Transcript capabilitypresentationFULLVERSION2

Customer LifeCycle ManagementSM
Tap into YOUR hidden potential with
DPS PerfectCircle Suite of Marketing Capabilities
<Month Day, Year>
<Your name>
1
…How can you be sure you are optimizing
your marketing investment when
there is a lot of options, a lot of confusion, and…
Actionable
data
Data Modeling
Vary the media
Point of Sale merchandising
Owner Rewards
Profiling
Surveys
Sales Force Automation
Web marketing
Coupon booklets
CRM
Key tags
Intelligent offers
Database marketing
Gift cards
Gender based marketing
Incentives
2
…and, a lot of cookie cutter programs.
How do you make an informed decision that’s right for you?
Actionable
data
Data Modeling
Vary the media
CRM
Point of Sale merchandising
Owner Rewards
Profiling
Web marketing
Coupon booklets
Surveys
Key tags
Intelligent offers
Database marketing
Gift cards
Gender based marketing
3
…a lot of cookie cutter programs.
And, with everyone buying essentially the same technology, where is
the competitive advantage to be found?
Actionable
data
Data Modeling
Vary the media
Point of Sale merchandising
Owner Rewards
Profiling
Surveys
Sales Force Automation
Web marketing
Coupon booklets
CRM
Key tags
Intelligent offers
Database marketing
Gift cards
Gender based marketing
Incentives
4
What do you do?
Here’s a start…
5
First, begin by understanding how consumers
behave throughout their life cycle.
Not including non-traditional
after-sales products/services…
SHOP
BUY
CONSUMER
OWN
Accenture 2004
6
Then, Implement a Customer Life Cycle
Management Strategy That…
• …Integrates your marketing communications
• …Can be sustained
• …Is designed to leverage consumer behavior
• …Lowers per unit M&A costs
• …Keeps your options open with “flexible customization”
• …Provides measurable performance improvement beyond
traditional metrics
7
What is Customer LifeCycle Management ?
SM
As it relates to Customer Relationship Management (CRM), customer
LifeCycle Management (CLM) is used to describe the progression of
steps a consumer goes through when: considering, purchasing, using,
and maintaining a vehicle.
The goal of lifecycle management is to pro-actively move the consumer
through the cycle again and again by defining the way in which an
enterprise interacts & communicates with its customers and prospects at
each phase of the life cycle.
8
Why is LifeCycle management important?
Because current practices are a “going out of business” strategy!
$ 8.3 Billion is spent each year
in conquest advertising.
30% of GP is
consumed in ad costs
00
$ 493.
STOP the Madness!
Customer retention
remains around 30% 9
$ 1445 GP per unit
Why is LifeCycle Management important?
For the average franchised New Vehicle Dealer:
• Marketing and Advertising is the second largest business expense
• 88% of the Marketing & Advertising dollars are spent in Mass-Media
• Marketing & Advertising consumes 25% - 30% of the average new vehicle
gross profit
• Front end acquisition rates typically yield 50% capture of the total advertising
influenced prospect base
• 40% of “New” customers never generate a CP repair order
• 70% of the customers “defect” within the first 3 years of ownership
• Less than 15% of annual sales are to repeat customers
YET • 20-25% of their customer households will purchase a vehicle
annually
10
Why is LifeCycle Management important?
For the average BMW Center regarding Aftersales:
• Customer service intervals are more expansive
•Many BMW Service centers are at capacity
•Must maximize each visit / opportunity
•Vehicles are built better and have more complex systems
•Less parts sales
•More computer programming repairs versus additional parts or labor sales
• Co-op funding going untapped – why solicit more if you can’t handle it?
•Need ability to consistently build value in the breadth and quality of BMW products
& services
•Accessories, Lifestyle & boutique items, warranties, etc.
11
What are the benefits of CLM?
Performance improvement:
Capture and convert more opportunities,
18% to 225% increase in unit sales
Improve overall customer retention and loyalty,
4% to 60% improvement in retention
Improve customer satisfaction,
2 to 15 point improvement in CSI
Reduce M & A expense and Improve profitability,
As much as 25% improvement in enterprise profitability
12
So, if you do it… Should you own it, OR outsource it?
Let’s take a look at the facts…
13
Own it!
Business Development Centers
75% of BDC’s fail within 6 months!
Why?
1.
2.
