What is Customer Science - And Why Should You Care?


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Customer Science is a relatively new subject-matter area; created by the need for richer understanding of customers in the digital era - and powered by cloud-born (so-called 'big data') data-marts. In this presentation I introduce the topic and its related skills areas and methods.

Published in: Business, Technology

What is Customer Science - And Why Should You Care?

  1. 1. Where Big Data Meets CRM www.ustechsolutions.com Ian Tomlin What is Customer Science?
  2. 2. www.ustechsolutions.com Customer Science is the intellectual and practical activity encompassing the systematic study of the structure and behavior of customers through observation and experiment.
  3. 3. www.ustechsolutions.com Key Events In The Evolution of Customer Science • ‘Marketing’ (Michael Porter principles on market competition) • One to One Marketing (Don Peppers and Martha Rodgers) • Introduction of Enterprise Customer Relationship Management (Tom Siebel) • Arrival of eCommerce • Arrival of Digital Marketing and SEO • Arrival of Social Media • Evolution of Data Investment Management (Amazon, Google) • Arrival of Cloud Computing • Emergence of Big Data • Arrival of Cloud CRM Data-Marts 1980 1990 2000 2010
  4. 4. www.ustechsolutions.com What Customer Science Means to Business • When an enterprise can generate income (shareholder value) by repeatedly servicing a customer need it’s likely to be successful! • But customer needs change over time… • And there’s no such thing as a typical customer… • Or a typical ‘market’ (aggregation of customers)
  5. 5. www.ustechsolutions.com You Need Customer Science To Learn… Who your customers are What they like Where they are When they make a buying decision How to engage them Why they will buy
  6. 6. www.ustechsolutions.com Strategy •Identify blue ocean opportunities to enter a new market to service an unmet customer need •Improve likelihood of strategic success by making decisions based on a paucity of customer insights and facts rather than conjecture Quality •Improve the customer experience, satisfaction and retention by delivering more value to customers more often •Stop treating all customers in the same way – deliver personalized, event-driven, location-centric tailored experiences Profit •Sell more products and services to customers by delivering more personalized experiences at the right time, right place and right price •Reduce costs by smarter production and supply-chain methods  on- demand/at point of need Efficiency •Expose sub-optimal processes that impact on customer experience •Optimize sales and marketing approaches ‘in the contact area’ •Reduce the number of actions occurring in the enterprise that contribute little to customer value Outcomes of Employing Customer Science 6
  7. 7. www.ustechsolutions.com 3. Execute / Discover Draw out Outcomes Share findings through charts, maps and visualizations Act on What Matters Make changes to processes Design a Query / Harvest Insights Explore customer insights to observe structures and behaviors Be Curious Think about an aspect of ‘customer’ structure or behavior Test Ideas/Seek Facts Find answers to questions The Life-Cycle Of The Customer Scientist 7
  8. 8. www.ustechsolutions.com Let’s Face It, Customers Don’t Always Want To Offer Their Opinion • It’s rarely easy to gain customer opinions, gather interests and unmet needs • Customers tend to give opinions when they are extremely happy or extremely unhappy • They’re more likely to share opinions when they’ve had an unhappy experience • Unless well structured, customer research can lead to the wrong conclusions and feedback can be misinterpreted • The customer is not always right!
  9. 9. www.ustechsolutions.com The Tools of the Trade Cloud Data-Mart CRM Website / Socialsite Back-office Systems Intranet Project/HR Systems Data Diagnostic Dashboards Location-Based Customer Analytics Product Analytics Competitor Analytics Cloud Data Mart extract
  10. 10. www.ustechsolutions.com Contributory Methods Customer Segmentation Outcome Driven Innovation Focus Groups Crowd Sourcing Value Chain Mapping Issue Signature Analysis Surveys Web Analytics Social Analytics Balanced Scorecard Blue Ocean Strategy Mapping BCG Analysis SEO UI Design Information Design Hypothesis Design Reporting Clustering Prediction Test and Learn
  11. 11. www.ustechsolutions.com Introducing Cloud CRM Data-Marts A Cloud CRM Data-Mart is a ‘big data’ cloud computing information platform equipped to manage the end-to-end life-cycle of creative innovation, supporting the key stages of: • Creating Hypothesis • Harvesting Data • Analyzing and Interpreting Data • Clustering Customers • Building Tests • Forming Impact Predictions • Iterating Tests • Turning Tests into Outcomes Hypothesis Clustering Situational apps
  12. 12. www.ustechsolutions.com Impact of Cloud CRM Data-Marts Manages the Life-cycle of Customer Science:  Builds (‘single’) landscape views of customer insights – Federates data from all sources – Automates data harvesting from disparate data sources – Removes manual data transformation and cleansing tasks – Enables clustered views  Adds research/data gathering tooling  Adds visualization, mapping and analytics  Adds situational applications to act on learning lesson
  13. 13. www.ustechsolutions.com Deep Dive Into Customer Segmentation Clustering customers into segments is useful for customer scientists to appreciate behaviors and structures that may exist and remain hidden when there is so much customer data! Segment by one or more of the following: • Likes and interests • Purchases • Unmet needs • Buying behavior • Affluence • Sales channel/procurement source • Social ties/strength of ties • Skills, education or associations • Origin or purchase source location
  14. 14. www.ustechsolutions.com Associated Skills & Disciplines • Marketing Manager • Market Researcher • Marcomms Manager • CRM Supervisor • Database Architect • Data Analyst • Campaign Manager • Product Manager • UI Designer • SEO • Digital Marketing Analyst • Brand Manager Need to source the talent? Call USTech Solutions - to source the professional, creative and analytical talent your business needs on-demand
  15. 15. Thank You. USTECH SOLUTIONS LTD 25 Canada Square, 33rd Floor London, United Kingdom E14 5LQ t. +44 (0) 207 0431940 m. +44 (0) 7764 220954 www.ustechsolutions.com www.ustechsolutions.com Thank You. USTech Solutions provides big data skunk works teams on flexible interim contracts that dramatically reduce the costs associated with developing a Cloud CRM Data Mart. Businesses that see opportunities to explore the rewards of customer science and the application of big data can HIRE their own skunk works team at very low cost as an alternative to internally sourcing talent and IT platforms. USTECH SOLUTIONS LTD 25 Canada Square, 33rd Floor London, United Kingdom E14 5LQ t. +44 (0) 207 0431940 m. +44 (0) 7764 220954 www.ustechsolutions.com