IntegratingAllDirectMarketingChannelstoBuildCustomerLoyaltyABMWCaseStudyKayMadati,RelationshipMarketingManagerBMWArthurMiddletonHughes,VPforStrategicPlanningM\SDatabaseMarketingTheDMA84thAnnualMcCormickPlace,ChicagoTuesday,October30th200110:00AM–11:15AM1950-2000Brandsbuiltbymassadvertising1985-2000DatabaseMarketingarrived,butnotintegratedwithmassadvertising.1996-2000TheInternetarrived,butnotintegratedwithDBMormassadvertising2001BMWbringsthemalltogetherHowbrandmarketinghasevolvedBMWcustomerswant:ArealizationofthebrandpromisePerformance,safety,technology,innovationRecognitionServiceInformationConvenienceHelpfulnessBMWBuyersNotNecessarilyDrivenbyPricePersonalProfitfromPurchase= a(usefulnessofproduct) +b(perceivedbrandvalue) -c(moneycost) -d(timeorinconvenience)HowBMWBuyersMakePurchaseDecisionsConstructors

Peoplewhobuilddatabases

Merge/Purge,Hardware,SoftwareCreators

PeoplewhounderstandstrategyBuildloyaltyandrepeatsalesYouneedbothkinds!TwokindsofdatabasemarketingpeopleIn2000,BMWbuiltarobustcustomerandprospectdatabasedesignedto:ProvideacomprehensiveviewoftheautomotiveandfinancialservicesBMWcustomerDelivershortterm,incrementalrevenuethroughopportunisticmarketingprogramsIncreasecustomerloyaltythroughunderstandingandabilitytodeliverrelevant,timelycommunicationSecureBMW’splaceinitscustomers’livesbyidentifyingwhichhouseholdsaregoodtargetsforadditionalBMWpurchasesSituationAnalysisBMWnowhasacentralsystemofmeasurementTheBMWReportCentermonitorscommunicationsandresponsefromprospectsandcustomersMeasurementincludescostperresponseandcostpersaleBMWnowhastheabilitytoviewprospectsaswellcustomersinitsuniverseThisallowsBMWtoviewthefullshopper-ownercyclefromfirstpointofcontact,throughsaleandcrosssaleThenewmarketingdatabasecontainsabroadrangeofinformationontheBMWconsumerCampaign,response,andfinancialservicedata190appendedindividualandhouseholddatapointsBMWSituationIIAllowingafullviewoftheBMWcustomerdeliverssmartertargetingandprofit-generatingupsellandcrosssellopportunitiesWhichvehicleownersarebesttargetsforcreditcards?HowcanBMWcardownersincreasethelifetimevalueofthevehicleowners?Wherearethepocketsofourmostprofitablecustomers?WhichcustomerswilldeliveradditionalrevenuethroughfinancialservicesproductsaftertheyhavedisposedoftheirBMW?BMWSituationIIIImprovetheeffectivenessofmarketingprogramsintheyears2001–2003inorderto:ReturntoBMWthecostofthedatabasebuildPayfordatabasemaintenancegoingforwardIncreasetherevenuepercustomerovertimeIncreasetheprofitpercustomerIncreasethelifetimevalueofthecombinedBMWautomobileandfinancialservicescustomerBMWDatabaseMarketingGoalsConsistentmeasurementandenhancementofBMWmarketingprogramsAbilitytoprioritizeprospectsandcustomersbasedontheirlikelihoodtobuyIdentificationof“lowhangingfruit”–programsthatcanbequicklyimplementedtogeneraterevenueintheshorttermRefinementofcustomercommunicationsTestingresultsagainstControlGroupsHowBMWmeasuresreturnoninvestmentControlgroupsmeasuretheeffectivenessofeachprogramNon-mailedgroupsthataremeasuredagainstthemailedgroupsReportsontheBMWReportCenterprovideaconsistentformofmeasurementCostperlead,responseandsalemeasurementCross-penetrationofproductpurchasesControlsandMeasurementIncreasedcommunicationeffectivenessIntegrateddatabaseusedbyallgroupsIncreasedefficiency––TherightinformationtotherightcustomerattherighttimeReducedcommunicationexpenseFewerpiecesmailedwithhighereffectivenessIncreasedcustomerparticipationIncreasedcustomersatisfactionIncreasedcorporateandcenterprofitsAhigherlevelofdatafromandaboutBMWcustomersBenefitstoBMWRelationshipMarketingStrategyAllprogramsarebuiltonastate-of-the-artcustomerrelationshipmanagementdatabasewhichprovides:MoreinformationonownersandprospectsthanBMWhaseverassembledbeforePowerfultoolstosupportBMWloyaltyandprospectconversionprogramsAutomatedcommunicationthatsupportstheOwnerExperienceTheDatabaseIncreasecustomerloyaltyIncreaseprospectconversiontosalesratioIncreasevehiclesalesthroughexistingcustomersMaintainexistingBMWhouseholdrecordsKeepcommunicationcostsdownwhileincreasingeffectivenessDevelopaconsistentprocessofprogrammeasurement2001DatabaseMarketingGoalsUsethemarketingdatabasetorealizeacommunicationsdialoguewithbothourprospectsandourcustomersSystematicuseofcustomizedinformationtoattractandretaincustomersFacilitatemutuallybeneficialandrelevantinformationexchangesIncreaseownerloyaltyandcustomeracquisitionratesStrengthenBMWbrandperceptionattheindividualcustomerlevelBMWRelationshipMarketingObjectivesConsumerCommunicationsWelcomeKitLoyaltyCommunicationsProspectPrioritization/ExtendingtheDialogueBMWMagazineEnhancementsBMWOwner’sCircleFinancialServicesProgramsCreditCard&BankingCustomerAcquisitionCrossSellandUpSellMarketingOpportunistic“QuickWin””ProgramsCoreCommunicationsProgramTheOwnerWelcomeKitAstatickitInformationonBMW,theBrandBMW,theCompanyBMW,theProductsItwelcomedpeopletothebrand,butofferednorealtasteoftheBMWExperienceTheoldwelcomekitwas:Apersonalwelcomekit–thatownersrealizewascreatedjustforthemItarriveswithinthefirst30daysItisadialogueopener,aninvitationtotheBMWexperiencethatextendsoverafullyearEachofthekitpiecesenhanceyourperceptionoftheBMWBrandandtheExperienceMultiplecallstoactionwhichleadyoudeeperintotheExperienceItinherentlyfostersthecollectionofinformationneededforfurtherrelationshipdialogueThenewBMWwelcomekitWeeklyfeedofnewownersfromthedatabaseRapidrecordcleanupformailingWeeklyfulfillmentofcorrectednames,addressesanddatatothewelcomekitprogramMonthlymaintenanceofthedatabasewhichsupportsallownerandprospectcommunicationsTheDatabaseSupportstheWelcomeKitTask:ProvideindividualcustomerdataforpersonalizedwelcomekitfulfillmentStrategy:ProvidenewownerpersonalizedfulfillmentinformationonaweeklybasisRecoverkeyinformationrequestedMaintainownerfilesbasedoncollectedinformationforfutureprogramsIdentifycustomersbymodel,financialstatus,andpreparatorysegmentation(i.e.loyalty,activity,etc.)WelcomeKitFulfillmentProcessLoyaltyandOwnerCommunicationsBMWcustomersarefiercelyloyaltotheirbrandLoyaltycanbemeasured:itistherepurchaserateSuccessfulloyaltyisatwowaystreetCustomerloyaltycanbestrengthenedbyrelevantpersonalcommunicationsBMWLoyaltyinitiativescovertheentireownershipexperienceWelcomeKit,Newsletters,BMWMagazine,MultipleVehicleOwnerprogramsTheLoyaltySituationIncreaseBMWprofitsthrough:IncreasedrepurchasebyexistingownersIncreasingthenumberofBMW’’sperhouseholdIncreasedsalesofBMWpreviouslyownedvehiclesIncreaseduse/purchaseofBMWFSproductsEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:OwnerswhogetthecommunicationsOwnerCommunicationGoalsGeneralGoals:ImmersionintheBMWExperiencePromotionofOwner’’sCirclePurchaseofBMWaccessoriesTo3and4yearBMWowners.Goals:IncreasetherepurchaserateMultipleBMWsineachhouseholdWidespreaduseofBMWFinancialServicesproductsTonewBMWowners,Goals:PurchaseBMWfinancialservicesproductsCaptureinformationabouttheirpreferences,lifestyles,automobileinterests,etc.usefulforfurtherdialogLoyaltyBuildingNewslettersOngoingcollectionofnewsandinformationofinteresttoBMWownersOwnersurveystodeterminepreferencesfor:News,information,andtopicsCommunicationChannel(emailorprint)FrequencyBeginwithaprintednewslettertogatheremailaddressesMovetoemailnewslettersasquicklyaspossibleMultipleofferstogenerateownerresponsePromotetheuseofOwner’’sCircleNewsletterStrategyNewproductsBMWawardsSportsstarsthatdriveBMWsRatingsbyleadingcarmagazinesWhytheBMWenginesaresuperiorThehistoryofBMWEventcalendarMagazinereprintsSponsorshipsBMWBrandValuesRoadsideAssistanceServicingrequirementsBMWInsuranceBMWcreditcardsBMWAccessoriesDrivingEventsBMWtradeinpricesBMWOwnerClubsOwner’sCircleWorldnewsfeaturingBMWNewsletterContentBMWMagazineBMWpublishesahigh-valuemagazinetoitsownersinthefirsttwoyearsaftertheirpurchaseBecauseofitsuniversaldistribution,themagazinecanbemorethanamagazineItcanbeadatacollectiontoolforfurtherpersonalizedcommunicationsMagazineStrategy-BeforeCaptureadditionalinformationoncustomersEmailAddressesPurchaseIntentions:ownersidentifyingthemselvesasenteringthepurchasecycleAllowBMWownerstopurchasemerchandiseProvidedirectiontoBMWOnlineStoreforpurchasePushregistrationonOwner’sCircleEachprogrameffectivenessmeasuredbycontrolgroups:ControlGroup:OwnerswhoarenotsentthecommunicationsTestGroup:OwnerswhogetthecommunicationsMagazineStrategyTodayExtendingtheDialogue–ProspectMessagesIncreaseprospectconversiontosellmoreBMWautomobilesProvideasteadyflowof““qualified”leadstoBMWCentersMakecommunicationsinteractiveContinuallyimprovetheconversionratesbybetterprospectingMeasuretheconversionratebyCenter,Region,ProspectLifestyle,IncomeGoalsoftheProspectManagementSystemProspectsdevelopedfromallcontactsources:Telephone,DirectMail,AutoShows,Events,InternetRapidlyqualifiedandscoredCentersreceivequalifiedleadselectronicallywithin48hoursofreceiptProspectsgetBMWmessagewithin48hoursEveryleadtrackedelectronically,withdaily,weekly,&monthlyreportsforBMWmanagementonthewebAutomatedDatabaseProcessesScoringmodelsforincomingprospectrequestsdeterminepriorityFocusonpriorityA&BprospectsMovingtolowerprioritiesasthesystemsprovesitselfFullyintegratedcreativeimplementationinbothelectronicandpapermediaaswellaseventsTestscoringmodelsagainstanticipatedresponseandadjustasneededUtilizea5%controlgroupforaperiodofoneyearforreportingcomparisonsTestingandImplementationStrategySalesResponseToelectronicvs.paperPredeterminedvs.RelationalOffersandincentivesModelingsuccess%prospectconversion(historical)MediapreferenceautomatedsystemCostofprogramCostofsalesMeasurementsoftheProspectProgramMeasuringsuccessthroughthedealersScoredleadssenttoeachdealerConversionsaremeasuredmonthlyEachdealerconversationratiocalculatedProgramsuccessmeasuredbycomparingdealertodealerconversionratioDealer,Market,RegionandNationalaverageconversionratioscreatemeasurablebenchmarksAboveaveragedealersmanagetheirleadsbetterDirectMailandE-mailintegratedcommunicationplanAlternatingcontentdeliverymediumsEachreinforcingtheonethatcamebeforeitUseofdatabaseinformationtodrivecustomizationandrelevanceEachcommunicationintroducinganewpieceoftheBMWExperienceAllcommunicationstieintowebactivitiesIntegrationwithoff-lineandonlinemarketingactivitiesProspectsgiventheopportunitytoopt-outatanypointProspectsremovedfromprogramiftheypurchaseavehicleProspectProgramCommunicationsStrategyImmerseandinvitetheprospectintotheBMWExperienceReinforcetheinitialcontactwithBMWEducateastothedepthoftheBrandProductsandServicesPointtheprospecttowardsatestdriveandthedealerReinforcecoremarketingcommunicationobjectivesabout:BrandValuesBrandHeritageProductattributesTheBMWOwnershipExperienceProgramCommunicationsObjectivesNewproductsBMWintheNewsBMWTechnologyandInnovationBMWSafetyThehistoryofBMWandBMWBrandValuesEventinvitationsTestdriveincentivesBMWgiftsMagazinereprintsBMWFinancialServicesproductsProgramContentObjectivesSellmorecarsby:ImmediateScoringofProspectsImmediateelectronicCenternotificationofleadsImmediatecommunicationswiththeprospectContinuallyengagethecustomerintheExperienceProvidemoreinformationonthedepthoftheBrandReducethecostpercarsoldProvideManagementwithaccurate&timelyknowledgeoftheprospectandsalesprocessIncreasetheoveralleffectivenessoffutureprospectingprogramsbylearningfromthisoneProspectSystemBenefitsQuickwins:XfactorprogramsTheBMWDatabaseoffersahugeopportunitytoutilizeinformationtorefineBMWprogramsXFactorprogramsarebuiltondatamining,anddeliver:HighlyeffectivemarketingprogramsIncrementalrevenueopportunitiesLowcostpersaleIncreasedcustomer/prospectcontactandsatisfactionXFactorSituationTheLoyaltyandProspectPrograms,combinedwiththedatabase,offergreatpotentialforcreative,interactiveXfactorprograms:ContestsProgramsforWomen/MinoritiesSpecialEventsReferralProgramsCertifiedPreviouslyOwnedCarsSecondBMWsineveryhomeLifestyleProgramsCongratulatoryMailingsto3+BMWOwnersXFactorInitiativesPlusimprovedreporting,querydevelopmentandahalfdozennewideastobedevelopedandimplementedduringtheyearXFactor:somethingneweveryquarterIdentifywaystobuildrelationshipswithfemaleowners:BringthemtotheBrand,andkeepthemlongerAppealtotheiruniqueneedsRecognizethepurchasingpowerandinfluencethatautomotivemarketerstypicallyignoreProvidetoolsthatreducepre-dealervisitanxietyTailoredcommunicationsthathighlightwhatwomenarelookingforLivechatsupportbyfemalesDevelopanetworkoffemalesalesrepsX1Women’’sProgramIdentifyhouseholdsthatareprimeprospectstopurchaseasecondBMWAnalyzemultiplepurchasehouseholdsTargetgroupsmostlikelytopurchaseaCPOvehicleHouseholdswithteenagersoryoungadultsIdentifyseasonality––graduation,etc.TesttheprogramoncurrentBMWowners,thenrollouttoprospectsX2:CertifiedPreviouslyOwnedProgramIdentifythosecurrentownerswhoaremostlikelytopurchaseanew7SeriesBMWInvitethesespecialpeopletobeamongasmallgroupwhoareallowedtopreviewthenew7seriesAppealtotheirappreciationofinclusionbyaskingfortheirfeedbackandopinionAllowthemtobeamongthefirsttotestdriveNotifythemperiodicallyofthestatusofthevehicleX3:Series7LaunchIdentifythosecurrentownerswhoaremostlikelytopurchasetheMINICreateauniquelifestylemessagetotheseownersAppealtotheearlyadapterFocusonactivelifestylesGetthemtopreviewonthewebandoptintomarketingmessagesX4:MiniLaunchDevelopaprogramthatuniquelyappealstotheBMWownerCommunicatethepersonalityofthebrandReinforcetherelationshipthattheBMWownerhaswiththeircarAttheanniversaryofpurchase,sendane-cardtoownersDirectthemtoamicrositetogetane-birthdaygiftX5:BirthdayCardsDatabaseprovidesthecentralfocusfor:OwnerloyaltycommunicationprogramsProspectcommunicationsOpportunistic“QuickWin””ProgramsMeasurementofsuccessBuildingBMWBrandLoyaltySummary:BMWhasputitalltogether謝謝謝1月-2320:29:4320:2920:291月-231月-2320:2920:2920:29:431月-231月-2320:29:432023/1/720:29:439、靜夜四四無鄰，，荒居舊舊業貧。。。1月-231月-23Saturday,January7,202310、雨中黃葉樹樹，燈下白頭頭人。。20:29:4420:29:4420:291/7/20238:29:44PM11、以以我我獨獨沈沈久久，，愧愧君君相相見見頻頻。。。。1月月-2320:29:4420:29Jan-2307-Jan-2312、故人人江海海別，，幾度度隔山山川。。。20:29:4420:29:4420:29Saturday,January7,202313、乍見翻疑夢夢，相悲各問問年。。1月-231月-2320:29:4420:29:45January7,202314、他他鄉鄉生生白白發發，，舊舊國國見見青青山山。。。。07一一月月20238:29:45下下午午20:29:451月月-2315、比不不了得得就不不比，，得不不到的的就不不要。。。。一月238:29下下午午1月-2320:29January7,202316、行行動動出出成成果果，，工工作作出出財財富富。。。。2023/1/720:29:4520:29:4507January202317、做前，能夠夠環視四周；；做時，你只只能或者最好好沿著以腳為為起點的射線線向前。。8:29:45下午8:29下下午20:29:451月-239、沒有失失敗，只只有暫時時停止成成功！。。1月-231月-23Saturday,January7,202310、很多事情情努力了未未必有結果果