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1、,Integrating All Direct Marketing Channels to Build Customer LoyaltyA BMW Case StudyKay Madati,Relationship Marketing Manager BMWArthur Middleton Hughes,VP for Strategic Planning MS Database MarketingThe DMA 84th AnnualMcCormick Place,ChicagoTuesday,October 30th 2001 10:00 AM 11:15 AM,管理资源吧（），提供海量管理
2、资料免费下载！,1950-2000 Brands built by mass advertising1985-2000 Database Marketing arrived,but not integrated with mass advertising.1996-2000 The Internet arrived,but not integrated with DBM or mass advertising2001 BMW brings them all together,How brand marketing has evolved,管理资源吧（），提供海量管理资料免费下载！,BMW cu
3、stomers want:A realization of the brand promisePerformance,safety,technology,innovationRecognitionServiceInformationConvenienceHelpfulness,BMW Buyers Not Necessarily Driven by Price,管理资源吧（），提供海量管理资料免费下载！,Personal Profit from Purchase=a(usefulness of product)+b(perceived brand value)-c(money cost)-d(
4、time or inconvenience),How BMW Buyers Make Purchase Decisions,管理资源吧（），提供海量管理资料免费下载！,Constructors People who build databases Merge/Purge,Hardware,SoftwareCreators People who understand strategy Build loyalty and repeat salesYou need both kinds!,Two kinds of database marketing people,管理资源吧（），提供海量管理资料免
5、费下载！,In 2000,BMW built a robust customer and prospect database designed to:Provide a comprehensive view of the automotive and financial services BMW customerDeliver short term,incremental revenue through opportunistic marketing programsIncrease customer loyalty through understanding and ability to d
6、eliver relevant,timely communicationSecure BMWs place in its customers lives by identifying which households are good targets for additional BMW purchases,Situation Analysis,管理资源吧（），提供海量管理资料免费下载！,BMW now has a central system of measurementThe BMW Report Center monitors communications and response fr
7、om prospects and customersMeasurement includes cost per response and cost per saleBMW now has the ability to view prospects as well customers in its universeThis allows BMW to view the full shopper-owner cycle from first point of contact,through sale and cross saleThe new marketing database contains
8、 a broad range of information on the BMW consumerCampaign,response,and financial service data 190 appended individual and household data points,BMW Situation II,管理资源吧（），提供海量管理资料免费下载！,Allowing a full view of the BMW customer delivers smarter targeting and profit-generating up sell and cross sell oppo
9、rtunitiesWhich vehicle owners are best targets for credit cards?How can BMW card owners increase the lifetime value of the vehicle owners?Where are the pockets of our most profitable customers?Which customers will deliver additional revenue through financial services products after they have dispose
10、d of their BMW?,BMW Situation III,管理资源吧（），提供海量管理资料免费下载！,Improve the effectiveness of marketing programs in the years 2001 2003 in order to:Return to BMW the cost of the database buildPay for database maintenance going forwardIncrease the revenue per customer over timeIncrease the profit per customer
11、Increase the lifetime value of the combined BMW automobile and financial services customer,BMW Database Marketing Goals,管理资源吧（），提供海量管理资料免费下载！,Consistent measurement and enhancement of BMW marketing programsAbility to prioritize prospects and customers based on their likelihood to buyIdentification o
12、f“low hanging fruit”programs that can be quickly implemented to generate revenue in the short termRefinement of customer communicationsTesting results against Control Groups,How BMW measures return on investment,管理资源吧（），提供海量管理资料免费下载！,Control groups measure the effectiveness of each programNon-mailed
13、 groups that are measured against the mailed groupsReports on the BMW Report Center provide a consistent form of measurementCost per lead,response and sale measurementCross-penetration of product purchases,Controls and Measurement,管理资源吧（），提供海量管理资料免费下载！,Increased communication effectivenessIntegrated
14、 database used by all groupsIncreased efficiency The right information to the right customer at the right timeReduced communication expenseFewer pieces mailed with higher effectivenessIncreased customer participationIncreased customer satisfactionIncreased corporate and center profitsA higher level
15、of data from and about BMW customers,Benefits to BMW,管理资源吧（），提供海量管理资料免费下载！,Relationship Marketing Strategy,管理资源吧（），提供海量管理资料免费下载！,All programs are built on a state-of-the-art customer relationship management database which provides:More information on owners and prospects than BMW has ever assembled
16、beforePowerful tools to support BMW loyalty and prospect conversion programsAutomated communication that supports the Owner Experience,The Database,管理资源吧（），提供海量管理资料免费下载！,Increase customer loyaltyIncrease prospect conversion to sales ratioIncrease vehicle sales through existing customersMaintain exis
17、ting BMW household recordsKeep communication costs down while increasing effectivenessDevelop a consistent process of program measurement,2001 Database Marketing Goals,管理资源吧（），提供海量管理资料免费下载！,Use the marketing database to realize a communications dialogue with both our prospects and our customersSyste
