SmithKline Beecham
OgilvyOne Worldwide
This is just a standard headline. Surely you will find a more specific and intruiging one when you present.
Why are we here?
To show how Customer Relationship Management can help you demonstrably build your business and how it can be proved.
Three Issues .
Not all customer are equal
Only a small percentage of your consumers will provide you with your largest share of sales, and profit growth.
Most categories find that a small number of customers (33% average) produce a large share of sales and profit (66% average). This tends to lead towards increased emphasis on the private face of the brand.
Niche brands have even greater extremes - . Solpadeine 80% - 20%.
Fish where the big fish are
Analgesic Category
15% of adults account for 62% of Analgesics used
Heavy
Med’m
Light
Non
Users
62%
26%
38%
1%
0%
21%
% Total UK Adult population
No. Adults
% Usage
15%
37%
12m
Source: TGI claimed usage
Oct 97-Sep 98
Definitions
Heavy user;
=4 times / wk
=208 times / yr
Medium user;
=4 times / mth
=48 times / yr
Light user;
= 4 times / yr.
Why are we here?
Knowledge driven communications
Your consumers know your brand. You must know about your most valuable consumers.
Giving control to you, not…...
Creating Active loyalty
Enhancing consumers personal sense of affinity, intimacy with, and commitment to, the brand will drive sales.
ACTIVE LOYALTY BUILDS SALES AND BRANDS
Knowledge about your customer is your best marketing tool.
Remember Your best customers are your competitors best prospects and they therefore need to be protected ferociously.
By developing the private face of the brand with your customers you can talk to them about the information that matters to them rather what you think they should know about the brand
The success criteria is not just getting more customers but keeping them and growing them
Two Dimensional Marketing
Consumers’ Needs
Satisfied
Consumers
Reached
Mass Marketing
Market
Share
Market share Vs Share of Customer
Consumers’ Needs
Satisfied
Consumers
Reached
Mass Marketing
One to One Marketing
Share
of
Customer
Market
Share
Brandz Signature
Q - What matters in this category?
- How many other brands do you feel the same about?
Q - Is it at a better price?
- Is it more popular?
- Do you think it works better than competitors?
- Does it appeal to you more than others?
Q - Can it deliver?
Q - Would you want to be seen using it?
- Is it the price bracket?
- Can it meet your needs?
Q - Is the brand top of mind?
Bonding
Advantage
Performance
Relevance
Presence
Brand strengths & weaknesses relative to the category as a whole
General OTC
UK
Panadol
Brand signature
Bonding
Advantage
Performance
Relevance
Presence
Base
-2
-8
-4
3
-4
(403)
Brand strengths & weaknesses relative to the category as a whole
3
19
2
General OTC
UK
Panadol
Brand signature
UK
Nurofen
Brand signature
Bonding
Advantage
Performance
Relevance
Presence
Base
-2
-8
-4
3
-4
(403)
10
3
(403)
Brand strengths & weaknesses relative to the category as a whole
3
19
2
General OTC
UK
Panadol
Brand signature
UK
Nurofen
Brand signature
Bonding
Advantage
Performance
Relevance
Presence
Base
-2
-8
-4
3
-4
10
3
(403)
(403)
Competitor
Three Track Communication Model
Equity
Competitor
Targeted
Heritage
Safety - efficacy
GI Issue
Consumers
Customer Prints
Carer
Long-term Pain
Sufferer
The 4 cornerstones:
A continuous cycle improvement
Identification
Qualification
Dialogue
Communication
Evolutions &
measurement
Knowledge:
where
it all starts
Key opportunities
and potential
value
needs
Managing consumer
behaviour to drive
sales/supporting key
brand messages
Ensuring the
programme works
and a continuous
cycle of
improvement
1
2
3
4
Identifications: Getting key consumers to identify themselves to us and to provide us with the right information to allow us to identify POTENTIAL
Qualifications: Using the information that consumers provide identify their individual purchase potential and needs/invites
Dialogue: Communicate with the target groups such that they develop a dialogue and relationship with you because you can add value to them.
