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HARLOW’S FLOWERS AND GIFTS
Term Assignment #3
DECEMBER 8, 2015
BY: JOSHUA FAVARO AND DANIELA LAMACCHIA
Professor: Karen Booth
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY ..............................................................................................................................2
2. TOUCH POINTS..........................................................................................................................................4
3. DATA MINING............................................................................................................................................6
4. RETENTION STRATEGIES ...........................................................................................................................8
Recommendation #1: Harlow’s Blossom Rewards Program – Programmatic.........................................8
Recommendation #2: A Florist’s Choice (ask the expert) – Humanistic.................................................10
Recommendation #3: Harlow’s Flowers and Gifts App (Service Structure) ...........................................11
5. RETENTION EMAIL CAMPAIGNS .............................................................................................................12
6. ACQUISITION AND WIN-BACK.................................................................................................................15
7. CONCLUSIONS AND RECOMMENDATIONS.............................................................................................21
1. EXECUTIVE SUMMARY
The objective of this report is to analyze Harlow’s Flower and Gifts current situation and make
customer relationship management recommendations in order to create and develop one-to-one
relationships. By following the CRM recommendations outlined in the report, Harlow’s will be
able to grow and maintain their current customer base through more personalized and
customized relationships.
First, there is an analysis of Harlow’s two main touch points: their physical store and their online
store. The analysis will cover common situations that could occasionally occur where customer
relationships are in jeopardy due to a “moment of truth”. This section provides advice on how
Harlow’s can effectively deal with these “moments of truth” in order to turn the customer into a
loyal advocate and veer away from a vocal critic.
Second, the data mining section analyzes the type of customers serviced by Harlow’s and
categorizes them according to the most recent purchase, frequency of purchases and monetary
value spent.
Thirdly, three retention strategies will be analyzed: the Blossoms Rewards Program, a Florist’s
Choice and Harlow’s App. These retention strategies will improve personalization and
customization options that develop one-to-one relationships with profitable customers. Items
that are touched upon are establishment of target segments, acquisition and win-back
strategies.
Each section provides several recommendations intended to improve one-to-one relationships
with new and existing customers with the intention of being applied to Harlow’s current situation.
The touch point’s area recommended Harlow’s to collect information on customer’s birthdays,
purchase dates over the customer’s entire time with the company and surveys/post purchase
feedback. All of this collected data could then be organized and used to individualize
promotions, which builds a stronger bond of loyalty with the brand.
All three retention strategies will tremendously improve Harlow’s current CRM plan. The
Blossoms Rewards Program encourages more involvement and brand usage to earn free items.
A Florist’s Choice allows amateurs and newer customers to Harlow’s as well as professional
enthusiasts to receive one-on-one advice from an expert in the industry. This creates a
competitive advantage for Harlow’s over other florists. Lastly, the Harlow’s app offers further
customization options and adds another touch point that creates a solid retention strategy.
The recommendations portion of the report suggest which strategies should be implemented
immediately, allowing Harlow’s to establish unique benefits that build stronger, more personal
relationships with existing and even new clients. It is also recommended that personalized
emails including pricing incentives be directed towards lost customers in order to reclaim some
members who may have switched to competitor shops.
This report analyzes Harlow’s Flowers and Gifts and provides them with a list of customer
relationship management recommendations for them to achieve their main objective of
encouraging one-to-one relationships through personalization and customization of
product/service offerings.
2. TOUCH POINTS
Harlow’s Flowers and Gifts have an excellent variety of touch points, including their physical
stores, their online stores, through wedding planners/referrals, by telephone, emails, Facebook
page, Twitter account and Pinterest page.
Harlow’s has 20 stores across the GTA making it fairly accessible to the majority of their
consumers. It is a family owned business that has been operating in the GTA for 15 years.
There is also the addition of the online website. This is where customers can choose from a
wide variety of gift baskets and floral arrangements.
This past summer they hired a student to help set up a Pinterest page, Facebook page and a
Twitter account. This allows Harlow’s to be more connected with the online community and
provides them with a stronger online presence.
Physical Store
A customer enters the store looking for the perfect mother’s day gift: a dozen of their mother’s
favourite flowers, pink roses. Unfortunately, Harlow’s does not have enough pink roses to
assemble a dozen, so Harlow’s is faced with a moment of truth.
What Harlow’s can do in order to positively respond to this and turn the customer into a loyal
advocate is to help them assemble an attractive bouquet. Harlow’s may not have enough pink
roses to form a dozen but they can help the customer pick out other possible flower
combinations that will include pink roses and still looks like a delightful arrangement. They will
spend time with the customer, putting together a variety of creations, analyzing the customers’
feedback, until they ultimately reach a combination that the customer find beautiful. The
customer leaves satisfied and fulfilled because they left with something even better than
expected and the staff at Harlow’s was helpful and patient in this case.
This situation could have resulted in a vocal critic if Harlow’s simply told the customer that they
did not have enough for a dozen and could not help any further. Harlow’s is not making any
attempt to help the customer with assembling a bouquet and giving them a wide selection of
possibilities, which results in an angry customer. By having this happen, it will turn the customer
into a vocal critic. They would have expressed their positive experience on social media or even
through word of mouth if they were treated as special, but the action taken in this situation
proved otherwise. Harlow’s seemed too busy to adjust their service to help this customer who
was in dire straits for the perfect floral gift. This results in a vocal critic who will be more inclined
than a loyal advocate to share their views about the company on social media or with friends
and family.
Online Store
A customer places an order online for a Fruit and Gourmet basket. The basket is received on
time, but as the customer opens the package, it is discovered that the order is incorrect. The
customer calls Harlow’s to inform them that they received their order and it must have been
mistaken with someone else’s because it is incorrect.
What Harlow’s can do in order to positively respond to this and turn the customer into a loyal
advocate is to listen to them and find out what went wrong. They will analyze the order, where
the confusion occurred, and provide the consumer with a handful of solutions. They can ask the
customer to return the item free of charge, they can express send the customer their correct
order for free, or they can present the customer with a voucher ($20 off their next purchase, one
free gift with the purchase of a basket, free shipping on orders over $30, etc.) for them to use for
next time.
This situation could cause the customer to become a vocal critic if Harlow’s does nothing about
the issue. The company may make it incredibly difficult for the customer to get in touch with an
employee who could help solve the problem. Harlow’s could even refuse to acknowledge the
mistake and somehow shift the blame on the customer. From the customer’s perspective, they
just want the issue to be fixed, but if Harlow’s makes a big deal of this miscommunication and
even blames the customer, that individual will become increasingly frustrated. This will result in
a vocal critic who will spread this negative experience to all of their friends and family members,
as well as on social media networks. This small mishap could diminish Harlow’s brand if the
vocal critic uses the media to broadcast this lack of effort to fix the problem and handle the
moment of truth correctly.
