5 Ways to Maximize Customer Value eBook
 

5 Ways to Maximize Customer Value eBook

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It's so noisy out there. Your customers are being inundated with more offers and choices than ever before. How can you reach them? ...

It's so noisy out there. Your customers are being inundated with more offers and choices than ever before. How can you reach them?

Marketing today is about delivering the most relevant offer that will ensure the maximum margin for your business over the long term – it's a continuous conversation with the customer.

Getting that conversation right creates loyal customers. In other words, it's about serving the right cookie, to the right person, at the right time. There's a better way to marketing – Learn more at http://www.pega.com/BetterWay

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5 Ways to Maximize Customer Value eBook 5 Ways to Maximize Customer Value eBook Document Transcript

  • A BETTER WAY 5 WAYS TO MAXIMIZE CUSTOMER VALUE OFFER LEARN CUSTOMER MEASURE OPTIMIZE TEST 1
  • GIVE THEM THE RIGHT COOKIE It’s so noisy out there. Your customers are being inundated with more offers and choices than ever before. How can you reach them? Pegasystems’ Ed Burek explains. Marketing today is about delivering the most relevant offer that will ensure the maximum margin for your business over the long term – it’s a continuous conversation with the customer. Getting that conversation right creates loyal customers. In other words, it’s about serving the right cookie, to the right person, at the right time. In the following pages, I’ll outline five ways to do just that. Ed Burek is the Director of Product Marketing at Pegasystems It’s about serving the right cookie, to the right person, at the right time. 1
  • COOKIE-CUTTER MARKETING DOESN’T CUT IT Multitudes of companies still rely on an outdated cookiecutter methodology, stamping out identical offers with no thought to the individual needs of consumers. As a result, they bombard their customers with irrelevant offers, executing campaigns that cannot cut across channel silos, that fail to join the telltale dots between data points, and that – once customers actually accept an offer – cannot efficiently fulfill the order. This is a costly model as companies are losing out on valuable opportunities to grow wallet share or, at a minimum, prevent profitable customers from leaving in favor of competitors. There is technology. Let’s use it Technology has advanced; there’s no reason to stick with older, less effective systems. Advancements in technology mean it’s possible to update the costly marketing model, focusing on each customer’s needs. Let’s look at how you can leverage technology to drive higher customer lifetime value. Lesson: The cookie-cutter model worked for Henry Ford but times have changed. Cookies made with care, using the best technology and with individual customers in mind, tend to attract the most loyal customers. 2
  • 1.BECOME TRULY CUSTOMER CENTRIC The typical marketing campaign approach is to pick a customer segment, pick a product you think these customers might like, and then cross your fingers that a tiny percentage of these customers might respond. There’s a better way. Lesson: Put the cookie catapault away; no more firing cookies from Often, this type of marketing is driven by technology limitations that simply don’t allow for a more targeted, nuanced approach. Fortunately, the latest marketing technology allows you to turn this model on its head, focusing on your customer rather than the product. This technology allows you to compare critical customer attributes and interests with your business goals and constraints to execute programs that deliver the perfect action, at the right time, for the right customer. Instead of indiscriminately forcing a bunch of cookies on them, this approach is like serving up their favorite cookie, every time. This ensures you not only deliver an action that will engage your customer, but one that will ultimately maximize the impact on your bottom line. a distance. It’s now possible to truly understand what Customer Needs your customers want. 3 Business Objectives
  • 2.PUT YOUR BIG DATA TO WORK Social channels, mobile devices and increased digital engagement are producing a vast sea of customer data. How do you take advantage of this data to better understand your customers and maximize value? Understand the data: First, you need predictive analytics to reveal insights within the data. But insights that cannot be applied within actual customer interactions are not all that useful. You must connect your insights to the ultimate action you want to deliver. Activate your data to optimize customer interactions. Generate Next-Best-Actions: The second step is to feed insights into a customer decision hub that can then act on them. Capture the best customer strategy and dynamically arbitrate across your understanding of your customer and your business goals to deliver the Next-Best-Action in real time. Lesson: ‘Chocolate cookies are popular.’ Not that useful. ‘John buys chocolate cookies 83% of the time.’ Useful. ‘Emma has never bought a chocolate cookie.’ Now that’s useful. CUSTOMER INSIGHTS 4 DECISION HUB NEXT BEST ACTION
