© 2012 forrester research, inc. reproduction prohibited · 2012. 3. 6. · “the sexy job in the...

Activating Analytics:Th N C t I t lli I tiThe New Customer Intelligence Imperative

Srividya Sridharan, Analyst

March 6, 2012a c 6, 0

© 2012 Forrester Research, Inc. Reproduction Prohibited2 © 2009 Forrester Research, Inc. Reproduction Prohibited@Srividya

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“The sexy job in the next 10 years will beThe sexy job in the next 10 years will be statistician. . . . The ability to take data — to be able to understand it to process it to extractable to understand it, to process it, to extract value from it, to visualize it, to communicate it

that’s going to be a hugely important skill ”— that s going to be a hugely important skill.

Hal VarianGoogle’s chief economist

© 2012 Forrester Research, Inc. Reproduction Prohibited8Source: Dataspora (http://www.dataspora.com/2009/05/sexy-data-geeks/)


Source: O’Reilly Radar (http://radar.oreilly.com/2011/09/building-data-science-teams.html), FlowingData (http://flowingdata.com/2009/06/04/rise-of-the-data-scientist/), and SearchBusinessAnalytics.com (http://searchbusinessanalytics.techtarget.com/news/1280099515/Data-scientists-helping-businesses-navigate-big-data-seas)

You also know analytics is mainstream when this happens…


PredictivePredictivePredictive analytics is……

Predictive analytics is……

© 2012 Forrester Research, Inc. Reproduction Prohibited11Source: http://www.colbertnation.com/the-colbert-report-videos/408981/february-22-2012/the-word---surrender-to-a-buyer-power

Agenda

The state of intelligence and insights todayg g y

A roadmap towards an Intelligent enterprise

Activating analytics in the Intelligent enterpriseActivating analytics in the Intelligent enterprise


What’s keeping Customer Intelligence professionals upIntelligence professionals up

at night?


Dealing with data diversityDealing with data diversity


Finding the right analyticsFinding the right analytics talent


Making marketingMaking marketing technology work together


A l i C tApplying Customer Intelligence to the businessg


We have entered the “Age of the Customer”

© 2012 Forrester Research, Inc. Reproduction Prohibited18Source: June 2011, “Competitive Strategy In The Age Of The Customer” Forrester report

Most marketing departments employ out-dated thinking

© 2012 Forrester Research, Inc. Reproduction Prohibited19Source: October 2010, “It’s Time To Bury The Marketing Funnel” Forrester report

Marketers need to put the customer at the center

© 2012 Forrester Research, Inc. Reproduction Prohibited20Source: October 2010, “It’s Time To Bury The Marketing Funnel” Forrester report

Current decision support models miss the mark

Barrier 1Ignorecustomermotivation

Shared barrierLack executivechampions

Barrier 1Resist new

data-gathering

th d

Barrier 2Remain inantiquatedchannels

Barrier 2Struggle to

turninsights

into action

methods

Barrier 3Neglecttheenterprise

Barrier 3Lack

visibilityinto

businessdecisions

Customer truth• Single view of

customer• Drive strategy• Informing

business decisions

Barrier 4Sink into

cost centerstatus

Barrier 4Suffer fromgeekyimage

MR DBM

© 2012 Forrester Research, Inc. Reproduction Prohibited21Source: April 2011, “Preparing For The Intelligence Enterprise” Forrester report

Few firms operate at a strategic level of intelligence

Strategic intelligence

Marketing intelligence

12%

34%

Functional intelligence

54%54%

Base: 301 Customer Intelligence professionals

© 2012 Forrester Research, Inc. Reproduction Prohibited22 © 2012 Forrester Research, Inc. Reproduction ProhibitedSource: October 2009, “The Intelligent Approach To Customer Intelligence” Forrester report

Base: 301 Customer Intelligence professionals

Agenda





What is Customer Intelligence?

The management and analysis ofThe management and analysis of customer data from all sources used to drive marketing performance and business strategy.


The Customer Intelligence Cycle

Capture

CustomerKnowledge

ManageApply

Analyze


Marketers see significant benefits in adopting customer intelligence

© 2012 Forrester Research, Inc. Reproduction Prohibited26Source: October 2009, “The Intelligent Approach To Customer Intelligence” Forrester report

Ingredients of an Intelligent Enterprise

Culture

ProcessMetrics

Customer

Intelligence

ProcessMetrics

g

DataPeople

Technology


Do you speak data?

“When you two have finished arguing your

opinion, I actually have data!”


