Accelerating Customer Insights & enhancing Business impact

Accelerating Customer Insights

Ajay Kelkar,Cequity

“Marketing so insight-led that it feels like a service”

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’sImperatives!

• Relevancy and readiness• Customer understanding• Customer experience and relationship• Be ready when the customer is ready

• Master especially the internet & mobile channel

Every Marketer’sImperatives!

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.

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.

Automating Campaign Management

Creating Business impact using Technology!

Technology can spot Event triggers….

“ Let me find a group of people to talk about it.”

“ I have an offer …”

offer

Traditional Campaign Management

“ Let me find the best offer to fit this person ’ s need. ”

offeroffer

offeroffer

“ Let me find the best offer to fit this person ’ s need. ”

offeroffer

offeroffer

offeroffer

offeroffer

“I have a person with a change in behaviour that

suggests a need…”

EBM Campaigns

Source: OCBC bank ,Singapore

Global Strategy – Targeted campaigns and right periodic offer Delivery

Define Objectives

Define Programs

Design Strategies

Predictive Analysis

Optimize Contacts

Execute Campaigns

Integrate w/Channel

s

Monitor Results

1 2 3 4 765 8

Marketing automation

Responses

eMessage

Call Center

Electronic offers & Responses

General output files & Responses

SFA

Contact events

Adapted offers

Plan Campaign

Target Metrics

Preliminary counts

Model

Customer Value Behavior Segments

Propensities

Campaign

Optimized contacts

Optimize

Proposed offers for contacts Rules &

Constraints applied

Creating a Customer marketing factory

Lessons from the Shop Floor at HDFC bank

Looking at Marketing differently

• Understand customers at individual level not only portfolio

• Treating them with “one view”• Using data to build “profitable

conversations” with customers• Use Marketing automation technology

to build scale

Creating an Analytical marketing factory

2003 -The Journey Begins

• Back then– We were launching 1 (one) Data

based campaign per quarter!– In the absence of Analytics and given

the huge customer base, all the bank could do was :• Launch Data based campaigns with

simple filters and segmentation

2007: Extracting ROI – Proving it works

• Analytical campaigns delivered ROI of over 350% on life to date investments

• Increase in Campaign velocity: from 4 to >1400

• More critically established role of analytics in strategic portfolio management

Best practices for Enterprise Marketing

Here’s my take!

Best practice #1

Plan for Change Management• Do not underestimate change

management– Get in experienced consultants,who

understand • business & technology• Drive changes in structure and incentives• Business and Campaign target alignment

Can cost 3 to 4 times the technology investment

Best practice #2

Get top management buy-in• Obtain top management buy in for

Customer segmentation– a profitability based framework to

plan campaigns

Best practice #3

Get your CFO on your side• Getting top management support

for Funding– Selling to the CFO by establishing

clear ROI framework

Best practice #4

Don’t forget the power of data quality

• Evangelize the data quality movement– good data is the bedrock– P&L heads need to be sensitized

Best practice #5

Think Process efficiency• Rigorous Campaign process

– Planning,development,execution(six sigma)

– Environment will change-build “privacy views” into your process

Best practice #6

Believe in the power of marketing automation

• Automate the Marketing process– use technology to access multiple

databases,do the statistical modeling and launch campaigns

Best practice #7

Get your team to understand technology

• Technology will enable customer centricity– understanding the language of IT folk

• Use Technology to help you to make the “data talk”

Best practice #8

Change talent mix in your marketing team

• A mix of Left & Right brain skills– understanding customer behavior needs

analytical skills(audience knowledge more than media)

– Taking action needs a mix of technology and creative skills

Putting Left Brain Marketing to work

• Centralize customer data in one place• Don’t isolate the “Insights” function-

make it central to strategy!• Build marketing strategy around

audience knowledge (not creative or media)

• Invest in an “Insight Specialist”-vendors who specialize in extracting value from data!

The bottom line

• Technology is making marketing a left-brain discipline

• And CEO’s are demanding accountability from Marketing & IT spend!

Partnering enterprises to optimize marketing performance

Our Mission

To combine data, technology andbuild actionable analytical marketingservices to accelerate ROI-driven, real-time customer-engaged

marketing.

www.cequitysolutions.com

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