eCRM Strategy report

Olli Lainto ID Number: L113020

Hult International Business SchoolMDM 2010 - 2011 Module BCustomer Service and RetentionProfessor Mike Teasdale

Hult International Business School 46-47 Russell Square London, WC1B 4JP T 020 7636 5667 OLainto2011@hult.edu

Table of Content

Executive Summary 31.0 Overview of Tjäreborg 52.0 Customer profiling and segmenting 6

2.1 Tjäreborg’s best customers group 62.1.1 Refining the Best Customer Profile 72.2 Permission marketing 72.3 Clickstream tracking 82.4 Measuring campaign effectiveness 82.5 Segmentation 9

3.0 eCRM scenario analysis 103.1 New customer acquisition 103.2 Customer retention and winning back lapsed customers 113.3 Responding to a customer complaint 113.4 Product cross-sell and up-sell for Tjäreborg 12

4.0 Email testing 135.0 Email evaluation 156.0 Tjäreborg’s Privacy Policy 167.0 Conclusion and Recommendations 17References 18

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Executive Summary

ObjectiveThe following report gives out an outline and explanation of a strategic change in the eCRM strategy that will be conducted by Tjäreborg. This change is required in order for the company to improve their ROI, provide customers with meaningful and relevant emails and create long-lasting customer relationships.

Tjäreborg’s current one-way communication strategy in the different mediums needs to change and the company needs to begin using customer profiling to understand their cus-tomers. Tjäreborg needs to understand who their best customers are and what they have in common. This will enable the company to identify common demographic and psycho-graphic criteria that combined with buying and response behavior, will provide the com-pany with higher ROI and long lasting customer relationships.

The methodology used for Tjäreborg’s new eCRM approach will be constructed in an agile iteration delivery model, so the results and goals can be analyzed frequently. This ap-proach will enable Tjäreborg to quickly change the direction of their current eCRM ap-proach and find a style that suits Tjäreborg and provides value to their customers.

SolutionEstablishing “Tjäreborg Family-members” (TF-members) group will enable the creation of different best customer groups in various segments and give Tjäreborg a better understanding or their entire customer base. People signing up for this service will be asked to provide substantial amount of personal information and indicate their travel preferences. By signing up they will receive a certain percentage discount out of the next trip they book through Tjäreborg. They will also be eligible to win a yearly gift certificate raffled amongst the TF-members. At the beginning of each year TF-members will also receive a roundup email, where their past year’s holidays and special offers are summarized. This email will also include a thank you from Tjäreborg and a discount code percentage based on the amount of money they spent the past year. This program will enable Tjäreborg to send its customers highly relevant emails with higher response and purchase rates and create long lasting customer relationships.

StrategyIn order to maximize ROI and create long-term customer relationships Tjäreborg will be following the privacy and contact rules to the letter. This will also allow Tjäreborg to create an email list and a database that will be more responsive. It will also keep unsubscribtion rate and spam complaints low and prepare the company for the future, in case opt-out and single opt-in email marketing ever should become a legislative issue.

Clickstream-based email campaigns are found to be most effective in generating desired results, so customization based on the users clickstream data will be used for individually customized messages and offers. In practice this will mean customizing a message com-prising of specific locations and services, and of date specific offers, based on the dates the user has searched for different holidays. The data for clickstream analysis will be gath-ered from clicks on links, page visits and from cookie data.

Email list effectiveness will be analyzed and revised based on the email open-rate, click through-rate and unsubscribtion-rates. Email subject line effectiveness will be monitored

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with open-rate. The subject lines will me customized based on the clickstream data along with the email content. Content and offer effectiveness will be analyzed with click through rates of the different email campaigns. The goal is to have users visit the website because it is there, where Tjäreborg can then convert these users into members, contributors and into purchasing holidays. Landing page effectiveness will be measured according to the number of people exiting the landing page immediately after clicking a link in their emails.

SegmentationTjäreborg’s customer segmentation will be based on different demographic, geographic and psychographic data. From this data Tjäreborg will establish best customer segments based on the recency, frequency and monetary value (RFM score) they generate within a certain time-period. The data will be gathered form the initial registration form on the Tjäreborg website, from Tjäreborg site surveys and by analyzing what users are discuss-ing about on the Tjäreborg forum.

Scenario plansEmail address acquisition will be done mainly through list rental and by advertising on third party newsletters.Tjäreborg will also be collecting email addresses from people visiting their offices and incentivize people to give out their contact details at travel related trade-shows through competitions.

After spending significant amount time, effort and resources into building an active and valuable customer base, Tjäreborg will be putting as much effort into retaining those cus-tomers. The TF-members and standard customers will receive regular contact from Tjäre-borg with newsletters, special offers and with the yearly roundup letters.

Tjäreborg’s eCRM team will be tasked with actively monitoring the different social medias (Facebook, Twitter, LinkedIn) and various blogs and forums in order to receive information of what people are actually saying about the company and to give Tjäreborg the possibility to respond to complaints. This report provides guidelines and a flowchart on how these situations can be handled.

Email address evaluation Value of an email address for Tjäreborg will be based on the new strategy suggested in this report. The new approach to eCRM of segmenting customers based on demograph-ics, and their RFM and LTV scores will be used as a baseline, on which more refined analysis will be built on. Because of the different types of customers and segments, the value of the email address cannot be the same for all of the different segments. The more Tjäreborg will know about the holder of the email address, the more relevant messages it can send them. By doing this Tjäreborg can increase conversion and eventually the value of the email address. What needs to be taken into consideration as well, is the cost of ac-quiring the email address. Also the money spent in acquiring and retaining an email ad-dress needs to be evaluated against the lost opportunity cost.

