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1、Page-1Page-2Integrating 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
2、吧（），提供海量管理资料免费下载！Page-3u1950-2000 Brands built by mass advertisingu1985-2000 Database Marketing arrived,but not integrated with mass advertising.u1996-2000 The Internet arrived,but not integrated with DBM or mass advertisingu2001 BMW brings them all togetherHow brand marketing has evolved管理资源吧（），提供海
3、量管理资料免费下载！Page-4uBMW customers want:uA realization of the brand promiseuPerformance,safety,technology,innovationuRecognitionuServiceuInformationuConvenienceuHelpfulnessBMW Buyers Not Necessarily Driven by Price管理资源吧（），提供海量管理资料免费下载！Page-5Personal Profit from Purchase=a (usefulness of product)+b (perc
4、eived brand value)-c (money cost)-d (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！Page-6uConstructors People who build databases Merge/Purge,Hardware,SoftwareuCreators People who understand strategy Build loyalty and repeat salesuYou need both kinds!Two kinds of d
5、atabase marketing people管理资源吧（），提供海量管理资料免费下载！Page-7uIn 2000,BMW built a robust customer and prospect database designed to:uProvide a comprehensive view of the automotive and financial services BMW customeruDeliver short term,incremental revenue through opportunistic marketing programsuIncrease custo
6、mer loyalty through understanding and ability to deliver relevant,timely communicationuSecure 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！Page-8uBMW now has a central system of measurementuThe
7、BMW Report Center monitors communications and response from prospects and customersuMeasurement includes cost per response and cost per saleuBMW now has the ability to view prospects as well customers in its universeuThis allows BMW to view the full shopper-owner cycle from first point of contact,th
8、rough sale and cross saleuThe new marketing database contains a broad range of information on the BMW consumeruCampaign,response,and financial service data u190 appended individual and household data pointsBMW Situation II管理资源吧（），提供海量管理资料免费下载！Page-9uAllowing a full view of the BMW customer delivers
9、smarter targeting and profit-generating up sell and cross sell opportunitiesuWhich vehicle owners are best targets for credit cards?uHow can BMW card owners increase the lifetime value of the vehicle owners?uWhere are the pockets of our most profitable customers?uWhich customers will deliver additio
10、nal revenue through financial services products after they have disposed of their BMW?BMW Situation III管理资源吧（），提供海量管理资料免费下载！Page-10uImprove the effectiveness of marketing programs in the years 2001 2003 in order to:uReturn to BMW the cost of the database builduPay for database maintenance going forw
11、arduIncrease the revenue per customer over timeuIncrease the profit per customeruIncrease the lifetime value of the combined BMW automobile and financial services customerBMW Database Marketing Goals管理资源吧（），提供海量管理资料免费下载！Page-11uConsistent measurement and enhancement of BMW marketing programsuAbility
12、 to prioritize prospects and customers based on their likelihood to buyuIdentification of“low hanging fruit”programs that can be quickly implemented to generate revenue in the short termuRefinement of customer communicationsuTesting results against Control GroupsHow BMW measures return on investment
13、管理资源吧（），提供海量管理资料免费下载！Page-12uControl groups measure the effectiveness of each programuNon-mailed groups that are measured against the mailed groupsuReports on the BMW Report Center provide a consistent form of measurementuCost per lead,response and sale measurementuCross-penetration of product purch
14、asesControls and Measurement管理资源吧（），提供海量管理资料免费下载！Page-13uIncreased communication effectivenessuIntegrated database used by all groupsuIncreased efficiency The right information to the right customer at the right timeuReduced communication expenseuFewer pieces mailed with higher effectivenessuIncreas
15、ed customer participationuIncreased customer satisfactionuIncreased corporate and center profitsuA higher level of data from and about BMW customersBenefits 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！Page-15uAll programs are built on a state-of-the-art customer re
16、lationship management database which provides:uMore information on owners and prospects than BMW has ever assembled beforeuPowerful tools to support BMW loyalty and prospect conversion programsuAutomated communication that supports the Owner ExperienceThe Database管理资源吧（），提供海量管理资料免费下载！Page-16uIncreas
17、e customer loyaltyuIncrease prospect conversion to sales ratiouIncrease vehicle sales through existing customersuMaintain existing BMW household recordsuKeep communication costs down while increasing effectivenessuDevelop a consistent process of program measurement2001 Database Marketing Goals管理资源吧（
