It's so noisy out there. Your customers are being inundated with more offers and choices than ever before. How can you reach them?
Marketing today is about delivering the most relevant offer that will ensure the maximum margin for your business over the long term – it's a continuous conversation with the customer.
Getting that conversation right creates loyal customers. In other words, it's about serving the right cookie, to the right person, at the right time. There's a better way to marketing – Learn more at http://www.pega.com/BetterWay
How to Get Started in Social Media for Art League City
5 Ways to Maximize Customer Value eBook
1. A BETTER WAY
5 WAYS TO
MAXIMIZE
CUSTOMER
VALUE
OFFER
LEARN
CUSTOMER
MEASURE
OPTIMIZE
TEST
1
2. GIVE THEM THE RIGHT COOKIE
It’s so noisy out there. Your customers are being
inundated with more offers and choices than ever
before. How can you reach them? Pegasystems’ Ed
Burek explains.
Marketing today is about delivering the most relevant offer
that will ensure the maximum margin for your business
over the long term – it’s a continuous conversation with
the customer. Getting that conversation right creates loyal
customers. In other words, it’s about serving the right
cookie, to the right person, at the right time. In the following
pages, I’ll outline five ways to do just that.
Ed Burek is the Director of Product
Marketing at Pegasystems
It’s about
serving the right
cookie, to the right
person, at the
right time.
1
3. COOKIE-CUTTER
MARKETING
DOESN’T CUT IT
Multitudes of companies still
rely on an outdated cookiecutter methodology, stamping
out identical offers with no
thought to the individual needs of
consumers.
As a result, they bombard their
customers with irrelevant offers,
executing campaigns that cannot
cut across channel silos, that fail to
join the telltale dots between data
points, and that – once customers
actually accept an offer – cannot
efficiently fulfill the order. This is a
costly model as companies are losing
out on valuable opportunities to grow
wallet share or, at a minimum, prevent
profitable customers from leaving in
favor of competitors.
There is technology. Let’s use it
Technology has advanced; there’s no reason to stick
with older, less effective systems. Advancements in
technology mean it’s possible to update the costly
marketing model, focusing on each customer’s needs.
Let’s look at how you can leverage technology to drive
higher customer lifetime value.
Lesson: The cookie-cutter model
worked for Henry Ford but
times have changed. Cookies
made with care, using the best
technology and with individual
customers in mind, tend to
attract the most
loyal customers.
2
4. 1.BECOME
TRULY
CUSTOMER CENTRIC
The typical marketing
campaign approach is to pick
a customer segment, pick
a product you think these
customers might like, and
then cross your fingers that
a tiny percentage of these
customers might respond.
There’s a better way.
Lesson: Put the
cookie catapault
away; no more
firing cookies from
Often, this type of marketing is driven by technology
limitations that simply don’t allow for a more
targeted, nuanced approach. Fortunately, the latest
marketing technology allows you to turn this model
on its head, focusing on your customer rather than
the product.
This technology allows you to compare critical
customer attributes and interests with your business
goals and constraints to execute programs that
deliver the perfect action, at the right time, for the
right customer. Instead of indiscriminately forcing
a bunch of cookies on them, this approach is like
serving up their favorite cookie, every time.
This ensures you not only deliver an action that will
engage your customer, but one that will ultimately
maximize the impact on your bottom line.
a distance. It’s now
possible to truly
understand what
Customer
Needs
your customers
want.
3
Business
Objectives
5. 2.PUT YOUR BIG
DATA TO
WORK
Social channels, mobile
devices and increased digital
engagement are producing
a vast sea of customer data.
How do you take advantage
of this data to better
understand your customers
and maximize value?
Understand the data: First, you need predictive
analytics to reveal insights within the data. But
insights that cannot be applied within actual
customer interactions are not all that useful. You
must connect your insights to the ultimate action
you want to deliver. Activate your data to optimize
customer interactions.
Generate Next-Best-Actions: The second step is
to feed insights into a customer decision hub that
can then act on them. Capture the best customer
strategy and dynamically arbitrate across your
understanding of your customer and your business
goals to deliver the Next-Best-Action in real time.
Lesson:
‘Chocolate cookies are
popular.’ Not that
useful. ‘John buys chocolate
cookies 83% of the time.’
Useful. ‘Emma has never
bought a chocolate
cookie.’ Now
that’s useful.