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1.0 Overview of TjäreborgTjäreborg, founded in the 1950’s by a vicar looking for a cheap way to travel to Jerusalem, is Finland’s third largest travel agency with over 190,000 travelers per year. The com-pany’s market share in Finland is estimated at 21%. Tjäreborg is part of the Thomas Cook Group-concern which is a leading, international travel agency listed in the London stock exchange. Over 19 million people travel every year with one of the Thomas Cook Groups travel agencies and the concern employs over 33,0000 people. The entire concern’s yearly sales are estimated at 12 billion euro (Tjäreborg, 2011).

During the past 10 years Tjäreborg has decreased the number of physical agencies, limit-ing their presence to only the larger cities around Scandinavia. At the moment 70% of eve-rything sold by Tjäreborg is sold online, with an estimated revenue of 130 million euro. The company’s market share declined between 2002-2008, as the company was slow to em-brace opportunities brought by the online revolution (Tjäreborg, 2011).

In 2010 Tjäreborg launched a completely re-vamped website, imitating the same standard model found on other travel agencies’ websites. Besides the change in the look of the website, pretty much nothing else did change about the company. The homepage allows logging in via Facebook Connect, which is a nice feature for the user but doesn’t allow Tjäreborg to gather detailed information about the person browsing the site. As most Facebook profiles are disabled from being viewed by outsiders, the only thing Tjäreborg can really get is the user’s name and date of birth. What is more noteworthy, is that Face-book Connect only allows the user to browse the member’s sections of the website, but purchasing a holiday or a flight still requires the user to fill out a traditional signup form, which only ask for the basic contact details (Tjäreborg, 2011).

The Facebook wall page is one long advertisement as is their Twitter page. The other sec-tions of the Facebook profile do not provide much content either, merely random pictures of different locations and contact information of the company. The communication is 99% one-way, with an average contributing comment by the company every month or so. The company is embracing social medias little bit in their competitions, where they ask the winners to blog and post pictures of their trips. Still, this falls short of actually getting peo-ple engaged with the company, as many questions posted under these wall posting are left unanswered.

The emailing strategy observed during past 2 months leaves much for desiring as well. The emails and their subject lines are relatively professional i.e they subject line clearly indicates what the content of the email will be, but the relatedness to the user is non-existent. For 2 months “Amy Adams” a 55 year old woman, “John Johnson” a 35 year old man and “Jack Jackson” a 18 year old youngster, have all received the exact same emails. These fictional people logged in twice a week and browsed the same holiday locations, with same travel dates every time (Amy browsed South America for September 2011, John browsed US for December 2011 and Jack browsed Asia for August 2011 ). The only differ-ence found in the emails has been that the email content has been addressed based on the first name of these fictional people.

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2.0 Customer profiling and segmenting The CMO Council deems the importance of customer profiling crucial for companies ac-cording to their 2008 survey. Valuable, long-term customers are fundamental to a success-ful business and are hard to replace. “Loyal customers are 15 times as likely to increase spend as high-risk, intermittent customers are — and acquiring new customers can cost five times as much as satisfying and retaining current ones” (CMO Council, 2008).

Tjäreborg’s current eCRM strategy consists mainly of one-way communication by the company to their customers. The emails, Facebook postings and Twitter updates are all aimed at selling trips, flights and other travel related items and services. The emails they’re sending are very general and not customized based on the customer information or pref-erences. The value that Tjäreborg’s customers are getting is very low. The company is ba-sically conducting analog business in a digital world.

In order to chance this one-way approach, the company needs begin using customer pro-filing to understand their customers. Tjäreborg needs to understand who their best cus-tomers are and what they have in common. This will enable the company to identify com-mon demographic and psychographic criteria, such as user interests and travel destination preferences. This information can be combined with buying and response behavior for even more precise segmentation.

The methodology used for Tjäreborg’s new eCRM approach will be constructed in an agile iteration delivery model, so the results and goals can be analyzed every two or three weeks. This approach will enable Tjäreborg to quickly change the direction of their current eCRM approach and find a style that suits Tjäreborg and provides value to their clients (Berteig, 2006).

2.1 Tjäreborg’s best customers groupIn conjunction to establishing a 2-way communication method in the social medias, Tjäre-borg will also begin analyzing and segmenting customers in their email database. The goal is to establish a best customers group (Tjäreborg evangelists) that will receive more per-sonalized emails based on their needs and preferences. The emails will consist of various offers, newsletters and informative emails. People signing up for this service (working title is Tjäreborg Family group abbreviated TF-members from now on) will be asked to provide substantial amount of personal information and indicate their travel preferences (Webster, 2005).

By signing up the members can modify their user profiles to exclude emails they feel are not relevant for them. They will also be able to indicate specific travel locations of which they wish to receive more information and special offers. By signing up they will receive a certain percentage discount out of the next trip they book through Tjäreborg. They will also be eligible to win a yearly gift certificate, raffled amongst the TF-members. At the begin-ning of each year TF-members will also receive a roundup email, where their past year’s holidays and special offers are summarized. This email will also include a thank you from Tjäreborg and a discount code percentage based on the amount of money they spent the past year. This program will enable Tjäreborg to send customers highly relevant emails with higher response and purchase rates and create long lasting customer relationships.

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TF-members are also asked to provide reviews of the locations they travel to, of the trans-portation & service they receive there and of the service they receive from Tjäreborg. All this information will be included on to Tjäreborg website, where they will be available for everyone to see and comment. TF-members will also receive email alerts on discussions and reviews of the locations they have indicated interest in.

Customers choosing to provide only the bare minimum information and don’t sign up for the TF-membership will still receive newsletters and more customized emails based on their previous travel preferences, browsing history and clickstream data (see 2.2 for more details). The segmentation in this group will be more broad and general. This groups’ cus-tomer life cycle will be still monitored and they will be encouraged every now and then (for example when Winter or Summer holidays are being booked) to join the program by giving them a glimpse of the special offers the TF-members are receiving.

