Turning Customers Into Loyalists

Profile-Driven Customer EngagementMarketing Data Warehouse

Canon U.S.A., Inc.2

Today

• The Customer Loyalty Decision• Database Development• Channel Management• 1:1 Communications• Analytics• Customer Satisfaction• Successes and takeaways

Canon U.S.A., Inc.3

Database Marketing At Canon

• Protect recent market share growth (Loyalty)• Differentiate based on customer needs & valuation• Share-of-customer, not just market share• More customer centricity• Greater inter-division cohesion

Canon U.S.A., Inc.4

How Canon Views Loyalty

• Increased customer retention = higher margins• Increased share of customer = workflow ownership• High satisfaction rates = leading indicator

Canon U.S.A., Inc.5

NOT a Game of Points & Rewards

• Expensive• Difficult to suspend• Can commoditize a brand• Can be plagiarized• Offend dissatisfied customers• Businesses do not run on points!

Canon U.S.A., Inc.6

Marketing Data Warehouse

• The sum total of customer LTV

Canon U.S.A., Inc.7

MDW Scope

• Design scope and phasing plan• Functionality requirements

– Product Marketing– Industry Marketing– Data Marts– Mail File Extracts– Reporting and Ad Hoc Analysis

Canon U.S.A., Inc.8

MDW Construction

• Customize the Marketing Data Warehouse• ID source data systems• ETL• Quarterly feeds process

Canon U.S.A., Inc.9

MDW Cleansing

• Standardize customer, company, dealer, product• Cleanse and purge data (not 100% automated)• Create best “master” record

Canon U.S.A., Inc.10

Channel Management

• Who owns the customer?• Can you be trusted with “my” customer data?• How will privacy and data integrity be maintained?• Prove it works (Dealer Advisory Council)

Canon U.S.A., Inc.11

Communications – The Message

• “News You Can Use”• Stage in life cycle determines

the message

Canon U.S.A., Inc.12

Communications – How

• Identify trigger points & event-driven messages• Identify behaviors to reinforce and to change

Canon U.S.A., Inc.13

Communications – Keys

• Customer relationship governance• Economically engage customers • Variability of content and co-branded call-to-

action -- Samples

Canon U.S.A., Inc.14

Closed-Loop

• Leads (cross-sell & up-sell)• Service issues• Satisfaction measurement and follow-up

Canon U.S.A., Inc.15

Profiling & Scoring

• Demographic, attitudinal and behavior based• Needs and value differentiation• Save, Retain, Grow• Requires discreet customer segments

Canon U.S.A., Inc.16

“Customer Centricity”

• You cannot inject customer insight into your communications through focus groups alone

• Survey• Survey again• Survey some more• And listen to customers individually

Canon U.S.A., Inc.17

Customer Satisfaction

• An “early warning” system• Continuous listening• Low SAT scores indicate possible defection• Need strong, effective feedback loop

Canon U.S.A., Inc.18

Successes – Not Just Loyalty

• Single source of cleansed data• Communications cohesion• Ongoing satisfaction effort• Leverage print advertising

Canon U.S.A., Inc.19

Successes

• Service issues identified• Incremental revenue• Dealer buy-in

Canon U.S.A., Inc.20

Takeaways

• Give customers an active voice• Consider internal customers, too• Bring sales inside the tent• Don’t fail to measure what's hard to measure• IT must understand the business context

Canon U.S.A., Inc.21

Takeaways

• Carefully manage business priorities and feasibility trade-offs

• “Easy, cheap and important”• Metrics must be credible• Loyalty is demonstrated by customer ACTIONS

Thanks Very Much