3. DATA MINING
Upon analyzing the excel spreadsheet, a list of characteristics can be identified:
 37 of the customers have made their last purchase in the month of June (this is more
than half of the customer base). With the business booming in June, it is recommended
that the majority of the advertising and promotions occur during that month.
 The most popular category is the Floral Arrangement.
 The top 8 customers had had an excellent overall score, recent purchase, frequent
purchases and have spent the most. Harlow’s should put more emphasis on these
customers as they are the ones that are the most loyal.
 Harlow’s should have less of a focus on the customers that have a low recency,
frequency and monetary score. These customers are not as loyal and do not contribute
as much as the top 8 customers.
Besides the Recency, Frequency, and Monetary, a recommendation could be for other data to
be collected on an ongoing basis to allow one-to-one relationships. Some of these include the
following:
Customer Birthday
Harlow’s should ask when every customer’s birthday is upon placing an order (doesn’t
necessarily have to be the exact date, it can just be their birthday month). This can be optional,
as some customers prefer not to disclose their birthday. By having information like this, Harlow’s
can send out personal birthday offers to their customers. This will allow customers to feel like
Harlow’s is attempting to develop more of a one-to-one relationship with them.
For example, if the customer’s birthday is in August, Harlow’s can send them an offer for a free
gift (a mini fruit basket with Peridot accents) with their purchase.
List of Purchases
Harlow’s should keep a detail list of their customers and whenever they purchase their gifts.
This is different than recency because instead of just keeping track of their last purchase, they
should keep an annual list of their customers and all of the times/dates they purchase items
throughout the year. By having something like this, Harlow’s will be able to see any purchasing
trends and perhaps send out specific, personalized emails to each customer.
For example, if the customer usually purchasing gifts around the middle of April, Harlow’s can
send them special offers around those months.
Surveys/Post Purchase Recommendations
Harlow’s can provide customers with a short survey for them to complete after their purchases.
Some of the questions will include: how they rate Harlow’s service, accuracy of their orders,
what is your preferred product (flowers, fruit basket, plants, etc.), what can Harlow’s improve on,
what would you like to see, etc.
By having something like this in place, it will benefit both Harlow’s and their customers. Harlow’s
will be able to receive relevant feedback on areas in which they are doing well, and areas where
they can improve upon.
Customers will be able to benefit because Harlow’s will be attending to their needs and wants
as well as making them feel like Harlow’s is interested in what they have to say.
4. RETENTION STRATEGIES
Recommendation #1: Harlow’s Blossom Rewards Program – Programmatic
Harlow’s Blossom Rewards program is a programmatic strategy to retain customers by means
of loyalty incentives. A programmatic strategy is usually some form of loyalty initiative that
motivates customers to engage with the brand more often in order to receive certain rewards.
This is why Harlow’s Blossom Rewards program falls under the programmatic category.
A customer can receive a Blossom Rewards card by registering general contact information
(name, address, age) online and then that member’s card will be shipped to their house within 2
weeks. With every purchase made at Harlow’s Flowers and Gifts location, customers will
receive points (referred to as buds).
Bud System
 For each fruit/gourmet basket purchased, the recipient will receive 50 buds.
 For each plant purchased, the customer will receive 10 buds.
 For each floral arrangement, the member earns 100 buds.
Once the customer reaches a certain amount of buds, he or she can cause those buds to
blossom into rewards.
Blossom System
 It takes 250 buds to earn a free fruit basket.
 100 buds are required to blossom into a free flowering plant.
 When a member reaches 1,000 buds, that customer could use their buds to blossom
into a free floral arrangement.
Progress can be monitored on a member’s account on Harlow’s website and periodic emails will
be sent out when a customer has reached a threshold where they can redeem buds. The basic
concept of the rewards program is common, which is effective in this situation because there
are few florist loyalty programs. Therefore, introducing an innovative, complicated loyalty
program to an industry that is somewhat foreign to any rewards systems is a risky endeavor.
However, launching a loyalty program with a common concept among businesses in other
industries will result in a smooth transition.
Loyalty programs, as the name suggests, creates stronger, more loyal bonds with customers by
giving them incentives to continue purchasing from this company at a more frequent rate. The
more positive experiences that occur between the company and client will result in a stronger
one-to-one relationship, which is what a loyalty program achieves. Customers are given the
opportunity to personalize their use of this rewards system because they can use their buds to
earn free products that are most beneficial to them. For example, if a wedding planner only
purchases floral arrangements for her clients, she will allocate her earned 1,000 buds towards a
free floral arrangement, since she would not have as much use for individual flowering plants.
Reward programs fit perfectly with the three demographics listed in section 6 because
regardless of the different psychographics and other factors, each audience is a frequent
purchaser of florist items. They will see the benefit immediately as they start redeeming their
buds. For customers who are flower enthusiasts, but are more transactional buyers who do not
associate themselves with one florist, this loyalty program will provide Harlow’s with a
competitive advantage that could provide these transactional customers with the incentive they
need to switch. Therefore, this loyalty program provides enticing reward incentives that retain
existing customers but also convert transactional buyers.
Recommendation #2: A Florist’s Choice (ask the expert) – Humanistic
“A Florist’s Choice” is a humanistic strategy where employees at Harlow’s locations will choose
floral arrangements each month that they appreciate the most, along with advice on the best
landscape situations to use these arrangements. A weekly blog “Bloom or Bust” will be posted
on Harlow’s website with tips for amateurs and pros to use floral arrangements that complement
each other and its surroundings. There will also be a “dear florist” feature, where on Harlow’s
website, customers can ask specific floral questions and selected trained experts at Harlow’s
will respond with professional advice.
Harlow’s florists are providing expert advice on floral arrangements, which is in harmony with
the definition of a humanistic approach, involving customers being given reliable information
from highly trained employees.
This strategy creates a one-to-one relationships with customers because this new service is
providing more than transactional information. If Harlow’s was just worried about “making the
sale”, the company’s focus would not be on providing expert advice on which flowers to choose,
but rather the main message would be to “purchase our flowers because they are better than
the competitors’”. This strategy shows customers that Harlow’s understands their client’s
varying expertise and wants to give each individual the right advice to succeed in their
endeavor.
This process develops a stronger relationship because if a customer finds the advice useful, he
or she will be inclined to return and take advantage of the company’s expertise. By providing
helpful information to both amateurs and professional florists, Harlow’s is recognizing varying
customer levels and trying to customize their advice to meet each segment’s needs. When
customers see that company information is being tailored to them on a more personal level
(especially by means of the online “dear florist” service), they are drawn to the organization
even more.
