Webinar with Forrester on Customer Intelligence May 29, 2013
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Webinar with Forrester senior analyst Fatemeh Khatibloo on The Future of Customer Intelligence. She speaks about customer engagement, customer lifetime value, customer loyalty, customer analytics and customer customer intelligence. She gives examples of brands like Disney, Tesco, Intuit, Nordstrom and Dell.
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Webinar with Forrester on Customer Intelligence May 29, 2013
- 2. Navigating the Future of Customer Intelligence Fatemeh Khatibloo Senior Analyst, Forrester Research May 29, 2013 Twitter: @fatemehx2
- 3. © 2013 Forrester Research, Inc. Reproduction Prohibited 3 Color story TK
- 4. © 2013 Forrester Research, Inc. Reproduction Prohibited 4 Color story TK
- 5. © 2013 Forrester Research, Inc. Reproduction Prohibited Agenda Customer Intelligence: Business Friend or Foe? What’s Driving the Future of Customer Intelligence? How Can You Successfully Navigate the Future of Customer Intelligence? 5
- 6. © 2013 Forrester Research, Inc. Reproduction Prohibited Agenda Customer Intelligence: Business Friend or Foe? What’s Driving the Future of Customer Intelligence? How Can You Successfully Navigate the Future of Customer Intelligence? 6
- 7. What is Customer Intelligence? The management and analysis of customer data from all sources, used to drive marketing performance and business strategy.
- 8. © 2013 Forrester Research, Inc. Reproduction Prohibited
- 9. © 2013 Forrester Research, Inc. Reproduction Prohibited
- 10. © 2013 Forrester Research, Inc. Reproduction Prohibited
- 11. Legacy CI is a foe Using customer intelligence poorly is sometimes worse than not using it at all It affects customer engagement and loyalty It wastes marketing dollars and impacts profitability It can materially impact brand perceptions But! Done well, customer intelligence can be your organization’s best friend
- 13. Citi logo
- 14. What makes these organizations different? They’ve evolved customer intelligence from a marketing tool to a business planning tool. They’ve moved beyond measuring marketing effectiveness to measuring customer value Their approach to marketing and customer engagement hinges on being contextually relevant
- 15. © 2013 Forrester Research, Inc. Reproduction Prohibited Agenda Customer Intelligence: Business Friend or Foe? What’s Driving the Future of Customer Intelligence? How Can You Successfully Navigate the Future of Customer Intelligence? 15
- 17. * Source: North American Technographics® Benchmark Survey, 2010 (US, Canada) **Source: North American Technographics® Online Benchmark Recontact Survey, Q3 2011 (US, Canada)
- 18. What IS The Mobile Mind Shift? The expectation that any desired information or service is available, on any appropriate device, in context, at your moment of need.
- 19. © 2013 Forrester Research, Inc. Reproduction Prohibited 19 40 + Access Computing the Mobile Mind Shift Index Base: 30,549 US online adults (18+) Source: North American Technographics Online Benchmark Survey (Part 2), Q3 2012 (US, Canada) US Adults 18+ 20 Devices 40 + Locations MMSI 100= 100 50 0 MMSI 9.6 20 13.2 40 5.1 40 27.9 100 27.9 US Avg.
- 20. Intelligence—not data—will be the difference between success and failure.
- 21. © 2013 Forrester Research, Inc. Reproduction Prohibited Mobile device data examples Consumers that track their activity move, on average, 26% more steps per day
- 23. Intelligence—not data—will be the difference between success and failure. ≠
- 24. Intelligence—not data—will be the difference between success and failure. Human beings today generate 200 exabytes of information per year - David Siegel Entrepreneur, Futurist, Author “Pull: The Power of the Semantic Web to Transform Your Business”
- 25. Data Scientists are Center-Stage
- 26. Function/task C ustom er intelligence B rand m arketingInteractive m arketing C R M Product M arketingSales and service Security and riskD ata architecture Infrastructure and EA Legal C ustom er experienceC ustom er service Assess organizational consumer data requirements R + A I I I S I C I S C C C Create consumer data governance policies R + A I I I I I R + A I I S + C I I Enforce consumer data governance policies R + A R + A S S C S Create data provider/data management vendor requirements S C S R or S R + A S Assess data provider/data management vendor compliance C I C R + A R or S R + A Stay abreast of and communicate regulatory changes S R I A Deliver thought leadership around regulatory and industry best practices R + A C S S C S S I Evaluate privacy policies and TOU for compliance w/industry best practices R I C I I S A Represent the organization in policy discussions as necessary C R or S C R + A Design processes to comply with consumer data requests S C I I C S R + A S S Track and report against consumer data request fulfillment R + A S I S I I R + S I R + S MARKETING BUSINESS TECHNOLOGY OPERATIONS Placeholder graphic – need a cleaned up one Data stewardship needs to take a front seat
- 28. © 2013 Forrester Research, Inc. Reproduction Prohibited Customers want to be recognized… and rewarded
- 29. And they’ll share more if they trust you
- 30. © 2013 Forrester Research, Inc. Reproduction Prohibited Agenda Customer Intelligence: Business Friend or Foe? What’s Driving the Future of Customer Intelligence? How Can You Successfully Navigate the Future of Customer Intelligence? 30
- 31. 1. Shift to a customer-focused orientation
- 32. 1. Shift to a customer-focused orientation
