Strategy - Marketing Week
Strategy - Marketing Week
Strategy - Marketing Week
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Leveraging The POWER of Loyalty<br />
“Strategies for identifying and growing<br />
your most loyal customer base”<br />
Kate Hamer<br />
CRM & Loyalty Manager<br />
kate.hamer@spacenk.com<br />
© SpaceNK 2012 All Rights Reserved<br />
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SPACE.NK.apothecary<br />
Background<br />
Founded by Nicky Kinnaird in 1993<br />
Online & mobile sales at www.spacenk.com (UK & US)<br />
N.dulge: UK: 180K Std, 11K de luxe US: 40K Std, 2K de luxe<br />
62 UK stores & 25 US including Harvey Nichols (UK & ROI) and Bloomingdales (US)<br />
Highly edited selection of the best beauty products sourced from innovators across the world including Eve Lom,<br />
Laura Mercier, By Terry, Zelens, Oribe, Chantecaille & REN<br />
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Loyalty Means Business<br />
Background<br />
Grow revenue, profit and customer satisfaction with significant return on marketing investment<br />
Shift business model from product focussed to customer focussed<br />
Gather data from multiple channels to establish Single Customer View [SCV]<br />
Use SCV to create targeted marketing strategy across full customer journey at every touch point<br />
Continuously review the marketing strategy to improve the results and reduce costs<br />
Loyalty Objective<br />
<strong>Strategy</strong><br />
Review<br />
Tactics<br />
2<br />
2
Multi-Channel Engagement - Capturing Visibility<br />
<strong>Strategy</strong><br />
Any individual can use multiple channels to engage with a brand across enquiry, interest, feedback or purchase<br />
‣ Both these individuals could be equally as valuable to your business. Get to know the individual.<br />
I’ve never<br />
bought<br />
anything<br />
I’ve spent over<br />
£3,000 with<br />
you<br />
I have 10,000<br />
Twitter<br />
followers &<br />
endorse your<br />
brand &<br />
products<br />
Who am I<br />
I am an<br />
N.dulge<br />
member<br />
Ihaven’t<br />
shopped with<br />
you for 6<br />
months<br />
Who am I<br />
Iam not an<br />
N.dulge<br />
member<br />
I am signed up<br />
to receive your<br />
emails & DM’s<br />
I’ve opted out<br />
from all your<br />
marketing<br />
3<br />
3
Single Customer View – Creating Visibility<br />
<strong>Strategy</strong><br />
In a multi-channel environment, you<br />
can’t truly identify your high value<br />
customers before you have an SCV<br />
‣ The data feeds are all dependent<br />
on how your business is organised<br />
Loyalty Programme<br />
Data<br />
Separate provider<br />
Separate data feed<br />
Call Centre<br />
Mail orders,<br />
complaints,<br />
engagements,<br />
feedback<br />
Social Media<br />
Identify brand<br />
advocates<br />
SCV<br />
POS<br />
Transactions<br />
<strong>Marketing</strong> Data<br />
Email sign ups, Response<br />
rates, marketing<br />
preferences; DM, email,<br />
mobile<br />
Mobile<br />
Transactions<br />
Web<br />
Transactions<br />
4<br />
4
Translating The SCV Into Customer Segmentation - Using Visibility<br />
<strong>Strategy</strong><br />
By using your SCV you’ll start identifying customer segments which can be plotted into your customer life cycle<br />
‣ You define the criteria of what qualifies a customer to fall into each segment<br />
Prospects<br />
Customers<br />
Repeat<br />
Customers<br />
High Value<br />
Repeat / Loyal<br />
Customers<br />
Lapsed<br />
Some engagement<br />
eg. Email sign up or<br />
visit in store with no<br />
purchase but data<br />
captured<br />
Made one purchase<br />
More than 1<br />
purchase<br />
High spend, high<br />
frequency loyal<br />
customers<br />
No purchase in last<br />
9 months<br />
Social Media impacts every stage of the customer life cycle<br />
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5
Aligning <strong>Strategy</strong> To Segments – Using visibility<br />
<strong>Strategy</strong><br />
Welcome / Nursery<br />
Programme<br />
Frequency & Up Selling<br />
Strategies<br />
Retention <strong>Strategy</strong><br />
Prospects<br />
Customers<br />
Repeat<br />
Customers<br />
High Value<br />
Repeat / Loyal<br />
Customers<br />
Lapsed<br />
Some engagement<br />
eg. Email sign up or<br />
visit in store with no<br />
purchase but data<br />
captured<br />
Made one purchase<br />
More than 1<br />
purchase<br />
High spend, high<br />
frequency loyal<br />
customers<br />
No purchase in last<br />
9 months<br />
Reactivation <strong>Strategy</strong><br />
6<br />
6
SCV - Central To Your Business Model<br />
<strong>Strategy</strong><br />
The SCV is not just for marketing<br />
purposes.<br />
‣ The SCV needs to be central<br />
to your business model<br />
‣ It can be utilised to impact<br />
across whole business, driving<br />
key business decisions<br />
including product development,<br />
brand partnerships & store<br />
environment.<br />
Partnerships /<br />
Collaborations<br />
Store<br />
Environment<br />
SCV<br />
Website<br />
Environment<br />
<strong>Marketing</strong><br />
<strong>Strategy</strong><br />
Buying<br />
<strong>Strategy</strong><br />
Merchandising<br />
<strong>Strategy</strong><br />
Store<br />
Performance<br />
(new sign ups,<br />
sales etc)<br />
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7
“(Brands) that find ways to engender true loyalty and then leverage<br />
social media and modern technology to amplify it will surely reap the<br />
rewards.”<br />
- Luxury Think, Billy Kolber<br />
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Thank You – Any Questions<br />
Kate Hamer<br />
CRM & Loyalty Manager<br />
Space NK<br />
kate.hamer@spacenk.com<br />
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