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Fake Customer Centricity
- 1. CAN YOU REALLY FAKE CUSTOMER CENTRICITY? March 20, 2013- Andrew Dorn, Managing Account Director, Acxiom © 2013 Acxiom Corporation. All Rights © 2013 Acxiom Corporation. All Rights Reserved. Reserved.
- 2. “I’LL HAVE WHAT SHE’S HAVING.” © 2013 Acxiom Corporation. All Rights Reserved.
- 3. HOW MANY OF YOU FAKE IT? © 2013 Acxiom Corporation. All Rights Reserved.
- 4. THE COMPANY YOU’RE IN… Many highly self-assess their Yet, few can measure value at own customer-centric customer level! capabilities… We have a relentless focus on building customer insights to better understand 48% and recognize high value customer segments Have or will have value score for each 21% customer © 2013 Acxiom Corporation. All Rights Reserved.
- 5. WHY IS THIS HAPPENING? Lack of Resources: 22% Incorrect Measures/Incentives: 24% Lack of Data or Technology: 54% © 2013 Acxiom Corporation. All Rights Reserved.
- 6. POOR DATA INTEGRATION ABOUNDS 70% of marketers poorly integrate data from online & offline sources © 2013 Acxiom Corporation. All Rights Reserved.
- 7. RESULT: POOR CUSTOMER RECOGNITION 74% of marketers poorly recognize customers in real time © 2013 Acxiom Corporation. All Rights Reserved.
- 8. Once You Recognize A Customer, Then What? Identify Audience Propensities! • http://romeo.blkbx.com/ 8 © 2013 Acxiom Corporation. All Rights Reserved.
- 9. CREATING CUSTOMER CENTRICITY… Really. © 2013 Acxiom Corporation. All Rights Reserved.
- 10. AUTOMAKER KEY PURCHASE DRIVERS • Timing is EVERYTHING SILO market conditions • Broad AND INCOMPLETE DATA 10 © 2013 Acxiom Corporation. All Rights Reserved.
- 11. AUTOMAKER WHAT DID THEY DO? • Corrected incomplete data • Central data repository • Custom analytics focus on “in market” • Marketing memory of channel performance 11 © 2013 Acxiom Corporation. All Rights Reserved.
- 12. AUTOMAKER RESULTS • $500 million in annual contribution margin • $20 million in operational cost savings 12 © 2013 Acxiom Corporation. All Rights Reserved.
- 13. GLOBAL HOSPITALITY VACATION OWNERSHIP KEY DRIVERS • Visit before you buy GUEST EQUALITY • Market conditions for discretionary spending 13 © 2013 Acxiom Corporation. All Rights Reserved.
- 14. GLOBAL HOSPITALITY WHAT DID THEY DO? • Moved beyond basic segmentation • Used ALL relevant data to model/score • Quantity or Quality criteria • Scalable solution 14 © 2013 Acxiom Corporation. All Rights Reserved.
- 15. GLOBAL HOSPITALITY RESULTS • Lower quantity/Higher quality of leads • Improved marketing ROI • 50% increase in Volume per Guest 15 © 2013 Acxiom Corporation. All Rights Reserved.
- 16. B2B INFORMATION SERVICES GETTING TO KNOW END USERS • Concern about the long term viability of the business portfolio True Customer Knowledge • It appeared that the rise of the internet would change the newspaper and publishing markets forever. 16 © 2013 Acxiom Corporation. All Rights Reserved.
- 17. B2B INFORMATION SERVICES WHAT DID THEY DO? • Segmented their market into 8 groups of true end users • Identified market share and competition in each segment • Developed products to fill gaps in offerings and gain market share – based on total revenue and PROFIT opportunity. • Prioritized product development to address most important end users in those segments. • Implemented marketing technology and processes allowing them to implement real-time customer centric interaction functionality 17 © 2013 Acxiom Corporation. All Rights Reserved.
- 18. B2B INFORMATION SERVICES RESULTS • A dollar of revenue now yields approximately twice the operating profit it did back in 2000. • Over the past decade, the company has seen its market capitalization triple. • The company’s electronic information products, software, and services now account for 80% of its revenue, completely the reverse of its model a decade ago. 18 © 2013 Acxiom Corporation. All Rights Reserved.
- 19. B2B Focus – It is More Difficult! Need to address customer duality ● OEM’s / Distributors / Retailers ● End Users (Businesses, Consumers) ● Panels, Advisory Boards ● Anonymous Population Challenges ● Metrics Sales cycles are longer and multi-layered © 2013 Acxiom Corporation. All Rights Reserved.
- 20. SO, WHAT CAN YOU DO? CREATE COMPLETE AND ACCESSIBLE DATA ASSIGN CUSTOMER VALUE INVEST PROPORTIONATELY © 2013 Acxiom Corporation. All Rights Reserved.
- 21. CUSTOMER CENTRICITY REMAINS AN ATTRACTIVE GOAL 21 © 2013 Acxiom Corporation. All Rights Reserved.
