accelerating customer insights & enhancing business impact
DESCRIPTION
How do you convert data into insight and then use that to drive business impact. Here are some lessons from my experience in HDFC bank and also as an entrepreneur at CequityTRANSCRIPT
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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