18、matic use of customized information to attract and retain customersFacilitate mutually beneficial and relevant information exchangesIncrease owner loyalty and customer acquisition ratesStrengthen BMW brand perception at the individual customer level,BMW Relationship Marketing Objectives,管理资源吧（），提供海量
19、管理资料免费下载！,Consumer CommunicationsWelcome KitLoyalty CommunicationsProspect Prioritization/Extending the DialogueBMW Magazine EnhancementsBMW Owners CircleFinancial Services ProgramsCredit Card&Banking Customer AcquisitionCross Sell and Up Sell MarketingOpportunistic“Quick Win”Programs,Core Communica
20、tions Program,管理资源吧（），提供海量管理资料免费下载！,The Owner Welcome Kit,管理资源吧（），提供海量管理资料免费下载！,A static kitInformation onBMW,the BrandBMW,the CompanyBMW,the ProductsIt welcomed people to the brand,but offered no real taste of the BMW Experience,The old welcome kit was:,管理资源吧（），提供海量管理资料免费下载！,A personal welcome kit
21、that owners realize was created just for themIt arrives within the first 30 daysIt is a dialogue opener,an invitation to the BMW experience that extends over a full yearEach of the kit pieces enhance your perception of the BMW Brand and the ExperienceMultiple calls to action which lead you deeper in
22、to the ExperienceIt inherently fosters the collection of information needed for further relationship dialogue,The new BMW welcome kit,管理资源吧（），提供海量管理资料免费下载！,Weekly feed of new owners from the databaseRapid record cleanup for mailingWeekly fulfillment of corrected names,addresses and data to the welco
23、me kit programMonthly maintenance of the database which supports all owner and prospect communications,The Database Supports the Welcome Kit,管理资源吧（），提供海量管理资料免费下载！,Task:Provide individual customer data for personalized welcome kit fulfillmentStrategy:Provide new owner personalized fulfillment informa
24、tion on a weekly basisRecover key information requestedMaintain owner files based on collected information for future programsIdentify customers by model,financial status,and preparatory segmentation(i.e.loyalty,activity,etc.),Welcome Kit Fulfillment Process,管理资源吧（），提供海量管理资料免费下载！,Loyalty and Owner C
25、ommunications,管理资源吧（），提供海量管理资料免费下载！,BMW customers are fiercely loyal to their brandLoyalty can be measured:it is the repurchase rateSuccessful loyalty is a two way streetCustomer loyalty can be strengthened by relevant personal communicationsBMW Loyalty initiatives cover the entire ownership experie
26、nceWelcome Kit,Newsletters,BMW Magazine,Multiple Vehicle Owner programs,The Loyalty Situation,管理资源吧（），提供海量管理资料免费下载！,Increase BMW profits through:Increased repurchase by existing ownersIncreasing the number of BMWs per householdIncreased sales of BMW previously owned vehiclesIncreased use/purchase of
27、 BMW FS productsEach program effectiveness measured by control groups:Control Group:Owners who are not sent the communications Test Group:Owners who get the communications,Owner Communication Goals,管理资源吧（），提供海量管理资料免费下载！,General Goals:Immersion in the BMW ExperiencePromotion of Owners CirclePurchase
28、of BMW accessoriesTo 3 and 4 year BMW owners.Goals:Increase the repurchase rateMultiple BMWs in each householdWidespread use of BMW Financial Services productsTo new BMW owners,Goals:Purchase BMW financial services productsCapture information about their preferences,lifestyles,automobile interests,e
29、tc.useful for further dialog,Loyalty Building Newsletters,管理资源吧（），提供海量管理资料免费下载！,Ongoing collection of news and information of interest to BMW ownersOwner surveys to determine preferences for:News,information,and topicsCommunication Channel(email or print)FrequencyBegin with a printed newsletter to g
30、ather email addressesMove to email newsletters as quickly as possibleMultiple offers to generate owner responsePromote the use of Owners Circle,Newsletter Strategy,管理资源吧（），提供海量管理资料免费下载！,New productsBMW awardsSports stars that drive BMWsRatings by leading car magazinesWhy the BMW engines are superior
31、The history of BMWEvent calendarMagazine reprintsSponsorshipsBMW Brand Values,Roadside AssistanceServicing requirementsBMW InsuranceBMW credit cardsBMW AccessoriesDriving EventsBMW trade in pricesBMW Owner ClubsOwners CircleWorld news featuring BMW,Newsletter Content,管理资源吧（），提供海量管理资料免费下载！,BMW Magazi
32、ne,管理资源吧（），提供海量管理资料免费下载！,BMW publishes a high-value magazine to its owners in the first two years after their purchaseBecause of its universal distribution,the magazine can be more than a magazineIt can be a data collection tool for further personalized communications,Magazine Strategy-Before,管理资源吧（
33、），提供海量管理资料免费下载！,Capture additional information on customersEmail Addresses Purchase Intentions:owners identifying themselves as entering the purchase cycleAllow BMW owners to purchase merchandiseProvide direction to BMW Online Store for purchasePush registration on Owners CircleEach program effectiv
