Data Strategy Combined Feb 2010 V2

Welcome to Customer Data Made to Measure

A Seminar by Data Strategy & Atrium UK

Agenda

9.30 Introduction – David Reed, Data Strategy

CRM vs SCV – Paul Schulz, Atrium

10.30 Coffee

Rough Guide to SCV, Sarah Keyes, Vertu

Permission-Based Marketing, Tim Beadle, Atrium

Panel Q&A

12.30 Close

Some Views on Single Customer Views

David ReedEditor

Data Strategy


• State of the Nation Survey• October 2008 and 2009• 377 Respondents


Organisations with SCV

Yes53%

No47%


• SCV self-defined• Sample self-selecting• Anecdotally much lower

level• Depends on your view of

SCV

Organisations with SCV

Yes53%

No47%


Functions Using and Funding SCV

28.3

36.3

40.1

48.1

53.2

71.7

0.6

25.6

11.4

5.1

3.4

5.7

46

11

0 10 20 30 40 50 60 70 80

Dot.com

Board

IT

Finance

Customer Service

Sales

Marketing

(%)

Fund

Access


Functions Using and Funding SCV

28.3

36.3

40.1

48.1

53.2

71.7

0.6

25.6

11.4

5.1

3.4

5.7

46

11

0 10 20 30 40 50 60 70 80

Dot.com

Board

IT

Finance

Customer Service

Sales

Marketing

(%)

Fund

Access

• Marketing main driver - contrast with IT-driven enterprise SCV

• Significant board-level involvement

• Surprising gap in dot.com


Functions with Standalone Customer Database

5.6

12.8

17.6

33.3

38

41.9

53.8

0 10 20 30 40 50 60

Board

Dot.com

IT

Finance

Customer Service

Sales

Marketing

(%)


Functions with Standalone Customer Database

5.6

12.8

17.6

33.3

38

41.9

53.8

0 10 20 30 40 50 60

Board

Dot.com

IT

Finance

Customer Service

Sales

Marketing

(%)

• Customer data widely siloed

• Across the enterprise, but not enterprise-wide

• Challenges of “ownership” are multiplied


Activities Supported by SCV

11.2

18.4

19.2

20

29.6

32.8

42.4

42.4

46.4

0 5 10 15 20 25 30 35 40 45 50

Risk Management

Salesforce Planning

Salesforce Management

Demand Forecasting

Business Planning

Insight & Analytics

Marketing Planning

Customer Management/CRM

Marketing Campaigns

(%)


Activities Supported by SCV

11.2

18.4

19.2

20

29.6

32.8

42.4

42.4

46.4

0 5 10 15 20 25 30 35 40 45 50

Risk Management

Salesforce Planning

Salesforce Management

Demand Forecasting

Business Planning

Insight & Analytics

Marketing Planning

Customer Management/CRM

Marketing Campaigns

(%)

• More department than enterprise focused

•More tactical than strategic

•ROI clearly in short rather than long term


SCV Importance and Satisfaction

7.8

23.4

68.7

1.6

10.9

7.8

65.6

12.5

0 10 20 30 40 50 60 70 80

Very low

Low

Neutral

High

Very High

(%)

Satisfaction with SCV

Importance to Organisation


SCV Importance and Satisfaction

7.8

23.4

68.7

1.6

10.9

7.8

65.6

12.5

0 10 20 30 40 50 60 70 80

Very low

Low

Neutral

High

Very High

(%)

Satisfaction with SCV

Importance to Organisation

• No doubt about the importance of SCV

• Reasons to believe delivery has not met expectations

• Definitions part of the problem

Some Views on Single Customer ViewsInvestment Plans for SCV

Invest More41%

Invest the Same38%

Invest Less10%

Not Sure11%

Some Views on Single Customer ViewsInvestment Plans for SCV

Invest More41%

Invest the Same38%

Invest Less10%

Not Sure11%

• SCV still high on the agenda

• Respondents from 2009 survey only

• Still looking to realise the vision

Some Other Views on Single Customer Views


Is Unifying Everything in SCV Realistic?

