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CRM Power Tools For Business Results: Intelligence-Based Marketing
CRM Power Tools For Business Results: Intelligence-Based Marketing
CRM Power Tools For Business Results: Intelligence-Based Marketing
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
‘Experience’ Your Business?
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Intelligence-based ‘Schizophrenic’
marketing marketing
The company knows The company has
who you are, what delusions about who
you prefer, and you are, forgets what
communicates with you prefer, and tries to
relevant, timely
reach you with off-
messages, using the
power of analytical target communications
intelligence to detect that alienate you –
patterns, decode based on fragmented
strands of information data & inadequate
and create faculties, resulting in
meaningful offers and confusing, chaotic
value ‘multiple personalities’
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Copyright@2001 Teradata, a division of NCR, All Rights Reserved
drill bit in your inventory.
Dad a tool set last year does
Hey! Just because we bought
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Copyright@2001 Teradata, a division of NCR, All Rights Reserved
still do not get respect
I have 2 million frequent
flyers with your airline and
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Copyright@2001 Teradata, a division of NCR, All Rights Reserved
Remember …
… the bad times?
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Copyright@2001 Teradata, a division of NCR, All Rights Reserved
I need personal
attention - help me!
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Copyright@2001 Teradata, a division of NCR, All Rights Reserved
Give me
convenience!
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Make it easy!
Convenience!
Respect me!
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
The Marketer’s Task: Understand and
Communicate Successfully With a Multitude
of Individual Customers Every Day
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Marketers need the technology
‘power tools’ to gather, analyze
and interpret thousands or millions
of data strands of customer
interaction detail from countless
touch points, channels and data
sources – cracking the DNA code
of each customer and learning
over time to communicate and
build meaningful relationships
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
More Complex Than Ever Before
Today’s marketers have a lot to manage!
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
acquire reward loyalty Who are my most loyal customers
Do you know what constitutes a
good customer? and what promotions are most
effective?
Are you using customer
lifestyle/lifestage data to find Do you treat your loyal customers
differently than your others?
prospects?
When a customer touches your
Can you match customers to the business, do you have the
right products and services? capability to engage them with
Can you use the above knowledge targeted messages?
with your current prospect lists to How do you determine the level of
target your marketing efforts? personalization you give?
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
How can a marketer …
• Make sense of a tidal wave
of interaction detail?
• Serve and satisfy a million
individual customers?
• Deliver profitable returns
on so many relationships?
• Help the business meet its
goals and objectives?
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
must justify:
Every dollar spent
Every initiative
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
• 45% of companies are
considering CRM projects1
• 37% have installations
under way or complete1
• CRM budgets are not being
slashed despite slow
economy2
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Capabilities that Companies Must Have
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
• Broad range of actionable
analysis and predictive
modeling capabilities
• Holistic view of customer
interactions to understand
the whole customer
• Means to understand and
automate the event rules that
drive the business and
communicate with
individual customers
Call Center
Agent
Analytical CRM
ATM/Kiosk
Environment with Analytical CRM
Manage the Total Communications
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
What is CRM really trying to do?
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Tactical cultivation of customer relationships
based on strategic vision and objectives
– Achieved as a company analyzes and prioritizes opportunities,
then communicates with intelligence and relevance to
individual customers – in preferred channels
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
For Mission-Critical Intelligence
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Relevant Offers
Analytics and Modeling
Insight Communication Planning
Action
Personalize Communication
Customer Optimization
Communication Delivery
Timely Messages
Timely Messages
Intelligence Inter-
Action
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Analysis Modeling Personalization Optimization Interaction
• Generate personalized • Deploy outbound
• Analyze • Build and offers by customer • Prioritize and limit or manage
customer analyze • Build personalization communications pending
profiles & predictive Rules by channel inbound/event-
behavior models • Regulate frequency driven
• Target • Score and quantity of communications
customers customers contacts by • Manage workflow
• Evaluate Communication channel of interactions
response • Plan continuous • Optimize customer • Personalization
• Event Analysis communication communications Merge
dialogues through contact • Real-time
• Define batch and real-time modeling personalization
event rules and trigger
Industry LDM
Data Warehouse
ALL CUSTOMER INTERACTION DATA
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Benefits
– Rank and group
customers on any key
measure
– Understand relative
customer differences
based on deciles
– Actively target
customers directly from
charts & immediately
include them in
campaigns
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Key Benefits
– Identify key
characteristics
of intersections
between
customer groups
– Ability to target
and save
customer
intersections
– Represent and
analyze
relationships
between
segments &
attributes
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Key Benefits
– Analyzes data
patterns to offer
predictive insight,
e.g. ‘what products
do customers
typically purchase
with other products
over time?’
– Extends market
basket analysis
across purchases
over periods of time
– Predicts activity
leading up to & after
a significant purchase
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Benefits
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
– Automatically models
most likely responders
for a communication
– Eliminates guesswork
by identifying
significant variables
that affect response
behavior
– Actively target
customer directly from
charts
– Leverages Analytic
Datasets
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Benefits
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
– Build offer,
message, discount,
and optimization
rules
– Evaluate each
customer
individually to
determine the best
content to deliver
– Capture and
automate
marketing IP.
– Deliver offers
tailored to each
individual
customer.
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Benefits
– Relevant
Communication through
right Channel at right
Time
– Flexible campaign
definition, one-to-one
or mass campaigns
– Multi step, multi
channel communication
– Closed loop
communications
marketing
across the
– Provides a
Key Benefit
that trigger
define rules
opportunities
framework to
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Analytical CRM in Action
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Life Time Value Campaign
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
Analysis Modeling Personalization Optimization Interaction
1.) LTV Campaign 5.) Set personalization 6.) Prioritize and
3.) Create 7.) Communication
model created and rules to format Optimize mix of
segments Plan handed off
run to calculate communications communications
according to channel
campaign scores appropriately for each deployed to
to an LTV systems (e.g.
customer. channels, may
campaign Siebel -
model - use profitability Broadvision)
propensities scores
2.) Model for execution
and needs Customer
Behavior to
identify life Communication 8.) Action,
11.) LTV Response and
Campaign cycle events
4.) Communication plan Results
Results captured and
Available for created. Communications
approach and offers handed back to
Analysis via 10.) LTV
linked to LTV Communication
OLAP Reporting Campaign
campaign. Manager for
by Marketing or Responses
modeled to campaign
LOB 9.) Costs of LTV analysis.
improve Campaign calculated
campaign based on actual
targeting and channel activity
profitability
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
… Over Time
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
CRM is an ongoing,
scientific process …
…not an isolated campaign
or marketing plan
– Must create a process for
achieving the intended ROI
– Note the difference between
database marketing, sales force
automation, and CRM
– To measure CRM success,
measure the impact of the entire
process
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
have proven the CRM business case
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.
• 570,000 leads, 100 campaigns in 6 mos
• $4.4 billion of new business in six months • Four continents – 15 countries
• Retention rates of 98.4% • $250 BB Australian in assets
• 28.7% increase in profit in six months • 9 million customers
Experiences
© 2002 presented by Peter Heffring at the Marketing Science Institute’s Conference on Customer Relationship Management:
Customer Behavior, Organizational Challenges, and Econometric Models on January 31 – February 1, 2002.