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CRM Assessment

10 Step Approach to Evaluating CRM capabilities and readiness

Statement of Understanding

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Creating and Strengthening relationships with customers is central to the CLIENT growth strategy. The purpose of this assessment is to provide a preliminary evaluation of CLIENT’s capabilities in the CRM arena with a particular emphasis on the social and digital channels. The primary output of this assessment will be an actionable roadmap that outlines sequence and rational for specific, near-term recommendations.

Response Outline

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o Introducing Experian Marketing Services

o Point of View (POV) on what to consider in evaluating a CRM program

o Our methodology for conducting a CRM assessment

o Partnership – anticipated CLIENT commitments / named account team

o Relevant case studies

o Pricing guidelines

EXPERIAN MARKETING SERVICES

Understanding who we are, what we do, and those we serve

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Experian is a Global Leader

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Competitor comparison Current work at CLIENT

Marketing Services

Credit Information Services

Decision Analytics

Interactive

Automotive

Interactive

Experian business groups Our vision

For our people, data and

technology to become a

necessary part of every

major consumer economy

around the world

Customer Intelligence Platform

You can’t build customer relationships if you don’t

have the right tools. 6

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The world’s

largest brands

depend on us every day.

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Focused on CRM

and customer insights:

• Provide analytical services for 10 / 10 largest retailers

• Provide analytical services for 9 / 10 largest financial services and banks

• Have built, deployed, or advised on hundreds of CRM programs

• In-house capability to deploy unified customer view across traditional, digital, and social channels.

• CRM partner for award winning programs at Amex, Restoration Hardware, William Sonoma, and Wells Fargo

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Why you should choose Experian

CRM OUTLOOK

Point of view on characteristics of a world class program

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11

WHAT AN OLD

MOVIE CAN TEACH

US ABOUT MODERN

DAY MARKETING

IF YOU ARE DOING

CRM RIGHT, IT

SHOULD FEEL LIKE

THE COURTSHIP

SEQUENCE

(minus the slapping!)

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ID’ing the customer Successfully growing relationships begins with the ability to define and identify the best customers

Multi-channel perspective The ability to chart future conversations is tied to the ability to trace response across campaigns, channels, and over time.

Consumer insight Data in itself is useless. It’s what’s done with data; how it can be applied to business decision making and the informed crafting of new creative that is valuable.

Communication plan If no one hears a tree fall, does it make a noise? The best insight in the world won’t activate if it’s not delivered. Control the sequence and cadence of messaging for optimal effect.

Response attribution When campaigns are deployed in field, you need to evaluate their impact.

Continuous improvement Everything known about the customer and learned about the effectiveness of marketing efforts needs to be re-cycled back into the programming process to insure incremental improvements are delivered.

Components of a Strong CRM Program Specific things to look for when evaluating a new program

Defining Customer Value Pulling together multiple dimensions of customers to better understand “best” customers

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Customer value

Who is he?

Interests

Persona

• Married

• Two Children

• Gets news online

• Follows the markets

• Works in financial services

• Owns a truck with high capacity towing

• Sportsman and power sports enthusiast

• Lives in MOSAIC cluster “Small Town Success”

• Rock and country music

• Sports and finance

• Social networking

You can’t begin to effectively build relationship strategies until you have a clear understanding of who your best customers are and what they look like.

From there you can then begin to define additional segments based upon their potential value to the brand and the likelihood of retaining and growing the relationship.

It’s also critical to base these segmentations on data that you can then harness to execute campaigns. If you can’t reach the segment, it’s ultimately a valueless scheme.

• Buys 12 times a year

• Baskets average $150

• Beer & Diapers

• Loyal to specific brands

• Multi-channel buyer

• Expected lifespan 7 years

• Reward program member

• Responds promotional offers

• House brand purchaser

Capturing Behavioral Interactions Visibility into all the channels or interaction, covering where and when engagement occurs

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SOCIAL

WOM Syndication

DIGITAL

Display Email Search Web

TRADITIONAL

POS Direct TV Loyalty …

Once you have an understanding of who your best customers are, you then need to be able to identify the channels and campaigns that are the most effective.

On the surface, this is intuitive, but in our highly fragmented, socially connected digital world it is difficult to realize.

Nurturing communication Cadence and sequence of messaging is dictated by customer persona and history of interactions

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No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

Communications with customers unfolds over time across channels. Well founded program strategy, therefore, will address the sequence and cadence of messages being delivered via multiple flights of creative to specific channels. The overall contact strategy should be optimized to individual preference and past response.

