Customer experience strategy-Return on Customer not ROI!

Return On Customer Not Return On Investment
Numbers That Matter
Ajay Kelkar, May 24th, 2017

Cequity – Company Overview
75 million
customer
records
Enabling
10 million
transactions
300 automated
campaigns
every week
Participating
in 5 million
customer
conversations
What We Do
We build Customer Equity.
That’s our vow, that’s our game!
We help businesses
ACQUIRE customers intelligently,
RETAIN them optimally,
MANAGE them profitably and
ENGAGE them constantly
How We Do It
Using our
Customer Engagement Cloud,
and years of consult expertise,
we marry data, analytics,
marketing strategy and customer
experience
to improve the organization’s
profitability
DATA ANALYTI
CS
MARKETIN
G
STRATEGY
CUSTOME
R
EXPERIEN
CE
CONSULT

Agenda for today
•  The New marketing-how Marketing is changing?
•  State of CX in India-Cequity research
•  Transforming Marketing into a service
•  Silo busting-how to set your data free?
•  How do you embed Analytics inside a company?
•  Why Analytics needs to Story tell?
•  Wrap up-lessons learnt

HOW MARKETING IS CHANGING

A simple lesson…
v  Alisha Gupta
v  Online Shopper
v  Age 3.5 Years
v  Montessori School
v  Favorite Gadget – iPad

We don’t believe in
digital marketing.
We believe in
marketing in a
digital world
Clive Sirkin, CMO of Kimberly Clark

The New Marketing
•  Marketing will move towards relevancy
§  “Marketing that is done so well that it feels like a service”-To service is to Sell
•  “Marketing as a relationship”
§  Customers would only respond to “profitable conversations”
§  No one wants a relationship, unless it is relevant
•  Mass customisation: segmentation to increase dramatically
§  From 3-5 segments that most businesses maintain to lights-out, automatic modelling
that is driven by the data
§  Segment of 1

From Outside Your Industry The ‘TECH’ Players are competition

Customer obsessed companies

Marketers can again create long-term sustainable advantage
1950s+
Age of brand
1998+
Age of channel
2008+
Age of customer
Direct-to-consumer business
model transformation
Low cost 1:1 targeting and
engagement
Creation of national
brands
National media and mass marketing
Internet and eCommerce
Social networks & digital media
“Contenders”
(Brand to Consumer)

Age of “Customer obsession”
•  Customers are global.
•  They’re powerful.
•  Social media has tipped the balance of power in their favour.
•  Consumers now exercise more power over our brands than we do.
•  They are “always on”
•  Earlier, consumerism was about what they owned; today it is as much about what
they share.

And yet companies are not “Customer obsessed”
•  Comfort with old ways of doing things
•  Needs an internal evangelist
•  Or a large “external” provocation
§  Online retail is one such provocateur for Brick & mortar in India & globally
•  Also require readiness to change current Operating models

Readiness to change operating models

Data Equity will rival Brand equity!
•  How companies store, transform & use their data will become as potent a
marketing tool as Brand equity itself!
•  Companies have petabytes of data now!
•  If used powerfully enough, data about a customer can transform the customer
experience!

More Data than ever to get a complete Customer snapshot
17
Her search query
Her past behavior on
your site
Her history with your brand
online and offline
Her social network
and activity
All of her online
activity
All of her
purchase history,
online and off

And even more data to Append!

Consumer expectations have changed!
1.  Now: Consumers will want to interact anywhere at any 3me.
2. Can I: Do truly new things as disparate kinds of informa3on are deployed more eﬀec3vely
in ways that create value for them.
3. For me: want to be targeted precisely with a personalized experience.
4. Simply: They will expect all interac3ons to be easy.

To service is to sell: Using data to “listen better”
Transforming Marketing into a Service!

60% Data & 100 % Execution
Gartner: Only 20% of enterprise will use more than 50% of the total data they collect to gain
compe<<ve advantage.

