Vauxhall UK CRM Programme

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Vauxhall UK CRM Program

By George Hammond

http://www.vauxhall.co.uk/vehicles/vauxhall-range/cars/astra_gtc/index.html

http://www.vauxhall.co.uk/vehicles/vauxhall-range/cars/new-meriva/index.html



Contents Introduction

− Customer Lifecycle Process Industry Trends

− 2015 Automotive Industry Highlights− Leading Marketing Automation Platforms

2015 CRM Strategy− 2015 Program − 2015 Voucher Strategy and KPI’s

2016 Voucher Program Customer Journey− Cross/Up–selling to current Vauxhall customers− Converting new prospects into Vauxhall car purchasers

Preference Centre Business Case Engagement Process and Hours Successful Drivers



Introduction



Goal Is To Deliver The Company’s Propositions In The Most Effective Way Possible Along The Customer Lifecycle Process.

Welcome Strategies

Cross-Sell / Up-Sell Strategies

Win-Back Strategies

Attrition Management



Industry Trends



2015 Automotive Industry Highlights CUSTOMERS WANT A SEAMLESS EXPERIENCE ACROSS THE LIFECYCLE

− New entrants are a real threat: One-half of customers are interested in buying a car from a tech company like Apple or Google

− Customers expect more and more from manufacturers and dealers: they value technical expertise and regular personalised comms / offers and open to sharing their data

− Satisfaction is not enough: When it comes to repurchase, high levels of satisfaction are needed to create strong feelings of loyalty

MANUFACTURERS CAN USE INNOVATION TO STRENGTHEN THEIR POSITION− Interest in connected vehicles technology is high (i.e. smart GPS’s)− People are willing to pay significant amounts for autonomous driving: Around 79% of

respondents across expressed this interest− Mobility services complement car ownership: Over 70% of those who are interested in

using mobility services also want to own a car (i.e. car share schemes)

Source: Cap Gemini research (based on 7,500 customers worldwide)



MARKETING AUTOMATION SOFTWARE: MARKET LEADERS

Source: www.hubspot.net



2015 CRM Strategy



2015 Program (Proxy of 2011 Program)

Event Description KPI Measures 2015 Result 2016 Goal 2016 Result

Customer Voucher

Customer Voucher shown on high volume journey that leads to a sale.

Leads, Sales Conversion

Website Call-To-Action Conversion Call-To-Action form completion.

Form conversion rate, Leads

Contact Time Metrics

Time it takes for dealer/sales person to a lead

Average time per region / dealer / sales person

Golden Ticket

Sales person wins a golden ticket if they contact a lead within one hour. X no of tickets become a £100 shopping voucher. Volume of tickets

Form Dwell Pop-Up

Short form appears whenever a user is about to abandon a test drive request

Short form conversion rate, Leads



Focusing On Voucher Offer Program Using High Volume Customer Journeys

Journey Targeted

Customer Targeted

Total Pages Along

Journey

Call to Actions on

Journey

VoucherPop-Up

On

Leads Lost On

Key Page

Sales Conversion Rate

(internet voucher campaign)

Sales Volume

Opportunity

Locate a Dealer(Corsa 5 Door)

New 8Test Drive,

Configurator, Dealer Locater

5th Page 1,599 16.72% 267

Repeat 8Test Drive,

Configurator, Dealer Locater

4th Page 4,236 16.72% 708

Corsa 3 Door

New 4 Configurator 4th Page 54,651 16.72% 9,138

Repeat 4 Configurator 3rd Page 96,928

16.72% 16,207

New AstraNew 4 Configurator 4th Page 56,346 9.19% 5,181

Repeat 4 Configurator 3rd Page 104,486 9.19% 9,607

Used Car (Corsa Range)

New 4 Locate a Dealer 4th Page 4,329 16.72% 724

Repeat 4 Locate a Dealer 3rd Page 161,060 16.72% 26,930

ZafiraNew 4 Configurator 4th Page 12,393 11.56% 1,433

Repeat 4 Configurator 3rd Page 29,898 11.56% 3,456



2015 Cumulative Voucher Program KPI’s

• Money off vouchers are 2015 best performing vouchers and so they become the control group voucher when testing is done in 2016