3.
4.
5.
6.
Cultural norms
Short term mindset (see #1)
Not a core competency (see #1)
High employee turnover (see #1)
Difficult to sustain
It looks easy to do
V.S.
Bottom line:
Business development through database marketing is a
14
sophisticated process requiring a long-term commitment.
Cultural
Mindset
Outsource it!
Contracted Marketing Services
Measurable performance improvement, without the high
cost of people, technology, and compliance management.
Why?
1. Dealer stays focused
2. Dealer can invest in core competence versus start-ups (see #1)
3.
4.
5.
6.
This IS a core competency of an outside firm (see #1)
Reduces legal risk (see #1)
Sophisticated and scalable technology (see #1)
If it were easy to do, everyone would do it.
Bottom line:
Outsourcing enables dealers to remain focused on
15
execution, not on non-core functions.
How to Get Started
Four essential elements for Customer LifeCycle Management:
• Actionable data
• Timely and relevant, customer-centric communications
• Consistent delivery of quality interactive processes and,
• Ability to demonstrate and quantify the value each customer
derives from the relationship.
How ready are you?
16
CLM Dealer Readiness Assessment
CLMSM Implementation Requirements – Assessment
Actionable Data






Ability to collect consumer data at point of interaction or transaction (fixed ops)
NCOA (National Change of Address) purification process
CASS Certified (Coding Accuracy Support System)
FTC and State DNC purification
De-duped lists
E-mail address (DPS can assist in collection)
Yes
No
?
X
X
X
X
?
Typical
Results
Timely/Relevant Customer-Centric Communications






Ability to extract, normalize, and segment customer data from DMS
Algorithms used to predict in-market timing
Dynamic, “smart”, customer/model specific incentive capability
Consistent brand imaging and messaging
Flexibility in communicating in customer’s channel of choice (see Actionable Data)
On-demand flexibility in type of media and creative design
X
X
X
?
X
X
Quality Interactions That Support Desired Brand Image





Consistent delivery of quality interpersonal customer interactions (fixed and sales)
Consistent face-to-face delivery of message
Process for garnering un-biased customer feedback
Process for quickly acting upon customer feedback (DPS assists)
Escalation processes for resolving customer concerns
X
X
?
X
?
?
Ability to Quantify and Demonstrate Delivered Value



Process for quantifying value of goodwill/policy at POS within the DMS
Process for capturing quantified value
Mechanism for demonstrating and communicating the cumulative17
value delivered
to the customer
?
?
X
Doing it
yourself is
more difficult
than it appears!
Own it VS. Outsource it?
Conclusion
There is too much at stake to Own it.
Stay Focused… Outsource it.
How to select the best provider
1.
2.
3.
4.
5.
6.
7.
Experienced
Flexible
Quick to adapt
Innovative
Creative
Proven track record
Ensures alignment with YOUR business objectives
18
Introducing DPS’ PerfectCircle customer
LifeCycle Management
OWN
Those who deliver the best possible consumer Shopping,
Buying and Ownership experience…
WIN!
19
In what way is PerfectCircle CLMSM
different?
PerfectCircle CLM Strategy
Traditional “Retention Marketing”
Flexible
Cookie cutter
Aligned with business objectives
Sold on price or other traditional metrics
Unique, Flexible, & proactive
Activity based
Enterprise wide solution
Focused on reminders, and traditional call
center activity
Integrated communications
Permission based
Consumer behavior driven
Quantifies value for consumer
Service dept focused
Not integrated with total marketing and
advertising strategy
Facilitates shift in budget for no
incremental expense
Options:
Options:
On Line Adminstrators
20
Why DPS?