34、eness measured by control groups:Control Group:Owners who are not sent the communications Test Group:Owners who get the communications,Magazine Strategy Today,管理资源吧（），提供海量管理资料免费下载！,Extending the Dialogue Prospect Messages,管理资源吧（），提供海量管理资料免费下载！,Increase prospect conversion to sell more BMW automobile
35、sProvide a steady flow of“qualified”leads to BMW CentersMake communications interactiveContinually improve the conversion rates by better prospectingMeasure the conversion rate by Center,Region,Prospect Lifestyle,Income,Goals of the Prospect Management System,管理资源吧（），提供海量管理资料免费下载！,Prospects develope
36、d from all contact sources:Telephone,Direct Mail,Auto Shows,Events,InternetRapidly qualified and scoredCenters receive qualified leads electronically within 48 hours of receiptProspects get BMW message within 48 hoursEvery lead tracked electronically,with daily,weekly,&monthly reports for BMW manage
37、ment on the web,Automated Database Processes,管理资源吧（），提供海量管理资料免费下载！,Scoring models for incoming prospect requests determine priorityFocus on priority A&B prospectsMoving to lower priorities as the systems proves itselfFully integrated creative implementation in both electronic and paper media as well
38、 as eventsTest scoring models against anticipated response and adjust as neededUtilize a 5%control group for a period of one year for reporting comparisons,Testing and Implementation Strategy,管理资源吧（），提供海量管理资料免费下载！,SalesResponseTo electronic vs.paperPredetermined vs.RelationalOffers and incentives Mo
39、deling success%prospect conversion(historical)Media preference automated systemCost of programCost of sales,Measurements of the Prospect Program,管理资源吧（），提供海量管理资料免费下载！,Measuring success through the dealers,Scored leads sent to each dealerConversions are measured monthlyEach dealer conversation ratio
40、calculatedProgram success measured by comparing dealer to dealer conversion ratioDealer,Market,Region and National average conversion ratios create measurable benchmarksAbove average dealers manage their leads better,管理资源吧（），提供海量管理资料免费下载！,Direct Mail and E-mail integrated communication planAlternati
41、ng content delivery mediumsEach reinforcing the one that came before itUse of database information to drive customization and relevanceEach communication introducing a new piece of the BMW ExperienceAll communications tie in to web activitiesIntegration with off-line and online marketing activitiesP
42、rospects given the opportunity to opt-out at any pointProspects removed from program if they purchase a vehicle,Prospect Program Communications Strategy,管理资源吧（），提供海量管理资料免费下载！,Immerse and invite the prospect into the BMW ExperienceReinforce the initial contact with BMWEducate as to the depth of the B
43、randProducts and ServicesPoint the prospect towards a test drive and the dealerReinforce core marketing communication objectives about:Brand ValuesBrand HeritageProduct attributesThe BMW Ownership Experience,Program Communications Objectives,管理资源吧（），提供海量管理资料免费下载！,New productsBMW in the NewsBMW Techn
44、ology and InnovationBMW SafetyThe history of BMW and BMW Brand ValuesEvent invitationsTest drive incentivesBMW giftsMagazine reprintsBMW Financial Services products,Program Content Objectives,管理资源吧（），提供海量管理资料免费下载！,Sell more cars by:Immediate Scoring of ProspectsImmediate electronic Center notificati
45、on of leadsImmediate communications with the prospectContinually engage the customer in the ExperienceProvide more information on the depth of the BrandReduce the cost per car soldProvide Management with accurate&timely knowledge of the prospect and sales processIncrease the overall effectiveness of
46、 future prospecting programs by learning from this one,Prospect System Benefits,管理资源吧（），提供海量管理资料免费下载！,Quick wins:X factor programs,管理资源吧（），提供海量管理资料免费下载！,The BMW Database offers a huge opportunity to utilize information to refine BMW programsX Factor programs are built on data mining,and deliver:High
47、ly effective marketing programsIncremental revenue opportunitiesLow cost per saleIncreased customer/prospect contact and satisfaction,X Factor Situation,管理资源吧（），提供海量管理资料免费下载！,The Loyalty and Prospect Programs,combined with the database,offer great potential for creative,interactive X factor programs
48、:ContestsPrograms for Women/MinoritiesSpecial EventsReferral ProgramsCertified Previously Owned CarsSecond BMWs in every homeLifestyle ProgramsCongratulatory Mailings to 3+BMW Owners,X Factor Initiatives,管理资源吧（），提供海量管理资料免费下载！,Plus improved reporting,query developmentand a half dozen new ideas to be
49、developed and implemented during the year,X Factor:something new every quarter,管理资源吧（），提供海量管理资料免费下载！,Identify ways to build relationships with female owners:Bring them to the Brand,and keep them longerAppeal to their unique needsRecognize the purchasing power and influence that automotive marketers
50、typically ignoreProvide tools that reduce pre-dealer visit anxietyTailored communications that highlight what women are looking forLive chat support by femalesDevelop a network of female sales reps,X1 Womens Program,管理资源吧（），提供海量管理资料免费下载！,Identify households that are prime prospects to purchase a sec
