Abstract:
A method for developing a comprehensive and integrated corporate marketing program to increase new customer acquisition and customer loyalty for consumer services corporations is disclosed. The method involves an integrated set of marketing, database and communication steps. The marketing portion of the process involves researching the given marketplace, creating branding tools, and developing loyalty-based products and programs in support of the marketing. The database portion of the process includes creation of a new database, populating the database with data from a variety of sources, and using the data in the new database to deliver the products and programs. The communication process steps include researching existing and potential communication channels, developing and selecting appropriate channels for the delivery of the products and programs, creating promotional and informational materials, and acquiring third party media to deliver the products and programs.

Description:
BACKGROUND  
       [0001]     This invention relates to a method for developing comprehensive and integrated marketing programs to increase new customer acquisition and customer loyalty for consumer services corporations (financial services, telecommunications, airlines, retail etc.), and particularly to a method of increasing new customer acquisition and loyalty through a comprehensive and integrated program of marketing, sales, product development, communication channel development, and information technology.  
         [0002]     In many world markets, competition among consumer services companies is keen and companies have particular difficulty in winning and maintaining the loyalty of customers. In the United States and Europe, consumer services companies have responded to the customer retention problem by implementing reward-based programs to provide incentives to customers to continue to do business with the company and increase their level of spending. Two common examples of these reward programs are airline and credit card point reward programs where points are accumulated based on the amount of money a consumer spends and these points are redeemable by the consumer for gifts, travel, or other such benefits.  
         [0003]     However, reward loyalty programs are limited in scope and address only a small portion of a company&#39;s overall customer loyalty issue. They also provide limited benefits to the related goal of new customer acquisition. An example of the limited scope of prior programs is that reward programs don&#39;t integrate with the marketing programs that develop and maintain a company&#39;s brand image. This lack of integration significantly limits the effectiveness of the programs and impairs the company&#39;s ability to achieve goals for increased loyalty and new customer acquisition, as a customer&#39;s loyalty or decision to purchase services from a company (become a customer) is related to their affinity to a consumer services company&#39;s brand. Additionally, the reward program should become a significant component of the program to enhance the company&#39;s brand image.  
         [0004]     Other examples of the limitation of prior reward programs is the lack of integration with new product development, salesperson incentive programs, customer database and management systems, sales strategy, communication development or brand spokesman strategy. This lack of integration significantly limits the effectiveness of these reward programs in achieving the goals of increased customer loyalty and new customer acquisition. The lack of a comprehensive and integrated program to increase customer loyalty and new customer acquisition can render a company&#39;s overall marketing efforts disjointed and unfocused in achieving these corporate goals.  
         [0005]     A typical large consumer services company has many departments and each has its own agenda, goals, and plans. Reward programs are a recent phenomena and have evolved as a temporary fix to customer loyalty issues. The programs typically developed ad hoc, without integration to the company&#39;s other programs and business processes. Furthermore, the goal of increased customer loyalty has been separated from new customer acquisition and “pigeonholed” as a simple rewards program; in fact, the method for achieving the two goals of increased new customers and customer loyalty have similar strategies, programs, and integration.  
         [0006]     Developing a comprehensive customer acquisition and loyalty program and integrating the program with a company&#39;s marketing, IT, sales, communication channel development, product development, and other systems is impossible without a specific integrated and comprehensive marketing program development method that is specifically focused at significantly increasing a company&#39;s new customer acquisition and customer loyalty. However, thus far no such method has existed. Thus, many consumer services companies would benefit from a new method for creating an effective new marketing program to increase customer acquisition and loyalty and integrating the program with their ongoing business activities.  
       SUMMARY  
       [0007]     According to the present invention, a method is provided to create, implement, coordinate, and maintain the marketing activities of a consumer services company to maximize new customer acquisition and customer loyalty. The method permits a consumer services company to implement a comprehensive and integrated process of marketing, communication channel development, sales, product development and programs (including rewards), and information technology to communicate and deliver new products and programs to customers and potential customers. The new products and programs provide valuable incentives to customers, increasing new customer acquisition and increasing customer loyalty to the consumer services company both in the short-term and long-term.  
         [0008]     The method of the present invention involves the implementation of multiple initiatives to develop a comprehensive new customer acquisition and loyalty program and integrate the program into the standard programs of the consumer services company. According to the invention, a market research program is used to define the company&#39;s major competitors. Customers and potential customers are interviewed about their needs and desires, how consumer services companies fulfill these needs and desires, and their degree of loyalty to any one consumer services company. The opportunities in the current market are analyzed by examining market growth and the level of competition in the market, and this market research is summarized by gathering the resulting data in graphs, charts, and text.  
