Transcript BMW presentation

Customer LifeCycle ManagementSM
Tap into YOUR hidden potential with
DPS PerfectCircle Suite of Marketing Capabilities
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…How can you be sure you are optimizing
your marketing investment when
there is a lot of options, a lot of confusion, and…
Actionable
data
Data Modeling
Vary the media
Point of Sale merchandising
Owner Rewards
Profiling
Surveys
Sales Force Automation
Web marketing
Coupon booklets
CRM
Key tags
Intelligent offers
Database marketing
Gift cards
Gender based marketing
Incentives
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…a lot of cookie cutter programs.
With everyone essentially buying the same technology, where
is the competitive advantage to be found?
Actionable
data
Data Modeling
Vary the media
Point of Sale merchandising
Owner Rewards
Profiling
Surveys
Sales Force Automation
Web marketing
Coupon booklets
CRM
Key tags
Intelligent offers
Database marketing
Gift cards
Gender based marketing
Incentives
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How do you make an informed decision that makes sense for you?
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First, begin by understanding how customers
behave throughout their life cycle.
Not including non-traditional
after-sales products/services…
SHOP
BUY
CONSUMER
OWN
Accenture 2004
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Then, Implement a Solid Marketing Strategy…
…Introducing Customer LifeCycle ManagementSM
•Integrated communications
•Sustainable
•Aligned with behavior
•Lowers per unit costs
•Keeps options open: (Flexible Customization)
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What is Customer LifeCycle Management ?
SM
As it relates to Customer Relationship Management (CRM), customer
LifeCycle Management (CLM) is used to describe the progression of
steps a consumer goes through when: considering, purchasing, using,
and maintaining a vehicle.
The goal of lifecycle management is to pro-actively move the consumer
through the cycle again and again by defining the way in which an
enterprise interacts & communicates with its customers and prospects at
each phase of the life cycle.
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Why is LifeCycle Management important?
For the average franchised New Vehicle Dealer:
• Marketing and Advertising is the second largest business expense
• 88% of the Marketing & Advertising dollars are spent in Mass-Media
• Marketing & Advertising consumes 25% - 30% of the average new vehicle
gross profit
• Front end acquisition rates typically yield 50% capture of the total advertising
influenced prospect base
• 40% of “New” customers never generate a CP repair order
• 70% of the customers “defect” within the first 3 years of ownership
• Less than 15% of annual sales are to repeat customers
YET • 20-25% of their customer households will purchase a vehicle
annually
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Why is LifeCycle Management important?
For the average BMW Center regarding Aftersales:
• Customer service intervals are more expansive
•Many BMW Service centers are at capacity
•Must maximize each visit / opportunity
•Vehicles are built better and have more complex systems
•Less parts sales
•More computer programming repairs versus additional parts or labor sales
• Co-op funding going untapped – why solicit more if you can’t handle it?
•Need ability to consistently build value in the breadth and quality of BMW products
& services
•Accessories, Lifestyle & boutique items, warranties, etc.
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Why is LifeCycle management important?
Because current practices are a “going out of business” strategy!
$ 8.3 Billion is spent each year
in conquest advertising.
30% of GP is
consumed in ad costs
00
$ 493.
STOP the Madness!
Customer retention
remains around 30%10
$ 1445 GP per unit
Four essential elements for Customer
LifeCycle Management:
• Actionable data
• Timely and relevant, customer-centric communications
• Consistent delivery of quality interactive processes and,
• Ability to demonstrate and quantify the value each customer
derives from the relationship.
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In what way is PerfectCircle CLMSM
different?
PerfectCircle CLM Strategy
Traditional “Retention Marketing”
Flexible
Cookie cutter
Aligned with business objectives
Sold on price or other traditional metrics
Unique, Flexible, & proactive
Activity based
Enterprise wide solution
Focused on reminders, and traditional call
center activity
Integrated communications
Permission based
Consumer behavior driven
Quantifies value for consumer
Service dept focused
Not integrated with total marketing and
advertising strategy
Facilitates shift in budget for no
incremental expense
Options:
Options:
O n Line A dm instrators
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Why DPS?
