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					                                                                        11658 version 2
                                                                        8-Jan-09
                                                                        1 of 7


                        DIRECT MARKETING
               Develop customer loyalty strategies for
                    direct marketing campaigns



level:                    5

credit:                   5

final date for comment:   December 2001

expiry date:              December 2002

sub-field:                Marketing

purpose:                  People credited with this unit standard are able to: establish
                          customer loyalty objectives; develop a customer acquisition
                          strategy; develop a customer retention strategy; and establish
                          and manage a direct marketing database to achieve customer
                          loyalty objectives.

entry information:        Recommended: prior credit for Unit 2951, Produce marketing
                          information using marketing information systems; Unit 2928,
                          Establish quality standards and customer service strategies
                          for marketing operations; or demonstrate equivalent
                          knowledge and skills.

accreditation option:     Evaluation of documentation and visit by NZQA and industry.

moderation option:        A centrally established and directed national moderation
                          system has been set up by Moderation Services.




                                                           New Zealand Qualifications Authority 2009
                                                                        11658 version 2
                                                                        8-Jan-09
                                                                        2 of 7


                          DIRECT MARKETING
                 Develop customer loyalty strategies for
                      direct marketing campaigns



special notes:            1    Assessment guidance - this unit standard may be
                               assessed in a workplace environment, or in a training or
                               education environment if simulated work conditions are
                               able to be provided, or in a combination of both
                               environments.     Evidence is required of competent
                               performance of elements and performance criteria in a
                               direct marketing context. Where consistent performance
                               is required across a range of situations this is indicated
                               in range statements.

                          2    Legislation relevant to this unit standard includes but is
                               not limited to the: Commerce Act 1986, Consumer
                               Guarantees Act 1994, Fair Trading Act 1986, Privacy Act
                               1993, Sale of Goods Act 1908, Unsolicited Goods Act
                               1975, and their subsequent amendments.

                          3    Performance of elements of this unit standard will
                               require consideration of the New Zealand Direct
                               Marketing Association Codes of Ethics.




                                                           New Zealand Qualifications Authority 2009
                                                                              11658 version 2
                                                                              8-Jan-09
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                           DIRECT MARKETING
                  Develop customer loyalty strategies for
                       direct marketing campaigns



                               4    Definitions
                                    Relationship marketing refers to methods of building
                                    customer loyalty, and developing partnerships that have
                                    mutual benefits for customers and the enterprise.
                                    Lifetime value refers to building and retaining customer
                                    loyalty over a sustained period, and maximising
                                    customer value to the enterprise over the period of the
                                    relationship.
                                    Up-selling refers to increasing customer order values.
                                    Cross-selling refers to introducing additional products or
                                    services to customers outside the expected product
                                    range.




Elements and Performance Criteria

element 1

Establish customer loyalty objectives.

performance criteria

1.1         The concept of customer loyalty is analysed in terms of methods of building
            customer relationships, and customer loyalty marketing objectives are
            established to develop long term partnerships that have mutual benefits for
            customers and the enterprise, and are relevant to the particular direct marketing
            situation.

1.2         Factors that influence customer loyalty are identified in terms of their potential
            contribution to the achievement of relationship marketing objectives in the
            particular direct marketing situation.




                                                                 New Zealand Qualifications Authority 2009
                                                                                11658 version 2
                                                                                8-Jan-09
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                           DIRECT MARKETING
                  Develop customer loyalty strategies for
                       direct marketing campaigns



1.3         Quality standards and customer service strategies are assessed to determine
            factors that influence the achievement of relationship marketing objectives in the
            particular direct marketing situation.


element 2

Develop a customer acquisition strategy.

performance criteria

2.1         Objectives are established for a planned acquisition programme in terms of the
            number of new customers required, the allowable cost of recruiting, and the
            overall budget.

2.2         Customer profile information is researched to assess methodology and media
            relevant for new prospects, and the particular direct marketing programme.

2.3         Promotional activities are designed to attract potential users to a particular direct
            marketing programme by target market.