         [0009]     Once the market research is complete, a market report is produced, collecting the results of the research. This report is used to generate a target strategic position for the company. The target position is determined with respect to the market and the company&#39;s customer relationships. Multiple strategic positions are possible for different segments of the target market. The method of the present invention involves steps for attaining the target position for the company.  
         [0010]     Branding tools are developed for the company to communicate to the public the company&#39;s message in attaining the target strategic position in the market. These branding tools may include a brand spokesperson, tag lines, logos, musical signature, promotions and other advertising methods. A set of new products and programs (including reward programs) is developed around the new message and corporate positioning, for the purpose of increasing new customer acquisition and customer loyalty.  
         [0011]     New information technology and operations systems are developed and implemented to support the new products and programs, regulating functions such as program enrollment, accrual of points and benefits, redemption of offerings, and customer service. Corporate sponsors (marketing partners) may participate in the development of new products, reward programs, and information technology as needed.  
         [0012]     To facilitate marketing of the new products and programs to potential customers, a new prospect database is created using data from customer referrals, acquired lists of potential customers, media outreach activities, and company seminars. Sales strategies are developed for marketing the new products and programs to the public. The new marketing initiatives are integrated into the company&#39;s existing products and programs so that the company&#39;s sales, operations, and customer service can accommodate both the existing products and programs and any new products and programs.  
         [0013]     A loyalty database is created to facilitate implementing of the new products and programs. The core customer data from the company&#39;s customer database is retrieved by mapping the customer database and specifying the customer data that is needed. An interface program and a transfer program are developed and used to transfer the core customer data from the customer database into the new loyalty database. Additional customer data that is needed but not found in the customer database is gathered by contacting customers.  
         [0014]     The core customer data is combined with the additional customer data to create a set of integrated customer data, which is transferred into the loyalty database using the transfer and interface programs. The loyalty database is then used to implement the loyalty-oriented products and programs, distributing information and materials to the customers using the communications channels described hereafter. The loyalty database is also synchronized with the company&#39;s other databases so that the set of integrated customer data is easily accessible for management reporting, marketing, product development, sales, market research, and other corporate uses, and is updated as the company&#39;s other databases are updated.  
         [0015]     To increase the effectiveness of the present invention, the company&#39;s communication channels are evaluated and updated. The available channels of communication in the company&#39;s market are identified, and the effectiveness of the company&#39;s ongoing use of the communication channels is reviewed and examined in relation to the needs created by the new products and programs. The appropriate communication channels are selected and developed for the new products and programs, as well as long term use to support new customer acquisition and loyalty programs.  
         [0016]     This is done by developing the capabilities and expertise of the Company to exploit certain communication channels owned by third party promotional media or by the Company developing new communication channels or media that it owns. After the selected communication channels are developed, they are used to inform the company&#39;s customers and potential customers of the loyalty-based products and programs. The use of the selected communication channels to promote the new products and programs is coordinated with the company&#39;s ongoing use of the communication channels to minimize customer confusion and create a unified communication program.  
         [0017]     The method for developing a comprehensive and integrated marketing program to increase new customer acquisition and customer loyalty can be implemented directly by a consumer services company or provided by a third party vendor with expertise in the field, on an outsource basis or consulting basis, or a hybrid system could be used. As new information on the successes and failures of the loyalty-based products and programs is gathered, the steps of the process described previously are repeated as needed to increase effectiveness and compensate for competitor and market changes. 
     
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0018]     Other features and advantages of the present invention will be apparent from reference to the following Detailed Description taken in conjunction with the accompanying Drawings, in which:  
         [0019]      FIG. 1  is a flowchart of the basic process of the present invention;  
         [0020]      FIG. 2  depicts the process of developing loyalty-based branding tools and new products and programs;  
         [0021]      FIG. 3  depicts the process of building the loyalty database, which contains the customer information used in marketing the new loyalty-based products and programs; and  
         [0022]      FIG. 4  depicts the evaluation and development of communication channels to inform customers and potential customers of the new loyalty-based products and programs. 
     
    
     DETAILED DESCRIPTION  
       [0023]     According to the present invention, a method is provided to create, implement and coordinate the marketing activities of a consumer services company to increase new customer acquisition and customer loyalty. These marketing activities implement a set of new products and programs designed to increase customer satisfaction based on market research. The marketing activities are integrated with a new customer database and selected communication channels to deliver the new products and programs to the company&#39;s customers and potential customers. The method allows a consumer services company to implement a customer loyalty program that is fully integrated with the company&#39;s core business and target markets.  