Harlow’s will grow and retain their customer base by establishing a competitive advantage as
the florist shop with the best expert advice tailored to different customer segments.
Recommendation #3: Harlow’s Flowers and Gifts App (Service Structure)
Harlow’s Flowers and Gifts App is a service structure strategy which will allow customers to
order flowers or gift baskets on-the-go by means of this application available on android or
apple devices.
The app offers all the floral arrangements that are available on Harlow’s website as well as the
shopping cart feature to purchase items. The app will also allow users to create a “favourites”
list of flowers or floral arrangements which they purchase often. The app allows users to access
the Bloom or Bust blogs and share them on social networks.
This app strategy is classified as a service structure approach because it strengthens a
relationship with and increases involvement from consumers by means of some form of
technology, in this case, mobile devices.
This app is an excellent way to improve one-to-one relationships because it provides customers
with another touch point to Harlow’s. This increases the amount of time a customer will spend
with Harlow’s, thus enhancing the relationship through more frequent positive brand
experiences.
This strategy will be most effective with the wedding planner segment (explained in further detail
in section 6) because leading a stressful work schedule requires convenient purchase options.
Instead of going to a store location, or needing a computer, the wedding planner could
realistically order floral arrangements for his or her clients on public transportation, for example,
by using the app.
Harlow’s app also adds the ability to personalize the offerings available by means of the
“favourites” feature. This also provides Harlow’s with further valuable customer information on
individual preferences. That information could be used in a customized email to the recipient
based on floral arrangements they have favourited in the past.
Harlow’s will grow their customer base by motivating transactional customers to use another
touch point more often, which could eventually convert this client into a loyal enthusiast of
Harlow’s brand due to the increased ability to customize and personalize products/services.
5. RETENTION EMAIL CAMPAIGNS
Type of Email: Newsletter
Objective of the Email: Inform customers of the new loyalty program, along with how to
register and the rewards customers can earn from being a member. The goal is for 20% of the
recipients who open the email to register for Harlow’s Blossom Rewards Program. While a
majority may not register immediately, the objective is that this email will generate awareness of
the new loyalty program and results in inquiries or additional registrations when customers shop
at Harlow’s store locations.
Recipients: The top 30 customers ranked by their total RFM score will receive this email. Since
this is an important announcement which reveals a new feature to Harlow’s brand, it is
imperative that a significant amount of customers are provided with this information. However, it
would be unwise to send this email to all customers, knowing that a good portion of them will not
be moved to action.
Therefore, it was decided that approximately half of Harlow’s customers (30) would receive this
message. This would ensure that the clients who obtain this email have some form of
attachment to the brand since they rank decent in all three categories. This newsletter could
provide them with that additional reason to return sooner to take advantage of the rewards
program.
Success of the Email: Success will be tracked by several measurements.
 Open rate: number of opened emails divided by the number of sent emails
 Click-through rate: number of clicks divided by the number of emails delivered
 Registration rate: number of consumers who register after clicking on the “Join Now” link
and applying for the loyalty card divided by the number of opened emails
When the Email will be sent: Tuesday 7am
People tend to read their emails first thing in the morning, whether at home or when they get to
work. Tuesday is earlier in the work week when employees are in the routine. This is better than
Mondays and Fridays because either employees are just coming back from their weekend break
or they are trying to catch up on work in preparation for the weekend. There are many other
factors that make it less likely for people to check their email on Mondays or later on in the
week, which make Tuesday an ideal day for the message to be delivered.
Subject Line: Register Now! Special Rewards from Harlow’s
Call to Action: Join Now
This is an effective call to action because it is short, tells the customer exactly what to do (starts
with a verb: join) and is pertinent to the action that the user will have to take. In order to become
a member of Harlow’s rewards program, they will have to join. The word “now” creates a sense
of urgency, which moves the customer to action.
Email Wireframe:
6. ACQUISITION AND WIN-BACK
Segmentation Local Floral
Designers
Senior Floral
Enthusiasts
Wedding Planners
Demographics Ages: 35-55
Gender: Primarily
female
Income: Middle to
high
$40,000-$100,000
Sufficient disposable
income
Family Status:
married, divorced,
empty nesters
Education: Post-
secondary graduate
Ages: 55+
Gender: Primarily
female
Income: Middle to high
income (or no income,
but pension)
$40,000-$100,000
Retired or close to
retirement
Substantial disposable
income
Family status: Married,
Widowed or Divorced
Education: High school
or post-secondary
graduate
Ages: 20-55
Gender: Primarily
female
Income: Middle to high
$40,000-$80,000
High disposable
income
Family status: Single
or married, divorced
Education: Post-
secondary graduate
Geographics Suburban or Urban Suburban or Urban Suburban or Urban
Psychographics Enjoys gardening and
floral design as work
Outgoing, vast
network of friends and
local clients
Prefer the outdoors
Busy, floral design is
probably a part-time
endeavor
Enjoys gardening and
floral design as a
hobby
Has a lot of time for
hobbies and outdoor
activities
Prefer the outdoors
Social, competitive
and outgoing
Organized, scheduling
is essential for work
duties
Technologically savvy
Enjoys going out for
social gatherings
Behavioural Medium
to high usage (weekly
purchases)
Brand loyal
Frequent users
(regularly)
Medium to high usage
(weekly purchasers)
Brand loyal
Frequent users (daily)
High usage (constant
demand for floral
arrangements at
weddings)
Usually brand loyal
(depending on client’s
needs and financial
ability)
Frequent users
Local Floral Designers
 This demographic has an ample amount of disposable income.
 They possess a strong enjoyment from and knack for gardening and flowers.
 Their love for flowers goes beyond a hobby as floral design is a part-time or occasional
business.
 Weekly purchases for their own pleasure.
 Purchases are made for their clients (friends, or customers through friends).
 They are loyal to florists who provide a wide variety of options.
Senior Floral Enthusiasts
 This demographic has a significant amount of disposable income after years of working
and saving.
 They have lots of time on their hands as they are retired or cutting back on work hours in
preparation for retirement.
 They also have a strong love for gardening and flowers.
 Purchasing flowers is a part of their week.
 They desire to continue adding to their floral arrangement on an ongoing basis.
 This passion moves them to purchase floral arrangements for family and friends.
 They are loyal to florists who provide a wide variety of options.
Wedding Planners
 Their interest in flowers is linked with their job as a wedding planner.
 There is a constant demand for floral arrangements at weddings.
 They purchase in large quantity and deal with profitable customers who are willing to
spend a significant amount on wedding décor.
 Due to their extensive customer base, they are frequent purchasers of floral
arrangements.