2.4         Media opportunities and strategies are evaluated and media planning is
            completed to identify and acquire customers, and to achieve response objectives
            within resource budgets for the particular direct marketing programme.

2.5         Direct marketing programme communication strategies are developed to take
            account of the characteristics and desired responses of target audiences, and the
            positioning of the product or service.




                                                                   New Zealand Qualifications Authority 2009
                                                                               11658 version 2
                                                                               8-Jan-09
                                                                               5 of 7


                           DIRECT MARKETING
                  Develop customer loyalty strategies for
                       direct marketing campaigns



2.6         Response factors are identified to establish the range of possible responses and
            to establish criteria for managing responses.

            Range:        response factors may include but are not limited to - the motivation
                          for response, the timeframe for response, the preferred response
                          sought, the method of handling responses.


element 3

Develop a customer retention strategy.

performance criteria

3.1         The concept of lifetime value is analysed in terms of strategies for building and
            retaining customer loyalty, and maximising customer value to the organisation in
            relation to the particular direct marketing situation.

3.2         Customer retention objectives are established and criteria are specified to
            measure the extent of achievement of objectives in relation to the particular direct
            marketing programme.

3.3         Retention strategies are developed for the direct marketing programme in relation
            to identifying customer needs and wants, analysing customer buying patterns,
            and identifying opportunities for introducing relevant up-selling measures.

3.4         Retention strategies are developed for the direct marketing programme in relation
            to identifying customer needs and wants, analysing customer buying patterns,
            and identifying opportunities for introducing cross-selling programmes.




                                                                  New Zealand Qualifications Authority 2009
                                                                               11658 version 2
                                                                               8-Jan-09
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                           DIRECT MARKETING
                  Develop customer loyalty strategies for
                       direct marketing campaigns



3.5         Retention strategies are developed for the direct marketing programme to
            achieve customer renewals and reactivate lapsed or inactive customers in
            accordance with customer acquisition and retention objectives.

3.6         Communication strategies are developed and adapted for target groups to
            optimise customer contact and to reinforce the benefits of repeat purchasing in
            relation to the particular direct marketing programme.

3.7         The message and tone are developed for the direct marketing programme to be
            consistent across all media, to avoid confusion, and to optimise their effect.

3.8         Timing of direct marketing communications is planned in accordance with
            identified customer preferences.

3.9         Direct marketing programme testing and evaluation activities are planned in
            relation to the target customer group.

            Range:       activities may include but are not limited to - establish and verify the
                         optimum timing, frequency, offer, and creative treatment.


element 4

Establish and manage a direct marketing database to achieve customer loyalty objectives.

performance criteria

4.1         Database management strategies are developed to identify information required,
            and sources of information, to determine potential information usage, to
            maximise the contribution of database use to the achievement of marketing
            objectives, and to establish criteria for database maintenance.




                                                                  New Zealand Qualifications Authority 2009
                                                                             11658 version 2
                                                                             8-Jan-09
                                                                             7 of 7


                        DIRECT MARKETING
               Develop customer loyalty strategies for
                    direct marketing campaigns



4.2      Database information is managed to identify and analyse customer information,
         to identify targeting opportunities, to develop contact strategies, and to contribute
         to marketing decisions.

         Range:        identification and analysis may include but is not limited to -
                       purchasing histories, transaction values, promotion responses,
                       sources of acquisition.

4.3      Database information is managed to evaluate and score customer records to
         enable targeting of customers against selection criteria for a specific direct
         marketing programme.


         Comments to:


         NZQA Business and Management
         Unit Standard Revision
         PO Box 160
         WELLINGTON

         by December 2001.

Please Note:           Providers must be accredited by the Qualifications Authority
                       before they can offer programmes of education and training
                       assessed against unit standards.

                       Accredited providers assessing against unit standards must
                       engage with the moderation system that applies to those unit
                       standards. [Please refer to relevant Plan ref: 0113]




                                                                New Zealand Qualifications Authority 2009

				
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