Brand Voucher OfferVoucher Offer Visitors

Voucher Redemptions

Voucher Conversion Rate Car Sales

3 Door Corsa£200 off Purchase Price 10,000 800 8.00% 100

3 Door Corsa 2 Year Free Warranty 8,000 600 7.50% 90

3 Door Corsa20% of 1st Year's Insurance Free 6,000 400 6.67% 80

3 Door CorsaFree MOT for first 3 years 4,000 200 5.00% 70

3 Door Corsa 3% off Purchase Price 2,000 100 5.00% 60



2016 Voucher Program Customer Journey



Cross/Up–Selling To Current Vauxhall Customers

On-going Program Optimisation

Project Timeline

Phase 2Phase 1

Profiling Current Buyers

Tailored Content For Buyers- Mailing Tests

• Creative / Comms OptimisationBuyers

Increase Purchasers

Phase 3

Buyers RFV Segmentation

• Email opens• Email clicks• Web visits• Purchase value

• Mosaic• Salutation• Gender• Location• Web Behaviour

Product Categories Offers

• Model purchases• Purchase value

• Updated contact details• Updated mosaic• Lifestyle / Lifestage Insight• Model / Assesory Preferences

Merging customer

database with social media

data

Creative Mailing

• Previous phase’s insights drive purchases & CRM strategy: − Greater personalisation− Relevant cross-up / sells− Relevant competitions/ offers / loyalty schemes− Preferred products− Right channels



OPTIMISING CHANNELS THROUGH RECENCY, FREQUENCY, MONETARY VALUE SEGMENTATION

Recency of email/web clickthroughs1- Over 6 months2 - Within last 6 months3 - Within last 3 months4 - Within last 2 months5 - Within last 1 month

Frequency of email/web clickthroughs1- Every 12 months2 - Every 6 months3 - Every 3 months4 - Every 2 months5 - Every 1 month

Highest

Recency

Frequency Average Monetary

Value

5 High Value 5 5

4 4 4

3 Medium Value 3 3

2 2 2

1 Low Value 1 1

Lowest

• Based on customer contact and engagement data an RFM segmentation model can be used to optimise channel use.• High value offers can be used to reward customers who interact and redeem through digital channels more frequently (web, email, facebook). • Direct mail / telemarketing channels can be used for lower value customers who do not respond frequently to digital channels. This option also allows us to understand customer experience issues.



Evaluating Email Campaigns To Inform Testing

• We’ve seen an increase in open rates with the discount offer subject lines proving more effective than urgency style subject lines in October.

• Key words in the subject line combined with the secondary offer on the creative, plus the change of delivery day to Monday may have contributed to the uplift in open and click rates.

• A/B Testing or Multivariate Testing for some or all of these variables may help to optimise results further.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Performance By Newsletter Message- All Data

HTML Open %

Click to Open %



Email Testing Schedule

• Using the above testing schedule for the key variables we identified, we can check whether marketing communication alternatives really do optimise open/click rates across the customer base.

• At the end of the testing process we would be able to choose the optimum marketing communication option for the customer base.

January 2013 February 2013 March 2013

A - Test (50%) January (control) February (control) March (control)

B - Test (50% split in 2)

Percentage Discount vs Value Discount

Subject line & Secondary offer match vs Subject line & Main offer match

Monday Delivery vs Tuesday Delivery

Document overall winning email

Overall winner is used as control next month





Executing a Strong Welcome Strategy to Convert New Prospects into becoming Vauxhall Customers.

You never get a second chance to create a first impression.

A well executed welcome strategy to new prospects pushes product/brand attributes and sets expectations for future contact.

It encourages the new prospect to become excited about your marketing communications and increases the likelihood they will be active in your program.

A good welcome strategy is also appropriate because new prospects who have signed up to your program are more likely to open/click on an email or browse the company’s website.

It can improve the improve the recency, frequency and monetary value of your new prospects.



Meet Miss Phillips:Age: 30Occupation: Accountant, City FirmIncome: £65,000 per annumLives in London

• Miss Phillips has just signed up for Vauxhall emails after receiving a FTAF link from her Uncle, who is the Finance Director of a Management Consultancy.

• Her first email sets expectations for future communications. She notes down details but does not click on anything.



Welcome Strategy Development

Welcome creative – set expectations,

reiterate brand & benefits Yes

No

Promotional creative –

personalised offers / deals /

contentYes

Welcome Message 1

Promotional - Message 2

No



Promotional creative 2



Yes

No

On-going Email Program Optimisation

• More personalised offers• Preferred products • Tailored Cross/Up sell


• More aggressive messages (i.e.buy by Dec 30th and get £500 off ! )

Evaluate Performance / Use Best Practise and

Implement Improvements



Meet Miss Phillips:Age: 30Occupation: Accountant, City FirmIncome: £65,000 per annumLives in London

• Miss Phillips second email is more tailored. Seeing as there is not a great deal in the way of profile data, the second email is tailored by mosaic and gender. • Based on this additional data, email number 2 pushes out a deal for the new 3-door Corsa which she opens and clicks on.• She gets her first Newsletter and is offered the chance to become a fan of the Vauxhall brand experience via Facebook.• Miss Phillips now regularly enters forums via facebook and gains access to latest chat, content reviews and campaigns on Corsas.• She now regularly forwards relevant product campaigns to her social network.