Yes47%

No53%

• Greenplum Survey of 650 DWBI professionals

• They saw as majority claiming it is unrealistic - arguable


• CDI is one of the issues for SCV

• One of the key issues when specifying a solution

Does All Data Needed Get Into SCV?

Yes46%

No54%


• Data growth a challenge, but can be met

• Flexibility of solution likely to be critical

Is SCV Keeping Pace With Data Growth?

Yes60%

No40%

Your Views on Single Customer Views

• Do you need enterprise-wide or localised CDI?

• Will the need to show ROI be a bigger driver of SCV specification?

• Where is the data, who owns it and how easily can it be integrated?

PAUL SCHULZ – HEAD OF DATA ATRIUM

Having the Right Systems in Place

Big Software Vs Bespoke Build

The Challenge that determines ROI

Where are you on the Marketing Operational Matrix?

PAYBACK BAND 80

% R

ule

MARKETING WASTE

SYSTEM WASTE

• List Orientated• Manually Cranked

• CRM System• Fully Automated

• Database/Warehouse• Semi - Automated

PROCESS

Dialogue

Push

Segmented

Targeted

Profiled

Integrated

Response/RFM

FU

NC

TIO

NA

LIT

Y

Wherever you start point, there is path to the optimum position

PAYBACK BAND 80

% R

ule

MARKETING WASTE

SYSTEM WASTE

Target

Dialogue

Push

Segmented

Targeted

Profiled

Integrated

Response/RFM

FU

NC

TIO

NA

LIT

Y

• List Orientated• Manually Cranked

• CRM System• Fully Automated

• Database/Warehouse• Semi - Automated

PROCESS

CRM vs SCV

‣ Is SCV (Single Customer View) simply another new name that the marketers have given to a marketing database?

‣ Or are the major differences in approach, costs and outcomes for marketers that make SCV the “Rumble in the Jungle” for CRM Systems?

‣We look at the arguments for each in a tight market

Send me the bulletinUse my emailDon’t Text meI’m on TPS

The Tangled Webs we Weave

[email protected]@home.co.uk

[email protected]@hotmail.co.uk

CRM

‣Customer Relationship Management (CRM) consists of the processes a company uses to track and organize its contacts with its current and prospective customers. CRM software is used to support these processes; the software system can be accessed, and information about customers and customer interactions can be entered, stored and accessed by employees in different company departments. Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing.

‣ While the term CRM generally refers to a software-based approach to handling customer relationships, most CRM software vendors stress that a successful CRM effort requires a holistic approach. CRM initiatives often fail because implementation was limited to software installation, without providing the context, support and understanding for employees to learn, and take full advantage of the information systems.

0 1 2 3 4 5 6 7 0 1 2 3 4 5 6 7 Month

Welcome pack sentWelcome pack sent

External data overlaid

External data overlaid

Product Predictive

Segmentation

Product Predictive

Segmentation

Added to theLoyalty Scheme

Added to theLoyalty Scheme Loyalty Points

ActivatedLoyalty Points

Activated

Behavioural SegmentationBehavioural

Segmentation

Product based

emailing

Product based

emailing

Customer transacts

through website

Customer transacts

through website

Catalogue Mailing

Catalogue Mailing

Customer Transacts

Through Catalogue

Customer Transacts

Through Catalogue

Customer/Prospect first loaded

into CRM system

Customer/Prospect first loaded

into CRM system

LoyaltyWelcome

Pack

LoyaltyWelcome

Pack

CRM – A Process on a Customer

CRM Evaluation‣ Great for:

- Long term customer development

- Customer retention programmes

- Cross sell programmes

- Companies with big budgets and distant horizons

- Great for companies with masses of detailed data on small numbers of customers/prospects

- Changing the way a company relates to its customers

‣ Weaknesses

- Requires a change of corporate philosophy to get real ROI

- Expensive

- Inflexible

- Slow to change

- Difficult to integrate to other systems

- Seldom has a complete customer picture

- ROI is long term

If you have one already maximise its value – if not, a recession is not the time to buyIf you have one already maximise its value – if not, a recession is not the time to buy

