1. Marketing with Customer Information…

2. © Copyright The Square Window Ltd. 2005 Agenda  Introduction –Why keep customer information –Data Basics –The Customer Database  Using data you already have  Enhancing your data  Using Enhanced data  Summary

3. © Copyright The Square Window Ltd. 2005 How Can Data Help You…? It’s About Sales:  Winning new customers  Getting existing customers to buy more  Keeping existing customers buying again & again. Achieving your business objectives

4. © Copyright The Square Window Ltd. 2005 Specifically…  Understanding relative value of different customers  Building a ‘picture’ of best customers and finding prospects who ‘look like’ best customers  Spotting potential – identify future best customers and identifying quick wins  Understanding the most effective way to communicate with different customer groups  Using personalisation to increase the impact of marketing  Tailoring your communications to influence purchase behaviour Using Your Marketing Budget Wisely!

5. © Copyright The Square Window Ltd. 2005 Data ‘Basics’ : Data Protection Act  Be aware of your responsibilities under the data protection act  Be aware of opt-outs and opt-ins  ‘Notification’ – have you done it?  Covers B2B as well as B2C marketing  www.informationcommissioner.gov.uk –Click on ‘Small Business Guidance’

6. © Copyright The Square Window Ltd. 2005 Data ‘Basics’ : Hygiene  Storing data costs money –Only capture and keep what you need  Data Hygiene –c. 5% of postcodes change each year –c. 3-5% of population move each year –c. 26% of senior executives change jobs each year –People die –People register on ‘Preference’ services  Out-dated data wastes money; impacts your ‘brand’ –Free data audits available online –E.g.: www.experian-intact.com

7. © Copyright The Square Window Ltd. 2005 Data ‘Basics’ : Managing Your Data  In House: –MS Excel –MS Access –Bespoke –Off-the-shelf software – e.g. ACT, Goldmine http://www.netintent.co.uk/netsolve/  Outsourced –Database management provider

8. Your Database A Mailing List or a Business Asset?

9. © Copyright The Square Window Ltd. 2005 Data: Consumer Databases Promotional History offers sent responses Promotional History offers sent responses Contact Details name address email tel no. Contact Details name address email tel no. Transactions date of purchase value product channel Transactions date of purchase value product channel Personal Details age gender children Personal Details age gender children

10. © Copyright The Square Window Ltd. 2005 Data: Business-to-Business Databases Contact Details contact name (s) address email tel no. Contact Details contact name (s) address email tel no. Company Details size industry financials credit risk Company Details size industry financials credit risk Transactions date of purchase value product channel Transactions date of purchase value product channel Contact History sales meetings proposals tenders Contact History sales meetings proposals tenders

11. © Copyright The Square Window Ltd. 2005 Turning ‘Data’ Into ‘Information’  Data mining –Create a Single Customer View  Interrogating your database(s) to: –Gain insight into how your customers are behaving –Segment your customers based on: –Products bought, Purchase channel, Value, Demographics  How…? –Reports –Excel spreadsheets –Data bureau.

12. © Copyright The Square Window Ltd. 2005 Useful Customer Information Transactional:  Purchase cycle  Purchase history –What they’ve bought/not bought –Recency, frequency, value Descriptive:  Demographics  ‘Lifestyle’

13. Using Existing Data Enhancing Your data Using Enhanced data

14. © Copyright The Square Window Ltd. 2005 Profit 80% Existing Customers – Why Bother?! It costs 3 – 8 times more to win a new customer than to sell to an existing one Customers 20% 67% of customers ‘defect’ due to lack of contact. (McGraw Hill) …Your existing customers are often your BEST and CHEAPEST source of additional sales

15. © Copyright The Square Window Ltd. 2005 Useful Customer Information Transactional:  Purchase cycle  Purchase history –What they’ve bought/not bought –Value –Recency, frequency, value Descriptive:  Demographics  ‘Lifestyle’

16. © Copyright The Square Window Ltd. 2005 Purchase Cycle new one timers growingloyal lapsed enquirer non-converters  Enquirers – Have they bought yet?  New Buyers - Have they bought again?  Lapsed Customers – Can they be ‘reactivated’? One Timers

17. © Copyright The Square Window Ltd. 2005 Enquirer Follow-Up Dear Simon Thanks for using Insuresupermarket.com… We noticed you haven’t filled in the registration section… …when you do have the registration number we could provide many more competitive quotes…

18. © Copyright The Square Window Ltd. 2005 Purchase History – Sorting By Value  Rank your customers by spend  Spilt them into groups of equal number  Total the value of each group  20% of customers = 80% of value

19. © Copyright The Square Window Ltd. 2005 ? Use Shamelessly(!) Ask for: Referrals (MGM) Testimonials Feedback High Low Value: Best Customers… Keep Them Buying Delight Inform Reward Thank

20. © Copyright The Square Window Ltd. 2005 Value: Medium Value Customers Increase Order Values or Frequency Inform Incentivise Encourage Thank Look-alikes: Esp. those with similar characteristics to your best customers

21. © Copyright The Square Window Ltd. 2005 Keeping in Touch: Breeze & Wyles Newsletter developed: “added value rather than hard sell” Raise their profile and strengthen ties with existing customers Total campaign cost £648 1,500 mailed - 200 responses Upsurge in enquiries linked to articles in the newsletter

22. © Copyright The Square Window Ltd. 2005 Value: Low Value Customers… Low Priority Maintain Inform Thank (Are they costing you money to serve?!)

