The courier
Client DHL Malaysia
Programme Rank-Up
Membership 20,000 companies
Launched January 2005
What prompted a fresh look at CRM?
The DHL Rank-Up programme was jointly developed in late 2004 by OgilvyOne and DHL, to offer a structured relationship marketing framework, targeting existing customers. It was a concerted attempt to ivated, from top management to sales, marketing, operations (couriers), customer service and even credit control, that made this programme a success.
Client DHL Malaysia
Programme Rank-Up
Membership 20,000 companies
Launched January 2005
What prompted a fresh look at CRM?
The DHL Rank-Up programme was jointly developed in late 2004 by OgilvyOne and DHL, to offer a structured relationship marketing framework, targeting existing customers. It was a concerted attempt to ivated, from top management to sales, marketing, operations (couriers), customer service and even credit control, that made this programme a success.
More importantly, success can be attributed to commitment. In the words of DHL's own clients, it was the first time sales and marketing truly worked together to deliver.
It was also critically essential to develop and agree on metrics to measure the success of such marketing activities.
Tip to marketers CRM is not the territory of advertising and promotions or marcomms managers. Very often, it is the domain of CEOs and CFOs. Agencies need to know who they want to talk to.
Start small and simple. Focus on using all touchpoints to capture the most relevant information. Think about how you want to use this data before asking your customers for it.
The same rules in communications apply in direct and CRM. Listen more, talk less. Invest at least between 10 to 15 per cent of your budget in measurement and analytics.
OgilvyOne Malaysia
The moisturiser
Client SK-II
Programme Crystal Club
Membership 290,409
Launched 2002
What is the Crystal Club about?
Over a number of years, through the Crystal Club programme, SK-II has collected enough information about the people using their products to be able to talk authoritatively on the subject. Using this knowledge, the SK-II marketing team is now undergoing a review of the programme and looking at how improvements can be made to benefit themselves and their customers.
How does it connect with consumers?
The data collected from customers is geared towards ensuring that past purchases are known, as is the likelihood of purchasing new product ranges as they become available. The database is robust and allows the data to be segmented in a number of key ways. With a solid infrastructure in place, SK-II can manage both customer retention and churn, and has been able to set meaningful targets.
The litmus test of programmes such as this is points redemption. For SK-II's Crystal Club programme, more than 1.2 million points were redeemed between June 2005 to June 2006.
From the initial point of contact with 'beauty consultants' (rather than just sales assistants) who have been thoroughly trained in how the product benefits consumers, to the final experience with the products, customers are assured in the knowledge that the offers made and the information given to them is tailored to their own specific profiles.
SK-II is looking to streamline ongoing communication via new styles of materials to allow for increased personalisation.
This is aimed at increasing customer confidence that they are being well looked after by SK-II, and that their personal beauty regimen is understood. The relationship grows and becomes more personal over time, and is one of the key reasons people become evangelists for the products and the brand.
What lies behind its success?
A good, integrated data platform and data analysis, accessible to everyone who needs to input, use or analyse the data. Even the agency has access to the system, allowing instant access when campaigns and strategies are being planned.
A knowledgeable customer-facing team is crucial in building trust with the brand. Training is therefore key.
All interactions with the brand are mapped out, ensuring that each of the team players knows exactly what to do at each point. This ensures that nothing is missed in terms of data collection, follow-up and delivery.
Finally, nothing can overstate the importance of trust. The people who use SK-II trust the product, the staff and the results. They recommend it to others. Money can't buy this kind of behaviour. It ensures that people remain loyal customers — which every company implementing a CRM programme is ultimately aiming for.
Tip to marketers It is impossible to change an organisation in one go — break projects into achievable sections and give 100 per cent to everything you tackle.
Arc Worldwide Asia-Pacific
The toy store
Client Toys R Us
Programme Star Card
Membership 500,000
Launched 2002
How important is the Star Card?
The Toys R Us Star Card customer loyalty programme is a key element in the company's marketing mix.
It is designed to connect better with customers, drive greater customer loyalty, increase shopping frequency and spend, and gain greater share of wallet.
The key highlights of the programme are simplicity; full integration of different media and marketing elements; continuity; complete focus on creating greater value for the customer and innovative promotions. Every element is also constantly measured, analysed and improved upon. In addition, the multi-country database allows members to use the Star Card across Hong Kong, Singapore, Malaysia and Taiwan, with plans to extend the programme to other markets such as Thailand, the Philippines, Macau and Shanghai.
