Event Driven Marketing


Published on

Customer Equity Solutions (Cequity) is a technology-enabled Customer Experience Management Company. Our end-to-end suite of integrated services includes customer management consulting, marketing database & information management solutions, analytics, metrics & dashboards and campaign measurement. We use best in class proprietary methodologies, to create a cohesive, easy-to-use platform and generate measurable results throughout the entire customer lifecycle in very less time.
To download visit:
blog.cequitysolutions.com and www.cequitysolutions.com

Published in: Business, Technology
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Event Driven Marketing

  1. 1. What is Event Driven Marketing? Traditional marketing in financial institutions is based around pushing products to customers based on a statistical assessment of their likelihood to accept such an offer (Product Push). Author – Ajay Kelkar e-mail - ajay.kelkar@cequitysolutions.com © Copyright 2008 Cequity www.cequitysolutions.com 1
  2. 2. Index About EDM? …3 Evolution of EDM …7 Benefits of EDM …9 About the Author ..11 © Copyright 2008 Cequity www.cequitysolutions.com 2
  3. 3. 1 About EDM? What is Event Driven Marketing, really? “ EDM is relevant instantly as it meaningfully assimilates to a ” Event Driven Marketing (EDM) has come as a breathe of fresh air for financial institutions. client's need. Offering the ability to access customers through a But still, how exactly does this system work? By quot;pullquot; strategy, EDM is relevant instantly as it adapting a number of technology-enabled meaningfully assimilates to a customer's need. communication tactics to the existing CRM While traditional methods use a quot;product pushquot; process within a financial institution, EDM strategy based solely on statistical assessment literally keeps a tab on the pulse of every and repeated campaigns that result in very low individual's activities. Looking for certain triggers conversions, EDM uses valid, concrete data to up or specified conditions called 'events', EDM sell products during a short, but focused time effectively throws up opportunities to contact the frame. EDM uses existing data from a customer's customer with 'event' specific sales, service background and transactions to analyze and information. predict precise moments to offer specific products. Simply put, instead of conducting a In EDM terms, an 'event' is a relevant and campaign based on the marketer's sales significant occurrence in a customer’s life and is objectives, an Event Driven approach is focused only specific to that particular customer. An more on the customer's need and how that Bank example might be the birth of a first child. At this can satisfy this. time, the parents most likely re-assess their With EDM's ability to create pre-defined business financial situation to cater for these new and value through detailed customer interaction and changed circumstances in the family. They may behavior, financial institutions are reaping the consider taking out insurance, making a will, benefits of EDM driving value-producing moving house, purchasing a different car, interactions that can even be customized for opening an account for their child (to hold the individuals. As more banks follow the trend of monetary gifts received from family members), expecting better and concrete ROI, EDM etc. Thus, if a bank could determine an Event technology has proved its worth by recovering such as this in a customer’s life, this would costs in very short periods of time. represent an excellent opportunity to contact the customer in order to offer appropriate products and services. That said, 'events' are not just for sales opportunities and can also be used to find many kinds of significant occurrences such as Attrition, Risk and Service. © Copyright 2008 Cequity www.cequitysolutions.com 3
  4. 4. There are four distinct levels at which EDM can you have about your customers to understand function: simple, complex, real-time and behavior trends over time. For instance, you sophisticated. At every successive level there want to know whether certain customers' exists an increased event complexity and an spending or other activity is increasing or increased data detail requirement, yet each decreasing. Complex events also require a level successive level tends to yield ever-higher of knowledge about the data, so even though specificity and actionable customer insight. defined by marketing, the execution might require a user who is technically capable, someone know better as a 'power user'. Simple Events Simple events are data thrown up by basic queries or conditions. An example would be Real-time Events quot;everyone that purchased a new refrigerator Real-time events fall under 2 categories - yesterday.quot; With this data at hand, specific session-specific and non session-specific. communication can be sent out to all that meet Normally associated with online/web-based the criteria. This type of event is driven by interactions, 'session-specific' real-time events scheduled segmentation schemes and usually tend to setup up-sell or cross-sell messages in a run on a monthly basis as time is not critical for normal transaction. For e.g. while shopping for a the execution of simple events. PC printer online, a customer is delivered an additional offer for paper and ribbons - relevant Examples of simple events include product products attached to the principal product purchases, age thresholds, birthdays, address