Red Cross Customer Analysis Final Report December 2002 COMMUNITY CONSULTING CLUB 1 AGENDA Project Goals Methodology Survey Information and Response Rates Awareness Consumer Resources Budget/Decision Maker Organization Value Drivers Summary of Findings Recommendations Next Steps Appendix 3 4 5 7 10 11 12 14 15 16 17 COMMUNITY CONSULTING CLUB 2 Project Goals Identify companies or organizations that may be potential customers Determine what makes an organization likely to purchase goods/services from the Red Cross Pinpoint the factors that organizations use to evaluate partner relationships Provide recommendations to improve sales in the Health and Safety Services division COMMUNITY CONSULTING CLUB 3 Methodology Conducted Telephone Surveys for in-depth data gathering and higher response rates Coordinated with UMBS professors to ensure a valid random sample was achieved Utilized Red Cross database of customers and prospects Segmented Customers Non-Customer (Cold Calls) Red Cross Customer (Non-AED) AED Customer Determine Industries to be included in the surveys Healthcare Manufacturing Service Government Schools COMMUNITY CONSULTING CLUB 4 Survey Factors Organization Demographics Industry Type of organization Size Important values to companies when purchasing health and safety products Decision-maker for purchase of health and safety product Current Awareness of Red Cross products and services Annual Budget COMMUNITY CONSULTING CLUB 5 Survey Response Rates Responses were from a wide variety of industries Non-Customer Red Cross Customer AED Customer 29 Responses ~ 10-15% Response Rate 32 Responses ~ 10-15% Response Rate 15 Responses ~ 50% Response Rate Govt. 4% Other 7% Govt. 20% Other 14% Service 45% Govt. 7% Retail 26% Serv. 34% Retail 13% Mfg. 14% Mfg. 7% School 11% Service 41% School 31% Mfg. 13% School 13% Approximately 400 total calls were made over a 3 week period in November COMMUNITY CONSULTING CLUB 6 Awareness : Non-Customers •Extremely High awareness of the Red Cross and its mission to train individuals in First Aid/CPR •Medium awareness of AEDs •Low awareness that the Red Cross places AEDs •Extremely low market placement of AEDs Percent Awareness 100% 90% Percent 80% 59% 60% 40% 38% 31% 20% 7% 7% 3% 0% Purchas e CPR & 1s t Aid Aware Red Cros s Offers CPR & 1s t Aid Aware of other Com panies that Offer CPR Aware of AEDs Purachas ed an AED Aware Red Cros s Sells AEDs Aware of other Com panies that Sell AEDS Cate gory COMMUNITY CONSULTING CLUB 7 Awareness : Red Cross Customers •High awareness of the Red Cross and its mission to train individuals in First Aid/CPR •High awareness of AEDs •Medium awareness that the Red Cross places AEDs •Extremely low market placement of AEDs Percent Awareness 100% 100% 88% 81% Percent 80% 57% 60% 40% 13% 20% 7% 7% 0% Purchase CPR & 1st Aid Aw are Red Cross Offers CPR & 1st Aid Aw are of other Companies that Offer CPR Aw are of AEDs Purachased an AED Aw are Red Cross Sells AEDs Aw are of other Companies that Sell AEDS Categories COMMUNITY CONSULTING CLUB 8 Awareness : AED Customers •Nearly 75% of all purchasers of AEDs from the Red Cross became aware of AEDs through other Red Cross sponsored events or people trained by the Red Cross. AED Awareness Generation Other 27% Upsold from CPR/1st Aid Courses 53% Advised by Influencer 20% COMMUNITY CONSULTING CLUB 9 Consumer Resources Potential Customers will use a variety of channels to research health and safety purchases Contact the Red Cross Influencer (EMT, Nurse, Friend or Relative with previous training) Internet Yellow Pages COMMUNITY CONSULTING CLUB 10 Budget and Decision Makers •Small companies: Possible to communicate directly with the decision-maker. •Large companies: Necessary to navigate several levels of bureaucracy, often having to communicate with the corporate office in order to sell goods/services locally. Fewer than 200 employees Decision-maker Annual Budget •President •Owner •Influencer Greater than 200 employees •Committee •Human Resources •Specialist (Risk Mgr.) •Corporate Office 88% less than $5K 77% less than $5K COMMUNITY CONSULTING CLUB 11 Value Drivers Consistently the most important factors named were the previous relationship an organization had with the Red Cross and a recommendation from a colleague, friend or relative. 10.0 AED Generic Customers 9.0 Cold Call 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Price Relationship Recommendation Adtl Services Additional Products Professional Sales Process COMMUNITY CONSULTING CLUB 12 Sample comments from selected surveys ‘We continue to do business with the Red Cross because they always provide quality training and we support the goals of their organization’ ‘We get recertified every year, and we never even think of getting training from another organization’ ‘Whenever we need any type of safety training, the first organization I think of is always the Red Cross’ COMMUNITY CONSULTING CLUB 13 Summary of Findings The Red Cross’ brand recognition is extremely high. The majority of people are aware that the Red Cross offers First Aid/CPR training Approximately 80% of survey respondents indicated that the Red Cross is the first and only organization they contact for First Aid/CPR training Those who continue to purchase goods/services from the Red Cross do so because of their positive relationship with the Red Cross in the past New customers purchase goods/services from the Red Cross because of general awareness of the products offered or based on the recommendation of an “influencer” Consumers value the support that a Red Cross contact provides them, but they prefer not to be directly solicited COMMUNITY CONSULTING CLUB 14 Recommendations Continue to cross-market products at Red Cross training classes and events Educate the influencers – build a pyramid of involvement with the Red Cross Manage customer relationships to induce repeat purchases Focus effort on retaining and mining current customers Ensure potential customers have ready access to information about Red Cross products Concentrate marketing efforts on partnering with local civic, religious, and employment organizations Use Border’s as a case study in the proper way to approach large companies to sell goods/services Continue to sell to U of M / EMU COMMUNITY CONSULTING CLUB 15 Next Steps and Additional Projects Revisit marketing contact strategy Update database and actively contact companies to maintain a working relationship Evaluate the current web positioning strategy Identify influencers and organizations with which to partner Initiate a study to increase retention ratios COMMUNITY CONSULTING CLUB 16 Appendix COMMUNITY CONSULTING CLUB 17