The BMW Report Center monitors communications 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
M\S Database Marketing
The DMA 84th Annual McCormick Place, Chicago Tuesday, October 30th 2001 10:00 AM – 11:15 AM
How brand marketing has evolved
1950 - 2000 Brands built by mass advertising 1985 - 2000 Database Marketing arrived, but
Two kinds of database marketing people
Constructors
People who build databases Merge/Purge, Hardware, Software
Creators
People who understand strategy Build loyalty and repeat sales
You need both kinds!
Situation Analysis
In 2000, BMW built a robust customer and prospect database designed to:
Provide a comprehensive view of the automotive and financial services BMW customer
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?
Campaign, response, and financial service data 190 appended individual and househoIII
Allowing a full view of the BMW customer delivers smarter targeting and profit-generating up sell and cross sell opportunities
Deliver short term, incremental revenue through opportunistic marketing programs
Increase customer loyalty through understanding and ability to deliver relevant, timely communication
BMW Buyers Not Necessarily Driven by Price
BMW customers want:
A realization of the brand promise
Performance, safety, technology, innovation
Recognition Service Information Convenience Helpfulness
not integrated with mass advertising. 1996 - 2000 The Internet arrived, but not
integrated with DBM or mass advertising 2001 BMW brings them all together
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
How BMW Buyers Make Purchase Decisions
Personal Profit from Purchase = a (usefulness of product)
+b (perceived brand value) - c (money cost) - d (time or inconvenience)
Secure BMW’s place in its customers’ lives by identifying which households are good targets for additional BMW purchases
BMW Situation II
BMW now has a central system of measurement
This allows BMW to view the full shopper-owner 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