Why was a loyalty programme needed?
Most people tend to buy toys only during Christmas and school summer holidays. The average shopping frequency is thus two to three times a year, leading to low sales periods during the rest of the year.
The size of the toy retail market has been shrinking gradually over the years as kids grow up faster and move into electronic and other forms of recreation. The downward spiral in the economy between 2001 to 2003 also caused parents to reduce their spending on toys.
At the same time, competition is increasing from toy sections in department stores, supermarkets, high-end boutique toy stores and low-priced street vendors.
The objectives, therefore, were to increase shopping frequency and drive sales throughout the year, not just in peak months, as well as to grow spend among loyal customers. In order to create a competitive differentiation, Toys R Us also aimed to create greater involvement with its customers.
How was it set up?
One of the first steps was to ensure anyone could become a Star Card member, by filling in a simple form and making a minimum one-time purchase of HK$200 (US$26), or the local currency equivalent, at any Toys R Us store.
Benefits of membership included points which could be redeemed for reward coupons; exclusive savings on certain products; personalised birthday cards and coupons for members' children; and member priority during special seasonal promotions such as the Star Wars Midnight Sale and clearance sales.
The marketing and communication mix focused on full integration, with all elements carrying the same message and feeding into each other. Instore, this included elements such as membership forms, Star Ambassadors, posters, clear signage describing benefits and offers, and Star coupons placed on shelves and at the cashier.
What do members get out of it?
Reward statements are sent out every four months, with a points update and reward coupons, generating a significant uplift in sales whenever mailed.
Summer and Christmas catalogues featuring the hottest toys of the season are mailed directly to members' homes, while regular monthly e-newsletters, segmented by demographics and purchase behaviour, focus on popular toys, great deals and the latest offers.
The Toys R US website, which has a special Star Card section, is also promoted through regular email and online advertising.
Reminders for special promotions are sent out via SMS, while a Star Card members' hotline and fully-fledged call centre addresses enquiries, complaints, points updates, address changes, and so on. Lastly, special events are organised for members' kids, such as sports training, Harry Potter readings and Halloween fashion shows.
How has it impacted sales?
Since its launch, the Star Card has acquired close to 500,000 members in Hong Kong, Singapore, Taiwan and Malaysia.
It has generated sales of more than US$62 million by increasing shopping frequency and spending, generating significant incremental sales. It has also attracted potential partners and helped the company develop a more customer-focused culture.
Tip to marketers Create real value for the customer at every touchpoint, with every communication and every promotion.
Spread the CRM culture within the organisation; involve every function; get top-level commitment and make CRM goals part of the company's business goals. Make CRM part of the company's DNA, and tie the CRM strategy to key business drivers.
Treat your customer database as a precious company asset and integrate it with your sales system.
Toys R Us
The airline
Client Garuda Indonesia
Programme Garuda Frequent Flyer
Membership 125,000
Launched 1999
Why was the CRM plan reviewed?
The original Garuda Frequent Flyer (GFF) programme, introduced in 1999, had only 60,000 members and a limited number of partners. We identified the problem as a lack of an effective, targeted CRM programme.
Focus group discussions with existing GFF members indicated that they were unfamiliar with the benefits and redemption procedures, due to a lack of timely and easily understandable marketing communications materials. Research indicated that 90 per cent of members had never redeemed their mileage. We calculated that GFF members accounted for five per cent of Garuda's flown revenue. It became obvious that there was a need to retain customer loyalty, acquire new members, and, more importantly, stimulate usage among the existing and most profitable members.
How was this remedied?
The revamp of the GFF programme began with a complete overhaul of all customer communication collateral, including a new website that made it easier for members to calculate and redeem their mileage points. A new four-tier membership structure was introduced, which better reflected the mileage distribution of customers and allowed for more effective segmentation and targeted communications.
Data mining was carried out for a deeper understanding of the current customer base and allowed us to differentiate marketing based on customer value and contribution to Garuda's revenue.
This meant that the bulk of Garuda's marketing budget would be spent on its highest potentially profitable customers. Gold and Silver members, who together contributed 66 per cent of revenue (compared to just 33 per cent in contributions from Platinum and Blue members), were more frequently and aggressively marketed to to encourage and reward travel. Platinum members, while the most valuable and lucrative group, were already frequent travellers, hence it was only necessary to maintain a relationship with them. They were targeted less frequently, with high-end offers.
