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Building a Customer Management FrameworkManagement Framework
Creating an Institutional capability
Ajay KelkarC it I diCequity, India
Agenda
Customer strategyMarketing-IT dilemmaData based Marketing roadmapBuilding blocks for Enterprise marketingBest Practices to support Customer strategy
Building Blocks for Customer strategy
B ildi bl k f C t Building blocks for Customer strategy
Marketing programs that create substantial valueMarketing programs that create substantial valuerequire four integrated elements:
A strategy for managing customer relationshipsthat is tied to business economicsthat is tied to business economicsCompelling, well-executed programs that drivecustomer value leversTechnology to support data management andTechnology to support data management and
customer experienceThe organization that underpins the ability todeliver and sustain the first three elements
High performing companies create the structure, skills & processes to leverage customer data
Customers must be your i i i i lorganizing principle
How to convince your CEO to make the leap:– Set clear expectations and define roles with your
CEO.Define customer groups with your strategic planning– Define customer groups with your strategic planning function.
– Build a business case with finance.– Identify technology gaps with IT.– Develop a culture strategy with HR.
Maturity model for customer-centric marketingcustomer centric marketing
• Business need: Drive customer-focused strategy across lines of businessF C t t t t i d t t
Strategic• Focus: Customer segment management, customer experience, and contact
strategy• Benefit: Delivering on corporate business goals: revenue, customer
profitability, share of wallet
g
• Business need: Program optimization within business• Focus: Consulting on micro-segmentation, program strategy
and calendar
ConsultativeCustomer-
focused
and calendar• Benefit: Incremental revenue through program innovation
(e.g., new channels, program integration, etc.)
• Business need: Increase campaign velocity and ResponsiveValue
Service-f d
individual campaign ROI within lines of business• Focus: Targeting analytics (e.g., response
propensity) and operational excellence• Benefit: Improved response and ROI
Responsive
focused • Business need: Drive efficiency throughconsolidated data, skills, and operations
• Focus: Building an integrated data asset • Benefit: Cost savings, new revenue streams
Tactical
g
SophisticationSource: Forrester
Who is strategic today?g y
Strategic• Gaming/Casinos
Few marketers have Consultative
g• Retail banks (a few)
• Travelreached the strategic levelMost “sophisticated” groups are between consultative Responsive
• Catalog
• Consumer creditand strategicIndustry and business model influence maturity level Tactical
• Consumer goods
• Insurance
• Consumer goods• Pharma
Is evolution necessary?Is evolution necessary?Strategic
Customer strategy
Ownership of the integrated data asset is a critical first step
Consultative
P f
Customer strategy
pAnalytic expertise enables transition from tactical toresponsive role Responsive
Program performance
Improved planning and multi-channel expertise enables transition from responsive toconsultative role
Tactical
Effi i f
Campaign performance
consultative roleDevelopment of customer-focused insights — and C-level buy in — enables transition to
Efficiency -- economy of scale
ystrategic role
Bridging the gap between IT & Marketing
Bridging the IT/Marketing Bridging the IT/Marketing chasm
Marketing needs :– To move quickly- as the environment changes– Quick execution: to get things done!– Needs to show ROI
IT needs:– Clearer forecast of where marketing wants to go!– A budget– A budget
Bridging this gap is key to building a Customer management frameworkg g g p y g g
Getting the enterprise dataGetting the enterprise data-rich & information-ready
Data is your competitive Data is your competitive advantage
What is the roadmap for Data based marketing?
Data-based marketing roadmap
Three critical ingredients for a Data led strategyD l i A l ti l it– Developing Analytical capacity
Can be done with a focussed set of people who can then drive broader “change”
Process based Marketing a tomation– Process based Marketing automationCreating “process” mindset in marketing is difficult-do it before you automate
Establishing a Data warehouse or Data mart– Establishing a Data warehouse or Data martLimit the data that you put into the mart Do not design your datamart with statistician's needs in mind
Marketing Technology backbone backbone –The power is in the data
Building blocks for Enterprise marketing
Building blocks for Enterprise marketingEnterprise marketing
Build Predictive k ti itmarketing capacity
Focus on the Customer experience
EnableMarketing
t ti Customer experienceautomation
Building blocks for Enterprise marketingEnterprise marketing
Building Predictive marketing capacity
Build Predictive Marketingcapacity
capacity– Creation of an advanced
analytics groupFocusing on the Customer gexperience– Building Customer lifecycle
programs
Focus on the
Customerexperience
EnableMarketing automation
– Key focus on customer on boarding
Marketing automationC f l d– Creation of a six sigma led automation based process
Building Predictive marketing capacitymarketing capacity
Creating “quick t ti ” d k t
Build Predictive Marketingcapacity
segmentation” decks to “seed” business ideas
– Profiling credit card “revolvers”
Use analytics to drive Use analytics to drive product development
– Feature development basis customer behavior
S l b
Focus on the
Customerexperience
EnableMarketing automation
Solve strategic business problems
– Portfolio segmentation to identify “balance builders” y
Focusing on Customer experienceexperience
Creating customer lifecycle th t dd
Build Predictive Marketingcapacity
programs that address:– Acquisition– On Boarding
Usage– Usage– Dormancy reduction– Proactive retention
Focus on the
Customerexperience
EnableMarketing automation
Enabling Marketing g gAutomation
Start small & automate a robust Build
Predictive MarketingcapacityStart small & automate a robust
processDeploy a Marketing automation process across the enterprise:
capacity
– Leveraging the customer base to optimize returns and bottom-line revenue Focus
on the
EnableMarketing automation
– Increase customer profitability through deeper, stronger customer relationships
Customerexperience
automation
Best practices for Enterprise Marketing
Best Practice 1: Developing Analytical capacity
Developing Analytical Developing Analytical capacity
Create a central Analytical team- give it full i ibilit i t b ivisibility into business
Focus on selected business driversCreate insights about that business driver in shortest possible timeC t i f t ti d KCreate a series of segmentation around Key business issues and not one “catch all segmentation”segmentation
Actionable Analytics™ is important-it should lead to business results
Analytics must influence Analytics must influence decisions
Create Customer-specific metrics and d d scorecards and
Embed these into performance l ti i ti d fi i l evaluations, incentives and financial
plans.