purchased. The purchase quot;eventquot; is driven from changes or purchase thresholds. While on the a predefined product profile or bundle that might surface they appear intuitive, these 'simple reflect quot;items that other customers have events', when coupled with relevant purchased who also purchased this productquot;. communications, can deliver double-digit returns on marketing activity. In a 'non-session-specific' real-time event, a customer who visits a bank website to check mortgage rates for refinancing, within a very Complex Events short span of time, while interacting at an ATM, Slightly more complicated than 'simple' events, receives a message about attractive financing 'complex' events are necessarily a product of the options. This could be followed by a phone call marketing team working with the IT team. from a personal banker with a personal Complex events are based on marketing mortgage package offer. This kind of 'event' responses to changes in customer behavior over enables the marketer to combine it with time. This activity consists of leveraging the data © Copyright 2008 Cequity www.cequitysolutions.com 4
  5. 5. additional information from the data warehouse All four of these event categories, in combination and responding with an enhanced offer back to with each other, create a sustainable competitive the customer. This response could occur on the advantage that will protect customer asset base. same channel, in a different session, or on a different channel. The Event Driven Marketing process can be split into three areas of effort Sophisticated Events Being the highest level of EDM complexity, 'sophisticated' events are defined and initiated to Detect the Events find patterns or specific circumstances that Detected at an individual indicate a significant change in an individual's level based on the situation. They enable marketeers to find significance to that Event Driven Marketing Process individual carefully calculated opportunities to communicate with individuals. Sophisticated events might include this banking scenario: Find the Best Leads quot;Notify me any time that someone withdraws This requires the ability 180% more than his average withdrawal amount to filter based on over the last 12 months.quot; This scenario reflects a recency, best offer and significant change in an individual's situation. channel limiting These are questions asked daily, scheduled queries of all of the detail data in your data warehouse that find changes in customer Communication with the Customer behaviour over time that represent opportunities This requires a Multi- to communicate with that individual. step, Multi-channel Dialogue Simple Business Value Complex Fig 2.0 Event Driven Marketing Process Real Time Sophisticated So what's the bottom line on EDM? Complexity While traditional methods have yielded low response rates between 2–5 %, and the bank Fig 1.0 Complexity and Business Value increase as Event Sophistication increases. © Copyright 2008 Cequity www.cequitysolutions.com 5
  6. 6. incurs and absorbs the costs/expenses, research done on EDM showed that the average response rates typically range from 20%-50%. Even with such startling difference in results EDM hasn't grown in popularity due to the presumed cost factors attached. Only recently have specialists and experienced strategists created frameworks and systems that help financial institutions gain access to this revolutionary method. © Copyright 2008 Cequity www.cequitysolutions.com 6
  7. 7. 2“ Evolution of EDM tracks to indicate with some degree of Customers are unconscious clearness the line of progress along which diarists of a portion of their lives. he is moving towards either failure or Every account in your books is a success. Your customers are unconscious record, more or less graphic, of diarists of a portion of their lives. Every account in your books is a record, more or the financial history and progress less graphic, of the financial history and of the customer, contributed by progress of the customer, contributed by himself. ” himself.” In the automation of banking processes in Event data in banking, for long, has always the 1960s and '70s, some basic event been an insight into the financial situation of management was often included. For a customer. Bankers before, would sit example, standard branch reporting often everyday reviewing their customers' included a list of large credits paid into statements posted on that day to try and customers’ accounts. This information could assess the financial situation their customer then be used for limit management or might be in. Only recently, with the advent marketing purposes. However, it was the and extensive use of technology introduction of large decision support automation, have great strides been taken databases and data warehouses in the into accessing data more extensively and 1980s and ‘90s combined with the methodologically. development of sophisticated marketing As early as 1885, George Rae wrote in “The solutions that exploited this technology that Country Banker”, “In the case of people who led to a massive increase in the extent and bank with you, you have in your ledgers a complexity of event management in the record which will enable you, in many banking industry. The traditional approach cases, to check and rectify the estimate of to database marketing involves the creation their means and position which is current of campaigns that generate a large number out of doors. A man’s bank account will not of solicitations to customers or prospects. necessarily disclose what he is worth: but its The expectation is that a small but entries, debtor and creditor, will serve as significant portion will respond positively © Copyright 2008 Cequity www.cequitysolutions.com 7
