Can You Really Fake Customer Centricity? - Digiday Brand Summit - Dec 2012
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Presented by Kathy Hecht, VP Marketing at Digiday Brand Summit Dec 4, 2012. Joint research conducted by Digiday and Acxiom reveal that while marketers want to use data to provide customer-centric experiences, they struggle to make sense of the vast information flowing into their marketing processes while juggling new channels, response options and meeting consumer expectations. Best practices for the use of marketable data often shift from behavior and intent to third-party search and social. While they realize they must find the data connections that maximize the value of customer relationships, their aspirations are often misaligned with organizations’ overall strategy. Nonetheless, they must prepare to connect customer data toward better experiences and results while maintaining the proper balance between consumer privacy and marketing profitability.
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Can You Really Fake Customer Centricity? - Digiday Brand Summit - Dec 2012
- 1. CAN YOU REALLY FAKE CUSTOMER CENTRICITY? DIGIDAY BRAND SUMMIT Kathy Hecht, VP Marketing, Acxiom December 4, 2012 © 2012 Acxiom Corporation. All Rights Reserved. AC-XXXX-XX
- 2. “I’LL HAVE WHAT SHE’S HAVING.”
- 3. HOW MANY OF YOU FAKE IT?
- 4. THE COMPANY YOU’RE IN… Many highly self-assess their own Yet, few can measure value at customer-centric capabilities… customer level! We have a relentless focus on building customer insights to better understand 48% and recognize high value customer… Have or will have value score for each 21% customer
- 5. WHY IS THIS HAPPENING? Lack of Resources: 22% Incorrect Measures/Incentives: 24% Lack of Data or Technology: 54%
- 6. POOR DATA INTEGRATION ABOUNDS 70% of marketers poorly integrate data from online & offline sources
- 7. RESULT: POOR CUSTOMER RECOGNITION 74% of marketers poorly recognize customers in real time
- 8. CREATING CUSTOMER CENTRICITY… Really.
- 9. AUTOMAKER KEY PURCHASE DRIVERS > Timing is EVERYTHING > SILO AND INCOMPLETE DATA Broad market conditions
- 10. AUTOMAKER WHAT DID THEY DO? > Corrected incomplete data > Central data repository > Custom analytics focus on “in market” > Marketing memory of channel performance
- 11. AUTOMAKER RESULTS > $500 million in annual contribution margin > $20 million in operational cost savings
- 12. GLOBAL HOSPITALITY VACATION OWNERSHIP KEY DRIVERS > Visit before you buy > GUEST EQUALITY Market conditions for discretionary spending
- 13. GLOBAL HOSPITALITY WHAT DID THEY DO? > Moved beyond basic segmentation > Used ALL relevant data to model/score > Quantity or Quality criteria > Scalable solution
- 14. GLOBAL HOSPITALITY RESULTS > Lower quantity/Higher quality of leads > Improved marketing ROI > 50% increase in Volume per Guest
- 15. SO, WHAT CAN YOU DO? > CREATE COMPLETE AND ACCESSIBLE DATA > ASSIGN CUSTOMER VALUE > INVEST PROPORTIONATELY
- 16. IF YOU’RE DOING IT RIGHT… THERE’S NO NEED TO FAKE IT!
- 17. THANK YOU. Kathy.Hecht@Acxiom.com facebook.com/acxiomcorp twitter.com/acxiom linkedin.com/company/acxiom © 2012 Acxiom Corporation. All Rights Reserved.
Notes de l'éditeur
- Unlike Sally, in this case the “it” is customer centricity.For example: If your just measuring media…then you’re probably not really customer centricIf you’re just counting conversations…then you’re probably not really customer centricYou may be providing the best customer service on the planet, but you may not be customer centricTo be truly customer centric you need to be measuring customer value AND investing proportionatelySo…
- Raise your hand if you have ever faked it!If I asked you to raise your hand if your company is customer centric, according to our research, nearly half of you would raise your hands.You might be faking it….
- We found: Marketers have very noble, genuine aspirations. They want to do good things and they think they’re on the right track. All marketers would like to be customer centric. Almost half described their organizations as “relentlessly focused” on better understanding their customers and most highly assess their own customer centricity capabilities.(BUILD HERE) YET…only 1 in 5 marketers could measure value at the customer level! That’s a really big gap. Question: “Why the disconnect? Why do marketers rank themselves as high in customer centricity but low in the very area that is essential to actually being customer centric?” When we drilled in we found more clues…
- We asked marketers to ID their top barriers to achieving customer centricity…22% Lack of Resources – if money isn’t invested in solid data integration, for internal systems, offline and online, with partners, then how can you hope to achieve genuine customer centricity? 24% Incorrect Measures & Incentives - We saw only 1 in 5 marketers could measure value on the customer level the base-line measurement from which all other marketing measures and incentives should start. How many marketing orgs are organized and incententivized according to channel or media success. (more on this in the next slide)54% Lack of Data & Technology - Over half do not have the right skills, tools or processes necessary to leverage data across the enterprise as to understand customer value and thus create customer centricity. Contrast that with 48% who declared they’re “relentless focused” on this.Key Take-Away: This is all really a matter off strategic (mis)alignment. When you look at these 3 barriers together the picture that emerges is: most marketing programs are not tightly aligned with the companies’ overall investment strategy. Funding follows results. So, if you’re not getting the $$’s your not aligned to measurable top-line and bottom-line results. You’re really just faking it, (even if you don’t want to).
