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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 11:1
2、5 AM管理资源吧（），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
3、evolved管理资源吧（），提供海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 (use
4、fulness of product) +b (perceived 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 salesu
5、You need both kinds!Two kinds of database 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 opportuni
6、stic marketing programsuIncrease customer 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
7、 has a central system of measurementuThe 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-o
8、wner cycle from first point of contact, through 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 - 9uAllo
9、wing a full view of the BMW customer delivers 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 c
10、ustomers?uWhich customers will deliver additional 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 databa
11、se builduPay for database maintenance going forwarduIncrease 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
12、 and enhancement of BMW marketing programsuAbility 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
13、 Control GroupsHow BMW measures return on investment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
14、and sale measurementuCross-penetration of product purchasesControls 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 expe
15、nseuFewer pieces mailed with higher effectivenessuIncreased 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 -
16、15uAll programs are built on a state-of-the-art customer relationship 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
17、 ExperienceThe Database管理资源吧（），提供海量管理资料免费下载！Page - 16uIncrease customer loyaltyuIncrease prospect conversion to sales ratiouIncrease vehicle sales through existing customersuMaintain existing BMW household recordsuKeep communication costs down while increasing effectivenessuDevelop a consistent proc
18、ess of program measurement2001 Database Marketing Goals管理资源吧（），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
19、relevant information exchangesuIncrease owner loyalty and customer 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/
20、Extending the DialogueuBMW Magazine EnhancementsuBMW Owners CircleuFinancial 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
21、费下载！Page - 20uA static kituInformation onuBMW, the BranduBMW, the CompanyuBMW, 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 a
22、rrives within the first 30 daysuIt is a dialogue opener, an invitation to the BMW 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 c
23、ollection of information needed for further relationship dialogueThe new BMW welcome 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
24、 of the database which supports all owner and prospect communicationsThe Database Supports 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 basisuR
25、ecover key information requesteduMaintain owner files based on collected information for 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 Communicat
26、ions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 be 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 exp
27、erienceuWelcome Kit, Newsletters, BMW Magazine, Multiple Vehicle Owner programsThe Loyalty Situation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 vehiclesuIncrea
28、sed use/purchase of BMW FS productsuEach program effectiveness measured by control groups:u Control Group: 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 ExperienceuP
29、romotion of Owners CircleuPurchase of BMW accessoriesuTo 3 and 4 year BMW owners. Goals:uIncrease the repurchase rateuMultiple BMWs in each householduWidespread use of BMW Financial Services productsuTo new BMW owners, Goals:uPurchase BMW financial services productsuCapture information about their p
30、references, lifestyles, automobile interests, etc. useful for further dialogLoyalty Building Newsletters管理资源吧（），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
31、(email or print)uFrequencyuBegin with a printed newsletter to gather email addressesuMove to email newsletters as quickly 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
32、 drive BMWsuRatings by leading car magazinesuWhy the BMW engines are superioruThe history of BMWuEvent calendaruMagazine reprintsuSponsorshipsuBMW Brand ValuesuRoadside AssistanceuServicing requirementsuBMW InsuranceuBMW credit cardsuBMW AccessoriesuDriving EventsuBMW trade in pricesuBMW Owner Clubs
33、uOwners 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！Page - 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 magaz
34、ineuIt 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！Page - 32uCapture additional information on customersuEmail Addresses uPurchase Intentions: owners identifying themselves as entering the purchase cycleuAllow BMW owners to purc
35、hase merchandiseuProvide direction to BMW Online Store for purchaseuPush registration on Owners CircleuEach program effectiveness 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
36、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 automobilesuProvide a steady flow of “qualified” leads to BMW CentersuMake communications interactiveuContinually improve the conversion rates by better prospectinguMe