What have the results been like?
Within six months, membership increased to more than 119,000, of which 81,000 were active members. By the time the mailing of new membership packs had been completed, GFF had a total of 95,000 active members, with 12,000 having joined in the first three months of the relaunch. Marketing expenditure to revenue ratios is now at a healthy 1:11, clearly demonstrating an example of effective CRM at work and the rewards it can reap.
Tip to marketers Very often the value of what is already on hand (existing customers) gets overlooked. And, even when it is recognised, most of the budget can get targeted at customers who already have a maximum-value relationship with the brand and not on customers with the most growth potential for the future.
Go Direct
The pet food
Client Effem Foods
Programme Cesar Club
Membership Not disclosed
Launched Early 2004
Why was the website relaunched?
Effem Foods Cesar, a premium dog food brand for small dogs, relaunched the Cesar Club website as part of an objective to achieve cost effectiveness in its CRM programme. The website was viewed as a key tool to increase membership, promote brand loyalty, and increase interaction between Cesar and its users, as well as among Cesar Club members.
Insights gathered before the revamp indicated that most small dog owners like to show off their pets and often treat them as children. These dog lovers also tend to socialise with other dog owners. With this in mind, Proximity Singapore developed the Cesar blog — the first of its kind in Asia for a dog food brand and a 'Dog of the month' competition in which users could vote for what they thought was the best-looking dog of the month.
Membership acquisition was achieved via monthly e-newsletters, with a Cesar pack sent to new members. Personal particulars of members and detailed information about their dogs were gathered. In addition to this, members also had the ability to update the information to ensure database integrity. The aim was to maintain an open communication and relationship.
Cesar Rewards, meanwhile, is a recent initiative that rewards members with premiums through an exchange of Cesar tray lids. This creates brand loyalty through frequent purchase.
What happened next?
There is a constant stream of visitors to the website and the blog. Participation in the dog of the month contest and Cesar Rewards has been strong, and because of this membership has steadily increased.
Procedures are in place to ensure that the trial Cesar pack is quickly sent to new members, while feedback and enquiries are responded to promptly.
An online module was also developed to allow staff to access members' database in real-time.
Further initiatives were also developed for a more holistic customer relationship, such as ad hoc online promotions that reward brand users and Cesar-sponsored events for members and their dogs.
Deeper insights and feedback are often garnered from these events, where there is personal interaction between staff and Cesar Club members.
Tip to marketers The correct capture of a customer database is important for proper segmentation. This database should be easily updatable by staff or customers, to ensure that all personal particulars recorded are correct.
Proximity
It was also critically essential to develop and agree on metrics to measure the success of such marketing activities.
Tip to marketers CRM is not the territory of advertising and promotions or marcomms managers. Very often, it is the domain of CEOs and CFOs. Agencies need to know who they want to talk to.
Start small and simple. Focus on using all touchpoints to capture the most relevant information. Think about how you want to use this data before asking your customers for it.
The same rules in communications apply in direct and CRM. Listen more, talk less. Invest at least between 10 to 15 per cent of your budget in measurement and analytics.
OgilvyOne Malaysia
The moisturiser
Client SK-II
Programme Crystal Club
Membership 290,409
Launched 2002
What is the Crystal Club about?
Over a number of years, through the Crystal Club programme, SK-II has collected enough information about the people using their products to be able to talk authoritatively on the subject. Using this knowledge, the SK-II marketing team is now undergoing a review of the programme and looking at how improvements can be made to benefit themselves and their customers.
How does it connect with consumers?
The data collected from customers is geared towards ensuring that past purchases are known, as is the likelihood of purchasing new product ranges as they become available. The database is robust and allows the data to be segmented in a number of key ways. With a solid infrastructure in place, SK-II can manage both customer retention and churn, and has been able to set meaningful targets.
The litmus test of programmes such as this is points redemption. For SK-II's Crystal Club programme, more than 1.2 million points were redeemed between June 2005 to June 2006.
From the initial point of contact with 'beauty consultants' (rather than just sales assistants) who have been thoroughly trained in how the product benefits consumers, to the final experience with the products, customers are assured in the knowledge that the offers made and the information given to them is tailored to their own specific profiles.
SK-II is looking to streamline ongoing communication via new styles of materials to allow for increased personalisation.
