Marketing Reimagined Using CRM by Ramesh Iyengar, Select Direct at DMA India Annual conference on 3rd May 2018 at the Leela Ambience Gurugram.

2. Presented by
Ramesh Iyengar
CMD
Select Direct Marketing Communications Pvt Ltd
e : iyengarramesh@selectdirect.in

3. WHAT HAPPENS IN
GENERAL MARKETING?
• Awareness : Traffic Building : Online/Offline
• Lead Generation
• Strategic Promotion
• Sampling & Couponing
• Usually a multi-media 360 degree approach to the customer

4. WHAT IS DIRECT MARKETING?
IT IS BASICALLY FOCUSSED,
AND, NOT MASS.

5. “
”80 : 20

6. A VERY COMMON PROBLEM
GETTING THROUGH TO USUALLY
DIFFICULT TO REACH
HNI’S / VVIP’S / CIP’S

7. THE GATE-KEEPER EFFECT
• The higher you go…more difficult you are to reach
• Physical barriers – The gatekeepers
• Digital has limited penetration. ATL is effective but expensive.
• Events have limited success…too many vying for the same
persons attention
• Sales person and tele-calls… inconsistent success

8. IS THERE ANOTHER EFFECTIVE WAY?

9. DIRECT MARKETING COMMUNICATIONS
TARGETED, PENETRATIVE,
AND COST-EFFECTIVE

10. DM : A COGENT DEFINITION
Interaction

11. DIRECT MARKETING PRODUCES OR USES DATA
FROM INTERACTION WITH CUSTOMERS OR
PROSPECTS IN ORDER TO TARGET MARKETING
ACTIVITIES, GENERATE CONTINUING BUSINESS
AND MAINTAIN CONTROL OVER
MARKETING EXPENDITURES

12. WHAT IS LOYALTY MANAGEMENT?

13. LOYALTY MANAGEMENT SEES PERSONALISED
MARKETING MESSAGES AND
PERSONALISED SERVICE MESSAGES AS THE
LEFT HAND AND RIGHT HAND THAT WORK
TOGETHER
TO CRAFT LOYALTY

14. Database
Permission
marketing
Data
Analytics
Customer
Knowledge
CRM/
Loyalty
Programs
Relationship
Manage-
ment
LTV
What are the CRM essentials?

15. WE ARE NOW READY FOR BUSINESS!

16. LET’S LOOK AT THE WORLD AROUND US
AND DISCOVER DIRECT MARKETING AT WORK

17. Domino Pizza
Recognition
Attention to your needs
Repeat purchases
Rewarded
…Technology integration

18. Banks
Mandatory disclosures
Precise tracking
Able to manage your money
Services
… Data warehousing & analytics
…mass marketing

19. ROLE FOR DIRECT?
CASE: ICICI BANK SPOUSE CARD

20. OBJECTIVE
• To enroll and ensure usage of ICICI Bank Credit Card by
U-HNI Customers of the Bank
• Back-story: Heads of Corporations holding Corporate Accounts
with ICICI Bank were not using their ICICI Bank Credit
Cards.
• Mainly this was because other Banks had acquired them long
before ICICI bank was launched.

21. STRATEGY
• To reach Mr. Right we recommend launch of a “Spouse card”
…styled on lines of a Limited Edition Card
• The end objective was to make the Limited Edition card as the
“active” card in the spouse’s wallet

22. STRATEGY
• Raison d'être for TG to consider ICICI Bank Credit Card over
several others with :
• All rewards points would go to educating girl children
• ICICI bank would contribute double reward points to
accelerate earnings
• Members could nominate the NGO of their choice
• NGO would give quarterly status reports to the sponsor of
the child’s progress

23. STRATEGY
• Goal was to maintain Relationship with member for 2 years
and provide proof-of-concept that this card was better… as it
put card spends to good use.
• Then strategically offer “add-on” card to enroll the member’s
spouse…our ultimate desired UHNI Target
• Rationale being “Your spends educate ‘X’ girl children ….a
noble cause…
• Now your spouse’s spends…which is much much more… can
help educate many more…”

24. THE DM THAT CONVINCED HNI’S TO ASK FOR
THE LIMITED EDITION CARD
Communication was ultra special and highly personalized
…clearly conveying that this opportunity lay with only a top
1000 individuals or so

27. RESULTS
• 1500 special Limited Edition cards enrolled
• Add-on cards placed with the heads of most Corporations
• Over 40% of cards issued were ‘active’ portfolio

28. HSBC COMMERCIAL BANKING

29. OBJECTIVE
• HSBC India - Commercial Banking needed to impact and
connect with decision makers at the top
• Presidents and CEOs of these companies are not accessible via
mail, due to the multi-layered ‘gate keepers’.
• Traditional DM’s would have no chance of reaching his / her
table.

30. STRATEGY
• To send a highly personalized 3-D mail package on his
birthday, so customized and in-your-face that it was sure to be
seen and retained by our targets.

