Employing Data-Driven Engagement to Increase Customer Loyalty

Michael Lummus

Digital Marketing Strategy, Teradata Applications

@lummusm | www.teradata.com/datadrivenmarketing

Employing Data-Driven Engagement to Increase Customer Loyalty

2 1/29/2014 Teradata Confidential

THE STATE OF MARKETING AND LOYALTY TODAY







2008: 6.15

2012: 5.68




LOYALTY In the midst of all this…



50% of consumers are open to any auto brand when they begin the shopping process

79% of car shoppers research vehicles online


OtterBox:

A case study - building a loyal

customer base for a premium product

in a commoditized market


Building Brand Loyalty

1. Connect with Customers

2. Anticipate Needs

3. Consistently Deliver on Quality

Curt Richardson Founder and CEO, Otterbox

1. Connect with Customers

2. Anticipate Needs

3. Consistently Deliver on Quality


Connect with customers

Anticipate Needs

Consistently deliver on

quality

Relationship-based

channels

Predictive analytics

Multichannel metrics

Data

-Driv

en

Marketin

g

Data-Driven Marketing Drives Brand Loyalty B

ran

d L

oyalt

y


Download the full results: www.teradata.com/Teradata-Applications/Capabilities/Data-Driven-Marketing/

http://www.teradata.com/Teradata-Applications/Capabilities/Data-Driven-Marketing/








Data-Driven Marketing Execution:

40% graded themselves C or lower


Marketers Under Pressure

of marketers feel pressure to

become more data-driven

Source: Teradata Data-Driven Marketing Survey 2013, Global


Marketers and Data

of marketers believe that data is

their company’s most

underutilized asset



Efficiency in Marketing

of marketing departments

have embedded a data-driven

marketing culture into their

standard processes




of marketers said

data-driven marketing

contributed to a better

business result,

more revenue or

competitive advantage

98%



A Data-Driven Marketing Transformation

Intent

Behavior

Customer Purchase


Data-Driven Marketing drives business results.

800% Total ROI

20% increase in conversion rates

50% reduction in catalog circulation while increasing revenue

27% uplift in sales per email

UK Marketing Week

award for best

“Data-Driven Marketing”

Learn more: http://www.teradata.com/video/Integration-unleashes-the-power-of-online-data/


Data-Driven Marketing: How Do You Do It?

conversion path

customer

behavior

affinity

purchase

response

website

mobile

social

attribution

spend

process

segmentation

decision offer

governance

preference

compliance

delivery

ENGAGE With the right

message in the

right channel

EXPLORE Customer data

to develop

new insights


Insight begins when we develop a brand understanding of the customer.

Capture behavioral response across digital channels

Connect the customer’s digital journey with their transaction history

Tie the digital journey with the offline journey Match interactions with purchases Manage and access the customer data from various sources

28 1/29/2014 Teradata Confidential 28

Customer’s Experience

Today’s Experience: Frustration and Silos


Marketing Trends

71%

71% of

marketers will

implement a big

data solution

within the next

2 years

<10%

Less than

10% of

marketers use

their data in a

systematic

way

Just 18% of

marketers have a

single view of the

customer…but it is

considered a top

priority for future

investment

18%



“We have business with 4.8 billion consumers, and we'd like to think that we can have a relationship with each. And yet where we were, our relationships were very fractured. With our brands and our countries, we had a lot of different methods and systems and processes to track that consumer data and the relationship. And there was really no way that we could keep on top of that.“

Tim Butler, Director Consumer Solutions, Global Business Services

Procter & Gamble


Procter & Gamble’s 1, Consumer Place “It's the idea of the home for consumer data.”

4.8 Billion

Consumers

180 Countries

50 Leadership

Brands

$84 Billion

Sales

Integrated

Consistent

Secure


“Rather than have 15 markets do the test 15 different times, we're able to do the test in one market and then share the results, and then they execute the insight out of that in their own relevant way for their market...It’s better and smart business.”

Learn more: http://blogs.teradata.com/customers/proctor-gamble-data-driven-marketing-to-4-8-billion-people/

http://blogs.teradata.com/customers/proctor-gamble-data-driven-marketing-to-4-8-billion-people/






















Align experience design with customer journeys Develop behavioral models incorporating actions and affinities Manage revenue with campaigns aligns to conversion events

Competitive advantage is gained by uncovering and reacting to unique insights about customer behavior.




Brands “Liked”

Media “Liked”

Segment A

Segment B

Segment A

Segment B

Integrate Social Preference for Segment Profiling

• Segment or populate dynamic content based on brand or product preference

• Better understand customer psychographics

• Inform media spend

• Identify predictive purchase indicators


Marketers are shifting their thinking from the Funnel to the Path.

Consumers don’t move neatly down a funnel in a single channel. New analytical techniques are needed.


Can you guess the most buzzed-about event at South by Southwest Interactive 2013?



The half-life of a YouTube video is 6 days. Agile insight development and deployment is required to capitalize on consumer trends.


Make agile adjustments to marketing efforts based on discoveries Incorporate behavior for more accurate segmentations and more

relevant offers

Insights must be converted to a decisioning framework.


A Customer Interaction Hub is a rules engine that decides which message to deliver in the moment of engagement.


International Speedway Corporation

Multi-source data on 3 million fans 2500 marketing projects 2400 segments 1000 email campaigns 130 marketing users

A single marketing hub to manage:

Learn more: http://www.teradata.com/videos/ISC-Creating-Number-One-Fan-Experience-with-Data/

http://www.teradata.com/videos/ISC-Creating-Number-One-Fan-Experience-with-Data/


















Enable digital strategies to present the right message based on response

Deliver targeted content based on customer and past response

Execution combines content with intelligence to create exceptional experiences.


Message delivery leverages multiple data sources.

Triggered by birthday

Team based on location or “like”

Customer’s name

Customer Database

Sources: Destination CRM, Social Data Redefines Marketing; Anand Patel, The NFL Truly Personalizes Email Marketing

Relevant offer based on customer behavior

Social Profile Data


Integrated content drives fresh relevance.

Customer Reviews

Include peer product reviews in email messages

Theoretical Example Sources: Destination CRM, Social Data Redefines Marketing; Anand Patel, The NFL Truly Personalizes Email Marketing



Twitter Feed

Feature latest Tweets in emails to encourage Twitter follows and deliver fresh content




Product Recommendations

Feature popular items in emails to encourage brand affinity and sales



The Result?

• Customer Database

• Website

• Customer Social Profile • Brand Social Profile

• Product Reviews

Highly relevant and personal messaging through integrated cross-channel data sources.



Then measure, iterate and improve.

conversion path

customer

behavior

affinity

purchase

response

website

mobile

social

attribution

spend

process

segmentation

decision offer

governance

preference

compliance

delivery

ENGAGE With the right

message in the

right channel

EXPLORE Customer data

to develop

new insights


Learn More

Hear what more of our customers are doing today.

View additional videos at www.teradata.com/videos

Read “Big Data Marketing.”

The authoritative guide by Lisa Arthur, Teradata CMO, at

http://www.teradata.com/big-data-marketing/

Get the scoop on Teradata’s Data Driven Marketing Solutions.

Visit www.teradata.com/datadrivenmarketing

Talk to us.

http://www.teradata.com/videos







http://www.teradata.com/datadrivenmarketing

Technology

Employing Data-Driven Engagement to Increase Customer Loyalty