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IntegratingAllDirectMarketingChannelstoBuildCustomerLoyaltyABMWCaseStudyKayMadati,RelationshipMarketingManagerBMWArthurMiddletonHughes,VPforStrategicPlanningM\SDatabaseMarketingTheDMA84thAnnualMcCormickPlace,ChicagoTuesday,October30th200110:00AM–11:15AM1950-2000Brandsbuiltbymassadvertising1985-2000DatabaseMarketingarrived,butnotintegratedwithmassadvertising.1996-2000TheInternetarrived,butnotintegratedwithDBMormassadvertising2001BMWbringsthemalltogetherHowbrandmarketinghasevolvedBMWcustomerswant:ArealizationofthebrandpromisePerformance,safety,technology,innovationRecognitionServiceInformationConvenienceHelpfulnessBMWBuyersNotNecessarilyDrivenbyPricePersonalProfitfromPurchase= a(usefulnessofproduct) +b(perceivedbrandvalue) -c(moneycost) -d(timeorinconvenience)HowBMWBuyersMakePurchaseDecisionsConstructors
Peoplewhobuilddatabases
Merge/Purge,Hardware,SoftwareCreators
PeoplewhounderstandstrategyBuildloyaltyandrepeatsalesYouneedbothkinds!TwokindsofdatabasemarketingpeopleIn2000,BMWbuiltarobustcustomerandprospectdatabasedesignedto:ProvideacomprehensiveviewoftheautomotiveandfinancialservicesBMWcustomerDelivershortterm,incrementalrevenuethroughopportunisticmarketingprogramsIncreasecustomerloyaltythroughunderstandingandabilitytodeliverrelevant,timelycommunicationSecureBMW’splaceinitscustomers’livesbyidentifyingwhichhouseholdsaregoodtargetsforadditionalBMWpurchasesSituationAnalysisBMWnowhasacentralsystemofmeasurementTheBMWReportCentermonitorscommunicationsandresponsefromprospectsandcustomersMeasurementincludescostperresponseandcostpersaleBMWnowhastheabilitytoviewprospectsaswellcustomersinitsuniverseThisallowsBMWtoviewthefullshopper-ownercyclefromfirstpointofcontact,throughsaleandcrosssaleThenewmarketingdatabasecontainsabroadrangeofinformationontheBMWconsumerCampaign,response,andfinancialservicedata190appendedindividualandhouseholddatapointsBMWSituationIIAllowingafullviewoftheBMWcustomerdeliverssmartertargetingandprofit-generatingupsellandcrosssellopportunitiesWhichvehicleownersarebesttargetsforcreditcards?HowcanBMWcardownersincreasethelifetimevalueofthevehicleowners?Wherearethepocketsofourmostprofitablecustomers?WhichcustomerswilldeliveradditionalrevenuethroughfinancialservicesproductsaftertheyhavedisposedoftheirBMW?BMWSituationIIIImprovetheeffectivenessofmarketingprogramsintheyears2001–2003inorderto:ReturntoBMWthecostofthedatabasebuildPayfordatabasemaintenancegoingforwardIncreasetherevenuepercustomerovertimeIncreasetheprofitpercustomerIncreasethelifetimevalueofthecombinedBMWautomobileandfinancialservicescustomerBMWDatabaseMarketingGoalsConsistentmeasurementandenhancementofBMWmarketingprogramsAbilitytoprioritizeprospectsandcustomersbasedontheirlikelihoodtobuyIdentificationof“lowhangingfruit”–programsthatcanbequicklyimplementedtogeneraterevenueintheshorttermRefinementofcustomercommunicationsTestingresultsagainstControlGroupsHowBMWmeasuresreturnoninvestmentControlgroupsmeasuretheeffectivenessofeachprogramNon-mailedgroupsthataremeasuredagainstthemailedgroupsReportsontheBMWReportCenterprovideaconsistentformofmeasurementCostperlead,responseandsalemeasurementCross-penetrationofproductpurchasesControlsandMeasurementIncreasedcommunicationeffectivenessIntegrateddatabaseusedbyallgroupsIncreasedefficiency––TherightinformationtotherightcustomerattherighttimeReducedcommunicationexpenseFewerpiecesmailedwithhighereffectivenessIncreasedcustomerparticipationIncreasedcustomersatisfactionIncreasedcorporateandcenterprofitsAhigherlevelofdatafromandaboutBMWcustomersBenefitstoBMWRelationshipMarketingStrategyAllprogramsarebuiltonastate-of-the-artcustomerrelationshipmanagementdatabasewhichprovides:MoreinformationonownersandprospectsthanBMWhaseverassembledbeforePowerfultoolstosupportBMWloyaltyandprospectconversionprogramsAutomatedcommunicationthatsupportstheOwnerExperienceTheDatabaseIncreasecustomerloyaltyIncreaseprospectconversiontosalesratioIncreasevehiclesalesthroughexistingcustomersMaintainexistingBMWhouseholdrecordsKeepcommunicationcostsdownwhileincreasingeffectivenessDevelopaconsistentprocessofprogrammeasurement2001DatabaseMarketingGoalsUsethemarketingdatabasetorealizeacommunicationsdialoguewithbothourprospectsandourcustomersSystematicuseofcustomizedinformationtoattractandretaincustomersFacilitatemutuallybeneficialandrelevantinformationexchangesIncreaseownerloyaltyandcustomeracquisitionratesStrengthenBMWbrandperceptionattheindividualcustomerlevelBMWRelationshipMarketingObjectivesConsumerCommunicationsWelcomeKitLoyaltyCommunicationsProspectPrioritization/ExtendingtheDialogueBMWMagazineEnhancementsBMWOwner’’sCircleFinancialServicesProgramsCreditCard&BankingCustomerAcquisitionCrossSellandUpSellMarketingOpportunistic“QuickWin””ProgramsCoreCommunicationsProgramTheOwnerWelcomeKitAstatickitInformationonBMW,theBrandBMW,theCompanyBMW,theProductsItwelcomedpeopletothebrand,butofferednorealtasteoftheBMWExperienceTheoldwelcomekitwas:Apersonalwelcomekit–thatownersrealizewascreatedjustforthemItarriveswithinthefirst30daysItisadialogueopener,aninvitationtotheBMWexperiencethatextendsoverafullyearEachofthekitpiecesenhanceyourperceptionoftheBMWBrandandtheExperienceMultiplecallstoactionwhichleadyoudeeperintotheExperienceItinherentlyfostersthecollectionofinformationneededforfurtherrelationshipdialogueThenewBMWwelcomekitWeeklyfeedofnewownersfromthedatabaseRapidrecordcleanupformailingWeeklyfulfillmentofcorrectednames,addressesanddatatothewelcomekitprogramMonthlymaintenanceofthedatabasewhichsupportsallownerandprospectcommunicationsTheDatabaseSupportstheWelcomeKitTask:ProvideindividualcustomerdataforpersonalizedwelcomekitfulfillmentStrategy:ProvidenewownerpersonalizedfulfillmentinformationonaweeklybasisRecoverkeyinformationrequestedMaintainownerfilesbasedoncollectedinformationforfutureprogramsIdentifycustomersbymodel,financialstatus,andpreparatorysegmentation(i.e.loyalty,activity,etc.)WelcomeKitFulfillmentProcessLoyaltyandOwnerCommunicationsBMWcustomersarefiercelyloyaltotheirbrandLoyaltycanbemeasured:itistherepurchaserateSuccessfulloyaltyisatwowaystreetCustomerloyaltycanbestrengthenedbyrelevantpersonalcommunicationsBMWLoyaltyinitiativescovertheentireownershipexperienceWelcomeKit,Newsletters,BMWMagazine,MultipleVehicleOwnerprogramsTheLoyaltySituationIncreaseBMWprofitsthrough:IncreasedrepurchasebyexistingownersIncreasingthenumberofBMW’sperhouseholdIncreasedsalesofBMWpreviouslyownedvehiclesIncreaseduse/purchaseofBMWFSproductsEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:OwnerswhogetthecommunicationsOwnerCommunicationGoalsGeneralGoals:ImmersionintheBMWExperiencePromotionofOwner’’sCirclePurchaseofBMWaccessoriesTo3and4yearBMWowners.Goals:IncreasetherepurchaserateMultipleBMWsineachhouseholdWidespreaduseofBMWFinancialServicesproductsTonewBMWowners,Goals:PurchaseBMWfinancialservicesproductsCaptureinformationabouttheirpreferences,lifestyles,automobileinterests,etc.usefulforfurtherdialogLoyaltyBuildingNewslettersOngoingcollectionofnewsandinformationofinteresttoBMWownersOwnersurveystodeterminepreferencesfor:News,information,andtopicsCommunicationChannel(emailorprint)FrequencyBeginwithaprintednewslettertogatheremailaddressesMovetoemailnewslettersasquicklyaspossibleMultipleofferstogenerateownerresponsePromotetheuseofOwner’’sCircleNewsletterStrategyNewproductsBMWawardsSportsstarsthatdriveBMWsRatingsbyleadingcarmagazinesWhytheBMWenginesaresuperiorThehistoryofBMWEventcalendarMagazinereprintsSponsorshipsBMWBrandValuesRoadsideAssistanceServicingrequirementsBMWInsuranceBMWcreditcardsBMWAccessoriesDrivingEventsBMWtradeinpricesBMWOwnerClubsOwner’sCircleWorldnewsfeaturingBMWNewsletterContentBMWMagazineBMWpublishesahigh-valuemagazinetoitsownersinthefirsttwoyearsaftertheirpurchaseBecauseofitsuniversaldistribution,themagazinecanbemorethanamagazineItcanbeadatacollectiontoolforfurtherpersonalizedcommunicationsMagazineStrategy-BeforeCaptureadditionalinformationoncustomersEmailAddressesPurchaseIntentions:ownersidentifyingthemselvesasenteringthepurchasecycleAllowBMWownerstopurchasemerchandiseProvidedirectiontoBMWOnlineStoreforpurchasePushregistrationonOwner’sCircleEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:OwnerswhogetthecommunicationsMagazineStrategyTodayExtendingtheDialogue–ProspectMessagesIncreaseprospectconversiontosellmoreBMWautomobilesProvideasteadyflowof““qualified”leadstoBMWCentersMakecommunicationsinteractiveContinuallyimprovetheconversionratesbybetterprospectingMeasuretheconversionratebyCenter,Region,ProspectLifestyle,IncomeGoalsoftheProspectManagementSystemProspectsdevelopedfromallcontactsources:Telephone,DirectMail,AutoShows,Events,InternetRapidlyqualifiedandscoredCentersreceivequalifiedleadselectronicallywithin48hoursofreceiptProspectsgetBMWmessagewithin48hoursEveryleadtrackedelectronically,withdaily,weekly,&monthlyreportsforBMWmanagementonthewebAutomatedDatabaseProcessesScoringmodelsforincomingprospectrequestsdeterminepriorityFocusonpriorityA&BprospectsMovingtolowerprioritiesasthesystemsprovesitselfFullyintegratedcreativeimplementationinbothelectronicandpapermediaaswellaseventsTestscoringmodelsagainstanticipatedresponseandadjustasneededUtilizea5%controlgroupforaperiodofoneyearforreportingcomparisonsTestingandImplementationStrategySalesResponseToelectronicvs.paperPredeterminedvs.RelationalOffersandincentivesModelingsuccess%prospectconversion(historical)MediapreferenceautomatedsystemCostofprogramCostofsalesMeasurementsoftheProspectProgramMeasuringsuccessthroughthedealersScoredleadssenttoeachdealerConversionsaremeasuredmonthlyEachdealerconversationratiocalculatedProgramsuccessmeasuredbycomparingdealertodealerconversionratioDealer,Market,RegionandNationalaverageconversionratioscreatemeasurablebenchmarksAboveaveragedealersmanagetheirleadsbetterDirectMailandE-mailintegratedcommunicationplanAlternatingcontentdeliverymediumsEachreinforcingtheonethatcamebeforeitUseofdatabaseinformationtodrivecustomizationandrelevanceEachcommunicationintroducinganewpieceoftheBMWExperienceAllcommunicationstieintowebactivitiesIntegrationwithoff-lineandonlinemarketingactivitiesProspectsgiventheopportunitytoopt-outatanypointProspectsremovedfromprogramiftheypurchaseavehicleProspectProgramCommunicationsStrategyImmerseandinvitetheprospectintotheBMWExperienceReinforcetheinitialcontactwithBMWEducateastothedepthoftheBrandProductsandServicesPointtheprospecttowardsatestdriveandthedealerReinforcecoremarketingcommunicationobjectivesabout:BrandValuesBrandHeritageProductattributesTheBMWOwnershipExperienceProgramCommunicationsObjectivesNewproductsBMWintheNewsBMWTechnologyandInnovationBMWSafetyThehistoryofBMWandBMWBrandValuesEventinvitationsTestdriveincentivesBMWgiftsMagazinereprintsBMWFinancialServicesproductsProgramContentObjectivesSellmorecarsby:ImmediateScoringofProspectsImmediateelectronicCenternotificationofleadsImmediatecommunicationswiththeprospectContinuallyengagethecustomerintheExperienceProvidemoreinformationonthedepthoftheBrandReducethecostpercarsoldProvideManagementwithaccurate&timelyknowledgeoftheprospectandsalesprocessIncreasetheoveralleffectivenessoffutureprospectingprogramsbylearningfromthisoneProspectSystemBenefitsQuickwins:XfactorprogramsTheBMWDatabaseoffersahugeopportunitytoutilizeinformationtorefineBMWprogramsXFactorprogramsarebuiltondatamining,anddeliver:HighlyeffectivemarketingprogramsIncrementalrevenueopportunitiesLowcostpersaleIncreasedcustomer/prospectcontactandsatisfactionXFactorSituationTheLoyaltyandProspectPrograms,combinedwiththedatabase,offergreatpotentialforcreative,interactiveXfactorprograms:ContestsProgramsforWomen/MinoritiesSpecialEventsReferralProgramsCertifiedPreviouslyOwnedCarsSecondBMWsineveryhomeLifestyleProgramsCongratulatoryMailingsto3+BMWOwnersXFactorInitiativesPlusimprovedreporting,querydevelopmentandahalfdozennewideastobedevelopedandimplementedduringtheyearXFactor:somethingneweveryquarterIdentifywaystobuildrelationshipswithfemaleowners:BringthemtotheBrand,andkeepthemlongerAppealtotheiruniqueneedsRecognizethepurchasingpowerandinfluencethatautomotivemarketerstypicallyignoreProvidetoolsthatreducepre-dealervisitanxietyTailoredcommunicationsthathighlightwhatwomenarelookingforLivechatsupportbyfemalesDevelopanetworkoffemalesalesrepsX1Women’’sProgramIdentifyhouseholdsthatareprimeprospectstopurchaseasecondBMWAnalyzemultiplepurchasehouseholdsTargetgroupsmostlikelytopurchaseaCPOvehicleHouseholdswithteenagersoryoungadultsIdentifyseasonality––graduation,etc.TesttheprogramoncurrentBMWowners,thenrollouttoprospectsX2:CertifiedPreviouslyOwnedProgramIdentifythosecurrentownerswhoaremostlikelytopurchaseanew7SeriesBMWInvitethesespecialpeopletobeamongasmallgroupwhoareallowedtopreviewthenew7seriesAppealtotheirappreciationofinclusionbyaskingfortheirfeedbackandopinionAllowthemtobeamongthefirsttotestdriveNotifythemperiodicallyofthestatusofthevehicleX3:Series7LaunchIdentifythosecurrentownerswhoaremostlikelytopurchasetheMINICreateauniquelifestylemessagetotheseownersAppealtotheearlyadapterFocusonactivelifestylesGetthemtopreviewonthewebandoptintomarketingmessagesX4:MiniLaunchDevelopaprogramthatuniquelyappealstotheBMWownerCommunicatethepersonalityofthebrandReinforcetherelationshipthattheBMWownerhaswiththeircarAttheanniversaryofpurchase,sendane-cardtoownersDirectthemtoamicrositetogetane-birthdaygiftX5:BirthdayCardsDatabaseprovidesthecentralfocusfor:OwnerloyaltycommunicationprogramsProspectcommunicationsOpportunistic““QuickWin””ProgramsMeasurementofsuccessBuildingBMWBrandLoyaltySummary:BMWhasputitalltogether9、静夜四无无邻,荒居居旧业贫。。。1月-231月-23Saturday,January7,202310、雨中黄叶叶树,灯下下白头人。。。20:29:3820:29:3820:291/7/20238:29:38PM11、以我独独沈久,,愧君相相见频。。。1月-2320:29:3820:29Jan-2307-Jan-2312、故人江海海别,几度度隔山川。。。20:29:3820:29:3820:29Saturday,January7,202313、乍见翻翻疑梦,,相悲各各问年。。。1月-231月-2320:29:3820:29:38January7,202314、他乡乡生白白发,,旧国国见青青山。。。07一一月月20238:29:38下下午20:29:381月-2315、比不了得得就不比,,得不到的的就不要。。。。一月238:29下下午1月-2320:29January7,202316、行动出出成果,,工作出出财富。。。2023/1/720:29:3820:29:3807January202317、做前,能够够环视四周;;做时,你只只能或者最好好沿着以脚为为起点的射线线向前。。8:29:38下午8:29下下午20:29:381月-239、没没有有失失败败
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