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1
CRM Strategy
Prepared by
Barbara Brown
February 12, 2008
2
WHAT CRM CONTRIBUTES TO TRU
 Brand equity
 Brand preference
 Incremental sales (trial, cross purchasing, attachment, etc.)
 Customer loyalty
 Customer advocacy
 Customer lifetime value
 Optimize marketing and communications spend
 spend to customer value or customer potential
 more expensive to get a new customer versus optimize existing
3
UNKNOWN PROSPECTS AND
CUSTOMERS
One Size
Fits All
KNOWN CUSTOMERS
One To
Select
Groups
KNOWN INDIVIDUALS
One To
One
THE MIGRATION PROCESS FROM CURRENT TO PROPOSED
Broad targeting
Mass advertising
Product and promotion
driven
Segmented targeting
Customized
communications
Category and Product
usage driven
Individual targeting
Personalized
communications
Behavior and Value
driven
4
STEPS TO MIGRATING THE CUSTOMER
RelationshipConversionAcquisition
Framework
5
CRM TACTICS
Relationship
Register
Conversion
Opt-In
Join
Acquisition
List Rental
Paid Media
Strategic Partners
Affinity/Affiliate
Offer
Incentive
Value Exchange
Channels
DM | Email | Events
Shared Values
TacticalPlanFramework
Community
Services
6
CRM IN RELATIONS TO DATA CAPTURE
Data Capture
Relevance
Join
Register
Opt-in
 Email address
 First Name
 Opt-In
Join/Multi Purchase
Complete profile
for complete
program
Register/First
Purchase
Register for news,
updates, relevant offers,
tips, etc.
Opt-in/
Register/Attend an
event
Sign up to receive generic
newsletter
 First Name
 Last Name
 Email address
 Postal address/zip
 Category/Product
Usage
 Preferences
 Opt-In
 First Name
 Last Name
 Email address
 Postal address/zip
 Category/Product
Usage
 Preferences
 Segmentation
 Opt-In
 Profile answers
7
CRM SUCCESS METRICS
 Registration/New to File
 Opt-in
 Conversion Rate
 Opt-outs
 Purchases
Category
Product/SKU
 Purchase $ Value
 Retention Rate - % 12-month active opt-ins
 % of total registrants
 Offer Response Rate
 Direct Mail Response
 Email Response
 Newsletter Interactions
 Conversion of prospects to customers – offer
redemption and re-qualification
 Cross-sell/Up sell response among customers
 Program Interactions
Wish lists completed
Downloads/Sharing
Gift Registry, etc
Event attendance.
 Purchase Frequency
 Purchase Recency
 # of Log Ins
ACQUISITION RELATIONSHIP MANAGEMENT
CUSTOMER ENGAGEMENT
8
UNKNOWN
PROSPECTS AND
CUSTOMERS
One Size
Fits All
KNOWN CUSTOMERS
One To
Select
Groups
KNOWN INDIVIDUALS
One
To
One
Broad targeting
Mass advertising
Product and promotion
driven
Segmented targeting
Customized
communications
Category and Product
usage driven
Individual targeting
Personalized
communications
Behavior and Value
driven
WHERE WE ARE NOW
9
WHERE WE ARE GOING
9
WHERE WE ARE GOING

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Barbara Canning Brown, Senior Leadership CRM Strategy Presentation 021208

  • 1. 1 CRM Strategy Prepared by Barbara Brown February 12, 2008
  • 2. 2 WHAT CRM CONTRIBUTES TO TRU  Brand equity  Brand preference  Incremental sales (trial, cross purchasing, attachment, etc.)  Customer loyalty  Customer advocacy  Customer lifetime value  Optimize marketing and communications spend  spend to customer value or customer potential  more expensive to get a new customer versus optimize existing
  • 3. 3 UNKNOWN PROSPECTS AND CUSTOMERS One Size Fits All KNOWN CUSTOMERS One To Select Groups KNOWN INDIVIDUALS One To One THE MIGRATION PROCESS FROM CURRENT TO PROPOSED Broad targeting Mass advertising Product and promotion driven Segmented targeting Customized communications Category and Product usage driven Individual targeting Personalized communications Behavior and Value driven
  • 4. 4 STEPS TO MIGRATING THE CUSTOMER RelationshipConversionAcquisition Framework
  • 5. 5 CRM TACTICS Relationship Register Conversion Opt-In Join Acquisition List Rental Paid Media Strategic Partners Affinity/Affiliate Offer Incentive Value Exchange Channels DM | Email | Events Shared Values TacticalPlanFramework Community Services
  • 6. 6 CRM IN RELATIONS TO DATA CAPTURE Data Capture Relevance Join Register Opt-in  Email address  First Name  Opt-In Join/Multi Purchase Complete profile for complete program Register/First Purchase Register for news, updates, relevant offers, tips, etc. Opt-in/ Register/Attend an event Sign up to receive generic newsletter  First Name  Last Name  Email address  Postal address/zip  Category/Product Usage  Preferences  Opt-In  First Name  Last Name  Email address  Postal address/zip  Category/Product Usage  Preferences  Segmentation  Opt-In  Profile answers
  • 7. 7 CRM SUCCESS METRICS  Registration/New to File  Opt-in  Conversion Rate  Opt-outs  Purchases Category Product/SKU  Purchase $ Value  Retention Rate - % 12-month active opt-ins  % of total registrants  Offer Response Rate  Direct Mail Response  Email Response  Newsletter Interactions  Conversion of prospects to customers – offer redemption and re-qualification  Cross-sell/Up sell response among customers  Program Interactions Wish lists completed Downloads/Sharing Gift Registry, etc Event attendance.  Purchase Frequency  Purchase Recency  # of Log Ins ACQUISITION RELATIONSHIP MANAGEMENT CUSTOMER ENGAGEMENT
  • 8. 8 UNKNOWN PROSPECTS AND CUSTOMERS One Size Fits All KNOWN CUSTOMERS One To Select Groups KNOWN INDIVIDUALS One To One Broad targeting Mass advertising Product and promotion driven Segmented targeting Customized communications Category and Product usage driven Individual targeting Personalized communications Behavior and Value driven WHERE WE ARE NOW
  • 10. 9 WHERE WE ARE GOING