2.1.1 Refining the Best Customer Profile1. Direct data will be gathered from users and customers from the site registration forms (longer and shorter one), pop-up polls and questionnaires on the Tjäreborg website, from social medias (Twitter and Facebook), form the Tjäreborg forum and from travel related trade-show competitions (Webster, 2005), (Dun & Bradstreet, 2008).

2. Tjäreborg will begin to regularly cleanse and categorize customer information to ensure that it is up to date and accurate. This will be done based on the results received from various email campaigns, mainly by monitoring the delivery- and open rates of the emails (Dun & Bradstreet, 2008).

3.Tjäreborg will begin applying marketing analytics that predict future behavior based on the information collected from customers. The customers are ranked from most to least likely to; respond, purchase or defect, in order to determine what kind of emails they should be sent. This will allow Tjäreborg to segment the TF-members and standard cus-tomers (Dun & Bradstreet, 2008).

2.2 Permission marketingIn order to maximize ROI and create long-term customer relationships, Tjäreborg will be following the privacy and contact rules to the letter. This will create trust among users and promote appropriate brand image. At the heart of achieving all this will be gaining the per-mission to send the Tjäreborg messages in the first place. The current opt-in option will be changed to a double opt-in, which will ensure that users fully understand what they’re about to sign up for and it will stand out from Tjäreborgs main competitors, such as Ebookers and Finnmatkat, that use single opt-in (Bruce Clay, - -).

This will also allow Tjäreborg to create an email list and a database that will be more re-sponsive. It will also keep unsubscribtion rate and spam complaints low. The final benefit comes to play as the ever-increasing restrictions by the EU force advertisers to change their advertising methods. It’s not at all unimaginable, that the emailing of opt-out and opt-in emails would become a legal problem at some point. This type of permission marketing will result in higher deliverability rates, positive brand image and higher ROI (estimated CTR of permission-based emails is 5 to15 percent compared to non-permission based that create on average 1 to 2 percent) (Bruce Clay, - -).

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2.3 Clickstream trackingClickstream tracking in email campaigns is found to be the most effective method in gen-erating different desired results (Net Atlantic, 2010) and the customization based on the users clickstream data on the Tjäreborg website, will be used for individually customized messages and offers. In practice this will mean customizing messages comprising of spe-cific locations and services, and of date specific offers, based on the dates the user has searched for holidays. The data for clickstream analysis will be gathered from clicks on links, page visits and from cookie data (Net Atlantic, 2010).

Clickstream details will also provide important profiling data of subscribers, as Tjäreborg will be able to analyze which landing pages are most interesting to different user seg-ments. The three most important benefits for Tjäreborg will be to:

- Analyze which creative content and images in the email prove most successful in engaging subscribers

- See how many clicked through to which landing page, and where they actually went from there

- Measure and analyze performance of each message Tjäreborg sends

(Net Atlantic, 2010)

Because of the high relevancy and immediacy to users, some of them might not be com-fortable in receiving this type emails. This is why Tjäreborg will be providing an easy “tick / tick off box -section” in each user’s user preference section, where they can opt out this type of emails along with other types emails (Net Atlantic, 2010).

2.4 Measuring campaign effectiveness(Brief explanation of the main ones to be used, more detailed analysis in Appendix 1.)

For Tjäreborg the ultimate goal will be to increase the engagement with emails that will drive traffic to the website and keep customers actively contributing by reviews and posts to the Tjäreborg forum.

Because of the agile iteration model that is used for this project, monitoring of different KPIs at different stages of the project is important, but the results should be analyzed care-fully. Success of certain types of campaigns should be repeated several times in order to analyze what specific aspects of the campaign made it stand out or were they just a one time flukes.

Email list effectiveness will be analyzed and revised based on the email open-rate, click through-rate and unsubscribtion-rates. Whether the reason for unsubscriptions is irrelevant content or too frequent mailing by Tjäreborg, the results will be analyzed on a monthly ba-sis to optimize the relevancy of the emails to the users. The goal is to have the relative rate of unsubscriptions to decrease during the 12-month time period (Lavigne, 2007).

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Email subject line effectiveness will be monitored with open-rate. The subject lines will me customized based on the clickstream data along with the email content. The subject lines of the promotional emails will be styled in a way that gives people an idea of the value they would receive from opening the emails. The tone of the emails will be friendly and professional. Tjäreborg will conduct A/B testing to optimize subject lines based on the results received from iterations. The open-rates will be compared against the conversion rate or ROI received from the campaigns and will be not used as a standalone measure of success (Lavigne, 2007).

Content and offer effectiveness will be analyzed with click through rates of the different email campaigns. The goal is to have users visit the website because it is there, where Tjäreborg can then convert these users into members, contributors and into purchasing holidays. The click through rates will also be used to analyze the relevancy of the content and how enticing they are to the user (Lavigne, 2007).

Landing page effectiveness will be measured according to the number of people exiting the landing page immediately after clicking on a link in their emails. The significance of this last part of the conversion funnel is that the conversion (signing up to become a member, reading or writing a review or a forum post or purchasing a holiday) will not occur at the landing page. Instead the purpose of the landing pages are to forward traffic to the pages where the conversion should happen. User related conent plays a significant role here and Tjäreborg will take this into consideration by making sure that the email link clicked and landing page are interrelated (Lavigne, 2007).

2.5 SegmentationTjäreborg’s customer segmentation will be based on different demographic, geographic and psychographic data. From this data Tjäreborg will establish best customer segments based on the recency, frequency and monetary value (RFM score) they generate within a certain time-period (for example 6 months). The data will be gathered form the initial regis-tration form, site surveys and by analyzing what users are discussing on the Tjäreborg fo-rum (Email Marketing Reports, 2010).

Demographic data to be analyzed will comprise of users age, gender, household size, income, occupation, education and country of birth. For example families with parents 35-55 years old, couples from 20-30 years old, young people from 18-30 years old, people interested in golf, extreme sports, relaxing beach holidays etc.