Innovative Thinking
 The ONLY CLM company in the automotive retailing industry (we own the trademark)
 The FIRST company to offer bundled communication capabilities oriented around consumer behavior
 The FIRST company to offer flexible fee structures
 The ONLY company to offer complete customization of the program
 The ONLY company to offer integrated marketing communications with a plug-n-play owner rewards program
 The ONLY automotive focused DB marketing firm to bundle all of this with personal owner web pages
Clear Solutions
 Simple to understand suite of capabilities
 Marketing strategies developed according to dealer objectives and unique market conditions
 Hands-off, turn-key services that can be customized to individual preference
 Marketing programs aligned and held accountable to dealer business objectives
Measurable Results
 The ONLY company to offer pre, and post implementation retention performance benchmarking
 The ONLY company to offer performance reporting that is available in hard copy, e-mail , fax, and
secure web based access to real-time data-driven reporting
 Personalized, monthly service consultations and program adjustment recommendations
21
DPS Portfolio Map
DB Management
Services
• Federal and State
Compliance filters
• Customer info & address
standardization
• De-duping customer
records
• Customer & vehicle
records and history
• Op-code normalization
• NCOA
• CASS Certification
• Customer profiling
• Customer segmentation
• Predictive data modeling
• 3rd party list management
Customer LifeCycle Management Services
Acquisition
• Voice of the Prospect –
Shopper Contact
• Acquisition direct mail
marketing
• Dealer Advance lead
Retention
• Voice of the Customer –
Service Follow-up
Renewal
• Voice of the Customer
Reactivation
• E-mail “Smart Surveys”
• Reactivation mail
• New sale thank you and
• New vehicle sales
service introduction
campaign
management system
• Maintenance reminders
• On demand campaigns
• E-mail Direct Marketing
• Voice of the Customer –
• Performance reporting
• On demand campaign
management
• Performance reporting
non-responder
Owner Rewards
• Promotional kit
• Welcome kit
• Point accrual, tracking,
account and redemption
management
• MyCarPoints.com
personal owner web
pages
• Major service thank you
• E-mailed communications
• Mycarpoints.com
personal owner webpages
• Owner rewards program
• Key tags
• Service Maintenance
books
• On demand campaigns
• Performance reporting
The 4 Cornerstones of Customer LifeCycle Management
22
Benchmarking
Services
• DPS client engagement
and business case
development model
• Benchmark measurement
and follow-up
• Monthly performance
reports
PerfectCircle CLM Capabilities
Database Management
Acquisition
Retention
Renewal
Owner Rewards
Profitable Business Enabled Here
More Profitable Customer Marketing Starts Here
Profitable Customer Relationships Continue Here
Loyal Customers Developed Here
Loyal Customers Kept Here
•Integrated communications
•Sustainable
•Aligned with behavior
•Lowers per unit costs
•Keeps options open: (Flexible Customization)
23
Database Management
Creating actionable data and discovering hidden potential
Mitigates legal compliance risk
Keeps data “actionable”
Reduces costs
Daily extraction enables
relevant/timely communications
“Mines” hidden potential
24
Database Management
Data Extraction Scope
• F&I – (Vehicle records from the previous 60 months)
• Service – (Repair order records from the previous 18 months)
• Ops – (Service op codes)
• Vehicle History – (Vehicle)
• CUS – (Customer) R&R ERA, and ADP Elite only
25
Acquisition
Managing the Shopping Experience
SHOP
SALES PROCESS
SHOPPING
EXPERIENCE
CONSUMER
OWN
26
BUY
Acquisition
Find and Capture More!
In partnership
with
27
Acquisition
Finding and selling to more customers
The “Gap” is the difference between today’s performance and the potential
to optimize the revenue opportunities from prospects and customers
alike.
28
Acquisition
Stronghold and DPS are the industry leaders in closing
the Gap.
We make it…
Simple
Seamless
29
Sustainable
Acquisition
Marketing Logic
•“In-Brand” owners are
targeted with a special
offer designed to
introduce them to
Service Dept.
•Responders are
automatically placed
into the Retention
Module.
•Non-Responders are
placed in the Service
Prospecting database
for future “On-Demand”
(OPTIONAL) events.
30
Acquisition
Actionable data
INTERNET
TELEPHONE
WALK-INS
360o view of all customer activity from any device
connected to the DealerAdvance™ network.
Data is captured in a PC, or wireless PDA
integrated with the system.
EXISTING
CUSTOMER
BASE
3rd PARTY
LISTS
CLM
CUSTOMER
DATABASE
But data, by it’s self, is not enough.
31
Acquisition
Interactive Processes
It’s the interactive
processes which
determine success.
DealerAdvance™ functionality with its built-in Sales Force
Automation enables a consistent and auditable follow-up process
across all channels.
Take a Look At the Next Level of Dealership Performance:
DealerAdvance™ Sales demo.