  • 3.BE OMNICHANNEL Customers expect you to be wherever they are, whenever they want to interact with you – on their mobile devices, in the branch, at a kiosk, on the phone, in their social channels, on the Web, and beyond. Not only that, they expect an experience that is perfect for that channel and recognizes they have been in another channel. Lesson: Interactions must be seamless across channels. If you send a location-triggered mobile offer and the customer later phones the call center, it’s crucial that you can pick up from where the prior interaction left off. Because customers shift between channels and use more than one channel at a time, you must be sure actions and offers can move between channels and use the context of the channel to maximize relevancy. Equally important is to make sure that offers across channels do not collide or conflict. Knowing her dislike of chocolate, you wouldn’t offer Emma a chocolate cookie, would you? No, you wouldn’t. With a unified solution, you can develop a single strategy which will automatically adjust to optimize the actions for the channel. This streamlines the process of supporting multiple channels, as you can design once and deploy everywhere, rather than go through the time-consuming and costly process of creating and maintaining a separate user experience for each channel. 5
  • 4.CONTINUOUSLY OPTIMIZE Change can end up costing a lot of time and money as it gets harder to keep pace with fluctuations in competition, customer preferences, products, regulations, prices, technology and other business factors. So, what’s the secret to success? Lesson: Implement Adaptive analytics can turn static predictive models into dynamic models which ‘self-learn’ from each customer interaction, automatically adjusting offers and actions to account for changing conditions. Business-friendly tools that measure effectiveness in real-time allow the marketing team to adjust the levers to optimize each campaign without having to rely on time-consuming IT customizations – all of which can maximize marketing dollars, increase conversion rates and ultimately drive higher lifetime value. adaptive analytics to measure, test and optimize your offer. Keep delivering the cookies your customers will enjoy. They will love the cookies (and you). 6
  • 5.DELIVER ON YOUR PROMISE OFFER The final piece of the puzzle? To maximize life-time value you need to deliver on your promise. Whether that means quickly on-boarding a customer for a chosen service or immediately fulfilling the product associated with an accepted offer, the transition from offer to fulfillment must be seamless and immediate. Lesson: You promised an amazing cookie. Now it’s time to deliver, in the best possible way. ACCEPTANCE FULFILLMENT You can eliminate the all-too-common disconnect between offers and fulfillment with a unified marketing solution that directly controls fulfillment or easily integrates with existing back-office systems used for fulfillment. When customers experience a process that is transparent from the moment they say, ‘I’ll take it,’ through to completing the application or order and receiving the goods or services, you are delivering on your promise, creating confidence and good will that can lead to the highest realization of lifetime value. 7
  • DRIVING HIGHER LIFETIME VALUE: HOW WE CAN HELP We work with companies across the world, helping them to offer true value to their customers. Here’s how three of them are using our systems to make a difference. The brains behind business excellence At PNC, Pega provides the Financial Services Group’s centralized, real-time hub for customer treatment decisioning. Pega analyzes customer data and the context of each inbound interaction to recommend the Next-Best-Action based on this data. The solution has delivered positive revenue lift from day one and has driven exceptional levels of customer satisfaction. Temkin Ratings rates PNC as number one in customer experience among northeastern banks in the US. £24 million annual incremental growth Lesson: Building business excellence is not just about execution. it’s about real-time, responsive systems. Pega is the difference. Everything Everywhere, the UK’s largest telco, uses Pega to create a unique business case for every retention interaction. This solution has resulted in 4% additional retention of their best customers each month, and driven an incremental £24 million in annual operating margin. Creating cleverness Head of Marketing Operations at Royal Bank of Scotland, attests to the agility and cut-through Pega has been able to create. “What this system allows us to do is to be much cleverer in our campaigns. We can have event-triggered campaigns that may number from 1000 down to only a handful. It is not unusual to get response rates in excess of 25 percent.” 8