Geographic data to be analyzed will be narrowed down from country, to city, to street of living. This information will be used to provide offers more related to the user.

Psychographic data to be analyzed will include user interests (hobbies and favorite travel methods and locations), general characteristics (what type of people they are i.e what type of activities they like, are they big spenders or go for the special discounts, what motivates them to come to the website, what motivates them to purchase holidays, etc. ).Tjäreborg will begin analyzing the psychographics of their customers so that the company can tailor promotional activities and communication messages, that appeal to the customers’ specific interests and lifestyles (Oakes, 2009)

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3.0 eCRM scenario analysis

3.1 New customer acquisitionThe following strategy will be used to acquire new customers who haven't opted-in to re-ceive emails from Tjäreborg.

Email address acquisition will be done mainly through list rental and by advertising on third party newsletters. The conversion rate (in this case percentage of people who open the email, visit the website and register to the website & Tjäreborg newsletter) using these methods is found to be more efficient than when buying email lists, which Tjäreborg will not be doing. Tjäreborg will also collect email addresses from people visiting their offices and incentivize people to give out their contact details at travel related trade-shows through competitions. Social medias like Facebook and Twitter will also be used (Nye, 2011).

The people Tjäreborg will be targeting with the above mentioned methods will have similar demographics and lifestyle interests as Tjäreborg’s TF-member segments (see 2.5 for segments) The goal is to send emails that are highly relevant to the users in order to opti-mize the results. Tjäreborg will also test out different audiences (holiday packages for the elders, Tjäreborg Travel Around the World-challenge etc) in order to break into new types of customer markets (Nye, 2011).

Email rental list acquisition will be done with a reputable list rental agency. In the UK Tjäreborg should consider using Thinkmedia for this. The third party newsletter advertising should be used to target the following segments in mind;

- Families (parents 30-45 years old with children 1-15 years old, with 1-2 week fam-ily friendly holiday locations)

- Couples (20 – 35 years old with romantic weekend trips)

- Young people (18 – 30 males and females with spring break trips and extreme sports activities)

Prospective customers will be prompted to visit the Tjäreborg website and sign up as members by giving them a brief description of the benefits TF-members receive and by raffling gift certificates to be used on Tjäreborg services. The emails sent, will be carefully constructed to be simple, pleasing to the viewer and with an appropriate subject line that will encourage opening the email.

The evaluation of the success of these campaigns will initially be measured based on the open rates of the emails, registrations to become members and the revenue generated from these new members, compared to the cost of acquiring them. More important criteria used to measure the success will be how well Tjäreborg will be able to establish long-term relationships with these new customers. After the acquisition campaigns Tjäreborg will continue to nurture these new leads with follow-up marketing in order to maximize the life-time value (LTV) of these customers.

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3.2 Customer retention and winning back lapsed customersAfter spending significant amount time, effort and resources into building an active and valuable customer base, Tjäreborg will be putting even more effort into retaining those customers. The TF-members and standard customers will receive regular contact from Tjäreborg with newsletters, special offers and with the yearly roundup email (see 4.0 for more details)

If a customer should for any reason stop responding (opening the emails, logging to the website or purchasing services from Tjäreborg), they would be send a reminder email. The tone of the emails will depend on the type of customer and can be anything from cute (pic-ture of a kitten with a text “We’re missing you”) to something more exciting like the one sent by Beach Park, a Brazilian water-park (http://bit.ly/ikjAN4). The emails will remind people of the benefits received from being and active member of the Tjäreborg community and encourage them to visit the site to see all the new things it has to offer. There will also be a gift certificate raffling taking place every 3 months to win back lapsed members.

If these emails are unsuccessful in convincing the lapsed customer, Tjäreborg will perform a customer analysis, which will look at how recently the person used to visit the site, how frequently, and how much monetary value they created with their purchases i.e RFM cus-tomer analysis. A customer scoring high in this analysis is likely to visit Tjäreborg site often and make frequent purchases. If this type of customer stops responding to emails and is no longer making purchases, then it is likely they have found an alternative site that suits their needs better. Tjäreborg will continue to target these high-value customers and if un-successful in convincing them to return to active TF-members, Tjäreborg will send an email with a questionnaire enquiring about what they would change about Tjäreborg (Shu-lock, 2011).

The way this will be measured is by analyzing the open – and click through rates of the send emails over a 30 day time period. Changes in the response rates of TF-members will be prioritized over standard customers with lower RFM scores. The bulk of Tjäreborg’s re-sources and efforts will be put to maximize the lifetime value of customers with high RFM scores. Depending on the remaining resources Tjäreborg will also target customers with lower RFM scores but the efforts put in trying to convince these customers wont be as “aggressive” or tailored (Novo, 2010).

3.3 Responding to a customer complaintTjäreborg’s eCRM team will be tasked with actively monitoring the different social medias (Facebook, Twitter, LinkedIn) and various blogs and forums in order to receive information of what people are actually saying about the company, and to give Tjäreborg the possibility to respond to complaints. The following is an example of how a complaint made in Twitter would be responded by a member of the eCRM team. (See Appendix 2 for a flowchart)

Step 1. Customer makes a complaint to the Tjäreborg’s Twitter account or a member of the eCRM team notices a tweeted complaint about Tjäreborg.

Step 2. eCRM member will contact the person who made the complaint directly via Twitter (optimally within a hour of the complaint) and requests whether they could chat with the person about the complaint. The tone should be apologetic and the issue should be re-solved if possible during this discussion. Whether the problem can be solved on the spot

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or not, the eCRM member should request the contact details of the person (Name, possi-ble reference number and email) for further follow-up.

Step 3. Depending on the significance and urgency of the problem, the eCRM member will check the RFM score and lifetime value score of the customer. In cases of high value cus-tomers the process to identify liability and possible compensations will be prioritized.

