When it comes to customer information, these are the best and worst

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Transcript When it comes to customer information, these are the best and worst

Accelerating Customer
Experience
“Marketing so insight-led that it
feels like a service”
Ajay Kelkar,Cequity
Marketing trends!
The big picture
• Three technology trends are
disrupting marketing
• Media fragmentation
• Addressability
• Interactivity & Customer control
Trend #3: Interactivity
• Permits marketer to engage with
audience in two way dialogues
• Customer wants to manage her
relationship with the brand!
Brings in a huge amount of Customer data !
Marketing Imperatives!
Every Marketer’s
Imperatives!
• Relevancy and readiness
• Customer understanding
• Customer experience and relationship
• Be ready when the customer is ready
• Master especially the internet &
mobile channel
Every Marketer’s
Imperatives!
Services Marketing
Services Marketing
• While a service experience is “fragmented”
• You can hold a product in your hand
• A “Service” tends to be a “sum of many
parts”
• For a Retailer-right from the entrance, the
people, the ambience contribute to Brand
experience
“Sculpting a branding idea around packaged goods is
much easier. The bottle of Coke can’t talk back. It never
changes shape or color and if you don’t like how it is, it
won’t ever argue with you.”
“The retail store, the service provider, the Bank are
all much more complicated. You can’t hold them in
your hand. In fact, most times they can hold you in
their hands. You walk in and around them, besides
them...It is the experience which defines them.”
The Services economy
Creating a data deluge!
The Data rich economy!
• Almost 60% of GDP is from Services
sector
– Customer interaction with companies
increase!
• Growth of “Addressable media”
– large customer databases in Banks, Retail
&Telecom etc
• Availability of rich transactional data
– data leading to a “customer conversation”
Almost 400 million customers and growing!
60% Data & 100 % Execution
Gartner: Only 20% of enterprise will use more than 50% of the
total data they collect to gain competitive advantage.
Customer Experience-as
differentiator
Differentiate Customer
Experience
Source:
Forrester
Principle No 1: Obsess
about “Needs”
• Obsess about customer needs, not
product features.
– Rather than racing to bring new product
features to market, companies need to refocus
on the needs of their customers — who might
even want fewer features
Source:
Forrester
Principle No 2: Brand every
interaction!
• Reinforce brands with every interaction,
not just communications.
– Traditional brand messaging is losing its power
to influence consumers —
– that’s why branding efforts need to expand
beyond marketing communications to help
define how customers should be treated.
Source:
Forrester
Principle No 3: Company
mission
• Treat customer experience as a
competence, not a function.
– Delivering great customer experiences isn’t
something that a small group of people can do
on their own .
– everyone in the company needs to be fully
engaged in it.
Source:
Forrester
Customer Experience
Maturity
Source:
Forrester
Customer Marketing
Why customer marketing
• Availability of technology to
understand customer behavior
– Analytical and Marketing automation
tools available
– Analytical resources:large talent pool
Marketing to a segment of one -now possible!
Why customer marketing
• IT environment maturing-customer
data integrated in Datawarehouse
• Data size multiplying rapidly-HDFC
bank has over 5 terabytes of data
One view of customer is now possible
Key Business Ideas
• Build a core competency in “Data led”
marketing
– Analytics will be “the heart” of business in
the future
•
Move towards Web Analytics
– Internet is a training ground for “customer
pull” channels
• Customer behavior changes –spot them
as they happen…
– Event based IT architecture
– “Market so well that it feels like a service”
Start small,use Excel!
Move from data to insight to action
and close the loop!
Customer marketing
simplified!
• Keep it simple
• Be more Relevant to the customer
• Go one step at a time-Shoppers’ Stop
started by collecting visiting cards
• Don’t led technology overwhelm
you-keep investments within limits
Customer marketing
simplified!
• The most essential resources in any
Customer marketing program are
– a wealth of hypotheses about the
customer!
– and a variety of offers to test these
hypotheses.
Customer Loyalty
Management
Understanding What Must Be
Managed
"Marketers have developed an
insane imbalance between
obsessive customer acquisition
and negligent customer retention"
Why should we care about
loyalty?