Levelof
differentiation
Unique
Low
My
company
COMPETITION
Winning companies will differentiate basis Customer Experience
Analysis &
Modelling
Campaign
Development
Campaign
Execution
Campaign
Planning
Reporting &
Tracking
3. Customer
1. Customer Strategy
2.AcquisitionPropositions
2.SalesPropositions
2.RetentionPropositions
2.ServicePropositions
4. Measurement

DATA SHOULD NOT BE TRAPPED IN
SILOS
Silo Busting

A single view of the customer
•  Delighting customers doesn’t build loyalty; reducing their effort—the work they
must do to get their problem solved—does!
•  Customers want companies to be easier to do business with-Customer effort score
•  Unified view of the customer can help you do this!

Building Blocks for a good Customer Experience strategy
•  Support an institutional memory of the customer:
§  Different silos or “lines of business” creating campaigns & running them
independently means that you do not have a centralised contact history or
“intelligence” about customer response
•  Enable dialogues not just campaigns:
§  Consumer is no longer ready to listen to “push marketing” & the creation of a
“dialogue factory” is one essential element of a strong Customer strategy

HOW DO YOU EMBED ANALYTICS
WITHIN A COMPANY?

Get quick wins
•  My experience across both Retail & Retail banking has been that it is best to start
small, very small!
•  A lot of analytics can be done on an excel sheet and does not require a PhD in
statistics to do.
•  The simpler the analysis the “lesser” is the barrier in implementing the call for
action that emanates from it.
•  So use the “KISS principle”(Keep it simple stupid) & get early wins

Choose the area
•  Choose the business area where you want to make an impact.
•  Businesses doing very well, have a lot of competing ideas clamouring for a share
of the credit.
•  It’s in the businesses that need help, that you will find maximum support.
•  Get the CFO’s support for analytics.

Which source of data represents the most immediate
opportunity?
38 % 38 %
16%
4 % 4 %
Existing
underutilized
“dark data”
More detail
from
customer,
Social
Media
Content
Publicly
Available
Data
Commercially
Available
Data

ANALYSTS AS STORYTELLERS

Become storytellers

Analytics & the world of Journalism
•  One of the most deadline filled industries in the world is getting it right with what it
calls precision journalism!
•  Despite crazy deadlines, I am amazed at the powerful stories journalists write
using data.
•  I wish the analytics industry was half way as good!!

NYT-Budget simulator

Analysts as storytellers
•  When presenting ideas to decision makers, realize that it is your responsibility to
sell – not their responsibility to buy
•  Stories are the best way to influence!

Phd’s with Personality!
•  Storytelling with Data is becoming much more common today:
§  because of vast amounts of data being available in the public space &
§  also the emergence of a newer breed of younger, more “social” professionals
who consume such data with far more ease!

Wrap Up

Key Business Ideas
•  Build a core competency in “Data led” marketing
§  By 2017 the CMO Will Spend More on IT Than the CIO (Gartner)
•  Let Customer strategy drive investment in Martech stack
§  Choose technology aligned to your customer strategy

Key Business Ideas
•  Analytics doesn’t need you to solve only a technical problem but a “social”
one
§  Focus on embedding analytics into the fabric of the company
§  How do you demystify it & how do you link it to practical stuff-simplify it!
§  Analysts should become storytellers!
§  Analytics is both left & right brain!

Key Business Ideas
•  Customer behavior changes –spot them as they happen…
§  Event based Marketing
§  “Market so well that it feels like a service”

Key Business Ideas
•  Link Analytics to “the last mile”
§  Analytics should not be expected to deliver a “Aha moment”-instead it is a factory approach to
improve CX
§  So analytics is not a planning tool as much as it is a Execution tool
•  Establish a strong Customer management council:
§  group of top leaders in the company who are able to mediate to solve the issues that arise out of
taking customer centric action.

Lessons
•  Transformation takes time – phase your approach, lead with a vision
•  Incorporate short-term wins in each phase to show value
•  Technology may be the easiest part: Process, skill sets, operating model, and
organization may be the hardest
•  Get strategic partners involved – learning’s can allow you to accelerate
•  Show ROI but also get acceptance for a wider metric: Return on Customer! Get the
CFO on your side first!
!

Feedback @
•  Email: ajay.kelkar@cequitysolutions.com
•  Twitter handle: @ajaykelkar
•  http://in.linkedin.com/in/ajaykelkar1to1marketing

Customer experience strategy-Return on Customer not ROI!

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