Step 4a. The eCRM member will be able to provide the customer a solution to their prob-lem on the spot. Tjäreborg is clearly liable / not liable for the problem and the customer is given information on what they need to do. Customer will also be asked permission to send them email with a more detailed explanation of the issue and instructions how they can be reimbursed if Tjäreborg is deemed liable.

Step 4b. After 2 weeks the same eCRM member will send the person an email where they will again apologize and enquire whether the problem has been solved.

Step 5a. If the eCRM member is not be able to provide the person with a solution to their problem on the spot, they will also be asked permission to reply via email, with a more de-tailed explanation of the issue and instructions how they can be reimbursed if Tjäreborg is found to be liable. If Tjäreborg is not liable for the problem, the customer will be send an explanation why this is so, and what they can do about the situation.

Step 5b. After 2 weeks the same eCRM member will send the person and email where they will again apologize and enquire whether the problem has been solved.

3.4 Product cross-sell and up-sell for Tjäreborg While booking a trip form Tjäreborg, customer will be provided with relevant cross-and up sell advertisements, which they can add to their trip before purchasing. People will also receive reminders of these offers and of new ones in the “Reminder emails” (see 4.0 for more details). The offers will be tailored as much as possible based on the user informa-tion available. The tailoring will be based on the users purchase history,clickstream data, profile preferences and interests. The strategy famously used by Amazon “Other people who bought this also bought!”, will also be implemented in the sections where Tjäreborg will be offering travel related products and apparels. The users won’t be charged extra (i.e additional credit card charges), if they choose to purchase products and services related to the specific holiday bookings.

The pricing of the cross-and up sell products and services will be kept below the price of the product or service the user is / was primarily considering of buying. The value of any additional sale shouldn’t increase the overall order by more than 25 percent. The selection of cross-and up sell services and products will vary in prices, so that each time the user is presented a cheaper and a more expensive option. Bundling will be used to sell different travel packages like holiday destination bundles, transportation bundles and travel acces-sories bundles (Webcredible, 2008).

The advertisements will be kept simple and clean. The tone of the sales slogans will also convey a friendly explanation of the benefits the user would get by adding or upgrading their product. The emails will be more along the lines of friendly recommendations that of-

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fer value to the customer even if they choose not to purchase anything. (“Buy a rain coat for your upcoming trip!”, with weather update on the holiday location.)

The different cross-and up sell options will include; - Upgrades to travel method (upgrade train, plain or boat tickets)

- Additional services required for the flight (special foods, disabled access etc.) - Travel insurances

- Car rental - Hotel offers- Holiday location specific tourist tours and activities (activities for the whole family,

scuba lessons couples, pre-booked golf tee times!)- Luggage and other travel accessories (such as personal security related items,

travel guides and gift certificates),

4.0 Email testingThe following testing will be conducted during a 12-month time period. The types of emails listed here are aimed for the TF-members and standard users. The level of customization and types of emails sent will depend on the membership status of the customer. Timeline of the email sent can be found in Appendix 4.

NewslettersAll users signed up on the Tjäreborg website will automatically receive a monthly update email (unless they chose not to receive it when signing up) of the latest offers, updates on the site and the most popular discussion on the Tjäreborg Holiday forum.

Thank You – emails When a person signs up for the Tjäreborg website they will receive a Thank You – email including the user information and password they have chosen, a link to their personal pro-file, tutorial of the different features of the site, information on how to take most of becom-ing a Tjäreborg member (special offers available for only Tjäreborg members). New users will receive 3 welcome emails in total, spread out over 4 weeks. Each letter will encourage the user to explore the Tjäreborg site in more detail, and explain how they can engage with the site and how they will benefit from it.

When a person books a trip they will receive a Thank You- email which includes the travel confirmation, possible flight dates, hotel reservation number and links to the Tjäreborg website relevant to the travel location (user reviews & different activities available at the location) and finally cross-selling ads relevant to the user (car hire, insurance, transporta-tion to-and from the airport). Once a person has returned from their holiday, they will re-ceive an email thanking them again for booking their trip through Tjäreborg and asking them to rate and review their experience and share it on the Tjäreborg forum.

Reminder emailsReminder emails will be sent to users who have booked an upcoming trip through Tjäre-borg. The emails will include a summary of the travel dates and reservation numbers. They will also remind the users to check their passports and vaccinations they might need (de-pending on the travel location) and news of possible events that might affect their trip (scheduled tube strike, train line repairs etc.) Depending on the time left until the trip (for

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example 6 months), the user will receive from 4-6 emails with updated travel information including up-and cross sell advertisements.

Summer - and Winter Holiday emailsThe Summer – and Winter Holidays email will be sent to all users. The email includes a sneak peak of the most popular- and new holiday locations. The email will be tailored to give a slight sense of urgency with relevant imagery. Customers will receive different “early bird specials” and they are encouraged to visit the website through visible, and depending on the customer, in some cases customized call to action buttons. For example “See what’s new in Barcelona!” if customer visited the city last summer and rated it high.

Special Occasion emails Different bank holiday and other internationally significant holiday themed letters will be send to users depending on the occasion one month or 2 weeks before. These include for the year 2011; Valentine’s Day, St. Patrick’s Day, Royal British Wedding, Easter, Mother’s Day, Wimbledon, Midsummer’s Eve, Father’s Day, Christmas and New Year. The Royal Wedding email will provide customers with information on how to experience the most of the wedding or in the contrary, where to escape from London during this time. The Wim-bledon email is and example of significant sports or cultural events emails. Other possible ones could be Super Bowl, the Olympics, Football World Cup or the Canterbury music fes-tival.

Last Minute Holiday emailsThese emails will be sent to users prone to respond to last minute special deals and to in-centivize standard users to sign up for the best customer program in order to receive more relevant offers. The last minute offers can be sent depending on the offers 2-3 weeks be-fore a week long holiday or 2-3 days before a weekend long trip.

