Posts filed under ‘CRM’
How do you assess loyalty? What is loyal?
How do you assess what is working in a loyalty program?
Of course, the first thing to decide is how you measure success.
It is often suggested that a loyalty program is working if it accomplishes at least one of two objectives:
- clients are either holding onto their customers longer or,
- are getting them to spend more with the brand.
Kobie Marketing believes that there is only one variable for measuring loyalty – engagement.
“Engagement is a minimum threshold variable that can measure individual member’s contributions to the program’s bottom line. In other words, if a member has an actively engaged relationship with the brand and program, we should measure their contribution. If the relationship is passive, we say don’t include them in positive performance metrics.“
McKinsey in The Consumer Decision Journey discusses these different kinds of loyalty – active and passive:
“Of consumers who profess loyalty to a brand, some are active loyalists, who not only stick with it but also recommend it. Others are passive loyalists who, whether from laziness or confusion caused by the dizzying array of choices, stay with a brand without being committed to it. Despite their claims of allegiance, passive consumers are open to messages from competitors who give them a reason to switch.“
This suggests that we may need the reality of a harsher measure of loyalty in the arts and entertainment to move beyond the false expectations of a fickle passive loyalty. Much of the shadow audience can only be considered passively loyal and the audience attracted to one of your shows only when it is a hit is at best – passively loyal. Actively loyal supporters are more valuable as they will support the challenging rather than just the easy or safe bets.
I have seen it quoted we should measure audiences not by tickets, but by customers. The view above adds another qualifier to measuring audience loyalty to only actually counting those actively engaged.
14 October, 2011 at 1:06 pm Tim Roberts ARTS Australia Leave a comment
So simple, but this could be a great use of transaction data to quantify RFM
This may well be old news to some, but I just loved the simplicity and the subsequent actionability (is that a word?).
I want a ticketing system that offers such a simple KPI of engagement. Gotta copyright that! BUT, you have to start with data that can identify individual customers and build a history of transactions.
Hmmmm, I gotta try this out. Let me know if you do before I do.
Is Recency the Most Important Factor to Drive Engagement?
Oh, I like his name of the source too, Email Yogi: your guide to multi-channel enlightenment 
20 September, 2011 at 11:16 am Tim Roberts ARTS Australia Leave a comment
Fractured Atlas release Artful.ly – cloud based precursor to ATHENA
Artful.ly is a cloud-based event ticketing and relationship management solution for the arts developed by Fractured Atlas. Artful.ly is a hosted version of ATHENA – the open source software platform for the cultural sector that Fracture Atlas has been working on.
Fractured Atlas is a non-profit organisation that serves artists and arts organisations. Its programs and services offer vital support to artists and arts organizstions which it helps to function more effectively as businesses by providing access to funding, healthcare, education, and more.
“Artful.ly provides cloud-based event ticketing and relationship management for artists and arts organizations. Sell tickets, collect donations, track your patrons, and build your audience using a set of simple online tools. The basic service is free – we cover our costs through a modest $2 per ticket surcharge, which only applies to credit card sales processed via Artful.ly (free events and cash sales are free).“
A development to watch with interest.
14 September, 2011 at 4:46 pm Tim Roberts ARTS Australia Leave a comment
So you want a CRM solution for a small business?
Here is a quick review of just five of the increasing diversity of web based CRM solutions coming online. We just need to solve the integration of ticketing transactions and maybe we have an audience development solution for the arts and entertainment industries?
Salesforce Alternatives: 5 CRM Services for Small Businesses
- Zoho CRM – Free for up to three users; $12-per-user-per-month
- Landslide – Starting at $29 per user per month for up to five users
- SugarCRM – Starting at $360 per user per year
- Insight.ly – Free for up to three users and 200MB storage
- Stitch Labs – Starting at $12 per month for one user
12 September, 2011 at 12:51 pm Tim Roberts ARTS Australia 1 comment
The Influences of Mobile Commerce on Shopping Behaviour
Diane Greig Senior Partner @CultureSparks spotted this article: 4 Ways Smartphones Are Changing Consumer Shopping Behavior
“Two-thirds of smartphone or tablet owners have used their devices to make purchases and more than 80% have used them to help in the purchase decision.“
The L.E.K. Consulting Mobile Commerce Survey identified four trends that businesses should monitor:
- Price Harmonization:
- Deeper Customer Relationships:
- Social Media Influence:
- Flash Retailers:
Download the full Report online here>>
3 September, 2011 at 3:30 pm Tim Roberts ARTS Australia Leave a comment
The CRM Challenge: How do you explain to a traditional advertiser that it is over?