23. © Copyright The Square Window Ltd. 2005 Purchase History to Predict Behaviour  Customer Information can tell you:  Enquirers most likely to Convert –Use data capture to qualify at enquiry stage  Customers likely to lapse –Financial services – asking for their mortgage balance  Those most likely to: –Buy other products from you (cross-sell opportunities) –Spend more

24. © Copyright The Square Window Ltd. 2005 Purchase History Recency, Frequency, Monetary Value:  To make your communications work use RFM - recency, frequency and monetary value.  It’s tried and tested and works  Your best prospects for selling to are the most recent the most frequent and those with the highest monetary value

25. © Copyright The Square Window Ltd. 2005 £800£200 £400 £300 £400£700£300 £400 £300£100£200 TotalProduct CProduct BProduct ACustomer Cross Sell Opportunities What They’ve Bought / NOT Bought Manufacturer X Manufacturer Y High Tech A High Tech B Travel Z ? ? ?

26. Using Existing Data Enhancing Your data Using Enhanced data

27. © Copyright The Square Window Ltd. 2005 Useful Customer Information Transactional:  Purchase cycle  Purchase history –What they’ve bought/not bought –Value –Recency, frequency, value Descriptive:  Demographics  ‘Lifestyle’

28. © Copyright The Square Window Ltd. 2005 Adding To / Enhancing Your Data  DIY data-capture  Purchased data enhancements –Businesses – ‘demographics’ –Consumers – ‘geo-demographics’, lifestyle

29. © Copyright The Square Window Ltd. 2005 DIY Enhancement  Customer Contact points –Enquiry –Purchase point –Post Purchase –Course of business  Capture methods: –Face-to-face –Questionnaires –Website –email

30. © Copyright The Square Window Ltd. 2005 Purchased Enhancement  Where to go… –B2C: Acorn (CACI), Acxiom, Prime Prospects –B2B: Mosaic (Experian), Dunn & Bradstreet  Data such as… –B2C: generic classification, income, lifestage, lifestyle, newspaper readership, housing type, job type –B2B: generic classification, SIC codes, financial information, key contacts

31. © Copyright The Square Window Ltd. 2005 Consumer Acorn Classifications Wealthy Achievers Wealthy Executives Affluent Greys Flourishing Families Wealthy Achievers Wealthy Executives Affluent Greys Flourishing Families Urban Prosperity Prosperous Professionals Educated Urbanites Aspiring Singles Urban Prosperity Prosperous Professionals Educated Urbanites Aspiring Singles Comfortably Off Starting Out Secure Families Settled Suburbia Prudent Pensioners Comfortably Off Starting Out Secure Families Settled Suburbia Prudent Pensioners Moderate Means Asian Communities Post Industrial Families Blue Collar Roots Moderate Means Asian Communities Post Industrial Families Blue Collar Roots Hard Pressed Struggling Families Inner City Adversity Burdened Single High Rise Hardship Hard Pressed Struggling Families Inner City Adversity Burdened Single High Rise Hardship

32. © Copyright The Square Window Ltd. 2005 Commercial Mosaic Example

33. © Copyright The Square Window Ltd. 2005 Commercial Mosaic Example

34. © Copyright The Square Window Ltd. 2005 Profiling - How Does It Work…? Sample from your database Matched against Data company’s ‘universe’ Analysis shows significant differences : your data v. general population Output = Descriptive Profile of your typical customer group(s ) Profile can be used to select list/media/area of likely Prospects. Info can be appended to your data records

35. Using Existing Data Enhancing Your data Using Enhanced data

36. © Copyright The Square Window Ltd. 2005 Using Enhanced Data…  Winning New Customers  Communicating More Effectively

37. © Copyright The Square Window Ltd. 2005 Winning New Customers Identifying good prospects  Using profile report or generic classifications to: –Identify ‘hot’ postcode sectors –Buy lists

38. © Copyright The Square Window Ltd. 2005 Postcode Sector Ranking Report

39. © Copyright The Square Window Ltd. 2005 Customer or Prospect Penetration Ref: 15 To visualise your data to plan prospecting or expansion

40. © Copyright The Square Window Ltd. 2005 Buying Lists – Where to Go.. For - Email, SMS, Telephone, Mail  List Brokers online or offline  Lifestyle list providers (consumer)  Publishers  Business data providers  Published Directories - i.e. Yell  List swaps

41. © Copyright The Square Window Ltd. 2005 Buying Lists – What to Consider  Fully brief your data supplier  Where did the list come from?  When were the records last updated?  Is it possible to test the list?  Which Suppression files used? –Mortality –TPS/MPS  Is a net names deal available?  Is email data is “opt-in”?  Can you advise on test options for emails?  How many selections are available?  Are there any restrictions?  What options are available -i.e. one time use, multi-use?

42. © Copyright The Square Window Ltd. 2005 Communicating More Effectively  Making media choices –press, radio, email, mail, web  What to say: –Tailoring your ‘proposition’ –Anticipating customers’ requirements  How to say it: –Appropriate ‘tone of voice’.

43. © Copyright The Square Window Ltd. 2005 Tone Of Voice

44. © Copyright The Square Window Ltd. 2005 Make It Work For You Tomorrow…  Remember: Customer Information drives your marketing  Data/Information Audit –What have you got?  Analyse / Interrogate your data –How could you use it? –Where are your quick wins?  What other data would be useful?  How to get it? –Yourself – (Phone, Web, Mail) OR Bought-in –Beware data ‘overload’  Think how to make it pay