Latest reviews and recommendations emailsThese emails will be sent every other month to remind users to engage with the website and with each other on the Tjäreborg forum. Gift certificates will be raffled amongst users who participate in the relevant discussion for Tjäreborg (travel locations and what to do there) actively and provide quality reviews and content. Members will also be asked to vote on different locations where they would like to travel or what kind of trips they would like to take.

Yearly Roundup emailThis letter will be sent at the beginning of every year wishing the TF-member a happy New Year. The letter will include a personal discount code percentage based on the amount of money they have spent on different Tjäreborg services the past year.

Special emailsBased on the information members of the TF-members have provided and wrote on to the Tjäreborg forum, the eCRM team can identify highly specific offers that can be sent to us-ers. These types of emails could be congratulatory emails for getting engaged, married or the birth of a child. Emails could include a special offer for a bachelor party in Las Vegas, honeymoon in Barbados or first family trip to a child friendly location. The offers can also be tailored based on the member’s previous travel preferences and can be a fun way of informing them of things they might be interested, for example an avid skier who books a trip to the Alps every year might get an email of a Ski&Winter expo in Birmingham with travel and accommodation information. These emails can also be sent in case of sudden

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event, like earthquake, ash cloud or snowstorm, which might or might not affect the mem-bers travel plans.

Customer retention emailsEmails send to keep people coming back to the site and winning back lapsed customers. (See 3.2 for more details)

5.0 Email evaluationValue of an email address for Tjäreborg will be based on the new strategy suggested in this report. The new approach to eCRM of segmenting customers based on demograph-ics, and their RFM and LTV scores will be used as a baseline, on which more refined analysis will be built on. Because of the different types of customers and segments, the value of the email address cannot be the same for all of the different segments. The more Tjäreborg will know about the holder of the email address the more relevant messages it can send them. By doing this Tjäreborg can increase conversion and eventually the value of the email address (Novo, 2010).

What needs to be taken into consideration as well, is the cost of acquiring the email ad-dress. Naturally Tjäreborg can spend more to acquire an email address if it its future RFM and LTV scores will be high in the long run. Since knowing whether Tjäreborg will be able to turn the holder of the email address into an “Tjäreborg evangelist”, the funds and re-sources spent to acquire a new customer should be optimized, ones reliable median RFM and LTV scores are available. This optimization will begin after the new eCRM project has been initiated and it will be re-evaluated at the end of the year (Novo, 2010).

RFM evaluation will be calculated by analyzing how recently the users have bought a holiday from Tjäreborg, how often they buy holidays from Tjäreborg and how much money they’ve spent on these purchases. The three separate lists will be added together to create a complete RFM list. Ones reliable data will available for Tjäreborg, the weighing of the dif-ferent factors can be changed, if deemed necessary (Novo, 2010).

Customer lifetime value for Tjäreborg will be calculated by multiplying customer's me-dian purchase value by the number of transaction during the year. This number will be fac-tored by the estimated number of years the customer will remain active and with a factor based on the estimation of the future level of activity (i.e activity will be decreasing or in-creasing). From this calculation Tjäreborg will deduct the cost of acquiring and retaining the customer during the relevant years. This figure can be then divided to indicate the value of the email address per year or any needed time period (Novo, 2010).

Evaluation based on the RFM and LTV scores, in addition to evaluating the value of the email address, will give Tjäreborg

- how much the company looses with unsubscriptions and with unsuccessful cam-paigns

- how much acquisition of new customers cost for the different segment

Also the money spent in acquiring and retaining an email address needs to be evaluated against the lost opportunity cost. If the money could be spent in other marketing tactics that would yield higher revenues than what are gained from the email marketing, then this

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needs to be addresses and optimized as well. The strategies used and their expected costs-and revenues need to be evaluated at Tjäreborg’s yearly strategy meetings.

6.0 Tjäreborg’s Privacy PolicyTjäreborg’s privacy policy will explain in detail the rights of the consumers, the methods used to gather information and how this information will be used. At the bottom of the pri-vacy policy will be an explanation of the legislation of the country the user is visiting the site from and contact details of the local Tjäreborg representatives (Business Link, 2009).

The outline of the privacy policy will consist of the following sections:- Introduction, explains the Privacy Policy with a link to Terms of Service

- Consent, explains what the user is consenting to by browsing the site

- Information Collection and Use, explains how the users IP Details and Cookies are used and stored

- Personal Information, explains what kind of personal information will be collected and processed by Tjäreborg

- Use of Information, explains how the IP details, Cookie data and Personal Infor-mation will be used to improve their user experience

- Disclosure of your information, explains how the information collected might be disclosed according to the legislation corresponding to users location

- Data Storage, explains how the information Tjäreborg is gathering will be stored

- Links to third party websites, explains the concept and that the Privacy policy does not apply to these sites.

- Sharing Information, explains the concept of exporting information from social networking sites and third party applications

- Your Rights, explains the rights of the users in relation to the personal data they have provided

- Access to Information, explains the corresponding country’s Data Protection leg-islation

- How to contact us, explains the contact information relevant to the user and the location and contact information of Tjäreborg’s head office.

(Business Link, 2009)Please be advised that the following guideline is subject to change.

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7.0 Conclusion and RecommendationsTjäreborg’s current one-way communication strategy in the different mediums needs to change and the company needs to begin using customer profiling to understand their cus-tomers.

Tjäreborg’s best customerPeople signing up for this service will be asked to provide substantial amount of personal information and indicate their travel preferences. By signing up they will receive a certain percentage discount out of the next trip they book through Tjäreborg. They will also be eli-gible to win a yearly gift certificate raffled amongst the TF-members.This program will en-able Tjäreborg to send customers highly relevant emails with higher response and pur-chase rates and create long lasting customer relationships.

