1 Red Cross Customer Analysis Final Report December 2002

2 AGENDA  Project Goals3  Methodology4  Survey Information and Response Rates5  Awareness 7  Consumer Resources10  Budget/Decision Maker11  Organization Value Drivers12  Summary of Findings14  Recommendations15  Next Steps16  Appendix17

3 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

4 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

5 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

6 Survey Response Rates Responses were from a wide variety of industries Non-CustomerRed Cross CustomerAED Customer 29 Responses ~ 10-15% Response Rate 32 Responses ~ 10-15% Response Rate 15 Responses ~ 50% Response Rate Approximately 400 total calls were made over a 3 week period in November

7 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

8 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

9 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

10 Consumer Resources  Contact the Red Cross  Influencer (EMT, Nurse, Friend or Relative with previous training)  Internet  Yellow Pages Potential Customers will use a variety of channels to research health and safety purchases

11 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 employeesGreater than 200 employees Decision-makerPresident Owner Influencer Committee Human Resources Specialist (Risk Mgr.) Corporate Office Annual Budget88% less than $5K77% less than $5K

12 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.

13 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’

14 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

15 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

16 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

17 Appendix