- 22. SOME BRANDS ARE SEEN AS ROLE MODELS Common themes… • Engagement feels authentic to brand • Institutional memory enables personalized & integrated experiences. Brands do for, not to, customers • Sustaining loyalty/preference…brands create more value than they capture • But Are They Customer Centric? 22 © 2013 Acxiom Corporation. All Rights Reserved.
- 23. SOME BRANDS ARE SEEN AS ROLE MODELS What is True Customer Centricity? • “. . .they’ve moved beyond lip service and re-oriented their entire operating model around the customer, increasing customer satisfaction and their own profitability in the process. Customer Centric companies understand not only what the customer values, but also the value the customer represents to the bottom line” Booze | Allen | Hamilton 23 © 2013 Acxiom Corporation. All Rights Reserved.
- 24. IF YOU’RE DOING IT RIGHT… THERE’S NO NEED TO FAKE IT! © 2013 Acxiom Corporation. All Rights Reserved.
- 25. Thank you! Any questions? © 2013 Acxiom Corporation. All Rights © 2013 Acxiom Corporation. All Rights Reserved. Reserved.
Editor's Notes
- 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.
- 5 consistently mentioned brands have common themes…Leverage digital mediaCreate enthusiastic brand advocatesFor incredible retentionWhere engagement feels naturalWith fluidity in marketing across channelsGREAT CUSTOMER SERVICE – BUT NOT CUSTOMER CENTRIC!! AMAZONAmazon, good data tracking and reco engineAmazon - integration of data to provide customer-centric offers across multiple screensAmazon- they recognize customers and meet customer needs wellAmazon. They have loyal customers who keep returning purchase after purchase.amazon - excellent in knowing what their consumers wantAPPLEApple-- built amazing consumer-centric organizations leveraging PR and digital media; enthusiastic brand advocates, incredible retentionApple - they marry product and service seamlessly and add value without ever appearing disruptive or selling.Apple, ability to get across "magic" of products in campaignsStarbucksstarbucks--fluidity they show in mktg across channelsStarbucks, their gold card program. Viacom, their focus on data (sell and buy) to drive their businessStarbucks. Personal experience with their top notch CRM/loyalty efforts.Southwest airlines -- regular touches, value customer tools, good reward program for loyalty
- 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.
- <Theme: Invest proportional to value>Describe the information services business. Case focused as a global information services company, selling to businesses and professionals in the financial, legal, tax and accounting, scientific, and health care sectors. When its proposed acquisition of Reuters obtains regulatory approval and closes, Thomson will become the largest information company in the world. Revenues of approximately $13 BB.
- Here’s what they did: Journey a decade in the making . . . . More finitely segmented their market into 8 groups of end usersIdentified true market share and competition in each segmentDeveloped products to fill gaps in offerings and gain market share. For example, customer service personnel had heard time and timeagain of customers’ wish for seamless integration with Excel, while some of the product development team felt that portfolio analytics were more important.Developed understanding of the customer’s work flow and the needs along that workflow. Leveraging advanced marketing technology with our Web site as a central source for gathering critical customer information, we are able to understand our prospects’ “digital body language.” In the same way that body language helps a sales associate guide the sales process, the digital body language–the aggregate of a prospect’s digital activity, such as emails opened, Web pages visited, webinars attended, or referral source (Google, social media site, etc.)–helps us deliver an offer or experience that is customized to the individual. In addition, such an approach helps us more intelligently segment not only by traditional factors (vertical industry, functional role/title, region, etc.), but also by online touch points (social media, mobile phone, etc.).For example, customer service personnel had heard time and timeagain of customers’ wish for seamless integration with Excel, while some of the product development team felt that portfolio analytics were more important.
- 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.
- Just end on a funny note…..
- 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’.
- 5 consistently mentioned brands have common themes…Leverage digital mediaCreate enthusiastic brand advocatesFor incredible retentionWhere engagement feels naturalWith fluidity in marketing across channelsGREAT CUSTOMER SERVICE – BUT NOT CUSTOMER CENTRIC!! AMAZONAmazon, good data tracking and reco engineAmazon - integration of data to provide customer-centric offers across multiple screensAmazon- they recognize customers and meet customer needs wellAmazon. They have loyal customers who keep returning purchase after purchase.amazon - excellent in knowing what their consumers wantAPPLEApple-- built amazing consumer-centric organizations leveraging PR and digital media; enthusiastic brand advocates, incredible retentionApple - they marry product and service seamlessly and add value without ever appearing disruptive or selling.Apple, ability to get across "magic" of products in campaignsStarbucksstarbucks--fluidity they show in mktg across channelsStarbucks, their gold card program. Viacom, their focus on data (sell and buy) to drive their businessStarbucks. Personal experience with their top notch CRM/loyalty efforts.Southwest airlines -- regular touches, value customer tools, good reward program for loyalty
- These companies to everything the previous brands do, but what makes them different? They understand the value of each customer (CLV) to make investment decisions. customer lifetime value (CLV) is a prediction of the net profit attributed to the entire future relationship with a customer. It is used to determine the level of investment that is valid over the life of a relationship with a customer.
- Just end on a funny note…..