Emailing strategy and effectivenessIn order to maximize ROI and create long-term customer relationships Tjäreborg will be following the privacy and contact rules to the letter. This will also allow Tjäreborg to create an email list and a database that will be more responsive.

Clickstream-based email campaigns are found to be most effective in generating de-sired results and the customization based on the users clickstream data on the Tjäreborg website will be used for individually customized messages and offers.

Email list effectiveness will be analyzed and revised based on the email open-rate, click through-rate and unsubscribtion-rates. Email subject line effectiveness will be monitored with open-rate.

Content and offer effectiveness will be analyzed with click through rates of the different email campaigns.

Landing page effectiveness will be measured according to the number of people exiting the landing page immediately after clicking a link in their emails.

Customer analysis and valueTjäreborg’s customer segmentation will be based on different demographic, geographic and psychographic data. From this data Tjäreborg will establish the best customer seg-ments based on the RFM and LTV scores they generate within a certain time-period. These scores will be used as a baseline, on which more refined analysis will be built on.

The length of the project is estimated at 12 months, at which point the increased ROI, greater customer satisfaction and increased brand image will prove the excellence of the strategic change and it can become the corner stone of Tjäreborg’s eCRM strategy.

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References

Berteig, M. (2006). Seventeen tips for iteration planning. Available: http://www.agileadvice.com/archives/2006/08/seventeen_tips.html. Last accessed 9th Apr 2011.

Bruce Clay. ( - -). Email Marketing Done Right. Available: http://www.bruceclay.com/branding/email/mktgdoneright.htm. Last accessed 1st Apr 2011.

Business Link. (2009). Sample internet policies and notices. Available: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1076142085&type=RESOURCES. Last accessed 9th Apr 2011.

CMO Council. (2008). Survey 2008. Available: http://www.cmocouncil.org/resources/form_mo_execsummary.asp. Last accessed 1st Apr 2011

Dun & Bradstreet. (2008). Customer Profiling: Using Your Customer Data To Improve Your Marketing ROI. Available: http://www.techrepublic.com/whitepapers/customer-profiling-using-your-customer-data-to-improve-your-marketing-roi/935591. Last accessed 9th Apr 2011.

Email Marketing Reports. (2010). Segmentation and targeting .Available: http://www.email-marketing-reports.com/tactics/segmentation/. Last accessed 9th Apr 2011.

Lavigne, D. (2007). A year in the life of a BSD Guru. Available: http://it.toolbox.com/blogs/bsd-guru/mailing-list-effectiveness-17685. Last accessed 9th Apr 2011.

Net Atlantic. (2010). Clickstream and Clickthrough Tracking . Available: https://www.netatlantic.com/emailmarketing/clickstream.html. Last accessed 9th Apr 2011.

Novo, J. (2010). Customer Response, Retention and Valuation Concepts (RFM Model). Available: http://www.jimnovo.com/RFM-tour.htm. Last accessed 9th Apr 2011.

Nye, C. (2011). Using Email for Customer Acquisition . Available: http://www.practicalecommerce.com/articles/2611-Using-Email-for-Customer-Acquisition. Last accessed 9th Apr 2011.

Oakes, S. (2009). Tips to Create a Customer Profile . Available: http://www.m4bmarketing.com/tips-create-customer-profile/. Last accessed 9th Apr 2011.

Shulock, E. (2011). 12 Internet Customer Retention Tactics. Available: http://www.wdfm.com/marketing-tips/customer-retention-tactics.php. Last accessed 9th Apr 2011.

Tjareborg Admin. (2010). Yritystietoa . Available: http://www.tjareborg.fi/yritysinfo. Last ac-cessed 9th Apr 2011.

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Webcredible. (2008). 5 ways to improve online cross- & up-selling .Available: http://www.webcredible.co.uk/user-friendly-resources/web-credibility/cross-up-sell.shtml. Last accessed 9th Apr 2011.

Webster, M. (2005). Market orientation toward various customer groups in business schools. Available: http://findarticles.com/p/articles/mi_hb6167/is_1-2_9/ai_n29241308/. Last accessed 9th Apr 2011.

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Appendixes

Appendix 2: KPI analysis for Tjäreborg

In order for Tjäreborg to stay on top of the change their new online approach will have, the company will be formulating, following up on and revising relative KPIs according to the REAN framework (Reach, Engagement, Action and Nurture). Benchmarking will be used to compare the company’s own improvement and to compare the company’s results against other competitors in the industry. Tjäreborg will nee to set up clear targets for im-proving each selected metric over a period of time (Chaffey, 2010).

REAN Framework:

REACH# Of Branded Searches# Of Blog Subscribers# Of Twitter Followers# Of Facebook Fans# %Site visits / %SEM visits / % Display ads

# Of Branded SearchesAs the purpose of Tjäreborg’s online presence is to create brand awareness that can be turned into sales, the company needs to measure their online presence. Branded searches can be used to measure the development in this area.

# Of Subscribers to different mediasHaving a constant and steady increase in followers means Tjäreborg is establishing a better and larger connection to their customers and that the whole company’s ap-proach is becoming more open and inviting. The increase in followers also means that Tjäreborg will be able to receive more information on what their customers want and how they can improve.

ENGAGEMENT # Alerts (register and response rates / by channel / CTR / post click activity)# Comments (Social Media, Website, Blog)# Forward to a friend (Campaing news, Competition, Foursquare)# Uploads (add an item, e.g. articles, links, images, videos to Facebook, Company blog, Twitter)Time spent on site (by source / by entry page) Time spent on key pages (Competition pages)Social media sharing / participation (activity on key social media sites, e.g. Facebook, Twitter, Digg, etc)# Registered users (new / total / active / dormant / churn)

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KPIs selected for the engagement part are mainly intended for the content on the main website but can also be used for the other online medium that Tjäreborg is using.

