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priority A amp。Page 1 Page 2 Integrating All Direct Marketing Channels to Build Customer Loyalty A BMW Case Study Kay Madati, Relationship Marketing Manager BMW Arthur Middleton Hughes, VP for Strategic Planning M\S Database Marketing The DMA 84th Annual McCormick Place, Chicago Tuesday, October 30th 2022 10:00 AM – 11:15 AM Page 3 ?1950 2022 Brands built by mass advertising ?1985 2022 Database Marketing arrived, but not integrated with mass advertising. ?1996 2022 The Inter arrived, but not integrated with DBM or mass advertising ?2022 BMW brings them all together How brand marketing has evolved Page 4 ?BMW customers want: ?A realization of the brand promise ?Performance, safety, technology, innovation ?Recognition ?Service ?Information ?Convenience ?Helpfulness BMW Buyers Not Necessarily Driven by Price Page 5 Personal Profit from Purchase = a (usefulness of product) +b (perceived brand value) c (money cost) d (time or inconvenience) How BMW Buyers Make Purchase Decisions Page 6 ?Constructors People who build databases Merge/Purge, Hardware, Software ?Creators People who understand strategy Build loyalty and repeat sales ?You need both kinds! Two kinds of database marketing people Page 7 ?In 2022, BMW built a robust customer and prospect database designed to: ?Provide a prehensive 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 munication ?Secure BMW’s place in its customers’ lives by identifying which households are good targets for additional BMW purchases Situation Analysis Page 8 ?BMW now has a central system of measurement ?The BMW Report Center monitors munications 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 shopperowner 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 BMW Situation II Page 9 ?Allowing a full view of the BMW customer delivers smarter targeting and profitgenerating up sell and cross sell opportunities ?Which vehicle owners are best targets for credit cards? ?How can BMW card owners increase the lifetime value of the vehicle owners? ?Where are the pockets of our most profitable customers? ?Which customers will deliver additional revenue through financial services products after they have disposed of their BMW? BMW Situation III Page 10 ?Improve the effectiveness of marketing programs in the years 2022 – 2022 in order to: ?Return to BMW the cost of the database build ?Pay for database maintenance going forward ?Increase the revenue per customer over time ?Increase the profit per customer ?Increase the lifetime value of the bined BMW automobile and financial services customer BMW Database Marketing Goals Page 11 ? Consistent measurement and enhancement of BMW marketing programs ? Ability to prioritize prospects and customers based on the