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Applied Customer Insight
How do I improve return on
           How do I create an         investments by targeting the            How can I get one
         organisation where all       right customer with the right          view of my customer
                                                                              i    f
          employees know our          offering, in the right channel,          when information
            customers and all        and how can I incorporate social        about customers are
        decisions and actions are    media and mobile in the channel        locked in internal silos
        reflecting what's best for                  mix?                     and on the internet?
             our customers?
                    t       ?




      How to I know what                                                 Data is exploding and we are
  customers are about to leave                                            loosing control. What data
  me and what can I do to make                                          should I capture and how do I
          them stay?
                   y                                                    turn it into actionable insight?



                                                                           How can I make my
       How do I learn from                                               customers use internet
        what's going on in                                                  and self service to
        the social forums                                                 increase service level
        and how do I turn                                                 and reduce customer
       that into a valuable                                                     care cost?
              asset??


                                                                            How can I get a better
                                                                          understanding about what
     How engage with my                                                   my customers are doing on
      customers in social                                                 Internet and social forums
      forums when I cant                                                    and how this effect my
           control the                                                            business?
         conversations?


© Logica 2011. All rights reserved                                                                     No. 2
Applied Customer Insight
   l d                h


                 1      Applied Customer Insight


                 2      From CRM to Social CRM


                 3      Key Business Drivers


                 4      How could my company benefit from Social CRM?


                 5      So what do I need to do?




© Logica 2012. All rights reserved                                      No. 3
Applied Customer Insight - proposition areas
   l d                h

Customer                                                                               Customer
                                                                                       C t
Management                                                                             Data from:
                                                                                       Analytics
                                                                                        Direct Marketing
                                                                                        Contact Centre
• Intelligent marketing                                                                •Websites customer view
                                                                                           One
                                                                                        In-Store
                                                                                        Email
• Intelligent Salesforce                                                                   Predictive analysis
                                                                                       •Mobile
  management                                                                            Social Media
                                                                                        Transactional Systems
                                                                                           Combine traditional
                                                                                       •Collaborative Platforms
•   Intelligent Customer                                                                   customer data big data
                                                                                        Business Applications

    Service                                  Act                 Capture                  and social i i ht
                                                                                            d    i l insight

• Multi Channel                                      Marketing
                                                                                       • Real time customer data
                                                      and IT
  management

• Customer Segmentation

• Customer loyalty
  management                                        Interpret
• Digital Self Service

• Customer Experience                                                      Insight:
              Interpreted by:                                              Existing customer insight
                   Supply Chain &                                          Web Analytics
                   partners                                                Real time mobile info
                   Sales & Marketing                                       Real time social network
                   R&D                                                     monitoring
                   Manufacturing                                           Real time Sentiment Analysis
                   Service Delivery                                        Market info
                   Operations          Customer Intelligent Organisation   Segmentation
                                                                           Predictive Analytics



© Logica 2012. All rights reserved                                                                             No. 4
Applied Customer Insight - k
   l d                h    key Business Drivers

      1                                             4
            Acquiring new customers                       Increasing operational
          • Increasing the number of clients in           efficiency
            growing market                              • Digital self service strategies
          • Commercial campaigns programs               • Back office process optimization and
            (internet, TV advertising, mailing,           automation
            phone…)                                     • Intelligent service level
          • Attractive and competitive offerings          segmentation


      2                                             5
              Develop cross & up selling                  Monetize on social media
          • One view of the customer                    • Accept it as a game changer
          • Roll out the sales know-how in the
                               know how                 • Go from manage to engage with
            new networks                                  your customers
          • Build a customer classification model       • Gain insight from big data and
          • Optimize channel mix                          integrate social in channel strategies


      3                                             6
              Customer Retention                          Integrate mobility in Strategy
          •   Customer knowledge is essential
                                                        • Customers are fast movers and they
          •   Predictive analysis
                                                          expect you t b mobile
                                                                t      to be   bil
          •   Pro active customer care
                                                        • Mobility drives customer self service
          •   Proposing adequate offers and
                                                        • Opportunities to reshape and
              services
                                                          develop you offerings



© Logica 2012. All rights reserved                                                                 No. 5
Applied Customer Insight
   l d                h


                 1      Applied Customer Insight


                 2      From CRM to Social CRM


                 3      Key Business Drivers


                 4      How could my company benefit from Social CRM?


                 5      So what do I need to do?




© Logica 2012. All rights reserved                                      No. 6
From CRM to Social CRM
                 l

“The traditional customer i th one we all were as recently as a
“Th t diti      l    t      is the           ll          tl
decade ago. We bought products and services and based our
decisions on utility and price. We communicated with the companies
we were dealing with by letter, phone call, and occasional
e-mail, if they had the facility to do that.