- 33. © 2013 Forrester Research, Inc. Reproduction Prohibited Build strategies, products, and experiences that put the customer at the core of the business Driven from the top of the company Ensure emotional context is on an equal footing with behavioral and business context 1. Shift to a customer-focused orientation
- 34. 2. Invest in the right technology Makes sense of massive quantities of data & makes them actionable CDI Predictive analytics Web analytics
- 35. 2. Invest in the right technology Makes sense of massive quantities of data & makes them actionable Enables the use of data to deliver meaningful, relevant message Contact optimization Preference management Triggered marketing Site optimization
- 36. 2. Invest in the right technology Makes sense of massive quantities of data & makes them actionable Enables the use of data to deliver meaningful, relevant messages Shifts marketing messaging from campaigns to continuums Real-time enablement Digital deployment Journey mapping
- 37. 3. Re-evaluate business partnerships Deepen the relationships that deliver value It’s hard to find the marketing scientists to support your analytics needs – partnerships can help. Find partners that with well balanced technology and execution capabilities Services providers can’t be blind to technology anymore… …and technology partners need to understand your business goals and challenges
- 38. 3. Re-evaluate business partnerships Deepen the relationships that deliver value It’s hard to find the marketing scientists to support your analytics needs – partnerships can help. Find partners that with well balanced technology and execution capabilities Services providers can’t be blind to technology anymore… …and technology partners need to understand your business goals and challenges
- 39. 3. Re-evaluate business partnerships Deepen the relationships that deliver value Find partners that with well balanced technology and execution capabilities New-school solutions can round out the technology you already own The old-school thinking that you need to strip out all your existing tech, and build a whole new platform is outdated
- 40. © 2013 Forrester Research, Inc. Reproduction Prohibited Summary Foster a culture of customer- obsession, from the top down Use data and insight to empower customers and the organization Make people, process and technology work in concert, not as silos Build partnerships that support enterprise goals, not channel goals
- 41. Thank you Fatemeh Khatibloo +1 415.294.8007 fkhatibloo@forrester.com Twitter: @fatemehx2
Editor's Notes
- Abstract: Every company generates data of potentially massive value; data that could be repackaged and analyzed along with IP from other sources to generate significant new discoveries, products, and revenue streams. But making your data discoverable and consumable by third parties is a challenge. This is especially so when you have to weigh the potential revenue opportunity from these actions against the security and compliance mandates we are all under. Layers of IT security, legal review, and data management practices make it nearly impossible to share valuable data in a vibrant marketplace. Or does it?Forrester thinks the time is now for a Data Economy that lets you unlock the hidden value of your corporate data. Emerging marketplaces exist today and are showing the way towards broader market adoption. In this session you will learn:* Who are the market leaders in opening up the Data Economy* What technologies, standards, and methodologies they are leveraging to make this market a reality* What steps BT leaders can take today to assess their opportunities and begin profiting from the Data Economy in 2013
- I used to tell this story… about how I was visiting my family in LA and, at one point in the weekend, as we were sitting at the table, I looked around and realized that we were all using some secondary device – an iphone, an ipad, a blackberry – and how this strange world we live in, with device proliferation an communities that we connect to at the same time – was making life REALLY hard for marketers, and how we measured marketing success. And then, one day, I realized I was making entirely the wrong point. My story was about MARKETERS, and how hard our lives had become. But really, the truth is that our CUSTOMERS lives are getting harder, too.
- This: this is your customers’ life. They’re bombarded with messages about the products and services they should be interested in, but almost NONE of it is tailored to them! They see posts on facebook – both from friends and from brands – telling them how great this bank or that retailer is. They do some research, but Google give them too many choices, creating a state of “analysis paralysis”. And then, the minute we recognize them? Well, we launch into a series of marketing communications that are rarely targeted to what their real needs and wants are! How frustrating is that?So, I realized, this isn’t about marketing. It’s about customers. It’s about how we treat them, how we nurture them, and whether we foster a culture of strategic customer engagement instead of marketing effectiveness. Because if you nail the first one, the second one will follow.
- OK, so that’s a really bad, tragic example. But let me take you to another one, a personal one this time. A few months back, I got an email from Nordstrom – from whom I buy shoes. OK, lots of shoes. I won’t get more specific, except to say that Nordstrom probably has all the information they need about me to make sure that I buy a rather spendy pair of shoes every couple of months. So, when I got this email, I was so excited – look – The Season’s Newest Shoes, IN MY SIZE! Awesome. I opened the email, of course, and thought, “well, ok, not TOTALLY my style of shoes, but not a bad try.” And then I clicked thru to the site.
