonSchoolattheUniversityofPennsylvaniawithconcentrationsinfinanceandinternationalbusiness.,ConsultingTeam,AjitKaicker,AnalyticConsultantSincejoiningtheAnalyticServicesGroupatOgilvyOnethisyear,AjithasworkedwithanumberofclientsincludingJaguarCars,FiveBrothers/Lipton,AlamoCarRental,Ford,andKodak.ProjectassignmentsincludedanimplementationofOgilvysproprietaryQuickScanprocess,modeling,data-mining,aswellasanumberofback-endcampaignanalyses.BeforejoiningOgilvyOne,AjitwasaSeniorAssociateatBrightSunConsultinginNewYorkwhereheledthemarketsciencesteamforExxonCorporation.HewasalsoaseniormemberofthestrategydevelopmentteamonboththeExxonUSAandtheSamsungGlobalassignments.AjitalsohassubstantialresearchandanalyticexperiencewithotherclientssuchasPepsi,UNICEF,GM,andHondafrompreviouspositions.AjithasaMBAandaPhDinMarketing/StatisticsfromtheUniversityofSouthCarolina,andlivesinNewJerseywithhiswifeand(19monthold)daughter.,TrendsandContext,SocietyEmpowermentoftheIndividualEnhancedExpectationsCommunications&TechnologyAdvancementsFragmentation&ChangeNationalization&GlobalizationBusinessTotalQuality/GreenpressuresServiceandCustomerfocusGlobalmarkets/NichefocusProcessmanagement,TheRoleofTheDatabase,DataCollectionUniform,accurate,relevantandvalidateddataDataManagementDataorganization,structureandmanipulationtosupportusersneedsandapplicationsDataAnalysisTurningdataintoinformation-decisionsupportAppropriatesegmentationandclassification(value,loyalty,lifestage,lifestyle,repertoire,etc.)Understandingthecustomer,ieanswering“who,where,what,when,andhowmany”typesofquestions,TheRoleofTheDatabase,DataUtilizationManagingthe“mechanics”ofDirectMarketingSampling,sorting,selections,countsandoutputformatsEvaluationWhichoffersworkbestforwhichtargetaudiences?Howdowebestconnectw/customers/prospects?Whatdataisstatisticallyrelatedtoresponse,trial,purchase,repeatRefinement,Hi-Tech,M,A,O,T,D,Hi-Analytic,M,A,O,T,D,Hi-Marketing,M,A,O,T,D,Customerviewoftransactionsnotusuallyavailable,Hi-MarketingProfile,Databasepresent,Hi-AnalyticProfile,Sophisticateddatabaseand/ortools,Hi-TechProfile,ConsumerinsightsarebasedongeneralmarketresearchandaveragesCustomersmaybegroupedbasedonvalueatonepointintime,Models,targeting,butresultsarenotusedtoimprovemktgactivities,No/fewcustomeranalyses,Investmentscenterondevelopingcommuni-cationsagainstbroadaudiences,Marketingtendstobeeventoriented,Nomarketingtovalue-basedcustomersegments,BestPracticesBenchmarks:VolkswagenUSA,CentralizeddatabaseholdsandtrackscustomerinformationStakehold