Talk at ESRC seminar series on use of technology in Financial Services. My talk focused on the potential and pitfalls of using social media for segmentation. Check my website for more on this topic: www.anacanhoto.com

1. ESRC Seminar Series
"Financial Services and Consumers:
Issues and challenges in a context of change”
Seminar 5: The role of new media and technology
The potential and pitfalls of using social
media for segmentation
Dr. Ana Isabel Canhoto
Principal Lecturer in Marketing
Oxford Brookes University
Adomingos-canhoto@brookes.ac.uk
www.anacanhoto.com
@canhoto
Ana Canhoto, 2015

2. Compliance
•Single Customer View
(Financial Services
Compensation Scheme)
•Know Your Customer (Anti-
Money Laundering regulations)
Follow the customer
•Age of the social customer
• User generated content
Makes (business) sense
•Customer insight (opp & risk)
•Targeted communications
Enhanced customer
engagement
•Niche opportunities
• Cross selling
• Proposition / Product
development
Ana Canhoto, 2015

3. Stage Benefit
1. Identifying and
profiling
customers
Data is of good quality – e.g., forums.
Timely information.
Provides insight into areas not covered by other data sources.
Towards a single view of the customer.
2. Evaluating
segment
attractiveness
3. Positioning the
company’s offer
Ana Canhoto, 2015

4. Stage Benefit
1. Identifying and
profiling
customers
Data is of good quality – e.g., forums
Timely information.
Provides insight into areas not covered by other data sources.
Towards a single view of the customer.
2. Evaluating
segment
attractiveness
Real time, granular data – specially for high value segments
Self-segmentation – e.g., communities of interest BUT earning right to
participate
Influencers – e.g., Klout
3. Positioning the
company’s offer
Proposition
flexibility
Degree to which customer preferences differ
Optimal Zone
Zone of Low
Return On
Investment
Zone of Customer Disappointment
Market Granularity
Degreetowhichthepropositioncanbetailored
Ana Canhoto, 2015

5. Proposition
flexibility
Degree to which customer preferences differ
Optimal Zone
Zone of Low
Return On
Investment
Zone of Customer Disappointment
Market Granularity
Degreetowhichthepropositioncanbetailored
Optimal Zone’
Stage Benefit
1. Identifying and
profiling
customers
Data is of good quality – e.g., forums
Timely information.
Provides insight into areas not covered by other data sources.
Towards a single view of the customer.
2. Evaluating
segment
attractiveness
Real time, granular data – specially for high value segments
Self-segmentation – e.g., communities of interest BUT earning right to
participate
Influencers – e.g., Klout
3. Positioning the
company’s offer
Enables development of highly targeted propositions.
Responsiveness and interaction creates deeper customer engagement
Ana Canhoto, 2015

6. • Volume
• Data type
• Images, language
…
• Data integration
• User ID
• Across org (M&A;
large firms w/ many
product lines)
• Permission
• Data as source of
competitive advantage
• Single view of the
customer
• Customer insight teams
• Board level
• Long term
• Focus on high value
customers
• Privacy and data protection
• Aftermath of PPI scandal
• Complaints
• Auditable process
• Open the floodgate
• One way communication
• Employee comments
• Customer centric
Ana Canhoto, 2015

7. ESRC Seminar Series
"Financial Services and Consumers:
Issues and challenges in a context of change”
Seminar 5: The role of new media and technology
The potential and pitfalls of using social
media for segmentation
Dr. Ana Isabel Canhoto
Principal Lecturer in Marketing
Oxford Brookes University
Adomingos-canhoto@brookes.ac.uk
www.anacanhoto.com
@canhoto
Ana Canhoto, 2015