SCV – Single Customer View

“Organizations typically have customer data spread across many systems. It is fragmented and often inconsistent. This makes it difficult for organizations to understand the true value of customers, their likely behaviour, their needs, and also the risks associated with them. Without a single view of those customers, organizations are in the dark and cannot effectively retain customers, cross-sell to them, deliver the right customer experience to them, or manage the risk associated with them. Some form of single customer view is, therefore, fundamental to managing customer relationships.”

Gartner, “Creating the Single Customer View with Customer Data Integration,” by John Radcliffe, 2006

The 5 Touch Points that must occur only once in a marketing database

Transactions

Permiss

ions

Interests

Sources

PersonPerson

Email AddressEmail Address

Mobile PhoneMobile Phone

AddressAddress

LandlineLandline

SCV is a Process on the Customer Data

‣ Data is taken from many relevant sources:

- Sales & Finance systems

- Web sites

- Call Centres

- Partners

- External Suppliers

- Marketing Campaigns

- CRM systems

‣ The data is loaded through a series of rules based automated processes

‣ A Single view of the customer is created

External Data Internal Systems

AcquiredData A B C

ValidationRules

Rules

Rules

Rules

Cleanse & Enhance

Match & De-dupe

LOAD

SCVMarketing Database

AutomatedReporting

AutomatedReporting

SourceArchive

AutomatedReporting

AutomatedReporting

AutomatedReporting

ZED

Integration is the Key to getting ROI

LoyaltyLoyaltyProgrammeProgramme

Sales/RetailSales/Retail

SuppliersSuppliers

AnalyticsAnalytics FulfillmentFulfillment

WebsiteWebsite

Call CentreCall Centre

EmailEmail

SCV Evaluation‣ Great for:

- Seeing a complete picture of a customers brand interaction

- Identifying crossover between group busineses

- Getting built rapidly and inexpensively

- Integration with other customer facing systems

- Being fleet of foot and getting relevant communications out very quickly

- Getting payback on investment

‣ Weaknesses

- Requires feeds from multiple source systems which will need input from Internal and External IT departments

- Requires very clear thinking about the cleansing, validation and de-duplication rules

- Does not come as an ‘off the shelf’ package so internal IT department may not currently have the requisite skills

If you need quality data for direct customer communication this is the fastest route to market and ROIIf you need quality data for direct customer communication this is the fastest route to market and ROI

Conclusions

‣Bespoke build is more likely to get you the system you need not the one the software salesman wants you to have

‣100% of the cost of SCV is for your use

‣On average 17% of a CRM system is usable by your organisation

‣Very surprisingly bespoke build gets better ROI by being both more useful to your orgainisation and cheaper

The Key things to Remember

‣ Its not where you keep your data that matters:

- Marketing Database

- Data Warehouse

- CRM System

- Single Customer View

‣ Its having the right data:

- The right people in it

- Good quality well cleansed and validated data

- Lots of emails

- Current data

‣ Most importantly – its what you do with it that really matters

COFFEE

Sarah Keyes – Global Head of CRM - Vertu

THE ROUGH GUIDE TO CREATING

A SINGLE CUSTOMER VIEW

SARAH KEYES

Head of Global CRM

Vertu

SINGLE CUSTOMER VIEW - PRINCIPLES SINGLE CUSTOMER VIEW - PRINCIPLES

1.Cultural change – customer heart of your business

2.Internal PR

3.Stakeholder buy in

4.Be clear on the scope

5.Look after your best asset

6.Be realistic

OBJECTIVES OF A SINGLE OBJECTIVES OF A SINGLE CUSTOMER VIEW CUSTOMER VIEW

‣Understand your customers

‣Engage in a relevant dialogue

‣Prioritise your direct marketing spend

‣Partnership opportunities

‣Identify your best customers

THE CHALLENGES – THE CHALLENGES – A FEW WORDS OF WARNING A FEW WORDS OF WARNING ‣Buy-in is critical

‣Manage & understand resistance

‣Involve key stakeholders

‣Data integrity

‣Identify integration points & data synchronisation

‣Understand the SCV users requirements – avoid rejection

‣Identify the key decision makers

IN SOURCE VS. OUT SOURCEIN SOURCE VS. OUT SOURCE

OUTSOURCING OUTSOURCING o SpeedSpeed

o ExpertiseExpertise

o FlexibilityFlexibility

o You are the customerYou are the customer

o Systems integration – leading technologySystems integration – leading technology

o Quality of analyticsQuality of analytics

o Problem resolutionProblem resolution

o CostCost

IN SOURCE VS. OUT SOURCEIN SOURCE VS. OUT SOURCE

INSOURCING INSOURCING o PrioritisationPrioritisation

o ExpertiseExpertise

o Legacy systemsLegacy systems

o InfrastructureInfrastructure

SELECTING A SUPPLIER SELECTING A SUPPLIER

o What’s importantWhat’s important

o Clear objectives and criteriaClear objectives and criteria

o StakeholdersStakeholders

o ChemistryChemistry

o CompetencyCompetency

BENEFITS OF A SINGLE CUSTOMER VIEW BENEFITS OF A SINGLE CUSTOMER VIEW

‣Understand your customers

oRelevant, timely dialogue

‣Effectively manage the customer lifecycle

‣Cross sell and up-sell

‣Measurable results

‣Customer insight generation

‣Identify your best customers

SUMMARYSUMMARY

‣Single Customer View Principles

‣Objectives

‣The challenges

‣In source vs. out source

‣Selecting a supplier

‣Benefits of creating a Single Customer View

‣A final thought

A FINAL THOUGHTA FINAL THOUGHT

Your focus should be generating the customer insight and maximising the Your focus should be generating the customer insight and maximising the

single customer view’s value NOT managing the data maintenance and single customer view’s value NOT managing the data maintenance and

systems functionalitysystems functionality

Tim Beadle - Head of Consulting Atrium

Permission Based Marketingor

why your database just got a whole lot more complicated

What we do

‣We help clients make better and more profitable use of their Marketing Data

What we do

Data Consultancy

Consumer touchpoint/

Data auditing

Systems optimisation

Customer targeting

Data privacy

E-Marketing

Marketing Database

‘SCV’

Design

Build

Host

ROI-Based Modelling

Prospect-ProfitabilityIndex

FlexPoint

FraudScreen

Some of our Clients

First, some “blue-sky” observations from people smarter than us

© Tim Beadle 2008

On-line budgets are expanding

‣46% are increasing overall marketing budgets in 2010

‣Digital Marketing will be 24% of the average Marketing budget in 2010

‣70% are investing more in “off-site” social media

‣54% are investing more in E-mail marketing

‣45% say getting an integrated view across on-line marketing is the single biggest issue

Sources: Econsultancy, ExactTarget, CoreMetrics

But there is a problem with this

And its only going to get worse

Loyalty is more ephemeral

Source: GoCompare Jan 2010

So, what do customers want?

Source: 2010 Edelman Trust Barometer

What re-enforces trust?

‣“Offer customers a greater sense of of control and certainty” Patti Williams, Wharton Professor of Marketing

‣“Communicate frequently and relevantly” – Don Peppers, Peppers & Rogers

‣“Putting the customer in the driving seat”

Contrasting CRM and PBM

‣Customer Relationship Management requires:

- That customer value, needs and behaviour are predictable and stable;

- That companies can institutionalize and control their response to an individual customer;

- That products and services can be mass-customised;

- It requires “commercial know-ability”


‣Permission Based Marketing requires:

- That the customer or prospect has given consent for some form of communication;

- That the company does not exceed the bounds of the consent;

- That consent is retained through intelligent use of the permission

Permission Puts the Customer in Charge


‣Customer Relationship Management

- The Company predicts needs and initiates contact

- The Customer reacts

- Response rates usually less than 2%


‣Permission Based Marketing

- The Customer expresses a need

- The Company reacts

- Response rates 35% - 72%

Permission Has REAL Value

The 4P’s Revisited

‣Product

- Competitiveness is critical. CRM, PBM or any other customer centric approach does not substitute for a competitive offer

- Customers have access to comparative pricing in a few clicks, at worst a phone call.