An amusing scene of exactly that challenge posted by a colleague from Madrid, Álvaro Sarmiento, on the blog AFORO COMPLETO
“It’s not me it’s you” Del marketing relacional al CRM
It is in English with Spanish subtitles.
22 August, 2011 at 11:22 am Tim Roberts ARTS Australia Leave a comment
How Can Nonprofits Switch to a Data-Driven Culture?
Beth Kanter an influential writer on technology and not for profits, discusses how organisations can evolve to a data driven culture. A data-driven organisation makes use of the wealth of data at its fingertips and as a result is characterised by objective decisions based on constant monitoring and measurement. No surprises, key to the process of successful evolution is leadership.
How Can Nonprofits Switch to a Data-Driven Culture?
Beth suggests four evolutionary stages of a Data-Driven Culture:
- Dormant
- Testing and Coordinating
- Scaling and Institutionalizing
- Empowering:
A case study of DoSomething.Org provides and example of a not for profit exhibiting the characteristics and work habits of a data-driven organization and moving into the “Empowering Stage”.
To finish there are four tips for an organisation to make the switch to a data-driven culture:
- Start at the top
- Make the case to improve your measurement practice
- Think big, but take baby steps
- Share stories
“I keep saying that the sexy job in the next 10 years will be statisticians,” – Hal Varian, Chief Economist at Google
18 August, 2011 at 1:48 pm Tim Roberts ARTS Australia Leave a comment
Bribery = Loyalty … NOT!
A nice reminder as to what loyalty is and what really encourages it, from Kathy Sierra on Hugh MacLeod’s GapingVoid.
Your customer won’t take a bullet for you
Some other thoughts on the subject of loyalty:
“Repeat business or behavior can be bribed. Loyalty has to be earned.” – Janet Robinson
“You don’t earn loyalty in a day. You earn loyalty day-by-day.” – Jeffrey Gitomer
And on the other hand, from the man who brought you the Net Promoter Score:
“Loyalty is dead, the experts proclaim, and the statistics seem to bear them out. On average, U.S. corporations now lose half their customers in five years, half their employees in four, and half their investors in less than one. We seem to face a future in which the only business relationships will be opportunistic transactions between virtual strangers.” – Frederick F. Reichheld The Loyalty Effect
16 August, 2011 at 3:13 pm Tim Roberts ARTS Australia Leave a comment
What are the top CRM trends for 2011?
In this small survey of expert opinion 2011 Trends Report: Customer
Relationship Management (CRM), FOCUS suggests seven major trends:
- Integration of CRM with all communications channels
- Social CRM adoption
- Increased use of analytics
- Integration with mobile devices
- Increased awareness over privacy of CRM data
- Migration of CRM products to the cloud
- Increased emphasis on customer lifecycle management
You will need to go through a quick registration process on the FOCUS site to access the paper.
15 August, 2011 at 12:47 pm Tim Roberts ARTS Australia Leave a comment
Some pointers on how to fix Customer Relationship Management
For about 15 years it has been hoped CRM that would support better one to one marketing, segmentation, targeting, customer analysis, busines decision management and let alone more effective and efficient customer service.
“Unfortunately, the reality did not meet the promise. According to a MIT Sloan School study, 55% to 75% of firms fail to meet the expected return on their CRM investments. Furthermore, research from marketing consultancy, CSO Insights, indicated that less than 40% of companies had end-user CRM adoption rates above 90% of full capabilities. Simply put, CRM has yet to deliver the goods.“
The MIT Sloan School Study makes some very salient observations:
“Most senior management teams have an unbalanced approach to managing marketing investments, and this is particularly evident in the case of CRM. They focus on the key resources in which they invest capital, such as technology, location and advertising, but ignore the commensurate investment of time, energy and talent to develop the capabilities required to leverage those investments.“
Despite the challenges the case for CRM is still compelling and we have learnt much to improve integration and implementation. Some best practices are detailed in the article:
- Align CRM to your Business Strategy
- Start small but don’t under-invest
- Ensure marketing is up to the task
- Don’t neglect the human dimension
Read more online in Strategy: How to fix Customer Relationship Management by Mitchell Osak.
31 July, 2011 at 8:28 am Tim Roberts ARTS Australia Leave a comment
