Klasselotteriet - InterDirect Network

Case presentation
Klasselotteriet
Tomas Gorrissen
24-05-2011 / Presentation / 1
About Responsive
Responsive
How we work….
Who we work with….
19 employees
Founded in 2004
Network based
Broad experience from agencies and large
companies
We maximise the value of our customers’ databases
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Klasselotteriet
About the company
Klasselotteriet is the oldest lottery in Denmark.
Klasselotteriet is more than 250 years old
Owned by the state and has since 1992 been
a joint stock company.
The 1990s were characterized by stagnation
and negative growth
Klasselotteriet was marketed by the principle
”Same procedure as last year”
It became crucial to rethink the approach - and
the stagnation formed the basis of a new
vision:
Klasselotteriet to be 100 % electronic!
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Klasselotteriet
Market Share
12,00%
Other players
on the marked
Lotterier,
tal- og skrabespil
i alt
10.000
10,00%
Klasselotteriets
Klasselotterietandel
8.000
Sale mio. kr.
8,00%
6.000
6,00%
4.000
4,00%
2.000
2,00%
0
0,00%
2001
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2002
2003
2004
2005
2006
2007
2008
2009
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Klasselotteriet
Annual Return on Investment
Brand attractiveness
Profit
Contact prices
Creative strength etc.
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Klasselotteriet
Integrating all Medias
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Klasselotteriet
Sales Modeling
Media Channels/
Investment
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Isolation in each
channel has an
impact on sales
ROI in each
channel
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Klasselotteriet
Problem
We can measure what is generating sales
We can not measure how our campaigns are affecting customers who
are not buying
Eg. DM to 100 but only 2 buys
What affects the two who buy and what holds the
98 back from buying?
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Klasselotteriet
Solution
Calculation of the CLV of every customer every month
What does it mean to:
CLV
It is possible to
measure all effects
of Klasselotteriet
integration with their
customers
Win
To talk with
Customer
Service
To receive a DM
Not to win
JAN
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FEB
MARCH
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Klasselotteriet
Focus on Customer Lifetime Value
• How do the marketing efforts affect purchase, behavior and CLV?
• It is now possible to measure the impact of the efforts made by the
companies in order to influence customers to buy their products.
Overall objective: To increase CLV through the marketing efforts
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Klasselotteriet
Process
Analysis
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Set-up
CLV-model
Set-up
CLVOptimisation
Operation
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Klasselotteriet
Working with CLV
Ranking of customer after CLV
80
70
Focus on maintain
60
50
40
30
Focus on increase
sale
No focus
20
10
0
10
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20
30
40
50
60
70
80
90
100
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Klasselotteriet
Working with CLV – likelihood to buy
Ranking of customers after likelihood to buy
80
70
60
50
40
30
20
10
0
10
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20
30
40
50
60
70
80
90
100
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Klasselotteriet
Working with CLV – customer profile
Ranking of customers after customer profile
80
Some customers who do not
buy that much, have the same
profile as customers who do
buy a lot. Try to make this
group buy more
70
60
50
40
30
20
10
0
10
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20
30
40
50
60
70
80
90
100
© Responsive
Klasselotteriet
Trigger-based dialogue
Integrating the Lifetime Value Scoring with the Marketing Automation System
Trigger: The customer’s behavior indicates that
the customer is leaving. Customers with a high
degree of CLV:
Activates a customer retention
programme
Trigger: The customer’s behavior indicates, that
the customer is prepared to spend more:
Activates an additional sales
programme
The rest of the customers will in addition to the
communication based on segmentation, receive
communication that match their needs and wishes
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Klasselotteriet
Results
Illustration of an outcome:
Customers with a high degree of churn
probability. A halving of customer decrease
compared to the test group.
Dispatching of additional sale letters –
solely to customers with the highest score.
ROI is increased by 5 times.
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"It is not the strongest of the species that survive,
nor the most intelligent,
but the one most responsive to change”
Charles Darwin (1809 - 1882)
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