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Unica Building A Customer Management Framework
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Unica Building A Customer Management Framework



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  • 1. Building a Customer Management Framework Creating an Institutional capability Ajay Kelkar Cequity, I di C it India
  • 2. Agenda Customer strategy Marketing-IT dilemma Data based Marketing roadmap Building blocks for Enterprise marketing Best Practices to support Customer strategy
  • 3. Building Blocks for Customer strategy
  • 4. Building blocks f C t B ildi bl k for Customer strategy Marketing programs that create substantial value require four integrated elements: 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
  • 5. Customers must be your organizing principle ii i il 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. –
  • 6. Maturity model for customer centric customer-centric marketing • Business need: Drive customer-focused strategy across lines of business Strategic g •F Focus: C t Customer segment management, customer experience, and contact t t t i d tt strategy Customer- focused •• Business need: Program optimization within business Benefit: Delivering on corporate business goals: revenue, customer Consultative • Focus: Consultingof wallet profitability, share on micro-segmentation, program strategy and calendar • Benefit: Incremental revenue through program innovation (e.g., new channels, program integration, etc.) Value • Business need: Increase campaign velocity and Responsive individual campaign ROI within lines of business • Focus: Targeting analytics (e.g., response propensity) and operational excellence Service- • Benefit: Improved response and ROI focused • Business need: Drive efficiency through f d Tactical consolidated data, skills, and operations • Focus: Building an integrated data asset • Benefit: Cost savings, new revenue streams g Sophistication Source: Forrester
  • 7. Who is strategic today? g y Strategic • Gaming/Casinos g • Retail banks (a few) Few marketers have • Travel Consultative • Catalog reached the strategic level Most “sophisticated” groups • Consumer credit Responsive are between consultative • Insurance and strategic Industry and business model Tactical influence maturity level • Consumer goods • Pharma
  • 8. Is evolution necessary? Strategic Customer strategy Ownership of the integrated Consultative data asset is a critical first step p Program performance P f Analytic expertise enables transition from tactical to Responsive responsive role Campaign performance Improved planning and multi- channel expertise enables transition from responsive to Tactical consultative role Efficiency -- economy of Effi i f Development of customer- scale focused insights — and C-level buy in — enables transition to y strategic role
  • 9. Bridging the gap between IT & Marketing
  • 10. Bridging the IT/Marketing chasm 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 this gap is key to building a Customer management framework gg gp y g g
  • 11. Getting the enterprise data data- rich & information-ready
  • 12. Data is your competitive advantage
  • 13. What is the roadmap for Data based marketing?
  • 14. Data-based marketing roadmap Three critical ingredients for a Data led strategy Developing Analytical capacity D li A l ti l it – Can be done with a focussed set of people who can then drive broader “change” Process based Marketing a tomation automation – Creating “process” mindset in marketing is difficult-do it before you automate Establishing a Data warehouse or Data mart – Limit the data that you put into the mart Do not design your datamart with statistician's needs in mind
  • 15. Marketing Technology backbone – The power is in the data
  • 16. Building blocks for Enterprise marketing
  • 17. Building blocks for Enterprise marketing Build Predictive marketing capacity k ti it Enable Focus on the Marketing Customer experience automation t ti
  • 18. Building blocks for Enterprise marketing Build Predictive Marketing capacity Building Predictive marketing capacity – Creation of an advanced analytics group Focusing on the Customer g experience Enable Focus Marketing – Building Customer lifecycle on the automation Customer experience programs – Key focus on customer on boarding Marketing automation – Creation of a six sigma led C f ld automation based process
  • 19. Building Predictive marketing capacity Build Predictive Marketing capacity Creating “quick segmentation” d k to t ti ” decks t “seed” business ideas Profiling credit card “revolvers” – Use analytics to drive product development Enable Focus Marketing on the automation Feature development basis – Customer experience customer behavior Solve strategic business Sl b problems Portfolio segmentation to – identify “balance builders” y
  • 20. Focusing on Customer experience Build Predictive Marketing capacity Creating customer lifecycle programs th t address: that dd Acquisition – On Boarding – Usage – Enable Dormancy reduction – Focus Marketing on the automation Proactive retention Customer – experience
  • 21. Enabling Marketing g g Automation Build Predictive Start small & automate a robust Marketing capacity process Deploy a Marketing automation process across the enterprise: Leveraging the customer base to – optimize returns and bottom-line revenue Enable Focus Marketing on the automation Customer Increase customer profitability experience – through deeper, stronger customer relationships
  • 22. Best practices for Enterprise Marketing
  • 23. Best Practice 1: Developing Analytical capacity
  • 24. Developing Analytical capacity Create a central Analytical team- give it full visibility i t b i i ibilit into business Focus on selected business drivers Create insights about that business driver in shortest possible time Create C t a series of segmentation around K i f t ti d Key business issues and not one “catch all segmentation segmentation” Actionable Analytics™ is important-it should lead to business results
  • 25. Analytics must influence decisions Create Customer-specific metrics and scorecards and d d Embed these into performance evaluations, i l ti incentives and fi ti d financial il plans.