         [0024]     The method of the present invention operates in a consumer services company  100 , as depicted in  FIGS. 1 and 2 . Consumer services companies  100  useful in the practice of the present invention typically implement products and programs  101  using a customer database  102  and communication channels  103 .  
         [0025]     According to the present invention, a manager  104  gathers market research data  105  to assess the competitive positioning of the consumer services company  100  as depicted in  FIG. 2 . This manager  104  may be an individual or a group that is employed by the consumer services company  100  or that acts as an independent vendor. The manager  104  may also comprise a hybrid of company employees and independent contractors.  
         [0026]     To gather the market research data  105 , the manager  104  first identifies its major competitors  106 . Second, the manager  104  conducts interviews with customers  107  of the consumer services company  100  and with potential customers  108  to determine the customers&#39; and potential customers&#39; needs and desires, how the customers  107  and potential customers  108  fulfill those needs and desires, how competitors  106  fulfill these needs and desires, and the level of loyalty that the customers  107  and potential customers  108  have to the consumer services company  100  or one of its competitors  106 . Third, the manager  104  analyzes the level of opportunity for growth in the company markets  109  by examining the growth of the company markets  109  and the growth the competitors  106  have experienced in the company markets  109 . Fourth, the manager  104  summarizes the market research data  105  using graphs, tables, text, and the other reporting methods known in the art.  
         [0027]     The manager  104  uses the market research data  105  to create a market report  110 , and the manager  104  analyzes this market report  110  to generate a target position  111  for the consumer services company  100  in the company markets  109 . This target position  111  represents the position in the company markets  109  in relation to competitors  106  and relations with customers  107  that the consumer services company  100  seeks to attain.  
         [0028]     As depicted in  FIG. 2 , the manager  104  uses the target position  111  to develop a set of branding tools  112 . The branding tools  112  may be those known in the art, such as a brand spokesperson, taglines, and /or musical signatures  113 , logos  114 , promotions  115 , and other advertising tools  116 . The branding tools  112  are designed to facilitate the process of the consumer services company  100  reaching the target position  111 .  
         [0029]     The manager  104  develops a set of new products and programs  117  designed to act as incentives for the customers  107  and potential customers  108  to invest in and remain loyal to the consumer services company  100 . These new products and programs  117  work together with the branding tools  112  to cause the consumer services company  100  to reach the target position  111 . The set of new products and programs  117  may include reward programs based on the level of spending by a customer  107  in the consumer services company  100 , whole new lines of business (asset management or credit cards for insurance companies), or a redefinition of existing products (bundled telecommunications services). New programs might include direct sales of car insurance, special web service and club for VIP airline customers, financial seminars for bank customers, or other similar programs as are known in the art. The manager  104  also seeks to acquire corporate sponsors  118 , that is, third party marketing partners and individuals that provide a portion of the new products and programs  117 , as they are needed.  
         [0030]     The manager  104  then coordinates the development of information technology  119  necessary to implement the new products and programs  117 . The manager  104  may develop this information technology  119 , or it may be developed in part by the consumer services company  100  or the corporate sponsors  118 , as appropriate for the specific new products and programs  117 . The information technology comprises such things as applications, web-based clients, and servers. The information technology  119  tracks program enrollment, accrual of points, redemption of coupons and accrued points, as well as provides customer service and other aspects of the new products and programs  117 .  
         [0031]     Next, the manager  104  creates a new prospect database  120 , a database of information about potential customers  108  as depicted in  FIG. 2 . The information in the new prospect database  120  may come from referrals from customers  107 , acquired lists of potential customers  108 , media outreach programs  121 , seminars  122 , or other sources as are known in the art. The manager  104  structures the new prospect database  120  so that it may interact with the other databases of the consumer services company  100 .  
         [0032]     The manager  104  develops a series of sales strategies  123  that the salespeople  124  of the consumer services company  100  may use to market and sell the new products and programs  117 . These salespeople  124  may be employees of the consumer services company  100 , independent agents, or third party entities specializing in sales. The series of sales strategies  123  may include telemarketing  125 , online sales  126 , direct mail sales  127 , face-to-face sales  128 , or other sales strategies as are known in the art. The manager  104  also develops a sales incentives program  129  to reward salespeople  124  for successfully implementing the new products and programs  117 . The sales incentives program  129  may include commissions, rewards based on sales volume, and other rewards based on the loyalty and effectiveness of the salespeople  124 .  