Welcome Strategy Development

Welcome creative – set expectations,

reiterate brand & benefits Yes

No

Promotional creative –

personalised offers / deals /

contentYes

Welcome Message 1


No



Promotional creative 2



Yes

No

On-going Email Program Optimisation

• More personalised offers• Preferred products • Tailored Cross/Up sell


• More aggressive messages (i.e.buy by Dec 30th and get £500 off ! )

Evaluate Performance / Use

Best Practise and Implement

Improvements

• Becomes a Vauxhall brand experience facebook fan



Vauxhall would evaluate the performance of current welcome strategy for new prospects by analysing:

− Time between sign-up date and first sent message for new customers− Time between first message and first, second, third open / click for new customers − Number of delivered messages before first, second, third open / click− Number of abusers and unsubscribers by first, second, third sent message

This identifies how new prospects react to Vauxhall program after they join, enabling us to recommend an appropriate welcome sequence: − Welcome to Vauxhall / Thank you – Day 1− Promotional creative: Personalised offers, Downloadable content – Day 7− How is the user experience ? / Would you like us to alert you on specific product

offers ? – Day 14− Promotional creative: Greater personalisation, cross sell suggestions – 1 month− Can we help you in any other way ? – 2 months− Promotional creative: Greater personalisation, up sell suggestions – 3 months

We would profile new prospects by email behaviour, website behaviour and personal demographics.

Evaluating Current Welcome Program



We would also evaluate the best practise of current welcome emails by looking at: − How you set expectations for content and email frequency up front− How you push brand values and clearly state benefits to the customer− The use of your preference centre to confirm customer information /

email frequency− Confirming Vauxhall customer service contact information

This evaluation would highlight where improvements can be made on:− Contact time− Contact frequency− Subject line− Creative content

Evaluating Current Welcome Program



Preference Centre Business Case



Preference Centre Business Case

• Data manipulation to summarize yearly billings for each customer status (i.e. Active, New etc…. )

• Extrapolate from billings data trend to produce BAU forecasts

• Extrapolate from BAU forecasts using a 0.5% growth factor to produce preference centre forecasts

• Over a 6 year period we expect preference centre revenue to consistently outperform business as usual revenue. Over this period we also expect to see an overall cash benefit of £120m from the preference centre.

2014 2015 2016 2017 2018 2019 Total£'000 £'000 £'000 £'000 £'000 £'000 £'000

Sales Revenue (from preference centre) 24,171 24,534 25,025 25,525 26,036 26,556 151,847

Sales Revenue (from business as usual) 24,051 24,412 24,900 25,398 25,906 26,424 151,092

Incremental Revenue 120 122 125 127 130 132 755

CostsTelemarketing 568 577 586 594 603 612 3,541 Direct Mail 4,220 4,283 4,348 4,413 4,479 4,546 26,289 Email 68 69 70 71 72 73 422 Data Acquisition 217 220 224 229 233 238 1,362 PC Development (Yr 1 only) 100PC OPEX (post-implementation) 15 15 15 15 15 75 PC CAPEX (post-implementation) 20 20 20 20 20 100 Contingency 52 52 53 53 54 55 319

Total Costs 5,225 5,236 5,315 5,395 5,477 5,560 32,207

Cash Benefit / (Loss) 18,947 19,298 19,710 20,130 20,559 20,997 119,640



Engagement Process and Hours



Engagement Process Access to George Hammond’s Services

− An assigned account manager will have full access to George Hammond’s services and will leverage the necessary skill set within that team.

Monthly Meetings− In-depth monthly meetings which review ongoing initiatives, refine engagement

plans and ensure objectives are met.

Weekly Status Meetings− Conduct weekly status calls with George Hammond and Vauxhall teams to ensure

momentum is kept.

Quarterly Analysis and Engagement Reviews− Onsite meetings to review larger analytics projects and plan upcoming analysis

projects for the quarter.



CRM Programme Hours



Successful Drivers



Process Drivers of Change Program Champion

− Project design / plan

Senior Management / Stakeholder Buy in & Support− Educate/agree the strategies and means by which new approaches

can be established.

Business Strategy Development (Internal Audit)− Business objectives and competencies− Business competitors

Customer Strategy Development (External Audit)− Target customer segments− Business product choices

Specialist Staff Resource (i.e. Analysts, Account Management)



Technical Drivers Complexity

− Effective Implementation of I.T. Systems− Effective Implementation of Customer Databases

Source Systems− Appropriate analysis tools− CRM system tools

Software compatibility Channel Integration (i.e. Email, DM, Call Centre) Customer value creation process

− Modelling / Segmentation− Attributing appropriate metrics to measure performance− A/B & Multivariate Testing



End

Date post:	15-Jan-2017
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