 This consistent association with florists moves them to make occasional personal
purchases of floral arrangements.
Acquisition Timing
Since a florist’s business is in a seasonal industry, proper timing of promotions during busy
buying cycles. If offers are positioned at the right time, they will appeal to customers more
effectively because these clients are actively searching for this product during its peak season in
the year.
For example, as spring is approaching, Harlow’s Flowers and Gifts should offer 40% off all floral
arrangements, plants and gift baskets for the last two weeks of April. This promotion should be
emphasized on the company’s social media pages as well as throughout the store. Printing this
ad in the local newspaper and on flyers, as well as in floral catalogs will ensure that this
message’s scope and frequency is vast.
By offering this promotion as the start of the peak season approaches, it builds anticipation and
attracts an audience that is interested in floral arrangements. This target segment has flowers
on their mind because it is the ideal time of year to make these purchases. Therefore, these
target demographics will take advantage of this competitive pricing incentive at the perfect time
of year.
Word of Mouth
Since Harlow’s Flowers and Gifts is a smaller, local company, their opportunity for reaching a
large population with mass media is limited due to substantial costs. However, word of mouth
advertising is an excellent opportunity to build a loyal customer base among the local area and
gradually broaden the company’s geographical zone. This can be done by offering an incentive
for existing customers to refer Harlow’s business to their family and friends who would be viable
clients.
For example, for every purchaser who mentions the person who referred them to Harlow’s, that
existing customer receives a $10 gift card. This promotion will be available for a limited time and
will occur at several occasions throughout the year.
This strategy motivates existing customers to think of people in their network who would be
interested in Harlow’s products. This acquisition method creates a larger customer base of
referrals who may eventually turn into loyal clients themselves if they are attracted to the
company’s offerings. Also, this strategy engenders loyalty among already existing customers
because it gets them involved in the buying process, enhancing their experience through reward
incentives.
Unattractive Customers
Students and young adult males are an unattractive customer group.
 This demographic has a relatively low disposable income.
 There is an evident lack of interest in floral arrangements.
 They are occasional-purchase driven so, they are inconsistent, unreliable buyers.
 The time for floral hobbies are limited with school and work.
 This demographic generally prefers activities that involve socialization with friends.
Win-back Customers
The most substantial segment of customers that Harlow’s Flowers and Gifts would like to win
back are clients who once purchased often from the company, but then switched to a competitor
florist.
 These customers have an evident interest in floral arrangements.
 They were once frequent customers of Harlow’s.
 They are still floral enthusiasts and contribute to a florist’s profits, even though it is not
currently Harlow’s.
 They have the disposable income and desire to continue being profitable customers for
a floral company.
Another customer segment would be customers who occasionally purchased from Harlow’s,
possibly for special events throughout the year, but then stopped being an active client for
certain reasons.
 They were once active clients who purchased from Harlow’s to fulfill a need, even if
these transactions were not very frequent.
 Occasional buyers always have the opportunity to become more frequent and profitable
customers.
 If there was a past need for floral arrangements or some form of floral services, that
need could theoretically re-emerge with the right circumstances.
 The reason for becoming an inactive buyer could likely be unrelated to the need aspect
of the purchase. If the need is still there, other factors could cause the customer to
resume a transactional relationship, at the very least, with Harlow’s once again.
Personalized, Pricing Incentive Email
Essentially, with all win-back strategies, a lower reacquisition price is necessary to generate
interest from the lost customer. A limited time offer could persuade the customer to have a
change of heart and attempt to renew a transactional relationship with the company as a start.
This strategy involves providing a personal email to the lost customer, with a pricing incentive
that catches the recipient’s attention. This strategy is pertinent to Harlow’s business operations
because they collect emails with every customer willing to provide one. Also, any online
purchases require an email for order confirmation.
For example, Harlow’s could offer 50% off any item or service if the customer redeems a code
enclosed in the email within the next two weeks. The email should include the recipient’s name
as well as some other form of information to add a personal touch. This could include some
recommendations based on what the customer used to normally purchase from Harlow’s.
If the email is prepared with that customer’s preferences in mind, it will effectively remind him or
her of a need that is not currently being filled. This is a pricing incentive that could cause the
customer to feel that this promotion is too good to avoid. The two week deadline moves the
customer to act quickly and not forget. The entire email approach is a way to remind the
customer of what he or she is missing by not meeting this need and the solid company
relationship that client had with Harlow’s.
7. CONCLUSIONS AND RECOMMENDATIONS
The objective of this report is to make customer relationship management recommendations
based on Harlow’s Flower and Gifts current situation, in order to create and develop one-to-one
relationships. The following CRM strategies will help grow and retain Harlow’s current customer
base through more personalized and customized relationships.
First, an analysis of Harlow’s two main touch points address common situations, which could
occur occasionally, where customer relationships are in jeopardy due to a moment of truth. This
section provides practical advice on how to effectively deal with these moments of truth in order
to turn the customer into a loyal advocate as opposed to a vocal critic. Handling these delicate
situations in an effective way will build stronger, individual relationships with customers and will
result in positive word of mouth referrals, thus retaining and growing Harlow’s customer base.
Next, the data mining section analyzed the type of customers serviced by Harlow’s and
segmented them according to recency, frequency and monetary categories. This helps Harlow’s
understand their customer base and distinguish profitable from unprofitable clients. This will
allow Harlow’s to focus valuable time on clients who will benefit the company the most.
Three retention strategies, the Blossoms Rewards Program, a Florist’s Choice and Harlow’s
App were all recommended to improve personalization and customization options, which in turn
develops one-to-one relationships with profitable customers. An email example was provided to
inform a certain group of Harlow’s customers of the new Blossoms Rewards Program, if this
retention strategy is used. Finally, select target audiences are identified which should be major
focuses of Harlow’s promotional campaigns. After establishing these target segments,
acquisition and win-back strategies were created to better reach these primary audiences with
specifically designed promotions.
Each section provides several recommendations which could be applied to Harlow’s current
situation in order to develop one-to-one relationships with new and existing customers. The
touch point’s area recommended Harlow’s to collect birthdays, purchase dates over the
customer’s entire time with the company as well as surveys. All of this collected data could then
be organized and used to individualize promotions, which makes the customer feel like they are
receiving preferential treatment and builds a stronger bond of loyalty with the brand as a result.
All three retention strategies could be initiated in the short-term and will tremendously improve
Harlow’s current CRM plan. The Blossoms Rewards Program encourages more brand usage
and involvement to earn free items. A Florist’s Choice allows amateurs as well as professional
enthusiasts to receive one-on-one advice from an expert in the industry, which creates a
competitive advantage for Harlow’s over other florist shops. Finally, Harlow’s app offers further
customization options and adds another touch point of interaction with the customer.