- If we dig deeper: Customers have a lot of choices of ways to interact with your brand. You should expect to want to know about ALL of them. Most companies already borrow and blend creative between online and offline but… how can you genuinely know your customer value if you can’t understand and align both their online and offline activity? (87% of our sample had multi-DB integration needs AND 70% of marketers said they couldn’t integrate their data from multiple resources.) Segue: With poor integration skills hindering brands’ ability to be customer centric……..
- One of he negative results? 74% of marketers can’t recognize their customers in real time. The positive: this green 26% relates to those who connect all of their customer data into a central repository, which understands what a customer does or doesn’t do and logically recalibrates to coordinate and optimize the next step...Segue: It’s not all doom and gloom. Just look at many of the new marketing job descriptions these days. Analytics marketers are in high demand these days. Integrating and deciphering value from data fuels customer value and customer centricity. There are success stories.
- The bright light of customer centricity hope lies in the savvy use of customer data. Let’s look at some examples. These are some brands who are using data to achieve a sophisticated level of customer centricity.
- <Theme: Analytics>1) Describe car buying marketMARKET TIMING – changes to car buying experience. 4-5 years has become 6-8 yearsNarrow windowRising gas prices – influence on model choicesWhat was their major problem?
- Here’s what they did:1.) Corrected incomplete dataThey had lots of divisions, models and dealerships with customer data that was siloed, duplicate, and not integrated/coordinated. There were no data hygiene practices across this big extended enterprise. It was a mess.2.) Created a central repository - They bring all data (their own and 3rd party) together into a “single source of truth” - that connects customer segment information with relevant, consistent product and service relationship data. 3.) Created custom analytics to precisely ID audiences who are in ‘buy mode’. 4.) They ‘remember’ - They also know which channels are working and maintain an ‘institutional memory’ - remembering which worked and which didn’t.
- Results> The client saved $1.2 million annually in returned and “spoiled” mailCampaigns achieve 99.9% quality and on-time performance across 300 million consumer communications annuallyThis company’s not faking it.
- <Theme: Invest proportional to value>Describe vacation ownership business. How can a premium brand hospitality firm understand their prospects and customers so that they can invest more in the most valuable, top candidates – (those that desire “memorable experiences”) – and less in the more undesirable candidates (those who they call ‘career tourers and are more interested in low prices). They also wanted to create engagements that felt more authentic to their premium brand vs ‘low cost’ discount.
- Here’s what they did: HH and Income segmentation was not enoughAggregated more data from both on-line and off-line channels - created custom models to score leads against all relevant data pointsAllowed properties to chose between quantity or qualityThey invested in analytics technology to ensure sustainability
- What happened? The premium hospitality brandsdecreased the quantity of leads and increased the QUALITY. By doing this they removed marketing waste (by reducing the number of people it targets) and refocused their savings on better messaging, offers and creative for the top candidates. They actually loweredcosts while increasing profits so their ROI was improved as well. They are playing to their audience and are a good example of a customer centric company that’s not faking it.
- We’ve just gone through some examples of genuine customercentric activities. The broad idea they have in common: they use data as an asset to better understand customer value and investing in media and communications proportionately. So there are 3 things you can do, today to be genuine in your customer centricity:1.) Data assessment – have to have it and be able to use it1.) Assign customer value.Focus on your prospects and customers like you would on a stock portfolio. I think we all get this in the abstract but let’s take it to the practical: Focus on attribution as a top prioritiesThere’s data located everywhere in your enterprise and you need to use it. It is an untapped enterprise asset. Seek it out. You don’t need to use it all at once but you do need to find the pockets where there’s real insight – your CRM system for example. 2.) Invest proportionately. Invest more $$’s in your highest value customers and less in your lowest performers. This will remove waste immediately. Use the savings to re-invest in your highest performers. If you know your customer value than you can do this across all audience buys and media channels. You can also show good returns in a short amount of time which gets us to the next point…You can start to close the gap here with core measures around customer value and showing how ‘investment’ dollars are performing and where they could perform much better. Key Takeaway: A handful of core customer value measurements should span the enterprise and align organizations toward a ‘north star’.
- Just end on a funny note…..