‣Permission

- Permission acquired for specific purpose, refreshed and expanded

‣Proximity

- Visible permitted presence at the right time, place and media

‣Place

- People now have “multiple identities” – how and where do you interact?

Permission In Practice – a Case Study

Case Study - ScotRail

The Results

‣Database up from 70,000 to 800,000 permissioned emails

‣Response rates up from 3% to 46%

‣Lead generation costs down by 75%

‣Winner 2009 UK Transport Awards

Permission, Privacy and Personalisation is the key

Click Thru' Rate

0.00%2.00%4.00%6.00%8.00%

10.00%12.00%14.00%16.00%

0 1-2 3-4 5-6 7+

Elements of Personalisation

Source: Banta Corp

Name (89.8%)E-mail address (78.1%)Street address (60.7%)

Past transactions (46.8%)

Net worth (8.2%) Employer (10.9%) Job title (12.1%) Income (12.5%)Weight (14.4%)

What will be

shared?

Source: National Retail Assoc

Customers and Prospects expect and respond to Personalisation

Personalisation has to be relevant

Privacy is critical and trust is required

Personalisation is only possible with Permission

Communications: Device and channel are converging

Do you go through or round the cloud – or both?

Application

Device

Handset Computer TV SmartPhone

Vendor

Send me the bulletinUse my emailDon’t Text meI’m on TPS

What IS the communication channel – and where?

[email protected]@home.co.uk

[email protected]@hotmail.co.uk

What do you think you’re Interrupting Now?

When is the right time to contact John?What is the right channel?

Is there a way of finding the right channel?

FlexPoint Consumer Insurance

FlexPoint

People Communicated

With Phoned Mailed Quoted BoughtContacts Per Sale

Marketing Cost Per

Sale

1 518,199 305,081 292,388 122,028 25,428 23 17.85£ 2 518,071 304,411 296,075 119,272 19,933 30 22.78£ 3 515,213 313,162 282,256 118,055 18,039 33 25.53£ 4 518,442 333,294 256,710 114,804 16,506 36 28.90£ 5 514,520 332,631 255,471 113,408 15,454 38 30.79£ 6 518,590 346,129 244,838 116,329 14,625 40 33.42£ 7 518,248 337,069 254,691 108,944 13,963 42 34.44£ 8 519,724 330,237 270,225 108,096 13,469 45 35.44£ 9 518,840 331,114 266,483 103,785 12,732 47 37.49£

10 507,109 313,168 267,704 94,577 11,822 49 38.58£ 11 513,746 317,633 277,673 97,741 11,529 52 40.29£ 12 530,270 329,759 278,428 93,927 11,204 54 42.77£ 13 529,250 329,352 280,713 89,681 10,557 58 45.41£ 14 524,927 323,697 277,423 81,057 9,638 62 48.94£ 15 524,820 324,089 272,391 72,041 8,602 69 54.71£ 16 519,769 324,252 263,788 60,263 7,634 77 61.34£ 17 518,957 330,786 256,786 57,819 6,811 86 69.59£ 18 519,783 335,192 248,121 51,742 5,884 99 81.01£ 19 518,061 329,697 249,721 46,151 4,875 119 96.52£ 20 511,634 322,483 250,449 51,293 1,699 337 271.99£