It is recommended that each of these strategies be implemented in their own time, because
each plan offers a unique benefit which builds stronger, personal relationships with existing and
even new clients. It is also recommended that personalized, pricing incentive email directed
towards lost customers be initiated to reclaim some members who may have switched to
competitor shops.
All of these recommendations have the main objective of encouraging one-to-one relationships
through personalization and customization of product/service offerings.

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Customer Relationship Management Florist Shop Report

  • 1. HARLOW’S FLOWERS AND GIFTS Term Assignment #3 DECEMBER 8, 2015 BY: JOSHUA FAVARO AND DANIELA LAMACCHIA Professor: Karen Booth
  • 2. TABLE OF CONTENTS 1. EXECUTIVE SUMMARY ..............................................................................................................................2 2. TOUCH POINTS..........................................................................................................................................4 3. DATA MINING............................................................................................................................................6 4. RETENTION STRATEGIES ...........................................................................................................................8 Recommendation #1: Harlow’s Blossom Rewards Program – Programmatic.........................................8 Recommendation #2: A Florist’s Choice (ask the expert) – Humanistic.................................................10 Recommendation #3: Harlow’s Flowers and Gifts App (Service Structure) ...........................................11 5. RETENTION EMAIL CAMPAIGNS .............................................................................................................12 6. ACQUISITION AND WIN-BACK.................................................................................................................15 7. CONCLUSIONS AND RECOMMENDATIONS.............................................................................................21
  • 3. 1. EXECUTIVE SUMMARY The objective of this report is to analyze Harlow’s Flower and Gifts current situation and make customer relationship management recommendations in order to create and develop one-to-one relationships. By following the CRM recommendations outlined in the report, Harlow’s will be able to grow and maintain their current customer base through more personalized and customized relationships. First, there is an analysis of Harlow’s two main touch points: their physical store and their online store. The analysis will cover common situations that could occasionally occur where customer relationships are in jeopardy due to a “moment of truth”. This section provides advice on how Harlow’s can effectively deal with these “moments of truth” in order to turn the customer into a loyal advocate and veer away from a vocal critic. Second, the data mining section analyzes the type of customers serviced by Harlow’s and categorizes them according to the most recent purchase, frequency of purchases and monetary value spent. Thirdly, three retention strategies will be analyzed: the Blossoms Rewards Program, a Florist’s Choice and Harlow’s App. These retention strategies will improve personalization and customization options that develop one-to-one relationships with profitable customers. Items that are touched upon are establishment of target segments, acquisition and win-back strategies. Each section provides several recommendations intended to improve one-to-one relationships with new and existing customers with the intention of being applied to Harlow’s current situation. The touch point’s area recommended Harlow’s to collect information on customer’s birthdays, purchase dates over the customer’s entire time with the company and surveys/post purchase feedback. All of this collected data could then be organized and used to individualize promotions, which builds a stronger bond of loyalty with the brand.
  • 4. All three retention strategies will tremendously improve Harlow’s current CRM plan. The Blossoms Rewards Program encourages more involvement and brand usage to earn free items. A Florist’s Choice allows amateurs and newer customers to Harlow’s as well as professional enthusiasts to receive one-on-one advice from an expert in the industry. This creates a competitive advantage for Harlow’s over other florists. Lastly, the Harlow’s app offers further customization options and adds another touch point that creates a solid retention strategy. The recommendations portion of the report suggest which strategies should be implemented immediately, allowing Harlow’s to establish unique benefits that build stronger, more personal relationships with existing and even new clients. It is also recommended that personalized emails including pricing incentives be directed towards lost customers in order to reclaim some members who may have switched to competitor shops. This report analyzes Harlow’s Flowers and Gifts and provides them with a list of customer relationship management recommendations for them to achieve their main objective of encouraging one-to-one relationships through personalization and customization of product/service offerings.
  • 5. 2. TOUCH POINTS Harlow’s Flowers and Gifts have an excellent variety of touch points, including their physical stores, their online stores, through wedding planners/referrals, by telephone, emails, Facebook page, Twitter account and Pinterest page. Harlow’s has 20 stores across the GTA making it fairly accessible to the majority of their consumers. It is a family owned business that has been operating in the GTA for 15 years. There is also the addition of the online website. This is where customers can choose from a wide variety of gift baskets and floral arrangements. This past summer they hired a student to help set up a Pinterest page, Facebook page and a Twitter account. This allows Harlow’s to be more connected with the online community and provides them with a stronger online presence. Physical Store A customer enters the store looking for the perfect mother’s day gift: a dozen of their mother’s favourite flowers, pink roses. Unfortunately, Harlow’s does not have enough pink roses to assemble a dozen, so Harlow’s is faced with a moment of truth. What Harlow’s can do in order to positively respond to this and turn the customer into a loyal advocate is to help them assemble an attractive bouquet. Harlow’s may not have enough pink roses to form a dozen but they can help the customer pick out other possible flower combinations that will include pink roses and still looks like a delightful arrangement. They will spend time with the customer, putting together a variety of creations, analyzing the customers’ feedback, until they ultimately reach a combination that the customer find beautiful. The customer leaves satisfied and fulfilled because they left with something even better than expected and the staff at Harlow’s was helpful and patient in this case.
  • 6. This situation could have resulted in a vocal critic if Harlow’s simply told the customer that they did not have enough for a dozen and could not help any further. Harlow’s is not making any attempt to help the customer with assembling a bouquet and giving them a wide selection of possibilities, which results in an angry customer. By having this happen, it will turn the customer into a vocal critic. They would have expressed their positive experience on social media or even through word of mouth if they were treated as special, but the action taken in this situation proved otherwise. Harlow’s seemed too busy to adjust their service to help this customer who was in dire straits for the perfect floral gift. This results in a vocal critic who will be more inclined than a loyal advocate to share their views about the company on social media or with friends and family. Online Store A customer places an order online for a Fruit and Gourmet basket. The basket is received on time, but as the customer opens the package, it is discovered that the order is incorrect. The customer calls Harlow’s to inform them that they received their order and it must have been mistaken with someone else’s because it is incorrect. What Harlow’s can do in order to positively respond to this and turn the customer into a loyal advocate is to listen to them and find out what went wrong. They will analyze the order, where the confusion occurred, and provide the consumer with a handful of solutions. They can ask the customer to return the item free of charge, they can express send the customer their correct order for free, or they can present the customer with a voucher ($20 off their next purchase, one free gift with the purchase of a basket, free shipping on orders over $30, etc.) for them to use for next time. This situation could cause the customer to become a vocal critic if Harlow’s does nothing about the issue. The company may make it incredibly difficult for the customer to get in touch with an employee who could help solve the problem. Harlow’s could even refuse to acknowledge the mistake and somehow shift the blame on the customer. From the customer’s perspective, they just want the issue to be fixed, but if Harlow’s makes a big deal of this miscommunication and even blames the customer, that individual will become increasingly frustrated. This will result in a vocal critic who will spread this negative experience to all of their friends and family members, as well as on social media networks. This small mishap could diminish Harlow’s brand if the vocal critic uses the media to broadcast this lack of effort to fix the problem and handle the moment of truth correctly.
