Campaign Management and Customer Loyalty Strategies

Campaign Management

The process of planning, executing, tracking, and analyzing direct marketing campaigns throughout their entire lifecycle.

Marketing Campaign Manager

Person responsible for scheduling and overseeing customer-facing activities.

Successful Marketing Strategy

Elements that contribute to a winning marketing approach.

Steps to Develop a Winning Marketing Campaign

Actions to take when creating a marketing campaign.

Campaign Management Process

Steps involved in managing a campaign.

Segmentation

The process of dividing the target audience into distinct groups.

Marketing Communications (Marcom)

Targeted interactions between a company and its customers and prospects.

Integrated Marketing Communications (IMC)

Management and organization of all marketing communication tools.

Offer

Providing incentives to induce customers to buy or seek more information.

Campaign Objectives

Goals of a marketing campaign.

Campaign Budget

Allocation of resources for marketing activities.

Customer Development Strategy

Focus on potential high-value customers.

Retention Strategy

Focus on keeping existing customers.

Acquisition Strategy

Focus on attracting new customers.

Budgeting Methods

Approaches to allocating campaign funds.

Preset Budgeting

Increase the previous year's spending by a percentage.

Allowable Marketing Cost

Base budget on a minimum profit margin.

Competitive Parity Method

Match competitor spending.

Objective and Task Method

Allocate budget based on campaign objectives and costs.

Percentage of Sales Method

Allocate a percentage of next year's sales.

KPI

Use Key Performance Indicators to determine budget.

Lifetime Value

Budget based on predicted customer lifetime value.

Response Analysis

Calculation of campaign results.

Response Analysis (Back)

Projects final results, such as responses, inquiries, and leads, and analyzes these results across customer/market segments, product lines, etc.

Loyalty Program (LP)

A marketing process that generates rewards for customers, based on their repeat purchases.

Loyalty Program (LP Back)

Aims to increase customer loyalty by rewarding customers for doing business with the firm and is an important CRM tool to identify, award and retain profitable customers.

Objectives of Loyalty Programs

Goals that loyalty programs aim to achieve.

Objectives of Loyalty Programs (Back)

Increase customer loyalty. Gain more repeat business. Obtain consumer data for CRM. Build true (attitudinal and behavioral) loyalty. Efficiency profits (greater share of category requirements or retention). Effectiveness profits (better value proposition through learning). Value alignment.

Behavioral Loyalty

Observed actions that customers demonstrate toward a product or service.

Behavioral Loyalty (Back)

Example: repeat purchases.

Attitudinal Loyalty

The perception and attitudes a customer has toward a product or service.

Attitudinal Loyalty (Back)

Example: positive feelings, word-of-mouth.

True Loyalty

A customer showing both attitudinal and behavioral loyalty.

True Loyalty (Back)

Customer buys and has positive feelings towards the brand.

Efficiency Profits of Loyalty Programs

Ways loyalty programs make marketing easier and more efficient.

Efficiency Profits of Loyalty Programs (Back)

Scale: Accelerates purchase frequency. Longevity: Increases retention and lifetime duration. Switching Barrier: Lowers price sensitivity.

Loyalty Program Design Considerations

Factors to think about when creating a loyalty program.

Loyalty Program Design Considerations (Back)

Target customer, rewarded actions, program type, reward rate/structure, tiered system, redemption structure, additional rewards, program access, partnerships, and measuring success.

Impact of Loyalty Programs

Effects of loyalty programs on consumers.

Impact of Loyalty Programs (Back)

Can enhance perceived value, provide psychological/economic benefits, and influence usage levels and loyalty.

Consumer Loyalty (Oliver's Definition)

"A deeply held commitment to rebuy or repatronize a preferred product/service consistently in the future."

Consumer Loyalty (Oliver's Definition Back)

Can occur at cognitive, affective, conative, and behavioral levels.

Customer-Centric Approach

Business strategy focused on the customer.

Customer-Centric Approach (Back)

Aims to maximize customer satisfaction, loyalty, and advocacy.

Binary Classification Trees

A method used to determine which predictor variable best explains the outcome.

Binary Classification Trees (Back)

Algorithm calculates misclassification rates to separate the customer base.

Misclassification Rate

The rate at which something is incorrectly classified.

Misclassification Rate (Back)

Used in binary classification trees to determine which variable best explains the outcome.

Customer Selection Strategies

Strategies applied when firms want to target individual customers or groups of customers.

Customer Selection Strategies (Back)

Reasons for targeting include sending promotions or inviting customers to special events; smart targeting allows firms to spend resources judiciously and allows customers to receive relevant messages.