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Build Customer Loyalty - BMW Case Study
Build Customer Loyalty - BMW Case Study
Build Customer Loyalty - BMW Case Study
Situation Analysis
In 2000, BMW built a robust customer and prospect database designed to:
Provide a comprehensive view of the automotive and financial services BMW customer Deliver short term, incremental revenue through opportunistic marketing programs Increase customer loyalty through understanding and ability to deliver relevant, timely communication Secure BMW s place in its customers lives by Prof. Rushen Chahal 6 identifying which households are good targets for additional BMW purchases
BMW Situation II
BMW now has a central system of measurement
The BMW Report Center monitors communications and response from prospects and customers
Measurement includes cost per response and cost per sale
BMW now has the ability to view prospects as well customers in its universe
This allows BMW to view the full shopper-owner cycle from first point of contact, through sale and cross sale
The new marketing database contains a broad range of information on the BMW consumer
Campaign, response, and financial service data 190 appended individual and household data points
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Benefits to BMW
Increased communication effectiveness
Integrated database used by all groups
Increased efficiency The right information to the right customer at the right time Reduced communication expense
Fewer pieces mailed with higher effectiveness
Increased customer participation Increased customer satisfaction Increased corporate and center profits A higher level of data from and about BMW customers
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The Database
All programs are built on a state-of-the-art customer relationship management database which provides:
More information on owners and prospects than BMW has ever assembled before Powerful tools to support BMW loyalty and prospect conversion programs Automated communication that supports the Owner Experience
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It welcomed people to the brand, but offered no real taste of the BMW Experience
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Newsletter Strategy
Ongoing collection of news and information of interest to BMW owners Owner surveys to determine preferences for:
News, information, and topics Communication Channel (email or print) Frequency Move to email newsletters as quickly as possible
Multiple offers to generate owner response Promote the use of Owner s Circle
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Newsletter Content
New products BMW awards Sports stars that drive BMWs Ratings by leading car magazines Why the BMW engines are superior The history of BMW Event calendar Magazine reprints Sponsorships BMW Brand Values Roadside Assistance Servicing requirements BMW Insurance BMW credit cards BMW Accessories Driving Events BMW trade in prices BMW Owner Clubs Owner s Circle World news featuring BMW
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Push registration on Owner s Circle Each program effectiveness measured by control groups:
Control Group: Owners who are not sent the communications Test Group: Owners who get the communications
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Rapidly qualified and scored Centers receive qualified leads electronically within 48 hours of receipt Prospects get BMW message within 48 hours Every lead tracked electronically, with daily, weekly, & monthly reports for BMW management on the web
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Fully integrated creative implementation in both electronic and paper media as well as events Test scoring models against anticipated response and adjust as needed Utilize a 5% control group for a period of one year for reporting comparisons
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Modeling success % prospect conversion (historical) Media preference automated system Cost of program Cost of sales
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Alternating content delivery mediums Each reinforcing the one that came before it
Use of database information to drive customization and relevance Each communication introducing a new piece of the BMW Experience All communications tie in to web activities Integration with off-line and online marketing activities Prospects given the opportunity to opt-out at any point Prospects removed from program if they purchase a vehicle
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Brand Values Brand Heritage Product attributes The BMW Ownership Experience
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Reduce the cost per car sold Provide Management with accurate & timely knowledge of the prospect and
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X Factor Initiatives
The Loyalty and Prospect Programs, combined with the database, offer great potential for creative, interactive X factor programs:
Contests Programs for Women/Minorities Special Events Referral Programs Certified Previously Owned Cars Second BMWs in every home Lifestyle Programs Congratulatory Mailings to 3+ BMW Owners
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Plus improved reporting, query development and a half dozen new ideas to be developed and implemented during the year
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X1 Women s Program
Identify ways to build relationships with female owners:
Bring them to the Brand, and keep them longer Appeal to their unique needs Recognize the purchasing power and influence that automotive marketers typically ignore
Provide tools that reduce pre-dealer visit anxiety Tailored communications that highlight
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Test the program on current BMW owners, then roll out to prospects
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Thank You
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