  • 7. 3. DATA MINING Upon analyzing the excel spreadsheet, a list of characteristics can be identified:  37 of the customers have made their last purchase in the month of June (this is more than half of the customer base). With the business booming in June, it is recommended that the majority of the advertising and promotions occur during that month.  The most popular category is the Floral Arrangement.  The top 8 customers had had an excellent overall score, recent purchase, frequent purchases and have spent the most. Harlow’s should put more emphasis on these customers as they are the ones that are the most loyal.  Harlow’s should have less of a focus on the customers that have a low recency, frequency and monetary score. These customers are not as loyal and do not contribute as much as the top 8 customers. Besides the Recency, Frequency, and Monetary, a recommendation could be for other data to be collected on an ongoing basis to allow one-to-one relationships. Some of these include the following: Customer Birthday Harlow’s should ask when every customer’s birthday is upon placing an order (doesn’t necessarily have to be the exact date, it can just be their birthday month). This can be optional, as some customers prefer not to disclose their birthday. By having information like this, Harlow’s can send out personal birthday offers to their customers. This will allow customers to feel like Harlow’s is attempting to develop more of a one-to-one relationship with them. For example, if the customer’s birthday is in August, Harlow’s can send them an offer for a free gift (a mini fruit basket with Peridot accents) with their purchase.
  • 8. List of Purchases Harlow’s should keep a detail list of their customers and whenever they purchase their gifts. This is different than recency because instead of just keeping track of their last purchase, they should keep an annual list of their customers and all of the times/dates they purchase items throughout the year. By having something like this, Harlow’s will be able to see any purchasing trends and perhaps send out specific, personalized emails to each customer. For example, if the customer usually purchasing gifts around the middle of April, Harlow’s can send them special offers around those months. Surveys/Post Purchase Recommendations Harlow’s can provide customers with a short survey for them to complete after their purchases. Some of the questions will include: how they rate Harlow’s service, accuracy of their orders, what is your preferred product (flowers, fruit basket, plants, etc.), what can Harlow’s improve on, what would you like to see, etc. By having something like this in place, it will benefit both Harlow’s and their customers. Harlow’s will be able to receive relevant feedback on areas in which they are doing well, and areas where they can improve upon. Customers will be able to benefit because Harlow’s will be attending to their needs and wants as well as making them feel like Harlow’s is interested in what they have to say.
  • 9. 4. RETENTION STRATEGIES Recommendation #1: Harlow’s Blossom Rewards Program – Programmatic Harlow’s Blossom Rewards program is a programmatic strategy to retain customers by means of loyalty incentives. A programmatic strategy is usually some form of loyalty initiative that motivates customers to engage with the brand more often in order to receive certain rewards. This is why Harlow’s Blossom Rewards program falls under the programmatic category. A customer can receive a Blossom Rewards card by registering general contact information (name, address, age) online and then that member’s card will be shipped to their house within 2 weeks. With every purchase made at Harlow’s Flowers and Gifts location, customers will receive points (referred to as buds). Bud System  For each fruit/gourmet basket purchased, the recipient will receive 50 buds.  For each plant purchased, the customer will receive 10 buds.  For each floral arrangement, the member earns 100 buds. Once the customer reaches a certain amount of buds, he or she can cause those buds to blossom into rewards. Blossom System  It takes 250 buds to earn a free fruit basket.  100 buds are required to blossom into a free flowering plant.  When a member reaches 1,000 buds, that customer could use their buds to blossom into a free floral arrangement. Progress can be monitored on a member’s account on Harlow’s website and periodic emails will be sent out when a customer has reached a threshold where they can redeem buds. The basic concept of the rewards program is common, which is effective in this situation because there are few florist loyalty programs. Therefore, introducing an innovative, complicated loyalty program to an industry that is somewhat foreign to any rewards systems is a risky endeavor. However, launching a loyalty program with a common concept among businesses in other industries will result in a smooth transition.
  • 10. Loyalty programs, as the name suggests, creates stronger, more loyal bonds with customers by giving them incentives to continue purchasing from this company at a more frequent rate. The more positive experiences that occur between the company and client will result in a stronger one-to-one relationship, which is what a loyalty program achieves. Customers are given the opportunity to personalize their use of this rewards system because they can use their buds to earn free products that are most beneficial to them. For example, if a wedding planner only purchases floral arrangements for her clients, she will allocate her earned 1,000 buds towards a free floral arrangement, since she would not have as much use for individual flowering plants. Reward programs fit perfectly with the three demographics listed in section 6 because regardless of the different psychographics and other factors, each audience is a frequent purchaser of florist items. They will see the benefit immediately as they start redeeming their buds. For customers who are flower enthusiasts, but are more transactional buyers who do not associate themselves with one florist, this loyalty program will provide Harlow’s with a competitive advantage that could provide these transactional customers with the incentive they need to switch. Therefore, this loyalty program provides enticing reward incentives that retain existing customers but also convert transactional buyers.
  • 11. Recommendation #2: A Florist’s Choice (ask the expert) – Humanistic “A Florist’s Choice” is a humanistic strategy where employees at Harlow’s locations will choose floral arrangements each month that they appreciate the most, along with advice on the best landscape situations to use these arrangements. A weekly blog “Bloom or Bust” will be posted on Harlow’s website with tips for amateurs and pros to use floral arrangements that complement each other and its surroundings. There will also be a “dear florist” feature, where on Harlow’s website, customers can ask specific floral questions and selected trained experts at Harlow’s will respond with professional advice. Harlow’s florists are providing expert advice on floral arrangements, which is in harmony with the definition of a humanistic approach, involving customers being given reliable information from highly trained employees. This strategy creates a one-to-one relationships with customers because this new service is providing more than transactional information. If Harlow’s was just worried about “making the sale”, the company’s focus would not be on providing expert advice on which flowers to choose, but rather the main message would be to “purchase our flowers because they are better than the competitors’”. This strategy shows customers that Harlow’s understands their client’s varying expertise and wants to give each individual the right advice to succeed in their endeavor. This process develops a stronger relationship because if a customer finds the advice useful, he or she will be inclined to return and take advantage of the company’s expertise. By providing helpful information to both amateurs and professional florists, Harlow’s is recognizing varying customer levels and trying to customize their advice to meet each segment’s needs. When customers see that company information is being tailored to them on a more personal level (especially by means of the online “dear florist” service), they are drawn to the organization even more. Harlow’s will grow and retain their customer base by establishing a competitive advantage as the florist shop with the best expert advice tailored to different customer segments.