31. IMPACT
• A large facsimile reproduction of the front page of The Times of
India, on the day he was born, was framed and delivered to
these VVIP customers across India.
• The front page news of the most momentous day in his life
held universal appeal. The gift would be retained and not
passed along, giving the brand greater connect with this
normally un-reachable TG

32. THE COMMUNICATION THAT COULD NOT
BE INTERCEPTED!

34. RESULTS
• Over 500 connects were made.
• Relationship Managers got called and thanked.
Many customers also sent personally signed
letters, as they treasured this unique gift,
which they proudly displayed.
• The campaign was phenomenally successful as
these VVIPs actually took time off from their
busy schedules to respond in person.

35. B2B: Airlines
Focused buyers
200 - 300 Airlines
Very Hi- Value
... Relationship Management

36. LOCATOR
B2B DIRECT MARKETING

37. RELATIONSHIP MANAGEMENT
• Connecting manufacturers to Architects : Otherwise impossible to reach
• These chosen Architects specify over Rs 53,000 Crs worth products annually
• Sustained relationship mgmt. spanning 2 decades
• Strong linkages : Personal interaction
• Physical printed catalogs for 20 years: Free of cost to Architects
• Migrated to a Portal when the audience were ready

39. ADDRESSING RS 53,000 CRS.
• Connecting difficult to reach Architects, a core 25,000 of them
• Traffic building using SM, Digital, Events and Networking
• 1,32,000 hits since 2015 (from this niche community)
• Avg time spent 5.5 minutes per session
• Avg no. of pages viewed 7 per session
• Awarded the Industry’s first Gold EMVIE, for Media Invention in 2001

40. DIRECT
MARKETING AT
WORK!
CULTIVATING THE
CUSTOMER
THROUGH HIS
LIFETIME (LTV)

41. Telecom
Relationship Management
RPU
Roaming, VAS
Advocacy
… Loyalty Management

42. MANAGING LOYALTY
• Proper identification
• Top 7% contributes high RPU
• Subsidising the bottom 60%
• High VAS…international roaming, data etc
• Segregated into Gold and Silver Tiers

53. Hospitality
Visits
Preferences
Recognition
… CRM

54. Retail
Identification
Services
Value
…Recognize, Reward, Up-sell

55. SHOPPERS’ STOP
A Case Study in Loyalty Marketing

56. • First Citizens’ Club initiated in-house in 1995 Membership Card
• 17% Contribution to annual sales from 22,000 FCC members
• Select Direct awarded account in 1996…challenged and increased
contribution
Y1 Target : 20% Achieved : 25%
Y2 Target : 30% Achieved : 33%
Y3 Peaked at 37%

57. STRATEGIC
ORIENTATION
• Operations Streamlining
• Data analysis: Who’s who, What’s what
• Co-relations to …manage attrition
• Continuous R’ship management

58. DATA MINING : FIRST CITIZENS’ CLUB
• Analysis: Customers shopping within 45 days after enrolment
tend to shop 2 times more within a year.
• Action: Sent communication to customers within 30 days with
an offer.
• Result: Additional sale of Rs.8 lac/month from these groups.

59. DATA MINING: FIRST CITIZENS’ CLUB
• Analysis: Self-employed married professionals, with their
wives possessing add-on cards, shop 50% more than those who
did not.
• Action: Issued free add-on cards to the members who did not
have associate cards.
• Result: Received an additional sales of Rs.1.5 crores over a
period of 1year.

60. DATA MINING: FIRST CITIZENS’ CLUB
• Analysis: 40% of people who buy shirts, also buy ties
within 2 months of the purchase.
• Action: 45 days after their purchase of shirts, they
were sent an offer on ties.
• Result: 20% redemption with Rs. 2 Lac additional sales
of ties per month.

61. DATA MINING : FIRST CITIZENS’ CLUB
• Analysis: 60% of members who lapsed did not shop during
their last 4 months.
• Action: 90 days before & 45 days before their membership
expiry a reminder letter sent to them.
• Result: Additional sales of Rs. 10 Lac + per month with an inc.
in renewal rate from 45% to 77%.

62. STRATEGIC
ORIENTATION
The formula modelled by
Select Direct as long back as
late ’90s
Using the latest technology
available then to manage
‘Big Data”
Achieved with…486 and
Pentium1 chip computers !

63. D-S-D-F :
CONTINUITY CAMPAIGN
• Top 100 : Avg annual spend > Rs 4 lacs
• Rewards points?
• Recognition
• Exclusive Fashion Event : You are one of our Top 100
customers

64. D-S-D-F
• Next 700 : Big spenders
• Exclusivity and impact to achieve bonding
• Co-op deal with Arrow
• Finest shirts …SKU data …monogrammed sleeve

65. D-S-D-F
• Next 1000 : Moderate to High Big spenders
• Personalised approach
• RM with personal wishes on their day

66. ROI
• Average annual sales contribution from FCC : 37%
• 4.7% of Shoppers’ (footfalls) contributed to more than a
third of store sales
• Direct Marketing spends : 2.8%

