COLONEL RELATIONSHIP MARKETING (CRM) BEST ... - RED Talks

COLONEL RELATIONSHIP MARKETING (CRM) BEST PRACTICES

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WHERE WE ARE TODAYMODULE

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GROWTH HACKINGTHE BUSINESS

DIAGNOSIS, HYPOTHESIS & TESTING: BEST PRACTICES

PERFORMANCEMARKETING

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GROWING YOUR AUDIENCE WITH PAID MEDIA

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DRIVING GROWTH WITHIN AGGREGATORS


CONVERSION RATE OPTIMIZATION (CRO)

FOR WEB & APP

MODERN MARKETING & AGILE TRANSFORMATION

3

WELCOME

All the awesome content… is private, confidential, proprietary to KFC and cannot be shared or repurposed…

HOW WE GROWTH HACK IS ANOTHER SECRET RECIPE…

Ashley TravisKFC Global

Director of Digital Customer Experience

Emily MoschetBraze

Sr. Strategic Business Consultant, Industry Solutions

Elliot GennardKFC UK & Ireland

Marketing Technology Manager

SAY HELLO TOTODAY’S PRESENTERS

TODAY WE’LL COVER

I N T R O D U C T I O N1

W H AT I S C R M A N DW H Y D O E S I T M AT T E R ?2

P R E - R E Q U I S I T E S F O R S U C C E S S3

B E S T P R A C T I C E SB Y C H A N N E L & B R A Z E4

M E A S U R E M E N T S U C C E S S S T O R Y5

INTRODUCTION

GETTING IN THE CRM MINDSET

§ Was it personalized?§ Did the sender “get you?”§ Did it meet you where you are with the brand?§ Did it have an offer?

T H I N K A B O U T T H E L A S T P U S H N O T I F I C A T I O N Y O U G O T

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OVERVIEW: WHAT IS CRM AND WHY DOES IT MATTER?

WHY DOES IT MATTER?

Using 1-2 words, how does CRM benefit your business?

Q & AS U B M I T A N S W E R S

CRM: WHAT IS IT?

KFC | 11

It’s a way of thinking about how you can make customer interactions more relevant in

EVERYmoment when you know who they are.

is a way to manage your relationshipsand interactions with customers

and potential customers.

CUSTOMERRELATIONSHIP MANAGEMENT

It’s not just email It’s not just transactional messages It’s not a software solution

CRM: WHAT IS IT?

KFC | 12

is a way to manage your relationshipsand interactions with customers

and potential customers.

CUSTOMERRELATIONSHIP MANAGEMENT

It’s a way of thinking about how you can make customer interactions more relevant in

EVERYmoment when you know who they are.

WHY IT MATTERSTO KFC

KFC | 13

C O L L E C T : Globally we are currently at

2% total sales vs.20% industry average

#IT IS ESSENTIAL

IN BEING ABLE TO GROW OUR OWN CHANNELS

O W N E D D E L I V E R Y : Globally we are currently at

4% total sales vs. 12% industry average

Getting our App on people’s phones,

GROWING OWNED CHANNELS MEANS:

Keeping it there

WHY IT MATTERSTO KFC

FOUNDATIONS JOURNEYSBEST

PRACTICES

WE’VE JUST GOTTEN STARTED

Most of the world has launched.

Welcome Birthday Abandon Cart

Playbook 101Training Videos

NOW IT’S TIME TO TAKE IT TO THE NEXT LEVEL

CRM

• Batch & Blast campaigns• All customers are the same• Finding a silver bullet

campaign• Set & Forget journeys

FROM

Customer Lifecycle Management

• Only infrequent newsletters go out to everyone

• Customers receive specific messages/offers based on data

• Continuous optimization • Journeys evolve as customer

behavior evolves

TO

CUSTOMER LIFECYCLE MANAGEMENT

E N G A G E M E N T & R E T E N T I O N

OBJECTIVE: Drive frequency and ticket with customers – give them continuous reason to come back.

Find HIGH VALUE ACTIONS to automate and optimize that habitualize using the app.

P R O F I TA B I L I T Y

OBJECTIVE: Once habitualized, create challenges & programs that keep driving revenue.

Identify CONSTRUCTS that move them up the lifecycle with the brand.

OBJECTIVE: Bring customers into the ecosystem (download, sign-up). Joining isn’t enough.

We must drive ACTIVE Acquisition (1st purchase), welcoming them to the brand

A C Q U I R E & A C T I V AT E

TACTIC Challenges, Surprise & Delight

TACTIC FOMO Deals

TACTIC Order ahead and get

TESTING IN CRM IS ABOUT

BASE HITS, NOT HOME RUNS

FOCUS ON HACKING IN 2 BUCKETS

EVERGREEN CAMPAIGNS:

Those that can eventually be

automated based on a customer segment

or data.

