1. Top Trends In Customer Intelligence
New Dynamics, New Opportunities
February 28, 2012

2. Agenda
Meeting Overview
Guest Speaker: Fatemeh Khatibloo Key Discussion Topics
Senior Analyst
Forrester Research Inc. New Trends in
Customer Intelligence
New Needs for CI Professionals
Michelle Boockoff-Bajdek New Breed of Agency - CEA
Vice President
Client Acquisition & Marketing
Key Takeaways
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3. New Trends in
Customer Intelligence
 What challenges do organizations – and specifically
CI professionals – face in this new ecosystem?
 What trends are driving those challenges?
 What do CI professionals need to deliver for
their organizations?
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4. Customer intelligence faces massive challenges
 Post-recession, budgets are barely holding tight
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5. CMOs are cautious about recovery
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6. And more cautious about spending as a result
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7. Customer intelligence faces massive challenges
 Post-recession, budgets are barely holding tight
 Emerging media continues to entice
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8. Leaders will innovate and expand in digital
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9. Customer intelligence faces massive challenges
 Post-recession, budgets are barely holding tight
 Emerging media continues to entice
 The Splinternet just keeps on going
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10. The Internet is entering a new era
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11. Consumers access “their” data from everywhere
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12. Customer intelligence faces massive challenges
 Post-recession, budgets are barely holding tight
 Emerging media continues to entice
 The Splinternet just keeps on going
 Data. Data. Data.
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13. The rules have changed…
Data & More Data
Customer Touchpoints
 Outbound Communications
 Interaction Channels
 Customer Service
 Fulfillment
Customer Activities
 Research
 Purchase / Acquisition
 Loyalty Behaviors
Data &  Product Reviews
More Data  Advocacy
 Inquiries
 Attrition
Social Media Insights
 Voice of the Customer
 Advocacy / Viral Marketing
 Product Insights
 New Ideas and Innovations
 Customer Service Feedback
 Public Relations
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14. Intelligence—not data—will
be the difference between
success and failure.
Human beings today
generate 200 exabytes of
information per year
- David Siegel
Entrepreneur, Futurist, Author
“Pull: The Power of the Semantic Web to
Transform Your Business”
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15. Customer intelligence faces massive challenges
 Post-recession, budgets are barely holding tight
 Emerging media continues to entice
 The Splinternet just keeps on going
 Data. Data. Data.
 We’ve entered the Age of the Customer
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16. We have entered the “Age of the Customer”
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June 2011 ―Competitive Strategy In The Age Of The Customer‖

17. The rules of engagement are changing
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18. The rules of engagement are changing
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19. The rules of engagement are changing
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20. The rules of engagement are changing
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21. The rules of engagement are changing
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22. New Needs for CI Professionals
 With this new business imperative, what are your
key strategic drivers, needs and pain points?
 What areas do CI professionals need help with?
 Do you understand the key opportunities and
challenges associated with CI?
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23. What we hear from our clients…
Key Needs & Pain Points
“How do I manage channel and product “My team is tasked with delivering
preferences across media to maximize insight to inform all parts of my business
relevance & loyalty?” – product development, sales, service...”
“How do I create a 360 view across all
“How can I better target customers for
channels to determine who my most
up-sell/cross sell opportunities…”
valuable customers are?”
“What strategies do I need to increase
“How do I ensure that every customer
repeat purchase rates in single and
interaction informs the next?”
across multiple channels?”
Strategy & Analytics Data & Technology Organization & Process
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24. CI Professionals need help…
 Capture data beyond traditional sources
– Unstructured data
– Online data
– Mobile data
 Integrating all of this new data
 Making sense of the new data
– What’s relevant?
– What’s actionable?
 Governing the data
– Privacy policies
– Data stewardship best practices
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25. They also want to talk about…
 Turning data into intelligence
– In real time (and often need help defining “real time”)
– Testing velocity continues to accelerate
– Analytics resources are increasingly valuable, and scarce
– Cross-channel attribution is no longer a “nice to have” – but they don’t know
where to turn, or how to apply it to marketing mix optimization
 Applying CI throughout the business
– At every interaction point
– Advanced advertising
– Superior experience
– Social intelligence
– Beyond marketing… think product development, creative testing, logistics
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26. But too often, their agencies struggle to adapt
 Why? Because they are built for yesterday:
– Focus on campaigns rather than experiences
– Can talk, but aren’t very good at listening or conversing
– Are built for waterfall vs. iteration
– Treat customers as audience rather than participants
– Are mostly “unbundled” – creating disparate skill sets
– Have trouble mastering many new specialties at once
– Moved down the value chain and rarely distinguish themselves from each other
– Can only move as fast as their clients
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27. Is Customer Intelligence used
throughout the organization –
beyond marketing – to drive
business decisions?
Poll 1. CI is not used in strategic and
business planning processes
2. CI plays a role in customer strategy,
but is limited to marketing functions
3. CI is systematically used as part of
strategic and business planning
4. CI services as the driver of business
strategy and planning, championed
at the C-level

