Rocket fuel for aspiring mobile marketers

1. HOW TO LAUNCH A
EVENT TICKETING SALES
BUSINESS ON MOBILE
ROCKET FUEL FOR
ASPIRING MOBILE MARKETERS
@FLEPHDOTCOM

2. SECTION FOUR
CUSTOMER ACQUISITION & RETENTION

3. SO…
WHAT IS THE DIFFERENCE
BETWEEN CUSTOMER ACQUSITION
AND CUSTOMER RETENTION?

4. CUSTOMER ACQUISITION
REFERS TO TECHNIQUES USED
TO ACQUIRE CUSTOMERS

5. CUSTOMER RETENTION
IS A STRATEGIC PROCESS
DESIGNED TO KEEP
OR RETAIN CUSTOMERS

6. CUSTOMER ACQUISITION AND RETENTION
WHAT YOU NEED TO KNOW!
INSIGHT
IT COSTS 4 TIMES AS MUCH TO
ACQUIRE A CUSTOMER
THAN IT DOES TO RETAIN A CUSTOMER

7. BRAND EXPERIENCE SPECTRUM
ACQUISITION STRATEGY
ATTENTION
ENGAGEMENT
RETENTION STRATEGY
COMMITMENT
DEFECTION

8. THE DRIVERS OF CUSTOMER CHURN
CONSUMER
FEELING OF
NOT BEING
UNDERSTOOD
PRINCIPLE DRIVER
FOR CUSTOMER
DEFECTION
BRAND
NEGATIVE
BRAND
CURRENCY
SUM TOTAL OF ALL
CUSTOMER
EXPERIENCES
ACROSS ALL
BRAND
TOUCHPOINTS

9. ACQUISITION MARKETING OVERVIEW
CAMPAIGN
THE CURRENT APPROACH
CAMPAIGN
#3
#2
– “We have a campaign now who can we send it to?”
CAMPAIGN
CAMPAIGN
#4
#1
THE CAMPAIGN A CUSTOMER RECEIVES IS BASED ON
– Which campaign is being run
– When it is run
– How long since the last campaign contact
NB:
CUSTOMERS ARE BEING TARGETED WITH SALES
MESSAGES
OUR
CUSTOMER

10. RETENTION MARKETING OVERVIEW
THE NEW APPROACH:
OUR
CUSTOMER
– “We react to customer actions and
contact them when their actions indicate
that we should”
THE CAMPAIGN A CUSTOMER RECEIVES IS
TYPICALLY BASED ON:
– What they have done
CAMPAIGN
– What tickets they have bought
#4
CAMPAIGN
#1
CAMPAIGN
#2
CAMPAIGN
#3
NB:
CUSTOMERS ARE ENGAGED IN A CONVERSATION
RELEVANT TO WHAT THEY HAVE PURCHASED AND
HOW THEY ARE INTERACTING WITH THE BRAND

11. BRAND MESSAGING vs BRAND EXPERIENCES
BRAND LEAD EXPERIENCE COLLABORATIVE EXPERIENCE
ACQUISTION
MESSAGING
RETENTION
MESSAGING
CONSUMER BACKLASH
Unsubcribes
REL EVA NT
BRA ND
VALUE
PROPOS ITIO N
CUSTOM ER L EA
D
PERSO NALISED
ü Unlikes
ü Negative Word of
Mouth
ü Customer Defection
ü Negative PR
ü Loss of Sales

12. BRAND EXPERIENCES vs CUSTOMER RETENTION
COLLABORATIVE
EXPERIENCE
RELATIONSHIP
MARKETING
CUSTOMER
RETENTION
BRAND LEAD
EXPERIENCE
TIME

13. 1. TRANSACTIONAL MARKETING
Mainly relevant in low-priced, low-profit
MARKETING
TYPES
margin businesses e.g. retail / FMCG
2. RELATIONSHIP MARKETING
Extremely relevant in highly-competitive
and high-profit margin markets e.g.
financial services sector

14. SO…
WHAT IS RELATIONSHIP MARKETING?

15. RELATIONSHIP MARKETING IS
A STRATEGY DESIGN TO
FOSTER CUSTOMER LOYALTY,
INTERACTION AND LONGTERM ENGAGEMENT

16. PRINCIPLES OF RELATIONSHIP MARKETING
THE KEY
RELATIONSHIP
CAMPAIGNS
RELATIONSHIP
BUYER

17. CONSUMER BUYING TYPES
OUR DESIRED CUSTOMER
TRANSACTIONAL
BEST DEAL FOCUSED
UNLOYAL
FOCUSED ON TRUST
WANT RELIABLE PRODUCTS
WANT TO BE RECOGNISED AND REMEMBERED
“I WIN AND YOU WIN” MINDESET ORIENTATION