         [0033]     The manager  104  must integrate the branding tools  112 , information technology  119 , and the new products and programs  117  with the existing business processes  130  of the consumer services company  100 . This integration allows the consumer business company  100  to manage the new products and programs  117  together with the existing business processes  130  to reach the target position  111  in the company markets  109 . This integration may include training for salespeople  124  and adding data from the sales incentives program  129  to databases used by the consumer services company  100 , as well as other known integration techniques.  
         [0034]     The manager  104  also develops a loyalty database  131  for the consumer services company  100  to track the participation of customers  107  in the new products and programs  117  in a series of steps as depicted in  FIG. 3 . This development can be done concurrently or subsequent to the steps for developing branding tools  112  and new products and programs  117  described above.  
         [0035]     The manager  104  first retrieves core customer data  132  from the customer database  102  of the consumer services company  100 . To accomplish this, the manager  104  maps the data structure of the customer database  102 , finding the places in the data structure where the core customer data  132  is kept. The manager  104  develops, or has developed by a third party, an interface program  134  and a transfer program  135  to extract the core customer data  132  from the customer database  102 . The manager  104  also gathers supplementary customer data  136 , that is, data deemed necessary by the manager  104  that is not found in the core customer data  132 , through direct or indirect contact with customers  107 .  
         [0036]     The manager  104  combines the core customer data  132  with the supplementary customer data  136  as depicted in  FIG. 3 , creating a set of integrated customer data  137 . The manager  104  enters this set of integrated customer data  137  into the loyalty database  131 , using the interface program  134  and the transfer program  135 . Redundant and unneeded information  138  is stripped out of the loyalty database  131 . The manager  104  also searches the loyalty database  131  for inconsistencies and omissions  139 , resolving the inconsistencies and omissions  139  through contact with the customers  107 .  
         [0037]     The manager  104  develops, or has developed by a third party, a process for updating the loyalty database  131  so that it remains consistent with the core customer data  132  in the customer database  102 . Optimally, this updating process is largely automated using techniques known in the database art. The manager  104  also develops, or has developed by a third party, a series of support procedures  140  to keep the loyalty database  131  secure and ordered. These procedures may include database performance monitoring, website tracking and redesign, network performance monitoring, redundancy and data integrity checking, and database security, as well as other such processes known in the art.  
         [0038]     The set of integrated customer data  137  is then used to disseminate the new products and programs  117 , as well as branding tools  112 , to the customers  107 . The manager  104  ensures that the loyalty database  131  is regularly updated so that it remains synchronized with the customer database  102 , the new prospect database  120 , and any other databases used by the consumer services company  100 .  
         [0039]     The manager  104  also updates the use of communication channels  103  by the consumer services company  100  in a series of steps depicted in  FIG. 4 . This updating can be done concurrently or subsequent to the steps for developing the loyalty database  131 , branding tools  112 , and new products and programs  117  described above. Possible communications channels include public relations  142 , direct mail  143 , seminars  122 , online communications  144 , advertising  145 , and newsletters and magazines  146 , or other channels known in the art. To accomplish this, the manager  104  conducts a communication research project  147  that identifies all communication channels  103  available in the company markets  109 , reviews the effectiveness of the use of each of the communication channels  103  in the past, and examines the new products and programs  117  to evaluate how they can be implemented through the communication channels  103 .  
         [0040]     The manager analyzes the results of the communication research project  147 , and chooses from the communication channels  103  a group of selected communication channels  148  necessary for implementation of the new products and programs  117 . The manager  104  develops the group of selected communication channels  148  to implement the new products and programs  117 . The manager  104  does this by creating information and promotional materials  149  to be disseminated through the group of selected communication channels  148  and by developing the long term capability to exploit third party media  150 . The manager may also develop company owned communications channels (company only use) and media (general public use including company).  
         [0041]     The group of selected communication channels  148  are used to inform customers  107  and potential customers  108  of the new products and programs  117 . The group of selected communication channels  148  is integrated with the ongoing use of the communication channels  103  by the consumer services company  100  to minimize the confusion of customers  107  from varying messages and media.  
         [0042]     The method of the present invention allows a consumer services company concerned with customer loyalty and market position to resolve these concerns through a comprehensive program designed to increase new customer acquisition and loyalty. Thus, the present invention has several advantages over the prior art. Although embodiments of the present invention have been described, various modifications and changes may be made by those skilled in the art without departing from the spirit and scope of the invention.