32
Acquisition
Optimizing Prospects & Customers Actionable Data
Attack Showroom
Traffic
Leverage Phone
Ups
Improve Internet
Yield
-Wireless PDA
-Driver’s License Scanning
-Reverse Phone Lookup
-Follow-up task assignment
-Integration to Who’s
Calling and Call Bright
-Prospect initiated via PDA
-Task assignment
-Fast automated
response
-Task follow-up via CRM
Leverage Lead
Sources
-Import to DA
-Lists from OEM &
Purchased
Mine Owner Base
-Data Extraction &
Cleansing
-Automated Import to DA
-Task Assignment
-Marketing Campaigns
Increase Retention
of Service Customers
-Data Extraction & Cleansing
-Service Reminders
-Follow-up Calls
*All Actions are Compliant with National DNC Registry
33
Acquisition
Dealer Advance,
Proven Sales Results
Average
Performance
June
Ups
Calls
Made
Contacts
Appt.
Set
Appt.
Show
Appt.
Close
Appt.
as a
% of
Sold
Total
Sold
509
1,039
422
150
78
22
22%
131
78%
204%
41%
35%
52%
37%
34
Acquisition
VOP – Voice of the Prospect
Gain customer and sales process insight:
DPS conducts brief and non-intrusive, internet or
live telephone, interview of un-sold opportunities
within (3 days) of their visit or inquiry.
We also collect objective and actionable
information on the prospect’s buying status.
Individual feedback is captured, and disseminated, via the
DealerAdvance™ System, for review and additional follow-up.
35
Acquisition
VOP – Voice of the Prospect
BUYER STATUS:
•Active- (Still in market)
Status is up-dated daily in
your DealerAdvance™
Additional Follow-up required
System for additional
dealership follow-up. Hot
Prospects are identified and
an urgent communication is
immediately generated.
•Purchased Elsewhere
•Inactive (No longer in market)
36
Acquisition
VOP – Voice of the Prospect
BUYER STATUS:
•Active- (Still in market)
Additional Follow-up required
Turn lost sales
opportunities into
service revenue!
•Purchased Elsewhere
“In-brand”
37
Acquisition
VOP – Voice of the Prospect
BUYER STATUS:
•Active- (Still in market)
Additional Follow-up required
Turns today’s lost
sales into tomorrow’s
opportunities !
•Purchased Elsewhere
“In-brand”
Competitive Brand
•Inactive (No longer in market)
38
Acquisition
25% Improvement in New Service Customers
TOTAL UPS
UNIT SALES
LOST OPPORTUNITIES
PURCHASED ELSEWHERE %
PROSPECT YIELD
"IN-BRAND" ELSEWHERE %
PROSPECT YIELD
CAPTURE RATE
CUSTOMER YIELD
RESULTS!
39
500
100
400
90%
360
70%
252
10%
25
Acquisition
Acquisition Direct Mail
Generates market demand with
compelling offers on an unlimited
selection of creative designs
40
Acquisition
Components
•DealerAdvance™ Opportunity Management System
•Voice-of-the-Prospect follow-up Program
•Acquisition Mail generate demand and drive traffic
Each leverages:
•Actionable data,
•Timely & Relevant communications and;
•Quality interactive Processes
•Demonstrates the quantified value the customer derives from
the relationship
To deliver
RESULTS!
41
Retention
Managing the Ownership Experience
SHOP
BUY
CONSUMER
OWN
42
Retention
Unlock your assets!
We identify your most valued
customers and recognize their
loyalty while you reap the
rewards!
43
Retention
Marketing Logic
3K, 3.75K
•
•
VOC: Satisfaction,
channel of choice,
reinforce
mcp.com, et al
Declined services
captures
customers that
said “no”
44
•
New purchase customer
is contacted via VOC.
Service is introduced and
1st appointment is
reinforced
•
First Reminder 15 days
prior to due date
•
2nd reminder sent 15 days
prior to next scheduled
service
•
Non responders are called
within 10 days of noshow
•
Final reminder sent at
next interval: strong
language.
•
VOC Defector finds out
why they aren’t coming
back
Retention
Marketing Logic
5K, 7.5K
•
•
VOC: Satisfaction,
channel of choice,
reinforce
mcp.com, et al
Declined services
captures
customers that
said “no”
45
•
New purchase customer
is contacted via VOC.
