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
Thank YouThank You