But that customer changed because of a social change in the early
part of the millennium. The customer seized control of the business
ecosystem and it was never the same.“

Paul Greenberg
Author of CRM at the Speed of Light




© Logica 2012. All rights reserved                                    No. 7
Consumer journey f travel
                   for    l

            HolidayRentals        Teletext Holidays   ebookers       Hotels.com         TUI            TripAdvisor    TUI
Visited
 Sites




            TravelRepublic        TUI                 First Choice   TripAdvisors       First Choice   TUI            Thomas Cook
            First Choice          HolidayWatchdog                    TUI                AirTours       Expedia        AirTours
            Thomas Cook           AirTours                           Thomas Cook                       First Choice
                                                                                                       Fi t Ch i      First Choice
                                                                                                                      Fi t Ch i
V




            TUI                   First Choice

                                  Olympic Holidays
  ay




                  1                     5                8             13                 21             29                      33
 Da




            Holiday in the sun Cheap Flights          Cyprus         Palm Beach Hotel   Thomson
      es




                                                      Hotels                  yp
                                                                     Larnaca Cyprus           y
                                                                                        Holidays
 Querie




            Spain Holidays
            S i H lid             Cyprus Holidays

            Cyprus holidays                                          Beau Rivage
                                                                     Hotel Cyprus
            Europe Holidays
            Holidays in the Sun




                   12                                                22                                               29
               queries on                                        different sites
                                                                                                                 Days from
                Google                                               visited                                      start to
                                                                                                                 purchase
                                                                                                                     h
  © Logica 2011. All rights reserved             Source: comScore Research Paper October 2010                                         No. 8
Applied Customer Insight
   l d                h


                 1      Applied Customer Insight


                 2      From CRM to Social CRM


                 3      Key Business Drivers


                 4      How could my company benefit from Social CRM?


                 5      So what do I need to do?




© Logica 2012. All rights reserved                                      No. 9
New b
    business d
             drivers

   Threats                                                                Opportunities

   We loose control over the buying process       Attract new customers, upsell and cross
   and di l
     d dialogue about your b
                 b          brand, products
                                d     d            sell, d
                                                     ll drive customers to point of sales using
                                                                                  f l
   etc.                                                                        social channels


   Increased transparency regarding price
                                      price,       Promote active advocates that market you
   service levels etc. leads to commoditisation      products, support your customers and
   makes it more difficult to differentiate                     increases customer loyalty


                                                     Create social forums where customers are
                                                             supporting each other to increase
                                                       operational efficiency and customer
                                                                                       loyalty


                                                    Learn more about customers needs and
                                                       preferences listening to social channels


                                                  Co create products and services with your
                                                           customer using social collaboration



© Logica 2012. All rights reserved                                                            No. 10
Applied Customer Insight
   l d                h


                 1      Applied Customer Insight


                 2      From CRM to Social CRM


                 3      Key Business Drivers


                 4      How could my company benefit from Social CRM?


                 5      So what do I need to do?




© Logica 2012. All rights reserved                                      No. 11
Case: Sales and marketing:
Attract members to corporately owned communities
            b               l      d




© Logica 2012. All rights reserved             No. 12
Learn to know the customer combining structured
and unstructured information
  d            d f




© Logica 2012. All rights reserved                No. 13
Companies have some misperceptions regarding why
consumers interact with them via social sites.
                      h h             l




© Logica 2012. All rights reserved            No. 14
Case: Sales and promotion activities
        l     d




© Logica 2012. All rights reserved     No. 15
Case: Drive sales to retail channel
              l           l h     l




© Logica 2012. All rights reserved    No. 16
Case: Customer service – advocacy strategy
                          d




© Logica 2012. All rights reserved           No. 17
Mutual value creation
     l   l




© Logica 2012. All rights reserved   No. 18
Digital self service through social collaboration
      l lf            h    h      l ll b




© Logica 2012. All rights reserved                  No. 19
Case: Customer intelligent organisation
                   ll




© Logica 2012. All rights reserved        No. 20
Best b
     buy

             “Our
             “O model i lik a hi
                      d l is like hive. E h group manages its own
                                         Each                 it
        initiatives, but we work under a common strategy. We are well
          integrated,
          integrated well networked, and everyone is responsible for
                            networked
                    social media,” said John Bernier, Best Buy.