67. It’s never bought!
Loyalty is always earned…

68. Durables
Customer profiles
Upselling
Cross-selling
…Data driven marketing

69. A RURAL CASE:
KITEC COMPOSITE PIPES

70. PLUMBERS REWARDS PROGRAM
• Niched product : many pluses , perceived minuses
• Legacy : stiff competition
• Gain loyalty of end users : plumbers
• Rewards program : 4 years long : Build traffic to dealers
• Changed perceptions and created advocates : Education
• Vernacular communication
• Majority sales today comes from enrolled plumbers
• Annual cost < 2%

78. Credit Cards
Identity
Credit
Purchase behavior
Tactics
…Big Data-Analytics

79. HOW DO YOU INCREASE
SPENDS ON A CREDIT CARD?

80. INCREASING SPENDS
• ICICI Bank Ltd.
• Credit Card Base
• Usage programs
• 5 months promo
• Shift spends from other cards
• Seek enhanced spends past promo
• Increase preference over other cards

81. INCREASING SPENDS (CONT’D)
• The “It’s Mine” program
• 3 tiers based on spends commitment
• Low, med, high level rewards
• Commitments of spends
• 25K, 40K, 50K

85. RESULTS
• Total contact base: 1,45,482
• Enrolments: 18%
• Target achieved: 74%
• Business Generated:> Rs. 100 crs.
• 25% excess over commitment
• Promotion cost
1.30 % of business generated

86. HOW DO YOU ACTIVATE DORMANT CUSTOMERS?

87. ACTIVATING CUSTOMERS
• ICICI Bank Credit Cards
• In the days of m’ship fees
• NUNP (Never used – not paid)
• > 20% of base
• Objective
• Get 1st use
• Results in billing
• Fee recovery

88. ACTIVATING CUSTOMERS
(CONT’D)
• Promo:
• Tactical Festival : Ganesh Chaturthi
• Threshold spend Rs. 2000/-
• Incentive: Silver coins

90. RESULTS
• 40% activated
• 25% achieved/exceeded threshold

91. RESEARCHING POOR PERFORMANCE

92. RESEARCHING POOR
PERFORMANCE
• ICICI Bank Cards
• Referral program
• 1 to 5 referrals: Tiered rewards
• Campaign Response: only 1.2%

93. RESEARCH AND REVISION
• Degree of effort
• Customer were not enthused to attach referee's financial docs

94. RESEARCH AND REVISION
• Campaign repeated with same creative
• Tweaked to take care of degree of effort
• ‘each one, get one’ proposition
• How to identify Mr. Right
• to get better quality referrals
• Second round results: 12% referred (10x performance)

96. B2B : CAPEX
Fewer buyers
Greater attention
Strategic Promotion
Reassurance
…Lead Generation

97. GODREJ INTERIO
IT NEED NOT BE A BEST KEPT SECRET

98. GODREJ INTERIO
CORPORATE REACH
OUT B2B CASE
• Most difficult to reach Heads of
Companies…multiple gate
keepers…poor connect with digital and
social…no access
• Changing perception from a furniture
maker to provider of Turnkey services
• Shifting focus from t/o of Rs 1 Cr. To
Rs 50 Crs. each
• 3 year Direct Marketing
Communications plan that’s today
resulted in massive returns
• GI is in the top 5 consideration set.

99. A SYSTEMATIC APPROACH
• Database Top Management decision makers in companies with
t/o over Rs 500 Crs
• Reach them with regular targeted communication…and drive
this point home
• To get included in the consideration set whenever the
enterprise was planning a facility
• Make sure the communication is not junked and gets on the
Top Guy’s table

100. EVERYTHING UNDER A SINGLE ROOF

101. EVERYTHING UNDER A SINGLE ROOF

102. EVERYTHING UNDER A SINGLE ROOF

103. NOW TRY AND IGNORE THIS

104. Standing tall!

105. Everything under one roof
for your multi storied facility

106. 360 degree
solutions

107. Personalised for
impact

108. MUSIC FOR THE SOUL

109. MUSIC FOR THE SOUL

110. MUSIC FOR THE SOUL

111. 9%
33%
18% 18%
3%
18%
0%
5%
10%
15%
20%
25%
30%
35%
Extremely useful Very useful Useful Somewhat useful Not useful Can't say
Usefulness %age

112. 33%
27%
12%
0%
3%
24%
0%
5%
10%
15%
20%
25%
30%
35%
Extremely likely Most likely to
recommend
Likely Unlikely Not likely Can't say
Likeliness to recommend %age

113. CUSTOMER RELATIONSHIP MANAGEMENT
TODAY
INTEGRATING IT ALL USING THE
DEPLOYMENT CAPABILITY
OF DIGITAL & SOCIAL
COST EFFICIENT TOO!

114. MANY VERTICALS
ONE SYSTEM OF PERSONALIZED
MARKETING
USING CRM STRATEGIES

115. IT’S TIME WE REIMAGINED MARKETING

116. Renaissance
rɪˈneɪs(ə)ns,ˌrɛneɪˈsɒ̃s/
Noun
A revival of or renewed interest in something

117. The Renaissance of
Direct Marketing
…in a Digital World
selectdirect