Best practice 2:Data Stewardship
The Strategic value of Customer dataCustomer data
IMPLEMENT a Data Stewardship Program– Along with the Brand and Goodwill, the other
high-value off the balance sheet asset will be the Customer Data richness.the Customer Data richness.
– There should be a Data Steward who will be cross-functional (Marketing / IT / FinCon)
Best practice 3:Data Readiness
Data Readiness
Data would never be ready!Move forward with “what you have”Create a hybrid structure to pull data manually from multiple source systemsGET Data Acquisition SLAs from IT– IT to create business structures to manage data
velocity expectation and assign clear SLAs for data supportdata support
Creating Data Preparation Creating Data Preparation Capability
Data preparation is 70-80% of the bl !problem!
A variety of business groups would be h i th d t !chasing the same data!
A lot of Business groups are looking for similar data!looking for similar data!
The convergence of business strategy across different functional areasis driving a new Integrated Enterprise view of data
Relationship Optimization
CRM
Financial PerformanceO ti i ti
Risk Optimization
CRM
FinancialRiskOptimization
p
Operations Process
Operations & Process Optimization
The data overlap between each functional driver is high producing anEmerging trend towards a single physical enterprise wide EDW
Building a Marketing Building a Marketing database
Should be built with “end use” in mind-not “h th d t ill b t d”“how the data will be stored”.Based on Marketing programs the end users
illwill run.Should provide ability to track response and provide ROI measurementprovide ROI measurement
Building a Marketing Building a Marketing database
Create a customized database – Extract data from source systems and build a
customer centric data martDo data transformations and create a customer– Do data transformations and create a customer analytic record which will drive all analytics
– Develop data preparation utilities and data models for segmentation and predictive analytics
DM
Marketing Database ETL Framework
B i
Contact History Update
Transaction Update
Files Business Operations
Systems
Customer Contact
Customer Scoring
Analytic Models
Phone & Phone
DB’s
Marketing Database
Data
Hygiene
Customer Enrichment
Response
Matching
Data
Purchased Data
Response Rules
pDetermination
Householding
Consolidation
AudienceRules
Rules
Best practice 4:Change management
Create a framework for Create a framework for Change management
Plan for Change ManagementD t d ti t h tDo not underestimate change management– Get in experienced consultants,who understand
business & technology– Drive changes in structure and incentives– Business and Campaign target alignment
Change management can cost 3 to 4 times more than Technology investments
Best practice 5: Convince top management
Convince Top management
Get top management buy-inObt i t t b i f C t Obtain top management buy in for Customer segmentation– a profitability based framework to plan a profitability based framework to plan
campaignsGet your CFO on your side
Getting top management support for Funding– Selling to the CFO by establishing clear ROI
framework
Best practice 6: Think of Marketing as a Process
Think of Marketing as a Think of Marketing as a Process
Think Process efficiencyRigorous Campaign process – Planning,development,execution(six sigma)– Environment will change-build “privacy
views” into your process
Best practice 7: Understand Technology
Understand the Technology Understand the Technology agenda
Get your team to understand technologyTechnology will enable customer centricitycentricity– understanding the language of IT folk
Use Technology to help you to make the “data talk”
Best practice 8: Change the Talent mix in marketing
Create new capabilities
Change talent mix in your marketing teamA mix of Left & Right brain skills
d t di t b h i d – understanding customer behavior needs analytical skills (audience knowledge more than media)
– Taking action needs a mix of technology and creative skills
Partnering enterprises to optimize marketing performancemarketing performance
Value extraction from CRM technology takes time
4 A robust solution creates value byBring the right skill
sets into play
A robust solution creates value by bringing together the right skill sets
needed
Business & Business & MarketingMarketingStrategyStrategy
11--toto--1 1 Marketing Marketing ProgramsProgramsReturnReturn
Business & Marketing Strategy
Turning data to $$ requires a variety of skill sets
CRM & Data CRM & Data
s (Rs)s (Rs)CRM & Data warehousing
1-to-1 Marketing Programs
warehousingwarehousing
Takes 3 to 5 years to put data and infrastructure foundation in place and even longerTakes 3 to 5 years to put data and infrastructure foundation in place and even longer to develop human capabilities, a fact-based culture and “success stories”
How will Cequity make a difference?How will Cequity make a difference?
Actionable Analytics Tools
P
Third-partycreative Services
Smart Campaigning
Event driven marketing
Process
Peopleend-to-endsupport Peopleend to end integrated solution
Cequity will accelerate ROI from the CRM investments thro’ quicktime-to-market strategies, operational support and execution excellence
Our Mission
To combine data technology andTo combine data, technology andbuild actionable analytical marketingservices to accelerate ROI-driven, ,real-time customer-engaged marketing.
Contact us at www.cequitysolutions.comContact us at www.cequitysolutions.com
Thank YouThank You