"Happy-lock in" as basis for successful CRM in digital age, best practices and approch

1. Page 1 | July 2014 | Happy lock-in
The Marketing & Sales Consultants of BBDO Worldwide
“Happy lock-in” as basis for CRM in Digital Age
Concept Paper

2. Page 2 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Agenda
Happy lock-in
Success factor for CRM in Digital Age
CRM concept development
Process and methods2
1

3. Page 3 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Best practices: How brands create loyalty within their ecosystems
More than 28 m sports
enthusiasts interact on a
regular basis with their peers
in the Nike+ community
Over 700 m iOS devices
sold. Repurchase rate of
Apple products tops 90%
1.3 bn registered users of
which 48% log onto
Facebook on a daily basis
Over 7.5 bn capsules sold
in more than 60 countries
every year
Best
practices
900 m reward program
members and 80,000 are
joining each week
Miles & More has over 25 m
members – less than 4,000
are part of the elite HON
circle
More than 45 m
members worldwide who
book more than half of all
room nights
Every 5th ebook download
in the US is a Kindle format

4. Page 4 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Nike+
 Drive customer value
through cross-selling
 Value added through
connected usage
 Appealing brand attitude
CRM target
CRM mechanics

5. Page 5 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Apple
iPhone
Mac
AppleTV
Appstore
iCloud
iPod
iPad
iTunes
 Create a “happy“ lock-in
 Fuel cross- and up-
selling
 Sign-in as pre-requisite
for usage
 Seamless user
experience between
products and services
CRM target
CRM mechanics

6. Page 6 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Nespresso
App
Food
Collection
Accessories
Coffee makers
Boutique
Capsules
Club
 Create a “happy“ lock-in
 Appealing brand attitude
 Hard lock-in
compensated by clear
benefits
CRM target
CRM mechanics

7. Page 7 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Amazon
 Broadest cross- and up-
selling
 Increase ”share of
wallet“
 Single source of digital
entertainment (Single-
Sign-On)
 Affordable end devices
to consume digital content
CRM target
CRM mechanics

8. Page 8 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Facebook
 Drive usage and increase
”share of time“
 One registration for all
services (Single-Sign-On)
CRM target
CRM mechanics

9. Page 9 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Starbucks
Coffee maker Collection
Blend
Tea
Bottled products
Syrup
Rewards card
Shops
Capsules
 Fuel frequency at PoS
 Unique and emotional
brand attitude
CRM target
CRM mechanics

10. Page 10 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Lufthansa Miles & More
Miles&More
Card & Credit
Card
App
 Increase share of wallet
(travel spendings)
 Double lock-in points:
redemption and status
Partnerships
Lounges
Catalog
Upgrades
Priority LaneMagazine
CRM target
CRM mechanics

11. Page 11 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Marriott Rewards
Credit cardRewards card
App
 Increase share of wallet
(overnight stays)
 Double lock-in points:
redemption and status
Website
Partnerships
Lounges
Status cards
CRM target
CRM mechanics

12. Page 12 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Lessons learned: CRM targets must be aligned with disruptive CRM mechanics
CRM targets CRM mechanics
…
Status model
Brand attitude
Single-Sign-On (SSO)
Reward points
Seamless user experience
Customer lock-in
Connected usage
Degreeofdisruption
Conquest
Loyalty
Brand
experience
Sub-objective (examples)Core objectives
 Boost member
registration
 Generate referrals and
recommendations
 …
 Fuel purchase
frequency
 Promote cross-
and up-selling
 …
 Create emotional
lock-in
 Raise customer
satisfaction
 …
1
2
3

13. Page 13 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Agenda
Happy lock-in
Success factor for CRM in Digital Age
CRM concept development
Process and methods2
1

14. Page 14 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Objectives: The CRM concept contributes in three ways to establish a brand as
ecosystem and individual access point
“What are the relevant touch points, triggers and data
sources to identify customers for a brand signup?”
“How can we
make customers
stay with a
brand forever?”
“How can we
motivate customers
to use a brand on a
regular basis?”
JOIN
USESTAY
CRM-Backbone

15. Page 15 | July 2014 | Happy lock-in as basis for CRM in Digital Age
Development stages: Depending on the maturity of the new a brand platform,
different CRM objectives are in focus
JOIN
USESTAY
STAGE 1:
Launch
Focus on generating
registrations to build
up a solid customer
base for a brand
USESTAY
JOIN
STAGE 2:
Activation
Focus on stimulating
usage to increase
activity level of
registered customers
STAGE 3:
Stabilisation
Focus on creating
loyalty and usage to
establish a profitable and
long-term relationship
STAY
JOIN
USE

16. Page 16 | July 2014 | Happy lock-in as basis for CRM in Digital Age
JOIN: Working packages overview
Inform &
activate
1
Identify &
register
2
 Develop a touchpoint-oriented
communication strategy to set call to
action (digital + physical touchpoints)
 Establish teaser components for
enthusiasts and prospects (e.g. events)
 Provide convenient registration process
 Set upfront data requirements to ensure
maximum customer data quality
Result: Lots of registerd customers

17. Page 17 | July 2014 | Happy lock-in as basis for CRM in Digital Age
USE: Working packages overview
Utilize &
interact
3
Refer &
recom-
mend
4
 Design engagement strategy for
constant customer dialogue
(e.g. via app push-service)
 Develop concept to explore cross-selling
and up-selling potential
 Identify triggers to stimulate referrals
 Develop a brand ambassadors program
to increase external referrals
(e.g. via social media platforms)
Result: More revenue per customer through individualized
communication

18. Page 18 | July 2014 | Happy lock-in as basis for CRM in Digital Age
STAY: Working packages overview
Appreciate
& reward
5
Win back6
 Introduce qualification levels to create
recognition and exclusivity
 Define bonus program to provide
customers with monetary benefits
 Develop a reactivation concept to send
impulses to inactive customers
 Create a churn management strategy to
prevent customer migration
Result: Longer customer relationship through emotional
an monetary lock-in

19. Page 19 | June 2014 | Contract Management HELLA
Batten & Company GmbH, Königsallee 92, 40212 Düsseldorf, T +49.211.1379-8539, F +49.211.1379-8742, www.batten-company.com
Düsseldorf • Johannesburg • London • Madrid • Moskau • München • Shanghai • Tel Aviv • Zürich
Dr. Christian von Thaden
Managing Partner
Batten & Company
Königsallee 92
40212 Düsseldorf
Fon: +49 (0) 211 1379 8748
Fax: +49 (0) 211 1379 91 8748
E-Mail: christian.von.thaden@
batten-company.com