•   US$5 million in call center deflection
•   More than 100,000 social conversations annually
•   Nearly 3,000 registered employees on Twelpforce
•   Improved employee morale, better knowledge sharing and
    connections across the enterprise corporate passion for social
                            enterprise,
    media innovation and significant brand buzz




© Logica 2012. All rights reserved                                      No. 21
Applied Customer Insight
   l d                h


                 1      Applied Customer Insight


                 2      From CRM to Social CRM


                 3      Key Business Drivers


                 4      How could my company benefit from Social CRM?


                 5      So what do I need to do?




© Logica 2012. All rights reserved                                      No. 22
So what do I need to do?
    h d         d    d

• From CRM to customer engagement
   lifecycle management
   • Co created customer processes, value
     exchange and mutual support

• Integrate social media and mobile
   devices in channel strategy

• Get more in-depth insight by
   combining structured and
   unstructured information and internal
      t   t   di f      ti    di t     l
   and external sources

• Create links to R&D, supply chain and
   rest of business, become a customer
   intelligent organisation

• Tear down the walls between
   marketing, sales & support



© Logica 2012. All rights reserved          No. 23
Thank you!
Applied Customer Insight

Fredrik Ring, International Practice Leader
Applied Business Insight, Logica Business Consulting
fredrik.ring@logica.com

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Applied Customer Insight | Logica Nederland