SCALABLE LEARNINGS:

Those from which the learnings can be

extrapolated to drivegreater insight

(promotions, timingsof sends, creative)

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PRE-REQUISITES:WHAT NEEDS TO BE IN PLACE?

PEOPLE: MARKETING

DATA & INSIGHTSTPM

TO SUCCESSFULLY EXECUTE CRM

H AV E C L E A R A N DR E A L I S T I C G O A L S

B U I L D A G O O D T E C H S TA C K

E S TA B L I S H A P L A N F O R T H E F U T U R E

E N S U R E A S T R O N G D ATA F O U N D AT I O N

IF CRM IS A HOUSE, TECHNOLOGY AND DATA

ARE THE CLAY AND BRICKS

JOURNEYS & CAMPAIGNS

Learning agenda to increase relevancy and performance

Powers the capability to execute

Enables the ecosystem

Create outstanding customer experiences across channels

TARGETING + PERSONALIZATION + TESTING

0, 1st, 3P DATA

TECHNOLOGY

A FEW RULES ON DATA MANAGEMENT

1

2

3

4

DATA COLLECTION FROM BASIC TO ADVANCED

M IN IMA L

Customer IDContact Info (email, phone, etc)

LocationIn-App Activity:

Engagement Activity (open, clicks)Transactions online (frequency, ticket)

PR E F E RR ED

Self-reported customer preferences:Communication channels

Favorite ContentAge, DOB, Favorites

Match in-store/DT to online transactionMatch aggregator behavior Second & Third party data

ADVANCED: RFM ANALYSIS

ADVANCED: RFM ANALYSISRF (M) BASED CUSTOMER SEGMENTS

Average Transaction Value varies negligibly and hence we’re driving Loyalty on Frequency and Recency

ADVANCED: RFM ANALYSISEACH SEGMENT HAS DIFFERENT OBJECTIVES

ADVANCED: RFM ANALYSIS

INCREASE FREQUENCY

INCREASE RECENCY

INCREMENTAL REVENUE+

CUSTOMER LIFETIME VALUE

AWARE

CONSIDER

PURCHASE

RETURN

RECOMMEND

+ =

TECHNOLOGY

TECHNOLOGY BUILDING BLOCKS OF CRM

EMAIL SERVICE

PROVIDER

MOBILE MESSAGING PROVIDER

MOBILEAPPLICATION

DIGITALASSET

MANAGEMENTSYSTEM (DAMS)

CUSTOMERDATA

PLATFORM

DATA FLOW BETWEEN PLATFORMS

EXTERNAL DATATHIRD PARTY, CONTEXTUAL, MEDIA+CONVERSION

OWNED DATAENGAGEMENT, TRANSACTIONS

BRAZE MESSAGE TEMPLATES, SEND ACTIONS

CMS/DAMCONTENT AND ASSET MANAGEMENT

MICROSERVICES LAYERDATA NAVIGATOR

MOBILE EMAIL WEB POS MEDIA

C360/CDPDATA REPOSITORY / IDENTITY MANAGEMENT

PERSONALIZATION ENGINELOGIC, RULES, AI ENHANCEMENTS

TESTINGDYNAMIC TESTING MANAGEMENT

INTERFACES

EXAMPLE TECHNICAL ARCHITECTURE

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BEST PRACTICESBY CHANNEL

EMAIL BEST PRACTICES§ Evergreen journeys based on Customer Lifecycle

§ Promotional messaging launching LTO’s and other new products

§ Maintaining share of attention in the inbox

W H AT S H O U L D E M A I L B E U S E D F O R

§ New Subscribers§ Delivery/Bounce Rate§ Click-Through Rate§ Revenue§ Opt-Out Rate

W H AT K P I s S H O U L D B E M E A S U R E D

EMAILACTIVITY

Scan through your inbox, pick the 1 email

that you most want to open.

Look at the content. Do you see any

dynamic content blocks? What personal

data might be driving that content?

Look for the personalization

components. Name, points balances,

what else?

SMS & MMS BEST PRACTICES§ Messages that are timely for mobile/geo context, such as proximity

to new store openings

§ Transactional, confirmations, driver tracking

W H AT S H O U L D S M S & M M S B E U S E D F O R

§ Opt-in rates

§ Open rates

§ Conversion rates

§ Opt-out rates

§ Revenue


SMS & MMSACTIVITY

Does the message have extra

components? (i.e. images, emojis)

If you got this message 3 days in a

row, what might you do?