  • 12. Recommendation #3: Harlow’s Flowers and Gifts App (Service Structure) Harlow’s Flowers and Gifts App is a service structure strategy which will allow customers to order flowers or gift baskets on-the-go by means of this application available on android or apple devices. The app offers all the floral arrangements that are available on Harlow’s website as well as the shopping cart feature to purchase items. The app will also allow users to create a “favourites” list of flowers or floral arrangements which they purchase often. The app allows users to access the Bloom or Bust blogs and share them on social networks. This app strategy is classified as a service structure approach because it strengthens a relationship with and increases involvement from consumers by means of some form of technology, in this case, mobile devices. This app is an excellent way to improve one-to-one relationships because it provides customers with another touch point to Harlow’s. This increases the amount of time a customer will spend with Harlow’s, thus enhancing the relationship through more frequent positive brand experiences. This strategy will be most effective with the wedding planner segment (explained in further detail in section 6) because leading a stressful work schedule requires convenient purchase options. Instead of going to a store location, or needing a computer, the wedding planner could realistically order floral arrangements for his or her clients on public transportation, for example, by using the app. Harlow’s app also adds the ability to personalize the offerings available by means of the “favourites” feature. This also provides Harlow’s with further valuable customer information on individual preferences. That information could be used in a customized email to the recipient based on floral arrangements they have favourited in the past. Harlow’s will grow their customer base by motivating transactional customers to use another touch point more often, which could eventually convert this client into a loyal enthusiast of Harlow’s brand due to the increased ability to customize and personalize products/services.
  • 13. 5. RETENTION EMAIL CAMPAIGNS Type of Email: Newsletter Objective of the Email: Inform customers of the new loyalty program, along with how to register and the rewards customers can earn from being a member. The goal is for 20% of the recipients who open the email to register for Harlow’s Blossom Rewards Program. While a majority may not register immediately, the objective is that this email will generate awareness of the new loyalty program and results in inquiries or additional registrations when customers shop at Harlow’s store locations. Recipients: The top 30 customers ranked by their total RFM score will receive this email. Since this is an important announcement which reveals a new feature to Harlow’s brand, it is imperative that a significant amount of customers are provided with this information. However, it would be unwise to send this email to all customers, knowing that a good portion of them will not be moved to action. Therefore, it was decided that approximately half of Harlow’s customers (30) would receive this message. This would ensure that the clients who obtain this email have some form of attachment to the brand since they rank decent in all three categories. This newsletter could provide them with that additional reason to return sooner to take advantage of the rewards program. Success of the Email: Success will be tracked by several measurements.  Open rate: number of opened emails divided by the number of sent emails  Click-through rate: number of clicks divided by the number of emails delivered  Registration rate: number of consumers who register after clicking on the “Join Now” link and applying for the loyalty card divided by the number of opened emails
  • 14. When the Email will be sent: Tuesday 7am People tend to read their emails first thing in the morning, whether at home or when they get to work. Tuesday is earlier in the work week when employees are in the routine. This is better than Mondays and Fridays because either employees are just coming back from their weekend break or they are trying to catch up on work in preparation for the weekend. There are many other factors that make it less likely for people to check their email on Mondays or later on in the week, which make Tuesday an ideal day for the message to be delivered. Subject Line: Register Now! Special Rewards from Harlow’s Call to Action: Join Now This is an effective call to action because it is short, tells the customer exactly what to do (starts with a verb: join) and is pertinent to the action that the user will have to take. In order to become a member of Harlow’s rewards program, they will have to join. The word “now” creates a sense of urgency, which moves the customer to action.
  • 16. 6. ACQUISITION AND WIN-BACK Segmentation Local Floral Designers Senior Floral Enthusiasts Wedding Planners Demographics Ages: 35-55 Gender: Primarily female Income: Middle to high $40,000-$100,000 Sufficient disposable income Family Status: married, divorced, empty nesters Education: Post- secondary graduate Ages: 55+ Gender: Primarily female Income: Middle to high income (or no income, but pension) $40,000-$100,000 Retired or close to retirement Substantial disposable income Family status: Married, Widowed or Divorced Education: High school or post-secondary graduate Ages: 20-55 Gender: Primarily female Income: Middle to high $40,000-$80,000 High disposable income Family status: Single or married, divorced Education: Post- secondary graduate Geographics Suburban or Urban Suburban or Urban Suburban or Urban
  • 17. Psychographics Enjoys gardening and floral design as work Outgoing, vast network of friends and local clients Prefer the outdoors Busy, floral design is probably a part-time endeavor Enjoys gardening and floral design as a hobby Has a lot of time for hobbies and outdoor activities Prefer the outdoors Social, competitive and outgoing Organized, scheduling is essential for work duties Technologically savvy Enjoys going out for social gatherings Behavioural Medium to high usage (weekly purchases) Brand loyal Frequent users (regularly) Medium to high usage (weekly purchasers) Brand loyal Frequent users (daily) High usage (constant demand for floral arrangements at weddings) Usually brand loyal (depending on client’s needs and financial ability) Frequent users Local Floral Designers  This demographic has an ample amount of disposable income.  They possess a strong enjoyment from and knack for gardening and flowers.  Their love for flowers goes beyond a hobby as floral design is a part-time or occasional business.  Weekly purchases for their own pleasure.  Purchases are made for their clients (friends, or customers through friends).  They are loyal to florists who provide a wide variety of options.
  • 18. Senior Floral Enthusiasts  This demographic has a significant amount of disposable income after years of working and saving.  They have lots of time on their hands as they are retired or cutting back on work hours in preparation for retirement.  They also have a strong love for gardening and flowers.  Purchasing flowers is a part of their week.  They desire to continue adding to their floral arrangement on an ongoing basis.  This passion moves them to purchase floral arrangements for family and friends.  They are loyal to florists who provide a wide variety of options. Wedding Planners  Their interest in flowers is linked with their job as a wedding planner.  There is a constant demand for floral arrangements at weddings.  They purchase in large quantity and deal with profitable customers who are willing to spend a significant amount on wedding décor.  Due to their extensive customer base, they are frequent purchasers of floral arrangements.  This consistent association with florists moves them to make occasional personal purchases of floral arrangements.
