How business can unlock value from its customer data.

Data2dollars
How business can unlock value from it’s data
www.symphony3.com
www.symphony3.com
1

Agenda
The problems facing Sales and Marketing in today’s organisation
The Situation
The Solution, how it works and what it changes
Case Studies
Next Steps
www.symphony3.com

Have you ever felt like this?
50% of my ad budget is wasted, I just don’t know which 50%
My business is a mess of silos of unconnected data
I can’t get unique customer profiles
If I need access to data for a marketing decision, I have to wait in line for an IT report
I send the same direct mail to all of my customers
External Data is never taken into consideration
I have to use assumptions to drive my analysis
I need to know that the right customers are available in the new market
My factory sells products to major retailers, but I have no idea what they do with it
I don’t understand what type of people my previous buyers were
www.symphony3.com

What we need to do: Convert Data to Dollars
How can business unlock value from its customer data?
IT is seen as a cost but data represents untapped business value.
Typically, databases are only used to measure $ historically – sales, revenue and profit.
Databases that work can also help business to:
Attract new customers
Retain existing customers
Identify opportunities for them to spend more
Develop existing customer relationships
…… and thus generate dollars
www.symphony3.com

Dollars
(Attract– Retain – Grow Customers)
Customer Communications
Knowledge
Data
The Data to Dollars Model
www.symphony3.com

Solution: The IT Solution
Single Customer View
Desktop Applications (All Desktops anywhere)
Office
Document Management
Email
Specific Business Applications
Analysis
Financial System
Sales Tracking
Product
Servicing
Warranty System
Web Site
Databases
FINANCIAL
DATABASE
SALES
DATABASE
CUSTOMER
DATABASE
WARRANTY
CLAIMS
SERVICING
INFORMATION
CUSTOMER
ENQUIRIES
EXTERNAL
DATA
www.symphony3.com

The Typical Business Environment
Dollars
Retain
Customers
Acquire
Customers
Develop
Customers
Grow
Retain
Attract
Customer Touches
Service Centre
Website
Call Centre
Sales Force
Social Net
Marketing -- Sales – Service to Repurchase – Upgrade -- Depart
Knowledge
Market
Knowledge
Customer Segment& Profiles
Customer
Behaviour
Customer
Relationship
History
Data
Finance System
Sales Leads
External
Industry Data
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The Goal
Dollars
Higher - Leads, Conversion Rate, Average Sale Value, Margin, Transactions, Lifetime Value, Referrals
Retain
Customers
Acquire
Customers
Develop
Customers
Grow
Retain
Attract
Customer Touches
Web Site
Call Centre
Sales Force
Service Centre
Give the customers that YOU want the experience that THEY demand
Knowledge
Market Knowledge
Customer
Behaviour
Customer
Relationship History
Ensure the RELEVANT KNOWLEDGE is given to the RELEVANT PEOPLE in the organisation
Data
Finance System
Sales Leads
External
Industry Data
Transform your existing data into a single view of the customer
www.symphony3.com

How it Works
Dollars
Strategic sales programmes designed and built around preferred customer buying process – time, place, opportunity!
Retain
Customers
Acquire
Customers
Develop
Customers
Grow
Retain
Attract
Customer Touches
Customer insights provided on desktop viewer power superior decisions & effective customer communication
Web Site
Call Centre
Sales Force
Service Centre
Knowledge
Market Knowledge
Customer
Behaviour
Customer
Relationship History
Delivery of customer insights in a Simple Desktop Viewer
Analysis of unified database including external data
Data
Finance
System
Sales Leads
External
Industry Data
Customer
Database
www.symphony3.com

Case Study: Fernwood Fitness
The Issues
Fernwood franchisee applicant looking for funding to open a franchise in a particular franchise area
Government funding agency wanted compelling market data on the viability of the franchise in that area
The Solution
The ideal profile of Fernwood members was known
Demographic information was analysed to identify the number and location of ideal customers in the franchise area
This was compared with the number and location of ideal customers in other franchise areas
Analysis of this information provided compelling evidence as to the likely turnover of a franchise in the chosen franchise area
Further analysis of the data, using models such as 8 and 10 minute drive time analysis, identified the most appropriate location for the franchise in the franchise area
The Result
The funding agency minimised its lending risk, the franchisee received the funding and opened the franchise. The franchisee chose the most attractive store location based on the findings of the report and was able to maximise its marketing spend by limiting mail drops to households who fitted the ideal customer profile
www.symphony3.com

Case Study: Health Services Provider
The Organisation
Provides services to 30,000 mostly elderly customers across Melbourne
Fundraising a major revenue stream
Operational information in 10 different databases across three software systems, managed by different departments.
The Issues
Same person occurs in different roles in different databases and the organisation cannot tell
The relationship between donors and service recipients or their contacts can’t be established
Change of detail in one system cannot be updated in the other systems
The information cannot be used to understand the customer base better
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Case Study: Health Services Provider (cont’d)
The Solution
Set-up a simple software routine to take names and addresses from existing systems on a weekly basis, convert them to new format and add them to a new database. This found about 80,000 people in various databases.
Provided a simple search screen for the new database to find where the same or related clients and their contacts exist in the various existing databases.
Used the results to clean/correct the existing poor data entry practices. (i.e. addresses of “As above”)
Mapped the household locations of the whole community against external data like Census to segment and understand the client base and growth potential
Used this to more effectively communicate with existing and potential clients/donors.
www.symphony3.com

