Af­ter the global PR dis­as­ter of the failed Sam­sung Note 7, Sam­sung Elec­tron­ics NZ'S mar­ket­ing team wanted to make sure it could com­mu­ni­cate di­rectly with cus­tomers, and not rely on third-party re­tail­ers.

New Zealand Marketing - - The Radio Bureau -

The Chal­lenge

At the end of 2016, Sam­sung had a sig­nif­i­cant mar­ket share in New Zealand mo­bile with more than 1.6 mil­lion peo­ple choos­ing Sam­sung de­vices, but the direct re­la­tion­ship with cus­tomers was low. Sam­sung’s mar­ket­ing team had been talk­ing about the im­por­tance of datadriven mar­ket­ing for years, but the re­al­ity was the cul­ture was driven by the allpow­er­ful sales cat­e­gory and re­la­tion­ships with tel­cos and ma­jor re­tail­ers. Mar­ket­ing as a func­tion was sec­ondary. As the cus­tomer ex­pe­ri­ence for mo­bile tends to be held with re­tail­ers and tel­cos, mak­ing direct con­tact with cus­tomers was ex­tremely dif­fi­cult. With the ma­jor­ity of Ki­wis mak­ing a pur­chase of white­ware or tele­vi­sions through re­tail­ers such as Noel Leem­ing, the lack of con­tact with cus­tomers ex­tended across Sam­sung’s en­tire prod­uct range. With­out its own loy­alty pro­gramme, Sam­sung was al­ways vul­ner­a­ble to sales cam­paigns fea­tur­ing ri­val prod­ucts from re­tail­ers who con­trolled the cus­tomer re­la­tion­ship. Sam­sung’s re­search val­i­dated the ob­vi­ous, that con­sumers were emo­tion­ally en­gaged with their de­vice’s brand, but not the re­tailer. To re­duce its vul­ner­a­bil­ity to ag­nos­tic re­tail com­pe­ti­tion, Sam­sung needed to find a way to gain a direct re­la­tion­ship with cus­tomers with­out up­set­ting re­tail­ers.

The Re­sponse

Af­ter the ma­jor set­back with the failed Note 7 in late 2016, 2017 saw Sam­sung un­der­go­ing a mas­sive rep­u­ta­tion and fi­nan­cial re­cov­ery phase and em­pha­sis was placed on re­align­ing strate­gic pri­or­i­ties to re­build brand trust; strengthen brand ap­peal; and drive in­cre­men­tal sales across Sam­sung cat­e­gories. With Sam­sung’s di­verse range of apps, its cus­tomer sup­port cen­tre, war­ranty regis­tra­tions and sources of trans­ac­tional data, the idea was posed that cus­tomer data could be col­lected through these touch­points.

The Re­sult

As a re­sult of this pro­gramme, the team has pro­vided the busi­ness with em­pir­i­cal ev­i­dence of the power of data. The im­pact on the cul­ture of Sam­sung is far reach­ing. For the first time, the in­tel­li­gence that is held by own­ing its own data has been demon­strated pow­er­fully and the New Zealand sub­sidiary is lead­ing the way in Sam­sung’s SEA re­gion. Cul­tur­ally, the prod­uct sales teams are now ac­knowl­edg­ing the re­cent mar­ket­ing suc­cesses, re­sult­ing in an in­crease in the mar­ket­ing team’s in­ter­nal rep­u­ta­tion and in­flu­ence. Ex­ter­nally the busi­ness pain point has mit­i­gated now Sam­sung is able to en­gage with the ma­jor­ity of its cus­tomers at a one-to-one level. The team has con­structed a pro­gramme that has en­abled a multi-seg­ment tar­get­ing and mes­sag­ing ca­pa­bil­ity.

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