Implementare un sistema di customer loyalty per migliorare la customer experience: un caso di successo. Giovanni Lux

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1 Implementare un sistema di customer loyalty per migliorare la customer experience: un caso di successo Giovanni Lux 20 Novembre, 2010

2 What s Customer Experience? TRANFORM PROSPECTS INTO BUYERS AND PROMOTERS Understand which experience turns a prospect into a buyer and into a brand promoter and enable the «repetition» of such an experience at key steps of the customer journey DATA the hard things we know about prospects/customers: Who, where, what they bought OPINION what Prospects & Customers think of the company CSI/NPS Sales/Service 2

3 Customer Experience Sales Cycle Service/Owner Cycle Sales Retention / Defection Cycle Consideration Set Brand Enquiry Demo Negotiate Shopper Feedback Lost Sale Order Delivery Sales Customer Feedback CSI Information Warranty Repair Customer Feedback Scheduled Service Inspection Customer Complaints Dealer Defection Brand Defection Vehicle Recall Repairs Customer Feedback CSI Information & Complaints Equity Position on Finance Contract Market Awareness Repurchase Consideration Avoidable Defection Natural Defection Marzo

4 Data Base, Reporting, Sales tracking Customer Experience & CRM - Activities Understand our customer to improve sales and service effectiveness Objectives Activities Customer Experience Stages Showroom Traffic DLR Digital DM Campaign/SEM Web site lead capture opt. Conversion rate Customer Experience CRM Campaigns Brand/Dlrs Lead Management Shopper Feedback Coaching Sales CSI Customer Feedback Workshop Traffic After Sales CRM Campaigns P&S/DLR Service Customer Feedback Inserire Titolo Evento 4

5 Customer Experience & CRM: what we do Understand our customer to improve sales and service effectiveness Analytical & Operational CRM Visibility Customer Satisfaction Measurement Customer Database, Business Intelligence and Reporting Understanding Traffic Loyalty Direct Marketing and Lead Management Dealer CE&CRM Services (Shopper Feedback, Pipeline Management, DM, SEM) Local traffic Experience Closure Rate 5

6 dbcare Customer Analysis, Relation & Experience vendita autovetture nuove passaggi di proprietà, rottamazioni, cambi di indirizzo prodotti finanziari interventi riparativi assistenza stradale Analytics CE&CRM HQ Data mining Predictive modeling Targeting Reporting / response rate mgmt. concessionari lead customer satisfaction fonti esterne - validazione / arricchimento - concorrenza ( i ) dbcare Operatio nal Privacy management Contact rules Data use rules CE&CRM MKT Campaign management Target selection Contact history Loyalty plan mgmt. Response rate mgmt. Marzo 2011

7 Analytics e Campaign Managment Cluster Analysis FGA Customers A,B,C,L Possesso 0 M fedeltà MARCA I auto Possesso>0 Acquisto NUOVO fedeltà SEGMENTO Possesso>0 Acquisto USATO F

8 Analytics e Campaign Managment Cluster Analysis FGA Customers A,B,C,L0 Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5 Cluster 6 N-% auto 8-15% 7-13% 16-29% 7-13% 9-16% 8-15% N-% acquirenti 17,846-26% 6,915-10% 14,341-21% 16,459-24% 7,980 12% 5,083-7% Segmento A/B A/B A/B B C L0 FIAT GRANDE PUNTO ALFA ROMEO MiTo CITROEN C1 CITROEN C3 FIAT BRAVO CITROEN C3 PICASSO FIAT PANDA SEAT IBIZA FORD KA FORD FIESTA FORD FOCUS FIAT FIORINO QUBO FIAT PUNTO LANCIA Y/Y10/YPSILON OPEL CORSA HYUNDAI I 30 FIAT IDEA FIAT SEICENTO NISSAN MICRA PEUGEOT 206 OPEL ASTRA FORD FUSION RENAULT TWINGO PEUGEOT 207 PEUGEOT 308 OPEL MERIVA SUZUKI SWIFT RENAULT CLIO RENAULT MEGANE TOYOTA AYGO VW POLO TOYOTA YARIS Marca/Modello CHEVROLET AVEO FIAT 500 MY 07 CHEVROLET MATIZ AUDI A3 LANCIA MUSA DACIA SANDERO MAZDA 2 HYUNDAI I 10 BMW SERIE 1 MERCEDES CLASSE A HYUNDAI I 20 MINI KIA PICANTO VW GOLF RENAULT MODUS SKODA FABIA SMART NISSAN PIXO TOYOTA IQ OPEL AGILA PEUGEOT 107 SUZUKI ALTO SUZUKI SPLASH Sesso/Età Over 45 Under 35 Femmine M under 25 / F under 55 Maschi Maschi over 35 Parco Poss/Acq Poss>0 LEGENDA Acq Usato I auto / Poss 0 I auto /Poss>0 Acq Usato I auto Poss 0 /Poss>0 Acq Nuovo Poss 0 /Poss>0 Acq Nuovo Fedeltà MarcaB benzina Segmento Marca Marca D diesel G gpl M metano LEGENDA B benzina Alfa D diesel Fiat G gpl Lancia M metano Abarth Alfa Fiat Lancia Abarth 8