18. CONNECTING WITH THE CONSUMER
DIGITAL CHANNELS
RETENTION STRATEGY
TARGET CUSTOMER
BUSINESS OBJECTIVE
+ BOOST IN
PROFITS
RELATIONSHIP
CUSTOMER
MARKETING
GOAL:
GROW THE LTV
OF OUR CUSTOMER
SMS & USSD
RETENTION
RELATIONSHIP
BUYERS

19. WHY DO WE NEED IT?
TO ILLUSTRATE THE
IMPACT OF CUSTOMER CHURN
LET’S TAKE A LOOK AT THE BUSINESS
IMPLICATIONS

20. BUSINESS IMPLICATIONS OF DEFECTION
DIRECT
LOSS
CUSTOMER
DEFECTION
INDIRECT
LOSS

21. DIRECT
LOSS
1. DIRECT LOSS
The impact of Customer Lifetime Value
(CLV) on our mobile ticketing business:
§ Assuming that the LTV of a customer is $3,600
and we lose 1 000 customers per year to the
competition, the direct loss incurred by the
company each year is $360,000 (assuming the LTV
period = 12 months).

22. INDIRECT
LOSS
2. INDIRECT LOSS
Refers to the “ripple effect” of the potential
loss based on word of mouth:
§ Assuming that just one of these defecting
customers with a LTV of $3,600 tells 12 people (each
with an average circle of influence of 250) about a
bad experience with our brand - and if only 1% of
their network decide not to buy - this will result in a
compounded $9 million loss in potential revenue
each year.

23. CONCEPTUAL FRAMEWORK FOR MODELLING CLV
CLV HELPS US TO UNDERSTAND:
COMPANY
VALUE
1. How much did we pay to acquire
customers from each marketing
CLV
CUSTOMER
ACQUISITION
CUSTOMER
RETENTION
channel?
CUSTOMER
EXPANSION
MARKETING PROGRAMS
2. Did we acquire the best kind of
customers?
3. How much should we spend on
keeping them?

24. CUSTOMER RETENTION CAMPAIGN PROCESS
CUSTOMER DATA
ANALYSIS
• PURCHASE HISTORY
• BEHAVIOURS | WANTS |
NEEDS | ASPIRATIONS
• VALUE SEGMENTATION
• SEGMENTATION CHURN
OUTREACH
PLANNING
PREDICTIVE
EXECUTION
MODELLING
REPORTING
• COMMUNICATIONS /
• CUSTOMER CHURN
• CHANNEL STRATEGY
• ANTICIPATE CUSTOMER
MESSAGING
AND
CHURN
STAGES
LOSS
• DEFINED EVENTS /
TRIGGERS
• CHURN REDUCTION
RATIO
• FINANCIAL IMPACT
• COST SAVINGS
• INCREASE IN CLV
:: THIS IS THE GAME CHANGER ::

25. RELATIONSHIP MARKETING SYSTEMS
BACK OFFICE SYSTEMS
CRM
CUSTOMER PROFILING
DIGITAL CHANNELS
EXPERIENCE PERSONAS
PREDICTIVE MODELLING
EVENTS / TRIGGERS
BI
OEM
BSS
DATABASE
VALUE SEGMENTATION
HIGH | MEDIUM | LOW
BLC
SMS & USSD
CUSTOMER

26. TYPES OF EVENTS / TRIGGERS
BEHAVIOURAL
• EVENT PURCHASES
• THRESHOLD
PURCHASES
ANALYTICAL
• BIRTHDAYS
• NEW
• GIFTING
REGISTRATIONS
FREQUENCY
• DORMANT
TRANSACTIONAL
ACCOUNTS
• PURCHASE
• PREDICTIVE
CUSTOMER LIFE
MODELLING
:: WELCOME TO “MARKETING AUTOMATION” ::

27. SECTION FOUR – WHAT HAVE WE LEARNT
CUSTOMER ACQUISITION &
RETENTION
• THE DIFFERENCES BETWEEN ACQUISITION & RETENTION
• THE CUSTOMER BRAND EXPERIENCE SPECTRUM
• THE DRIVERS OF CUSTOMER CHURN
• BRAND MESSAGES vs BRAND EXPERIENCES
• THE PRINCIPLES OF RELATIONSHIP MARKETING
• THE IMPACT OF CUSTOMER CHURN ON BUSINESS PROFITS
• EVENT BASED MARKETING TRIGGERS AND SYSTEMS