- And here’s where the disappointment set it. Because, yea, Nordstrom led me to believe that I was going to end up on a landing page tailored to me… or at the very least, I mean, bare minimum here, they would send me to their shoe section, already filtered for my very average size 7 feet. Instead? They sent me to a page filtered for extended sizes –for you gentlemen who may not know what that means, it’s for very tall and very lilliputian ladies. And as you can see, I am most certainly neither of those – like I said, quite average. So, yea, I was let down. And that silly but significant disappointment sent me to Twitter…
- Where I posted this. And within a couple of hours, I’d gotten almost a dozen responses! I doubt that this is what nordstrom expected, but these are the dangers of bad CI in an era of connected and expectant consumers.In other words,
- Now, within Forrester, you’ll hear us talk about “Customer obsession” – and it’s a phrase that Rosetta uses too. But what do we mean by this? Well, think of it as the “pedal to the metal” of customer-centricity. It’s when organizations focus their strategy, energy, and budget on things that enhance their knowledge of and engagement with customers, and actually prioritize these over traditional competitive approaches.So, who does engagement, and customer obsession well?
- Intuit is a company that’s customer-obsessed to its core. When Scott Cook started the company, they literally called hundreds of people to try to understand how they managed their finances, and what irked them most about “personal bookkeeping.” Then they designed Quicken to solve for those problems. But the thing with Intuit is that it’s never stopped. It acquired Mint and created a stellar tool for consumers that was lucrative for advertisers because it always puts the customers needs first. Then, it took the tools that consumers were using most within Mint, and baked them into its Quickbooks solution. In other words, Intuit has figured out how to use CI for product innovation that makes customers HAPPY, and keeps them loyal to the brand.
- Citi does a nice job using customer intelligence to understand the relationship between online and offline experiences. For example, the highest use of post- site visit calls was due to one thing – any guesses? FORGOTTEN PASSWORDS. They implemented a friendlier password retrieval system on the site, and cut those very expensive calls by 20% -- that’s a win for both the customer AND Citi. Also, they Looked at granular data on behavior of customers who routinely visit the website to manage their accounts and discovered that there was a segment who seemed to be at higher risk of delinquincies. Created special marketing promotions such as automatic payment and enrollment in automatic alerts for specific segments. This customized content helped reduce payment delinquencies by 15% in those visitors
- In 2011, we started talking about the AAC – this is someone who goes on line 3x+ per day, from multiple locations, and on the go. Prior to that, the best we could tell you was that of US online adults who owned mobile phones, 17% of them had smartphones. In 2011, the first year we’re even able to look at all the behaviors that define the Always Addressable Customer, 38% of all US online adults fall into the category. In 2012? We had to create a whole new metholodology to measure these behaviors, because the changes were happing so fast. And so we now think of the MMSI
- Plenty of you are, at this moment, multitasking while listening to this webinar. You’re making reservations for dinner, or catching up on Facebook, or sending a note to your boss. Heck, you may even be looking up a stat or information about something I’ve mentioned so far. And since it’s likely that you’re watching this webinar on your computer’s screen or monitor, you’re probably doing that other thing… on your mobile device or tablet. And you probably didn’t even think TWICE about how amazing that is.
- Three elements of the mobile mind shift.Up to 20 points for all connected devices. The average online consumer scores 9.6.Up to 40 points for frequency of access on those devices. The average online consumer scores 13.2Up to 40 points for diversity of locations from which they access. The average consumer scores 5.1Put those together and the average online consumer has a score of 27.9 out of 100. Clearly, there is a lot of room for growth here.
- In a 2007 analysis of several studies, people who used pedometers increased the number of steps taken by an average 2,491 a day and boosted overall physical activity by about 27% from previous levels
- We don’t think about utility companies as being innovators. But Pacific Gas & Electric is turning that on its ear. Utilities are unique in that they’re one of the few industries that wants us to use LESS of its product. Smart Meters, of course, are one way to start. And PGE has taken that a step further with its innovative MyEnergy program, which helps users understand their use better. But PGE didn’t stop there. They’ve now opened their dataset to third party developers, and it even sponsored a $100K app contest last year. The winning app lets folks understand, in real ecological terms, what their energy usage COSTS, where it comes from, and how to improve it. Basically, it’s the Mint of energy use.
- Data data everywhere… and not a drop to drink
- Data data everywhere… and not a drop to drink
- And boy, as marketers, are we ever excited. We’re sucking up as much of that data as we can. We hire data scientists, buy tools like Hadoop and sophisticated BI, and invest in decision management software, all in the hopes of discovering something actionable, something that will make us better, smarter, more relevant marketers because,
- Amex uses data and analytics to test new reward typesTESCO has just launched a partnership allowing members to redeem their clubcard points across a variety of partners
- Amazon leaves an open seat at every marketing and business strategy meeting as a representation of the customer. Sure, it’s just symbolic, but it reminds them of their mandate at every turn. Many go so far as to organize entire business units around a customer segment
- Macy’s example