Building a Customer Management Framework

Creating an Institutional capability

Ajay Kelkar C Cequity, it I India di

Agenda
z z z z z

Customer strategy Marketing-IT dilemma Data based Marketing roadmap Building blocks for Enterprise marketing Best Practices to support Customer strategy

Building Blocks for Customer strategy

Building B ildi blocks bl k f for C Customer t strategy

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Marketing programs that create substantial value require four integrated elements:
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A strategy for managing customer relationships that is tied to business economics Compelling, well-executed programs that drive customer value levers Technology to support data management and customer experience The organization that underpins the ability to deliver and sustain the first three elements

High performing companies create the structure, skills & processes to leverage customer data

Customers must be your organizing i i principle i i l

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 function. Build a business case with finance. Identify technology gaps with IT. Develop a culture strategy with HR.

Maturity model for customer-centric customer centric marketing

Business need: Drive customer-focused strategy across lines of business Focus: F C t Customer segment t management, t customer t experience, i and d contact t t strategy Customerfocused Business need: Program optimization within business Benefit: Delivering on corporate business goals: revenue, customer Consultative profitability, share of wallet Focus: Consulting on micro-segmentation, program strategy and calendar Benefit: Incremental revenue through program innovation (e.g., new channels, program integration, etc.)

Strategic g

Value

Business need: Increase campaign velocity and individual campaign ROI within lines of business Focus: Targeting analytics (e.g., response propensity) and operational excellence

Responsive

Service- Benefit: Improved response and ROI f focused d Business need: Drive efficiency through consolidated data, skills, and operations Focus: Building an integrated data asset

Tactical

Benefit: Cost savings, g new revenue streams

Sophistication
Source: Forrester

Who is strategic g today? y

g Gaming/Casinos Retail banks (a few)
z z

Strategic

Few marketers have reached the strategic level Most sophisticated groups are between consultative and strategic Industry and business model influence maturity level

Travel Catalog

Consultative

Consumer credit Responsive Insurance Tactical Consumer goods Pharma

Is evolution necessary?
Strategic Customer strategy
z z

Ownership of the integrated p data asset is a critical first step Analytic expertise enables transition from tactical to responsive role Improved planning and multichannel expertise enables transition from responsive to consultative role Development of customerfocused insights and C-level y in enables transition to buy strategic role

Consultative P Program performance f Responsive Campaign performance Tactical Efficiency Effi i -- economy of f scale

Bridging the gap between IT & Marketing

Bridging the IT/Marketing chasm

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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

Bridging g g this gap g p is key y to building g a Customer management g framework

Getting the enterprise datadata rich & information-ready

Data is your competitive advantage

What is the roadmap for Data based marketing?

Data-based marketing roadmap

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Three critical ingredients for a Data led strategy

D Developing l i Analytical A l ti l capacity it

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Can be done with a focussed set of people who can then drive broader change Creating process mindset in marketing is difficult-do it before you automate Limit the data that you put into the mart Do not design your datamart with statistician's needs in mind

Process based Marketing a automation tomation

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Establishing a Data warehouse or Data mart

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Marketing Technology backbone The power is in the data

Building blocks for Enterprise marketing

Building blocks for Enterprise marketing

Build Predictive marketing k ti capacity it

Enable Marketing automation t ti

Focus on the Customer experience

Building blocks for Enterprise marketing

Build Predictive Marketing capacity

Building Predictive marketing capacity Creation of an advanced analytics group Focusing g on the Customer experience Building Customer lifecycle programs Key focus on customer on boarding Marketing automation Creation of C f a six sigma led l d automation based process

Enable Marketing automation

Focus on the Customer experience

Building Predictive marketing capacity

Build Predictive Marketing capacity

Creating quick segmentation t ti d decks k to t seed business ideas

Profiling credit card revolvers

Enable Marketing automation Focus on the Customer experience

Use analytics to drive product development

Feature development basis customer behavior

Solve S l strategic business b problems

Portfolio segmentation to identify y balance builders

Focusing on Customer experience

Build Predictive Marketing capacity

Creating customer lifecycle programs that th t address: dd

Acquisition On Boarding Usage Dormancy reduction Proactive retention

Enable Marketing automation

Focus on the Customer experience

Enabling g Marketing g Automation

Build Predictive Marketing capacity

z z

Start small & automate a robust process Deploy a Marketing automation process across the enterprise:

Leveraging the customer base to optimize returns and bottom-line revenue Increase customer profitability through deeper, stronger customer relationships

Enable Marketing automation

Focus on the Customer experience

Best practices for Enterprise Marketing

Best Practice 1: Developing Analytical capacity

Developing Analytical capacity

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Create a central Analytical team- give it full visibility i ibilit i into t b business i Focus on selected business drivers Create insights about that business driver in shortest possible time C t a series Create i of f segmentation t ti around dK Key business issues and not one catch all segmentation segmentation

Actionable Analytics is important-it should lead to business results

Analytics must influence decisions

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Create Customer-specific metrics and scorecards d and d Embed these into performance evaluations, l ti i incentives ti and d fi financial i l plans.

Best practice 2:Data Stewardship

The Strategic value of Customer 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. There should be a Data Steward who will be cross-functional (Marketing / IT / FinCon)

Best practice 3:Data Readiness

Data Readiness
z z z z

Data would never be ready! Move forward with what you have Create a hybrid structure to pull data manually from multiple source systems GET Data Acquisition SLAs from IT

IT to create business structures to manage data velocity expectation and assign clear SLAs for data support

Creating Data Preparation Capability

z z

Data preparation is 70-80% of the problem! bl ! A variety of business groups would be chasing h i the th same data! d t !

A lot of Business groups are looking for similar data!

The convergence of business strategy across different functional areas is driving a new Integrated Enterprise view of data

Relationship Optimization

CRM Risk
Risk Optimization p

Financial

Financial Performance O ti i ti Optimization

Operations Process
Operations & Process Optimization

The data overlap between each functional driver is high producing an Emerging trend towards a single physical enterprise wide EDW

Building a Marketing database

z z z

Should be built with end use in mind-not h how th the d data t will ill b be stored. t d Based on Marketing programs the end users will ill run. Should provide ability to track response and provide ROI measurement

Building a Marketing database

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Create a customized database

Extract data from source systems and build a customer centric data mart 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

Marketing Database ETL Framework

DM Files B i Business Operations Systems Contact History Update Analytic Models Phone & Phone DBs

Transaction Update

Customer Scoring

Customer Contact Hygiene

Marketing Database Data Enrichment Purchased Data Customer Matching

p Response Determination

Data Consolidation

Householding Response Rules Audience Rules

Best practice 4:Change management

Create a framework for Change management

Plan for Change Management z Do D not t underestimate d ti t change h management t

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-in z Obtain Obt i top t management t buy b i in f for Customer C t segmentation a profitability based framework to plan campaigns Get your CFO on your side z 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 Process

Think Process efficiency z Rigorous Campaign process

Planning,development,execution(six sigma) Environment will change-build privacy views into your process

Best practice 7: Understand Technology

Understand the Technology agenda

Get your team to understand technology z 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 the Talent mix in marketing

Create new capabilities

Change talent mix in your marketing team z A mix of Left & Right brain skills

understanding d t di customer t behavior b h i needs d analytical skills (audience knowledge more than media) Taking action needs a mix of technology and creative skills

Partnering enterprises to optimize marketing performance

Value extraction from CRM technology takes time

4

Bring the right skill sets into play

A robust solution creates value by bringing together the right skill sets needed

Turning data to $$ requires a variety of skill sets

Business & Marketing Strategy

Business & Marketing Strategy

CRM & Data warehousing 1-to-1 Marketing Programs

Return s (Rs)

1-toto-1 Marketing Programs

CRM & Data warehousing

Takes 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?

Actionable Analytics

Tools

Smart Campaigning Event driven marketing

Third-party creative Services end-to-end end to end support

P Process

People

integrated solution

Cequity will accelerate ROI from the CRM investments thro quick time-to-market strategies, operational support and execution excellence

Our Mission
To combine data, data technology and build actionable analytical marketing services to accelerate ROI-driven, , real-time customer-engaged marketing.

Contact us at www.cequitysolutions.com

Thank You