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 201 316564 156599 77937 96735 46235 42535 32653 28825 9493 22347 11421 16101 11602 7276 9475 4854 7667 4986 6672 199342 142149 154783 86508 66231 100620 113865 42615 76395 28273 29589 12352 19671 14774 10713 4790 7199 3113 3260 2188 41733 70930 110021 142073 96061 121147 99092 97646 21840 18473 41637 13418 17862 15959 4570 3768 2515 3011 2813 1085 18694 49996 46175 124867 83400 36734 97624 76645 80277 72762 36914 30775 18195 66644 6040 9488 4488 4342 2289 1533 37865 35233 76326 55653 101985 70418 148162 76889 33572 51649 32851 40732 23822 11539 9849 56350 13459 1261 1715 949 22756 41714 60145 53184 32555 106857 70547 89650 70897 91059 42210 65974 44084 22918 30871 672 3579 8119 580 1872 20997 54132 49174 83548 67115 59385 85970 60380 65531 81903 68933 26682 38256 39123 26180 894 28735 6145 1697 353 58638 16765 42852 72646 102401 80226 56070 85920 61281 50113 29515 51337 29764 18074 49746 39068 16550 12116 3932 1848 7769 19834 54363 30394 48971 71254 64806 66561 66451 35335 82071 53387 25994 88803 22883 37542 28766 6912 4743 644 1477

10 33007 26814 26781 53935 18775 33842 68312 27687 44025 69485 74454 80031 14114 46050 71870 100585 16166 5252 7682 344211 27343 14639 32314 38916 40445 50374 46175 52300 50277 33089 44039 77713 66939 98999 37644 37920 24466 15619 6094 819812 11262 25108 25323 28893 34007 15831 39238 38805 29032 46410 30637 72958 98152 139860 81503 16419 35711 8962 3281 552313 8778 15939 4185 34999 38300 23104 10395 53584 79073 64441 74516 61077 47544 27278 69872 44214 45726 9520 1170 5509014 4885 12592 14949 12139 38821 21432 26317 50990 54814 44574 47863 48398 33871 62919 97010 99376 37941 23517 16390 1716915 7580 8135 12465 6344 32491 25464 22366 38872 29744 30130 69781 58212 55355 39221 109709 69450 89986 41510 71117 1878316 2285 6660 8341 15425 10355 11989 8273 17609 49740 49021 22801 25764 35091 42058 23229 72755 95904 35756 60621 6959917 12750 5520 8925 3071 17959 15062 4667 28275 10510 25618 36416 42961 43622 56227 60996 109281 125753 91607 287999 17455018 1661 4198 6832 6675 3590 2758 4226 7277 8540 13307 12745 17401 24455 16880 27660 22194 99005 187985 279602 22263319 3061 1438 5354 3919 5253 4466 2790 6495 3617 12770 10796 8251 8189 6591 11408 14145 82451 224413 238949 30415820 34063 10431 8600 7722 7064 6891 6293 9609 5855 10422 13866 8085 13310 8682 12315 20192 29886 86647 238554 506330

FlexPoint Version 4 (All Communications)

Fle

xP

oin

t V

ers

ion

5 (

Ou

tbo

un

d)

Predicting Channels to Market

FlexPoint Code = Relative Investment to Acquire

1= Low Investment 20 = High Investment

Cross Tabulation Showing Number of Prospects in the Marketing Database

FlexPoint Code For Direct Mail

Fle

xP

oin

t C

od

e F

or

Ou

tBo

un

d T

ele

Sa

les

Only Respond toMail

Only Respond toTeleSalesAlways Respond

Never Respond

10 Rules For Permission Based Marketing

1.Put the customer in control – direct access to permissions

2.Ask customers about themselves – they love to talk

3.Use the simplest appropriate technology – complex fails

4.Collect only the data you can afford to maintain

5.Have reasons for the dialogue that benefit the customer

10 Rules For Permission Based Marketing

6.Never, ever abuse permission

7.Maintain dialogue through regular communications

8.Actively refresh permissions

9.Don’t let permissions last forever

10.Apply permissions consistently across channels

What Next?

Take a seat and have a chat with usTell us where you are and where

you want to get to

Thanks for your time

Tim [email protected]

Data Strategy Combined Feb 2010 V2

Documents

Transcript of Data Strategy Combined Feb 2010 V2