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 2001 10:00 AM – 11:15 AM
1950 - 2000 Brands built by mass advertising
1985 - 2000 Database Marketing arrived, but not integrated with mass advertising.
1996 - 2000 The arrived, but not integrated with DBM or mass advertising
2001 BMW brings them all together
How brand marketing has evolved
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
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
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
In 2000, BMW built a robust customer and prospect database designed to:
Provide 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, munication
Secure BMW’s place in its customers’ lives by identifying which households are good targets for additional BMW purchases
Situation Analysis
BMW now has a central system of measurement
The BMW Report Center 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 shopper-owner cycle from first point of contact, through sale and cross sale
The new marketing d
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