  8. 8. and eventually take-up the product offered. Most of the development in this area has revolved around the use of statistical analysis to identify segments of prospective buyers who have a higher propensity to respond and to buy the product concerned. This push-based approach was considered effective and economical to undertake and continues to be the main mass marketing technique in use in most large banks today. However, with ever increasing customer expectations and ongoing competitive pressure, banks are starting to recognize that the traditional approach to marketing is becoming less and less relevant at meeting their organization’s objectives. Increasingly banks are considering whether a more customer-centric, needs-based approach is possible to enhance product sales and customer satisfaction. At the same time, banks are looking to gain greater efficiency from their marketing investment and avoid the huge volume of unsuccessful solicitations which consumers consider as junk mail and which have tended to desensitize them to other, more relevant marketing offers. © Copyright 2008 Cequity www.cequitysolutions.com 8
  9. 9. 3 Benefits of EDM The biggest benefit seen with employing EDM is that there is minimal wastage - of EDM creates avenues of dialogue time, effort and money. Instead of with customers by changing the conducting a campaign based on the standard approach of quot;Bank’s time marketer's sales objectives, an Event Driven to contactquot; to a quot;Customer’s time to approach is focused more on the customer's need. Customers receive promotional offers contactquot;. and service messages that are of interest to them at the moment, and marketers avoid In addition to the impressive ROI it the shotgun approach typical of most generates, EDM is growing in popularity campaigns. because it offers financial institutions in today's competitive scenario, the powerful tools they need to manage customer In brief, EDM's benefits are: relationships in the right direction. For • Improved customer experience instance, EDM empowers marketers to: • Guaranteed brand reference • Shape how the customer interaction • Increased revenues takes place, while the customer determines the what, when, and • Minimizing Attrition where. • Maximize marketing opportunities • Engage each customer based on his or her actual individual behavior and By providing the capabilities to meet each interests rather than on a product individual customer at the point of need, turn 'push' marketing campaign or sales customer monologues into value-producing promotion based on a targeted dialogues and rapidly, if not instantly, segment. improve return on customer relationships, • Fulfill the promise of CRM by triggering financial organizations today are finding helpful interaction with each customer more reason to change gears and consider at the time that customer has implicitly EDM to be a winning option. signaled a clear and specific need or interest. © Copyright 2008 Cequity www.cequitysolutions.com 9
  10. 10. To conclude and to summarize, the key areas affected by the EDM approach are - increased customer focus, satisfaction and responsiveness, coupled with lower attrition, lower costs along with increased revenue and profitability. © Copyright 2008 Cequity www.cequitysolutions.com 10
  11. 11. 4 About the author Ajay Kelkar, Co-Founder & COO of Cequity, has over 17 years of experience in customer-driven marketing across a wide range of industries such as Soft Goods, Banking & Financial services & Retail. A well known & well respected analytical marketing professional in India, he was the head of marketing for HDFC Bank and was responsible for building world-class analytical marketing capability for the bank. He has extensive experience in starting with simple data-led marketing and scaling-up to complex analytics based cross-sell, upsell programs. He has specific expertise in change management while implementing CRM and has led the first Unica implementation in India at HDFC bank - ranked amongst the top 3 Unica customers at the Customer Success Awards. © Copyright 2008 Cequity www.cequitysolutions.com 11
  12. 12. Disclaimer / Copyright The information contained in this document represents the views of the author on EDM in the existing market scenario. It is exclusively for informational purposes only. Parts of this document contain references to the following publications: Enterprise Event Management in Banks (Teradata), The Power of Event-Based Marketing (Teradata), Affinium® Customer Alerts Solution (Unica) and An overview of the Product Suite (Eventricity). Complying with all applicable copyright laws is the responsibility of the user. Without limiting the rights under copyright, no part of this document may be reproduced, stored in or introduced into a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording, or otherwise), or for any purpose, without the express written permission of the author and the above mentioned authors of the reference documents. Contact 105-106, 1st Floor, Anand Estate, 189-A, Sane Guruji Marg, Mahalaxmi, Mumbai 400 011, India. Ph: +91 22 23000133 / 23054039 Fax: +91 22 23053809 Email: info@cequitysolutons.com © Copyright 2008 Cequity www.cequitysolutions.com 12