ACTIVATIONConversion rates of:# Tjäreborg Family-member# Participation in the competitions# Contributions to the Tjäreborg site# Fans (Facebook, Twitter, Blog, Competitions)CPA for all of the above

KPIs selected for the activation part are specific conversion points that Tjäreborg is looking to achieve. Cost per action will be used to measure the success getting people to sign up for the TF-membership, and contributing and participating on the site.

NURTURING# Repeat visits / logins and their frequencyCommunity engagement (how actively people are responding to news and comments from Tjäreborg, how well Tjäreborg can get people engaged and active when new content is released)% Of Email permission coverage% Of Email engagement (“hurdle rate”)Feedback (site surveys and content rating)

EMAIL SPECIFIC KPIS% Delivery rate% Bounce rate% Open rate% Click through rate% Unsubscribe rate# Link requests% Conversion rate

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Appendix 3: Flow Chart of an Twitter complaint

January February March April May June July August September October November December

Appendix 4: 12-month email testing

- Thank You-email (for signing up to the site & newsletter)

- January newsletter- Summer Holidays- Thank You-email (for booking a summer holiday)

- March newsletter- St. Patrick’s Day- Holiday location information & activities- Customer retention email

- February newsletter- Valentine’s Day- Latest reviews and recommendations (user generated content)

- April newsletter- Royal Wedding - Easter- Mother’s Day- Reminder email (Passport, Vaccinations, public transportation update! )

- Latest reviews and recommendations (user generated content)

- June newsletter- Midsummer’s Eve- Father’s Day- - Reminder email (Reminder email of the benefits of becoming a TF-memberr for the standard customers)

- Customer retention email

- August newsletter- Thank You-email (Hoping that the holiday went well and asking the person to write a review of the trip)

- Latest reviews and recommendations (user generated content)

- October newsletter- Christmas & New Year- Latest reviews and recommendations (user generated content)

- May newsletter- Wimbledon - Reminder email (Activities in your holiday destination, how to get there and where to stay)

- Latest reviews and recommendations (user generated content)

- July newsletter- Last minute holidays- Latest reviews and recommendations (user generated content)

- September newsletter- Winter Holidays- Reminder email (Reminder email of the benefits of becoming a TF-member for the standard customers)

- November newsletter- Congratulatory letter (for getting engaged, married or being single)

- Customer retention email

- December newsletter- Last minute holidays- Yearly Roundup letter

Emails shown in this timeline represent an example of what could be sent to a user. The overall strategy is subject to revisals as more data is gathered and analyzed.

Appendix 5: Tjäreborg’s Privacy Policy (based on the privacy policy of SkyScanner Limited)

This Privacy Policy covers your use of this website. Tjäreborg is committed to protecting and respecting your privacy and we make it our highest priority to safeguard the confidentiality of any and all personal details you provide to us. As a visitor to our website you have the right to know and understand our information privacy practices prior to providing Tjäreborg with any of your personal details.

ConsentBy using our website, you consent to the collection and use of your IP Details and Personal Information in accordance with this policy. If we change our privacy policy at any time, these changes will be reflected in this Privacy Policy.

Information Collection and UseTjäreborg may collect information from its users at several different points on our website. We may collect and process the following information about you:

IP DetailsWe may collect information about your computer, including where available your IP address, operating system, browser type, referring URLs, page views and access times ("IP Details"). We use such information for system administration, to analyze trends, track user's movements and to report aggregate information to our advertisers and partners.

CookiesFor the same reason, we may obtain information about your general internet usage by using a "cookie" file which is stored on the hard drive of your computer. We may use both “session” cookies and “persistent” cookies on the website. We will use the session cookies to keep track of you whilst you navigate the website. We will use the persistent cookies to enable our website to recognize you when you visit.We use cookies to make your use of our website easier. Usage of a cookie is in no way linked to any personally identifiable information while on our website.

Personal InformationWe may collect and process the following data about you:

• We will collect certain personal information provided by you which may include your user ID, password, name and , email address. Additional information may be requested in future to improve the level of service we can provide you, and to allow access to additional Tjäreborg services.

• Any information that you provide by filling in forms on our website. If you contact us, we may keep a record of that correspondence.

• Information you provide to us when you complete surveys that we use for research purposes.

Use of InformationWe will use your IP Details, Cookies and Personal Information (together, your "Information") held about you in the following ways:

• To ensure that content from our site is presented in the most effective manner for you and for your computer.

• To provide you with information, products or services that you request from us or which we feel may interest you.

• To carry out our obligations arising from any contracts entered into between you and us.

• To allow you to participate in interactive features of our service, when you choose to do so.

• To notify you about changes to our service.

Data StorageAll Information you provide to us is stored on our secure servers. Where we have given you a password which enables you to access certain parts of our site, you are responsible for keeping this password confidential. We ask you not to share this password with anyone.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your Information, we cannot guarantee the security of your data transmitted to our site; any transmission is at your own risk. Once we have received your Information, we will use strict procedures and security features to try to prevent unauthorized access.

Links to third party websitesThis website contains links to other sites. In particular this website may direct you to the websites of third party flight or travel provider companies for you to make bookings. In order to book flights, you will provide personal data to the operators of such sites. Please be aware that we are not responsible for the privacy practices of such other sites. This Privacy Policy applies only to information collected by us via this website.

Sharing InformationIn order to provide you with a useful social experience when using Tjäreborg, we may give you the option to export information from Tjäreborg to third party applications and websites, including social networking sites such as Facebook or Twitter. We do not own or operate the applications or websites that you connect with and you should review the privacy policies of such websites to make sure you are comfortable with the ways in which they use the information you share with them.

Your RightsYou have the right to access personal data which you have submitted through the site. Where you are a user of our sign-in service, you can manage or remove your information from our database by accessing your profile through the My Account area of the site. By signing in to My Account you will have the option to manage your personal profile and preferences. .

How to contact usIf you have any concerns about this Privacy Policy or about data we may hold about you please contact us by clicking here.