The payoff of loyal customers
% Increase in Customer Value
Value of Increasing Retention by 5%
85
90
80
70
60
50
40
30
20
10
0
75
Credit Insurance
Auto Service
25
30
35
40
Source: Reichheld, Harvard Business Review Sept/Oct ‘90
45
50
Software
Building Mgmt
Distribution
Insurance Brokerage
Credit Cards
Retail
Why Are Loyal Customers
More Profitable?
• No acquisition costs
• Reduced servicing costs as they “learn” the
company
• They spend more
• They recruit new customers
• They are insulated against competitive
switching
• They are less price sensitive
The Relationship Management
Continuum
•
•
•
Like life, customer relationships follow patterns
Recognize the phases of a customer’s relationship
Respond with appropriate tactics
Acquisition
Introduction
• Consumer
introduced to
the brand
Courtship
• Sustain
awareness and
interest
• Incent trial
Loyalty Management
Honeymoon
• Solidify
relationship
Daily Life
• Grow
relationship
Lose
Interest
• Recognize it’s
happening
Try
Again
• Reemphasize
what matters to
them
Part
Company
• Give up when it
makes sense
Source: WCJ
Basic objectives for
customer relationship
Retain best,
management
most profitable
VALUE
customers
Acquire high
potential
customers
Make good
customers
better
Reconnect with
lapsed users
Maintain brand vitality
Key Principles of Loyalty
Source: Adapted
from WCJ
Principle #1
“One Size Fits All”
doesn’t work
• O-S-F-A marketing strategies
do not recognize differences
among customers
–
–
–
–
Needs/Wants
Experiences
Value
Potential
O-S-F-A
Principle #2
Acquisition and Loyalty
must serve one master:
profit
“Acquire with intent
to keep”
“Retain with intent
to profit”
Acquisition governs retention
Retention governs profit
Retain with Intent to Profit
Hilton HHonors Lapsed Member Letter
“Pay a $10
administrative
fee if you are
unable to
stay…”
Principle #3
Relevance is the key
to loyalty marketing
• Loyalty Marketing anticipates, plans for
and acts on moments of natural
transition, transaction and decision
• Loyalty Marketing reduces the
consumer’s decision-making complexity
• Loyalty Marketing is information
dependent
Trigger-Based Communications
Sears HomeCentral Service Contract
“Your Craftsman
lawnmower
caused you a little
problem in the
past.”
Trigger-Based Communications
AAdvantage Dining Birthday Mailing
Trigger-Based Communications
Landscaper New Homeowner Letter
Achieve relevance through customer
listening
• Take advantage of all contacts to learn about the customer
Customer
Surveys
App/
Warranty
Info
Customer
Knowledge
Base
Overlay
Data
Customer
Service
Customer
Contact
Staff
Customer Listening
Hertz #1 Club Gold Renewal Mailing
Customer Listening
OurHouse.com In-Package Survey
Customer Listening
Stamford Hospital Checkout Patient Survey
Principle #4
Manage the Customer
Experience
• Monitor it
– Especially when an intermediary
is involved
• Keep customers informed
• Admit delivery failure/mistakes
– Turn negatives into positives
– Learn from mistakes
Recognize delivery failure
Virgin Atlantic Flight Delay Apology
“I am very sorry
to advise you that
there will be a
delay to your
flight today.”
“As a gesture of
goodwill, I would
like to offer you an
additional 10,000
Freeway miles.”
Improve product delivery
American Express Merchant Coverage Insert
“Are there any
more places you’d
like to use the
Card? Tell us!”
Keep customers informed
MindSpring Merger Announcement
Principle #5
Manage the empty
spaces in relationships
• Don’t provide an opening for competitors
to intrude
• Reinforce value delivered
• Engage in (meaningful) dialogue
Maintain a Dialogue
Ford UK Owners’ Magazine
Principle #6
Use loyalists as an
incremental sales force
• Actively managing word-of-mouth is a
powerful Loyalty tool
– Intuitive “targeting”
– Greater credibility
• Create a win/win by rewarding the
customer
Reward Customers for Referrals
ebates.com Referral Commission Program
Reward Customers for Referrals
Amex Membership Rewards Member get Member Bonus
Partnering enterprises to optimize
marketing performance
Our Mission
To combine data, technology and
build actionable analytical marketing
services to accelerate ROI-driven,
real-time customer-engaged
marketing.
www.cequitysolutions.com
Thank You
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www.cequitysolutions.com
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[email protected]ysolutions.com
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