  • 2. How do I improve return on How do I create an investments by targeting the How can I get one organisation where all right customer with the right view of my customer i f employees know our offering, in the right channel, when information customers and all and how can I incorporate social about customers are decisions and actions are media and mobile in the channel locked in internal silos reflecting what's best for mix? and on the internet? our customers? t ? How to I know what Data is exploding and we are customers are about to leave loosing control. What data me and what can I do to make should I capture and how do I them stay? y turn it into actionable insight? How can I make my How do I learn from customers use internet what's going on in and self service to the social forums increase service level and how do I turn and reduce customer that into a valuable care cost? asset?? How can I get a better understanding about what How engage with my my customers are doing on customers in social Internet and social forums forums when I cant and how this effect my control the business? conversations? © Logica 2011. All rights reserved No. 2
  • 3. Applied Customer Insight l d h 1 Applied Customer Insight 2 From CRM to Social CRM 3 Key Business Drivers 4 How could my company benefit from Social CRM? 5 So what do I need to do? © Logica 2012. All rights reserved No. 3
  • 4. Applied Customer Insight - proposition areas l d h Customer Customer C t Management Data from: Analytics Direct Marketing Contact Centre • Intelligent marketing •Websites customer view One In-Store Email • Intelligent Salesforce Predictive analysis •Mobile management Social Media Transactional Systems Combine traditional •Collaborative Platforms • Intelligent Customer customer data big data Business Applications Service Act Capture and social i i ht d i l insight • Multi Channel Marketing • Real time customer data and IT management • Customer Segmentation • Customer loyalty management Interpret • Digital Self Service • Customer Experience Insight: Interpreted by: Existing customer insight Supply Chain & Web Analytics partners Real time mobile info Sales & Marketing Real time social network R&D monitoring Manufacturing Real time Sentiment Analysis Service Delivery Market info Operations Customer Intelligent Organisation Segmentation Predictive Analytics © Logica 2012. All rights reserved No. 4
  • 5. Applied Customer Insight - k l d h key Business Drivers 1 4 Acquiring new customers Increasing operational • Increasing the number of clients in efficiency growing market • Digital self service strategies • Commercial campaigns programs • Back office process optimization and (internet, TV advertising, mailing, automation phone…) • Intelligent service level • Attractive and competitive offerings segmentation 2 5 Develop cross & up selling Monetize on social media • One view of the customer • Accept it as a game changer • Roll out the sales know-how in the know how • Go from manage to engage with new networks your customers • Build a customer classification model • Gain insight from big data and • Optimize channel mix integrate social in channel strategies 3 6 Customer Retention Integrate mobility in Strategy • Customer knowledge is essential • Customers are fast movers and they • Predictive analysis expect you t b mobile t to be bil • Pro active customer care • Mobility drives customer self service • Proposing adequate offers and • Opportunities to reshape and services develop you offerings © Logica 2012. All rights reserved No. 5
  • 6. Applied Customer Insight l d h 1 Applied Customer Insight 2 From CRM to Social CRM 3 Key Business Drivers 4 How could my company benefit from Social CRM? 5 So what do I need to do? © Logica 2012. All rights reserved No. 6
  • 7. From CRM to Social CRM l “The traditional customer i th one we all were as recently as a “Th t diti l t is the ll tl decade ago. We bought products and services and based our decisions on utility and price. We communicated with the companies we were dealing with by letter, phone call, and occasional e-mail, if they had the facility to do that. But that customer changed because of a social change in the early part of the millennium. The customer seized control of the business ecosystem and it was never the same.“ Paul Greenberg Author of CRM at the Speed of Light © Logica 2012. All rights reserved No. 7
  • 8. Consumer journey f travel for l HolidayRentals Teletext Holidays ebookers Hotels.com TUI TripAdvisor TUI Visited Sites TravelRepublic TUI First Choice TripAdvisors First Choice TUI Thomas Cook First Choice HolidayWatchdog TUI AirTours Expedia AirTours Thomas Cook AirTours Thomas Cook First Choice Fi t Ch i First Choice Fi t Ch i V TUI First Choice Olympic Holidays ay 1 5 8 13 21 29 33 Da Holiday in the sun Cheap Flights Cyprus Palm Beach Hotel Thomson es Hotels yp Larnaca Cyprus y Holidays Querie Spain Holidays S i H lid Cyprus Holidays Cyprus holidays Beau Rivage Hotel Cyprus Europe Holidays Holidays in the Sun 12 22 29 queries on different sites Days from Google visited start to purchase h © Logica 2011. All rights reserved Source: comScore Research Paper October 2010 No. 8
  • 9. Applied Customer Insight l d h 1 Applied Customer Insight 2 From CRM to Social CRM 3 Key Business Drivers 4 How could my company benefit from Social CRM? 5 So what do I need to do? © Logica 2012. All rights reserved No. 9
  • 10. New b business d drivers Threats Opportunities We loose control over the buying process Attract new customers, upsell and cross and di l d dialogue about your b b brand, products d d sell, d ll drive customers to point of sales using f l etc. social channels Increased transparency regarding price price, Promote active advocates that market you service levels etc. leads to commoditisation products, support your customers and makes it more difficult to differentiate increases customer loyalty Create social forums where customers are supporting each other to increase operational efficiency and customer loyalty Learn more about customers needs and preferences listening to social channels Co create products and services with your customer using social collaboration © Logica 2012. All rights reserved No. 10
  • 11. Applied Customer Insight l d h 1 Applied Customer Insight 2 From CRM to Social CRM 3 Key Business Drivers 4 How could my company benefit from Social CRM? 5 So what do I need to do? © Logica 2012. All rights reserved No. 11
  • 12. Case: Sales and marketing: Attract members to corporately owned communities b l d © Logica 2012. All rights reserved No. 12
  • 13. Learn to know the customer combining structured and unstructured information d d f © Logica 2012. All rights reserved No. 13
  • 14. Companies have some misperceptions regarding why consumers interact with them via social sites. h h l © Logica 2012. All rights reserved No. 14
  • 15. Case: Sales and promotion activities l d © Logica 2012. All rights reserved No. 15
  • 16. Case: Drive sales to retail channel l l h l © Logica 2012. All rights reserved No. 16
  • 17. Case: Customer service – advocacy strategy d © Logica 2012. All rights reserved No. 17
  • 18. Mutual value creation l l © Logica 2012. All rights reserved No. 18
  • 19. Digital self service through social collaboration l lf h h l ll b © Logica 2012. All rights reserved No. 19
  • 20. Case: Customer intelligent organisation ll © Logica 2012. All rights reserved No. 20
  • 21. Best b buy “Our “O model i lik a hi d l is like hive. E h group manages its own Each it initiatives, but we work under a common strategy. We are well integrated, integrated well networked, and everyone is responsible for networked social media,” said John Bernier, Best Buy. • US$5 million in call center deflection • More than 100,000 social conversations annually • Nearly 3,000 registered employees on Twelpforce • Improved employee morale, better knowledge sharing and connections across the enterprise corporate passion for social enterprise, media innovation and significant brand buzz © Logica 2012. All rights reserved No. 21
  • 22. Applied Customer Insight l d h 1 Applied Customer Insight 2 From CRM to Social CRM 3 Key Business Drivers 4 How could my company benefit from Social CRM? 5 So what do I need to do? © Logica 2012. All rights reserved No. 22
  • 23. So what do I need to do? h d d d • From CRM to customer engagement lifecycle management • Co created customer processes, value exchange and mutual support • Integrate social media and mobile devices in channel strategy • Get more in-depth insight by combining structured and unstructured information and internal t t di f ti di t l and external sources • Create links to R&D, supply chain and rest of business, become a customer intelligent organisation • Tear down the walls between marketing, sales & support © Logica 2012. All rights reserved No. 23
  • 24. Thank you! Applied Customer Insight Fredrik Ring, International Practice Leader Applied Business Insight, Logica Business Consulting fredrik.ring@logica.com