Mouse Trapping
Disney analyzes customers across business segments to build a better database
Tinkerbell flies over the Magic Kingdom, trailing golden flecks of light from her wand. Mickey conducts a rousing symphony while animated film images are projected on a fine sheet of water in the foreground. At Christmas, perfect snowflakes fill the Florida air. In the wonderful world of Disney, everything appears fluid and effortless.
And that’s as it should be. “We want everyone to have a quality experience,” says Dinah Keefe, Disney’s vice president of consumer relations management.
Few would argue that the monolithic entertainment company provides anything but a fantastic journey from theme parks and hotels to films and clothing, and beyond. Young, old, men, women, have a common love for Walt Disney Co.’s expansive offerings. “The reason we have such dedicated customers is because of the quality of the products — and that’s wonderful,” says Keefe. “But it’s been a one-size-fits-all approach.” That’s changing, however, as the mindset has shifted from simply presenting goods and services to the enchanted masses to defining and wooing specific groups with offerings that fit like Mickey’s glove.
“In the past, the focus has been on the product,” says Keefe. “To think CRM is to think about a segment and say, ‘Here’s a wonderful new program.’ The challenge is knowing who the guest is so we can provide a more relevant experience.”
Getting to Know You
To that end, over the past 18 months Burbank, CA-based Disney has done exhaustive analysis and mining of its major branded business units’ databases — Publishing (part of Consumer Products), Walt Disney World, Disneyland, the Walt Disney Internet Group, the Disney Stores, and some miscellaneous areas within Consumer Products — to create a combined warehouse of 31 million de-duped households. “Now we’re in the process of developing specific marketing strategies related to each segment,” says Keefe.
The first iteration is the Disney Club. The four-month-old program is comprised of the most loyal “guests” who are engaged with multiple aspects of the company’s offerings. More than 300,000 members pay an annual fee of $39.95 to receive unique merchandise offers and discounts. For example, in late January, more than 4,000 members were invited to preview the new California Adventure theme park at half-price before it opened to the public. And there’s talk of taking The Lion King on the road and giving club members first crack at the best seats.
The club affords Disney the opportunity to learn more about this segment’s buying habits across businesses, by tracking purchases through a magnetic card — whether in the Disney store or at the various theme parks. “The objective is to start with the high end of the affinity groups and understand them,” says Keefe, “but it is also to acknowledge and reward them.”
Disneyclub.com has been especially fruitful in collecting information. Aside from the usual name, address and privacy policy preferences, registrants are asked about their favorite characters, theme park preferences, interest in merchandise, number of children and their ages, and grandchildren. Kids’ ages is, naturally, one of the most important pieces of data when developing marketing strategies, says Keefe.
Gathering data online has brought about a significant increase in sales of both retail products and vacation packages. Return on investment, Keefe says, is measured in market share, and based on Disney Club evidence, Disney’s share is growing.
“We are seeing a higher spending level in Disney stores and on Disneystore.com,” she says. “We are seeing higher purchases per transaction because we are asking what interests customers and then telling them about products they want to know about.”
While consumers can enroll by phone, mail, or electronically, the objective is to provide a lot of incentive to interact online, including both daily and weekly promotions. Currently, about 30 percent of members register online, while 60 percent log on for information.
In a move to provide seamless service across channels, the company is leveraging the Internet to provide access to a variety of functions in retail outlets. Test kiosks in two New Jersey stores allow customers to log on and find items that are out of stock. They can also order theme park tickets or check availability at hotels. “Customers can get instant gratification,” says Keefe.
Children of All Ages
While the focus now is on high-affinity customers, targeted programs will eventually extend to other identified markets. “We don’t want to overlook anyone,” notes Keefe.
That includes families with young children. “Despite the fact that we have tremendous strength with that segment, we have a relatively small share of the total market,” she says. “We have an opportunity to develop an ongoing relationship with parents.”
On the drawing board is a plan to promote interactive games and educational toys to parents of children from infants to eight-years-old. “Our games are wonderful, but [they’re] not the first thing you would think of when you think of Disney,” she says.
Another potentially rich segment on the radar screen is what Keefe calls the “young at heart.” Data mining has revealed that empty-nesters purchase scads of Disney products and frequently visit the theme parks. They want to relive the best parts of their childhood. “How do we approach that market and develop products for them?” asks Keefe. “How do we appeal to their sense of magic?”
Keefe points to a host of initiatives in various phases of development that will ultimately “make every point of contact much more relevant.”
Walt Disney World, for example, is now testing streamlined check-in procedures for repeat visitors. Typically, when someone checks in, the desk rep or “cast member” runs through a laundry list of information including maps, events, and discussions of vacation planning. “That’s invaluable for a first-time visitor, but the repeaters don’t need an indoctrination,” says Keefe. “They would rather just go to their rooms,” and thus are contacted by phone or e-mail before their arrival to determine what kind of assistance they need.
In the same vein, a pilot program will give cast members the ability to personalize phone or face-to-face interactions with guests. “The most common complaint from loyal customers is that they’ve come to Disney 15 times and they’re treated like strangers. If the agent has access to some historical information, he could have a more meaningful conversation,” says Keefe. “If a guest hasn’t visited for two years, it gives the cast member the chance to say, ‘Welcome back.’”
And some day soon, a customer will be able to swipe a magnetic card at an in-store kiosk in search of a Bambi-themed baby gift, for example, and up will pop the entire catalog inventory and warehouse of related products.
Other nascent tests include the futuristic-sounding “personal navigator,” a kind of portable electronic tour guide that tells you where you are, directs you to points of interest, and gives you background about whatever you’re viewing.
“Disney is known for phenomenal service,” Keefe says. “We have to use our knowledge to make it even better. We want to figure out how to make it magical. We want them to say, ‘How did they do that?’”
David Miller, an entertainment and media analyst at Sutro & Co., San Francisco, thinks Disney’s strategy is on target. “It’s a great move,” says Miller. “Customers are becoming more sophisticated. The mantra in direct marketing is to customize and Disney recognizes that. So if they can tailor their offerings, that would result in higher per capita spending, and that’s what they’re after.”
Editor’s note: The preceding article was reprinted with permission from PROMO sister publication Direct, New York City.