Creating Actionable Customer Insights Data itself is valueless, it’s the actionable insight that it engenders that is valuable.

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Common Attributes

• Gender: Female • Education: College • Age: 32 • Location: Chicago • Marital Status: Single

“Look at Me Now” “Smell the Roses”

Moving beyond the pen portraits. The value of the data comes alive when it can be applied against data derived customer segments to produce direction for positioning and content that is tailored to key points of interest.

AWARENESS ACQUISITION RETENTION LOYALTY

Campaign A Campaign A

Campaign B

Campaign B

Campaign B

Campaign C Campaign C

Campaign D

Campaign D

Campaign D

Campaign E Campaign E

Campaign F

Campaign F

Tracking performance Attributing response across channels, across time is critical for gauging effectiveness

Measuring marketing performance is about more than addressing the complaints of the CFO. To get better at something, at anything, you need to know what does and doesn’t work. Invoking a repeatable, reliable measurement framework, therefore, should be a key to the program.

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Continuous improvement The program must be run with an analytical discipline

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Awareness

Acquisition Retention

Loyalty

Visits

Friends

Nurtures

Experiences

Shares

Searches

Browses

Targets

The customer relationship process doesn’t have an end. When one purchase cycle ends, the next begins. It’s an ongoing continuum whereby marketers much constantly refine and reengage customers with new targeted messaging.

Marketers that get this will utilize feedback loops that tie marketing efforts to financial performance and leverage to improve future messages.

ASSEMENT METHODOLOGY

10-step approach to assessing your CRM capabilities

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CRM Assessment Methodology 10-step approach for establishing where you are and how to get to where you want to go

Goal Alignment

System Review

Channel Usage

Metrics

Organizational Readiness

Competitive Comparison

Benchmarks

Gap Assessment

Recommendations

Roadmap

1

2

3

4

5

6

7

8

9

10

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Week 1 Week 2 Week 3 Week 4 Week 5 Week 6

Goal Alignment

System Review

Channel Usage

Metrics

Organizational Readiness

Competitive Comparison

Benchmarks

Gap Assessment

Recommendations

Roadmap

Timeline If work commences during the first week of August, deliverables will be ready week of Sept 12th

Competitive Review

Marketing Review

Technical Review

Assessment

1. Goal Alignment Ensure all stakeholders understand and are committed to the requirements and outputs of assessment

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• Critical to ensure there is alignment between Experian as well as internal CLIENT teams

• Ensure understanding of deliverables is shared across all parties

• Serve as an advocate and ambassador for effort within CLIENT.

• Communication of critical dates and final delivery timeline

• Formalized in a 2-page summary

2. System Review Assess your technology infrastructure and it’s ability to support a targeted CRM program

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• We have a clear map of the known world

• Take inventory of all your deployed systems

• Review deployment across internal, external, and SaaS models

• Note redundancies and inconsistencies

• Assess cross system linkages

• Evaluate existence of, or possibility for SOR

• Preliminary PII audit of stored data

• Measure the “thickness of the walls” between systems

Luna Partners

Proliferation

Fra

gm

en

tatio

n

3. Channel Usage Identify where, when, how, and why your messages are being delivered across channels

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• Audit marketing calendar

• Identify all channels used

• Cross channel addressability

• Assess ability to capture response

• Rough tally of touches by channel

• Evaluate channel propensity

4. Metrics Review your internal depictions of customer, basis for lifetime value calculations, & marketing performance

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• impressions / customers

• avg. channel / customer

• avg. messages / customer / time

• response delay cross channel

• days awareness to acquisition

• estimated share of wallet

• attrition rate

• channel preference

• cost per acquisition

• most next likely product

• social influence

• sentiment

• lifetime value

• product affinity

• discount responsiveness

• …

• net impressions

• cost / impression

• cross channel effectiveness

• estimated cross channel response

• loyalty members

• loyalty transaction penetration

• transaction response time

• marketing asset / revenue ratio

• marketing attributable revenue

• media spend / revenue ratio

• channel / campaign attribution

• unique percentile

• two-way synch feed count

• key index count (wall thickness)

• unrealized value proxies

• …

Customer Insights

Performance

TARGETING

RELEVANCY

OPERATIONAL CONTROL

EFFICIENCY

5. Organizational Readiness The best tool in the world is only as useful as the hand wielding it

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• How silo’d are responsibilities

• Depth and breadth of separation

• Vertical separation. Are there player-managers, or clearly delineated roles

Skills Separation

• How multi-lingual are your marketers (traditional. digital, social, data, insights)

• Experience taking a campaign through all of it’s steps

• Familiarity with nurturing or episodic campaigns

While individual interviews are conducted, results are only presented in summarized format.