Look at your text message queue.

Any messages from brands? Pick one.

What’s the call to action?

PUSH NOTIFICATIONS BEST PRACTICES

R E M E M B E R R AT § It must be RELEVANT – why are they getting this message (location, time of day,

personalized)§ It must be ACTIONABLE – they need to take an action now (purchase something,

opt-in, play)§ It must be TIMEBOUND – there is a reason you are invading their ‘personal

space,’ because it’s really important (last chance, offer)

W H AT S H O U L D I N A P P & P U S H N OT I F I C AT I O N S B E U S E D F O R

§ Opt-in/Out for push notifications

§ Open notifications

§ Conversion

§ Revenue


PUSH NOTIFICATIONSACTIVITY

Review the brand apps on your phone. Which was the last one that sent you a notification? Did you tap-through?

Which apps have you turned off notifications from? Why?

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BRAZE

Building a brand with CRM

EMILY MOSCHETSenior Business Consultant, Industry Solutions

AGENDA / OBJECTIVE

1. Customer Engagement in QSR

2. Importance of CRM

3. Effective Data Collecting with High Value Action Framework

4. Testing & Experimentation

Customer Engagement in QSR

32%

84%

48%

Exceeded revenue goals over the past 12 months, the least out of any industry

Are concerned with translating customer engagement metrics to revenue goals, the highest of any industry

Say acquisition is harder than retention, which tracks with QSR brands spending more on acquisition

A Divided Industry Still Serves Up

SMS

MOBILE PUSH

WEB PUSHCONTENT CARDS

IN-BROWSER MESSAGES

Out-of—Product Messages In-Product Messages

EMAIL

Base: Aggregated data from 5 billion global end users of 1,000+ brands over 12 monthsSource: Braze 2021 Global Customer Engagement Review

OTT/TV MESSAGES

IN-APP MESSAGES

And There’s a Difference Between Presence and Participation:

5.9XIncrease in Sessions Per User

4.7XIncrease in Customer LTV

2.4XLonger Retention

ACTIVATION

MONETIZATION

RETENTION

Why CRM?

What’s in it for them?

Go from knowing a customer,

understanding his/her preferences and

anticipating his/her wants and needs

Incorporate strategies to connect with

customers based on optimal content and

context for ease of discoverability and

purchasing

Create lasting connections to increase

retention and customer lifetime value

that resonate with different customers

Focus on the Customer. Create Seamless Experiences. Build Loyalty.

But where do we start?

To get to a desired output, you must focus on the inputs.

Retention & Loyalty Engagement Activation

+ =

Collecting & measuring the RIGHT inputs drives the most valuable outputs

(User signs up)

ACTIVATION ENGAGEMENT DORMANCY CHURNED

Traffic

Activation

Setup

AHA Moment

Habit Voluntary

Involuntary

(To site or APP)

Churned

(Uses core value)

(Establish a frequencyusing core value)

(Customer actively decides to not use product)

(Customer did not move from dormant to engaged for a

period of time)(Customer stops using product involuntarily)

RESURRECTION

Varia

ble

stat

es o

f usa

ge

Power

Core

Casual

High

Medium

Low

1. Start with The Customer Journey to identify goals

2. Seek high-value actions which drive downstream impact via growth levers:

Acquisition & Activation

Retention & Engagement

Profitability

What drives highest CLTV during onboarding?

Growth Objective

High Value Actions

Opts into Push

Opts into Rewards Push

Creates Account Acquisition & Activation

3. Hypothesize your high value actions

4. Analyze & compare: Customers opted into ‘Rewards Push’ are more valuable but

represent less than 10% of customer base

Push Permission Opt-In Rewards Push Permission Opt In

LTV

Purchases per User

LTV

Purchases per User

% of Users % of Users

No Opt-In Selected

LTV

Purchases per User

% of Users

$0.64

.09

4.49%

$28.54

6.23

14.91%

$95.40

20.95

8.63%

What drives higher CLTV by creating more engaged customers?

Growth Objective

High Value Actions

Promo Code Redeemed

Opts into Rewards Push

Re-order addRetention & Engagement


4. Analyze & compare:Redeeming promo codes has the greatest positive effect on sessions over time

0%

23%

45%

68%

90%

1 2 3 4 5 6 7 8 9 10 11 12

Reorder Add Promo Code Redeemed Reward Redeemed

Monthly Retention vs. Login Sessions (March 2020-Present)

PROMO CODE VS. NO ACTION RETENTION UPLIFT

15.6x

30.8x

63.2x

131.5x

70.5%

55.4%

36.9%

14.3%

$0

$120

$240

$360

$480

$600

Reorder Add Promo Code Redeemed Reward Redeemed

0%

10%

20%

30%

40%

50%

LTV vs. Custom Event % of Users

However, only 10% of customers have redeemed a promo code

What purchasing behavior signifies higher CLTV?