Case Study: Major Retailer
The Organisation
Major Australian Retailer
Single club database of over 500,000 customers receiving direct mail regularly
Provide a range of different products that suit different stages of life
Main customer base is young families
The Issues
A young single, expecting mother and retiree sent the same type of communication/offer
Specifically households with babies vs. teenagers not segmented
The database not used to help the organisation better understand their customers
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Case Study: Major Retailer
The Solution
Customers segmented using their previous spending patterns (RFM analysis)
Outcomes used to predict who would respond to a direct marketing piece
The potential annual savings of not writing to those who wouldn’t respond was $1 per club member
Segmentation tested against the complete mail out and found to have high accuracy
By comparing RFM analysis outcomes and running test communication pieces it is possible to make communication highly effective and relevant to the customer by both understanding what type of person they are and where they are in their spending cycle
People with changing needs identified and communication adjusted accordingly
The results used to analyse the profitability of each of 200 houses across Victoria
The spend compared to total sector spend per 200 houses to allow competitor analysis and better understand market penetration
The profit per communication piece per 200 houses was calculated to fine tune general mail drops and growth areas for NEW customers
www.symphony3.com

Case Study: Hardware Manufacturer
The Organisation
Organisation’s product distributed all over Australia and offered by all the major hardware retailers
Many of the larger stores hold no stock and make few sales, but smaller stores of the same brand have high stock/high sales levels
The only information the company has is through the receipts in their financial system
The sales are made with no co-ordinated sales strategy or information system
The Issues
No understanding of the split between sales to new houses and the renovation industry
No understanding of the market penetration in different geographical areas and thus the potential to grow the market
No way of knowing how many potential smaller retailers might sell the product
No sales forecasts to give new potential market channels
www.symphony3.com

Case Study: Hardware Manufacturer
The Solution
Sales data extracted from financial system and restructured by geographical area
External data obtained to show the total spend on renovations and new houses in each area
A market share was calculated for each major part of Australia
The top 25% of sales regions were identified
Modeling showed that if the top 25% market penetration was repeated for the rest of Australia then sales would triple.
Lists of all potential retailers were obtained and put against existing sales
Information used to work out different distribution strategies for different parts of Australia
www.symphony3.com

Case Study: Residential Developer
The Organisation
Organisation sells residential housing estates in suburban and holiday areas
Each display house has its own database and sales function
All of the existing advertising above the line
The Issues
No measured understanding of the household make up of buyers
Potential buyers who visit two display homes are in two parallel sales processes
No strategy to directly target potential buyers
No way of separating dreamers from buyers
No understanding of the sales potential in different geographical areas
www.symphony3.com

Case Study: Residential Developer
The Solution
Sales data extracted from the various systems and formats and combined into a single database
The buyers and visitors database was mapped to understand where they come from
The database was segmented into different household profiles and compared to the general population. One of the identified segments was the “Dreamers”
Sophisticated modeling software was used to rank each group of 200 houses across Sydney from 1 to 10 by their likelihood to visit a display home
The likelihood of each type of visitor to buy was checked
The different types of buyers for different estates was modeled
The results were tested against actual buyers and visitors for the following 3 months
The reliability of the model was:
38% of the visitors came from the top 10% of the houses
58% came from the top 20% of ranked houses
83% came from the top 50% of the houses
This virtually eliminated half the population as not being potential buyers and identified a group four times more likely to buy
This information is being used to both better understand the potential buyer and develop direct marketing strategies
www.symphony3.com

WHICH HOUSES ARE PROFITABLE TO COMMUNICATE WITH ??
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Sales per CCD (200 hundred houses)
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WHERE DO PEOPLE SHOP ??
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Survey respondents by segment
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Segments by location
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The D2D Proposition
We know that to deliver a Memorable Business Outcome you need to build five pillars:
IT Infrastructure
Most businesses have this in place
Meaningful Data Requirements
Understanding what we need to know
For decision support
For performance metrics
For strategy
Standards, Processes and Business Rules
So that there is consistent interpretation – One Version of the Truth
People and Organisation
Who can access the data and why
The Customer Environment
External factors data (including web data)
The last four are in addition to most “IT” projects.
www.symphony3.com

The D2D Proposition (cont’d)
We build a system that meets these criteria in any organisation, along with our recommendations.
We undertake all phases of the system build in parallel.
No silos
Outcomes are demonstrated and tangible benefits delivered very early in the project.
No threat to existing systems
co-ordinatation of systems to deliver the outcomes.
minimisesorganisational change.
Rapid prototyping checks all data, standards and organisational issues that may affect the project, as well as the very early demonstration of results
The system can subsequently operate as a bureau service or as an in-house system
www.symphony3.com

First Step: Proof of Concept
Customer Interviews to provide information on the existing environment, systems, data, knowledge etc
Review the Existing Environment and write a Short Report outlining:
The benefits of a Single Customer View to the business
The steps required to obtain the benefits
Time and Cost
Build a prototype that uses real data and delivers some real answers:
Take a copy of each database
Put into a temporary analysis database
Run some basic analysis to demonstrate potential outcomes
Evaluate business value and agree to proceed to full project.
www.symphony3.com

How business can unlock value from its customer data.

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