18、），提供海量管理资料免费下载！Page-17uUse the marketing database to realize a communications dialogue with both our prospects and our customersuSystematic use of customized information to attract and retain customersuFacilitate mutually beneficial and relevant information exchangesuIncrease owner loyalty and custo
19、mer acquisition ratesuStrengthen BMW brand perception at the individual customer levelBMW Relationship Marketing Objectives管理资源吧（），提供海量管理资料免费下载！Page-18uConsumer CommunicationsuWelcome KituLoyalty CommunicationsuProspect Prioritization/Extending the DialogueuBMW Magazine EnhancementsuBMW Owners Circl
20、euFinancial Services ProgramsuCredit Card&Banking Customer AcquisitionuCross Sell and Up Sell MarketinguOpportunistic“Quick Win”ProgramsCore Communications Program管理资源吧（），提供海量管理资料免费下载！Page-19The Owner Welcome Kit管理资源吧（），提供海量管理资料免费下载！Page-20uA static kituInformation onuBMW,the BranduBMW,the CompanyuB
21、MW,the ProductsuIt welcomed people to the brand,but offered no real taste of the BMW ExperienceThe old welcome kit was:管理资源吧（），提供海量管理资料免费下载！Page-21uA personal welcome kit that owners realize was created just for themuIt arrives within the first 30 daysuIt is a dialogue opener,an invitation to the BM
22、W experience that extends over a full yearuEach of the kit pieces enhance your perception of the BMW Brand and the ExperienceuMultiple calls to action which lead you deeper into the ExperienceuIt inherently fosters the collection of information needed for further relationship dialogueThe new BMW wel
23、come kit管理资源吧（），提供海量管理资料免费下载！Page-22uWeekly feed of new owners from the databaseuRapid record cleanup for mailinguWeekly fulfillment of corrected names,addresses and data to the welcome kit programuMonthly maintenance of the database which supports all owner and prospect communicationsThe Database S
24、upports the Welcome Kit管理资源吧（），提供海量管理资料免费下载！Page-23uTask:Provide individual customer data for personalized welcome kit fulfillmentStrategy:uProvide new owner personalized fulfillment information on a weekly basisuRecover key information requesteduMaintain owner files based on collected information f
25、or future programsuIdentify 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！Page-24Loyalty and Owner Communications管理资源吧（），提供海量管理资料免费下载！Page-25uBMW customers are fiercely loyal to their branduLoyalty can b
26、e measured:it is the repurchase rateuSuccessful loyalty is a two way streetuCustomer loyalty can be strengthened by relevant personal communicationsuBMW Loyalty initiatives cover the entire ownership experienceuWelcome Kit,Newsletters,BMW Magazine,Multiple Vehicle Owner programsThe Loyalty Situation
27、管理资源吧（），提供海量管理资料免费下载！Page-26uIncrease BMW profits through:uIncreased repurchase by existing ownersuIncreasing the number of BMWs per householduIncreased sales of BMW previously owned vehiclesuIncreased use/purchase of BMW FS productsuEach program effectiveness measured by control groups:u Control Gr
28、oup:Owners who are not sent the communications uTest Group:Owners who get the communicationsOwner Communication Goals管理资源吧（），提供海量管理资料免费下载！Page-27uGeneral Goals:uImmersion in the BMW ExperienceuPromotion of Owners CircleuPurchase of BMW accessoriesuTo 3 and 4 year BMW owners.Goals:uIncrease the repur
29、chase rateuMultiple BMWs in each householduWidespread use of BMW Financial Services productsuTo new BMW owners,Goals:uPurchase BMW financial services productsuCapture information about their preferences,lifestyles,automobile interests,etc.useful for further dialogLoyalty Building Newsletters管理资源吧（），
30、提供海量管理资料免费下载！Page-28uOngoing collection of news and information of interest to BMW ownersuOwner surveys to determine preferences for:uNews,information,and topicsuCommunication Channel(email or print)uFrequencyuBegin with a printed newsletter to gather email addressesuMove to email newsletters as qui
31、ckly as possibleuMultiple offers to generate owner responseuPromote the use of Owners CircleNewsletter Strategy管理资源吧（），提供海量管理资料免费下载！Page-29uNew productsuBMW awardsuSports stars that drive BMWsuRatings by leading car magazinesuWhy the BMW engines are superioruThe history of BMWuEvent calendaruMagazin
32、e reprintsuSponsorshipsuBMW Brand ValuesuRoadside AssistanceuServicing requirementsuBMW InsuranceuBMW credit cardsuBMW AccessoriesuDriving EventsuBMW trade in pricesuBMW Owner ClubsuOwners CircleuWorld news featuring BMWNewsletter Content管理资源吧（），提供海量管理资料免费下载！Page-30BMW Magazine管理资源吧（），提供海量管理资料免费下载！P
33、age-31uBMW publishes a high-value magazine to its owners in the first two years after their purchaseuBecause of its universal distribution,the magazine can be more than a magazineuIt can be a data collection tool for further personalized communicationsMagazine Strategy-Before管理资源吧（），提供海量管理资料免费下载！Pag
34、e-32uCapture additional information on customersuEmail Addresses uPurchase Intentions:owners identifying themselves as entering the purchase cycleuAllow BMW owners to purchase merchandiseuProvide direction to BMW Online Store for purchaseuPush registration on Owners CircleuEach program effectiveness