9 lift cumulata Analytics e Campaign Managment Predictive Modeling Cluster 1 Brand Fiat Loyalty Sul miglior 5 % la lift è pari a 6.5, sul miglior 20% a Training Validation Totale LIFT cum Ventile Training Validation Totale 5% % % % % % % % % % % % % % % % % % % % ventili di popolazione (ordinata in base allo score) 9

10 % risposta catturata cumulata Analytics e Campaign Managment Predictive Modeling Cluster 1 Brand Fiat Loyalty Sul miglior 5 % si cattura il 32% del target, sul miglior 30% il 74% 100% 90% 80% 70% 60% 50% 40% 30% Training Validation Totale % RISPOSTA CATTURATA cum Ventile Training Validation Totale 5% 32.3% 32.3% 32.3% 10% 46.2% 46.4% 46.3% 15% 55.8% 56.0% 55.9% 20% 62.8% 63.3% 63.0% 25% 69.0% 69.2% 69.1% 30% 73.7% 74.0% 73.7% 35% 77.6% 77.8% 77.7% 40% 80.6% 80.9% 80.8% 45% 83.6% 83.7% 83.6% 50% 86.0% 86.0% 86.0% 55% 88.4% 88.4% 88.4% 60% 90.3% 90.3% 90.4% 65% 92.1% 91.8% 92.1% 70% 93.8% 93.6% 93.7% 75% 95.0% 95.1% 95.1% 80% 96.3% 96.4% 96.3% 85% 97.6% 97.4% 97.6% 90% 98.8% 98.4% 98.6% 95% 99.4% 99.3% 99.4% 100% 100.0% 100.0% 100.0% ventili di popolazione (ordinata in base allo score) 10

11 Analytics e Campaign Managment Predictive Modeling Brand Alfa Romeo Sul miglior 5% la lift è maggiore di 7 Sul miglior 20% la lift è pari a 3 11

12 Analytics e Campaign Managment Predictive Modeling Brand Alfa Romeo Sul miglior 5% si cattura il 44% del target Sul miglior 30% si cattura il 70% del target 12

13 Direct marketing + 5,4% loyalty Marca Acquistata Marca posseduta Contatto DM FGA Concorrenza Auto FGA NO 45,77% 54,23% SI 51,19% 48,81% Concorrenza Auto NO 18,04% 81,96% SI 24,46% 75,54% Totale 31,21% 68,79% Marzo

14 WEB: Lead Capture optimize sem/ses (digital direct marketing) Brand National campaign (ex Giulietta DE) Brand area focused campaign (ex Milano Mito campaign) Fonte: Netpop Research Italy 2009 Dealer Campaign (ex FAV frankfurt sept campaigns) Search engine Geo-localization capability gives opportunity to invest on-line at national level, at local (area/city) and at dealer level with more specific promotional activities Marzo

15 Lead Management From lead capture, treat lead, qualify, book appointment, dispatch, and process at the dealer to monitor and manage with Sales Reps. WEB Corporate Web campaign SES/ Landing page Leads Capture Inbound Calls DM Campaign Governance (KPIs) Lead Capture Leads Qualification (Prospect) Sales on Leads Leads Profiling Qualified leads on total leads Leads Dispatching Leads managed within service level Customer (lead) satisfaction Sales Tracking Customer/Leads Feedback Dealers Reporting Marzo 2011

16 NetMining and Lead Management On line Profiling Lead Management Internet users Key elements: On-line scoring based on Attract Traffic Conversion Marketing Lead Generation Sales Behavioural Targeting navigation pattern traced using existing site page tags Dynamic registration for action forms triggered by on-line score to capture leads Lead Processing through: lead treatment, visit booking, disptaching and closure tracking Marzo

17 Shopper Feedback Active management of pipeline What is it? Active management of dealer sales pipeline by following up with all prospects that shopped at the dealership and coaching salesman to understand and react to shopper feedbacks Relevant focus Shift done What you get? Monitoring and improving of dealer traffic and sales process Traditional focus Why and how many shoppers rejected What actions are required to make undecided shoppers buyers Shopper profile and cross shopping considerations Showroom traffic Undecided (win back) Rejecters (lost) Buyers (won) Increased Win-back Sales Marzo

