Swift Runner Sports Driving growth and profits through customer focused strategies
Ekeleme | Kohlitz | Powers | Shepelwich | Weeden
SITUATION ANALYSIS | OPPORTUNITY | OBJECTIVES BRAND STRATEGY | CRM STRATEGY | APPENDIX
SITUATION ANALYSIS
Incentive
Loyalty Program ($10 off)
Free Shipping (order over $75)
15% Discount (order over $100)
Invited/ No Response
$66.11
Received Email or Participant
$70.11
$69.11
$68.92
No Email or Not Invited
$63.02
$65.98
$66.47
OPPORTUNITY
OBJECTIVES Determine the running needs of each customer segment Increase frequency of purchase across all running demographics
Surviving Customers
Segment
% of Total Customers
Segment Value from Annual Spend
1/year
24%
$8.8M
2/year
11%
$8M
3/year
8%
$8.1M
4+/year
5%
$10.1M
1/year
40%
$14.6M
2/year
7%
$5.1M
3/year
4%
$4M
4+/year
1%
$2M
100%
$60.7M
New Customers
Totals
BRAND STRATEGY
Shift from being owners of avid to being owners of running
CRM STRATEGY
Increase share of wallet with customers Re-align our resources around our most valuable opportunity Identify additional revenue streams based on consumer insight
Functions of The CRM Cycle Product Development
Targeting and Marketing
Retention and Win-Back Customers
Sales
Superior Customer Experience
Run More Motivational Tool
Swift Runner Sports | For the active runner
Search
http://www.swiftrunnersports.com/runmore
RUN
MORE!
EMAIL: PASSWORD:
YO U ’ R E O N T H E R I G H T T R AC K ! TIME DISTANCE
RUN 1
RUN 2
RUN 3
RUN 4
8:15 1 MILE
7:58 1 MILE
7:57 1 MILE
7:42 1 MILE
KEEP LOGGING YOUR TIMES!
x
RUN MORE MOTIVATIONAL TOOL
Front End Input information on health status Personalized content specific to goals
MONTHLY INPUT-BASED EMAILS
Avid
8+ mi/wk Intermediate
4-7 mi/wk Casual
2-3 mi/wk New
RUN MORE MOTIVATIONAL TOOL
Back End Mining data to build algorithms and assign messaging Determine metrics of success based on conversion rates
Seasonal Marketing
Apparel Push Free Shipping
WINTER
Apparel Push Free Shipping
SPRING
SHOES
SUMMER
FALL
SHOES
Apparel Push Free Shipping
WINTER
Apparel Push Free Shipping
WHAT: Apparel Push SPRING SUMMER FALL Textrunners WHY: Avid purchasing habits SHOES
SHOES
Apparel Push Free Shipping
WINTER
Apparel Push Free Shipping
SPRING
SHOES
SUMMER
FALL
SHOES
Apparel Push Free Shipping
Apparel Push Free Shipping
WHAT: Shoe Push WINTEROn average shoes SPRING WHY: should Text beSUMMER replaced every 300 miles. SHOES
FALL
SHOES
rah, a S r Dea
Spring has arrived And so has our selection of the best running wear for the season.
FREE SHIPPING WITH EVERY ORDER Enter in the SWIFTSPRING code to redeem your free shipping at checkout.
SALE
3 DA YS O N LY ! E N D S M A RC H 5 T H . SHOP NOW
Loyalty & Referral
REFERRAL PROGRAM
=
$10
=
$25
=
$50
RUN MORE MOTIVATIONAL TOOL PRIMARY TARGET: CASUAL RUNNERS SECONDARY TARGET: ALL OTHER RUNNERS SEASONAL MARKETING TARGET: ALL RUNNERS LOYALTY & REFERRAL PROGRAM PRIMARY TARGET: AVID RUNNERS SECONDARY TARGET: INTERMEDIATE RUNNERS
20,000
Budget= $3MM 1,000,000
Loyalty Emails* Run More Tool Referral Emails* Monthly Incentive Emails* Seasonal Incentive Emails* Race Sponsorships
1,600,000
20,000 127,000 233,000
*Assuming $250 CPM
$71.8M
MINDSET AC T I O N
APPENDIX
Incentive Free Shipping (order over $75)
Average Order Size
Received Email
$69.11
No Email
$65.98
Incentive Loyalty Program ($10 off)
Average Order Size
Average # Orders
Participants
$70.11
1.1
Invited/ No Response
$66.11
0.85
Not Invited
$63.02
0.83
Incentive 15% Discount (order over $100)
Average Order Size
Received Email
$68.92
No Email
$66.47
Incentive Program Comparison Incentive
Loyalty Program ($10 off)
Free Shipping (order over $75)
15% Discount (order over $100)
Orders
13,661
3,456
2,397
Revenue/Order
$19.16
$11.23
$10.17
Cost
$53,020
$24,192
$35,955
Acquisition Costs
Incentive
Costs
Loyalty Program
Free Shipping
($10 off)
(order over $75)
$10 - ($10 x .32)* = $6.80
$7
15% Discount (order over $100)
$15 - ($15 x .32)* =$10.20
Response Rate
13,661 / 50,000 = .273
8,125 / 50,000 = .1625
7,375 / 50,000 = .1475
Acquisition Cost
$6.80 / .273 = $24.91
$7 / .1625 = $43.08
$10.20 / .1475 = $69.15
*accounting for 32% profit margin
Avid Runner Intermediate $97.68-$256.12 Runner Casual $44.81 Runner $10.79
Customer Segments
% of Customers
# of Customers
Yearly Spend Per Segment
1/year
64%
375,283
$23.6 mil
2/year
18%
103,472
$13 mil
3/year
12%
67,854
$12 mil
4+/year
6%
34,871
$12.1 mil
Totals
100%
581,480
$60.7 mil
2008 Customers Base: 581,480 Purchases/ Year
% of Customers
Survival Rate
% of Recurring Customers
% of New Customers in Segments
1/year
64%
39%
24%
40%
2/year
18%
59%
11%
7%
3/year
12%
71%
8%
4%
4+/year
6%
78%
5%
1%
Surviving Customers
New Customers
Totals
Segment
% of Total Customers
1/year
24%
2/year
# of Customers/ Segment
Customers X Annual Spend
Segment Value from Annual Spend
.24 x 581,480 = 139,556
139,556 x $63 =
$8.8M
11%
.11 x 581,480 = 63,963
63,963 x $126 =
$8M
3/year
8%
.08 x 581,480 = 46,519
46,519 x $176 =
$8.1M
4+/year
5%
.05 x 581,480 = 29,074
29,074 x $349 =
$10.1M
1/year
40%
.4 x 581,480 = 232,592
232,592 x $63 =
$14.6M
2/year
7%
.07 x 581,480 = 40,704
40,704 x $126 =
$5.1M
3/year
4%
.04 x 581,480 = 23,260
23,260 x $176 =
$4M
4+/year
1%
.01 x 581,480 = 5,815
5,815 x $349 =
$2M
100% = 581,480
$60.7M