SEO Case Study: How I Increased SEO Traffic & Ranking by 50-60% in 6 Months
Customer Retention Summit Integrated Insight V1
1. Integrated Insight Strategy for Customer Retention Tony Mooney Customer Retention Summit, London 14 th Oct 2009
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3. For retention, two important domains need an integrated, insight-driven approach Product Acquisition Customer Experience Differentiated Propositions Customer Journey Brand What is ‘integrated insight’? Legal Policies Processes Competition Channel Financials Customer Behaviour Business Behaviour
4. Insight techniques need to be integrated in the right sequence Insight is a business process supported by technology What has changed ? Why? What to do about it? What is customer behaviour Vs organisation behaviour or process? What will happen? What is important? What is ‘integrated insight’? Propensity Modelling Scenario Modelling | Forecasting | Segmentation Portfolio Dynamics Analysis and Reporting Financial Sensitivities | Profiling | Segmentation Market Research | Exit Interviews | Internal Reference Customer Process Mapping | Policy Analysis | Portfolio Analysis Insight Technique
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6. Issue: IT has not delivered for Marketing Increasing demand for integrated technology from marketing “ Marketing vs. Technology is a cage-fight between ignorant marketing people who expect technological miracles immediately and the propeller-heads who talk only about the benefits of some coding philosophy that no-one this side of the Klingon Empire really understands.” CMO Magazine What is ‘integrated insight’?
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8. Establish Customer Metrics using financial modelling, profiling, predictive modelling and segmentation Potential Value Current Value Low High Low Low High Retention High High Predictive Modelled = Customer Lifetime Value Steps to Success
9. The Washing Machine Customer portfolio dynamics must be understood and mapped Product Y Customer Base Product X Customer Base .. by recognising customers as individuals & tracking and measuring customer behaviour better value evaporation Voluntary Churn Compulsory Churn Migrations (soft churn) Migrations/downgrading Inactivity Revenue Pool New Revenue New Revenue Voluntary Churn Upgrading Steps to Success
10. Select and focus on material, addressable areas of churn that offer best chance of success Strategy will also have to recognise that some drivers of churn will not be addressable Net Churn pa Goal ?% ? pa Target Churn reduction ? New customers At renewal At Home move Re-acquired customers Est Materiality pa Price Rise Channel mis-selling Focus areas Universe illustrative Competitor offer Steps to Success
11. Sequenced and integrated, closed loop consumer experience - for decisions and data capture across all channels Uninterested & rejecters Interested Enquirer On boarding Subscribe Establishment In Life Nursery Renew or Cancel Ex Customer Suspect-prospect-customer journey Value-based acquisition Actionable measurement of consumer dynamics Informed Interactions: Recognise, Remember, Value Differentiated propositions and flexible, reactive consumer strategies 4 1 3 2 Marketing ‘with memory’ Steps to Success
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13. Retention strategy will under-perform without creating differentiated propositions for key customer states Tenure Churn Risk High 5 years + New kit £XX offer Sample premium Free Product Free Product Product deal Service DD migration On-line Extra kit Full price Service Service Service Service Tenure Based offer Service Service Tenure Based offer Tenure Based offer Service Service Sample premium Sample premium Product deal Extra kit Full price Extra kit Full price Extra kit Full price Sample premium New kit £XX offer New kit £XX offer New kit £XX offer On-line Product upgrade Extra kit offers Pay up front 3,6 months Free content Replace Old equipment Optimised upgrade offer 2 Optimised upgrade offer Optimised upgrade offer 3 Free content (14 days, free) Free content Weekend (free) BOGOF content Sample DVD Mid tier Sample CONTENT £5 for x months CONTENT £5 for x months Extra kit offers Extra kit offers Free Product Free content Product upgrade Existing proposition New – product based New – Sample based New – pre payment New – anniversary Low Sample DVD BOGOF content BOGOF content Free content Free Product Optimised upgrade offer 2 Optimised upgrade offer Optimised upgrade offer Optimised upgrade offer 2 Replace Old equipment Fairly well covered, but only with introduction of new propositions (green) Steps to Success illustrative
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17. Key dynamics were identified and remedial initiatives implemented and measured Key Trends Identified Growing instability in client base Damaging “offer culture” Churn risk from basic channels High churn from winbacks Falling quality of acquisitions Main Initiatives Offer “Washout” Saves & Winback Proactive Retention Winback Optimisation Acquisition Survival Targeting Churn “Deep-dives” Benefits Increased % of stable customers in the base Lower churn calls as % of base Better profile of acquisitions Optimised Winback activity Case Study: Integrated insight for Churn Management Profiling & Segmentation Dominant Insight Technique Modelling & Targeting Reporting & Evaluation
18. The rewards for getting it right were considerable.. Churn was reduced by 25% - £100m in retained revenue Actual (Disguised) Example Integrated Insight Programme Case Study: Integrated insight for Churn Management
19. Integrating insight and making it actionable Key messages for improving retention performance Create customer value metrics and align to P&L sensitivity Integrate and operationalise prospect-customer journeys that manage customer state Drive differentiated customer propositions not just different-coloured envelopes Put more science into acquisition strategy Be clear on materiality and let this guide where you focus efforts Understand portfolio dynamics and the impacts on enterprise value 1 2 3 4 5 6 Summary