Winback Strategies 吳明泉博士 Acquisition and Winback Strategies

CRM-Acquisition & Winback Strategies 吳明泉博士 Outline Acquisition Strategies Winback Strategies

CRM-Acquisition & Winback Strategies 吳明泉博士 Acquisition strategies Objectives: choosing goals that focus on lifetime value. Best achieved by having an effective retention strategy. Strategy: –selecting targets and designing mixes –Natural referrals –Affinity programs –Affinity networks –Relative advantage –Switching costs –Points of entry

CRM-Acquisition & Winback Strategies 吳明泉博士 Objectives: Choosing goals that focus on lifetime value Taking account the cost of customer acquisition: –Establish a system to enumerate all costs for acquiring new customers. –Determine the average cost of acquiring a customer. –Provide a payback on the investment of keeping a customer. –Evaluate the average customer profitability and set objectives.

CRM-Acquisition & Winback Strategies 吳明泉博士 Strategy: Selecting targets and designing mixes High-value potential customers are likely to become target markets. Market mix: comprising 4Ps (product, price, place, and promotion). The optimum content, timing, frequency, of promotional message, and selection of media to reach customer segments may also based on CRM analysis.

CRM-Acquisition & Winback Strategies 吳明泉博士 Natural referrals Everybody is talking about it Through word-of-mouth advertising, Foundation of the best acquisition strategies. Ex., Harley-Davidson Unique Selling Proposition (USP)

CRM-Acquisition & Winback Strategies 吳明泉博士 Affinity programs Incentives for referrals from group –Affinity marketing: a strategy based on marketing to group memberships or associations. –Group purchasing programs leverage the collective buying power of association member. –Co-branding: the use of two individual brands on a single product, targets consumers who are inclined to participate.

CRM-Acquisition & Winback Strategies 吳明泉博士 Affinity networks Paying commission for referrals –CRM combined with the Web provides the power to pay people for building traffic to sites. Ex., early Amazon.com. –Affiliate network program: a process to reward people as sales agents and receive commission on each sale based on their referral.

CRM-Acquisition & Winback Strategies 吳明泉博士 Relative advantage Give them something to talk about –Lead users: innovators and early adopters of new technologies can predict what the future will be like. –Tracking customer complaints

CRM-Acquisition & Winback Strategies 吳明泉博士 Switching costs Eliminate excuses to stay with the competitors –Promotion offer –Product sampling –Money-back guarantee

CRM-Acquisition & Winback Strategies 吳明泉博士 Points of entry The initial contact for acquisition Develop a system to identify who is most likely to enter the product category Determine when entry is most likely, Be the first to establish a relationship with the first time buyer.

CRM-Acquisition & Winback Strategies 吳明泉博士 Winback Strategies Make an effort to reactivate and revitalize relationships with high-value, lost customers –Identify who is about to terminate –Consider life time customer value –Establish why customer terminate –Re-contact lapsed customers –Provide a reactivation offer

CRM-Acquisition & Winback Strategies 吳明泉博士 Identify who is about to leave? The best timing: before the customer terminates the relationship. Act rather than react. –Use RFM (recency, frequency, monetary) analysis to predict who is about to terminate. –CRM system should set off an automatic trigger to win back a customer with high risk of deflection.

CRM-Acquisition & Winback Strategies 吳明泉博士 Consider lifetime customer value Profile customer lifetime future value. Low value customers: –Buy strictly on price –Bad credit risks and paying late –Declining value to a key customer base. Ex. Cadillac in 80’ vs. BMW –“The customer is always right”?

CRM-Acquisition & Winback Strategies 吳明泉博士 Establish why customers leave Conduct customer exit interview Conduct focus group interview Establish listening posts on the frontline Keep records of problems and complaints

CRM-Acquisition & Winback Strategies 吳明泉博士 Re-contact and Re-connect One-half of corporations either never contacted lost customers or only contacted them once or twice. Winback team: cast of salespeople with good communication skills Situation scripts: talking points generated by CRM or marketing experts for contact- sales persons. Appreciation and thanks.

CRM-Acquisition & Winback Strategies 吳明泉博士 Provide a reactivation offer Reactivation offer: the motivation that organization gives customers to return –Learn competitors’ action that caused customers lost. –Learn competitor weaknesses and barriers to exit.