LEVERAGING YOUR CUSTOMER BASE

1
LEVERAGING YOUR CUSTOMER BASE

• How does your business stack up?
• WINNING OR WASTING
• ECMOD - November 2001
• Professor Peter M. Tomkins
• DM Management Consultants Ltd.
• Tel [phone]
• E-Mail pmt_at_dmmc.co.uk

2
OPTIMISING YOUR CUSTOMER RELATIONSHIPS

• Introductions/Some Key Issues
• Catalogue/Home Shopping Context Statistics
• The Key Questions for your Business
• Checklists Comfort/Discomfort factors

• Checklists (contd.) Comfort/Discomfort factors
• Think Outside Your Box
• Speaker Panel Issues
• Session Agenda

3
CATALOGUE/HOME SHOPPING STATISTICAL
CONTEXTDMIS 2000/2001

• Household Letter boxes
• 54 Personal Mail
• 20 Direct Mail
• 13-14 of Direct Mail is
• Catalogue/Home Shopping largest consumer
  segment
• Over 50 of this is actually requested
• Response over 10 (12 for big books)

• Smaller niche mailings achieve highest response
  (to 15)
• 1o Existing Buyers (11)
• 2o Enquirers (8)
• 3o Rented/Overlays (5)
• Preferred Response Channels
• 1o Direct Mail
• 2o Phone
• 3o Fax
• 4o E-Mail
• 20 billion Income for Consumer Advertisers!!!

4
KEY QUESTIONS FOR YOUR BUSINESS

• Do you really try to know and understand your
  Customers?
• within prime segments/clusters
• Test your own Business
• through your Customers eyes/mindset
• Do this within context of your own
  Growth/Development Plans
• Extraction, Build, Sell modes
• Maximise Loyalty/Relationship Realities
• Reassurance/Service/Habit/Communications

5
CHECKLISTS COMFORT/DISCOMFORT FACTORS

• How many catalogues/how often?
• Dustbin or Real Relationship
• Role of Retail Outlets
• Convenience, Display
• Relevance/Reality of Prize Draws/Offers
• Involvement or Turn Off
• Obsessional?
• Me too, sameism, whos eyes?
• Cross-selling
• up/across, working all the channels
• People Factor I
• Leadership/Direction

6
CHECKLISTS COMFORT/DISCOMFORT FACTORS contd.

• People Factor II
• Training, Commitment, Focus, Face/Voice
• Media Intergration
• How effective within your business?
• Delivery
• Utilise the evolving options
• Data Segments/Overlays
• LTV governs pay-back
• How relevantly innovative?
• NPD, JVs, etc.
• Service/Satisfaction
• The Reality!!
• The High Cost of Failure
• Retention v/v Recruitment

7
REALLY DO THINK OUTSIDE YOUR BOX

• Do you take/make the time to do this effectively?
  i.e. create a methodology
• Use your Agencies/Consultancies/ Advisers etc. to
  facilitate this.
• Seek external BEST PRACTICE benchmarks not
  simply internal

REMEMBER YOUR CUSTOMERS ARE YOUR PRIME ASSET -
DONT ABUSE THEIR TRUST!!!!!
8
SPEAKER PANEL VIEWS
Many of these issues now taken forward by our
speakers, viz.

• Segments/Relationships/Offers
• Frequency/Know your Customers/Cross
  Selling/Trade-ups/Multi Channels
• Re-Working/Activation Dormant Customers.

9
SESSION AGENDA

• Your speakers views
• 20 mins
• Panel Forum Issues Debate
• 8 mins
• Over to You (QA)
• 8 mins
• Summary Overview
• 2 mins
• Thank you!