Cherry Tree Development

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Customer Lifecycle Contact Strategy April 12, 2005
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Customer Lifecycle Contact Strategy

• What is a Customer Lifecycle?
• A collection of stages a consumer will pass
  through while being a Fingerhut customer
• What is a Contact Strategy?
• A defined communication plan used to attract and
  service Fingerhut prospects and customers

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Customer Lifecycle Contact Strategy

• Why do we need a Customer Lifecycle Contact
  Strategy?
• We want to grow as a company and to do so, we
  need a plan. Documenting the strategy allows all
  areas of the company to speak the same language,
  take part in the process and stay in sync.
• A strategy ensures a consistent message to our
  customers across touch points.  A customer will
  receive consistent messages regardless of whether
  they see an e-mail, billing statement or
  catalog.  This enables us to continually provide
  customers with specific messages at strategic
  points in their life cycle.

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Customer Lifestages

• Prospects Consumers that we would like to do
  business with but have not yet chosen to do
  business with us
• New Customers that have made one purchase with
  Fingerhut
• Emerging Customers that have made at least one
  purchase and one payment with Fingerhut
• Mature Customers that have made at least two
  purchases and have had two credit line
  increases with Fingerhut
• Cash Customers that choose to use a major
  credit card, check or money order to make a
  purchase with Fingerhut

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Key Objectives

• To nurture as many customers along the life
  stages as possible
• As economically as possible (advertising expense
  and credit management)
• As quickly as possible, while ensuring a strong
  life time customer value
• While taking advantage of all customer contact
  points mail, phone, web and order packages

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What We Need to Remember

• Factors that lead customers to purchase from
  Fingerhut
• Convenient Payment Plans
• This is an acceptable and pleasant alternative
  to postponing
• a purchase - credit is available.
• Customer Need
• Has no or limited credit /has poor credit
• Need to conserve cash
• Additional credit source
• Product Selection
• Offer necessary, practical and vital products as
  well as those
• someone can aspire to own
• Implied Self Respect
• Customers need to feel appreciation that we gave
  them credit vs.
• resentment that they need credit.

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Example - Emerging Themes

• Broad Messages Used In Print and Over The Phone
• Welcome to Fingerhut
• You now have access to Better Living
• You are a valued customer important and
  responsible
• Fingerhut has a great selection of valued
  merchandise
• Education on the Fingerhut credit model
• Fingerhut provides fun and entertainment in the
  
• shopping experience access to sweepstakes,
  free
• gifts, membership services

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What does this all mean for me?

• Some Process Changes and New Scripts
• Orders
• New Credit Applications
• Credit Line Increase Requests
• And Then What?
• More process changes will take place over the
  coming months some will be manual and others
  system driven but our goal is to get closer to
  personalizing the sales and service efforts
• Please bring any ideas, thoughts, questions and
  concerns to your leads, training, quality, system
  specialists or manager

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What About Other Areas?

• System Projects
• PMP (Precision Marketing Platform) and TAM
  (Targeting and Analysis Mart)
• Customer Promotion and Contact History
• Customized Add On Logic
• More Credit Decisioning Logic
• Marketing and Merchandising
• Targeted Catalogs by Life Stage
• Data, data, data.Analysis, analysis, analysis