Innovative Thinking
 The ONLY CLM company in the automotive retailing industry
 The FIRST company to offer bundled communication capabilities oriented around consumer behavior
 The FIRST company to offer flexible fee structures
 The ONLY company to offer complete customization of the program
 The ONLY company to offer integrated marketing communications with a plug-n-play owner rewards program
 The ONLY automotive focused DB marketing firm to bundle all of this with personal owner web pages
Clear Solutions
 Simple to understand suite of capabilities
 Marketing strategies developed according to dealer objectives and unique market conditions
 Hands-off, turn-key services that can be customized to individual preference
 Marketing programs aligned and held accountable to dealer business objectives
Measurable Results
 The ONLY company to offer pre, and post implementation retention performance benchmarking
 The ONLY company to offer performance reporting that is available in hard copy, e-mail , fax, and
secure web based access to real-time data-driven reporting
 Personalized, monthly service consultations and program adjustment recommendations
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DPS Capabilities Platform
D B M anagem ent
S ervices
• F e d e ra l a n d S ta te
C o m p lia n c e filte rs
• C u s to m e r in fo & a d d re s s
s ta n d a rd iza tio n
• D e -d u p in g c u s to m e r
re c o rd s
• C u s to m e r & ve h ic le
re c o rd s a n d h is to ry
• O p -c o d e n o rm a liza tio n
• NCOA
• C A S S C e rtific a tio n
• C u s to m e r p ro filin g
• C u s to m e r s e g m e n ta tio n
• P re d ic tive d a ta m o d e lin g
• 3 rd p a rty lis t m a n a g e m e n t
B enchm arking
S ervices
C ustom er L ifeC y cle M anagem ent S ervices
A cquisition
• V o ic e o f th e P ro s p e c t –
S h o p p e r C o n ta c t
• A c q u is itio n d ire c t m a il
m a rk e tin g
• D e a le r A d va n c e le a d
m a n a g e m e n t s ys te m
• E -m a il D ire c t M a rk e tin g
• O n d e m a n d c a m p a ig n
m anagem ent
• P e rfo rm a n c e re p o rtin g
R etention
• V o ic e o f th e C u s to m e r –
S e rvic e F o llo w -u p
R enew al
• V o ic e o f th e C u s to m e r
R e a c tiva tio n
• E -m a il “S m a rt S u rve y s ”
• R e a c tiva tio n m a il
• N e w s a le th a n k yo u a n d
• N e w ve h ic le s a le s
s e rvic e in tro d u c tio n
c a m p a ig n
• M a in te n a n c e re m in d e rs
• O n d e m a n d c a m p a ig n s
• V o ic e o f th e C u s to m e r –
• P e rfo rm a n c e re p o rtin g
n o n -re s p o n d e r
O w ner R ew ards
• P ro m o tio n a l k it
• W e lc o m e k it
• P o in t a c c ru a l, tra c k in g ,
a c c o u n t a n d re d e m p tio n
m anagem ent
• M yC a rP o in ts .c o m
p e rs o n a l o w n e r w e b
pages
• M a jo r s e rvic e th a n k y o u
• E -m a ile d c o m m u n ic a tio n s
• M yc a rp o in ts .c o m
p e rs o n a l o w n e r w e b p a g e s
• O w n e r rew a rd s p ro g ra m
• K e y ta g s
• S e rvic e M a in te n a n c e
books
• O n d e m a n d c a m p a ig n s
• P e rfo rm a n c e re p o rtin g
T he 4 C ornerstones of C ustom er L ifeC y cle M anagem ent
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•
D P S c lie n t e n g a g e m e n t
a n d b u s in e s s c a s e
d e ve lo p m e n t m o d e l
•
B e n c h m a rk m e a s u re m e n t
a n d fo llo w -u p
•
M o n th ly p e rfo rm a n c e
re p o rts
Next Steps
<list next steps here>
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