Source: “Make Meetings More Productive by Arguing,” Lifehacker (http://lifehacker.com/5480724/make-meetings-more-productive-by-arguing)

Agility in customer-facing processes

PlanPlan

Processes

Reacting to changeReacting to change

l ProcessesInteractions

aditi

onal

Agi

le

SpecificationsPrototypesTr

a A

Liaisons, business analysts Face-to-face business

participation


The rules of engagement with customer data are changing

© 2012 Forrester Research, Inc. Reproduction Prohibited30Source: September 2011 ,“Personal Identity Management” Forrester report

Marketing technology is table stakes


Customer intelligence plays different roles

Marketing technologistsMarketing technologists

M k ti i ti tM k ti i ti tMarketing scientistsMarketing scientists

Marketing practitionersMarketing practitioners

Customer strategistsCustomer strategists

© 2012 Forrester Research, Inc. Reproduction Prohibited32Source: October 2009 ,“The Intelligent Approach To Customer Intelligence” Forrester report

Measurement & metrics analytics

Customer lifetime value

Customer retention, churn

Customer-focused Customer profitability

Customer loyalty

Engagement

Marketing-focused

Campaign response

Revenue by source

Conversion rate

Cost per lead

Customer referral rate

Cost of service

Cross sell/ psell re en e

Service-focused Cross-sell/upsell revenue

Net Promoter Score

Likelihood to recommend

Average handle/wait time


Agenda





Effective activation of analytics needs alignment of multiple components

© 2012 Forrester Research, Inc. Reproduction Prohibited35Source: February 2012, “Use Customer Analytics To Get Personal” Forrester report

Activation of analytics typically falters in four areasENFORCEABILITY TIMELINESSENFORCEABILITY TIMELINESS

ACCURACY DELIVERY


Source: AI Access (http://www.aiaccess.net/English/Glossaries/GlosMod/e_gm_confidence_interval.htm) and Coupa (http://www.coupa.com/solutions/innovations/cxo-dashboards)


How do you activate analytics?

Put analytics in the context ofPut analytics in the context of the customer experience


Choose customer experience over customer relationship

© 2012 Forrester Research, Inc. Reproduction Prohibited39Source: April 2011, “Beyond CRM: Manage Customer Experience” Forrester report

Each customer interaction is an opportunity to know more about the customer

Discover Explore Buy Engage

© 2012 Forrester Research, Inc. Reproduction Prohibited40Source: Simply Zesty (http://www.simplyzesty.com/advertising-and-marketing/advertising/trends-ingame-advertising/)

Activate analytics at each interaction point

Discover Explore Buy Engage

BIL

ITY Intervene to reduce number

of unprofitable customers.

Focus on retention, loyalty, and engagement to drive profitability. Focus on recovery.

PRO

FITA

B VALUE OF ANALYTICS

Reduce cost to serve and d i i

Intervene to cross-sell/upsell and drive revenue.

Acquire profitable customers through better targeting. Make customers profitable

drive margin.

CUSTOMER LIFETIME

pfaster.


Map out analytical options to lifecycle stages

© 2012 Forrester Research, Inc. Reproduction Prohibited42Source: July 2011, “How Analytics Drives Customer Life –Cycle Management” Forrester report

Translate ‘geek’ to ‘Greek’Translate ‘geek’ to ‘Greek’


Marketing scientists translate ‘geek’ to ‘Greek’

Marketing scientistsMarketing scientistsMarketing scientistsMarketing scientists


Level of translation varies at each step of the analytical process

© 2012 Forrester Research, Inc. Reproduction Prohibited45Source: February 2012 ,“Customer Intelligence Needs A New Breed Of Marketing Scientist” Forrester report

Give your models aGive your models a personality


Balance eye-candy with data integrity

© 2012 Forrester Research, Inc. Reproduction Prohibited51Source:http://flowingdata.com/2009/11/26/fox-news-makes-the-best-pie-chart-ever/

The right visualization tools can help bring sophisticated analytics to life

© 2012 Forrester Research, Inc. Reproduction Prohibited52Source: September 2011, “Use Interactive Marketing Dashboards To Improve Decision-Making” Forrester report

Step outside the ‘structured’Step outside the ‘structured’ comfort zone


Leverage social media as a source of unstructured, unsolicited data

Customer ratings on 3rd

party sitesSocial media

dataUnsolicitedp y

CSAT and NPS scores

Survey comments and h t t i t

Solicited scores chat transcripts


Structured Unstructured

Take steps to integrate social media with customer data to unlock the value of unstructured data

© 2012 Forrester Research, Inc. Reproduction Prohibited55Source: October 2011, “The Road Map To Integrating Social And Customer Data” Forrester report

So when you headSo, when you head back to the office…


1 Plan for customer-focused analytics

Put analytics in context 2 Translate geek-speak into business relevance

33 Become data artists, not just data scientists

4 Embrace unstructured analysis


4 Embrace unstructured analysis

ANALYTICS PROFESSIONALS

What my friends think I do What my mom thinks I do What non-analytics colleaguesthink I do

© 2012 Forrester Research, Inc. Reproduction Prohibited58What partners think I do What I think I do What I really do

Thank youy

Srividya [email protected]: @Srividya

www.forrester.com

© 2009 Forrester Research, Inc. Reproduction Prohibited

© 2012 forrester research, inc. reproduction prohibited · 2012. 3. 6. · “the sexy job in the...

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