  • 26. Best practice 2:Data Stewardship
  • 27. 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)
  • 28. Best practice 3:Data Readiness
  • 29. Data Readiness 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
  • 30. Creating Data Preparation Capability Data preparation is 70-80% of the problem! bl ! A variety of business groups would be chasing the same data! h i th dt!
  • 31. 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 Financial Risk Financial Performance Risk Optimization p Optimization O ti i ti 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
  • 32. Building a Marketing database Should be built with “end use” in mind-not “how th d t will b stored”. “h the data ill be t d” Based on Marketing programs the end users will run. ill Should provide ability to track response and provide ROI measurement
  • 33. Building a Marketing database 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
  • 34. Marketing Database ETL Framework DM Business Bi Files Operations Systems Contact History Transaction Update Update Analytic Models Phone & Phone Customer Customer DB’s Scoring Contact Hygiene Marketing Database Data Customer Enrichment Matching Purchased Data Response p Data Determination Consolidation Householding Audience Rules Response Rules
  • 35. Best practice 4:Change management
  • 36. Create a framework for Change management Plan for Change Management Do D not underestimate change management t d ti th 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
  • 37. Best practice 5: Convince top management
  • 38. Convince Top management Get top management buy-in Obtain t Obt i top management buy i f Customer tb in for C t segmentation – a profitability based framework to plan campaigns Get your CFO on your side Getting top management support for Funding Selling to the CFO by establishing clear ROI – framework
  • 39. Best practice 6: Think of Marketing as a Process
  • 40. Think of Marketing as a Process Think Process efficiency Rigorous Campaign process Planning,development,execution(six sigma) – Environment will change-build “privacy – views” into your process
  • 41. Best practice 7: Understand Technology
  • 42. Understand the Technology agenda 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”
  • 43. Best practice 8: Change the Talent mix in marketing
  • 44. Create new capabilities Change talent mix in your marketing team A mix of Left & Right brain skills understanding customer behavior needs d t di t bh i d – analytical skills (audience knowledge more than media) Taking action needs a mix of technology and – creative skills
  • 45. Partnering enterprises to optimize marketing performance
  • 46. Value extraction from CRM technology takes time 4 A robust solution creates value by Bring the right skill bringing together the right skill sets sets into play needed Turning data to $$ requires a Business & 1-to-1 to- variety of skill sets Marketing Marketing Strategy Business & Marketing Strategy Programs Return s (Rs) CRM & Data warehousing 1-to-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”
  • 47. How will Cequity make a difference? Tools Actionable Analytics Process P Smart Campaigning Third-party Event driven marketing creative Services end-to-end end to end People support integrated solution Cequity will accelerate ROI from the CRM investments thro’ quick time-to-market strategies, operational support and execution excellence
  • 48. Our Mission To combine data technology and data, build actionable analytical marketing services to accelerate ROI-driven, , real-time customer-engaged marketing. Contact us at
  • 49. Thank You