37、asure 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 - 35uProspects developed from all contact sources:uTelephone, Direct Mail, Auto Shows, Events, InternetuRapidly qualified and scoreduCenters receive qualified leads
38、 electronically within 48 hours of receiptuProspects get BMW message within 48 hoursuEvery lead tracked electronically, with daily, weekly, & monthly 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 determin
39、e priorityuFocus on priority A & B prospectsuMoving to lower priorities as the systems proves itselfuFully integrated creative implementation in both electronic and paper media as well as eventsuTest scoring models against anticipated response and adjust as neededuUtilize a 5% control group for a pe
40、riod 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. paperuPredetermined vs. RelationaluOffers and incentives uModeling successu% prospect conversion (historical)uMedia preference automated systemuCost of program
41、uCost 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 are measured monthlyuEach dealer conversation ratio calculateduProgram success measured by comparing dealer to dealer conversion ratiouDe
42、aler, 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 - 39uDirect Mail and E-mail integrated communication planuAlternating content delivery mediumsuEach reinforcing the one that came before i
43、tuUse of database information to drive customization and relevanceuEach communication introducing a new piece of the BMW ExperienceuAll communications tie in to web activitiesuIntegration with off-line and online marketing activitiesuProspects given the opportunity to opt-out at any pointuProspects
44、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 ExperienceuReinforce the initial contact with BMWuEducate as to the depth of the BranduProducts and ServicesuPoint the prospect towards a
45、 test drive and the dealeruReinforce core marketing communication objectives about:uBrand ValuesuBrand HeritageuProduct attributesuThe BMW Ownership ExperienceProgram Communications 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 his
46、tory of BMW and BMW Brand ValuesuEvent invitationsuTest drive incentivesuBMW giftsuMagazine reprintsuBMW Financial Services productsProgram Content Objectives管理资源吧（），提供海量管理资料免费下载！Page - 42uSell more cars by:uImmediate Scoring of ProspectsuImmediate electronic Center notification of leadsuImmediate c
47、ommunications with the prospectuContinually engage the customer in the ExperienceuProvide more information on the depth of the BranduReduce the cost per car solduProvide Management with accurate & timely knowledge of the prospect and sales processuIncrease the overall effectiveness of future prospec
48、ting 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 huge opportunity to utilize information to refine BMW programsuX Factor programs are built on data mining, and deliver:u
49、Highly 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！Page - 45uThe Loyalty and Prospect Programs, combined with the database, offer great potential for creative, interactive
50、X factor programs:uContestsuPrograms for Women/MinoritiesuSpecial EventsuReferral ProgramsuCertified Previously Owned CarsuSecond BMWs in every homeuLifestyle ProgramsuCongratulatory Mailings 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 development
51、and 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 owners:uBring them to the Brand, and keep them longeruAppeal to their unique needsuRecognize the purchasing p
52、ower and influence that automotive marketers typically ignoreuProvide tools that reduce pre-dealer visit anxietyuTailored communications that highlight what women are looking foruLive chat support by femalesuDevelop a network of female sales repsX1 Womens Program管理资源吧（），提供海量管理资料免费下载！Page - 48uIdenti
53、fy households that are prime prospects to purchase a second BMWuAnalyze multiple purchase householdsuTarget groups most likely to purchase a CPO vehicleuHouseholds with teenagers or young adultsuIdentify seasonality graduation, etc.uTest the program on current BMW owners, then roll out to prospectsX
54、2: Certified Previously Owned Program管理资源吧（），提供海量管理资料免费下载！Page - 49uIdentify those current owners who are most likely to purchase a new 7 Series BMWuInvite these special people to be among a small group who are allowed to preview the new 7 seriesuAppeal to their appreciation of inclusion by asking f
55、or their feedback and opinionuAllow them to be among the first to test driveuNotify them periodically of the status of the vehicleX3: Series 7 Launch管理资源吧（），提供海量管理资料免费下载！Page - 50uIdentify those current owners who are most likely to purchase the MINIuCreate a unique lifestyle message to these owners
56、uAppeal to the early adapteruFocus on active lifestylesuGet them to preview on the web and opt in to marketing messagesX4: Mini Launch管理资源吧（），提供海量管理资料免费下载！Page - 51uDevelop a program that uniquely appeals to the BMW owneruCommunicate the personality of the branduReinforce the relationship that the B
57、MW owner has with their caruAt the anniversary of purchase, send an e-card to ownersuDirect them to a micro site to get an e-birthday giftX5: Birthday Cards管理资源吧（），提供海量管理资料免费下载！Page - 52uDatabase provides the central focus for:uOwner loyalty communication programsuProspect communicationsuOpportunistic “Quick Win” ProgramsuMeasurement of successuBuilding BMW Brand LoyaltySummary: BMW has put it all together管理资源吧（），提供海量管理资料免费下载！