28. New Breed of Agency – Customer
Engagement Agency (CEA)
 What is a Customer Engagement Agency?
 What capabilities are required?
 What is driving the need for this type of partner?
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29. Customer Engagement Agencies
Agencies that focus on defining customer-
oriented business strategies, and mapping
them to tactics and execution.
They help clients maximize customer
profitability and optimize customer
experiences by applying data and
analytics to every interaction.
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30. What Makes a Customer Engagement Agency?
 CEA’s will evolve from MSPs, digital agencies & direct marketing agencies
 They will move beyond campaign-centric models of marketing, and
embrace continuous cycles of customer engagement
– They measure performance on the basis of customer value, not just marketing
and campaign performance
– They recognize that every customer touchpoint is an opportunity to engage,
and find ways – through process and technology – to ensure each
communication is informed by CI
 CEAs are truly channel-agnostic
– While not all CEAs will have execution abilities in every channel, they will
support each one with insight
– They will focus on understanding the interplay between channels, and their
engagement strategies will reflect this
– They will embrace customer-controlled channels: blogs, reviews, social media,
and beyond
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31. What Makes a Customer Engagement Agency?
 CEA’s will drive business strategy like their predecessors never could
– They will function as “change management” agents, helping clients organize
around customer-centricity and channel agnosticism
– They will have a seat at the most senior planning table
– Their strategies and solutions will inform product development, merchandising,
creative testing, customer management, operations, and more
 They will earn these rewards by putting skin in the game
– Some CEAs will front the investment for new strategy recommendations in
exchange for managing the entire program -- messaging, targeting, execution,
and analysis – and a sizable cut of the profits
– Other CEAs will reduce retainers in exchange for bonuses paid out for
business performance
– As a result, these agencies will be extremely selective in their willingness to
pitch for client work that isn’t a good cultural fit
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32. What Makes a Customer Engagement Agency?
 CEAs will reorganize their own firms around the notion of “client-centricity”
– They will build integrated teams with deep vertical AND horizontal knowledge
– Teams will work collaboratively to ensure accountability
– Functionally, teams will work in localized pods or groups
– Frequent briefings and meetings ensure that every discipline on the account is aware
of new client transitions, changes, goals, and project timelines
– Teams will often have an account manager on-site with clients part- or full-time
– Compensation will be aligned with client business needs, satisfaction and
retention in addition to account profitability
– Technology investments will be driven by client needs
– CEAs will combine proprietary technology with off-the-shelf solutions as appropriate
– They won’t typically compete on the power of their “technology stack,” focusing
instead on the results they deliver with their chosen combination of tools
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33. Quaero’s View
The Customer Engagement Agency
Firms that provide customer intelligence-based solutions that help clients maximize
the value of their customer relationships.
Focuses on business challenges Customer Intelligence is core
Infuses customer intelligence Throughout the entire organization
Helps clients engage with customers Over time and across channels/media
Acts as the Customer Steward Complementing the Brand Steward
Hires and retains top, A-level talent As data scientists and marketing strategists
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34. Quaero’s View
The Customer Engagement Agency
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35. A Framework for CI Professionals
The Six Dimensions
 CI not widely used to drive strategic planning
 CI focused on near-term and opportunistic
in nature  Fragmented and widely varying
CI processes
 Weak operating model – no
 Fragmented approaches to Strategy basis for prioritizing requests
measuring marketing performance and managing scarce resources
 No closed loop – organization  Reactive CI stance – not providing
not tracking and learning from proactive consultative value
investments Measurement Process
CI
Data Organization
 Data quality a key issue but often  Many business people don’t
no clear accountability have skills to understand and
 Disconnected sources requiring manual Technology effectively leverage CI
effort to integrate  Hard to find appropriately
 Not enough use being made of online skilled CI resources
data – significant opportunity  Entrenched legacy culture of
 Some good tools in use but
 Overall data strategy unclear no standards decision-making
 IT / CI operating model still a work
in progress
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36. Is your organization ready to
leverage the strengths of a
Customer Engagement Agency?
1. Our firm will be ready to work with a
Poll CEA within 1 – 3 years
2. Our firm will be ready to work with a
CEA within 12 months
3. Our firm is already working towards
building a CEA relationship with an
agency partner
4. Our firm isn’t likely to work
with a CEA

37. Key Takeaways
 If we leave you with nothing else…
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38. Key Takeaways
If we leave you with nothing else…
Successful Customer Intelligence… Which requires…
Permeates an organization from its immediate Strong support at the executive and C-level, aligned metrics
efforts to its long-term strategic plans and goals as well as designated CI professionals with clear roles
and responsibilities
Is at the core of successful customer interactions Unified understanding of the customer across the organization
to deliver and derive maximum value as well as a clear strategy that outlines what is expected during
and as an outcome of each interaction
Is central to strategic planning and drives core Going beyond outmoded operational metrics and pulling data
business and financial decisions from multiple sources to plan around the customer lifecycle
Is supported by the data & technology necessary Centralized customer database that captures all transactional
to generate strategic customer insights and behavioral data to create a singular, comprehensive view
of the customer
Professionals need a new kind of help The Customer Engagement Agency – a firm that focuses on
defining customer-oriented business strategies and maps them
to tactics and execution
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39. Thank You
Questions?