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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、静夜夜四无无邻,,荒居居旧业业贫。。。1月-231月-23Saturday,January7,202310、雨中黄叶叶树,灯下下白头人。。。20:28:0420:28:0420:281/7/20238:28:04PM11、以我独独沈久,,愧君相相见频。。。1月-2320:28:0420:28Jan-2307-Jan-2312、故人江江海别,,几度隔隔山川。。。20:28:0420:28:0520:28Saturday,January7,202313、乍见翻翻疑梦,,相悲各各问年。。。1月-231月-2320:28:0520:28:05January7,202314、他乡生白白发,旧国国见青山。。。07一月月20238:28:05下下午20:28:051月-2315、比不了了得就不不比,得得不到的的就不要要。。。一月238:28下午午1月-2320:28January7,202316、行动出成成果,工作作出财富。。。2023/1/720:28:0520:28:0507January202317、做前前,能能够环环视四四周;;做时时,你你只能能或者者最好好沿着着以脚脚为起起点的的射线线向前前。。。8:28:05下下午8:28下下午午20:28:051月-239、没有失败败,只有暂暂时停止成成功!。1月-231月-23Saturday,J
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