CUSTOMER
INSIGHTS
4
DECISION HUB
NEXT
BEST
ACTION
6. 3.BE OMNICHANNEL
Customers expect you to
be wherever they are,
whenever they want to
interact with you – on
their mobile devices, in
the branch, at a kiosk, on
the phone, in their social
channels, on the Web, and
beyond. Not only that, they
expect an experience that is
perfect for that channel and
recognizes they have been in
another channel.
Lesson: Interactions
must be seamless across
channels. If you send a
location-triggered mobile
offer and the customer
later phones the call
center, it’s crucial that you
can pick up from where
the prior interaction left
off.
Because customers shift between channels and use
more than one channel at a time, you must be sure
actions and offers can move between channels
and use the context of the channel to maximize
relevancy.
Equally important is to make sure that offers across
channels do not collide or conflict. Knowing her
dislike of chocolate, you wouldn’t offer Emma a
chocolate cookie, would you? No, you wouldn’t.
With a unified solution, you can develop a single
strategy which will automatically adjust to optimize
the actions for the channel. This streamlines the
process of supporting multiple channels, as you
can design once and deploy everywhere, rather
than go through the time-consuming and costly
process of creating and maintaining a separate user
experience for each channel.
5
7. 4.CONTINUOUSLY
OPTIMIZE
Change can end up costing
a lot of time and money
as it gets harder to keep
pace with fluctuations
in competition, customer
preferences, products,
regulations, prices,
technology and other
business factors. So, what’s
the secret to success?
Lesson: Implement
Adaptive analytics can turn static predictive models
into dynamic models which ‘self-learn’ from each
customer interaction, automatically adjusting offers
and actions to account for changing conditions.
Business-friendly tools that measure effectiveness
in real-time allow the marketing team to adjust the
levers to optimize each campaign without having
to rely on time-consuming IT customizations – all
of which can maximize marketing dollars, increase
conversion rates and ultimately drive higher
lifetime value.
adaptive analytics
to measure, test and
optimize your offer.
Keep delivering the
cookies your customers
will enjoy. They will love
the cookies (and you).
6
8. 5.DELIVER ON
YOUR PROMISE
OFFER
The final piece of the puzzle?
To maximize life-time value
you need to deliver on
your promise. Whether that
means quickly on-boarding a
customer for a chosen service
or immediately fulfilling the
product associated with an
accepted offer, the transition
from offer to fulfillment must
be seamless and immediate.
Lesson: You promised
an amazing cookie. Now
it’s time to deliver, in
the best possible way.
ACCEPTANCE
FULFILLMENT
You can eliminate the all-too-common disconnect
between offers and fulfillment with a unified
marketing solution that directly controls fulfillment
or easily integrates with existing back-office systems
used for fulfillment. When customers experience
a process that is transparent from the moment
they say, ‘I’ll take it,’ through to completing the
application or order and receiving the goods or
services, you are delivering on your promise,
creating confidence and good will that can lead to
the highest realization of lifetime value.
7
9. DRIVING HIGHER
LIFETIME VALUE:
HOW WE
CAN HELP
We work with companies
across the world, helping
them to offer true value to
their customers. Here’s how
three of them are using
our systems to make a
difference.
The brains behind business excellence
At PNC, Pega provides the Financial Services
Group’s centralized, real-time hub for customer
treatment decisioning. Pega analyzes customer
data and the context of each inbound interaction
to recommend the Next-Best-Action based on this
data. The solution has delivered positive revenue
lift from day one and has driven exceptional levels
of customer satisfaction. Temkin Ratings rates PNC
as number one in customer experience among
northeastern banks in the US.
£24 million annual incremental growth
Lesson: Building
business excellence
is not just about
execution. it’s about
real-time, responsive
systems. Pega is the
difference.
Everything Everywhere, the UK’s largest telco, uses
Pega to create a unique business case for every
retention interaction. This solution has resulted in
4% additional retention of their best customers each
month, and driven an incremental £24 million in
annual operating margin.
Creating cleverness
Head of Marketing Operations at Royal Bank of
Scotland, attests to the agility and cut-through Pega
has been able to create. “What this system allows
us to do is to be much cleverer in our campaigns.
We can have event-triggered campaigns that may
number from 1000 down to only a handful. It is
not unusual to get response rates in excess of
25 percent.”
8