Service is introduced and
1st appointment is
reinforced
•
First Reminder 15 days
prior to due date
•
Overdue reminder sent 30
days from previous due
date
•
No responders are called
within 10 days of noshow
•
Final reminder sent at
next interval: strong
language.
•
VOC Defector finds out
why they aren’t coming
back
Retention
Marketing Logic
15K
•
•
VOC: Satisfaction,
channel of choice,
reinforce
mcp.com, et al
Declined services
captures
customers that
said “no”
46
•
New purchase customer
is contacted via VOC.
Service is introduced and
1st appointment is
reinforced
•
First Reminder 15 days
prior to due date
•
Interim Communication
maintains contact during
long periods of inactivity
•
No responders are called
within 10 days of noshow
•
Final reminder sent at
next interval: strong
language.
•
VOC Defector finds out
why they aren’t coming
back
Retention
Owner Rewards Integration with Communications
How it works
Maintenance reminders are automatically
generated utilizing the customer’s
“channel-of-choice” when services are due.
Loyalty program status
is displayed on all
communications
47
Retention
VOC – Voice of the Customer
Non-Responders are contacted via the telephone by
highly trained professionals.
This additional contact increases
response rates by as much as 30%!
48
Retention
VOC – Voice of the Customer
Utilizing the customer’s Channel-of-Choice
responding customers generating a transaction
(customer pay and/or warranty) are contacted and a
Voice-of-the-Customer survey is conducted within
72 hrs. of their visit. (Retention II or stand alone
solution)
Results are up-dated daily and
available on line 24 X 7.
49
Retention
Managing the Ownership Experience
SHOP
BUY
CONSUMER
OWN
50
Owner Rewards
How does it provide advantage?
While they shop…
Introduced during the sales process as a key differentiator.
After they Buy…
Provides the ability to demonstrate the quantified value the
customer derives from the relationship.
When it’s time to repurchase…
It provides a unique competitive advantage.
51
Owner Rewards
Activation
process
52
•
Every qualified buyer
receives a Welcome Kit
& Member Card,
describing the
program’s features,
advantages & benefits
•
The Kit instructs them
to activate their
benefits on-line
•
New buyers are
contacted through the
VOC process within 3
days of delivery.
Reinforcing activation.
•
If no contact made –
Welcome Letter sent
with activation
instructions
Owner Rewards
Welcome kit
Welcome Letter
Loyalty Card
53
Owner Rewards
Promo kit
Promotional Kit
•Benefits brochure
•Addendum sticker
•Member Sticker
•Promo Banner & P.O.P.’s
•Next Service Due Static
Cling
•Post Card Announcement
54
Owner Rewards
Web Portals
• Relevant actionable information is collected
• Channel of choice identified
Consumer
• Complete consumer resource
• Rewards balance available
Dealer
55
Retention & Owner Rewards
Components
• Printed/e-Communications – Current customers: Mailed
Reminders, e-mail, post cards, and MCP.com
• Voice-of-the-Customer – Active customers: Sales followup, Service Satisfaction., Non-responders, & Defector
• Owner Rewards – Points, rewards website, integration with
communications, welcome kit, and promo kit
Each leverages:
•Actionable data,
•Timely & Relevant communications
•Quality interactive Processes and;
•The ability to demonstrate the derived value
To deliver
RESULTS!
56
Renewal
Managing the Renewal process
SHOP
BUY
CONSUMER
OWN
57
Renewal
Managing the Renewal process - Sales
Leverage your assets!
Mine your customer base for
“In-Market” sales opportunities!
•In market timing
•Warranty expiration
•Year of vehicle
•Old age/high mileage vehicles
•Visiting owners in repurchase period
•Much more
58
Renewal
Managing the Renewal process
Leverage your assets!
Increase R.O. values by
improving your service mix!
The Customer Reactivation Campaign
successfully targets Inactive, higher
mileage vehicle owners with model
specific incentives.
59
Renewal
Marketing Logic
60
•
Oldest defectors are
segmented (oldest
1/12th). VOC calls are
made
•
Channel of choice, status
of vehicle & owner, and
reasons for defection are
collected
•
“We miss you” letters
sent remaining defectors
over 3 months
•
Quarterly mailers sent
after that.
•
Responders enter the
Retention module
Implement DPS’ PerfectCircle CLM…
…it will help you create a competitive
advantage.
61
62
Next Steps
<list next steps here>
63