6. Competitive Comparison Conduct field research of your competitive, customer facing communication

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• Evaluate and document strategies of two retail banking competitors (Wells, BofA)

• Evaluate and document strategies of two retailers (Target, Nordstroms)

• Sign-up for accounts. Review website, email, direct mail, display, in-branch messaging, etc.

• Source industry reports, 3rd party opinion / review, etc.

CHANNEL EXECUTION

CHANNEL OPTIMIZATION

MULTI CHANNEL MARKETING

CROSS CHANNEL OPTIMIZATION

file based list processing

single channel, fire and forget

faster cycle times

Persisting results over time

scoring, modeling, and advanced segmentation

enabled across multiple platforms

voice of customer per channel

response attribution

recognizing channel preference

personalized interaction

consolidated view of customer

revenue / outcome causation

triggered and drip campaigns

7. Benchmarks Plot your marketing sophistication according to stages of engagement framework

BENCHMARK

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Ability to record multi-channel response and combine it with transactional and 3rd party sources into an integrated view.

Ability to model and analyze the data to turn into actionable insights that can be carried into channel.

Ability to layout a multi-channel plan of interaction that builds on response to build relevancy and timeliness

Ability to deliver coordinated messages across traditional, digital, and social channels

8. Gap Assessment Across all levels of the assessment, evaluate where CLIENT is behind, on or ahead of the curve

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Gap Assessment – is conducted across all phases of the assessment methodology, but focuses on the:

Customer data Systems review Channel assessment Applied metrics Competitive comparison

The relative capabilities are ranked on a detailed basis within each as basic, good. better, or best.

9. Recommendations Provide rational and explanation as to which gaps should be addressed and where most value lies

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Fast Track Assessment Opportunity MatrixECD Core Team Scores

Service Provider Leverage

Capability Enhancement

Processes

CRM Culture

High Level Measures

Marketing Metrics

Multi-Channel Choice

Competitive Knowledge

Customer Segmentation

Customer Transactional DataCustomer Profiles and

Analytics

Customer Product Dynamic

Customer Contact Strategy

Business Intelligence

Capability

Customer Marketing Database Tracking and Testing

Discipline

Cost

Feasib

ilit

y

High Low

Hig

hL

ow

Long Time to

Execute

Short Time to

Execute

Bubbles sized by Potential Benefit

White Outline indicates Jump Start

Opportunity

Near Term Program

Effectiveness Customer

Insight

Longer Term Strategic Initiatives

10. Roadmap Outline your plan of attack with prioritized recommendations and estimated effort levels

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12-month roadmap

13-week jump start

Roadmap Deliverable – Create roadmap and implementation plan to address each measurement challenge and marketing opportunity – recommendation for go-forward Resource requirements and

timing Durations and dependencies

of all initiatives Checkpoints to assess the

progress and success

Summary of Deliverables What you get at the end of the day

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• Assessment initiation summary outlining specific deliverables, timeline, and communication strategy for findings / broader interactions.

• Technology audit inclusive of map, inventory, and written evaluation of interoperability and the state of the data

• Cross-channel usage audit, intensity / frequency matrix, ability to deliver addressable audiences. Form of 5-slide summary

• Organizational readiness review. Summarized view of structure and cross functional skills. Form of 2-slide summary.

• Comprehensive competitive CRM comparison with benchmarks. Covers details of communication strategy as well as industry best practices around organization capabilities. Form of ~50-slide presentation.

• Gap assessment and recommendation review. Presented in a matrixed spreadsheet for easy sorting and analysis and a graphed opportunity chart.

• Roadmap. A high level effort and deliverable timeline that addresses the delivery of recommended opportunities and summarizes in a written executive summary.

TEAM EFFORT

Success requires commitment of key stakeholders

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Deployment Team Ensuring all the right resources are aligned and ready to go as needed

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Executive Sponsor

Relationship Manager

Technical Architect

Strategic Lead

Strategy Analyst

Strategy Analyst

MARCUS TEWKSBURY CRM expert that bridges the gap

between IT and the business. His

retail work includes: Coach,

Hallmark, Walgreens, and Wal-

Mart.

Shared Commitment Both organizations will contribute to, and share in the success of the effort

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RELEVANT CASE STUDIES

Driving CRM for well known brands around the world

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PRICING GUIDELINES

Estimated detail for outlined scope of work

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© 2011 Experian Information Solutions, Inc. All rights reserved.