Customer centric data analytics

Workshop
Marcos Arias
Managing Partner at CX MD
March 27, 2019
 Who is walking the talk
Transformation is in regard to customer experience (CX), Digital Channels, and Data

•  Who is leading
transformation?

•  Who is saying it?

•  If you don’t walk the talk,

what happens?

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Agenda
—  Turning your organization from technology focused to
customer centric one is a journey
—  Learning Objectives:
◦  Customer centricity defined
◦  Customer centric data analytics drive insights
◦  Holistic view of the customer and better decisions
◦  Why does this matter?
◦  Online and offline data combination value
◦  Interactive part: What blocks customer centric data analytics?
◦  There is always an ROI

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Great focus on analytics and customer centricity

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Progress Toward Data Driven Decisions
Just 1/3 of executives are succeeding in having a data-driven culture

In 2018, executive
estimations of their success
in achieving a data-driven
culture went down to 32.4%

On a positive note, 98.6% of

firms aspire for a data-driven
culture (up from 85.5% in
2017)

Source: NVP Big Data Executive Survey 2017 & 2018

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Customer Centricity Defined
Putting the customer first and at the core of their business

Customer centric
companies are 60% more
profitable (Deloitte
Research)

Source; How to Create a Customer Centric Strategy For Your Business, Steven MacDonald
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 Customer Centric Data Analytics
Data Analytics centered on the customer drives insight into analytics-informed actions

Interaction
Data

Sentiment
Holistic
Data
Insights

Experience
Data

Opportunities

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Source; UX360: Air Travel 7
Power in Customer Centric Analytics
Data Analytics producing multiple customer centric insights drive better decisions

Sentiment influencers Trends are

outside industry accelerating
Competitive website
is 250 ms faster => (e.g. Amazon)
loss of traffic

10 sec wait = 50%

abandonment (2013)

Source: Craig Borowski, Harvard Business Review

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Why does customer centric data analytics matter?

•  Data gives you the inside word on your customers

Ø  Helps to know a customer and what matters most
Ø  Delivers to the customer’s expectations
Ø  Predicts what a customer will want in the future
•  Data helps you avoid expensive breakups with your
customers
Ø  5% increase in retention, increases profits by +25%*
Ø  Acquisition cost can be 5 to 25 times more
expensive than retaining a customer
Ø  Data can predict customer leaving
•  Data helps you design the ultimate customer centric
experience
Ø  Makes a company easy to do business with and
memorable
Ø  Creates advocates
Ø  Attracts and retains more customers

*Source; Frederick Reichheld of Bain & Company

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 Combining Online with Offline Data
Full view of customer provides insights to drive loyalty and lifetime value

CRM
Offline Online
Ø  Customer’s purchase history Ø  Online Purchases
Ø  Product preferences Customer Ø  Product preferences
Ø  Demographic info 360 Ø  Online buying behavior
Ø  Loyalty status Ø  Mobile location
Ø  Lifetime value Ø  Online spend
Ø  Birthday and anniversaries Ø  Social Media
Ø  Call center inquiries
*Source; Frederick Reichheld of Bain & Company CX MD, LLC Proprietary 10
AllState Experience with Offline & Online

“By coupling our customer data with Google’s intent

signals, we’re able to predict and deliver on
customers’ needs more efficiently than individual
agents ever could. “

“The results so far have been very promising. Many

customers who were “at-risk” are now stable. “

Source: “Not just for newbies: Use digital to nurture your existing high-value
customer”, Pamela Moy, Marketing VP at Allstate, June 2017

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 Interactive Dialogue on Issues
What are the big issues to moving forward with data customer centric strategies?

1.  Translating Complex Datasets to the Customer Journey

2.  Data Overload

3.  Segmentation

4.  Privacy Concerns

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From Data to Return on Investment (ROI)
75% of CX Initiatives fail on execution; Not tied to operational changes*

Data Analytics

Customer-
Measure ROI
centric Insights

Mapped to
CX Initiatives
KPIs
CX
*Source: Paul Hagen, a former Forrester CX analyst now head of Customer Experience & MD, LLC Proprietary
Innovation Strategy at West Monroe Partners. 13
Customer Centric Initiative ROI
A recent Confirmit study found ROI a significant weak spot

•  20% of companies scored 9-10 for seeing ROI

•  14% of companies scored 0-2
•  Value of customer centric, data driven program is
suspect in eyes of C-suite
•  Executive interest is weakened
•  Future investment is at risk

Source: Confirmit study CX MD, LLC Proprietary 14

 Final Thoughts…Culture
Customer-Centric Data Analytics will fail without a culture that believes, lives, and re-enforces it

Customer

Culture
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MARCOS ARIAS
CX MD
MANAGING PARTNER
CUSTOMER EXPERIENCE EXECUTIVE ! TRANSFORMATION LEADER ! MARKETING INNOVATOR
CX ACCELERATED
Atlanta, GA
marcosarias@att.net
https://www.linkedin.com/in/marcosarias/

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Sources
—  “How to Create a Customer Centric Strategy For Your Business”, Steven MacDonald, SuperOffice, Mar 4, 2019

https://www.superoffice.com/blog/how-to-create-a-customer-centric-strategy/

—  “What a Great Digital Customer Experience Actually Looks Like”, Harvard Business Review, Craig Borowski, Nov 9, 2015

https://hbr.org/2015/11/what-a-great-digital-customer-experience-actually-looks-like

—  “The digital transformation of customer services: Our point of view”, Deloitte, 2013

https://www2.deloitte.com/content/dam/Deloitte/nl/Documents/consumer-business/deloitte-nl-the-digital-transformation-of-customer-services.pdf

—  “Not just for newbies: Use digital to nurture your existing high-value customers”, Pamela Moy, Jun 2017

https://www.thinkwithgoogle.com/marketing-resources/data-measurement/digital-strategy-customer-lifetime-value/

—  “7 Ways to Save Your Customers Time”, Customer Think, Tricia Morris, August 29, 2012, http://customerthink.com/7_ways_to_save_your_customers_time/

—  “Customer Centricity: Embedding it into your organization’s DNA, Deloitte, 2014 n

https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Strategy/2014_customer_centricity_deloitte_ireland.pdf

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Sources
—  “4 Big Data Marketing Strategy Issues Holding You Back (And How To Fix Them)”, Smart Data Collective, Manish Dudharejia,

July 14, 2018 https://www.smartdatacollective.com/big-data-marketing-strategy-issues-holding-back/

—  “An Inconvenient Truth: 93% of Customer Experience Initiatives are Failing…”, CustomerThink, Bob Thompson, Feb 7, 2018

http://customerthink.com/an-inconvenient-truth-93-of-customer-experience-initiatives-are-failing/

—  “The Failures of Customer Centricity”, James M. Damian, , The Robin Report, June 3, 2018,

https://www.therobinreport.com/the-failures-of-customer-centricity/

—  “Why a data-driven, customer-centric mentality is the future of everything!” Carmen Vicelich, CIO from IDG, Feb 19, 2018

https://www.cio.co.nz/article/633546/why-data-driven-customer-centric-mentality-future-everything/

—  “Embrace Your Data: How To Implement A Customer-Centric Strategy”, Bill Waid, Forbes, Nov 19, 2018

https://www.forbes.com/sites/forbestechcouncil/2018/11/19/embrace-your-data-how-to-implement-a-customer-centric-

strategy/#4abf798e2982

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