Measurement: The programme must be measured against key action fundamentally its ability to shift attitudes and change purchase behaviour
Consumer Identification and Qualification
The Long term Pain Sufferer :
Osteo-Arthritis
“Surely, it is time to interact with people with osteoarthritis to try to find out what really matters to them.
And to explore other types of intervention such as education, physical therapy, aids and shoes”
Professor Paul Dieppe, Director of Medical Research
Council’s Health Services Research Collaboration.
Source: Arthritis Today
Long Term Pain:
OA Suffer
To alleviate the fear about their future.
To feel in control of their condition.
To be able to talk to their family about their condition.
Written information about their condition.
To share the Psychological burden of suffering from Osteo-Arthritis.
Source: Arthritis Care & Research April 1999
Dialogue Elements: adding value through understanding
Dialogue Elements: Test Opportunities
Associated Media: Radio; Sponsorship of the Pollen counts/pollution's/humidity reports
Mechanics : Format
News letter
Ongoing Mailings
Magazine
Internet
Associations: Linking up with existing Consumer Associates OA
Credibility
Existing Helplines/Advice line
Co-branding
Medical expert contributions
Added Value: Pain Tracker; enabling users to track/ keep a record of those painful moments, times for the Pharmacist or Doctor
Pill boxes; So that you never have to be without Panadol. Panadol fits into your life
Information; Self help leaflets - stress, OA, Asthma (co-branded/solus Panadol (SB)
Dialogue Process: Activity by line
Month1 Identification : Through purchase: POS, on pack, Pharmacy
Through opportunity, association lists, SB etc
Qualification : Potential and need
Month 2 First Dialogue communication
Month 3 Bounce back : to respondees (fulfilment against request)
Month 4 Second dialogue communication
Month 5 Bounce back : to respondees (fulfilment)
Month 6 Measurement : Respondees (1 and 2 and both)
: Non-respndees
: Control
Measurement Criteria Process
Primary: To measure effects on brand awareness and image
To measure impact on sales and track behaviour changes
Secondary: Evaluate motivations to respond/change behaviour
Evaluate message / incentive acceptance and effect (Triggers)
Evaluate non-responder behaviour/effects (will still be positive!)
Methodology: Telephone survey; 2 waves (month 3 and month 6)
To: Respondees
Non-respondees
Control groups
This will provide both a mid-programme guide allowing improvements and post test results/measures of success
By consumer segment
- Carers
- long-term pain sufferers
Customer Journey: Identifying the critical moments
User
Repertoire
user
PREFERRED
ADVOCATE
BRAND EQUITY / POSITIONING
LOYALTY
My Brand
Affecting
Purchasing
Behaviour
Prospect
Consumer Response
Next Steps
Next Steps
1) Agree markets
2) Agree the scope of the test
3) Budget
4) Develop specific test communications proposals
5) Action
Considerations
A number of issues need to be considered:
market dynamics
claims viability
competitor initiatives / claims
legal or regulatory restrictions
cultural nuances
product repertoires
trade dynamics
executional barriers
This is just a standard headline. Surely you will find a more specific and intruiging one when you present.
Most categories find that a small number of customers (33% average) produce a large share of sales and profit (66% average). This tends to lead towards increased emphasis on the private face of the brand.
Niche brands have even greater extremes - . Solpadeine 80% - 20%.
Fish where the big fish are
Knowledge about your customer is your best marketing tool.
Remember Your best customers are your competitors best prospects and they therefore need to be protected ferociously.
By developing the private face of the brand with your customers you can talk to them about the information that matters to them rather what you think they should know about the brand
The success criteria is not just getting more customers but keeping them and growing them
Identifications: Getting key consumers to identify themselves to us and to provide us with the right information to allow us to identify POTENTIAL
Qualifications: Using the information that consumers provide identify their individual purchase potential and needs/invites
Dialogue: Communicate with the target groups such that they develop a dialogue and relationship with you because you can add value to them.
Measurement: The programme must be measured against key action fundamentally its ability to shift attitudes and change purchase behaviour