Growth Objective

High Value Actions

Profitability

Moves from casual to core diner

Makes 1st purchase within 3 days of sign up

Orders at Drive Thru


4. Analyze & compare:Driving frequency of purchase by +1X/month increases CLTV

Distribution of Purchases by Monthly Diner Type (March 2020-Present))

0%

25%

50%

75%

100%

2020-04-01 2020-08-01 2020-12-01 2021-04-01Casual Core Power

Casual User(1 purchase per month)

Core User(2-5 purchases per month)

Power User(5+ purchases per month)

Best Practices for QSR:

Customer Segmentation

What items do the top 20% ofcustomers keep ordering?

What times do the top 20% of spenders keep buying?

Chicken Little Chicken Sandwich Combo Diet Pepsi

Top 3 items purchased at a higher rate

Product Segmentation:

Which items are driving thehighest spend

customers lifetime? across

Which items are driving higher spend across the users lifetime?

Top 3 items that drive higher spend across the whole population

Famous Bowl 8 Piece Fill-Up Biscuit Side

Putting your data to work

Encourage high value actions through campaign tactics

Acquisition HVAs Retention HVAs ProfitabilityHVAs

Onboarding & Setup Surfacing Personalized Offers Driving Purchases and Upsells

Acquisition & Activation

Retention & Engagement

Profitability

Effective Acquisition: Drive Rewards Push Opt-In

New

Customers

Current Customers Opted into Only push

Current customers not opted into any

channel

SEGMENT 1 SEGMENT 2 SEGMENT 3

Critical cohort to drive volume of growth.

Onboarding

& Opt-Ins

BRAZE MESSAGES

Mobile Push Email IAM

Effective Engagement: Drive Reward Redemptions


Increasing Reward Redemptions & Opt-Ins

BRAZE MESSAGES

Mobile Push IAM

Redeems Promos

1x / Month

Has not redeemed Promo in past

30 days

Customers may be ‘promo’ trained, try new messaging tactics inclusive of rewards

Experiment with channels and promo

types (i.e. ‘Free’ vs ‘% Off)

Redeems Promos 3x / Month

Increasing Profitability


Increase Average Revenue Per Customer

BRAZE MESSAGES

Mobile Push IAMEmail

Famous Bowl8pc.

Fill-UpChicken Sandwich

Combo

Increase Quantity Purchased

Upsell to add Biscuit Side

Create Combo Package Awareness

Experimentation:

It all starts with ahypothesis…

Implementing a HVA Framework - Taking it from idea to executionYou’ve got to know what your HVA is before you can drive a user to do it

1. Set the direction 5. Drive user to complete HVA

2. Capture ideas & build your roadmap

3. Data availability & test type

4. Analyse HVAs

Repeat & Iterate

HVA Experimentation - Building a hypothesisWhat questions do we need to identify a High Value Action experiment?

Definition Example

WHAT Describe potential HVA Customers who purchase Favorite Bowls 2X month

WHO Identify user segments Customers who have purchased in the last 30 days

WHEN Lifecycle Stage Existing Customers

WHY Which business objective does this map to Profitability

HOW What tactic is used and what KPIs will they be driving Loyalty Campaign and increasing 3 Month CLTV

Different ways YUM Brands can reveal insights through experimentation

Eight Common Ways to Test

Persona Acquisition Parameters Devices Geography/Demo

Product Categories Feature Did X in Y Time Did X Y Times in Z

“Who is my target market?” “What acquisition sources should we focus on?”

“Do certain devices havebetter engagement than

others?”

“What are differences in Local vs. National segments”

“Does retention differ between types of items

ordered?

“If user uses xyz feature, are they more likely to be

retained?”

“If a user completes a certain action within a certain

timeframe are they more likely to spend?”

“Is there a frequency threshold of an action within a certain

time that leads to higher CLTV?”

CRM take aways for YUM! Brands today:

Segment effectively to test and optimize channels, messages, and

creative that resonate with different customers

Create an exceptional initial experience by getting to know your customer and what drives

high value behaviors

Collect the right data! Ensure customer-centric segmentationTest and Iterate on Messaging and High

Value Driving Actions

Enhance the curation and recommendation of products by

continuously learning and providing value

Thank You!