This is aimed at increasing customer confidence that they are being well looked after by SK-II, and that their personal beauty regimen is understood. The relationship grows and becomes more personal over time, and is one of the key reasons people become evangelists for the products and the brand.
What lies behind its success?
A good, integrated data platform and data analysis, accessible to everyone who needs to input, use or analyse the data. Even the agency has access to the system, allowing instant access when campaigns and strategies are being planned.
A knowledgeable customer-facing team is crucial in building trust with the brand. Training is therefore key.
All interactions with the brand are mapped out, ensuring that each of the team players knows exactly what to do at each point. This ensures that nothing is missed in terms of data collection, follow-up and delivery.
Finally, nothing can overstate the importance of trust. The people who use SK-II trust the product, the staff and the results. They recommend it to others. Money can't buy this kind of behaviour. It ensures that people remain loyal customers — which every company implementing a CRM programme is ultimately aiming for.
Tip to marketers It is impossible to change an organisation in one go — break projects into achievable sections and give 100 per cent to everything you tackle.
Arc Worldwide Asia-Pacific
The toy store
Client Toys R Us
Programme Star Card
Membership 500,000
Launched 2002
How important is the Star Card?
The Toys R Us Star Card customer loyalty programme is a key element in the company's marketing mix.
It is designed to connect better with customers, drive greater customer loyalty, increase shopping frequency and spend, and gain greater share of wallet.
The key highlights of the programme are simplicity; full integration of different media and marketing elements; continuity; complete focus on creating greater value for the customer and innovative promotions. Every element is also constantly measured, analysed and improved upon. In addition, the multi-country database allows members to use the Star Card across Hong Kong, Singapore, Malaysia and Taiwan, with plans to extend the programme to other markets such as Thailand, the Philippines, Macau and Shanghai.
Why was a loyalty programme needed?
Most people tend to buy toys only during Christmas and school summer holidays. The average shopping frequency is thus two to three times a year, leading to low sales periods during the rest of the year.
The size of the toy retail market has been shrinking gradually over the years as kids grow up faster and move into electronic and other forms of recreation. The downward spiral in the economy between 2001 to 2003 also caused parents to reduce their spending on toys.
At the same time, competition is increasing from toy sections in department stores, supermarkets, high-end boutique toy stores and low-priced street vendors.
The objectives, therefore, were to increase shopping frequency and drive sales throughout the year, not just in peak months, as well as to grow spend among loyal customers. In order to create a competitive differentiation, Toys R Us also aimed to create greater involvement with its customers.
How was it set up?
One of the first steps was to ensure anyone could become a Star Card member, by filling in a simple form and making a minimum one-time purchase of HK$200 (US$26), or the local currency equivalent, at any Toys R Us store.
Benefits of membership included points which could be redeemed for reward coupons; exclusive savings on certain products; personalised birthday cards and coupons for members' children; and member priority during special seasonal promotions such as the Star Wars Midnight Sale and clearance sales.
The marketing and communication mix focused on full integration, with all elements carrying the same message and feeding into each other. Instore, this included elements such as membership forms, Star Ambassadors, posters, clear signage describing benefits and offers, and Star coupons placed on shelves and at the cashier.
What do members get out of it?
Reward statements are sent out every four months, with a points update and reward coupons, generating a significant uplift in sales whenever mailed.
Summer and Christmas catalogues featuring the hottest toys of the season are mailed directly to members' homes, while regular monthly e-newsletters, segmented by demographics and purchase behaviour, focus on popular toys, great deals and the latest offers.
The Toys R US website, which has a special Star Card section, is also promoted through regular email and online advertising.
Reminders for special promotions are sent out via SMS, while a Star Card members' hotline and fully-fledged call centre addresses enquiries, complaints, points updates, address changes, and so on. Lastly, special events are organised for members' kids, such as sports training, Harry Potter readings and Halloween fashion shows.
How has it impacted sales?
Since its launch, the Star Card has acquired close to 500,000 members in Hong Kong, Singapore, Taiwan and Malaysia.
It has generated sales of more than US$62 million by increasing shopping frequency and spending, generating significant incremental sales. It has also attracted potential partners and helped the company develop a more customer-focused culture.
Tip to marketers Create real value for the customer at every touchpoint, with every communication and every promotion.
