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Leveraging the power of loyalty - strategies for identifying and growing your most loyal customer base

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Leveraging The POWER of Loyalty “
Strategies for identifying and growing
your most loyal customer base”
Kate Hamer
CRM & Loyalty Manager
kate.hamer@spacenk.com
© SpaceNK 2012 All Rights Reserved
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SPACE.NK.apothecary
Founded by Nicky Kinnaird in 1993
Online & mobile sales at www.spacenk.com (UK & US)
N.dulge: UK:180K Std, 11K de luxeUS: 40K Std, 2K de luxe
62 UK stores & 25 US including Harvey Nichols (UK & ROI) and Bloomingdales (US)
Highly edited selection of the best beauty products sourced from innovators across the world including Eve Lom, Laura Mercier, By Terry, Zelens, Oribe, Chantecaille & REN
Background
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Loyalty Means Business
Grow revenue, profit and customer satisfaction with significant return on marketing investment
Shift business model from product focussed to customer focussed
Gather data from multiple channels to establish Single Customer View [SCV]
Use SCV to create targeted marketing strategy across full customer journey at every touch point
Continuously review the marketing strategy to improve the results and reduce costs Loyalty Objective
Strategy
Review
Tactics
Background
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Multi-Channel Engagement -Capturing Visibility
Who am I?
I’ve never bought anything
I am an N.dulge
member
I am signed up to receive your emails & DM’s
I have 10,000 Twitter followers & endorse your brand & products
Who am I?
I’ve spent over £3,000 with you
Iam not an N.dulge
member
I’ve opted out from all your marketing Ihaven’t shopped with you for 6 months Any individual can use multiple channels to engage with a brand across enquiry, interest, feedback or purchase
Both these individualscould be equally as valuable to your business. Get to know the individual.
Strategy
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Single Customer View –Creating Visibility
Web Transactions
Mobile Transactions
POS Transactions
SCV
Marketing Data
Email sign ups, Response rates, marketing preferences; DM, email, mobile
Loyalty Programme Data
Separate provider? Separate data feed?
Call Centre
Mail orders, complaints, engagements, feedback
Social Media
Identify brand advocates
In a multi-channel environment, you can’t truly identify your high value customers before you have an SCV
The data feeds are all dependent on how your business is organised
Strategy
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Translating The SCV Into Customer Segmentation -Using Visibility
Prospects
Customers
Repeat Customers
High Value Repeat / Loyal Customers
Lapsed
Some engagement eg. Email sign up or visit in store with no purchase but data captured
Made one purchase
More than 1 purchase
High spend, high frequency loyal customers
No purchase in last 9 months
By using your SCV you’ll start identifying customer segments which can be plotted into your customer life cycle
You define the criteria of what qualifies a customer to fall into each segment
Strategy
SocialMedia impacts every stage of the customer life cycle
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Aligning Strategy To Segments –Using visibility
Welcome / Nursery Programme
Retention Strategy
Frequency & Up Selling Strategies
Reactivation Strategy
Prospects
Customers
Repeat Customers
High Value Repeat / Loyal Customers
Made one purchase
More than 1 purchase
High spend, high frequency loyal customers
No purchase in last 9 months
Some engagement eg. Email sign up or visit in store with no purchase but data captured
Lapsed
Strategy
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SCV -Central To Your Business Model
The SCV is not just for marketing purposes.
The SCV needs to be central to your business model It can be utilised to impact across whole business, driving key business decisions including product development, brand partnerships & store environment.
Store Environment
Website Environment
Buying Strategy
Store Performance (new sign ups, sales etc)
Merchandising Strategy
Marketing Strategy
Partnerships / Collaborations SCV
Strategy
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“(Brands) that find ways to engender true loyalty and then leverage social media and modern technology to amplify it will surely reap the rewards.” -
Luxury Think, Billy Kolber
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Thank You –Any Questions? Kate Hamer
CRM & Loyalty Manager
Space NK
kate.hamer@spacenk.com
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base, customer, loyal, loyalty, strategia, leveraging, power, growing, identifying
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