Relationship Marketing Strategy and implementation

(Nora) #1

zine, in the autumn of 1988. This was personalised, by placing the recipi-
ent’s name and address in a window on the front cover.
Industry sources have suggested an approximate total mailed cost of
£1.50 for the personalised magazine. Inside the magazine was a freepost
order form (for further editions), which also doubled as a questionnaire
eliciting information about the reader’s current car(s), whether it was
bought new or second-hand, whether or not it was owned by a company
or the reader, when it might be replaced and which Rover car would come
into consideration.
Clearly this new information greatly enriched the original database and
provided Rover with three possible next steps depending whether the
readers had:


1 Chosen not to respond (industry sources estimate approximately 75 per cent
of total mailed).
After experimentation, it was found to be counter-productive to try tracking
this group down in order to discover why they had not responded. It was con-
sidered better to exclude them from the mailing and build up replacements
from new lists.
2 Asked for further copies of the magazine (industry sources estimate approxi-
mately 25 per cent of total mailed. Of these, an estimated 50 per cent of pre-
vious buyers and 15 per cent of ‘cold’ names responded positively). Here the
next edition of Catalystwas tailored to the reader’s specification, using three of
six possible lifestyle sections (travel, sport, food and drink, home and garden,
entertainment and female interest). The magazine was published three times a
year and each issue contained a questionnaire to monitor and update the
reader’s details and ‘purchase window’.
3 Asked for the magazine and also approaching their ‘purchase window’ – within
six months of the time they were planning to renew their car (estimated at
approximately 10 per cent of respondents – i.e. 10 per cent of the 25 per cent).
This activated the following four stages:
a Dealers were sent Opportunity to update contact advices, which allowed
them to update the records before the next stage. About three months
ahead of repurchase date, the reader received a telemarketing call by, or on
behalf of, the local dealer. This checked whether they genuinely intended to
renew their car or whether the situation had changed (in which case the new
data was recorded). Dealers were encouraged to make the requalification
calls themselves, but could ask to have them made on their behalf (for a fee)
by a Rover-appointed telemarketing agency. Rover actively encouraged direct
contact in order to establish a personal relationship between dealer and
prospect at the earliest possible time. Participation levels by dealers were,
however, very disappointing.
b The positive telemarketing calls led to the prospective customer receiving a
Vehicle Information Portfolio (VIP). This consisted of a personalised letter


The customer market domain: Managing relationships with buyers 101

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