18 Shopper feedback Impact on Sales Shopper Feedback ensures 100% follow-up on prospects. The positive benefit is an increased win-back rate Closure rate on undecided shoppers 3 months after proposal date 4,8% Shopper Management increase closure rate of undecided 2,4% + 100% Not Processed by Shopper Feedback Processed by Shopper Feedback Sales tracked on processed shoppers are 50% incremental Marzo

19 Rejectopn rate Shopper Feedback Impact on rejection rate 42% 1) Shopper Feedback based on site coaching and dealership management of salesmen improves NPS. +36% 2) Improved NPS reduces Rejection Rate and therefore minimizes lost sales 35% 30% NPS vs Rejection Rate Dealers with NPS >50% decrease their rejection rate by 30% Potentially increasing their sales by 20% 25% 20% 15% 25% 30% 35% Shopper 40% NPS 45% 50% 55% Results FGA Italy Gen-July 2010, dealers with more than 100% interviews and that recorded more than the expected number of offers. Top 3) Can help sustaining overall Customer satisfaction (NCBS ranking AR Italy) Avr Bot Marzo

20 Shopper Feedback real time Marketing Intelligence Collecting Shopper feedback we can monitor the traffic volume and the profile of our potential customers Mito Shopper Profile Marzo

21 Customer Feedback: Sales and Service In 2007 we redesigned the program to: Provide faster and transparent customer feedback to dealers Refresh concept from long term loyalty to shorter term business opportunity through word-of-mouth SEMPLICE, VELOCE E TRASPARENTE Sales - Quanto sei soddisfatto dalla tua esperienza in concessionaria? - Raccomanderesti la concessionaria? DETRACTOR? PASSIVE? PROMOTER? 1 Cosa avrebbe dovuto fare la Concessionaria per migliorare la tua opinione? Cosa avrebbe dovuto fare la Concessionaria per ottenere un 10? Qual è l aspetto che hai apprezzato maggiormente? - Ti hanno proposto una prova su strada della vettura? NPS = % Promotors - % Detractors Marzo

22 Customer Feedback: Sales and Service Processing the open ended questions on what should we have done to deserve a stronger recommendation? we can identify the priorities in the eyes of the customers prezzo tempi_consegna Informazioni Gentilezza e Competenza modalità di consegna burocrazia, organizzazione, 2trim2010 5,3% 7,0% 3,8% 7,7% 3,1% 3,0% 1trim2010 6,8% 7,3% 3,6% 8,6% 3,9% 3,8% 4trim2009 4,9% 5,3% 3,8% 7,2% 1,9% 3,6% 3trim2009 3,6% 5,2% 3,7% 6,3% 2,5% 2,8% 2trim2009 3,7% 5,1% 2,8% 6,2% 2,0% 1,8% 0,0% 5,0% 10,0% 15,0% 20,0% 25,0% 30,0% 35,0% 40,0% Marzo

23 % volume vendite in ambito Customer Feedback: Sales and Service INDICE NPS ( -100% 100% ) Totale DEALER = 292 CON ALMENO 10 INTERVISTE media mercato 62.8 % best performers 87.4 % SOTTO LA MEDIA MERCATO: 130 dealer SOPRA LA MEDIA MERCATO: 162 dealer 44,5 %volume di vendite 28,50% 55,5 %volume di vendite 32,40% 21,60% 11,10% 0,30% 0,20% 0,80% 0,60% 1,50% 2,90% dispersione indice N Dealer ( ) ( -5.9 ) ( -5.9 ) ( 5.3 ) ( 5.3 ) ( 16.5 ) ( 16.5 ) ( 27.7 ) ( 27.7 ) ( 38.9 ) ( 38.9 ) ( 50.1 ) ( 50.1 ) ( 61.3 ) ( 61.3 ) ( 72.5 ) ( 72.5 ) ( 83.7 ) ( 83.7 ) ( 94.9 ) Marzo

24 CE & CRM Sales Current State & Potential The Contribution of CRM Sales as a % of Sales to Retail Customers grew year over year but is still half of it s potential 30% 25% Target value 25% 20% +10% p.ts 15% 12,50% 15% 10% 8,70% 5% 1,10% 2,30% 4,90% 0% The turning point was in 2008, when we started providing DLR CE&CRM Services to dealers supported by on site coaching: this increased the adoption of DM and Dealer Pipeline Management (Shopper Feedback). Potential target is 25% (the performance of DRL CRM Services heavy users is 25-30%!) 24

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