Spread the CRM culture within the organisation; involve every function; get top-level commitment and make CRM goals part of the company's business goals. Make CRM part of the company's DNA, and tie the CRM strategy to key business drivers.
Treat your customer database as a precious company asset and integrate it with your sales system.
Toys R Us
The airline
Client Garuda Indonesia
Programme Garuda Frequent Flyer
Membership 125,000
Launched 1999
Why was the CRM plan reviewed?
The original Garuda Frequent Flyer (GFF) programme, introduced in 1999, had only 60,000 members and a limited number of partners. We identified the problem as a lack of an effective, targeted CRM programme.
Focus group discussions with existing GFF members indicated that they were unfamiliar with the benefits and redemption procedures, due to a lack of timely and easily understandable marketing communications materials. Research indicated that 90 per cent of members had never redeemed their mileage. We calculated that GFF members accounted for five per cent of Garuda's flown revenue. It became obvious that there was a need to retain customer loyalty, acquire new members, and, more importantly, stimulate usage among the existing and most profitable members.
How was this remedied?
The revamp of the GFF programme began with a complete overhaul of all customer communication collateral, including a new website that made it easier for members to calculate and redeem their mileage points. A new four-tier membership structure was introduced, which better reflected the mileage distribution of customers and allowed for more effective segmentation and targeted communications.
Data mining was carried out for a deeper understanding of the current customer base and allowed us to differentiate marketing based on customer value and contribution to Garuda's revenue.
This meant that the bulk of Garuda's marketing budget would be spent on its highest potentially profitable customers. Gold and Silver members, who together contributed 66 per cent of revenue (compared to just 33 per cent in contributions from Platinum and Blue members), were more frequently and aggressively marketed to to encourage and reward travel. Platinum members, while the most valuable and lucrative group, were already frequent travellers, hence it was only necessary to maintain a relationship with them. They were targeted less frequently, with high-end offers.
What have the results been like?
Within six months, membership increased to more than 119,000, of which 81,000 were active members. By the time the mailing of new membership packs had been completed, GFF had a total of 95,000 active members, with 12,000 having joined in the first three months of the relaunch. Marketing expenditure to revenue ratios is now at a healthy 1:11, clearly demonstrating an example of effective CRM at work and the rewards it can reap.
Tip to marketers Very often the value of what is already on hand (existing customers) gets overlooked. And, even when it is recognised, most of the budget can get targeted at customers who already have a maximum-value relationship with the brand and not on customers with the most growth potential for the future.
Go Direct
The pet food
Client Effem Foods
Programme Cesar Club
Membership Not disclosed
Launched Early 2004
Why was the website relaunched?
Effem Foods Cesar, a premium dog food brand for small dogs, relaunched the Cesar Club website as part of an objective to achieve cost effectiveness in its CRM programme. The website was viewed as a key tool to increase membership, promote brand loyalty, and increase interaction between Cesar and its users, as well as among Cesar Club members.
Insights gathered before the revamp indicated that most small dog owners like to show off their pets and often treat them as children. These dog lovers also tend to socialise with other dog owners. With this in mind, Proximity Singapore developed the Cesar blog — the first of its kind in Asia for a dog food brand and a 'Dog of the month' competition in which users could vote for what they thought was the best-looking dog of the month.
Membership acquisition was achieved via monthly e-newsletters, with a Cesar pack sent to new members. Personal particulars of members and detailed information about their dogs were gathered. In addition to this, members also had the ability to update the information to ensure database integrity. The aim was to maintain an open communication and relationship.
Cesar Rewards, meanwhile, is a recent initiative that rewards members with premiums through an exchange of Cesar tray lids. This creates brand loyalty through frequent purchase.
What happened next?
There is a constant stream of visitors to the website and the blog. Participation in the dog of the month contest and Cesar Rewards has been strong, and because of this membership has steadily increased.
Procedures are in place to ensure that the trial Cesar pack is quickly sent to new members, while feedback and enquiries are responded to promptly.
An online module was also developed to allow staff to access members' database in real-time.
Further initiatives were also developed for a more holistic customer relationship, such as ad hoc online promotions that reward brand users and Cesar-sponsored events for members and their dogs.
Deeper insights and feedback are often garnered from these events, where there is personal interaction between staff and Cesar Club members.
Tip to marketers The correct capture of a customer database is important for proper segmentation. This database should be easily updatable by staff or customers, to ensure that all personal particulars recorded are correct.
Proximity