EMILY MOSCHETSenior Business Consultant, Industry Solutions

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CRM MEASUREMENTBEST PRACTICES

CRM MEASUREMENT

CRMPLANNING

CRM IN A CALENDAR CONTEXT

GLOBAL CONTROLALL CRM CUSTOMERS

Customers (90%) Control Group (10%)

Built on the same concept as simple control groups. Global groups are a group of users who don’t receive anything cross the channel/platform for measurements and experimentation uses.

• A simple concept that can be pushed harder to get deeper insight and analysis.

• Can be applied beyond the measurement of experiments to determine change over time, incrementally and uplift to a range of topics.

IN PRACTICEALL CRM CUSTOMERS

GLOBAL CONTROL GROUP (10%*)

CAMPAIGN GROUP(90%*)

NO CRM

*Example spilt UKI use 5% based on volume.

THE DETAILALL CRM CUSTOMERS

GLOBAL CONTROL GROUP (10%*)

CAMPAIGN GROUP(90%*)

VALUE

FREQ

UENC

Y

CLICK RATE

OPEN

RAT

E

HIGH

LOW

LOW HIGH

HIGH

LOW

LOW HIGH

KFC SUPER FAMS

FEASTING WITH THE

FAM

RE-ENGAGE

CORE CUSTOMERS INQUISITIVE

UN ENGAGED

BRAND SUPER FAN

TEMPTATION TEASERS

L

We need to ensure that all customer types are fairly represented in both the campaign group and the global control group.

To create a robust control we need to consider customer types and frequencies. Think representative customer types not just volumes.

ACROSS A CALENDAR2021

JAN

FEB

MAR

APR

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

Y E A R L Y C O N T R O L G R O U P 1

PERIOD CONTROL

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2

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3

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PERIOD CONTROL

1 2

C O N T R O L G R O U P P L A N N I N G

CAMPAIGN CONTROL

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CAMPAIGN CONTROL

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CAMPAIGN CONTROL

I M P O R T A N C E O F C O N S I S T E N C Y

IMP

OR

TA

NC

E O

F IN

TE

GR

ITY

1

1.

Supports in measuring the impact of CRM communications across a year.

Supports in measuring the impact of periods, seasons or windows.

Helps to understand if your single campaign has made a difference/achieved its objective vs the baseline or objective.

2

3

UKI INSIGHTS: YEARLY

0%

5%

10%

15%

20%

25%

30%

35%

40%

Purchase Rate

CRM Control

£0.00

£10.00

£20.00

£30.00

£40.00

£50.00

£60.00

£70.00

Revenue Per Customer

CRM Control

2.5

2.7

2.9

3.1

3.3

3.5

3.7

Jan Feb Mar Apr May Jun Jul Aug

Purchase Rate Of Control Group Linear (Purchase Rate Of Control Group)

Yearly insights that are determined from a one year global control group.

UKI INSIGHTS: SEASONAL

0%

5%

10%

15%

20%

25%

30%

35%

40%

Window 1 Window 2 Window 3 Window 4 Window 5

Customer Purchase Rate Control Purchase Rate

GUYS, WE’RE FLATTERED

CUSTOMERS WHO RECEIVE COMMUNICATIONS

CONTROL THAT DON’T RECEIVE COMMUNICATIONS

DRIVING SALES OVERNIGHTSeasonal insights that are determined from a seasonal or monthly global control group.

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Q&A

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SUMMARY

WE JUST COMPLETEDMODULE

01

MODULE03

MODULE07

MODULE08

MODULE06

MODULE02

GROWTH HACKINGTHE BUSINESS

DIAGNOSIS, HYPOTHESIS & TESTING: BEST PRACTICES

PERFORMANCEMARKETING

MODULE04

GROWING YOUR AUDIENCE WITH PAID MEDIA

MODULE05

DRIVING GROWTH WITHIN AGGREGATORS



FOR WEB & APP

MODERN MARKETING & AGILE TRANSFORMATION

SEO1 SEO2 SEO3

KEY TAKEAWAYS:

Identify where a customer is in their journey to the

brand to tailor messaging.

Remember “Creepy vs. Cool.” Use your own

experiences to craft ideas.

Ensure you have a control group and remember CRM

impact takes time.

CUSTOMER LIFECYCLE

MANAGEMENT

DATA & TECHNOLOGY ARE CRITICAL

MEASURING CRM TAKES RIGOR

95

ALL GROWTH HACKERS RECORDINGS WILL LIVE ON

REDTALKS.COM

Remember!

COMINGUP NEXT

MODULE07


FOR WEB & APP

7

THANK YOU!

COLONEL RELATIONSHIP MARKETING (CRM) BEST ... - RED Talks

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Transcript of COLONEL RELATIONSHIP MARKETING (CRM) BEST ... - RED Talks