  • 19. Acquisition Timing Since a florist’s business is in a seasonal industry, proper timing of promotions during busy buying cycles. If offers are positioned at the right time, they will appeal to customers more effectively because these clients are actively searching for this product during its peak season in the year. For example, as spring is approaching, Harlow’s Flowers and Gifts should offer 40% off all floral arrangements, plants and gift baskets for the last two weeks of April. This promotion should be emphasized on the company’s social media pages as well as throughout the store. Printing this ad in the local newspaper and on flyers, as well as in floral catalogs will ensure that this message’s scope and frequency is vast. By offering this promotion as the start of the peak season approaches, it builds anticipation and attracts an audience that is interested in floral arrangements. This target segment has flowers on their mind because it is the ideal time of year to make these purchases. Therefore, these target demographics will take advantage of this competitive pricing incentive at the perfect time of year. Word of Mouth Since Harlow’s Flowers and Gifts is a smaller, local company, their opportunity for reaching a large population with mass media is limited due to substantial costs. However, word of mouth advertising is an excellent opportunity to build a loyal customer base among the local area and gradually broaden the company’s geographical zone. This can be done by offering an incentive for existing customers to refer Harlow’s business to their family and friends who would be viable clients. For example, for every purchaser who mentions the person who referred them to Harlow’s, that existing customer receives a $10 gift card. This promotion will be available for a limited time and will occur at several occasions throughout the year. This strategy motivates existing customers to think of people in their network who would be interested in Harlow’s products. This acquisition method creates a larger customer base of referrals who may eventually turn into loyal clients themselves if they are attracted to the company’s offerings. Also, this strategy engenders loyalty among already existing customers because it gets them involved in the buying process, enhancing their experience through reward incentives.
  • 20. Unattractive Customers Students and young adult males are an unattractive customer group.  This demographic has a relatively low disposable income.  There is an evident lack of interest in floral arrangements.  They are occasional-purchase driven so, they are inconsistent, unreliable buyers.  The time for floral hobbies are limited with school and work.  This demographic generally prefers activities that involve socialization with friends. Win-back Customers The most substantial segment of customers that Harlow’s Flowers and Gifts would like to win back are clients who once purchased often from the company, but then switched to a competitor florist.  These customers have an evident interest in floral arrangements.  They were once frequent customers of Harlow’s.  They are still floral enthusiasts and contribute to a florist’s profits, even though it is not currently Harlow’s.  They have the disposable income and desire to continue being profitable customers for a floral company. Another customer segment would be customers who occasionally purchased from Harlow’s, possibly for special events throughout the year, but then stopped being an active client for certain reasons.  They were once active clients who purchased from Harlow’s to fulfill a need, even if these transactions were not very frequent.  Occasional buyers always have the opportunity to become more frequent and profitable customers.  If there was a past need for floral arrangements or some form of floral services, that need could theoretically re-emerge with the right circumstances.  The reason for becoming an inactive buyer could likely be unrelated to the need aspect of the purchase. If the need is still there, other factors could cause the customer to resume a transactional relationship, at the very least, with Harlow’s once again.
  • 21. Personalized, Pricing Incentive Email Essentially, with all win-back strategies, a lower reacquisition price is necessary to generate interest from the lost customer. A limited time offer could persuade the customer to have a change of heart and attempt to renew a transactional relationship with the company as a start. This strategy involves providing a personal email to the lost customer, with a pricing incentive that catches the recipient’s attention. This strategy is pertinent to Harlow’s business operations because they collect emails with every customer willing to provide one. Also, any online purchases require an email for order confirmation. For example, Harlow’s could offer 50% off any item or service if the customer redeems a code enclosed in the email within the next two weeks. The email should include the recipient’s name as well as some other form of information to add a personal touch. This could include some recommendations based on what the customer used to normally purchase from Harlow’s. If the email is prepared with that customer’s preferences in mind, it will effectively remind him or her of a need that is not currently being filled. This is a pricing incentive that could cause the customer to feel that this promotion is too good to avoid. The two week deadline moves the customer to act quickly and not forget. The entire email approach is a way to remind the customer of what he or she is missing by not meeting this need and the solid company relationship that client had with Harlow’s.
  • 22. 7. CONCLUSIONS AND RECOMMENDATIONS The objective of this report is to make customer relationship management recommendations based on Harlow’s Flower and Gifts current situation, in order to create and develop one-to-one relationships. The following CRM strategies will help grow and retain Harlow’s current customer base through more personalized and customized relationships. First, an analysis of Harlow’s two main touch points address common situations, which could occur occasionally, where customer relationships are in jeopardy due to a moment of truth. This section provides practical advice on how to effectively deal with these moments of truth in order to turn the customer into a loyal advocate as opposed to a vocal critic. Handling these delicate situations in an effective way will build stronger, individual relationships with customers and will result in positive word of mouth referrals, thus retaining and growing Harlow’s customer base. Next, the data mining section analyzed the type of customers serviced by Harlow’s and segmented them according to recency, frequency and monetary categories. This helps Harlow’s understand their customer base and distinguish profitable from unprofitable clients. This will allow Harlow’s to focus valuable time on clients who will benefit the company the most. Three retention strategies, the Blossoms Rewards Program, a Florist’s Choice and Harlow’s App were all recommended to improve personalization and customization options, which in turn develops one-to-one relationships with profitable customers. An email example was provided to inform a certain group of Harlow’s customers of the new Blossoms Rewards Program, if this retention strategy is used. Finally, select target audiences are identified which should be major focuses of Harlow’s promotional campaigns. After establishing these target segments, acquisition and win-back strategies were created to better reach these primary audiences with specifically designed promotions. Each section provides several recommendations which could be applied to Harlow’s current situation in order to develop one-to-one relationships with new and existing customers. The touch point’s area recommended Harlow’s to collect birthdays, purchase dates over the customer’s entire time with the company as well as surveys. All of this collected data could then be organized and used to individualize promotions, which makes the customer feel like they are receiving preferential treatment and builds a stronger bond of loyalty with the brand as a result.
  • 23. All three retention strategies could be initiated in the short-term and will tremendously improve Harlow’s current CRM plan. The Blossoms Rewards Program encourages more brand usage and involvement to earn free items. A Florist’s Choice allows amateurs as well as professional enthusiasts to receive one-on-one advice from an expert in the industry, which creates a competitive advantage for Harlow’s over other florist shops. Finally, Harlow’s app offers further customization options and adds another touch point of interaction with the customer. It is recommended that each of these strategies be implemented in their own time, because each plan offers a unique benefit which builds stronger, personal relationships with existing and even new clients. It is also recommended that personalized, pricing incentive email directed towards lost customers be initiated to reclaim some members who may have switched to competitor shops. All of these recommendations have the main objective of encouraging one-to-one relationships through personalization and customization of product/service offerings.