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11658 Develop customer loyalty strategies for direct marketing

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11658 Develop customer loyalty strategies for direct marketing

     11658 version 2

     20-Jan-10

     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 2010

     11658 version 2

     20-Jan-10

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    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 2010

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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 2010

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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.

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    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.

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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 2010

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    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 2010

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