Unica Building A Customer Management Framework

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


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


Solve strategic business problems

– Portfolio segmentation to identify “balance builders” y

Focusing on Customer experienceexperience

Creating customer lifecycle th t dd


programs that address:– Acquisition– On Boarding

Usage– Usage– Dormancy reduction– Proactive retention

Focus on the

Customerexperience


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


– 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