35、 measured by control groups:u Control Group:Owners who are not sent the communications uTest Group:Owners who get the communicationsMagazine Strategy Today管理资源吧（），提供海量管理资料免费下载！Page-33Extending the Dialogue Prospect Messages管理资源吧（），提供海量管理资料免费下载！Page-34uIncrease prospect conversion to sell more BMW au
36、tomobilesuProvide a steady flow of“qualified”leads to BMW CentersuMake communications interactiveuContinually improve the conversion rates by better prospectinguMeasure the conversion rate by Center,Region,Prospect Lifestyle,IncomeGoals of the Prospect Management System管理资源吧（），提供海量管理资料免费下载！Page-35uP
37、rospects developed from all contact sources:uTelephone,Direct Mail,Auto Shows,Events,InternetuRapidly qualified and scoreduCenters receive qualified leads electronically within 48 hours of receiptuProspects get BMW message within 48 hoursuEvery lead tracked electronically,with daily,weekly,&monthly
38、reports for BMW management on the webAutomated Database Processes管理资源吧（），提供海量管理资料免费下载！Page-36uScoring models for incoming prospect requests determine priorityuFocus on priority A&B prospectsuMoving to lower priorities as the systems proves itselfuFully integrated creative implementation in both elec
39、tronic and paper media as well as eventsuTest scoring models against anticipated response and adjust as neededuUtilize a 5%control group for a period of one year for reporting comparisonsTesting and Implementation Strategy管理资源吧（），提供海量管理资料免费下载！Page-37uSalesuResponseuTo electronic vs.paperuPredetermin
40、ed vs.RelationaluOffers and incentives uModeling successu%prospect conversion(historical)uMedia preference automated systemuCost of programuCost of salesMeasurements of the Prospect Program管理资源吧（），提供海量管理资料免费下载！Page-38Measuring success through the dealersuScored leads sent to each dealeruConversions
41、are measured monthlyuEach dealer conversation ratio calculateduProgram success measured by comparing dealer to dealer conversion ratiouDealer,Market,Region and National average conversion ratios create measurable benchmarksuAbove average dealers manage their leads better管理资源吧（），提供海量管理资料免费下载！Page-39u
42、Direct Mail and E-mail integrated communication planuAlternating content delivery mediumsuEach reinforcing the one that came before ituUse of database information to drive customization and relevanceuEach communication introducing a new piece of the BMW ExperienceuAll communications tie in to web ac
43、tivitiesuIntegration with off-line and online marketing activitiesuProspects given the opportunity to opt-out at any pointuProspects removed from program if they purchase a vehicleProspect Program Communications Strategy管理资源吧（），提供海量管理资料免费下载！Page-40uImmerse and invite the prospect into the BMW Experi
44、enceuReinforce the initial contact with BMWuEducate as to the depth of the BranduProducts and ServicesuPoint the prospect towards a test drive and the dealeruReinforce core marketing communication objectives about:uBrand ValuesuBrand HeritageuProduct attributesuThe BMW Ownership ExperienceProgram Co
45、mmunications Objectives管理资源吧（），提供海量管理资料免费下载！Page-41uNew productsuBMW in the NewsuBMW Technology and InnovationuBMW SafetyuThe history of BMW and BMW Brand ValuesuEvent invitationsuTest drive incentivesuBMW giftsuMagazine reprintsuBMW Financial Services productsProgram Content Objectives管理资源吧（），提供海量管
46、理资料免费下载！Page-42uSell more cars by:uImmediate Scoring of ProspectsuImmediate electronic Center notification of leadsuImmediate communications with the prospectuContinually engage the customer in the ExperienceuProvide more information on the depth of the BranduReduce the cost per car solduProvide Man
47、agement with accurate&timely knowledge of the prospect and sales processuIncrease the overall effectiveness of future prospecting programs by learning from this oneProspect System Benefits管理资源吧（），提供海量管理资料免费下载！Page-43Quick wins:X factor programs 管理资源吧（），提供海量管理资料免费下载！Page-44uThe BMW Database offers a
48、huge opportunity to utilize information to refine BMW programsuX Factor programs are built on data mining,and deliver:uHighly effective marketing programsuIncremental revenue opportunitiesuLow cost per saleuIncreased customer/prospect contact and satisfactionX Factor Situation管理资源吧（），提供海量管理资料免费下载！Pa
49、ge-45uThe Loyalty and Prospect Programs,combined with the database,offer great potential for creative,interactive X factor programs:uContestsuPrograms for Women/MinoritiesuSpecial EventsuReferral ProgramsuCertified Previously Owned CarsuSecond BMWs in every homeuLifestyle ProgramsuCongratulatory Mai
50、lings to 3+BMW OwnersX Factor Initiatives管理资源吧（），提供海量管理资料免费下载！Page-46Plus improved reporting,query developmentand a half dozen new ideas to be developed and implemented during the yearX Factor:something new every quarter管理资源吧（），提供海量管理资料免费下载！Page-47uIdentify ways to build relationships with female ow